Presentation to the Select Committee on Public Services on

1. Presentation to the Select Committee on Public Serviceson THE NATIONAL HOUSING CODE 2009

2. Why a Code? Provisions of the Housing Act, 1997 Section 4 of the Housing Act requires the Minister of Housing to publish a Code. • The Code must contain the national housing policy; • The Code may include the procedural guidelines for the effective implementation of the policy; • A copy of the Code must be provided to each provincial government and each municipality; and • The Minister must publish a revised Code when amendments are effected.

3. Why a Code? Provisions of the Housing Act, 1997 Section 12 of the Housing Act, 1997 The Minister of Housing: • Negotiates the apportionment of the annual national budget for housing purposes; and • Allocates funding received from Treasury to the nine provinces. Housing Grant funding may only be administered in terms of the provisions of approved National Housing Programmes (as contained in the Code). The Code is thus a legal document and is treated as such by the Courts

4. Background • The previous Housing Code was published on 10 October 2000; • Since then various policy enhancements and amendments were effected; • The adoption of the Comprehensive Plan for the Creation of Sustainable Human Settlements (“Breaking New Ground”) necessitated a review of the Code to align it with the Plan; • The new legislation such as the PFMA and the MFMA presented an opportunity to adopt a less prescriptive style in the Code; • Housing MINMEC thus mandated the revision of the code in 2005.

5. Overview of the Code 2009 The National Housing Code: • Is aligned to the Comprehensive Plan for the Development of Sustainable Human Settlements (“Breaking New Ground”), 2004; • Is cast in a user friendly format - each programme is a complete unit and there is no need to cross reference; • Contains prescripts only as required by law (Eg. the Public Finance Management); • The discretionary guide-lines provide maximum flexibility to housing practitioners and decision makers; • The redevelopment process was subject to broad and intensive consultation and participation.

6. The structure of the Code 2009 A user friendly structurewas introduced Old programmes were removed: • Project Linked Subsidies, Relocation Assistance, Blocked projects, rectification of post 1994 housing stock- these remain valid and thus part of the 2000 Code The Code comprises separate volumes to simplify use • Volume One consists of: • A simplified guide to the Code, a birds eye view of the Policy and National Housing Programmes; and • The Policy Context: A summary of the White Paper on Housing as the foundation of the housing policy and a communication friendly version of the Comprehensive Plan- Setting the tone for the future.

7. The structure of the Code 2009 Volume 2 comprises the Technical Guidelines Section: This entails the: • Ministerial Norms and Standards; • General Qualification Criteria; • Environmental sound development guidelines; • EPWP; • Variation Manual for subsidy amount adjustments; and • Monitoring and evaluation section.

8. The structure of the Code 2009 Volumes Three to Six comprise the National Housing Programmes. The Housing Programmes are grouped into four themes: a) Financial interventions; b) Incremental Interventions; c) Social and Rental interventions; and d) Rural interventions. The standard lay-out of each programme entails: • Simplified policy prescripts; • Financial directives; • Roles and responsibilities; and • Discretionary implementation guidelines.

9. Programmes under review • Finance Linked Subsidy Programme (FLISP) is under revision in collaboration with BASA to address: • Current market trends • Levels of capital subsidy required • The income limit; • The number of subsidy categories; • The pre-emptive right; • The contribution requirements; • The ‘claw back’ clause; and • Alternative options

10. Programmes under development • The Inclusionary Housing Programme - provides for a certain proportion of housing projects developed by the private sector to be set aside for affordable housing, through a voluntary deal driven approach and/or a legislative requirement; and • A rural individual housing subsidy voucher scheme has been developed.

11. The Core Programmes Three National Housing Programmes are considered core programmes for future housing delivery: • Integrated Residential Development Programme (IRDP) • Upgrading of Informal Settlement Programme (UISP) • Social / Rental Housing Programme

12. The Integrated Residential Development Programme (IRDP) • Focus is on social, economic and spatial integration and provides a vehicle for inclusionary housing; • Provides housing choice - including low to high income ownership and rental options; • Integrated development finances a variety of land uses eg. Schools, clinics, parks, business etc.; • Scope for financial sector participation through the Finance Linked Subsidy Programme (FLISP). • Takes an area wide planning approach based on community needs; • The identification of beneficiaries takes place once housing construction has commenced – simplifies subsidy beneficiary administration.

