DEPARTMENT OF HOUSING

1. DEPARTMENT OF HOUSING PRESENTATION TO THE PORTFOLIO COMMITTEE ON HOUSING 03 MAY 2007 STRATEGIC PLAN & BUDGET 2007/08 TO 2009/10

2. STRUCTURE OF THE PRESENTATION • Aim, Vision and Mission of the Department • Our Values • Our Mandates • Housing Legislation and Regulations • Our Policy Framework • Strategic overview and policy shifts • Linkages to Government Policy Priorities • Specific Priorities within the National Housing Programme • Key Challenges and Trends • Budget Overview • Programmes, Recent Performance and Deliverables for the MTEF (2007/10) and for Financial year 2007/08 • Conclusion

3. AIM, VISION AND MISSION AIM The aim of the Department of Housing is to determine, finance, promote, coordinate, communicate and monitor policy in respect of housing and human settlement development Vision A nation housed in sustainable human settlements Mission To establish and facilitate a sustainable process that provides equitable access to adequate housing within the context of affordability of housing, services, and access to amenities and economic opportunities

4. OUR VALUES • Our values, based on the constitution, are: • Human dignity, equality, advancement of human rights and freedoms; • Non-racialism and non-sexism; • Supremacy of the constitution and the rule of law; • Accountability, responsiveness and openness

5. OUR MANDATE • SA CONSTITUTION • Section 26: Access to adequate housing a basic human right; Govt. to ensure environment conducive to the progressive realisation of the right • Schedule 4: National and Provincial Governments have concurrent legislative competence • Botshabelo Housing Accord (1994) & White Paper • Reconstruction and Development Programme (RDP) – sets out framework and principles for sustainable development

6. HOUSING LEGISLATION AND REGULATIONS Housing development programme continues to operate in the following legislative framework: • Housing Act No.107 of 1997 (as amended); • Prevention of Illegal Eviction from and Unlawful Occupation of Land Act No. 19 of 1998; • Housing Consumers Protection Measures Act 95 of 1998; • Rental Housing Act 50 of 1999; and • Home Loan Mortgage Disclosure Act 63 of 2000

7. REGULATIONS AND GUIDELINES • National Housing Code • National Norms and Standards For Permanent Residential Structures • Guidelines For Human Settlement Planning And Design (“Red Book”). • Guidelines For Environmentally Efficient Low Cost Housing

8. OUR POLICY FRAMEWORK • Our overall policy framework continues to be as directed by: • The White Paper on a new housing policy and strategy for South Africa, 1994 that provides the foundation; and • The Comprehensive Plan for the Creation of Sustainable Human Settlements of September 2004 that provides the vision and strategies for the next 10 years

9. LINKAGES TO GOVERNMENT PRIORITIES The vision of the Departmental Strategic plan is informed by the following national policies, programmes and initiatives: • The White Paper on a New Housing Policy and Strategy 1994 which remains the basis for housing policy and program; • The Comprehensive Plan for the creation of sustainable Human Settlements • The Urban Renewal Program; • The Integrated Sustainable Rural Development Strategy; • The Expanded Public Works Program; • The program to develop entrepreneurship among previously disadvantaged communities; • The Presidency’s National Spatial Development Perspective; • Government Wide Monitoring and Evaluation System; • The Strategic Development Initiatives (SDIs); • Provincial development frameworks; • Integrated Development Plans (Chapters on Housing)

10. SPECIFIC PRIORITIES WITHIN THE NATIONAL HOUSING PROGRAMME • Accelerating the delivery of housing as a key strategy for poverty alleviation • Utilizing provision of housing as a major job creation strategy • Ensuring property can be accessed by all as an asset for wealth creation and empowerment. • Leveraging growth in the economy • Promoting social cohesion and improving quality of life for the poor. • Support the functioning of the entire residential property market to reduce duality within the sector by breaking the barriers between the first economy residential property boom and the second economy slump. • Utilizing housing as an instrument for the development of sustainable human settlements in support to spatial re-structuring.

11. TRENDS AND CHALLENGES • Domestic inflation continued to escalate despite the fact thatoil and petrol prices were declining during 2006. • CPIX used for inflation targeting, increased form 3, 9% in May 2006 to 5% in December 2006. • Producer Price inflation picked at 10% in November before declining slightly to 9,3% in December 2006

12. TRENDS AND CHALLENGES CONT. • Escalating material prices increased the cost of delivering housing: • reducing the value of subsidies • pushing developers out of government subsidised market as the subsidy is only adjusted once annually • In response to inflation, interest rate was increased by 200 bases points from 10.5% to 12, 5% in December 2006

13. TRENDS AND CHALLENGES CONT. • High interest rates reduced home loans affordability • House prices continued to escalate at above 10% thereby adding pressure to housing affordability. • This in turn exerts pressure forgovernment to reshape its policy for housing assistance • The scarcity of suitable serviced land continues to push price escalation for land above 15% adding to housing affordability problems.

