Updated Strategic Plan for Housing Sector

1. Updated Strategic Plan 2008/11Presentation toSelect Committee on Public Services21 May 2008

2. STRUCTURE OF THE PRESENTATION • Introductory & Overview – Director-General • Executive environmental scan • Housing Sector priorities • Departmental Programmes – Chief of Operations • Department’s Strategic Objectives & Structure • Programmes’ Purposes and Functions • Planned Activities for 2008/09 • 3. Programmes’ Budget Analysis – Chief Financial Officer

3. Introduction and Overview Director-General: Housing Mr. Itumeleng W. Kotsoane

4. Executive Environmental Scan

5. 7 Key Considerations • Capacity and gearing-up for Delivery Acceleration • address the need to improve the understanding of the policies and its changes by the practitioners across all spheres of Government (in particular Provinces and municipalities) • Secure sector delivery capacity and provide hands-on support to accelerate delivery (LAND/ BUILDING MATERIALS/ CONSTRUCTION) • improvements and streamlining of the planning process for effective delivery • eradication of informal settlements – ensure progressive and incremental realization of the 2014 target through specific annual milestones • Housing must lead in the delivery process for community basic services and infrastructure - design an enabling funding framework that ensures the delivery of complete settlements

6. 2. Priority Projects • explore and adopt alternative approaches to better manage priority housing projects. This must serve to affirm National support but limit exposure. • Delivery progress on Zanemvula and N2 must be closely managed • Ensure progress on the Khutsong project • trouble shooting mechanisms (working smarter) 3. Organisational Development (and integrity) • improvement and uphold governance dictates of the department • build more inclusive approach in carrying out the departmental mandate • build close collaboration between both Provincial and Municipalities

7. 4. Monitoring and Evaluation Mechanism • understanding better the extent and nature of our backlog – (2014 informal settlement eradication target). Define more sharply the extent of the housing demand • increase presence in the Provinces, especially around project tracking • better use of and reporting on the budget and resources across the sector 5. Housing Institutions • Establish and operationalise the Housing Development Agency and the SHReg. Authority • Housing institutions need to account more on the accurate delivery of their mandates

8. 6. Policy • Provide greater clarity on rural and urban housing policy & responses • Enhance and articulate housing development regulations and ensure adherence to minimum norms and standards • finalize all outstanding policy refinements to give effect to delivery • policy development to focus on expediting delivery 7. Communication • improve communication and relations between Provinces and Municipalities • manage public perceptions and communicate progress/ success stories to improve awareness of delivery system. • Show case real time delivery progress to demonstrate progress towards providing access to adequate shelter. • Engage in public discourse on delivery considerations and as far as possible lead with ideas and success stories • Demonstrate appropriateness of innovative and alternative technologies in advancing delivery.

9. Housing Sector Priorities

10. 1. Introduce housing cover for military Veterans of the struggle 3. We develop appropriate legislation to prevent the mushrooming of informal settlements (i.e. improve the regulations) Housing Priorities 2. Interventions in the housing industry and residential property market to curb the spiraling cost of construction input prices - including the cost of material development and supply

11. 4. Provide for housing needs with the use of alternative housing options such as affordable rental stock 5. Develop & adopt a central planning approach to better direct resource allocation, distribution and an overall coordinated response to human settlements Housing Priorities 6. Restructure the funding mechanism(s) and consolidate all housing-related grants and funding streams to improve sustainability

12. 7. In order to deal effectively with the challenges of human settlements, land acquisition be accelerated through a dedicated Housing Development Agency 9. Introduce measures to assist people with building materials to encourage self involvement in the provision of housing needs. This will respond to specific conditions that prevail in rural areas, for example. Housing Priorities 8. Introduce a once-off injection of resources and an extraordinary effort to impact on the housing backlog & poverty

13. Departmental Programmes (within Branches) for 2008/09 Chief of Operations Mr. Joseph M. Leshabane

14. Departmental Strategic Objectives • Accelerating the delivery of housing and integrated sustainable human settlements • Utilizing housing delivery as a catalyst for major job creation and economic growth • Ensuring residential property is accessible to all to alleviate asset- poverty and create wealth

