1. 1 Housing Accreditation Presentation to Portfolio Committee Progress Report – 23 May 2012 Municipal Accreditation Programme

2. ACRONYMS / ABREVIATIONS Coghsta – NC Department of Cooperative Governance, Human Settlements and Traditional Affairs DHS - National Department of Human Settlements 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 1. Purpose Presentation will cover progress made by Frances Baard District Municipality ito Housing since accreditation: 1.Purpose 2.Background 3.Demographics 4. Spatial Reference 5.Audit Outcomes 6.Access to Basic Services 7.Accreditation 8.Housing Structure 9.Integration 10.Inter Governmental Relations 11. Support to Local Municipalities 12Shared Services 13.Funding 14.Outcome 8 15.Projects 16.HSS & Needs Register 17.Challenges 18.Conclusion

4. 4 2. Background The FBDM in the fulfilment of the mandate bestowed to it by being Accredited for Level 2 and in terms of Section 26 of the Constitution of the Republic of South Africa, Act 108 of 1996, the Housing Act, Act 107 of 1997 and the National Housing Code, is expected to perform a full complement of housing functions as delineated in the Accreditation Framework. The legislation and policy framework above confers to Municipalities such as FBDM a directive to initiate, facilitate and manage the development of sustainable human settlements and reach the ultimate objective to acquire Level 3 Accreditation. Assessed for Level 2 Accreditation by the Accreditation Compliance and Capacity Assessment Panel in August 2009. Level 1 and 2 functions delegated to the DM in terms of the Accreditation Certificate in May 2011 respectively.

5. 5 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) 3. Demographics

6. 6 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. 3. Demographics (continued…)

7. 7 4. Spatial Reference

8. 8 2009/10 financial year - unqualified audit 2010/11 financial year - qualified audit with matters 2011/12 financial year – working towards unqualified audit This continues to illustrate our capacity for good corporate governance and supports our contention that FBDM is a beacon in sound administration. 5. Audit Outcomes

9. 9 Access to basic services are relatively high in the district: Water-96 % Sanitation-92 % Electricity-78 % 6. Access to Basic Services

10. 10 7. Accreditation 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. The organogram was revised in 2011 and approved.

11. 11 8. Housing Structure (Revised) Head of DepartmentManager HousingHousing Specialist Building Inspectors (1x Existing) (2x Proposed) Project Managers (2x Proposed) Chief Housing admin Officer (Proposed) Senior Admin Officer (Existing) Clerk (Existing) Clerk (Existing) Senior Admin Officer (Proposed) Clerk (Proposed) Manager Infrastructure Current Staff New Staff

12. 12 9. Integration The Housing Unit forms part of the Infrastructure Development Department. The infrastructure Development Department consists of three units: - Municipal Infrastructure Services - Housing - Planning & Design The Housing Unit reports to the Social Development Committee

13. 13 9. 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

14. 14 10. 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.

15. 15 11. Support to Local Municipalities The FBDM has concluded Service Level Agreements with two of the three local municipalities,i.e. Dikgatlong and Magareng. Phokwane still outstanding. The Housing Unit provides the following services to Dikgatlong, Magareng & Phokwane: Projects Initiation, planning and design Identify, assess viable projects, provide capacity support and monitor the execution of the project(s) Project/ Program Management and Contract Administration Draw up a project plan that is linked to the budget. Measure the project activities against the project implementation plan. Review contracts and make recommendations Subsidy Administration The administration of the all subsidy applications, from capturing of application forms to providing feedback on the applicant status

16. 16 11. Support to Local Municipalities Quality Assurance Inspecting, issuing of payment certificates and assuring the quality of the built product. Ensure the quality of work is in line with the requirements of the National norms and standards, and prescribed specifications Housing backlog identification and quantification Determine the housing backlog, quantify and incorporate into the NHNR Capacity Development The development and transfer of knowledge and skills to housing consumers and municipal officials.

17. 17 11. Support to Local Municipalities The following policies were developed for each municipality:  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  Currently busy with a Feasibility Study for four ecologically designed HS Projects.

18. 18 12. Shared 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

19. 19 10. Support to Local Municipalities Turn Around Strategy: The District Municipality assists the local municipalities in the Turn Around Strategy. This is mainly in 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 a plan.

