PRESENTATION TO THE PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS BRIEFING ON MTBPS 11 NOVEMBER 2009

1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS BRIEFING ON MTBPS 11 NOVEMBER 2009

2. Mandate and medium-term policy priorities • Reconstruction and Development Programme (RDP) – sets out framework and principles for sustainable development • Botshabelo Housing Accord (1994) Signed by housing stakeholders • Subsequent white paper on Housing (1994) and the Housing Act (1997) • Millennium Development Goals • SA CONSTITUTION • Section 26: Right to access adequate housing • Schedule 4: National and Provincial Governments have concurrent legislative competence

3. Mandate and medium-term policy priorities cont. • The White paper on Housing remains the pillar of housing policy. • The priorities of the Comprehensive Plan are to: • Accelerate housing delivery within the context of sustainable human settlements; • Improve the quality of housing products and environments and turn housing into assets; • Create a single and efficient formal housing market; • Restructure and integrate human settlements; • Utilize the provision of housing as a job creation strategy; and • Ensure access to property to alleviate asset poverty and foster empowerment; • 2009 Human Settlements focus.

4. prevailing reality Key Elements (Pillars) of HS Strategy Expected Outcomes Macro Co-ordination & Alignment Urbanisation & Spatial Management Key Service Delivery Priorities Transformation (Paradigm shift) Institutional Re-alignment

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

6. STRATEGY PILLAR 1: Expected Outcomes NOTE: Stubborn apartheid ‘legacy’ and consequences of urbanization & migration ( also unintended consequences) • Functional and empowering settlements • Livelihood and life enhancing habitation • President Zuma: Human Settlements “is more than just building houses…” • Minister Sexwale: …places where people can play, stay and pray. They should be green, landscaped communities -- pleasant places, where people live, learn and have leisure. • Freedom Charter: Houses, security and comfort • Sustainable development principles & choices today…!

7. STRATEGY PILLAR 2: Macro Coordination & Alignment • Defining the product – Planning • Funding alignment – Funding Assembly • Delivery – Getting the job done

8. COMMERCIAL & BUSINESS SOCIAL AMENITIES ENVIRONMENTAL SPACE HOUSES BULK SERVICES INTERNAL SERVICES LAND

9. Policy Conditional Grant Other Public sector - Policy and Funding Education Health BNG Land Transport Electricity Water, Sanitation IHAHSD R13bn MIG R6bn INEP R1bn NDPG R4bn Land Grant PT & IG Prov ES Prov ES Province Province Province Province Eskom Water Boards Developer Hum Sett (DWA) RD&LR CG&TA DoT Energy NT DoE DoH Municipalities Urban Consolidation Electricity Houses Water Internal Infrastructure Sanitation Roads Social Amenities Residential Land HUMAN SETTLEMENTS

10. Government mandates Converge Coherent product: Human Settlements Houses Harmonized response/ delivery/ Implement Focal Point of Effort Department of Human Settlements Coordination Water Sanitation Waste Roads Land Electricity other

11. Planning National Developmental Plan (Human Settlements| Economic Dev.| Human Development|… ) Presidency (NPC) National Human Settlements Plan National Community level infra. Amenities Land/spatial planning Housing (Shelter) Planning Settlement Patterns Provincial Growth and Development Strategies (including a “Human Settlements development plan”) Provincial Integrated Development Plans (including a series of settlement level plans) Local Community Based Plans (neighborhood/ precinct development plans)

12. Macro Coordination & Alignment for Human Settlements • Compile a National (Provincial) Development Plan for Human Settlements, produce settlement level plans and promote innovative project development. • Align funding streams and existing built environment related grants/ resources and • At an implementation level - ensure effective project management and capacity assembly Facilitation & Leadership (Focal Point) Monitoring Mandate accountability

13. STRATEGY PILLAR 3: Urbanisation & Spatial Management • The key is a National Human Settlements Plan • Policy and investment choices that are “spatially sensitive and responsive” • Support to cities in managing urban areas • Prioritization of settlement patterns/location • Focal point: public policy on urban development • Spatial planning • Sustainable urbanization & urban development

14. STRATEGY PILLAR 4: SERVICE DELIVERY PRIORITIES(a) Shelter Development • Development of Affordable Rental Stock • Inner City (Restructuring Zones – Social Housing Act & Rental Housing Act) • Hostels redevelopment • Migration to urban areas • Informal Settlements Upgrading: formalisation and basic services (1.8m Households) • Rural Settlements (Shelter needs & basic services) • Peoples’ Housing process (Self initiative) Land (title) Assembly Funding assembly Capacity assembly Programme Leadership

15. PILLAR 4: SERVICE DELIVERY PRIORITIES (b) Shelter Development Governance • Applying subsidy policy to deliver houses through credible settlement plans – set the “non-negotiables” • Adherence to minimum norms and standards/ guides • Customer care: • Targeting of “qualifiers” and choice of support for others • Quality (Asset creation and transfer) • Balance of typology, tenure variety (rent/ own) & density • Proper packaging & procurement: value-for-money!!! • Residential Market transformation & consolidation

16. STRATEGY PILLAR 4: KEY PRIORITIES(c) Settlements Development (long term) • Framework legislation consolidation • Financing Policy reform • Subsidy (sustainability) Review • Development Finance Institution Reform • Private Sector • Financial Service Charter (FSC beyond 2009 & economic downturn) • Finance Linked Subsidy Programme (FLISP) • Township transformation and integration • Sustainable settlements

17. STRATEGY PILLAR 5: Transformation – Shifting the paradigm and Practice 5.1 Community Outreach • Liaison & participation facilitation • Customer Care (place beneficiary first - @ the centre) • Community empowerment (for self initiative) 5.2 Practitioners Re-orientation/ affirmation • Practice consolidation & dissemination • Development and support 5.3 Institutional Support in practice application 5.4 Sustainable development: informed choices

18. STRATEGY PILLAR 6: Institutional Re-alignment 6.1 Macro Re-organisation of HS (a) Role of Cities (Metropolitan Municipalities) (b) Built environment management (roles) (c) Resolve difficulties of “Powers and Functions” 6.2 Departmental Organisational Re-alignment; 6.3 “Tighter” mandating of public entities including those not in the Department; 6.4 Human Settlements Sector and Mandate Consolidation.

19. 2008/09 Expenditure

20. 2008/09 Conditional grant expenditure

21. Expenditure as at 30 September 2009

22. 2008/09 Conditional grant expenditure

23. MTEF Allocations for 2009-2012

24. MTEF funding proposals • Issues that have been raised in the MTEF funding proposal include the following • Capitalisation of Housing Institutions; • Funding of priority projects; • Capacity enhancement; • Sanitation and other infrastructure grants; • Land acquisition funding.

25. MTEF funding proposals

26. 2010 MTEF allocation • Already in the MTBPS it is made mention that the Department is allocated R1bn in 2012/13 for grant funding;

27. Budget implications of the HS mandate • The non-alignment of all (bulk) infrastructure funding to the national human settlements conditional grant; • Funding “settlements” instead of “housing” projects - places to stay, play and pray; • Urbanisation management (enable it); • Coordination of multiple sector mandates impacting on human settlements (built environment).

28. THANK YOU