15. Departmental Strategic Objectives • Promoting social cohesion and improving quality of life for all in sustainable integrated human settlements. 5. Main stream alternative technologies and innovative planning for sustainable human settlements

16. NDoH ORGANISATIONAL MACRO STRUCTURE CD: Housing Institutions & Funding Mobilisation Minister: LN. SISULU CD: Strategic Management Director-General Mr IW Kotsoane CD: Transformation CD: Executive Support CD: Communications Mr J Leshabane Chief of Operations CD: Internal Audit, Special Investigations & Risk Management CD: IGR & International Relations CD: Management Information Services Ms Y Mbane (Act) DDG: Corporate Services Mr M Dlabantu DDG: Chief Financial Officer Mr. M Maphisa DDG: Policy & Research Mr K Kabagambe DDG: Delivery Support CD: Human Settlements Planning CD: Corporate Support CD: Policy CD: Financial Services CD: Programme Implementation Support CD: IT & Systems (GITO) CD: Research CD: Housing Finance Equity CD: Rental Housing & CoDHI CD: Human Resources CD: Stakeholder Mobilisation CD: Monitoring & Evaluation CD: Funds Management CD: Legal Services CD: Capacity Development CD: Priority Projects Facilitation

17. PROGRAMME 1:Ministry/ DG’s Office/ COO/ Corporate Services(Pages 31 – 49)

18. PURPOSE The purpose of the programme is to provide strategic leadership, administrative and management support services to the department and promote and facilitate the flow of information between the department and its stakeholders.

19. Programme 1: Administration • Included in Programme 1 are the following key areas of responsibility: • Office of the Executive Authority, • Office of the Accounting Officer, • Branch Corporate Services, and • Office of the Chief of Operations;

20. Sub-Programmes • Executive Support • Chief Directorate Internal Audit, Risk Management and Special Investigations • Human Resources Management & Development • Corporate Support • Legal Services • Information Technologyand systems • Strategic Management • Transformation • International Relations & Inter-governmental Relations • Communication Services • Housing Institutions and Fund Mobilisation • Management Information Services

21. PLANNED ACTIVITIES: 2008/09 • Implement the Department’s International and IGR Programme, with focus on: • Work with Provinces on the implementation of the 2008/9 DORA and Grant Framework • Facilitate the inter-sectoral liaison and co-ordination • Co-ordinate inter-sphere relations through Provincial and Municipal IGR (Minmec) Structures in support of housing development • manage and facilitate international relations in support of housing development: • Bilateral and multi-lateral cooperation/ World Urban Forum • IBSA/ DRC Post Conflict Reconstruction/ Netherlands/ Cuba • World Urban Poor Consultative Forum/ AMCHUD/ UN-Habitat • Cities Alliance/ World Bank/ Knowledge exchanges

22. PLANNED ACTIVITIES: 2008/09 HOUSING INSTITUTIONS/ FUNDING MOBILISATION • Establish the Housing Development Agency • Establish the Social Housing Regulatory Authority • Rationalisation and closure of: • SERVCON • Thubelisha Homes • Social Housing Foundation • PHPT Explore and exploit possible mechanisms to trigger the flow of investments towards human settlement development

23. PLANNED ACTIVITIES: 2008/09 MANAGEMENT INFORMATION SERVICES • Manage the development of innovative operational, control and decision support information systems; • Provide support, training and data quality support services to the Sector • Housing Subsidy System management • Develop a national housing demand data base • Maintain the data contained in the data warehouse • Develop Information products and deliver Knowledge Management services

24. PLANNED ACTIVITIES: 2008/09 COMMUNICATION SERVICES • Develop and manage Public Information and awareness programmes. • Develop and manage production of publications and promotional services/ products • Manage overall communication with stakeholders and interface with/ usage of the media • Implement internal (corporate) communication programme • Facilitate a Sector-wide communication drive

25. PROGRAMME 2: POLICY & RESEARCH BRANCH(Pages 49-57)

26. BRANCH PURPOSE The purpose of the programme is to develop and promote sustainable human settlement and housing policies supported by a responsive research agenda; as well as monitor and assess the implementation, performance and impact of national housing policies and programmes.

