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DEPARTMENT OF HOUSING. PRESENTATION TO THE PORTFOLIO COMMITTEE FOR HOUSING BUDGET 2002/03 TO 2004/05. Presentation Index. Aim and Vision of the Department Strategic overview Housing environment since 1994 white paper Challenges facing Housing Linkages to Government Policy Priorities

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department of housing

DEPARTMENT OF HOUSING

PRESENTATION TO THE PORTFOLIO COMMITTEE FOR HOUSING

BUDGET 2002/03 TO 2004/05

presentation index
Presentation Index
  • Aim and Vision of the Department
  • Strategic overview

Housing environment since 1994 white paper

Challenges facing Housing

Linkages to Government Policy Priorities

Housing Policy Programme

Planned Legislative Programme

  • Budget overview
  • Conclusion
department of housing1
DEPARTMENT OF HOUSING
  • 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.
  • Vision: A nation housed in sustainable human settlements
strategic overview
STRATEGIC OVERVIEW
  • Housing environment since 1994 white paper
    • 1.2 m Housing opportunities created, more than 5 m poor people housed
    • Focus on quantity, rather than quality housing
    • Address housing needs and backlogs
    • Development of policies and legislative instruments
strategic overview1
STRATEGIC OVERVIEW
  • Current challenges facing the housing programme  
    • Effect of changing demographics and resource constraints on housing delivery
    • Effect of Grootboom judgement and recent land invasions
    • Moving towards medium density housing as a priorityand integrated development
    • Creating higher quality housing and living environments
    • Reducing dependency and promoting a culture of savings
    • Interventions regarding the effects of natural disasters on housing
strategic overview2
STRATEGIC OVERVIEW
  • Current policy trends in housing programmes.
  • Promoting new and innovative building technologies
  • Housing Finance Challenges - Contributions required from Government, the financial sector, the NGO sector and ultimate beneficiaries
  • Extension of the Housing Warranty Scheme through the NHBRC to beneficiaries
  • More emphasis on monitoring of policy impact, expenditure and delivery
  • More emphasis of oversight on housing institutions
government priorities
Government Priorities

Housing-related priorities of National Government include:

  • Urban renewal
  • Integrated Sustainable Rural Development
  • The eradication of poverty
  • Transformation and Black Economic Empowerment
  • Engendering a culture of saving
housing policy programme
Housing Policy programme
  • First national multi-year housing development plan
  • Policy on the variation of the subsidy amount
  • Emergency relief housing policy
  • Medium density housing

- Social housing initiative

- Rental housing

  • Environmentally sound housing policy and accommodating the needs of special groups
  • Housing savings scheme
legislative programme
Legislative Programme
  • Disestablishment of South African Housing Trust Limited Bill. This Bill provides for the Trust=s disestablishment and deregistration and further makes provision for the company=s assets and liabilities on disestablishment
  • Community Reinvestment (Housing) Bill. The Bill has been drafted and is on its way to the Cabinet. The Bill is the second piece of legislation in the Department=s community reinvestment programme and follows on the Home Loan and Mortgage Disclosure Act No. 63 of 2000.
legislative programme1
Legislative Programme
  • Housing Amendment Billamends certain provisions of the Housing Act, 1997, the Housing Consumers Protection Measures Act, 1998 and the Rental Housing Act, 1999. The amendments are necessary to deal with practical problems arising out of the implementation of the Acts.
  • Social Housing Billwill fill a gap in the housing delivery process by enabling poor people to access rental housing stock at affordable rentals while at the same time providing incentives to developers to become involved in the rental housing programme. The Bill will also boost the Government=s medium density emphasis in housing.
legislative programme2
Legislative Programme
  • Prevention of Illegal Eviction from and Unlawful Occupation of Land Act No. 19 of 1998 requires amendment, inter alia, because the courts and other institutions have experienced difficulty interpreting certain provisions of the Act.
  • Regulations
    • Regulations under the Housing Consumers Protection Measures Act, 1998 relating to the subsidy only sector;
    • Regulations under the Home Loan and Mortgage Disclosure Act. 2000; and
    • Regulations under the yet to be promulgated Community Reinvestment Act.
budget overview
BUDGET OVERVIEW
  • PROGRAMME 2002/03 2003/04 2004/05 R’000 R’000 R’000
  • Administration 54 717 38 740 45 914
  • Policy Planning 14 243 13 898 14 992
  • Programme
  • Management 216 274 125 701 153 517
  • Housing
  • Performance 177 917 308 527 297 168
  • Communication 13 175 10 177 11 768
  • HousingFund 3 768 474 4 166 698 4 375 232
  • Total 4 244 800 4 663 741 4 898 591
  • % Growth 11% 9% 5%
budget overview1
BUDGET OVERVIEW
  • Programme 1: Administration
  • Purpose of this Programme is to provide administrative and management support services to the Department
  • The key activities under this include the following
    • Provision of Strategic Financial Management Services
    • Provision of Human Resources Management Services
    • Provision of General Corporate Support Services
    • Provision of strategic support services for the Minister and Accounting Officer
programme 1 cont
Programme 1 cont.
  • Changes in the MTEF
    • A real average decline over the MTEF at 4 %
    • Decline mainly as aresult of reduction in Equipment Capital, Prof. And Spec.services and transfer payment to PSETA
    • Increase from 2001/02 to 2002/03 at 3.88 % mainly as a result of reduction in Prof. and Special services
      • Reduced development costs of the Debtors system
      • Completion of the preparation of the Housing Funds statements and the transformation tenders
      • Completion of auditing and related costs for the Housing Funds statements for past years
      • Housing Debtors Management system maintenance
      • Reprioritization within the department
budget overview2
BUDGET OVERVIEW
  • Programme 2: Policy Planning
  • Purpose of this Programme is to ensure an sound national housing policy framework
  • The key activities under this include the following
    • Analysis of national housing policy and strategy
    • Housing framework legislation
    • Human settlement policy and integration
  • Changes in the MTEF
    • Effect of restructuring, function shift and reprioritization resulted in increase of 49 % between 2001/02 and 2002/03
    • 2003/04 and 2004/05 increase mainly for framework legislation projects
    • Fairly stable over the MTEF period
budget overview3
BUDGET OVERVIEW
  • Programme 3: Programme Management
  • Purpose of this Programme is to manage national housing programmes
  • The key activities under this include the following
    • Managing of the housing subsidy scheme
    • Capacity building
    • Managing of special housing and human settlement programmes
programme 3 cont
Programme 3 cont.
  • Changes in the MTEF
    • Mainly dominated by transfer payments: 90%
    • Major Reduction from 2001/02 on the Job Summit Project from R150m to R75m and no more funding after 2002/03
    • Major increase conditional grant Human Settlement Redevelopment Programme
      • From 2001/02 :R39m; 2002/03: R100m; 2003/04: R109m and 2004/05 R116m
    • Fairly stable over the MTEF period
    • Current under spending on grant being resolved
    • Experiencing staffing capacity problems
budget overview4
BUDGET OVERVIEW
  • The Budgeted amount for 2002/2005 MTEF

