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DEPARTMENT OF HOUSING

DEPARTMENT OF HOUSING. PRESENTATION TO THE PORTFOLIO COMMITTEE FOR HOUSING 25 March 2003 BUDGET 2003/04 TO 2005/06. Presentation Index. Aim, Vision and Mission of the Department Our Values Our Mandates Housing Legislation and Regulations Our Policy Framework

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DEPARTMENT OF HOUSING

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  1. DEPARTMENT OF HOUSING PRESENTATION TO THE PORTFOLIO COMMITTEE FOR HOUSING 25 March 2003 BUDGET 2003/04 TO 2005/06

  2. Presentation Index • Aim, Vision and Mission of the Department • Our Values • Our Mandates • Housing Legislation and Regulations • Our Policy Framework • Strategic overview and policy shifts • Housing environment since 1994 white paper • Challenges facing Housing • Linkages to Government Policy Priorities • Strategic Policy: Shifts • Budget overview • Conclusion

  3. DEPARTMENT OF HOUSING • AIM:The aim of the Department of Housing is to determine, finance, promote, coordinate, communicate and monitor policy in respect of housing and human settlement. • Vision: A nation housed in sustainable human settlements • Mission: To establish and facilitate a sustainable process that provides equitable access to adequate housing within the context of affordability of housing, services, and access to amenities and economic opportunities

  4. OUR VALUES • Our values, based on the constitution, are: • Human dignity,equality, advancement of human rights and freedoms; • Non-racialism and non-sexism; • Supremacy of the constitution and the rule of law; • Accountability, responsiveness and openness.

  5. OUR MANDATE • SA CONSTITUTION • Section 26: Access to adequate housing a basic human right; Govt. to ensure environment conducive to the progressive realisation of the right • Schedule 4: Housing is a concurrent national and provincial legislative function • Botshabelo Housing Accord (1994) Signed by all housing stakeholders • Reconstruction and Development Programme (RDP) – set out framework and principles for sustainable development

  6. HOUSING LEGISLATION • Housing development programme continues to operate in the following legislative framework. • Housing Act 107 of 1997 • Prevention of Illegal Eviction from and Unlawful Occupation of Land Act No. 19 of 1998 • Housing Consumers Protection Measures Act 95 of 1998 • Rental Housing Act 50 of 1999 • Home Loan Mortgage Disclosure Act 63 of 2000 • Disestablishment of South African Housing Trust Limited Act 26 of 2002

  7. HOUSING LEGISLATION CONT. • Currently in process • Community Reinvestment (Housing) Bill. • Housing Amendment Bill • Social Housing Bill

  8. REGULATIONS AND GUIDELINES • National Housing Code • Sets out National Housing Policy in detail including a user friendly guide • Contains the detail prescripts pertaining to the Housing Subsidy Scheme • National Norms And Standards For Permanent Residential Structures • Sets amount of the subsidy which may be used for infrastructure • Sets the minimum size of houses

  9. REGULATIONS AND GUIDELINES • Guidelines For Human Settlement Planning And Design (“Red Book”) • Planning – movement networks, transport, open space, subdivision layouts, design to reduce crime • Engineering services -stormwater, roads, water supply, sanitation, solid waste, energy • Guidelines For Environmentally Efficient Low Cost Housing • Energy and water efficient planning and design for low cost housing; and • Urban greening guidelines

  10. REGULATIONS AND GUIDELINES • Regulations under the Housing Consumers Protection Measures Act, 1998 relating to the subsidy only sector have been drafted; • Regulations under the Home Loan and Mortgage Disclosure Act. 2000 have been outsourced and should be finalized shortly; and • Regulations under the yet to be promulgated Community Reinvestment Act

  11. OUR POLICY FRAMEWORKS • Policy framework as determined by the White paper on a new housing policy and strategy for South Africa, 1994

  12. STRATEGIC OVERVIEW • Housing environment since 1994 white paper • More than 1,47m houses have been built or under construction and 1,8m subsidies approved benefiting more than 5,6m people • Early focus was on quantity, rather than quality housing to address housing needs and backlogs • Focus was on development of policies and legislative instruments • Introduction of the Housing subsidy scheme consisting of seven subsidy instruments • Special subsidy dispensation for the disabled • Procurement regime compliant to constitution

  13. STRATEGIC OVERVIEW • Current challenges facing the housing programme   • Lack of private sector investment and resource constrains • Moving towards medium density housing as a priorityand integrated development • Creating higher quality housing and living environments • Reducing dependency and promoting a culture of savings • Need for interventions to deal with emergency situations resulting from natural disasters and other incidents - Grootboom case.

