DEPARTMENT OF HOUSING

1
DEPARTMENT OF HOUSING

• PRESENTATION TO THE SELECT COMMITTEE ON PUBLIC
  SERVICES (NATIONAL COUNCIL OF PROVINCES)
• 18 MAY 2005
• BUDGET 2005/06 TO 2007/08

2
STRUCTURE OF THE PRESENTATION

• Aim, Vision and Mission of the Department
• Our Values
• Our Mandates
• Housing Legislation and Regulations
• Our Policy Framework
• Strategic overview and policy shifts
• Housing Comprehensive Plan
• Key Challenges and Trends
• Linkages to Government Policy Priorities
• Strategic Policy Shifts
• Budget overview and Key activities per Programme
• Conclusion

3
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 Mission T
o establish and facilitate a sustainable process
that provides equitable access to adequate
housing within the context of affordability of
housing, services, and access to amenities and
economic opportunities
4
OUR VALUES

• Our values, based on the constitution, are
• Human dignity, equality, advancement of human
  rights and freedoms
• Non-racialism and non-sexism
• Supremacy of the constitution and the rule of
  law
• Accountability, responsiveness and openness

5
OUR MANDATE

• SA CONSTITUTION
• Section 26 Access to adequate housing a basic
  human right Govt. to ensure environment
  conducive to the progressive realisation of the
  right
• Schedule 4 Housing is a concurrent national and
  provincial legislative function
• Botshabelo Housing Accord (1994) Signed by all
  housing stakeholders
• Reconstruction and Development Programme (RDP)
  set out framework and principles for sustainable
  development

6
HOUSING LEGISLATION
Housing development programme continues to
operate in the following legislative framework

• Housing Act 107 of 1997 (as amended)
• Prevention of Illegal Eviction from and Unlawful
  Occupation of Land Act No. 19 of 1998
• Housing Consumers Protection Measures Act 95 of
  1998
• Rental Housing Act 50 of 1999
• Home Loan Mortgage Disclosure Act 63 of 2000
  (not yet in operation)

7
HOUSING LEGISLATION (CONT.)

• Currently in process
• Housing Amendment Bill ( Being amended to take
  into account all matters related to the new
  plan)
• Social Housing Bill ( Being amended to take into
  account all matters related to the new plan)
• Rental Housing Act 50 of 1999
• Community Reinvestment (Housing) Bill (Held in
  abeyance pending negotiations through the
  Charter)
• Less Formal Township Establishment Amendment Bill.

8
REGULATIONS AND GUIDELINES

• National Housing Code
• Sets out National Housing Policy in detail
  including a user friendly guide
• Contains the detail prescripts pertaining to the
  Housing Subsidy Scheme
• Currently under review/ being overhauled in order
  to be in line with the BNG plan
• National Norms and Standards For Permanent
  Residential Structures
• Sets guidelines on the amounts to be used from
  the subsidies for various aspects of housing
  development (to be reviewed)
• Sets the minimum size of houses

9
REGULATIONS AND GUIDELINES

• Guidelines For Human Settlement Planning And
  Design (Red Book)
• Planning movement networks, transport, open
  space, subdivision layouts, design to reduce
  crime
• Engineering services - storm water, roads, water
  supply, sanitation, solid waste, energy
• Guidelines For Environmentally Efficient Low Cost
  Housing
• Energy and water efficient planning and design
  for low cost housing and
• Urban greening guidelines

10
OUR POLICY FRAMEWORKS

• Our overall policy framework continues to be as
  determined by the White paper on a new housing
  policy and strategy for South Africa, 1994

11
STRATEGIC OVERVIEW

• Comprehensive Plan for Housing Development
• To find a new focus for housing policy for the
  next decade of government, the Department
  embarked on a comprehensive policy consultation
  process, which culminated in the National Housing
  Summit in November 2003.
• The comprehensive Plan adopted by Cabinet in
  September 2004 builds on the 1994 White Paper for
  housing and envisages expanding the mandate of
  the Department to encompass the entire housing
  market.
• The Plan focuses on moving from housing to
  sustainable human settlements.

