1. 1 Housing Accreditation Presentation to Portfolio Committee Progress Report – 01 July 2011 Municipal Accreditation Programme

2. ACRONYMS / ABREVIATIONS CoGHSTA -Department of Cooperative Government, Human Settlements and Traditional Affairs GIS - Geographic Information System HSS - Housing Subsidy System IDP - Infrastructure Development Plan IGR - Intergovernmental Relations SDF - Spatial Development Framework MIG - Municipal Infrastructure Grant MTEF – Medium term expenditure framework NHNR - National Housing Needs Register NUSP - National Upgrading Support Programme O&M - Operation and Maintenance PMU - Project Management Unit UISP - Upgrading of Informal Settlements Programme

3. 3 Purpose Presentation will cover progress made by Frances Baard District Municipality regarding implementation of Housing since accreditation ito: 1. Background 2. Integration of the Housing Unit into the DM 3. Intergovernmental Relations 4. Support to Local Municipalities 5. Funding 6. Outcome 8 7. Projects 8. HSS & Needs Register 9. Challenges 10. Conclusion

4. 4 The Frances Baard District Municipality is situated in the north-eastern corner of the Northern Cape, sharing borders with the Free State and North West Provinces. It is one of five district municipalities in the Province. Geographically, Frances Baard District Municipality is the smallest district municipality (12 384 km² or 3,4 % of the Province). Largest population (353 200 people or 33,3 % of the Province) 1. Background

5. 5 The population density of the District Municipality is 28,52 persons per km² which is considerably higher than the 2,96 of the Province. The District Municipality consist of 4 local municipalities; namely Sol Plaatje, Dikgatlong, Magareng and Phokwane. It is estimated that ± 25 500 households are homeless. Almost 50% of these are in the Sol Plaatje Municipality. 1. Background (continued…)

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7. 7 Access to basic services are relatively high in the district: Water-96 % Sanitation-92 % Electricity-78 % 1. Background (continued…)

8. 8 2. Integration Since the granting of conditional level 1 accreditation, the integration of the Housing Unit into the District Municipality’s functions were prioritised. The Housing Unit’s organogram was approved by Council on 23 April 2008 This organogram is currently being populated.

9. 9 Housing Manager Housing Specialist Senior Building Inspector Technical Facilitator Vacant Technical Facilitator Vacant Senior Housing Admin Officer HSS Clerk Vacant Admin Assistant Vacant 2. Integration (continued ….)

10. 10 2. Integration (continued ….) The Housing Unit forms part of the Infrastructure Development Department. The infrastructure Development Directorate therefore consists of three units: - Municipal Infrastructure Services - Housing Function - Planning & Design The Housing Unit will report to two Committees of Council, namely Social Development and Infrastructure Development.

11. 11 2. Integration (continued ….) The Housing Unit is supported by the following units as shared services:-  Engineering Three technicians, one per municipality PMU & Operations and Maintenance  Information Technology  Financial Budget, accounting and financial management  Internal Audit  Environmental Health  Human Resources

12. 12 3. Intergovernmental Relations  The District IGR Forum is chaired by the Executive Mayor of the District Municipality  Includes all mayors and municipal managers of local municipalities in the district.  This Forum is supported by the Technical IGR which is made up of all section 57 managers of local municipalities as well as representatives from sector departments.  This Technical IGR informs the agenda for the District IGR  The IGR forum meets regularly, at least quarterly.

13. 13 4. Support to Local Municipalities The following policies were developed for each municipality (Dikgatlong, Magareng & Phokwane):  Housing Sector Plans  Housing Allocation Policy  Contract Management Policy  Formulation of local SDFs – All three are finalised and adopted. Proposed projects for implementation have been identified.  Housing Demand Research on shack dwellers and informal housing occupants

14. 14 4. Support to Local Municipalities  Shared/support services  IDP formulation and review  Environmental Health  Technical expertise: PMU and Operations and Maintenance  Internal audit  Human resource  Information technology  Financial: Budget, accounting and financial management  Planning and development (town planning & GIS)  Turn around strategy

15. 15 4. Support to Local Municipalities Turn Around Strategy: The District Municipality has budgeted an amount of R5,8 million to assist local municipalities in their Turn Around Strategy. This will mainly go towards the following:  To get Water and Waste Water Treatment Plants registered.  Establish capacity of these plants for future planning.  Assist with municipal roads: Accurate backlog figures, O&M and assist with plan.

