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“Presentation to the Joint Budget Committee IMPLICATIONS OF THE MTBPS TO THE COMPREHENSIVE INTEGRATED HUMAN SETTLEMENT PLAN FOR HOUSING DELIVERY IN THE NEXT DECADE 01 November 2004
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Overview Since 1994 the Housing Programme: –Reformed the pre-1994 State housing programme and the institutional structure –Has delivered 1,6 million housing opportunities –Affected the lives of some 6 million people –Invested R 29,5 billion in the country and transferred R25bm worth of housing assests –Culminated in a sophisticated delivery system, addressing a range of needs
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Overview The programme also had unintended consequences and encountered a number of challenges. These are: –Peripheral development –Poor quality products and settlements –Lack of adequate participation by community –No or limited secondary low income housing market –Corruption and mal-administration –Slowdown in delivery –Under spending of budgets –Limited and decreasing private sector participation –Increasing backlog owing to more new households and urbanisation pressures –Growth of informal settlements
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Overview Government priorities for the new term: –Rooting out corruption & maladministration –Fast tracking delivery –Capacity building to deliver at scale –Mitigating social crime –Diversification of the housing programme- densification of residential areas
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Overview Challenges in the current housing environment: –Population growth at 2,1% –30% higher increase in household numbers –1,8 million houses regarded as inadequate –Rapid urbanisation rate - 2,7% pa –Slow rate of delivery
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Overview Challenges in the current housing environment: –Policy enhancements had slow down effect –Ineffective monitoring systems –Uneven application of policies –Dominance of the capital subsidy vs. a holistic approach requirement –Capacity constraints
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The new housing plan for the next decade Outcomes of a comprehensive consultation process: –The White Paper strategic thrusts remain valid –A need to shift to a demand driven approach –Emphasis to be on quality of the product and the environment –We need to strengthen the social contract –We need to maximise the “spin offs” (multiplier effects) of the programme
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The new housing plan for the next decade The primary goal: The creation of sustainable human settlements The secondary goals: –Quality living environments –A needs oriented approach –Building a non racial integrated society –Unblock delivery constraints –Build capacity –Rooting out corruption and mal-adminitration
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The policy interventions 1. QUALITY LIVING ENVIRONMENTS An informal settlement upgrading policy and programme (approved) A programme to facilitate social and economic amenity provision Enhance appropriate housing technology
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The policy interventions 2. A NEEDS ORIENTED APPROACH Finalise the Social Housing Policy- building institutional capacity and regulate Develop a rental housing programme Develop a programme for densification Develop a farm worker housing policy Diversify tenure options
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The policy interventions 3. BUILDING AN INTEGRATED NON- RACIAL SOCIETY Housing land policy A framework for mun. housing sector plans Enhance densification of residential areas
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The policy interventions 4. UNBLOCKING DELIVERY CONSTRAINTS Housing finance access- subsidy bands and increase subsidy scope Operational budgets (opscap) Unblocking teams Streamlines progress payments Accreditation
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The policy interventions 5. CAPACITY BUILDING Training and education Job creation Emerging contractor support and focus Letsema mobilisation
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The policy interventions 6. ROOTING OUT CORRUPTION AND MAL- ADMINISTRATION Investigative unit to be established Housing support units
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Current programme enhancements Enhance the variation policy Introduce environmentally efficient housing norms and standards Extend the procurement regime Review the PHP programme An accelerated land and services programme
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Revise the Hostels upgrading programme Extent the NHBRC warranty cover to all programmes Subsidy database cleanup Current programme enhancements
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Integration initiatives Cooperation and alignment Bi-lateral conventions Budget alignment Multi year planning
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Current programme enhancements An appropriate Institutional Architecture Public partnerships Housing Institutions refocus Clear roles and responsibilities of role players Special needs unit in Department Adequate systems support Partnership in cooperative governance- National, provincial and Local Government joint teams for implementation
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Current programme enhancements A functional model For provinces and municipalities: To administer housing development and participate in the National Housing Programmes
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Current programme enhancements Housing Legislation –A Social Housing Act –Revise rental legislation –Finalise HLMDA regulations –Amendments to Housing Act, 1997 –Review provincial legislation and implementation of national housing legislation
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Current programme enhancements Research agenda –Beneficiary needs (backlog) and define adequate housing –Research unintended consequences of policy –Research into better alignment of decision-making –Research traditional housing enhancement –Research sustainability of housing interventions –Build a research network
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Programme enhancements Monitoring and information systems – Develop a comprehensive monitoring, information and reporting system
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Programme enhancements Communication: –Establish a comprehensive communication strategy –Develop a comprehensive targeted consumer education programme
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Current programme enhancements An enabling environment System support Support unit Gender unit Social housing unit Informal settlement upgrading unit PHP unit
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BUDGET IMPLICATIONS Housing Subsidy Grant: R1,5 billion additional funds above baseline. R100 million for 2006/07 The remainder for 2007/08 Housing allocation reaching R16.6 billion over the next three years No additional funds for 2005/06 Reprioritization required to implement new plan Confirmation for prioritization of new plan for eg. MIG funding aligned to new plan
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THANK YOU FOR YOUR ATTENTION
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