13. . Example of IRDP: Olievenhoutbosch • This is Absa Devco’s first Sustainable Integrated Development Ministerial Housing Project. • After completion of all 4 phases, Olievenhoutbosch will consist of : • 1068 Bonded Housing • 3005 Subsidised Housing • 1263 Rental Units • 39 Retail and non-toxic light Industrial Businesses • Clinic • Community Centre & Sports Facilities • Churches & Cemetery • 6 Crèches • 2 Schools • (Pictures courtesy Absa Devco)

14. Upgrading of Informal Settlement Programme(UISP) • Contributes towards achievement of the UN MillenniumGoal to improve the lives of 100 million slum dwellers by 2020; • In the event that in situ upgrading is not feasible or desirable, communities can be resettled using the Emergency Housing Programme; • Resettlement assistance is provided; • An inclusive area or community wide planning approach is followed; • Community participation is funded; • Provides for emergency interventions by providing basic sanitation and water services as first step; • Permanent services follow; • A choice of housing tenure options (including rental and options to buy) is available in the last phase.

15. Social Housing • Provides for a mixture of Government grants, private sector funding and equity to provide affordable rental accommodation, managed by social housing institutions; • Supports urban restructuring / renewal in restructuring zones; • Refurbishment and conversion of existing buildings and new build; • Allows for maximum cross-subsidisation from higher/middle income to support lower income tenants • Will be supported by legislation for accreditation of institutions through the Social Housing Regulating Authority (SHRA)

16. . Social Housing in urban renewal area: Walter Sisulu Square - Kliptown • The Kliptown development project is focused on upgrading the Kliptown area and encompasses the following projects: Provision of bulk services, Roads, Housing (institutional and RDP), Public transport facilities (taxi route, bus route and rail), Commercial area and nodes and clean-up of wetlands and heritage sites • The project comprises 478 medium-density apartments; rental stock wholly owned by the City of Johannesburg’s subsidiary, JOSHCO. Cluster 1 has 215 units in eight blocks, while Cluster 2 has 263 units in 12 blocks. The blocks are either double- or triple-storey buildings

17. Shayamoya rental flats Cato Manor, by virtue of its size and location offers an unique opportunity in assisting in solving Durban’s housing backlog. Most of the land is vacant and can therefore be developed as ‘Greenfield’ sites. Other densely settled areas will be subject to in-situ upgrading. (Pictures courtesyCMDA) Social housing in Cato Manor - KZN

18. Background The New Europa House is a conversion project in which the dilapidated inner city Europa Hotel was refurbished and converted into housing units. Planning This project is part of the city’s Better Buildings Programme that aims to reclaim all dilapidated buildings on which huge arrears are owed, and convert them into habitable residential structures for the people of Johannesburg. The development is intended to fill the gap in the housing market between homelessness and social housing by providing shelter, communal and transitional housing. The target beneficiary group is those earning between R1 500 and R3 500 a month, but the management prioritises those that earn less than R2 500 a month. The project has been wholly funded by the City of Jo­hannesburg, with 53% of the funds being institutional subsidies. Conversion project example: Europa House Conversion

19. Community Residential Units • Replaces the former-hostel redevelopment programme; • Aims to provide secure, stable and affordable rental tenure for the lowest income persons; • Targets households earning below R3 500; • It applies to hostels and the balance of the public rental stock that cannot be sold.

20. . Hostels to Homes conversion project in Nyanga The Hostels to Homes programme is aimed at converting hostel beds in Langa, Nyanga and Gugulethu townships, into family units. The programme will be producing 8000 new and converted units over eight years Emphasis is placed on the creation of a network of public space, streets, avenues, pedestrian sidewalks and parks. The main “arteries” of the network are articulated by new two and three storey buildings, whilst inner courts are formed by existing single storey or new double storey buildings.

21. Other Programmes in the Code • Individual subsidies • Rural housing - Informal land rights • Emergency housing • Rectification of stock built before 1994 • Basic Social and Economic Facilities • Consolidation subsidy • Operational Capital Budget Programme • Enhanced Extended Discount Benefit Scheme • Housing Chapters of IDPs

22. New Programme The Farm Residents Housing Assistance programme has been approved and added to the new Code, 2009; This programme will enhance the rural development initiatives. It entails a flexible approach to farm resident’ s housing solutions It includes a LRAD aligned component that was developed in collaboration with the KZN Land Affairs Department and structures

23. Distribution of the Code 2009 • The Housing Act provides for the distribution of the Code to every Provincial Government and municipality which was done in February • Copies were also be provided to Parliament and the National Housing Institutions; • Copies are also be available on demand • By and large electronic versions will be distributed

24. Thank you