14. TRENDS AND CHALLENGES CONT. • As the implementation in government infrastructure projects is expected to intensify: • shortage of material are expected to add pressure on production costs of housing development, while • Competition for limited skills will force low costs housing development to be neglected by big contractors.

15. Budget Overview

16. Budget Overview

17. Budget Overview • Additional funding were approved for the following: • Capacity requirements - Comprehensive Plan for Human Settlement Development • 2007/08 - R2 million • 2008/09 - R3 million • 2009/10 - R5 million • Integrated Housing and Human Settlement Development • 2007/08 - - • 2008/09 - R731,460,000 • 2009/10 - R768,540,000 • National Housing Lead Project: N2 Gateway (Western Cape) • 2007/08 - R200 million • 2008/09 - R300 million • 2009/10 - R400 million • National Housing Lead Project: Zanemvula (Eastern Cape) • 2007/08 - R100 million • 2008/09 - R100 million • 2009/10 - R120 million

18. Budget Overview

19. Budget Overview

20. Allocation of funds in respect of Strategic Priorities / Measurable objectives • Programme 1: Administration – R116,419,000 • Provide strategic leadership, administrative and management support services to the department. • Programme 2: Housing Policy Research and Planning – R89,979,000 • Develop and manage sound national human settlement and housing policies supported by a responsive research agenda, monitor and assess the implementation, performance and impact of national housing policies and programmes and provide integrated business information.

21. Allocation of funds in respect of Strategic Priorities / Measurable objectives • Programme 3: Housing Implementation Support – R147,926,000 • Provide implementation and delivery support, build capacity and liaise with stakeholders and Government Institutions for housing and human settlement programmes, and promote and facilitate the flow of information between the department and its stakeholders. • Programme 4: Housing Development Finance – R8,523,284,0000 • Fund national housing and human settlement development programmes in terms of the Housing Act (1997), provide financial, grant and housing institutions management, and manage all matters provided for by the Home Loan and Mortgage Disclosure Act (2000).

22. PROGRAMMES, RECENT PERFORMANCE AND DELIVERABLES FOR THE MTEF (2007/10) AND FINANCIAL YEAR 2007/08.

23. PROGRAMME 1: ADMINISTRATION • Purpose is to provide strategic leadership and administrative and management support services to the department. Promote and facilitate the flow of information between the department and its stakeholders.

24. PROGRAMME 1: ADMINISTRATION Programme Structure: The programme is made up of the following sub programmes: Corporate Support HRD, Transformation, Employee Wellbeing HR Admin, Performance Management, LR and Payroll Legal Services Internal Audit and Special Investigations Office of the DG, Strategic Planning and DoH Secretariat External Communication Specialist Unit Ministerial Support

25. International Relations Purpose: • To support the realisation of the Department of Housing’s mandate through actively engaging in international multilateral and bilateral dialogue with regard to housing and human settlement development • To facilitate engagement in international multilateral and bilateral partnerships to help South Africa achieve its Housing mandate through joint projects, and co-operation in terms of provision of scarce resources and skills transfer, and research • To support South Africa’s Foreign Policy objectives with regard to Africa through establishing partnerships with African countries on human settlement development and housing in line with South Africa’s foreign policy and NEPAD • To manage and monitor new and existing international initiatives and agreements

26. International Relations Achievements 2006/7 • Cities Alliance (co-chaired by UN-Habitat and World Bank) - Department joined the Cities Alliance in January 2006, participated in first CG meeting in December 2006 - The “Cities without Slums” initiative is aimed helping our cities to eradicate informal settlements - Several cities are already enjoying the benefits, eg Johannesburg, Ekurhuleni, Ethekwini. • Conclusion of MoU with Democratic Republic of Congo in February 2006, implementation delayed pending outcome of democratic elections in the DRC • Conclusion of MoU during Ministerial visit to India in April 2006 • Participation in World Urban Forum in Vancouver in June 2006 - Consensus that human settlement development must be a global priority not only in terms of poverty alleviation but also as a security priority - Understanding that developing and developed countries should engage in partnerships to address problems as opposed to donor-recipient relationships • Ministerial visit to China in September 2006 and initiation of discussions on concluding an MoU • IBSA (India Brazil South Africa Dialogue Forum) Summit in Brazil in September 2006 - Department of Housing held discussions on furthering trilateral co-operation in the field of Housing and Human Settlement Development, however, India and Brazil have thus far failed to conclude an agreement thus making progress slow • Cuba ongoing highly successful co-operation programme, to be reviewed in 2007 - Cuban technical advisors are involved in more than 228 PHP projects in 8 provinces. - 36 614 housing units completed with Cuban assistance, 885 communities and 324 NGO’s members trained in technical and building skills by Cuban experts

