Housing Delivery Strategy and Budget Plan for Sustainable Settlements

1. DEPARTMENTAL PRESENTATION TO THE PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS (24 MARCH 2015) DIRECTOR- GENERAL: T. ZULU Confidential

2. PURPOSE To present the departments: • Strategic plans for the coming Medium Term Expenditure Framework (MTEF) period and • Annual Performance Plans 2015-16

3. TABLE OF CONTENT • Background • Strategic Plan • Macro Performance Indicators • Strategic Goals by Programme • APP • Background • Delivery Agreements • Budget • Delivery Targets

4. BACKGROUND • The National Development Plan (NDP) places a responsibility on government on the need to fast track the delivery of housing and improving the living conditions of citizens. In response to the Constitutional mandate and the call by the NDP to integrate settlements and develop in strategic and well located areas, the department has prioritized the delivery of houses using different tenure types with special emphasis on integration and densification. • The 2014 -2019 Medium Term Strategic Framework prioritizes the delivery 1,5 million housing opportunities in partnership with the private sector, all stakeholders and communities.

5. BACKGROUND • The human settlements development programme will in the next five years (2015-2020) be a catalyst for transforming the national space economy in order to achieve measurable results by 2030. • The delivery approach will focus on mega projects of integrated housing mix to cater for different incomes levels and needs, These will include houses for: • the indigent, gap housing, rental units, social housing and serviced stands and • will ensure integration of different income groups, • different races and lead to the building of a South Africa that truly belongs to all.

6. STRATEGIC PLANS

7. MACRO PERFROMAMNCE INDICATORS

8. MACRO PERFROMAMNCE INDICATORS

9. STRATEGIC GOALS BY PROGRAMMES

10. STRATEGIC GOALS BY PROGRAMMES

11. STRATEGIC GOALS BY PROGRAMMES

12. STRATEGIC GOALS BY PROGRAMMES

13. ANNUAL PERFORMANCE PLANS

14. 4. DELIVERY AGREEMENT (OUTCOME 8) Background Objective of Outcome 8 is to manage a comprehensive human settlements programme with multiple projects that covers extensive geographical spread aiming to improve the workings of the space economy. This will be achieved by: • Providing poor households with adequate housing in better living environments; • Supporting the development of functionally and equitable residential property market; • Improving the institutional capacity & coordination for better spatial targeting Confidential

15. DELIVERY AGREEMENT (OUTCOME 8) • Housing delivery: In terms of the Outcome 8 MTSF for Human Settlements, a total number of 1,5 million housing opportunities will be delivered over the MTSF period of five years. The 1,5 million housing opportunities will consist of: • 750 000 households in informal settlements upgraded; • 563 000 individual units for subsidy market; • 110 000 loans (70 000 FLISP plus 40 000 DFIs) • 27 000 social housing; • 10 000 CRU; • 35 000 affordable rental • Other targets • 2 200 informal settlements will be assessed, • 10 000 ha of well-located land will be rezoned and released for new developments targeting poor and lower to middle income households, Confidential

16. DELIVERY AGREEMENT (OUTCOME 8) • 50 catalytic projects will be implemented, 563 000 title deeds will be issued to new homeowners in the subsidy market; and • The title deeds backlog of 900 000 will be eradicated. • For purposes of the Delivery Agreements, the targets of each Provincial Department in terms of the various objectives will have to be formally agreed and approved by Human Settlements MINMEC; • Provincial Departments need to revise their business plans to focus on the priorities as set out in the MTSF; • 30% Houses delivered by Women • 1956 House per Province for Women delivery • 10% Houses delivered by Youth (The Youth Brigade Programme) • 5000 Housing Units for Military Vets • Hosting Provincial Social Contracts Forums • Hosting of Provincial Govan Mbeki Awards Confidential

21. BUDGET

22. Allocations over the 2015 MTEF period

23. Additional allocations (Consolidated)

24. Reduction in Allocation (Consolidated)

25. Reduction in Allocation (Consolidated) cont.

26. Net impact on the Department’s budget over the MTEF period It must be noted that the R 4 billion reduction on the baseline includes an amount of R1 6 billion in respect of the Sanitation function.

27. Allocation over MTEF by Programme

28. Allocation over MTEF by Branch

29. Allocation over MTEF by economic classification

30. Human Settlements Development Grant

31. Urban Settlements Development Grant

32. Municipal Human Settlements Capacity Grant

33. 2015-16 DELIVERY TARGETS

34. Summary of Consolidated Planned Provincial Delivery per Programme

35. Planned Provincial Delivery in Mining Towns

36. Planned Provincial Delivery in Mining Towns * Rectification

41. 4.2 MTSF ACTIONS • The Departments Structure is being revised to match strategy. • The department is now reporting on 25 Strategic Objectives and 59 high-level Targets • Programme 1 • 10 Objectives • 15 Targets • Programme 2 • 9 Strategic objectives • 21 Targets • Programme 3 • 3 Strategic objectives • 14 Targets • Programme 4 • 3 Strategic objectives • 9 Targets • The sharper focus from the current 163 targets to 55 will bring much needed efficiencies in performance and Monitoring. • A much extensive process will be undertaken during the Budgeting period to align budgets against strategy. Confidential

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