12
STRATEGIC OVERVIEW

• The nature of demand for government-assisted
  housing in South Africa has changed significantly
  over the last five years
• A 30 increase in the absolute number of
  households over the period 1996 - 2001, where
  only a 10 increase was expected and household
  size has also declined.
• One fifth of urban residents are relative
  newcomers to urban areas (i.e. first generation
  residents) and urban areas are expected to
  continue to grow at a rate of 2.7 per annum.
• Population growth trends however reveal
  significant regional differences and increasing
  spatial concentration in metros secondary
  cities.

13
STRATEGIC OVERVIEW

• Unemployment, on the official definition, leapt
  from 16 in 1995 to 30 in 2002, placing pressure
  on household incomes.
• Housing and service provision has not kept pace
  with household formation, and a range of other
  factors have had negative impact on social
  coherence and crime, particularly contact crimes
  (comprising 40 of all crimes).
• The size of the backlog has increased. There are
  over 1.8 million dwellings which can be
  classified as inadequate housing. The number of
  households living in shacks in informal
  settlements and backyards increased by 26, which
  is far greater than the 11 increase in
  population over the same period.

14
STRATEGIC OVERVIEW

• Key Challenges and Trends.
• Over the last 10 years, state-assisted housing
  investment of some R29.5bn has provided 1.6
  million housing opportunities, often on the urban
  periphery and achieving limited integration.
• Transforming the extremely complicated
  bureaucratic, administrative, financial and
  institutional framework inherited from the
  previous government and building capacity of all
  spheres of government.
• The 1.6 million subsidy-houses that have been
  built have not in most cases become valuable
  assets in the hands of the poor.
• Housing subsidy grants increased from R2,692bn in
  1996/97 to some R4,5bn in 2004/2005 and will
  increase to R5,3bn in 2006/07. These increases in
  housing development funding have largely gone
  towards funding the increases in the quantum of
  the housing subsidy, which is now adjusted
  annually for inflation.

15
STRATEGIC POLICY SHIFTS

• The key policy developments embedded in the
  Comprehensive Plan include
• A policy to upgrade informal settlements
  progressively based on an integrated community
  development approach and involving the community
  as a whole.
• A housing land policy will serve to prioritise
  the release of public land and the acquisition of
  private land for low cost housing projects.
• A social housing and medium density policy and
  programme aims to establish social housing
  institutions that will develop and manage
  quality, well located, largely rental housing
  stock on a sustainable basis.
• A policy and programme to provide primary social
  and economic infrastructure in low income housing
  developments will contribute towards enhancing
  the quality of the living environments by
  providing for community needs.

16
STRATEGIC POLICY SHIFTS

• Improving international cooperation on human
  settlement development
• Lead Ministry for UN Habitat (Habitat Agenda)
  World Urban Forum, WSSD
• Cities Alliance cities without slums
  initiative
• Supporting NEPAD regarding sustainable human
  settlement development in the African region is
  concerned
• Bi-lateral and multi-lateral cooperation
  programmes with donor countries.

17
LINKAGES TO GOVERNMENT PRIORITIES

• The Strategic vision of the Departmental
  Strategic plan is informed by the following
  national policies, programs and initiatives
• The White Paper on a New Housing Policy and
  Strategy which remains the basis for housing
  policy and program
• The Urban Renewal Program
• The Integrated Sustainable Rural Development
  Strategy
• The Expanded Public Works Program
• The program to develop entrepreneurship among
  previously disadvantaged communities
• The Presidencys National Spatial Development
  Perspective
• The Strategic Development Initiatives (SDIs)
• Provincial development frameworks
• Integrated Development Plans (particularly at the
  municipal sphere) and
• National and provincial multi-year housing
  development plans and
• The Presidential Job Summit project.

