DEPARTMENT OF HUMAN SETTLEMENTS

1. DEPARTMENT OF HUMAN SETTLEMENTS PRESENTATION TO THE SELECT COMMITTEE ON PUBLIC SERVICE 20 APRIL 2010

2. Aim The aim of the Department of Human Settlements is to determine, finance, promote, coordinate, communicate and monitor policy in respect of housing and human settlement.

3. Current HumanSettlement Conditions • Context: • Rapid urbanisation and migration (rural to urban) • Population growth • household formation and diminishing size • Informal settlement growth • Lack of access to Basic Services • Unbalanced property markets • Un-sustainable development choices

4. Settlement Categorization(12,5 million Households in RSA) • Formal Settlements: • Formally proclaimed townships with secure tenure • Generally with formal houses – may also have (in)formal structures & backyard dwellings • Surveyed/ pegged/ formal & planned layout/ geotech • Access to one or more formal basic Services supply • Informal (free-standing) Settlements (1,2 mil hh) • Un-proclaimed land, therefore no secure tenure • Inhabitable ground in many cases (in-situ upgrading limitations) • Land not surveyed nor subject regulated use • Un-serviced (temporary services: e.g. chemical toilets etc) • Settlements on Tribal/ Communal Land • Settlements on Farms (farm-workers) TOTAL HOUSING NEED: 2.2 million 4

5. Basic Services • Household Access to water • Remaining needs = 3.95mill Households • Household access to Sanitation • Current needs = 3,2mill households • Household access to Electricity (energy) • Current needs =2,6mill households • Refuse Removal (once a week) • Current need= 4,56 mill households un-served

6. Urbanization And Demographic Trends • The “dual residence” of some households (who maintain a rural base while sojourning in urban areas) is a deeply entrenched feature of many households • Migration to Urban areas is increasingly permanent • Urbanisation is irreversible and GROWING • Urban consolidation since the 1960s • Informal settlements residents are largely address-less: this is another shackle in the residents’ exclusion • NOTE: Phenomenon of “shifting target” in the delivery of services

7. Macro Conditions Impacting on Human Settlements • Rapid urbanization and Migration to cities • Structural unemployment and informality • Economic down-turn: diminishing access to housing finance (credit) • More households falling in subsidy income band • Diminishing bulk infrastructure spare capacity • Social and geographical disparities - inequality • Inputs: costs| construction materials| capacity • Built environment governance nexus • Sustainability: climate change and related

8. Pillars of the Human Settlements Development Strategy • Pillars 1: Statement of Outcomes (expectations) • Prevailing reality • Mandate (manifesto/ SoNA/ Budget Speech) • Sustainability considerations (today’s choices for a better future) • Pillars 2: Macro Co-ordination & Alignment • Pillars 3: Urbanization & Spatial Management • Pillars 4: Key priorities • Residential Property development Governance (2009/10) • Shelter development: (2009 – 2014) – “Core mandate period” • Long term (2009 – 2025) • Pillars 5: Transformation: Paradigm shift • Pillars 6: Institutional Re-alignment for Implementation

9. Service Delivery Priorities (2014) • Accelerate Upgrading of Informal Settlements • Objective: To upgrade well located informal settlements and provide proper services and land tenure to 500 000 households by 2014 • Upscale development of Affordable Rental Housing Stock (Urban focus) • Objective: Increase the rate of affordable rental housing delivery of at least 20 000 units per year • Land Assembly for Human Settlements • Objective: To set aside 6 250 hectares (net)of well located public land for low income and affordable housing (accommodating approximately 400 000 units by 2014 which is at 60 units per ha on average)

10. Service Delivery Priorities (2014) cont. • National Settlement Infrastructure Development • Objective: Accelerated provision and upgrade of bulk infrastructure networks to prioritised settlements by 2014 • Facilitate increased supply of affordable housing finance • Objective: To accommodate people whose salaries are too high to get a government subsidies, but who earn too little to qualify for a normal bank mortgage.

