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SABELO MNGUNI

SABELO MNGUNI. 23 JUNE 2015. Committees Section. OVERVIEW OF HOUSING POLICY AND PROGRAMMES Sabelo Mnguni. Committees Section. PRESENTATION OUTLINE. Ten year review of the housing programme ( 1994 to 2004) - achievements and challenges Outcomes of an extensive consultation process

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SABELO MNGUNI

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  1. SABELO MNGUNI 23 JUNE 2015

  2. Committees Section OVERVIEW OF HOUSING POLICY AND PROGRAMMES Sabelo Mnguni

  3. Committees Section PRESENTATION OUTLINE • Ten year review of the housing programme ( 1994 to 2004) - achievements and challenges • Outcomes of an extensive consultation process • The Goals of the Comprehensive Plan • The various interventions contained in the Plan • The National Housing Code: Background • National Housing Programme interventions

  4. Committees Section THE 2004 REVIEW OF THE TEN YEARS OF HOUSING PROGRAMME • Unintended consequences and challenges: • Peripheral development of low cost housing continued Apartheid settlement patterns • Poor quality product and settlements lacking social and economic infrastructure • Inadequate community participation

  5. Committees Section THE 2004 REVIEW OF THE TEN YEARS OF HOUSING PROGRAMME (CONT….) • Corruption and mal-administration • Slowdown in delivery • Under spending of housing budgets • Limited and decreasing private sector participation • Increasing backlog owing to new household formation and migration pressures • Growing informal settlements

  6. Committees Section OUTCOMES OF A COMPREHENSIVE CONSULTATION PROCESS • Policy principles in the Housing White Paper, 1994 continue to underpin the programme • Need to shift to a demand driven approach • Emphasis on quality of the product and the living environment • Need to strengthen the contract with civil society

  7. Committees Section Goal: “Human Settlements which are economically, socially and environmentally sustainable” (Plan approved by Cabinet 1 September 2004)

  8. Committees Section THE COMPREHENSIVE PLAN, 2004 • FOCUS AREAS: • Creating quality living environments • Needs oriented approach • Building a non-racial, integrated society • Unblocking delivery constraints • Building capacity • Rooting out corruption and mal-administration

  9. Committees Section THE INTERVENTIONS • Creating quality living environments • A need oriented approach • Building and integrated non-racial society • Unblocking delivery constraints • Rooting out corruption and mal-administration • Investigative Unit established and operational – Linked to Special Investigation Unit (SIU) • Upgrading of Housing Subsidy System and Housing Demand Database • National Monitoring and Evaluation Unit

  10. Committees Section THE NATIONAL HOUSING CODE

  11. Committees Section THE NATIONAL HOUSING CODE • Is a required in terms Section 4 of the Housing Act, 1997 • Guides the housing development programme • Contains all approved Housing programmes and suggested guidelines for implementation • The discretionary guide-lines provide maximum flexibility to housing practitioners and decision makers (MECs)

  12. Committees Section THE INTERVENTIONS • Financial Interventions • Social and Rental Interventions • Rural interventions • Incremental Interventions

  13. Committees Section 1. FINANCIAL INTERVENTIONS: INDIVIDUAL SUBSIDY • Programme intended to stimulate the growth of secondary housing market • For individual households who wish to apply for a housing subsidy to purchase an existing house, or • To purchase a vacant stand and enter into a building contract for the construction of a house • the latter subsidy option may only be awarded to households that have entered into loan agreements with a financial institution • Credit linked and non-credit linked

  14. Committees Section 2. FINANCIAL INTERVENTIONS: FINANCE LINKED INDIVIDUAL SUBSIDY PROGRAMME • Income categories - R3500- 15000 • Gap- market families • Is a subsidy towards the reduction of home loan – not for transfer fees and administration fees • Negative relationship (income and subsidy) • Application process: Provincial Dept or municipality Financial institutions • Non-qualifiers – usually R3500-7000 - can buy serviced stands or rental option

  15. Committees Section 3. FINANCIAL INTERVENTIONS: ENHANCED EXTENDED DISCOUNT BENEFIT SCHEME • EEDBS is for transfer of public housing stock to qualying occupants • Seeks to ensure tenure security • Entails discounting of an amount up to the prevailing housing subsidies on the balance of the properties in question

  16. Committees Section 4. FINANCIAL INTERVENTIONS: ACCREDITATION OF MUNICIPALITIES • Programme is aimed at Municipal to administer National Housing Programmes • A progressive process of delegation, evaluated against pre- agreed criteria, leading to eventual assignment of all the functions by formal proclamation • Does not include the power to design housing programmes to be funded from national housing subsidy funds

  17. Committees Section 5. FINANCIAL INTERVENTIONS: OPERATIOINAL CAPITAL BUDGET PROGRAMME • Provide for the application of a certain percentage of voted provincial housing funding allocation to support the implementation of national and provincial housing programmes • For the appointment of external expertise to augment capacity with particular emphasis on, amongst others: • The Informal Settlements Upgrading Programme • Projects that facilitate integrated delivery

  18. Committees Section 6. FINANCIAL INTERVENTIONS: RECTIFICATION OF PRE 1994 AND POST HOUSING STOCK • To facilitate the improvement of certain state financed residential properties • Pre 1994 - poor workmanship, not conforming to norms and standards • Post 1994 – those houses not enrolled with NHBRC • Could be utilize for: • Renovation and/ upgrading • Complete construction of structurally damaged dwellings • Service upgrading

