1. 1 PUBLIC HEARING ON HOUSING CONDITIONAL GRANT 2006/07 Presented by: M Nkoana-Mashabane The Honourable MEC of Local Government and Housing :Limpopo Province 23 MAY 2007 23 MAY 2007

2. 2 CONTENTS Report on Housing Conditional Grant Budget Expenditure 2006/7 Report on Housing Conditional Grant Budget Expenditure 2006/7 Key objectivesKey objectives Housing programmesHousing programmes AchievementsAchievements ChallengesChallenges InterventionsInterventions Plans for 2007/8Plans for 2007/8Conclusion

3. 3 KEY OBJECTIVES The Department identified the following as its key objectives: To provide regulatory framework for housing delivery To provide capacity and support to municipalities with regard to housing delivery in line with the Housing Act To create integrated and functional settlements

4. 4 Housing Development The Housing Development comprises the following programmes: Housing Performance/project managementHousing Performance/project management Social HousingSocial Housing Housing administration and property managementHousing administration and property management Housing Sector Performance and municipal supportHousing Sector Performance and municipal support

5. 5 ACHIEVEMENTS 12366 houses completed during the financial year 2006/7 12366 houses completed during the financial year 2006/7 Housing Consumer Ntshebele Toll free line has been established,a total of 10 000 calls have been received in and outside Limpopo ProvinceHousing Consumer Ntshebele Toll free line has been established,a total of 10 000 calls have been received in and outside Limpopo Province A total of 66 technical trained project managers have been deployed to all municipalities to improve on housing project monitoringA total of 66 technical trained project managers have been deployed to all municipalities to improve on housing project monitoring Payment of contracts have been reduced from a month to average of 8 days to support financial viability of emerging contractorsPayment of contracts have been reduced from a month to average of 8 days to support financial viability of emerging contractors Three pieces of well located land have been acquired to restructure spatial development and to promote integration of communitiesThree pieces of well located land have been acquired to restructure spatial development and to promote integration of communities Memorandum of Understanding have been signed with Northam Anglo-Platinum Mine in which 300 hundreds houses are being constructedMemorandum of Understanding have been signed with Northam Anglo-Platinum Mine in which 300 hundreds houses are being constructed Multi-Year Settlement Plan to identify growth nodes and to guide intervention into space have been completedMulti-Year Settlement Plan to identify growth nodes and to guide intervention into space have been completed Limpopo Housing Act 2006 has been passed to pre-empt sale of subsidized houses for 8 yearsLimpopo Housing Act 2006 has been passed to pre-empt sale of subsidized houses for 8 years

6. 6 Budget Expenditure 2006/07 INFRASTRUCTURE HOUSING 31- March-07 R'000 APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR Total Projections 2005/0618,32725,87125,91129,49129,28436,817 54,76 1 65,71 3 29,20 6 48,18 0 59,13 255,482478,175 Actuals 2005/068,54420,34721,62221,80230,96834,034 41,42 5 39,32 7 59,20 66,882 23,97 469,794377,925 Projections 2006/07015,81934,10241,08639,79663,987 65,38 5 68,14 0 77,14 1 88,39 2 82,21 675,504651,568 Actuals 2006/07015,81934,10241,08639,79663,987 41,73 3 43,83 2 48,04 5 28,59 7 36,20 6 255,53 3648,736 Act Spend as % of Projection #DIV/0!100.0% 63.8%64.3%62.3%32.4%44.0% 338.4 %99.6% Cum Spend as % of Total Budget0.0%2.4%7.7%14.0%20.1%29.9%36.3%43.0%50.4%54.8%60.3%99.6% Total per Month

7. 7 Budget Expenditure 2006/7 INFRASTRUCTURE HOUSING 31-Mar-07

8. 8 KEY STRATEGIC CHALLENGES Delivery capacity constraints:Delivery capacity constraints: –Limited Capacity of Contractors to deliver at large scale. –Material supply constraints (bricks Supply do not match the demand ) Planning Coordination. Planning Coordination. –Municipal infrastructure and Sectoral Alignment

9. 9 Land ConstraintsLand Constraints –Limitations in acquiring suitably located land in prime areas. Migration patternsMigration patterns Increased Rate of urbanisation Incomplete (Blocked) projectsIncomplete (Blocked) projects –Verification/audit and funding mobilization

10. 10 STRATEGIC INTERVENTIONS Contracting strategies – mix of highly capacitated and emerging contractorsContracting strategies – mix of highly capacitated and emerging contractors Forward PlanningForward Planning Unblocking Blocked/incomplete ProjectsUnblocking Blocked/incomplete Projects Development of Housing Chapter in municipal IDPsDevelopment of Housing Chapter in municipal IDPs Partnering – Public Private PartnershipsPartnering – Public Private Partnerships Acquisition of well located land for development of integrated sustainable communitiesAcquisition of well located land for development of integrated sustainable communities

11. 11 2007/08 Actual Plans  Per Sub-Programme 2007/8 Priorities SUB-PROGRAM 1 & 2:HOUSING SUBSIDY PERFORMANCE/PROJECT MANAGEMENT AND SOCIAL HOUSINGSub-SubProgram Measurable Objectives Performance Measure/ Indicator Baseline2006/7 (Current commitment) Planned 2007/8 Budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Upgrading of informal settlement 6000 houses to be constructed 6 000 houses to constructed 5 200 housing units to be completed 6 000 housing units constructed R230,124,000 Installation of services 1000 housing units constructed 3000 housing units constructed 2000 housing units constructed Housing Finance Linked Subsidy (Pilot project in line with BNG) 300 houses to be constructed 300 houses to constructed Covered under upgrading of informal settlement 300 housing units constructed R8,850,000 60 housing units constructed 100 housing units constructed 40 housing units constructed Phased Development Approach:Pha se1 Planning and Services 2 400 sites to be planned and serviced - R38,400,000 240 sites to be planned and serviced 840 sites to be planned and serviced 840 housing units constructed 480 housing units constructed Unblocking of blocked projects (Rural and Urban) 8 495 houses to be constructed. To mobilize financial resources for completing incomplete projects 8 495 houses to be constructed. Funds acquired and commenced with completing units not completed Mobilising of funds 8 495 units R325,817,230 1 699 housing units constructed 2 549 housing units constructed 3 398 housing units constructed 849 housing units constructed

