Medium Term Strategic Plan 2011/12 to 2013/14 MARCH 2011

1. Medium Term Strategic Plan 2011/12 to 2013/14 MARCH 2011

2. Structure of the strategic plan • Recap of HDA objects and functions • Strategic overview • Legislative and policy mandates • Human settlement sector challenges: role of the HDA • HDA vision, mission and functions • Visionary goals, goal statements and strategic objectives • Programme and sub-programmes plans • Institutional arrangements • Financial aspects

3. Objects of the Agency • Identify, acquire, hold, develop and release state, communal and privately owned for residential and community purposes and for the creation of sustainable human settlements • Project manage housing development services for the purposes of the creation of sustainable human settlements • Ensure and monitor that the centrally coordinated planning and budgeting of all infrastructure required for housing development • Monitor the provision of all infrastructure required for housing development

4. Functions of the Agency • 1. Land assembly • Identification, acquisitions, holding and release of land (state/ private/ communal) • Processing and preparation of land development (permits/ approvals etc) • 2. Project delivery support services to organs of state - provinces and • municipalities • Informal settlements upgrading • Project management services in human settlements development • 3. Monitoring and facilitation

5. Vision and Mission of the Agency Vision: Sustainable human settlements and communities developed on land and landed properties made available by the HDA Mission: A public development Agency that promotes sustainable communities by making available well located and appropriately planned land

6. Government priority and Outcome 8 alignment • According to the delivery agreement signed by the Minister of Human Settlements: • The HDA is directly responsible for the acquisition of 6 250 hectares of well-located and publicly-owned land and buildings • Provide project management services relating to: • Assist in the upgrading of informal settlements • Emergency housing solutions • Incomplete (blocked) housing development projects

7. Key achievements • Financial performance • Operating within the grant provided • Financial policies and procedures in place • SCM - HDA compliant • The HDA achieved a clean audit in its first financial year 2009/2010

8. Key achievements • IGR and Strategy Alignment • Implementation Protocols signed with: • 5 provinces (Limpopo, Northern Cape, Western Cape, Eastern Cape and Free State) and • 3 municipalities (Tshwane, eThekwini and Ekurhuleni)

9. Looking at land with municipal official Signing IP with Eastern Cape IGR&SA: Intergovernmental relations Meeting with Free State after signing IP Introducing HDA to municipalities Introducing HDA to municipalities Signing IP with Western Cape

10. HDA Projects & Programmes Requests from organs of state received to date Mandated ito Section 29 Based on IPs, land portfolio & mandated functions

11. Key achievements • Land Acquisitions and Management • In excess of 33 000 hectares of well-located state land has been identified and prioritised. This was submitted to the DPW and DRD&LR for release - this will meet the target of 6 250 hectares required as part of Outcome 8 • 75 hectares of land has been purchased in Bela-Bela with funding provided by Limpopo province • An Implementation Protocol has been signed with Free State province and via Servcon eight Transnet-owned properties (105.5401 hectares) are in transfer and registration stages • The HDA undertook due diligence and assessment of the Servcon property portfolio (transfer has not taken place as anticipated) • LaPsisand NaHSLI are established and operational

12. Enhanced Framework for the Release of State Land to the HDA

13. Objectives of the Framework • The Framework proposes a seamless and efficient procedure for the release of state-owned land for human settlement developmentin order to overcome: • Complexities • Inefficiency • Long red tape • Asset management fragmentation

14. State land release methodology and effective date • Release enables HDA to prepare the land • Secure reservation of land for Human Settlements • Accountant General endorses asset transfer • Release of land may take various forms

15. Recommended State Land Release Framework • 90 properties requested

20. The HDA undertakes spatial analysis, to inform land identification • Acquisitions, planning and programming are done in collaboration with PDHS and municipalities LAM: Identifying land and spatial analysis

21. LAM: Land assembly (identification & feasibility)

22. Property Portfolio R105 million

23. Current Property Portfolio

26. Free State: Bethlehem

29. Limpopo: BelaBela

30. Key achievements • Projects and Programmes • N2 Gateway and Zanemvula projects stabilised and on track – business and funding plans were developed and presented to the respective provinces and the signing of these agreements was concluded in 2010 • Draft policy for the Priority Housing Development Areas (PHDA) is being developed • Project and planning support provided to Cornubia, Ekurhuleni, NDHS, Northern Cape province

31. P&P: N2 Gateway Human Settlement Development Project • The N2 Gateway (Cape Town) is a national priority project involving the building of: • fully-subsidised • rental • affordable bonded homes • Seeks to create sustainable communities in designated precincts along the N2 highway • Aims to provide 120 000 people with 23 000 homes • Phase 1 is nearing completion and will deliver approximately 15 000 houses. Approximately 7 000 houses built to date

32. Role of the HDA • The HDA was appointed in June 2009 as an implementing agent and overall project manager to provide the following services: • Contract management and oversight • Project design, feasibility and approval processing • Project costs and budgets management • Community liaison and communications • Funding applications

