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Department of Housing

Department of Housing. PRESENTATION TO THE SELECT COMMITTEE ON PUBLIC SERVICES ON CHAPTER 9: HOUSING TRENDS IN INTERGOVERNMENTAL FINANCES: 2000/01 TO 2006/07 05 October 2004. Index. Introduction Policy Framework Policy developments Housing Conditional Grants

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Department of Housing

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  1. Department of Housing PRESENTATION TO THE SELECT COMMITTEE ON PUBLIC SERVICES ON CHAPTER 9: HOUSING TRENDS IN INTERGOVERNMENTAL FINANCES: 2000/01 TO 2006/07 05 October 2004

  2. Index • Introduction • Policy Framework • Policy developments • Housing Conditional Grants • Service delivery and expenditure trends • Challenges facing Housing • The new housing plan – key elements • Conclusion

  3. Introduction • The report deals mainly with policy and trends relating to two housing conditional grants namely • Housing Subsidy Grant • Human Settlement Redevelopment Grant • Acknowledge achievements, shortcomings and challenges • Deals with service delivery and spending trends concentrating on the period since 2000

  4. Policy Framework • Our overall policy framework is determined by the White Paper on a new Housing Policy and Strategy for South Africa, 1994

  5. Policy Framework continued • Institutional arrangements • Constitution makes housing a concurrent schedule 4A function between National and Provincial government • No explicit role for local government • Housing Act defines the National and Provincial roles • Provides for accreditation of local government • Provides for assignment of housing administration to local government that are accredited

  6. Policy Frameworks continued • Institutional arrangements • National government is responsible for establishing and maintaining a sustainable national housing development process through • Developing of policy and strategy • Sets goals for delivery • Monitoring and evaluation of housing sector performance • Establishment of national funding framework for housing development, and • Allocation of the funds to provincial government

  7. Policy Frameworks continued • Provincial government promote, coordinate, implement housing development programmes within the national policy framework • May develop provincial housing policy which must be consistent with national policy • Administer housing subsidy and projects approval processes • Monitor implementation of projects by local governments

  8. Policy Developments • Housing environment since 1994 white paper • More than 1,6m houses have been built or under construction and 2,4m subsidies approved • Early focus was on quantity at the expense of quality housing to address housing needs and backlogs • Focus was on development of policies and legislative instruments • Introduction of the Housing subsidy scheme consisting of seven subsidy instruments • Special subsidy dispensation for the disabled • Procurement regime compliant to constitution

  9. Policy Developments continued • Recent policy developments • Housing Finance - Contributions required from Government, the financial sector, and ultimate beneficiaries • Extension of the NHBRC Housing Warranty Scheme to all subsidy instruments • Increased emphasis on monitoring of policy impact, expenditure and delivery • More emphasis on oversight of housing institutions • Promoting of alternative and traditional/indigenous building technologies • Social Housing policy to promote development and maintenance of sustainable Social Housing Institutions

  10. Housing Conditional grants • Housing administers two conditional grants: • Housing Subsidy grant: finances housing development under the national housing programme • Human Settlement Redevelopment Grant: funds projects which are meant to improve the quality of urban environment by addressing the legacy of dysfunctionalities caused by Apartheid settlements

  11. Housing Subsidy Grant • Past performance • By March 2004 – more than 1,6m houses have been built or under construction and 2,4m subsidies approved • Subsidies approved in the last 4 years average 305 000 p.a. allowing for lead times to improve spending trends • Housing units delivered in the last 4 years average 182 782 p.a. and expected to accelerate as projects reach full implementation stage. • Approvals include projects to be implemented in future

  12. Housing Subsidy Grant (cont.) • To date the programme has achieved a 51 % to 49 % split in allocation between female and male headed households • Between 1994 and March 2004 programme has made an investment and creation of assets of R27,6bn by into low income communities

  13. Allocation • Provincial allocations are currently made according to a formula determined by MinMec and approved by Cabinet • The formula provides for weighting in order of priority of the elements as defined below • A = HN(50%) + HH (30%) + P (20%), where • A = Allocation • HN = Housing Need • HH = Households earning less than R3 500 per month (affordability indicator) • P = Population

  14. Allocation • Housing need used in the formula is defined on a weighted formula that takes into account the following : • HN = HL(1.25) + SE(1.2) + SBY(1.0) + TC( 1.0) +FR(0.5) WHERE • HN = Housing Need • HL = Homeless People • SE = Shacks Elsewhere • SBY = Shacks In Backyards • TC = Tents and Caravans • FR = Flat/rooms on shared property

  15. Spending trends

  16. Spending trends

  17. Spending trends

  18. Spending trends

  19. Spending trends

  20. Delevery trends

  21. Delivery trends

  22. Human Settlement Redevelopment Grant • The human settlement redevelopment grant (HSRD) funds projects aimed at improving the quality of the environment and correcting dysfunctionalities in urban communities, by: • Identifying and addressing the nature and underlying reasons for the dysfunctionalities; • Providing a source of funding to correct dysfunctionalities and serving as a catalyst to gear other funding and resources; • Co-ordinating sources of development funding to ensure co-ordinated development; and • Adding value to projects that can be funded through other processes and programmes.

  23. Spending trends

  24. Current challenges • Current challenges facing the housing programme   • Lack of private sector investment and resource constraints • 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 • Need for interventions to deal with emergency situations resulting from natural disasters and other incidents - Grootboom case.

  25. Current challenges cont. • Growth in number and size of informal settlements • Building capacity of all spheres of government to meet challenges of accelerated quality housing delivery especially local government • Accelerating transformation of the apartheid settlement patterns and dysfunctionalities caused by that system • Fraud, corruption and mal administration

  26. Key issues emanating from report • Some positive • Recognition of the alignment of key strategic shifts with the rights based approached namely • Housing policy emphasis on coordination and policy alignment • Improving of quality of end product and urban environment • Increasing the delivery rate, and • increased impact of the People Housing Process • Recognition that the housing policy minimum norms and standards for permanent residential structures generally exceed suggested international norms

  27. Key issues emanating from report • Some negatives • Raises concerns about lack of emphasis to ensure participation of citizens and civil society in housing related discussion making process • Other shortcomings are raised relating to • Insufficient delivery to meet backlog of adequate housing • Lack of integrated development leading to unsustainable settlement • insufficient programme to deal with specific housing needs • Absence of a rapid national land release programme • Absence of an informal settlement upgrading programme suitable for needs of the poor.

  28. Policy response • Recently Housing has developed a comprehensive plan which addresses the issues that have been identified as challenges and the negative areas identified in the report • It provides of stakeholders and provides for a broad range of choices to beneficiaries • Deals with whole communities at a time – Informal Settlement upgrading programme and Emergency Housing programme • Introduces a phased development approach

  29. Policy response • Provides for the fast tracking of the development of the housing Chapter of the IDPs • Provides for increased Capacity at all levels of government and enhances monitoring and evaluation processes • Provides for the harnessing of private sector recourses and creates a conducive environment for increased participation in the programme

  30. Thank You

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