Presentation to the Port Folio Committee for Human Settlements

1. Presentation to the Port Folio Committee for Human Settlements The Allocation Strategy for housing opportunities created through the National Housing Programmes

2. Background • In response to allegations of mal-administration and fraud regarding the allocation of housing subsidy financed properties, the Previous Minister of Housing approved the Allocation Strategy in 2008; • Investigations also revealed the need for a National Housing Needs Register from which selection of beneficiaries could be undertaken

3. Salient features of the Strategy • The allocation process has been depoliticised; • A structured process for the selection and approval of applications was introduced; • Priority criteria have been introduced; • The Strategy provides procedures for each National Housing Programme; and • It is directly linked to the National housing Needs register.

4. Salient features of the Strategy • Qualification Criteria • The entry level and general criteria of the subsidy scheme still apply; • Programme specific criteria also still apply • Priority criteria were introduced: • The Aged and disabled; • Families; and • Women headed households with children.

5. Salient features of the Strategy • Persons registered on the National Housing Needs Register do not automatically qualify for subsidies; • Persons on the Register will be invited to complete application forms when housing opportunities become available; • All applications so received will be subject to verification and a structured evaluation and approval process.

6. Application of the Strategy • It applies to housing opportunities created through: • Integrated Residential Development Programme (IRDP); and • The Upgrading of Informal Settlements programme

7. Application of the Strategy • The Strategy will not apply to: • The individual Subsidy programmes; • Consolidation subsidies; • PHP subsidies; and • Rental housing programmes.

8. Institutional Architecture • The Strategy entails the following role players: • The Allocation Committee (AC); • The Provincial Departments of Human Settlements/Housing; • The Municipality; • The National Department; • The Project Manager; and • External auditors, where applicable.

9. Institutional Architecture • The Allocation Committee must: • As a minimum comprise the following public sector officials: • Two members from the Office of the City Manager of the Municipality; • Two members representing the Provincial Department of Human Settlements/Housing; and • May not include any political office bearer.

10. Allocation process • When houses/opportunities become available: • The municipality will determine the selection criteria to apply for the specific project- region, priority status etc.; • It will request the province to obtain a list of potential beneficiaries from the National Needs Register that meet the set criteria; • Once received, the AC will verify the list and request the project manager to contact the persons on the list and invite them to apply for housing subsidies; • The PM will liaise with each applicant in collecting all the documents and the selection of stands and houses; • Application documents may not be older that three months; • The applications received will be assessed by the AC against the list of invitees and qualification criteria; • The applications are then submitted to the MEC for approval.

11. Allocation process • Once the application is approved it will be recorded on the NHSDB; • The conditional purchase agreement between the developer and beneficiary will take effect; • The property will be transferred to the beneficiary; • The National Housing Needs Register will be adjusted to reflect this status

12. Thank you