33. Moving beneficiaries into houses in Delft • Erecting TRAs • Completed houses Delft 7-9 • Building Joe Slovo N2 Gateway

34. P&P: ZanemvulaInformal Settlement Upgrading and Human Settlement Project • Zanemvula (Nelson Mandela Bay Metro) is one of government’s flagship mega projects and aims to: • deliver approx 10 557 houses (2 664 to date) • in-situ upgrade 1 565 units (subject to Metro replanning) • rectification phase one 460 (380 to date) and phase two aims to rectify 2 500 • provide rental housing opportunities to subsidy non-qualifiers • The project is driven by the Eastern Cape province with the HDA as its implementing agent

35. Role of the HDA • The HDA is the implementing agent with overall project management responsibility, including: • Construction management • Procurement and tender processes • Establishment of site characteristics • Project design, feasibility and approval processing • Project costs and budgets • Health and safety • Communications and beneficiary management • Submission of plans for statutory approvals • Funding applications

36. Plans for Soweto-on-Sea multi-purpose community centre • Building houses in Chatty • Rectification of houses at Soweto-on-Sea • Party for pensioners • Building multi-purpose community centre Zanemvula

37. P&P: Cornubia - Mixed Use & Housing Project • Cornubia is situated between Phoenix/Ottawa and Umhlanga • R5 billion development (mixed-use, mixed-income) • 1 200 Ha of land of which 750 Ha will be developed • 50 000 houses will be developed: 19 313 subsidised (by 2017) • eThekwini Metro and TongaatHulett signed a Cooperation and Alignment Agreement in 2008 for release of the land • An Implementation Protocol entered with Metro/ HDA/ KZN PDHS • HDA supports the project management function of the Metro and land acquisition for the project • .

38. Cornubia • The land • The location • Development plans • Constructing the bridge • A vision of the future

39. Key achievements • Organisational development • Board and Board Subcommittees of the HDA in place • Executive Management Team in place with key departments operational • Policies and procedures that govern the HDA operating environment are in place • Implementation of the strategy linked to performance management • Written mandate concluded between the Minister and the Board

40. Key statutory and regulatory challenges • Misalignment between the fiscal arrangements and the mandate of the Agency • In some cases, sector role players view the HDA as a private sector service provider/ consultant, which adversely impacts on its ability to provide support in line with its legislated functions and mandate. • More effort is needed to appropriately position the mandate, role and functions of the HDA within the sector in order to expedite achievement of the objects and functions of the Agency

41. Visionary goals and strategic objectives

42. Macro performance indicators

43. HDA Programmes • Programme 1: Strategic Management, Finance and Administration • Provides overall organisational support services to operate and function as an organisation with a track record of quality, effective delivery and professional service. • Key targets: • Effective governance structure • Clean audit • Effective and compliant policy framework • Effective, efficient and compliant operational structure • Effective performance management system

44. HDA Programmes • Programme 2: Land Acquisitions and Management • Coordinates the identification of suitable land and landed property and facilitate its acquisition and/or release for human settlements development. Manages acquired property as well as undertake spatial analysis and provide geo-spatial services • Key targets: • 36 000 hectares of public land identified for acquisition • 6 000 hectares of private land identified for development • 220 development feasibility assessments • 6 000 hectares of public land released for human settlements purposes • 9 250 hectares of urban public land released to HDA

45. HDA programmes • Programme 3: Projects and Programmes • Manages projects and programmes aimed at promoting sustainable human settlement development through various capacity and project support services to sector stakeholders. • Key targets: • Provide capacity support in 9 provinces to achieve human settlement targets • Provide capacity support in 9 provinces/municipalities to achieve informal settlement upgrading targets • Define blocked project assistance and support framework, and emergency housing and support framework for provinces • Provide technical support to 20 targeted projects • Approval of PHDA framework and regulations

46. HDA programmes • Programme 4: Intergovernmental Relations & Strategy Alignment • Secure key IGR relationships between the different spheres of government to facilitate and accelerate the development of human settlements, as well as fostering partnerships with identified sector stakeholders, concluding agreements that allow HDA to function effectively. • Key targets: • Approved IGR policy framework • Outreach initiatives to improve appreciation of HDA role, mandate and functions • Agreements and partnerships negotiated and concluded with stakeholders • Facilitate strategy alignment with organs of state • Facilitate HDA’s participation in fiscal planning process to ensure HDA funding

47. Organisation functional structure

48. Funding options and status thereof In order to enable the HDA to fully perform its legislated functions, the quantum of the monies (including subsidies and grants) available to the Agency needs review

49. Implications of different funding scenarios

50. Budget • The current MTEF allocation for 2011/12 is R89.1 million increasing to R93.55 million in 2012/13. It is considered that in the light of the legislated functions that the Agency is to fulfil, the current MTEF allocation is inadequate and would require review. Should the HDA be sufficiently capitalised to achieve its mandate, the operational requirement would increase. • The HDA is not (yet) recovering its operational costs from the Eastern Cape PDHS. The total budgeted amounts for projects are as follows: