Accreditation of Municipalities for Housing Programmes

1. Accreditation of Municipalities to administer national and provincial Housing programmes 02 DECEMBER 2009

2. OUTLINE • DEFINITIONS • RATIONALE • APPROACH • INSTITUTIONAL AND FUNDING ARRANGEMENTS • IMPLEMENTATION PROGRESS • CONCLUSION

3. Key Definitions • Accreditation: the recognition by an authority of the fact that an entity has met certain criteria and standards for purposes of fulfilling a particular function. • Delegation is not a permanent transfer of functions. It does not include the transfer of the authority role, nor does it entitle the entity to which a function has been delegated to legislate on the matter or to direct funding from the fiscus. Delegation entails the exercise of a function on behalf of the delegating authority (as an “agent”). The ultimate authority still vest in the authority that delegates (who can revoke the delegation) • Assignment is a transfer of a function, which includes the transfer of the authority role – and this includes the right to receive directly the funds and the assets necessary to perform the function.

4. Framework For The Accreditation Of Municipalities Rationale for accreditation Overall approach Institutional arrangements Funding arrangements Systems and capacity arrangements Ongoing reporting and monitoring requirements, and Implementation arrangements

5. Rationale

6. The national government and provincial governments mustassign to a municipality, by agreement and subject to any conditions, the administration of a matter listed in Part A of Schedule 4 or Part A of Schedule 5 which necessarily relates to local government, if (a) that matter would most effectively be administered locally; and (b) the municipality has the capacity to administer it. (The Constitution of the RSA, 1996; Section 156(4).

7. The new human settlements plan envisages the accreditation of municipalities: A framework is to be established to address various policy, constitutional and legislative aspects in order to enable municipalities to manage the full range of housing instruments within their areas of jurisdiction. (Breaking New Ground, Part B, Section 5.2 “Expanding the role of local government”)

8. Coordinated development (horizontal integration) Municipalities a logical site for the effective alignment of inter-departmental and inter-governmental funding streams. Increased opportunities for the application of innovative planning principles Accelerated delivery (vertical integration) The efficiencies associated with devolving delivery authority to the local level should improve the rate of delivery • Constitution • s99: assignment from national government • s126: assignment from provincial government • s238: delegation • s156(4) the obligation to assign certain functions (including housing) to municipal level • Housing Act, 1997, section 10 • Provisions relating to the ongoing accountability of the provincial accounting officer are problematic • Guidelines relating to assignment and delegation under the Municipal Systems Act

9. Principles of accreditation: • Logical application of roles and functional assignments (local alignment & integration) • Authority and accountability must accompany responsibility • Accreditation follows capacity • Funding arrangements must be consistent, certain and beyond interrogation • Funding follows function • Efficiency (enhanced govt. delivery capabilities) • Co-operative governance

10. Overall Approach

11. Three levels of Accreditation

12. …Three levels of Accreditation

13. Note: Accreditation excludes functions that municipalities must perform statutorily: • Housing Act, • Mun. Systems and • Mun. Structure

14. PART 4: LOCAL GOVERNMENT (ss 9-10B) 9 Functions of municipalities (1) Every municipality must, as part of the municipality's process of integrated development planning, take all reasonable and necessary steps within the framework of national and provincial housing legislation and policy to- (a) ensure that- (i) the inhabitants of its area of jurisdiction have access to adequate housing on a progressive basis; (ii) conditions not conducive to the health and safety of the inhabitants of its area of jurisdiction are prevented or removed; (iii) services in respect of water, sanitation, electricity, roads, stormwater drainage and transport are provided in a manner which is economically efficient; (b) set housing delivery goals in respect of its area of jurisdiction; (c) identify and designate land for housing development; (d) create and maintain a public environment conducive to housing development which is financially and socially viable; (e) promote the resolution of conflicts arising in the housing development process; (f) initiate plan, co-ordinate, facilitate, promote and enable appropriate housing development in its area of jurisdiction; (g) provide bulk engineering services, and revenue generating services in so far as such services are not provided by specialist utility suppliers; and (h) plan and manage land use and development.

