Presentation to the Port Folio Committee for Human Settlements

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Presentation to the Port Folio Committee for
Human Settlements
The Allocation Strategy for housing
opportunities created through the National
Housing Programmes
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Background

• In response to allegations of mal-administration
  and fraud regarding the allocation of housing
  subsidy financed properties, the Previous
  Minister of Housing approved the Allocation
  Strategy in 2008
• Investigations also revealed the need for a
  National Housing Needs Register from which
  selection of beneficiaries could be undertaken

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Salient features of the Strategy

• The allocation process has been depoliticised
• A structured process for the selection and
  approval of applications was introduced
• Priority criteria have been introduced
• The Strategy provides procedures for each
  National Housing Programme and
• It is directly linked to the National housing
  Needs register.

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Salient features of the Strategy

• Qualification Criteria
• The entry level and general criteria of the
  subsidy scheme still apply
• Programme specific criteria also still apply
• Priority criteria were introduced
• The Aged and disabled
• Families and
• Women headed households with children.

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Salient features of the Strategy

• Persons registered on the National Housing Needs
  Register do not automatically qualify for
  subsidies
• Persons on the Register will be invited to
  complete application forms when housing
  opportunities become available
• All applications so received will be subject to
  verification and a structured evaluation and
  approval process.

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Application of the Strategy

• It applies to housing opportunities created
  through
• Integrated Residential Development Programme
  (IRDP) and
• The Upgrading of Informal Settlements programme

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Application of the Strategy

• The Strategy will not apply to
• The individual Subsidy programmes
• Consolidation subsidies
• PHP subsidies and
• Rental housing programmes.

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Institutional Architecture

• The Strategy entails the following role players
• The Allocation Committee (AC)
• The Provincial Departments of Human
  Settlements/Housing
• The Municipality
• The National Department
• The Project Manager and
• External auditors, where applicable.

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Institutional Architecture

• The Allocation Committee must
• As a minimum comprise the following public sector
  officials
• Two members from the Office of the City Manager
  of the Municipality
• Two members representing the Provincial
  Department of Human Settlements/Housing and
• May not include any political office bearer.

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Allocation process

• When houses/opportunities become available
• The municipality will determine the selection
  criteria to apply for the specific project-
  region, priority status etc.
• It will request the province to obtain a list of
  potential beneficiaries from the National Needs
  Register that meet the set criteria
• Once received, the AC will verify the list and
  request the project manager to contact the
  persons on the list and invite them to apply for
  housing subsidies
• The PM will liaise with each applicant in
  collecting all the documents and the selection of
  stands and houses
• Application documents may not be older that three
  months
• The applications received will be assessed by the
  AC against the list of invitees and qualification
  criteria
• The applications are then submitted to the MEC
  for approval.

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Allocation process

• Once the application is approved it will be
  recorded on the NHSDB
• The conditional purchase agreement between the
  developer and beneficiary will take effect
• The property will be transferred to the
  beneficiary
• The National Housing Needs Register will be
  adjusted to reflect this status

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Thank you