18
LINKAGES TO GOVERNMENT PRIORITIES

• The following objectives have been defined by the
  national Department of Housing in line with the
  State of the Nation Address, the budget speech by
  the Minister of Finance and the Strategic Vision
  of the Department
• Accelerating the delivery of housing as a key
  strategy for poverty alleviation
• Utilizing provision of housing as a major job
  creation strategy
• Ensuring property can be accessed by all as an
  asset for wealth creation and empowerment.
• Leveraging growth in the economy
• Promoting social cohesion and improving quality
  of life for the poor.
• Support the functioning of the entire single
  residential property market to reduce duality
  within the sector by breaking the barriers
  between the first economy residential property
  boom and the second economy slump.
• Utilizing housing as an instrument for the
  development of sustainable human settlements in
  support to spatial re-structuring.

19
LINKAGES TO CLUSTER PRIORITIES

• The National Department and the Provincial
  Departments of Housing have integrated their
  activities with the following Cluster priorities
• Job Creation and Expanded Public Works Programme.
• Integrated Sustainable Rural Development and
  Urban Renewal
• Entrepreneur Development Programme and BEE
• Promotion of Women Entrepreneurs
• Internships
• The employment of Community Development Workers
  (CDW) and their interface within Multipurpose
  Community Centres (MPCCs).

20
BUDGET OVERVIEW ENE 2005
Programme 2005/06 2006/07 2007/08
1 Administration 83,737 92,246 97,948
2 Policy Planning and Research 24,634 26,112 27,418
3 Program Management 95,061 69,893 96,887
4 Housing Sector Performance 130,607 190,258 211,620
5 Housing Equity 5,949 6,306 6,621
6 Housing Development Funding 4,851,724 5,668,648 6,927,081
Total 5,191,712 6,053,463 7,367,575
Net Increase to baseline 19,629 569,535 1,609,451
21
BUDGET OVERVIEW ENE 2005
22
BUDGET OVERVIEW ENE 2005

• Additional funding
• R50 million in 2005/06 for institutional reform ,
  capacity building and accreditation activities
• Decrease of R28,8m as a result of transfer of
  Loans for the previous Housing Boards
• R600 million in 2006/07 (R500 million for various
  aspects of the new plan, R50 million for
  institutional reform and capacity building and
  R50 million for finalising the portfolio of
  Servcon Housing Solutions)
• R1,6 billion 2007/08 (R1,5 billion for various
  aspects of the new plan, R80 million for
  institutional reform , capacity building and
  accreditation activities, and R60 million for
  Servcon).

23
Variances Allocation 2004/05 vs. 2005/06
Programme 2004/05 2005/06 Variance
1 Administration 66,833 83,737 16,904
2 Policy Planning and Research 22,139 24,634 2,495
3 Programme Management 152,477 95,061 -57,416
4 Housing Sector Performance 92,240 130,607 38,367
5 Housing Equity 5,612 5,949 337
6 Housing Development Funding 4,509,640 4,851,724 342,084
Total 4,848,941 5,191,712 342,771
24
BUDGET OVERVIEW
25
BUDGET OVERVIEW
26
Allocation of funds in respect of Strategic
Priorities / Measurable objectives

• Programme 2 Policy Planning and Research -
  (R24,634,000)
• Adequate housing for all South Africans by 2024,
  through policy, legislation and research that
  enables housing delivery in sustainable human
  settlements.
• Programme 3 Programme Management -
  (R95,061,000)
• Increase access to and improve the delivery of
  adequate housing in sustainable human settlements
  by effectively providing officials with systems,
  knowledge, skills, guidance and funding.
• Programme 4 Housing Sector Performance -
  (R130,607,000)
• Effective monitoring of policy implementation by
  using an effective data bank and housing and
  human settlement information systems that provide
  accurate, strategic and statistically sound data
  to allow for regular evaluation of the impact of
  housing policy, and to support decision-making on
  improvements to housing policy and programmes.