15. Metropolitan Munics Cape Town Ekurhuleni EThekwini Joburg Nelson Mandela Tshwane Local Municipalities Buffalo City Emalahleni (Witbank) Rustenburg Mangaung Polokwane Sol Plaatjie !Khara Hais (Upington) Priority Municipalities District Municipalities: Piloting in Northern Cape

16. Roles & Institutional arrangements Capacitation Accessing Municipal Accreditation Implementation & performance MoU Municipality Applies for Accreditation (by invitation/ Targeted/ Other) Initiation and Implementation (commitment) support Pre Accreditation Capacitation Negotiated Munic Plan Level 1 Accreditation & Delegation Compliance Certificate Level (2 or 3) Accreditation & delegation Compliance Certificate Assignment of Housing Function to Municipality

17. FUNDING

18. Subsidised housing programmes & projects Subsidised housing programmes & projects Subsidised housing programmes & projects Subsidised housing projects Institutional & Funding Flow Arrangements Reporting Reporting National Department of Housing Oversight MTEF municipal funding allocation direct from national budget Funding direct from national budget MTEF municipal funding allocation via Province Subsidy database Provincial Department of Housing Ongoing, regular reporting Oversight, project approval & funding admin Oversight & funding admin Oversight Oversight Funding Computerised subsidy applications submitted to the provincial department for registration and approval Application for approval Level Two Accredited Municipality Non-accredited Municipality (status quo) Level One Accredited Municipality Level Three Accredited Municipality Programmes & projects identified, approved, and funded directly by municipality Programmes & projects identified, prioritised & approved by municipality Programmes and projects identified and prioritised by municipality Projects identified by municipality and submitted to Province for approval, and funding

19. National accreditation development support funding • Administered Nationally • Provided capacity support to priority municipalities & Provinces • Funded over MTEF 2005/06 – 2008/09 (R195m) • Installation and connection of the HSS • Technical support [HR, systems and equipment acquisition] • Training and development of housing staff • Support on housing planning, implementation through the development of the housing chapter of the IDP’s

20. Implementation Progress

21. Implementation Progress • All priority municipalities have council resolution in place • MoUs concluded between PHDs & Munics • Due diligence processes adhered to • Understanding risks • Outlining capacity requirements • Budget planning and delivery planning • Level one Accreditation Business plans approved and costed • NMM, BCM, EThekwini, Emalahleni and Polokwane granted level one accreditation

22. CAPACITY AND COMPLIANCE ASSESSMENTS Previous audits problematic due to; • Inconsistent approach • Limitation on the AG’s mandate and expertise June 2009 - Established the Capacity and Compliance Assessment Panel • Maintain standard methodology of assessment • Serve and accessible to all provinces • Reporting and accountability

23. Accreditation Framework • Is there a municipal-wide human settlements strategy/ plan…? • Is there capacity (optimally assembled)? • What gaps are there? • Sustainability (consistent/ robust/ credible) • Systems • Procedures • Policies (consistent with National Policy) • Funding assembly - including own contribution

24. Assessments Progress Northern Cape (DM Model) • Sol Plaatje • Frances Baard • Pixley ka Seme Western Cape • City of Cape Town Eastern Cape • Nelson Mandela • Buffalo City

25. Implementation Challenges • Provincial position on the implementation of accreditation – slow or non implementation • Sustainability of capacity invested • Reluctance to accredit - created uncertainty • Need clear position/commitment of Provinces for the programme to success NB: only MEC can approve accreditation according to the Housing Act)

26. CONCLUSION

27. IMMEDIATE CONSIDERATIONS • Capacity Enhancement and Support Funding beyond 2007/ 2008…? To support/Fund Level Two BP • Growing demand for Accreditation (non prioritised) • PHDs readiness to process Accreditation • Extending Accreditation to more municipalities? • Performance of Municipalities…(Current state of LG) • Non Accreditation/Assignment – IGR Dispute (Constitution and Housing Act) • Calls for Acceleration of Accreditation/Assignment

28. CONCLUSION • Continue Capacity enhancement support funding • Metropolitan municipalities must be prioritized for level one and two accreditation (joint LG and Housing MINMEC:JAN 2009) • Finalization of level one accreditation • Encourage the use of the Implementation Protocol to fast track housing delivery and human settlements development

29. THANK YOU