“Presentation to the Joint Budget Committee

IMPLICATIONS OF THE MTBPS TO THE COMPREHENSIVE INTEGRATED HUMAN SETTLEMENT PLAN FOR HOUSING

DELIVERY IN THE NEXT DECADE01 November 2004

Overview

Since 1994 the Housing Programme:– Reformed the pre-1994 State housing programme

and the institutional structure– Has delivered 1,6 million housing opportunities– Affected the lives of some 6 million people– Invested R 29,5 billion in the country and

transferred R25bm worth of housing assests– Culminated in a sophisticated delivery system,

addressing a range of needs

OverviewThe programme also had unintended consequences and encountered a number of challenges. These are:

– Peripheral development– Poor quality products and settlements– Lack of adequate participation by community– No or limited secondary low income housing market– Corruption and mal-administration– Slowdown in delivery– Under spending of budgets– Limited and decreasing private sector participation– Increasing backlog owing to more new households

and urbanisation pressures– Growth of informal settlements

Overview

Government priorities for the new term:– Rooting out corruption & maladministration– Fast tracking delivery– Capacity building to deliver at scale– Mitigating social crime– Diversification of the housing programme-

densification of residential areas

The new housing plan for the next decade

Outcomes of a comprehensive consultation process:

– The White Paper strategic thrusts remain valid– A need to shift to a demand driven approach– Emphasis to be on quality of the product and the

environment– We need to strengthen the social contract– We need to maximise the “spin offs” (multiplier

effects) of the programme

The new housing plan for the next decade

• The primary goal: The creation of sustainable human settlements

• The secondary goals:– Quality living environments– A needs oriented approach– Building a non racial integrated society– Unblock delivery constraints– Build capacity– Rooting out corruption and mal-adminitration

The policy interventions

1. QUALITY LIVING ENVIRONMENTS• An informal settlement upgrading policy and

programme (approved)• A programme to facilitate social and economic

amenity provision• Enhance appropriate housing technology

The policy interventions

2. A NEEDS ORIENTED APPROACH• Finalise the Social Housing Policy- building

institutional capacity and regulate• Develop a rental housing programme• Develop a programme for densification• Develop a farm worker housing policy• Diversify tenure options

The policy interventions

3. BUILDING AN INTEGRATED NON-RACIAL SOCIETY

• Housing land policy• A framework for mun. housing sector plans• Enhance densification of residential areas

The policy interventions

4. UNBLOCKING DELIVERY CONSTRAINTS

• Housing finance access- subsidy bands and increase subsidy scope

• Operational budgets (opscap)• Unblocking teams• Streamlines progress payments• Accreditation

The policy interventions

5. CAPACITY BUILDING• Training and education• Job creation• Emerging contractor support and focus• Letsema mobilisation

The policy interventions

6. ROOTING OUT CORRUPTION AND MAL- ADMINISTRATION

• Investigative unit to be established• Housing support units

Current programme enhancements

• Enhance the variation policy• Introduce environmentally efficient housing

norms and standards• Extend the procurement regime• Review the PHP programme• An accelerated land and services

programme

• Revise the Hostels upgrading programme• Extent the NHBRC warranty cover to all

programmes• Subsidy database cleanup

Current programme enhancements

Current programme enhancements

Integration initiatives• Cooperation and alignment• Bi-lateral conventions• Budget alignment• Multi year planning

Current programme enhancementsAn appropriate Institutional Architecture • Public partnerships• Housing Institutions refocus• Clear roles and responsibilities of role players• Special needs unit in Department• Adequate systems support• Partnership in cooperative governance- National,

provincial and Local Government joint teams for implementation

Current programme enhancements

A functional model • For provinces and municipalities:

To administer housing development and participate in the National Housing Programmes

Current programme enhancements

Housing Legislation– A Social Housing Act– Revise rental legislation – Finalise HLMDA regulations– Amendments to Housing Act, 1997– Review provincial legislation and

implementation of national housing legislation

Current programme enhancements

Research agenda – Beneficiary needs (backlog) and define adequate

housing – Research unintended consequences of policy– Research into better alignment of decision-making– Research traditional housing enhancement – Research sustainability of housing interventions– Build a research network

Programme enhancements

Monitoring and information systems –• Develop a comprehensive

monitoring, information and reporting system

Programme enhancements

Communication:– Establish a comprehensive

communication strategy– Develop a comprehensive targeted

consumer education programme

Current programme enhancements

An enabling environment• System support• Support unit• Gender unit• Social housing unit• Informal settlement upgrading unit• PHP unit

BUDGET IMPLICATIONS•Housing Subsidy Grant: R1,5 billion additional funds above baseline.•R100 million for 2006/07 •The remainder for 2007/08•Housing allocation reaching R16.6 billion over the next three years•No additional funds for 2005/06•Reprioritization required to implement new plan•Confirmation for prioritization of new plan for eg. MIG funding aligned to new plan

THANK YOU FOR YOUR ATTENTION