27
Allocation of funds in respect of Strategic
Priorities / Measurable objectives

• Programme 5 Housing Equity - (R5,949,000)
• Increase the level of private sector finance for
  affordable housing by R20 billion by 2010,
  through monitoring and analysing lending
  practices, and by supporting the development of
  appropriate instruments by lending institutions
  and appropriate partnerships between lending
  institutions, government, housing support
  institutions and other lenders.
• Programme 6 Housing Development Funding -
  (R4,509,640,000)
• Disburse and monitor funds for housing delivery
  in compliance with the Public Finance Management
  Act (1999) and Division of Revenue Act
  requirements, to ensure that expenditure matches
  annual delivery commitments.

28
Trends in the budget allocation 2004/05 vs.
2005/06

• The allocation of several of the programmes
  fluctuates due to the project-based activities in
  these programmes, as well as reprioritisation to
  accommodate the implementation of the
  comprehensive plan.
• In the 2005 Budget, additional allocations were
  made of R50 million for 2005/06, R600 million for
  2006/07 and R1,6 billion for 2007/08, most of
  these funds will go towards implementing the
  comprehensive plan for the development of
  sustainable human settlements
• Programme 1 Administration allocation increases
  to support the expansion of administrative
  capacity to accommodate new functions and the
  incorporation of the communications function into
  the Corporate Services
• Programme 2 Policy Planning and Research
  increase is related to inflationary adjustment.

29
Trends in the budget allocation 2004/05 vs.
2005/06

• Programme 3 Programme Management, allocation
  declines between 2004/05 and 2005/06 as a result
  of the consolidation of the human settlement
  redevelopment grant with the housing subsidy
  grant in Programme 6 Housing Development
  Funding
• Programme 4 Housing Sector Performance consist
  mainly of transfer payments, largely to public
  entities, and it is the year-on-year changes in
  these that determine overall allocation. Servcon
  Housing Solutions, a joint venture between
  government and the banking industry to manage the
  disposal of properties owned by banks, allocation
  for 2004/05 amounts to R38,6 million and
  increased to R55,9 million in 2005/06. In
  2005/06, a small transfer to the Peoples Housing
  Partnership Trust is introduced to fund
  administrative and personnel costs associated
  with supporting self-build housing projects.
• Programme 5 Housing Equity allocation increase
  is for goods and services, for the IT system
  required to monitor reporting from banks,

30

• KEY ACTIVITIES PER PROGRAMME AND
• BUDGET OVERVIEW
• OVER THE MTEF (2005/08)

31
PROG 1 ADMINISTRATION
32
PROG 1 ADMINISTRATION

• Purpose is to provide strategic leadership and
  administrative and management support services to
  the department. Promote and facilitate the flow
  of information between the department and its
  stakeholders.
• The key strategic objectives include the
  following
• Provision of strategic corporate communication
  services to all stakeholders
• Provision of Strategic Financial Management
  Services
• Provision of Corporate Services (such as HRM,
  Transport, Security and IT) to ensure corporate
  efficiently
• Provision of strategic support services for the
  Minister and Accounting Officer
• Implementation of the department's anti
  corruption initiative and investigative programme.

33
BUDGET OVERVIEW

• MTEF Allocation
• 2005/06 R83,737,000
• 2006/07 R92,246,000 and
• 2007/08 R97,948,000.
• A real average increase over the MTEF at 7,3
• Increase over MTEF mainly as a result of the
  increase in staff component for enhanced service
  delivery and aligning of functions to strategic
  objectives
• This include the expansion of the
  Director-General office and the creation of
  security function.