  19. Committees Section 5. FINANCIAL INTERVENTIONS: SOCIAL AND ECONOMIC AMENITIES PROGRAMME • Promote provision of certain basic social & economic amenities in existing townships and new housing areas • Grants to Municipality to fund the following: • Community halls • Parks • Sport fields • Taxi rank facilities • Informal trading areas

  20. Committees Section 6. FINANCIAL INTERVENTIONS: HOUSING CHAPTERS OF THE IDP • To support housing planning as a component of the Integrated Development Plans • Municipal housing needs assessed and defined • Community participation a key component of this process • Local situations of dictate local solutions • Councillors to also be actively involved in the planning process

  21. Committees Section SOCIAL & RENTAL INTERVENTIONS

  22. Committees Section 1. S&R INTERVENTIONS: SOCIAL HOUSING • A rental or co-operative housing option which requires institutionalized management • Contributes to addressing structural, economic, social and spatial dysfunctionalities • Promotes non-racial and integrated society in sustainable human settlements • Social housing projects in designated restructuring zones e.g. economic, spatial and social objectives • Targets income groups R3500 – R7500

  23. Committees Section 2. S&R INTERVENTIONS: INSTITUTIONAL HOUSING • Targeted at housing institutions that provide tenure arrangements alternative to immediate ownership ( e.g. rental, installment sale, share block or co-operative tenure) to subsidy beneficiaries • The programme applies outside of restructuring areas of Social Housing Programme • Government grants to housing institutions to acquire, development and hold affordable rental housing accommodation for minimum of four years • After four years, beneficiaries can take transfer and covert to individual ownership • Targets income groups earning below R3500

  24. Committees Section 3. S&R INTERVENTIONS: COMMUNITY RESIDENTIAL UNITS • Public sector residential accommodation • Facilitate the provision of secure, stable rental tenure for lower income persons • Target persons & households earning below R3500 not able to access formal market private rental & social rental market • Replaces National Hostel Re-development programme • Covers hostels, balance the public stock that cannot be transferred • Cannot be sold or transferred to individual residents anytime

  25. Committees Section RURAL INTERVENTIONS

  26. Committees Section 1. RURAL INTERVENTIONS: FARM RESIDENTIAL PROGRAMME • A flexible approach to the needs of farm residents to provide secure tenure to farm workers • Practicable development options: Provision for rental as well as ownership options • On farm and off-farm development options • Not for seasonal workers • The Intergrated Residential Development Programme (IRDP) is applicable

  27. Committees Section 2. RURAL INTERVENTIONS: INFORMAL LAND RIGHTS • Facilitate project based housing development on communal land tenure secured in terms of the CLARA, 2004 • Not accessible on an individual basis • Housing development for households in rural areas who enjoy functional security of tenure (communal tenure) • Beneficiaries should have uncontested land rights on State or Communal land • Funding for: construction of new houses, repairs or upgrading, or upgrading • Where houses are adequate, subsidy can be used for provision of residential engineering services or other housing purposes

  28. Committees Section INCREMENTAL INTERVENTIONS

  29. Committees Section 1.INCREMENTAL INTERVENTIONS: CONSOLIDATION SUBSIDY • Provides for the completion of houses on serviced sites received through state housing schemes pre 1994 • Applicable to serviced sites that were obtained on the bases of ownership, leasehold and deed of grant, and must be used to construct a house complying to the current norms and standards

  30. Committees Section 2.INCREMENTAL INTERVENTIONS: INFORMAL SETTLEMENT UPGRADING • To upgrade the living conditions of poor people by providing secure tenure and access to basic services and housing • An area wide/community participation • In situ upgrade of informal settlements • Relocation recommended as the last resort – after consideration of numerous factors • Housing construction from a range of options • Community involvement a key requisite

  31. Committees Section 3.INCREMENTAL INTERVENTIONS: EMERGENCY HOUSING ASSISTANCE • Provides temporary housing relief to households in stress as a first phase towards a permanent housing solutions • The programme applies in the following cases: • Second phase disaster intervention • Persons living in dangerous conditions • The totally destitute • To assist households facing the threat of imminent evictions

  32. Committees Section 4.INCREMENTAL INTERVENTIONS: ENHANCED PEOPLE’S HOUSING PROCESS • To assist households to access housing subsidies with technical, financial, logistical and administrative support to build their own houses • Communities take ownership of the process- initiator and driver of process • Houses better suited to the needs of the individuals

  33. Committees Section 5.INCREMENTAL INTERVENTIONS: INEGRATED RESIDENTIAL DEVELOPMENT PROGRAMME • To promote social, spatial and economic integration • To facilitate the development of projects with a variety of land uses and income groups ( subsidy and bonded housing) which make for sustainable communities \ • To improve/simply subsidy beneficiary administration • To facilitate the participation of the private sector in low income housing • Requires integrated planning: race, income, and infrastructure

  34. Committees Section 5.INCREMENTAL INTERVENTIONS: INEGRATED RESIDENTIAL DEVELOPMENT PROGRAMME (Cont……) • A phased approach is as followed: • FIRST PHASE: STAND PROVISION • The creation of the serviced stands takes place during phase 1 • SECOND PHASE: HOUSING CONSILIDATION • Beneficiaries subsidies are approved during the housing consolidation phase only • Housing Consolidation is linked undertaken from the basket of options – FLISP, Project based housing, etc

  35. Committees Section THANK YOU FOR YOUR ATTENTION

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