KwaZuluNatal Department of Housing

1
KwaZulu-Natal Department of Housing

• Presentation to the
• Select Committee on Finance

2
Vision

• The Vision of the KwaZulu-Natal Department of
  Housing is -
• Enabling all people to house themselves by
  engaging various institutions and stakeholders in
  the provision of a conducive and enabling
  environment

3
Mission

• The mission of the department is -
• To effectively and efficiently manage the
  implementation of National and Provincial Housing
  Programmes in partnership with the relevant role
  players, by developing sustainable human
  settlements characterized by affordable and
  adequate shelter for qualifying citizens in
  KwaZulu-Natal

4
Key Focus Areas

• The key focus areas of the department are -
• Rationalisation and restructuring of the
  Department
• Eradication of slums in KwaZulu-Natal
• Strengthening governance and service delivery
• Ensuring job creation through housing delivery
• Accelerating housing delivery in rural areas
• Accelerating the hostel redevelopment and upgrade
  programme
• Completion of all blocked projects by 2007
• Creating rental / social housing opportunities
• Building the capacity of Housing stakeholders
• Promotion of homeownership
• Provision of housing for vulnerable groups
  including those affected by HIV/AIDS.

5
Review of 2005/06

• Key achievements by the department during 2005/06
  were -
• Houses built 24,925
• Serviced sites completed 19,373
• Sites transferred 11,322
• Emergency housing provided 8,658

6
1st Quarter Expenditure
7
1st Quarter Expenditure

• Planning and Development
• The slower than expected rate of expenditure is
  as a result of delays in the drafting of
  Municipal Housing Plans and the late delivery of
  IT Network Infrastructure
• Project Management
• Delays in the receipt of claims and the accuracy
  of claims from Developers has hampered
  expenditure in this programme.
• The department has seen the expenditure incurred
  during July and August reverse this trend of
  under expenditure

8
1st Quarter Expenditure

• Property Management
• A large portion of the budget of this programme
  relates to the upgrading of rental units and
  hostels, the contracts with the various
  municipalities are currently being finalised and
  this will resolve the under expenditure incurred
  during the 1st quarter
• The department has terminated the services of the
  service provider for the EEDBS, resulting in
  delays in the programme implementation
• The department has commenced the process of
  performing this task internally

9
Conditional Grant Expenditure
10
Conditional Grant Expenditure

• As mentioned above the department has experienced
  challenges with regard to expenditure on the
  Integrated Housing and Human Settlement
  Development Grant including -
• That Developers have not provided timely and
  accurate expenditure claims
• This issue has been addressed with the developers
  and during July and August there has been a
  marked improvement in the value of claims received

11
Capacity Constraints

• The department is in the process of finalising
  its revised organisational structure
• The restructuring process resulted in a high
  proportion of Project Monitor posts becoming
  vacant
• The department identified this as a key challenge
  to service delivery and fast tracked the
  appointment of Project Monitors in order to
  prevent adverse effects on service delivery
• Interviews have been concluded and the new
  appointees will start during September and
  October 2006

12
Capacity Constraints

• Not all Municipal IDPs include Housing Sector
  Plan for the municipality
• A programme is being rolled out to assist the
  municipalities to develop these plans
• Impact of the new Rates Act
• The Act provides for an exemption for houses
  valued at under R15 000 (the old subsidy amount)
• Current houses built by the department cost
  between R36 000 and R41 000 excluding land and
  bulk services costs

13
Capacity Constraints

• Lack of dedicated Housing capacity in
  Municipalities
• An agreement has been entered into with the
  Flemish Government to provide seed funding for
  the creation of housing components in 25
  Municipalities (linked to Project Consolidate)
• Determination of Housing Demand
• Department has developed a Housing Demand
  Database to assist Municipalities to
  scientifically analyse their housing demands

14
Service Level Agreements

• The department does not enter into Service Level
  Agreements with Developers
• For each Housing Development a separate Legal
  Contract is entered into
• The department uses a Tripartite agreement
  between the department, the Developer and the
  Implementing Agent to ensure that the department
  is able to retain control over all aspects of the
  housing delivery cycle
• The contract sets out timeframes and the
  expectations of the department with regard to the
  development

15
Thank you