27. International Relations Priorities for 2007-10 Bilateral Relations: • Maintain existing and establish new partnerships with donor countries and their agencies, in particular: EU, Netherlands, Canada, Denmark, US, Germany • Maintain existing and establish new partnerships with countries of the so-called South, in particular: China, India, Brazil, Cuba Multilateral Relations: • Maintain and strengthen engagements within UN – Habitat, Cities Alliance, IBSA Africa: • Develop co-operation with SADC members in the field of housing development and investigate the possibility of establishing a SADC Committee on housing and human settlement development • Support the work of the AMCHUD Secretariat • Support the post-conflict reconstruction in the DRC and Sudan with regard to housing delivery

28. International Relations Priorities for 2007/8 Concrete Projects: • Conclude MoU with China • Renew MoU with Cuba • Implement MoU with DRC • Continued engagement with Multilateral Agencies, incl. UN Habitat, Cities Alliance • engage with UN Special Rapporteur on Adequate Housing for South Africa’s Country Report (possible visit in 2007) • Continued engagement with AMCHUD • Continued engagement within IBSA • Maintain and Expand relations with donor countries and agencies • MINMEC Task Team for a Comparative Study of Asian Countries’ Experiences in Housing delivery models and Housing Finance

29. DIRECTORATE: STRATEGIC PLANNING Purpose: To Manage the development and implementation of the Departmental strategic and performance plans.

30. Structure • Planning Unit:To develop and manage the strategic and operational planning framework so as to provide impetus to the strategic intent of the Department. • Performance monitoring Unit: To develop and manage the corporate performance management framework aimed at assessing the performance of business units against the strategic plan of the Department

31. Achievements 2006/07 • One Annual report produced, circulated and presented to Parliament. • Departmental Updated strategic and performance plans consolidated and presented to Parliament. • Four quarterly and evaluation reports produced and submitted to the Accounting Officer. • Developed and operationalised Departmental functional strategic planning and reporting portals.

32. PLANNED ACTIVITIES 07/08 • Facilitate the Development of updated Departmental Strategic and Annual Performance plans 2007/10. • Coordinate the drafting of Development of Departmental Annual report 2006/07. • Submit Departmental Annual and Quarterly performance reports to the Accounting Officer. • Submit Departmental Annual and quarterly performance evaluation reports to the Accounting Officer • Update and maintain Departmental functional strategic planning and reporting portals.

33. CHIEF DIRECTORATE CORPORATE SUPPORT PURPOSE To manage Corporate Support functions of the Department.

34. STRATEGIC OBJECTIVES • Manage and Implementation of registry services • Management of switchboard and reception services • Management and enforcement of OHSA in the Department • Rendering of secretariat and administrative support to policy and corporate decision making structures. • Promotion of the energy efficiency requirements in the Department • Management of building facilities • Management and co-ordination of physical security functions • Management and co-ordination of Personnel and Information security functions

35. ACHIEVEMENTS 2006/07 • - Functional Desktop Management and Support solution • - Network Management and Performance Plan • Upgraded switchboard and reception area. • Successfully Deployed Identity Management • - All major functions co-ordinated successfully • Reviewed and approved security policy • Establishment of Emergency plan • Implemented document classification system • Coordinated and serviced 112 meetings of both policy and corporate decision making structures.

36. PLANNED ACTIVITIES 2007/08 • Centralized filling system • Development of Departmental Policy and Procedures according to NIA and National Archives • Enforcement of OHSA in the Department • Promotion of energy efficiency in the Department • Refurbishment of 1st floor of Govan Mbeki House • Review Security Operational Procedures • Conduct Threat and Risk Assessment • Conduct physical security awareness sessions • Conduct Emergency/Disaster awareness sessions • Co-ordinate protection services during departmental events • Manage the vetting process of officials dealing with classified information. • Co-coordinating and rendering of secretariat support to all policy and corporate decision making structures. • Manage the process of security checks of service providers • Conduct document security awareness session

37. CHIEF DIRECTORATE: HUMAN RESOURCE MANAGEMENT PURPOSE To manage and provide strategic human resources management, organisation and human resources development, Labour Relations, talent management and job evaluation.