20. 20 13. Funding Capacity & enhancement funding 2009/10 (R’000) 2010/11 (R’000) 2011/12 (R’000) 2012/13 (R’000) Alloc.TransfBal.Alloc.TransfBal.Alloc.TransfBal.Alloc.TransfBal. 1,800 02,700 03,0001,7501,250 0

21. 13. Funding (Capital Projects) Local Municipality 2011/12 FY2012/13 FY MagarengR1,350,000R6,100,000 Phokwane R3,712,000R5,830,000 DikgatlongR1,412,000R5,000,000 Sol PlaatjeR0R3,070,000 Farm Dweller Sanitation R0R250,000 TOTALR6,474,000R20,250,000

22. 13. 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

23. 13. Funding (O&M Projects) Local Municipality2011/12 FY2012/13 FY DikgatlongR2,800,000R2,000,000 MagarengR2,050,000R2,600,000 Phokwane R2,100,000R2,900,000 Sol PlaatjeR750,000R800,000 FBDM AreaR570,000R0 TOTALR8,270,000R8,300,000

24. 24 14. Outcome 8 OutputsActionSub OutputsMTEF Targets 2011/12 Achievements 2012/13 Targets Output 1Acceler ated deliver y of housin g opport unities Sub Output 1: Upgrading of informal settlements programme (UISP) FBDM - 7671 (Comm Survey 2007) Sites 0 Services 0 Houses 813 to date (1116 Target) Sites 304 Services 304 Houses 305 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 implementati on at municipalities

25. 14. Outcome 8 (continued….) 25 OutputsActionSub OutputsMTEF Targets 2011/12 Achievements 2012/13 Targets Sub Output 3: Accreditation Frances Baard; Sol Plaatje; Frances Baard DM granted level 2 accreditation Expand Organogram Sub-Output 4: Increased provision of Well located and affordable priced rental accommodation NC -1864 FBDM - 0 0N/A

26. 26 15. Projects – Quality Assurance MunicipalityProjectTotal Units Units Compltd Units Outstndg Allocated 2012/13 DikgatlongDe Beershoogte 55244710530 Stillwater1500 25 PhokwanePampierstad1450700750150 Ganspan5130 0 Kingston6840 307 Services MagarengIkhutseng1000200800100 Ikhutseng16 00 Emergency Hsg 23 019 Totals436513633002305

27. 27 15. Projects – Emergency Housing Frances Baard District Municipality recently completed the Emergency Housing Project in the Dikgatlong Municipality: (23 Houses) FFunding secured February 2012 FFBDM notified 10 February 2012 SSupply chain process 10 – 17 Feb 2012 CContract awarded 21 February 2012 CContract signed 23 February 2012 CConstruction started 23 February 2012 CConstruction completed 30 March 2012

28. 28 15. Projects Frances Baard District Municipality is able to provide the following human settlements services to local municipalities: PProject identification and planning PProject Management QQuality Assurance SSubsidy Administration CContract Management CCapacity Development

29. 29 16. Housing Subsidy System & National Housing Needs Register Working on HSS Online since 2008 Working on HSS since February 2012 Working on NHNR since 2009 Problems still experienced with systems. Reported regularly, although communication is ongoing, the problems are not solved on a permanent basis. The NHNR is operational but challenges still exist. Lack of support on system.

30. 30 17. Challenges  Vacant post of Municipal Manager (advertised)  Finances. - Operational budget for the 2011/12 financial year is R4,143,540.00 (R1,250,000 still outstanding) - Operational budget reqd. for the 2012/13 financial year is R7,777,598.00 - Funding of R4,843,239.74 secured from DM (R2,934,358.26 shortfall)  The Implementation Protocol is not in place.  This HSS connection not stable.  NHNR are a cause for concern. All information cannot be retrieved from system. Cost to run system.

31. 31 17. Challenges (continued….)  Shortage of suitable land.  Performance of emerging contractors.  O & M of infrastructure  Bulk infrastructure constraints.  MIG-funding not reaching district municipalities. (In the past this was used to improve bulk infrastructure in the local municipalities.)  Funding shortfall jeopardises:  Sector plans  NHNR  Policy Development

32. 32 18. 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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