Presentation to the Select Committee on Education and Recreation

1. Presentation to the Select Committeeon Education and Recreation Report on the Ministerial Committee for the Review of Student Housing at South African Universities Department of Higher Education and Training 05 September 2012 Cape Town, Parliament

2. Introduction Introduction • Minister appointed a Ministerial committee to investigate student accommodation after he took up office in 2009 and visited a number of universities. • The visits confirmed there were serious challenges in the provision of both on and off-campus accommodation. • Lack of adequate and affordable student housing forces students to rent sub-standard accommodation off-campus. • Between 2005 and 2010, universities reported a total of 39 incidents of student housing-related protests with most of these protests in historically black institutions. • The Minister appointed Prof Rensburg to lead the Committee to assess the provision of student accommodation in South African universities.

3. Purpose of the Report • To establish the scale of the student accommodation challenges. • To offer a well-motivated and justifiable differentiated framework for redressing this student accommodation quandary through establishing a typology of need based on relative access to private sector led provision and historical disadvantage. • To provide government with a medium to long term financing framework within a fifteen year timeframe, in order to intervene in this situation. • To provide minimum norms and standards for student accommodation, whether on or off campus.

4. Research Methodology • Comprehensive questionnaire constructed and distributed to Vice Chancellors of the 22 contact universities. • Review of related literature. • Site visits covering on and off-campus accommodation across 49 university campuses. • Interviewing key stakeholders. • Data compilation, review and analysis.

5. Literature Review - Summary of Findings • Bulk of student housing research – North America, Europe and Australia. • Paucity of student housing research in developing countries. • Most students live at home; but demand for student housing outstrips supply. • Public funding of higher education is under increasing pressure everywhere. • Student housing models range from traditional university residences to public-private partnerships (PPPs), city-university partnerships and the re-use of old buildings. • Trends emphasize ‘living-learning’ communities, more mixed and flexible housing forms, safety and security, sustainable student housing developments, and greater consideration for the diversity of student housing needs. • No legislation in SA (national, provincial or local) pertaining to the accommodation and/or housing in South Africa

6. Student Data

7. Student Data

8. Student Data

9. Student Data NB: Only 5% of 1st year students at SA Universities housed in residence

10. Photos - Site Visits

11. Photos - Site Visits

12. Photos - Site Visits

13. Photos of Site Visits

14. Off campus accommodation at University of Venda

15. Site Visit Findings “No student interviewed during the site visits admitted to being hungry, but several recounted stories about fellow students who were starving, stories which were then confirmed by student leaders and student support staff. Given the stigma of poverty, the Committee is of the view that these stories are merely the tip of the iceberg that is student hunger. It is an indictment on all who live in this country that some of the greatest talents of the next generation, and many of its future leaders, are being suffered to live and learn under such appalling conditions. It is not only that the country’s potential is being squandered; it is literally being starved. This state of affairs cannot be permitted to continue, and it should be the first and most urgent duty of every stakeholder in higher education to ensure that it does not.” (p.52)

16. Analysis of Findings • Pervading and recurring motif - the implacable dialectic between the need to keep residence fees as low as possible and the need to provide student housing and accommodation which meets minimum acceptable standards. • The mal-distribution of NSFAS funding for student accommodation at a number of universities is the direct cause of much suffering and hardship to students at those institutions. Many students experience hunger on a daily basis. • 71 % of students housed in residences received some form of financial assistance.

17. Analysis of Findings • Highest percentage of students housed in residences originated from Kwazulu-Natal, followed by the Eastern Cape, and thirdly from SADC region. • Campuses are evenly split between those with dining halls and those that are self-catering, poor nutrition and student hunger are prevalent at all universities. • Residence staff ratios vary between 1:19 and 1:535, with staff remuneration and training varying just as widely. • The lack of sufficient and adequate on-campus housing is resulting in overcrowding, jeopardising students’ academic endeavours and creating significant health and safety risks.

18. Analysis of Findings • Based on university estimates, value of the current national maintenance and refurbishment backlog is R2.5 billion. • If existing residence stock is to be modernised to render the residences ‘fit-for-purpose’, then a further R1.9 billion is required. • In addition to above costs, it is estimated that the current residence bed shortage is approximately 195 815.In these terms, the cost of overcoming this shortage over a period of ten years is estimated at R82.4 billion, or R109.6 billion over fifteen years. (Estimate based on cost of R240 000 per bed; and 50% and 80% targets of student beds on specific campuses, see table 3).

19. Analysis of Findings • The private sector is a significant contributor and stakeholder in the provision of accommodation to university students in South Africa, as is the case internationally. • It is estimated that the private sector provided for 10% of the estimated full- time contact enrolment at universities in 2010. • Condition of leased buildings can only be described as squalid. Private student housing in the country is completely unregulated and leads to exploitation of students.

20. Table 1 − Bed Shortage & Number of Beds Needed

22. Table 2 − Weighted Average Residence Fee, 2008-2010

23. Table 3 − Net Surplus/Deficit for Residence System 2008-2010

24. Recommendations • Type 1 campusesare those where off-campus accommodation is unsuitable and/or unavailable (e.g. UL Turfloop, UV, UWC, UFH Alice). Located in impoverished areas with a severe shortage of suitable accommodation; such campuses ideally need to be able to accommodate 80% of total student enrolment in on-campus accommodation in the short to medium timeframe, and 100% in the long term. • Type 2 campusesare those where limited off-campus accommodation is available and is suitable (e.g. RU, USB). Such campuses ideally should be able to accommodate a minimum of 50% of total student enrolment in on-campus accommodation.