2002/03 2003/04 2004/05

R’000 R’000

Eastern Cape 10 000 11 000 11 660

Free State 7 500 8 500 9 010

Gauteng 23 000 21 000 22 260

Kwazulu-Natal 25 000 26 000 27 560

Mpumalanga 6 000 7 000 7 420

Northern Cape 2 500 3 000 3 180

Northern Province 11 000 11 000 11 660

North West 6 000 8 000 8 480

Western Cape 13 000 13 500 14 310

Total 104 000 109 000 115 540

Growth % 4% 5% 6%

budget overview5
BUDGET OVERVIEW
  • Programme 4: Housing Performance
  • Programme is to monitor and assess the impact of housing delivery, manage housing information, and support housing institutions
  • The key activities under this include the following
    • Monitoring of the implementation of national housing policy
    • Managing information for housing and human settlement
    • Secretarial Support services for policy support
programme 4 cont
Programme 4 cont.
  • Changes in the MTEF
    • Mainly transfer payments: 82%
    • Increase from 2001/02 to 2002/03 by 1.5 %
      • Mainly as a result of increases in personnel of 38 %, admin costs at 29 % and loans redemption and interest costs of 13.12%
    • SAHT liabilities allocation to be transferred to National Treasury upon of finalization of the disestablishment of the SAHT
    • Decreases over the same period relate to reductions in allocation to SERVCON at 7.8% and the grant provided for SHF in the current year
    • Otherwise Fairly stable over MTEF period
budget overview6
BUDGET OVERVIEW
  • Programme 5: Communication
  • Purpose of this Programme is to facilitate and promote the free flow of information between the Department and its stakeholders
  • The key activities under this include the following
    • Implementation of communication strategies
    • Public relations services
    • Provincial, media and local liaison
programme 5 cont
Programme 5 cont.
  • Changes in the MTEF
    • Currently experiencing major staffing capacity constraints and it is planned to increase staffing levels to reach 85 % by the end of the first quarter of 2002/03
    • Education campaigns and national communication strategy
    • Decreases by 6.5 % from 2001/02 to 2002/03 and then stabilizes over the next two years of the MTEF period
    • Various ministerial programmes
      • National Housing Awards etc.
    • Staffing problems being resolved
budget overview7
BUDGET OVERVIEW
  • Programme 6: Housing Fund
    • Purpose of this Programme is to manage the funding of national housing programmes
    • Consist mainly of Transfer payments to provinces in terms of DoRA as conditional grants
    • Allocation of funds to provinces is based on a new formula which introduces urban bias and will be phased in throughout the MTEF.
    • Need of each province as measured by the housing backlog takes into account factors such as homelessness, shack dwelling, caravans, tents, backrooms, rooms in flats.
    • A poverty indicator measured by households earning less than R3,500 in each province.
    • Indicator as measured by each province’s share of total population.
budget overview8
BUDGET OVERVIEW
  • The Budgeted amount for 2002/2005 MTEF

2002/03 2003/04 2004/05

R’000 R’000

Eastern Cape 571 485 627 253 581 876

Free State 283 097 316 064 374 679

Gauteng 801 940 896 830 1 085 699

Kwazulu-Natal 708 759 778 263 727 186

Mpumalanga 242 038 268 228 288 030

Northern Cape 75 809 83 807 86 900

Northern Province 381 767 417 204 359 305

North West 302 001 337 769 409 400

Western Cape 372 778 412 480 433 357

Total 3 739 674 4 137 898 4 346 432

conclusion
Conclusion
  • There are many challenges facing delivery of housing
    • Capacity problems hence a steady increase in personnel costs
    • Effect of other Departments on housing delivery
    • Further interdepartmental coordination on infrastructure capital grants: DPLG, Land Affairs, Education, etc.
  • Key Success Factors include
    • Development of Capacity at local government level
    • Improving Coordination at Provincial and Local government levels
    • Reducing underexpenditure
    • Improving access to housing finance and
    • Enhancement of monitoring processes