12. 12 SUB-PROGRAM 3:HOUSING ADMIN AND PROPERTY MANAGEMENTSub-SubProgram Measurable Objective Performance Measure/ Indicator Baseline 2006/7 (current commitment) Planned 2007/8 Budget Planned Quarter 1 Quarter 2 Quarter 3 Quarter 4 1. Housing subsidy Administratio n To approve housing subsidies All subsidies approved 13 268 subsidies 6 000 subsidies As indicated under project management 4 169 housing subsidies processed 1 831 housing subsidies processed 2. Transfer of Housing Assets (Discount Benefit Scheme) To provide transfer of housing stock Properties to be transferred 4770 properties 3 339 residential housing assets to be transferred R8,06m  600 properties are discounted  Profiling and Establishment of legal tenants (Appointment should have been done by March 2007) 900 properties are discounted 1200 properties are discounted  639 properties are discounted  Identificatio n and verification and verification of properties to of properties to be discounted during 2008/09 be discounted during 2008/09 3. Audit of Assets To provide accurate assets register Credible asset register - All assets recorded in asset register R5m Appointment of service provider Audit the assets Audit report and asset register SUB-PROGRAM 4:HOUSING SECTOR PERFORMANCE AND MUNICIPAL SUPPORTSub-SubProgram Measurable Objective Performance Measure/ Indicator Baseline 2006/07 (Current Commitment) Planned 2007/08 Budget Planned Quarter 1 Quarter 2 Quarter 3 Quarter 4 1. Policy To develop policy guideline and relevant legislation One act passed Rental housing regulation promulgated Limpopo housing development bill approved Draft rental housing regulation in place/ developed Limpopo housing amendment Act passed Rental housing regulation promulgated Promulgation of the Limpopo Housing Act Implementatio n of rental housing regulations

13. 13 Sub-SubProgram Measura ble Objective Performance Measure/ Indicator Baseline 2006/07 (Current Commitment) Planned 2007/08 Budget Planned Quarter 1 Quarter 2 Quarter 3 Quarter 4 2. Planning To review and develop provincial multiyear housing plan Review of municipal IDP Housing Chapters Reviewed housing development plan and municipal IDP chapters Provincial Housing Development Plan and municipal IDP chapters Development and implementation of Provincial housing sector plans R3m Review Provincial Housing Development Plan Develop final Provincial Housing Development Plan and review municipal IDP chapters Implement Provincial Housing Development Plan and review municipal IDP chapters 3. Municipal Support To enhance capacity and provide support to Municipali ties in housing provision 1 Municipalities accredited 120 emerging contractors trained Approved capacity building business plan. 1 Municipalities accredited 18 emerging contractors trained Draft capacity building business plan. 1 Municipalities to be accredited 40 emerging contractors to be trained Provincial and municipal officials to be trained. R2mR1,4mR2m Capacity assessment for 1 identified Municipalities and level one accreditation business plan roll out. Theoretical training Procurement of services Identification, Invitation for applications, Development of business plan and signing of service level agreement for 11Municipalities. Theoretical training Capacity building business plan roll out monitoring and review Monitoring of level one accreditation business plan roll out. Practical training Capacity building business plan roll out. Monitoring and review Review of progress, level progress, level one oneaccreditation and report on assessment of readiness, level and report on assessment of readiness, level two two accreditation accreditationPractical training training Impact Assessment, compilation of final report. Approval of capacity Business plan for 07/08. Business plan for 07/08.

14. 14 Sub-SubProgram Measurable Objective Performance Measure/ Indicator Baseline 2006/07 (Current Commitment) Planned 2007/08 Budget Planned Quarter 1 Quarter 2 Quarter 3 Quarter 4 4. Sector capacity building To enhance capacity of service providers in the housing sector. To conduct consumer education Training of emerging contractors Awareness of housing policies 10 emerging contractors trained Service provider has been appointed by NDoH to render housing consumer education - Training of 10 emerging contractors Roll out of the consumer education programme Training of 10 emerging contractors Roll out of the consumer education programme Training of 5 emerging contractors Roll out of the consumer education programme Training of 5 emerging contractors Roll out of the consumer education programme 5. Procurement of land for housing development To acquire strategically located land Strategically located land procured -- Identify strategically located land for development Identify strategically located land for development Acquire 1 portion of land

15. 15 Cash flow Projection Plan Cash flow amount required Transfer date Apr-07 29,326,725 29,326,725 25 March 2007 May-07 31,933,545 31,933,545 25 April 2007 Jun-07 36,495,480 36,495,480 25 May 2007 Jul-07 53,765,663 53,765,663 25 June 2007 Aug-07 57,024,188 57,024,188 25 July 2007 Sep-07 52,136,400 52,136,400 25 August 2007 Oct-07 84,200,286 84,200,286 25 September 2007 Nov-07 89,153,244 89,153,244 25 October 2007 Dec-07 74,294,370 74,294,370 25 November 2007 Jan-08 57,350,040 57,350,040 23 December 2007 Feb-08 50,181,285 50,181,285 25 January 2008 Mar-08 35,843,775 35,843,775 25 February 2008

16. 16 Conclusion THANK YOU THANK YOU