11. Translating Programmes into Actions(Programme of Action) Annual Plans/ Targets - 2010-2014 • Subject of Delivery agreements • Further directive(s) awaited from Presidency

12. Human Settlements & Basic ServicesDelivery Forum Convener: DG Human Settlements Secretariat: Substance Coordination & Administration (Links to FOSAD & Cabinet Secretariat) Supporting Members: DAC Education Health DST Agriculture, Forestry Others Partners Entities: HDA – Land Assembly NHFC – Finance/ R1bn HLG DBSA - Infrastructure IDT – CSI Partnership Core Members: DoHS (Lead on Housing & HS/ Policy) CoGTA (LG/ Services/ Infrastructure) DWA (Service & Infrastructure) DoEnergy - (Service & Infrastructure) DoEnviron - (Service & Infrastructure) Transport (Infrastructure) NT (Finance) RD & LR – (Land) DPW – (Land)

13. Provincial Human Settlements & Basic Services Delivery Forum Convener: HoD: Human Settlements Secretariat: (Premier’s Office/ HOD’s own) Substance Coordination & Administration Supporting Members: National Secretariat Premiers Office SALGA Partners Entities: HDA – Land Assembly DBSA – Infrastructure Core Members: DoHS (Lead on Housing & HS/ Policy) CoGTA (LG/ Services/ Infrastructure) Reg DWA (Service & Infrastructure) RegDoEnergy - (Service & Infrastruc) DoEnviron - (Service & Infrastructure) Transport (Infrastructure) Health Education Municipalities

14. Progress Analysis • The transfer of the Sanitation Unit from the previous Department of Water Affairs and Forestry has been finalised. • The Department has ensured that the necessary support service are provided albeit challenges in terms of office space accommodation and other operational resources. • The National Housing Code, 2009 was published in February 2010 and disseminated to all provinces, municipalities and stakeholders. • Included in the new National Housing Code, 2009 is the new housing assistance programme for farm residents. • In some instances policy development processes were delayed owing to further consultations being required and inter-governmental cooperation posed particular challenges in finalising policy instruments.

15. Progress Analysis • The Department developed a conceptual document on the implication of the name change from Housing to Human Settlements. • An indaba on alternative building technologies is currently being arranged to provide answers to the question raised. • The Department through the Chief Directorate Monitoring and Evaluation completed the Beneficiary Occupancy Audit, initiated during the year in seven of the nine Provinces. • The Department undertook three Impact Evaluation Studies to determine the impact of various housing programmes on the lives of Beneficiaries. The targeted programmes are the Rural housing Programme, the Social and Rental Housing Programme and the Upgrading of Informal Settlements.

16. Progress Analysis • In addition, the Department proceeded with the project-level monitoring process to verify and confirm delivery as reported by Provincial Human Settlements Departments. • The Department initiated a process to develop a Human Settlement Index for SA in collaboration with UN Habitat. • A significant highlight of the Departmental engagements with stakeholders has been entering into agreements with, the Platinum Mines for possible roll out of projects in Limpopo and North West, Intersite for joint developments of land in and around railway stations, and the DBSA for technical support on priority and blocked projects. • Significantly, Department negotiated the signing of the agreement with the Department of Public Works that gives the Human Settlement department first right of refusal on any land being considered for disposal by DPW.

17. Progress Analysis • The National Upgrading Support Programme has been established and will in future provide support to municipalities in the in situ upgrading of informal settlements. • A project process guide has been developed to guide implementers of projects in the housing process and would also serve as a project management and monitoring tool for project managers. • The newly established Housing Development Agency (HDA), following the promulgation of the Housing Development Act, 2008 (Act. 23 of 2008) was operational in the 2009/10 financial year. • The Department in collaboration with the Rural Housing Loan Fund has finalised the development of an individual housing subsidy voucher scheme for persons who enjoy functional tenure rights to the land they occupy.

18. Progress Analysis • The Department has ensured that operational systems are aligned with changes in housing policy and also implemented change requests received from the nine provincial housing department. • A process to develop generic business processes based on documented housing delivery processes has been implemented. • Five municipalities are accredited to level one. • To date municipal accreditation compliance and capacitation assessment panel has completed level 1 and 2 assessments of all six metro’s and four local municipalities. • In the international arena, South Africa was given a voice in the debate on human settlements through the African Ministerial Conference on Housing and Urban Development and the World Urban Forum.

19. Progress Analysis • Due to inadequate resources the Department is not able to fill all its vacant posts. The filling of vacancies is done on a prioritized basis and will be done gradually as funding is available such that the new structure will be fully implemented by 2010/11 financial year.

