1. The National Housing Programme for Farm Residents Presentation to the Portfolio Committee August 2009

2. Overview Comprehensive Plan for the Development of Sustainable Human Settlements recognises that the Housing Programme has been primarily urban biased; The Plan envisages a needs oriented, rural housing programme to respond to issues on: Tenure Livelihood strategies

3. Overview Socio-cultural issues Farm workers Enhance traditional technologies & indigenous knowledge Appropriate funding mechanisms

4. Overview The Housing Programme for Farm Residents was commissioned in 2006; The Programme was submitted for discussion at the Rural Housing Indaba in 2007; The Indaba raised a few concerns regarding the Programme

5. Overview The Indaba highlighted the following main concerns: The effect the Programme may have on the current land rights of farm workers / occupiers; The Programme did not suggest any special interventions to address the actual needs and would therefore have no impact on the housing needs on farms; Implementation of the Programme was questioned

6. Overview In response to the feedback from the Rural Indaba: The Department revised the draft programme; The revised programme was discussed by the Task Team, with all comments incorporated to enhance the draft; The Programme was approved in February 2009

7. Background The Programme endeavours to provide a practicable approach to the needs of farm residents through: Practicable development options; Protection of land and other rights; Protection of the State’s investment; Provision of rental as well as ownership options; Alignment with other current Government programmes

8. Main features of the Programme All stakeholders are involved in planning and implementation; The rental agreements are regulated: Termination of leases Retirement cases; Sale of farm Termination of the schemes; Processes after the death of the farmer

9. Main features of the Programme Provincial Governments are the developers but the MEC may delegate to Municipality where this is feasible; The subsidy investment on the farm is protected through a preferential claim in favour of the Provincial Government; The funding limits are equal to the prevailing subsidy quantum

10. The Development options 1. Rental development by Farmer: The Farmer is the implementing agent; Farmer to hold land in registered ownership. No subdivisions and transferring of ownership to farm workers; Formal rental agreement / right to occupy; MEC approves the project, rentals & rental agreements; 60 day notification in case of termination of rental agreement;

11. The Development options 1. Rental development by Farmer: Funding is provided for construction of new houses, or upgrading of existing dilapidated houses; Funding may also be used for local water and sanitation services and storm water management systems; Exit mechanisms apply; Where disputes arise, arbitration process will apply

12. The Development options 1. Rental development by Housing Institution: Farmer may decide to lease portion of farm to housing institution; Beneficiaries to form part of management of institution; Funding for upgrading of existing stock on the farm, development of stand alone, semi-detached and multi level units

13. The Development options 1. Individual ownership options: Farmer divides land into smaller farm portions and transfers to individual farm worker / occupier; Subdivisions to be large enough to carry small scale farming activities; Subdivided portion to be provided with basic water & sanitation services and storm water management systems; Farmer could act as implementing agent; Beneficiaries may elect to undertake their own development through the People’s Housing Process or appoint a private developer

14. Housing assistance for LRAD beneficiaries Project based housing developments for beneficiaries of the Labour Tenant Strategy: Funding is for houses and residential engineering services where required; Funding available only in the context of a project based approach; Province is the developer and may delegate to Municipality where feasible

15. Housing assistance for LRAD beneficiaries Project may follow a normal development process or beneficiaries may elect to construct their own houses through the People’s Housing Process; Beneficiary participation is a prerequisite; Requires close cooperation with the Dept. of Rural Development and Land Reform

16. Thank You