25. Recommendations • Type 3 campuses are those where limited off-campus accommodation is available and is suitable, and where land for on-campus accommodation is restricted (e.g. UJ, Wits, UCT). On these campuses, ideally, PPP student accommodation villages, involving partnership between universities, metropolitan councils and private providers, should be encouraged and supported in the short to medium term.

26. Recommendations 1. Residence admission and allocations policies: • Comprehensive policy to be rigorously implemented managed and monitored. • Strategies and mechanisms need to be developed to increase and support access to university residences by poor and working class students. • Strategies and mechanisms to allow all new first year contact students in need of accommodation to be allocated to a residence for their first year. 2. Minimum standards for student housing and accommodation: • Minimum standards for the accommodation and housing of students must be developed and made applicable to all providers of student housing, both public and private.

27. Recommendations 3. Private student housing and accommodation: • Given the dire shortage of suitable student accommodation, public-private partnerships in the form of student villages, particularly in the metropolitan areas, should be explored further. • Mechanisms designed to foster and enhance cooperation between all stakeholders involved in the provision of student housing and accommodation need to be established, under the auspices of the DHET. 4. Residence management and administration: • Residence staff to resident student ratios should not normally exceed 1:150 in the case of wardens, house parents, residence managers or the equivalent, and 1:100 in the case of student sub-wardens or the equivalent.

28. Recommendations • All universities should establish a board, council or similar body which represents all residences and oversees residence life. • Improving the professionalism, compensation and training of university housing staff is an urgent priority. • All complaints and allegations of maladministration, corruption and nepotism must be rigorously investigated by the DHET and strict action taken against offenders. 5. Role of residences in the academic project • Research needs to be conducted to explore ways in which the social and cultural milieu in residence systems impacts upon the ability of black working class students to succeed academically.

29. Recommendations • Research needs to be conducted to explore the broad and complex relationship between student housing and academic success. • Residences must become an integral part of the academic project and promoted as sites of academic endeavour. 6. Financing of student housing and funding of student accommodation • The complete separation of the residence budget and management accounts from the university budget and management accounts is needed. • Residence management accounts should be submitted on a quarterly basis to the University Council, and annual financial reporting must be standardised.

30. Recommendations • A ‘wealth tax’ mechanism should be explored as a way of increasing residence access to disadvantaged students. • An investigation into universities’ use of reserves for priorities such as student housing should be undertaken. • An annual fixed national NSFAS residence fee for student board and lodging which meets minimum standards (including a minimum of two balanced meals per day) should be set at R30 500 for 2011. • Residences must become an integral part of the academic project and promoted as sites of academic endeavour. • Once the state has indicated what proportion of this target it is able to fund, the private sector should be invited to meet the remaining bed capacity target, in accord with minimum standards for the provision of student housing.

31. Recommendations • Residence bed capacities to accommodate 80% of full time contact student enrolment on campuses where off-campus accommodation is unsuitable and/or unavailable, and 50% of full time contact student enrolment on campuses where limited off-campus accommodation is available and is suitable, should be targeted. 7. Condition of residence infrastructure • All universities are to conduct a professional quantity surveyor-led assessment of their residence infrastructure. • National minimum standards and service level agreement guidelines for the maintenance and refurbishment of residence infrastructure should be established.

32. Recommendations • Modular residence construction methodologies should be fully researched. 8. Future planning • All universities should develop a multi-year strategic plan (including a financial plan) for residence maintenance and refurbishment. • Those who are accountable for university student housing should be part of the planning process. The Chief Housing Officer should report directly to a member of the senior management team of the university.

33. DHET’s Response to the Report • Funding available for university infrastructure over 3 years amounts to R6 billion across a number of categories. • Student housing allocation is R1.690 billion. • Historically disadvantaged institutions/campuses allocation is R1.443 billion (85%) • Historically advantaged institutions allocation is R247.3 million (15%). • Approach is to provide funding for new residences and for refurbishments of old residences. • Low residency fees by Category A universities limits their ability to access private funding. • Government has to provide funding for infrastructure to ensure that residency fees remain affordable to poor and middle class students.

34. DHET’s Response to the Report The DHET has engaged with the PIC/DBSA to offer preferential rates and viable options to universities: • Category A: Universities with limited on and off campus accommodation and a relatively weak balance sheet (off balance sheet lending). • Category B: Universities with limited on and off campus accommodation and a better balance sheet but pose low risk for funders (can cede part of their investments). • Category C: Universities with a good balance sheet and can access funding at preferential rates (in some cases they cede their investment as security).

35. DHET’s Response to the Report • The Department hosted a workshop with all universities on 17 August 2012. • Recommendations were presented and different options around financing explored (PIC, DBSA and ABSA). • Universities invited to present their comments on or before 21 September 2012. • Intention is to Gazette the Minimum Norms and Standards for the sector. • Establishment of a departmental project management Unit and building capacity within DHET . • Compel universities to make provision for maintenance on an ongoing basis for infrastructure. • Systematic mapping of the system.

36. Priority Infrastructure Categories/Projects • Student Housing • Historically Disadvantaged Institutions’ backlogs • Disability funding for increased access • Engineering • Cooperative projects • Health Sciences • Life and Physical Sciences • Well Founded Laboratories • Teacher Education • African Languages, Humanities and Social Sciences • ICT • Project management at universities

37. Thank You