20. Departmental Total per Prog

21. Departmental Total per Economic Classification

22. Integrated Housing and Human Settlement Development Grant

23. Departmental Agencies

24. STRATEGIC GOALS OBJECTIVES AND PLANNED OUTPUTS PER PROGRAMME

25. Programmes purposes • Programme 1: Administration • Purpose: Provide strategic leadership and administrative and management support services to the department. • Programme 2: Housing Policy, Research and Monitoring • Purpose: Develop and promote human settlement and housing policies supported by a responsive research agenda. Monitor and assess the implementation, performance and impact of national housing policies and programmes. • Programme 3: Housing Planning and Delivery Support • Purpose: Support implementation and delivery, build capacity, and liaise and communicate with stakeholders for effective housing and human settlement programmes. Coordinate and monitor the implementation of priority projects and the sanitation programme.

26. Programmes purposes cont. • Programme 4: Housing Development Finance • Purpose: Fund housing and human settlement development programmes. Provide financial and grant management services. Promote investment in housing finance. Mobilise and promote financial probity within housing institutions. Manage all matters provided for by the Home Loan Mortgage and Disclosure Act (2000). • Programme 5: Strategic Relations and Governance • Purpose: Coordinate the department’s mandate within the intergovernmental relations framework. Manage international relations and promote good governance practices within the department and its public entities. Provide timely and integrated business information to the department.

27. Allocation per Programme 2010/11 to 2012/13

28. Allocation by Economic classification

29. Programme 1: Administration • STRATEGIC GOAL • To provide strategic leadership, administrative and management support services to the Department • STRATEGIC OBJECTIVES • Executive Support: To provide Executive Support services to the Director-General • Internal Audit, Risk Management and Special Investigations: To provide independent assurance on the system of internal control and corporate governance

30. Programme 1: Administration (Cont.) • STRATEGIC OBJECTIVES • Human Resources Management: Facilitation of strategic human resource management practices and processes in the Department • Corporate Services: To render responsive corporate support function to the department • Information Technology and Systems: To provide IT services and solutions for internal departmental operations • Legal Services: To provide legal services to the Department

31. Programme 1: Administration cont.

32. Programme 1: Administration cont.

33. Programme 2: Housing Policy, Research and Monitoring • STRATEGIC GOAL • To manage the development, promotion, monitoring and evaluation of sustainable human settlements policies and programmes supported by responsive research • STRATEGIC OBJECTIVE • Policy: To develop and promote national sustainable human settlement and housing policies • Research: To manage and coordinate responsive research • Monitoring and Evaluation: To monitor the performance and evaluate the impact of policies and programmes

34. Planned Outputs • Policy • Maintain and promote the National Housing Code • Develop contract documents and application forms for Farm Residents programme • Review and finalise Inclusionary Housing Programme • Finalise Finance Linked Subsidy Programme (FLISP) • Conduct structured workshops with stakeholders on National Housing Code and Regional Policy Model

35. Planned Outputs (Cont.) • Research • Produce four research reports on the following themes: Sustainable human settlements, demand, supply and land tenure • Produce number of research reports on the identified themes in the research agenda • Produce four research reports on trends in the broader macro and micro environment and determine the impact thereof

36. Planned Outputs (Cont.) • Monitoring and Evaluation • Implement monitoring and evaluation impact assessment policy guidelines • Produce four monitoring and evaluation reports on performance of national housing • Produce four technical construction reports • Produce two occupancy audit findings reports • Produce two impact evaluation reports

37. Programme 2: Housing Policy, Research and Monitoring cont.

38. Programme 2: Housing Policy, Research and Monitoring cont.

39. Programme 3: Housing Planning and Delivery Support • STRATEGIC GOAL • Provide implementation and delivery support, build capacity, liaise and communicate with stakeholders and manage intergovernmental and international relations for housing and human settlement programmes • STRATEGIC OBJECTIVE • Human Settlement Planning: Manage human settlement programmatic planning frameworks and support the implementation of human settlement development design and spatial planning • Stakeholder Mobilisation: To manage relations, engage and collaborate with sector stakeholders

40. Programme 3: Housing Planning and Delivery Support Cont. • STRATEGIC OBJECTIVE cont. • Programme Implementation Support: The provision of support to provinces and municipalities to unblock stalled projects • Rental Housing and PHP: To manage the implementation of the PHP and rental / social housing programmes and to provide regulatory support and oversight over the rental/ social housing and PHP sectors • Capacity Building: To develop & secure capacity in the sector • Priority Projects: To coordinate the achievement of sustainable human settlements in identified national priority projects • Sanitation: Ensure sanitation delivery through policies and regulations

41. Planned Outputs (Cont.) • Human Settlement Planning • Develop & maintain human settlement planning frameworks & instruments. • Support the implementation of human settlement development design and spatial planning at provincial level. • Support the implementation of human settlement and housing development planning frameworks at municipal level. • Support rendered to municipalities in the preparation of human settlements sector plans.