27. FUNCTIONS • To ensure an effective human settlement and housing policy framework • To monitor and evaluate the planning, implementation and performance of housing programmes and policy as well as assess the impact thereof • Manage and coordinate responsive research on housing and integrated human settlements

28. SUB-PROGRAMMES The programme comprises of the following areas of responsibility: • POLICY - Develop and promote national human settlements and housing policies • RESEARCH - Manage and coordinate responsive research on housing and integrated human settlements • MONITORING & EVALUATION - Monitor and evaluate the planning, implementation and performance of national housing policies and assess the impact thereof

29. PLANNED ACTIVITIES: 2008/09 POLICY • Publication and promotion of the revised National Housing Code • Policy on insurance cover for subsidised houses • Policy for housing assistance to persons who lost both guardians • Farm worker housing policy - revised • Policy formulation model for provinces and municipalities - disseminated • Provide policy interpretation and implementation advice and assistance to stakeholders to expedite delivery • Conduct stakeholders’ implementation workshops on National Housing Code and Regional Policy Model

30. PLANNED ACTIVITIES: 2008/09 MONITORING AND EVALUATION • Undertake sample audits of housing units constructed • Undertake occupancy audits • Impact studies on specified policies and programmes • Harness quality management monitoring

31. PLANNED ACTIVITIES: 2008/09 RESEARCH • Undertake research on sustainable human settlements priority areas • Supply and demand considerations • Informality, land and tenure • Urban options and policy options • Good practice in implementation • Sector capacity and implications of national & global displacement • Manage and provide research support and co-ordination • Establish a housing research resource nucleus • Disseminate research products • Foster innovation in housing and human settlements • Determine trends in the broader macro and micro economic environment and determine the impact thereof

32. Programme 3: Delivery Support(Pages 58 – 68)

33. BRANCH PURPOSE • Provide implementation and delivery support, build capacity, liaise and communicate with stakeholders and manage intergovernmental and international relations for housing and human settlement programmes

34. STRUCTURE The Branch is comprised of the following sub-programmes: • Rental Housing and Community Driven Housing Initiatives (CoDHI) - (former PHP) • Human Settlements Planning • Programme Implementation Support • Stakeholder Mobilisation • Capacity Development • Priority Projects Facilitation

35. FUNCTIONS • Manage human settlement development planning processes and support the implementation of human settlement and housing development planning frameworks. • Provide support to provinces and municipalities to implement housing and human settlement programmes and projects • Manage sector relations, mobilise and collaborate with sector stakeholders • Develop & secure the implementation capacity of the sector • Manage the implementation of the CoDHI and rental/ social housing programmes and provide regulatory support and oversight over the rental/ social housing and CoDHI sectors. • Manage and facilitate support in the implementation of Priority human settlements Projects of National significance

36. PLANNED ACTIVITIES: 2008/09 RENTAL HOUSING & CoDHI • Develop a pipeline of projects in Provinces for delivery of high output projects - set-up, assessment & support for pipeline of projects (CoDHI and Rental Stock) • Community Residential Units: road shows • National rental Housing strategy road show • Operationalise institutional arrangements and oversight in terms of Rental housing Amendments Act and Social Housing Act • Preparation & establishment of Social Housing Regulatory Authority • Support to Rental Housing Tribunals • CoDHI policy & growth plan road show

37. PLANNED ACTIVITIES: 2008/09 CAPACITY DEVELOPMENT • BNG Specific training programme for officials • BNG awareness and development programme implemented • Guidelines, tools and strategies for the implementation of beneficiary empowerment programmes developed • Beneficiary empowerment/ awareness programme for Special projects • Manage the Housing Scholarship programme • Implementation of Councillor training/ empowerment programme • Develop and implement a Strategy and framework for regulating the sector professional practise

38. PLANNED ACTIVITIES: 2008/09 PROGRAMME IMPLEMENTATION SUPPORT • Facilitate and support the development and implementation of recovery plans to unblock stalled projects • Facilitate and support the development and implementation of informal settlement upgrading projects • Develop an enhanced informal settlement upgrading strategy linked to targets • Provide hands-on implementation support to prioritised provinces and municipalities

39. PLANNED ACTIVITIES: 2008/09 HUMAN SETTLEMENTS PLANNING • Maintenance of the National Programme for Housing Chapters of Integrated Development Plans • Maintenance of Framework for Provincial Multi-year Housing Planning. • Develop a Multi-year National Housing Development Plan • Support Human Settlements Planning in Provinces and Municipalities • Participate in committees and coordinate execution of subsequent tasks, in respect of promoting national sectoral planning alignment.