34
BUDGET SUMMARY
35
BUDGET SUMMARY
36
PROG 2 POLICY PLANNING AND RESEARCH
37
PROG 2 POLICY PLANNING AND RESEARCH

• PURPOSE
• To develop sound national human settlement and
  housing policies, supported by research and
  underpinned by an appropriate legislative
  framework

38
OBJECTIVESPOLICY PLANNING

• Develop and manage sustainable human settlement
  policy and promote and maintain human settlement
  integration
• Establish effective national housing policy and
  strategy
• Develop, coordinate and monitor the
  implementation of housing framework legislation

39
STRUCTURE

• Human Settlement Policy and Integration focuses
  on sustainable urban and rural human settlement
  development policy and is responsible for
  international cooperation on human settlement
  policy.
• National Housing Policy and Strategy develops
  national housing policy and strategies. It also
  maintains the national housing code, manages the
  integrated multi-year housing development plans,
  and guides the design of appropriate
  institutional frameworks for implementing housing
  policy and strategy.

40
STRUCTURE

• Housing Framework Legislation drafts housing
  legislation required to implement approved policy
  and strategies monitors the implementation of
  housing legislation and assesses the impact of
  other legislation on the housing function.
• BUDGET 2005/2006 R 24,6 M

41
KEY ACTIVITIES OVER MTEF

• HUMAN SETTLEMENT POLICY AND INTEGRATION
• Housing land policy
• Guide lines for farm worker housing
• Densification, integration and inner city renewal
  programme
• Aligning IDPs and housing sector plans
• Energy efficient housing
• Substantive inputs to multi-lateral processes

42
KEY ACTIVITIES OVER MTEF

• NATIONAL HOUSING POLICY AND STRATEGY
• Special Housing needs assistance policy
• Medium density housing policy investigation
• Developing guidelines for sustainable housing
  development by revising the National Housing
  Code
• Revisit rural subsidy programme
• Back yard rental policy intervention
• Guidelines for informal settlement pilot projects
• New housing typologies and designs

43
KEY ACTIVITIES OVER MTEF

• FRAMEWORK LEGISLATION
• Social Housing Act
• Regulations to the Social Housing Act
• Housing Development Act (New)
• Review of national, provincial and local
  legislation impacting on the Comprehensive Plan

44
KEY ACTIVITIES OVER MTEF

• Amendments to various acts administered by the
  Department in accordance with need Including-

- An efficient and implementable Housing Act
that complies with DORA and PFMA - An equitable
PIE Act that is constitutional and unambiguous
and allows for the orderly eviction of unlawful
occupiers- An efficient Housing Consumers
Protection Measures Act that is unambiguous and
serves the interests of housing consumers - An
efficient and implementable Rental Housing Act
that gives Rental Housing Tribunals the power to
enforce their rulings
45
CHIEF DIRECTORATE RESEARCH

• The Chief Directorate Research initiates,
  undertakes and manages research on human
  settlements and housing.

46
STRATEGIC OBJECTIVE RESEARCH

• To establish internal and external research
  networks and foster a research culture within the
  Department to progressively improve the
  relevance, alignment, quality, and usefulness of
  research activities so that the Department is
  able to maintain a leading role in national, and
  international, debates around human settlements
  and influence practice to more efficiently and
  effectively fulfil the housing mandate.

47
KEY ACTIVITIES OVER MTEF

• RESEARCH
• Research on informal settlement upgrading and
  support
• Promoting alternative technologies and improved
  housing design
• Level of socio-economic and ethnic integration in
  SA
• International experience in densification and
  integration
• Study on housing ex servicemen
• International research seminar

48
BUDGET SUMMARY
49
BUDGET SUMMARY
50
PROG 3 PROGRAMME MANAGEMENT
51
PROGRAMME 3 PROGRAMME MANAGEMENT

• Purpose
• Manage National Housing and Human Settlement
  Programs to enable, support and promote the
  implementation of projects
• Measurable Objectives
• Increase access to and improve the delivery of
  adequate housing in sustainable Human Settlements
  by effectively providing officials, structures
  and systems with knowledge, skills, guidance and
  funding

52
STRUCTURE

• 3 Directorates
• National Housing Programs
• Special Programs Support
• Capacity Building
• 4 Sub-Programs
• Budget R95 million