16. 16 5. Funding Conditional Grant Funding: Funding from the following streams are received: Human Settlements - Capacity Funding R3,000,000 - Housing Development None, directly transferred to Mun. (R28 908 815.00 – 2011/12)

17. 5. Funding (Capital Projects) LMPROJECT DESCRIPTION2011/12 FY2012/13 FY Magareng Purchase a Refuse Removal Truck R 1,350,000R 0 Phokwane Construction of 2km paved road with associate stormwater drainage - Ganspan R 3,712,000R 1,000,000 Phokwane Construction of 2km paved road with associate stormwater drainage - Thagadiepilajang R 0 R 4,712,000 DikgatlongStormwater control projectR 0R 4,218,720 Dikgatlong Water Treatment Works – Refurbishment of Sand Filters R 1,412,000R 0 TOTALR 6,474,000R 9,930,720

18. 5. Funding A study of water and waste water treatment plants has just been completed. O&M funds will be spent according to proposals in this document to: Get water and waste water treatment plants registered Train operators Improve blue and green drop scores of the local municipalities

19. 5. Funding (O&M Projects) LMPROJECT DESCRIPTION2011/12 FY DikgatlongOperation and Maintenance ProjectsR 2,800,000 MagarengOperation and Maintenance Projects R 2,050,000 PhokwaneOperation and Maintenance Projects R 2,100,000 Sol PlaatjeOperation and Maintenance ProjectsR 750,000 FBDM Area Electricity Master Plans for Magareng & Phokwane R 570,000 TOTALR 8,270,000

20. 20 6. Outcome 8 OUT PUT S AC- TION SUB OUTPUTS MTEF TARGETS2010/11 Achievements 2011/12 Targets Outp ut 1 Acceler ated delivery of housing opportu nities Sub Output 1: Upgrading of informal settlements programme (UISP) NC - 9320Sites 0 Services 700 Houses 748 Sites 0 Services 150 Houses 710 Sub Output 2: National Upgrading Support Programme (NUSP) to provide technical assistance to municipalities Sol Plaatje & Phokwane Municipalities designated to receive support ito NUSP. Implementation plan and material for capacity support developed. Programme implementation at municipalities

21. 6. Outcome 8 (continued….) 21 OUT PUT S ACTIO N SUB OUTPUTSMTEF TARGE TS 2010/11 Achieveme nts 2011/12 Targets Sub Output 3: Accreditation Frances Baard; Sol Plaatje; Frances Baard DM granted level 2 accreditation Sol Plaatje Municipality targeted for level 2 Accreditation Funding and Hands- on-support to 8 municipalities Sub-Output 4: Increased provision of Well located and affordable priced rental accommodation NC - 1864 0N/A

22. 22 7. Projects – Quality Assurance Approved allocation from Business Plan (for 2011/12 FY) Dikgatlong Municipality De Beershoogte – 552 (100) (352 completed) Rooirand – 500 (100) (337 completed) Stillwater – 150 (0) (Services) Phokwane Municipality Pampierstad – 1 450 (100) (180 completed) Ganspan – 513 (50) Magareng Municipality Ikhutseng – 16 (16) Infill Ikhutseng – 1 000 (100)

23. 23 7. Projects – Quality Assurance Frances Baard District Municipality is ready to do the full Project Management, Quality Assurance and Subsidy Administration

24. 24 8. Housing Subsidy System & National Housing Needs Register We have been on HSS Online since 2008, but the system has never worked properly ever since its inception. Problems has been reported regularly, although communication is ongoing, the problems are not solved on a permanent basis. The NHNR is operational but challenges still exist.

25. 25 9. Challenges  Vacant post of Municipal Manager (Has been advertised and appointment should be made soon)  Finances. The operational budget for the 2011/12 financial year is R4 143 540. If FBDM is allowed 8% of total budget for operating cost an annual housing budget of ±R51 million will be needed.  The Service Level Agreement on shared services is not in place. Once the new councils are in place it will be put on the agenda of IGR again.  This Housing Subsidy System (HSS) are a cause for concern. The on-line system gives problems.

26. 26 9. Challenges Continue  Shortage of suitable land.  Performance of emerging contractors.  O & M of infrastructure  Bulk infrastructure constraints. (An investigation is currently being done)  MIG-funding not reaching district municipalities. (In the past this was used to improve bulk infrastructure in the local municipalities.)

27. 27 10. Conclusion In the Northern Cape district municipalities are best equipped to deliver housing functions as most of the smaller local municipalities does not have the capacity and will struggle to build capacity on a sustainable manner. In a short period of time Frances Baard District Municipality established a functional Housing Unit and reached level 2 accreditation.

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