38. STRATEGIC OBJECTIVES 1. To manage and co-ordinate strategic human resource management and support required by the Department 2. To manage and co-ordinate programmes and services which promote sound human capital management processes within the Department 3. To manage and co-ordinate organisational design, work study and Job Evaluation, HR Planning, HR Development and skills Development within the Department of Housing 4. To manage and co-ordinate sound Labour Relations within the Department of Housing

39. PLANNED ACTIVITIES FOR 2007/08 • Implemented Training Plan • Manage study aid • Place internships • Manage job evaluation and organisational design. • Manage and administer the Performance Management System in the Department • Implement and administer Conditions of Service • Manage grievances in the Department • Manage disciplinary cases within the Department • Render secretariat support to the Departmental Bargaining Chamber (DBC) • Develop and review HR Policies • Manage recruitment and selection process within the Department

40. ACHIEVEMENTS 2006/07 - Appointed 1% of interns based on filled posts in the department - Implemented learner ship programme • Approved Job Evaluation Policy • 95% of posts on establishment filled • Implemented conditions of service as determined by DPSA • Implemented training on labour relations • Rendered secretariat services to the DBC • Department Performance System managed ( levels 1-12) • SMS PMDS managed and submitted to Minister for approval • Posts on of DDG on approved macro structure Job Evaluated. • Posts in Office of the DG and Minister Jon Evaluated

41. CHIEF DIRECTORATE: TRANSFORMATION PURPOSE • To develop and manage transformation process in compliance with National Policy Framework and International Human Rights Instruments directives.

42. STRATEGIC OBJECTIVES • Develop and manage Batho Pele Service Delivery Improvement policies, strategies and plans, and Employment Equity and Change Management policies, strategies and plans. • To develop and manage the mainstreaming of Transformation Special Programmes and Employee Health and Wellness Programme.

43. PLANNED ACTIVITIES FOR 2007/2008 • Develop a project plan and contract with service provider on Service Delivery Turnaround Plan project. • Identify a Service Delivery Improvement Plan flagship project. • Develop a Service Excellence Campaign strategy. • Conduct an environmental scan on monitoring and evaluation. • Develop and implement a new departmental Employment Equity Plan.

44. PLANNED ACTIVITIES FOR 2007/2008(Continued) • Develop and implement a Change Management Programme. • Develop and implement, Gender, Disability, Youth, Children and Elderly and Women Empowerment strategies and plans. • Review and evaluate the Gender, Disability, Youth, Children and Elderly and Women Empowerment strategies and plans. • Coordinate and review the implementation of Employee Health & Wellness Programme. • Develop, implement and review HIV/AIDS strategy.

45. ACHIEVEMENTS 2006/07 • Employment Equity Plan implemented. • Compiled and submitted Employment Equity Report to Department of Labour • Establishment of a new Employment Equity Forum • Approved terms of reference for a Service Delivery Turnaround Plan. • Evaluation of tenders for the Service Delivery Turnaround Plan tender.

46. ACHIEVEMENTS 2006/07(Continued) • Successful participation in government Annual Calendar of Events; • Celebration of Human Rights Day; • Celebration of the 30th Anniversary of the Youth (June 16) • Celebration of the 50th Anniversary of the Women’s March • Organised departmental volunteers to participate in the Women’s Build Projects • Participated in the celebrations of the Africa Public Service Day; • Successful participation in the ’16 Days of Activism of No Violence Against Women and Children’.

47. ACHIEVEMENTS 2006/07(Continued) • Conducted needs assessment on employee health & wellness. • Implemented Employee Health & Wellness Programme. • Appointed HIV/AIDS Peer Educators

48. ACHIEVEMENTS 2006/07(Continued) • Implemented HIV/AIDS programme. • Sexually Transmitted Infections / Condom Week Awareness; • Nutrition Campaign; • Participation in World AIDS Day; • World TB Day (Tuberculosis); • HIV/ AIDS to employees children; • Health Awareness Month (National Donor); • International Day of Action for Women’s Health; • Candlelight Memorial Day.

49. CHIEF DIRECTORATE LEGAL SERVICES PURPOSE To manage and ensure efficient legal support and legislative functions to the Department.

50. STRATEGIC OBJECTIVE Development and drafting of housing framework legislation and regulations Co-ordination of housing framework legislation and regulations Monitor housing framework legislation and regulations Ensure that housing framework legislation and regulations are properly implemented Render sound legal services to the Department and Ministry Render litigation support to the Department and Ministry Co-ordinate and present legal awareness sessions to the Department Ensure and report on legal compliance within the Department