53
KEY ACTIVITIES OVER MTEF

• OLD BUSINESS
• Enhanced Phasing Out Program (March 2006)
• First Time Home Buyers Interest Subsidy Scheme
  (Monthly)
• NHBRC Warranty Cover (October 2005)
• Human Settlement Redevelopment Program (Monthly)
• Presidential Pilot Project on Rental Housing
  (Monthly/Ongoing)

54
OLD BUSINESS (CONT)

• Housing Professional Body (Dec 2005)
• Housing Practitioners Skills Audit (Oct 2005)
• Consumer Education (Roll-out May 2005)
• Housing Policy Workshops/seminars
  (Continuously)
• Accredited train-the-trainer program (March
  2006)
• Housing Education and Training Standards (March
  2006)

55
NEW BUSINESS

• New Procurement Regime (Oct 2005)
• Rural Housing enhancement (Dec 2005)
• Guidelines for new subsidy bands (Dec 2005)
• Accreditation Framework and Promotion (Ongoing)
• EPWP Regulating Framework (Completed)
• Rectification of houses pre/post 1994 (Post
  completed)
  (Pre- Oct 2005)

56
NEW BUSINESS (CONT)

• HIV/AIDS assistance program (March 2005)
• New Hostels Program (Dec 2005)
• Farm worker Housing guidelines (March 2005)
• New PHP guidelines (Nov 2005)
• Guidelines for a phased development approach
  (Oct 2005)
• Framework for social/econ amenities (Completed)
• Alignment of infrastructure policy (Ongoing with
  sector Depts)

57
NEW BUSINESS (CONT)

• Training Program for Accreditation (Ongoing)
• Social/Econ facilities training/awareness (June
  2005)
• Informal Settlement Capacity building (Ongoing)
• Roll out of Consumer Education Strategy (May
  2005)
• Training/Capacity Building Programs
• Social Housing (May 2005)
• Phasing Out (March 2006)
• Procurement (Jan 2006)

58
BUDGET SUMMARY
59
BUDGET SUMMARY
60
BUDGET OVERVIEW

• MTEF allocation
• 2005/06 R95,061,000
• 2006/07 R69,893,000 and
• 2007/08 R96,887,000.
• Reason for fluctuation over MTEF is due to the
  integration of the Human Settlement Redevelopment
  Program grant into the Integrated Housing and
  Human Settlement Development Grant.
• Commitments on projects for 2005/06 amounts to
  R24,395,000
• Additional funding for capacity building

61
PROVINCIAL ALLOCATION (HSRDP)
PROVINCE 2005/06
  R000
EASTERN CAPE
FREE STATE 9,475
GAUTENG 4,129
KWAZULU-NATAL
LIMPOPO 1,418
MPUMALANGA
NORTHERN CAPE
NORTH WEST WESTERN CAPE
NORTH WEST WESTERN CAPE 9,373
TOTAL 24,395
62
PROG 4 HOUSING SECTOR PERFORMANCE
63
PROG 4 HOUSING SECTOR PERFORMANCE

• Purpose
• Monitor the performance and assesses the impact
  of housing delivery, manages housing information,
  and monitors and analyses the impact of
  governments housing policy and programmes on the
  construction sector, the financial sector and the
  economy, and the housing institutions.

64
STRATEGIC OBJECTIVES

• To monitor, evaluate and assess
• The implementation, performance and impact of
  Governments national housing programs
• The impact th1ereof on the construction sector
• The oversight management of the Housing Support
  Institutions and
• The provision of IT systems and its management in
  relation to the distribution of housing subsidies

65
STRUCTURE

• There are five subprogrammes
• Policy and Programme Monitoring assesses the
  implementation of national housing policy and
  programmes, and the impact of these on
  beneficiaries, the environment and the roles of
  the three spheres of government.
• Information Management maintains national housing
  databases and information systems.
• Industry Analysis and Development Finance
  monitors and analyses the impact of governments
  housing policy and programmes on the construction
  sector, the financial sector and the economy.
• Housing Institutions monitors the performance of
  the following housing institutions National
  Housing Finance Corporation, Servcon Housing
  Solutions (Pty) Ltd, Peoples Housing Partnership
  Trust, Social Housing Foundation, National Home
  Builders Registration Council, Thubelisha Homes,
  National Urban reconstruction and Housing Agency,
  and the Rural Housing Loan Fund.
• Contributions administers the transfer payments
  to these institutions.