42. Planned Outputs (Cont.) • Human Settlement Planning cont. • Appropriate Human Settlements sector officials & Municipal Councilors, adequately skilled and trained to facilitate compilation of human settlements chapter of IDPs. • Participation and annual review of Municipal IDPs. • Promote the institutional alignment of planning with other sectors. • Institutional alignment with other sector departments maintained. • Participation at quarterly performance reviews of PHD’s. • Render advisory services and assistance in respect of human settlement design and spatial planning

43. Planned Outputs (Cont.) • Stakeholder Mobilization • Manage the liaison and involvement of Sector Stakeholders for the delivery of human settlements by re-tooling the Social Contract for human settlements • Ensuring the alignment of norms and standards across sectors to improve intergovernmental coordination. • Implementation of the Framework of engagement of the Social Contract • Manage the engagement and signed Memorandum of Understanding’s in partnership projects and collaborate on Human Settlements projects with sector stakeholders. • Targeted agreements signed with stakeholders. • Engage provincial departments in supporting the implementation process on identified projects. • Implementation of Partnership agreements. • Cooperation with National and Provincial Departments on National Govan Mbeki Human Settlements Awards

44. Planned Outputs (Cont.) • Stakeholder Mobilization cont. • Manage the mobilization for empowerment and support to Women and Youth in Human Settlements programmes • Implementation of Women in Human Settlements programme. • Women in Human Settlements Mentorship programme model approved.   • Support to National and Provincial Women in Human Settlements initiatives. • Implementation of Youth in Human Settlements (YHS) Framework.

45. Planned Outputs (Cont.) • Programme Implementation Support • Produce a report on number of information sessions conducted with Provinces on the strategy to unblocked stalled projects. • Agreement concluded and finalized with Provinces on strategy to unblock stalled projects. • Introduce an Early Warning System to identify slowly moving projects. • Provide support for informal settlement upgrading projects. • Manage the National Upgrading Support Programme (NUSP). • Produce report on the reasons for projects being blocked. • Compile a priority list of blocked projects to be undertaken by Provinces. • Produce a report on recovery plans/ intervention undertaken in respect of identified blocked projects.

46. Planned Outputs (Cont.) • Rental Housing and PHP • Facilitate, support and manage the development of 100 000 public and private rental housing units in provinces in line with the National Rental Housing Strategy. • Nine Provincial Human Settlements departments supported in the delivery of at least 20 000 units by 2013 pending Provinces allocation to implement People’s Housing Process based on the approved Growth and Implementation Strategy for People’s Housing Process. • Develop guidelines on accessing of housing assistance for housing cooperative sector

47. Planned Outputs (Cont.) • Rental Housing and PHP cont. • Provide regulatory support and oversight on the performance of institutions in the rental housing sector: • Provide support in the establishment of the Social Housing Regulatory Authority; • Oversight of Social Housing Regulatory Authority activities and functions; • Update and maintain a database of Social Housing Institutions and projects; • Provide technical support and information to the Rental Housing Tribunals; and • Turnaround distressed institutions.

48. Planned Outputs (Cont.) • Capacity Development • To manage training and skills development programme • Training and Skills Development programmes implemented for: • Government officials (500) • Beneficiaries (500 000) • Emerging contractors (50) • Councilors (300-600) • Sector institutional policies and strategies developed and implemented. • Sector professional development programme developed and implemented.

49. Planned Outputs (Cont.) • Capacity Development cont. • To support professional development within the sector. • Scholarship awarded to qualifying applicants (120). • Professionalization strategy developed and implemented by 2010/11 financial year • Business Plan for Professional Body developed and approved by 2010/11 financial year • Streamlining of Human Settlements qualifications to create a career path in preparation for the Human Settlements practitioners.

50. Planned Outputs (Cont.) • Priority Projects • To manage the identified national priority projects. • To represent the Department at monthly project steering committee meetings. • To provide technical support and policy interpretations to the implementers of the projects to ensure that the projects meet the national minimum norms and standards. • To manage the administrative processes as set out in the inter-governmental agreements to facilitate delivery.