  14. STRATEGIC OVERVIEW • Current policy trends in housing programmes. • Housing Finance Challenges - Contributions required from Government, the financial sector, the NGO sector and ultimate beneficiaries • Extension of the Housing Warranty Scheme through the NHBRC to beneficiaries • More emphasis on monitoring of policy impact, expenditure and delivery • More emphasis of oversight on housing institutions • Promoting new and innovative building technologies

  15. STRATEGIC POLICY SHIFTS • New policy approaches • Having achieved the target of 1 million houses the housing programme now has to reflect on the outcomes and how these can be improved – a Consolidation Phase • A shift in focus from “numbers of units” to quality of products and environments – • Medium density integrated housing programme and emphasis on PHP • Social housing policy and legislation • Rental housing • NHBRC warranty

  16. STRATEGIC POLICY SHIFTS • Promotion of social responsibility through: • Own contribution to access housing subsidies and the NHBRC warranty scheme • Savings linked housing subsidy to promote a culture of savings • Improving access to housing credit: • Community Reinvestment Legislation (CRA) • Home Loan Mortgage Disclosure Act, 2000

  17. STRATEGIC POLICY SHIFTS • Improving human settlement environments: • Programme to main stream environmentally efficient housing • Disemmination of good practice • Measures to cater for needs of special groups (eg. Differently-abled, people living with HIV, elderly,youth and children, farm worker and emergency housing)

  18. STRATEGIC POLICY SHIFTS • Improving integration in service delivery: • Multi-year national and provincial housing development plans linked to Integrated Development Plans (IDPs) • Identification of and access to centrally located land for integrated medium density housing developments • Contributions to Urban Renewal and Integrated Rural Development Programmes

  19. STRATEGIC POLICY SHIFTS • Improving service delivery: • New demand led procurement regime • Capacity building programmes for stakeholders, including government and industry

  20. STRATEGIC POLICY SHIFTS • Improving international cooperation on human settlement development: • Lead Ministry for UN Habitat (Habitat Agenda) – World Urban Forum, WSSD • Cities Alliance – “cities without slums” initiative • Supporting NEPAD regarding sustainable human settlement development in the African region is concerned. • Bi-lateral and multi-lateral cooperation programmes with donor countries

  21. LINKAGES TO GOVERNMENT PRIORITIES • Housing activities are focused in the following Government priorities areas • Urban renewal • Integrated Sustainable Rural Development • The eradication of poverty • Transformation • Black Economic Empowerment • Engendering a culture of saving

  22. BUDGET OVERVIEW

  23. BUDGET OVERVIEW • Programme 1: Administration • Purpose of this Programme is to provide administrative and management support services to the Department • Changes in the MTEF • A real average increase over the MTEF at 7 % • Decrease from 2002/03 to 2003/04 at 16 % mainly as a result of the of reduction in Prof. and Special services • Reduced development costs of the Debtors system • Completion of the preparation of the Housing Funds statements and the transformation tenders • Completion of auditing and related costs for the Housing Funds statements for past years • Housing Debtors Management system maintenance • Reprioritization within the department

  24. KEY ACTIVITIES OVER MTEF • Provision of Strategic Financial Management Services • Provision of Human Resources Management Services • Provision of General Corporate Services to ensure corporate efficiently • Provision of strategic support services for the Minister and Accounting Officer • Implementation of toll free number to address public enquiries and as anti-corruption initiative • Implementation of the transformation imperatives

  25. BUDGET OVERVIEW • Programme 2: Policy Planning • Purpose of this Programme is to ensure a sound national housing policy framework • Changes in the MTEF • Effect of restructuring, function shift and reprioritization resulted in increase of 20 % between 2002/03 and 2003/04 • 2003/04 and 2004/05 increase mainly for framework legislation projects • Fairly stable over the MTEF period

  26. KEY ACTIVITIES OVER MTEF • Drafting of new legislation • Community Reinvestment Bill • Social Housing Bill • Amendments to current legislation • Rental Housing Amendment Bill • Housing Consumers Protection Measures • Prevention of Illegal Eviction from and unlawful Occupation of Land Amendment Bill (PIE) • Drafting of Regulation under HLAMDA, CRA, and Social Housing Act