40. PLANNED ACTIVITIES: 2008/09 STAKEHOLDER LIAISON & MANAGEMENT Partnership projects identified and implemented collaboratively with sector stakeholders National and Provincial Govan Mbeki Awards organised Women in Housing programme implemented to yield targeted outputs through women initiatives Youth in Housing programme implemented inline with National Youth Service model to yield targeted output through service & skills development of young people Sustain sector-wide dialogue (social contract)

41. PLANNED ACTIVITIES: 2008/09 PRIORITY PROJECTS FACILITATION • Support the implementation of Priority Projects: • N2 Gateway Project • Zanemvula Project • Khutsong Resettlement Project • 11 Other Priority projects across RSA • Facilitate IGR implementation/ delivery protocols • Faciltate inter-sphere dialogue to enhance delivery and resolve obstacles • Ensure that required funding is appropriately secured and channeled to expedite delivery

42. Priority Projects • Grassland, Mangaung Local Municipality, Free State • Planned: 6886 houses (5645 BNGs Houses and 1241 credit-linked Houses) • Chief Albert Luthuli,Ekurhuleni- Gauteng • Planned 7793 houses • Klarinet, Mpumalanga • Construction of 12 400 mixed typology (BNG/ Bonded/ Rental)

43. Priority Projects • eMnambithi, KZN • Upgrading of 4894 units in 5 residential areas of Ezakheni, Steadville, Acaciavale, Tugelavale and Nkanyezi • Mokopane ext 20, Limpopo • Construction of 1959 houses completed (962 BNG Houses, 997 credit linked) • Ouboks, Northern Cape • Construction of 2220 BNG Houses

44. Priority Projects • Khutsong – Merafong, North West Province • Project Size: 18 000 BNG Houses, • Amenities Planned: Schools and Business sites • Tenders have been issued for the installation of services. • Land for the relocation of 14 852 stands has been secured. • An application to the Department of Provincial and Local Government has been submitted in an attempt to secure infrastructure funding. • Zanemvula – Nelson Mandela Bay, Eastern Cape • Chatty 1: 349 sites serviced, house construction commences. • Chatty 2: 251 sites serviced, house construction commences. • Chatty 3 & 4: 1 687 sites serviced, house construction commences. • Chatty 5: house construction commences. • Bethelsdorp: 1 211 sites serviced, house construction continues

45. Reflection on Provincial Delivery Readiness and challenges

47. Risks Confronting Provinces • Inability to assemble and secure delivery capacity. Specific responses needed. • Failure to enrol units with the NHBRC for structural warranty cover (as well as the benefit of quality management through progressive inspections) • Bulk services & Infrastructure not always available to support dense/ urban housing • Township establishment processes not optimally activated • Inability to enforce performance of contractors 6. Closure of Trust Accounts (in Municipalities) poses risk of further delivery disruptions

48. Challenges Confronting the Provinces 7. The housing delivery plans reflects weaknesses in respect of a combination of: • unrealistic delivery targets; • cash-flow projections not always linked to actual projects, • projects planned on the basis of untested/ unverified assumptions, • multiple and irregular policy deviations and/or misinterpretations • project plans lacking in bulk infrastructure provision 8. enormous capacity deficiencies arising from organizational attrition (changes in MEC/ HOD) 9. Inadequate capacity to manage the delivery of planned projects and resources vs Equitable Share

49. Programme 4: Housing Development Funding(Pages 69 – 75)

50. CHIEF FINANCIAL OFFICER Purpose: To fund national housing and human settlement development programmes in terms of the Housing Act (1997), provides financial and grant management and manages all matters provided for by the Home Loan and Mortgage Disclosure Act (2000) Functions: • To provide Financial Administration and Supply Chain Management services • To provide financial and grant management services • To ensure that housing finance is available and accessible to all