  27. KEY ACTIVITIES OVER MTEF • Audit of all legislation impacting on housing • Outreach programme to provincial departments and local authorities for training and monitoring of implementation of legislation • Development of emergency relief housing • Development of Medium Density Housing policy • Development of CR Policy • Produce policy paper on Environmentally sound and efficient Housing • Produce report on child headed households and housing

  28. BUDGET OVERVIEW • Programme 3: Programme Management • Purpose of this Programme is to manage national housing programmes • Changes in the MTEF • Mainly dominated by transfer payments: 90% • Major Reduction from 2002/03 to 200304 on the Job Summit Project no more funding after 2002/03 • Major increase conditional grant Human Settlement Redevelopment Programme • From 2003/04 :R109m; 2004/05: R116m and 2005/06: R122m • Fairly stable over the MTEF period • Experiencing staffing capacity problems

  29. KEY ACTIVITIES OVER MTEF • Implementation of the Human Settlement Redev. Programme and the Presidential Pilot programme • Promotion of Improved Traditional Building methods and technology • Management of the Phasing Out programme • Produce guidelines and report on the possible extension of the Warranty cover to PHP • Produce report on outcome and lessons from implementation of the Presidential Pilot programme • Development of housing education and training programme and professionalisation of the Housing sector

  30. PROVINCIAL ALLOCATION (HSRDP)

  31. BUDGET OVERVIEW • Programme 4: Housing Sector Performance • Programme is to monitor and assess the impact of housing delivery, manage housing information, and support housing institutions • Changes in the MTEF • Mainly transfer payments: 92% • Increase from 2002/03 to 2003/04 by 42% • Mainly as a result of increases in SAHT liabilities allocation to be transferred to National Treasury upon of finalization of the disestablishment of the SAHT • Fairly stable over MTEF period

  32. KEY ACTIVITIES OVER MTEF • Monitoring the implementation of housing policy & programmes • Monitoring the performance of Housing Support Institutions • Impact assessment of Implemented Policy and programmes • Monitor identified economic and financial variables as well as Construction Industry trends & reciprocal impacts • Maintenance of Housing information systems.

  33. BUDGET OVERVIEW • Programme 5: Communication • Purpose of this Programme is to facilitate and promote the free flow of information between the Department and its stakeholders • Changes in the MTEF • Currently experiencing major staffing capacity constraints and it is planned to increase staffing levels to reach 85 % by the end of the first quarter of 2003/04 • Increases by an average of 7% over the MTEF period • Various ministerial programmes • National Housing Awards • Rand show Exhitions • Staffing problems being resolved

  34. KEY ACTIVITIES OVER MTEF • Dissemination of information to stakeholder and facilitate feedback • Development and maintenance of a communication strategy in support of housing programme • Production of publications on targeted basis • Consumer awareness campaigns

  35. BUDGET OVERVIEW • Programme 6: Housing Development Funding • Purpose of this Programme is to manage the funding of national housing programmes • Consist mainly of Transfer payments to provinces in terms of DORA as conditional grants • Allocation of funds to provinces is based on a new formula which introduces urban bias and will be phased in throughout the MTEF. • Need of each province as measured by the housing backlog takes into account factors such as homelessness, shack dwelling, caravan dwelling, tents, backrooms, rooms in flats. • A poverty indicator measured by households earning less than R3,500 in each province. • Population share: Indicator as measured by each province’s share of total population.

  36. PROVINCIAL ALLOCATIONS (SAHF)

  37. BUDGET OVERVIEW • Programme 7:Housing Equity • To promote fair lending practices by banking institutions, and provide for setting and enforcing specific minimum targets by financial institutions in lending to the low and medium income level households for housing purposes. • Take responsibility for implementing the Home Loans and Mortgage Disclosure Act (63 of 2000) (HLAMDA), its regulations and the Community Reinvestment Bill when the latter comes into operation. • Funding provides for setup costs

  38. BUDGET OVERVIEW

  39. Conclusion • Need to improve access to housing credit by the low income group • Need to address dysfunctional secondary low cost housing market • Improve governance – non-adherence to prescripts – Corruption Investigating capacity • Improvement in information to beneficiaries – lack of adequate communication

  40. Conclusion • Addressing unresolved housing land issues • Implementation of new policy regimes eg. Procurement regime, own contribution, phasing out programme. • Housing backlog • Improvement in delivery capacity

  41. Thank You

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