66
BUDGET SUMMARY
67
BUDGET SUMMARY
68
CHIEF DIRECTORATE INFORMATION MANAGEMENT

• Strategic Objective To provide human settlement
  information to support Governments housing
  provision process
• Deliverables MTEF
• Develop, manage and maintain housing information
  systems (HSS, HUIS, NHSDB)
• ensure an effective library and resource service
• Manage the provision and maintenance of the
  Housing Subsidy System to accredited Local
  Governments and
• Manage the level of quality of data continuously
  to ensure accurate and reliable data.

69
CHIEF DIRECTORATE HOUSING SECTOR PERFORMANCE

• Strategic Objective To monitor, evaluate and
  assess the implementation, progress and impact of
  national as well as entrepreneurial development
  and job creation programs
• Deliverables MTEF
• Develop monitoring, evaluation and impact
  assessment system based on the BNG Housing Plan
• Create and develop publications to advise
  management and stakeholders
• Establish effective and efficient communication
  channel between three tiers of Government

70
CHIEF DIRECTORATE INDUSTRY ANALYSIS

• Strategic Objective To monitor and evaluate
  Governments programs in the construction sector,
  accessibility of development finance and impact
  of economic indicators
• Deliverables MTEF
• Effective monitoring of the construction sector,
  quality of houses, alternative building
  technologies and capacity
• Monitor and evaluate the housing finance sector,
  effectiveness of housing finance products and the
  impact of the economy on the housing sector
• Monitor the performance of Housing Support
  Institutions against the BNG Housing Plan,
  founding mandates and products offered

71
BUDGET OVERVIEW

• MTEF allocation
• 2005/06 R130,607,000
• 2006/07 R190,258,000 and
• 2007/08 R211,620,000 million.
• Average increase of 22 over the MTEF
• Mainly as a result of increases in allocation to
  SERVCON as a result of SERVCON concluding its
  work.
• Fairly stable over MTEF period

72
PROG 5 HOUSING EQUITY
73
PROG 5 HOUSING EQUITY

• Purpose
• Eradicate discrimination and unfair practices to
  do with access to housing finance, by
  implementing and administering the Home Loan and
  Mortgage Disclosure Act (2000) and its
  regulations.

74
STRATEGIC OBJECTIVES

• To promote transformation in financial services
  associated with housing finance to low to medium
  income households
• To facilitate and ensure the availability and
  accessibility of affordable housing finance
  instruments/products and savings schemes to low
  to medium income households.

75
STRATEGIC OBJECTIVES( continued )

• To identify possible discriminatory lending
  patterns in housing finance to low to medium
  income households by implementing the Home Loan
  and Mortgage Disclosure Act.
• To monitor that financial institutions meet the
  targets they set in terms of the financial
  services sector charter.

76
KEY ACTIVITIES OVER MTEF

• Engage with financial institutions to
• ensure that they transform the way in which they
  engage with the target market ( immediate and
  on-going )
• develop affordable housing finance instruments (
  31st December 2005 )
• Explore risk sharing mechanisms to enable
  mobilising credit at scale ( 31st December 2005 )
• Identify and resolve impediments to a properly
  functioning property market ( immediate and
  on-going )
• ensure appropriate consumer education programs
  (31st December 2005 )
• ensure expanding points of representation ( 31st
  December 2005 )

77
KEY ACTIVITIES OVER MTEF ( continued )

• finalise and gazette regulations to implement the
  Home Loan and Mortgage Disclosure Act (30th June
  2005)
• receive, capture analyse information disclosed
  by financial institutions (31st December 2005)
• submit annual reports to Minister and other
  stakeholders. (31st March 2006 )

78
BUDGET SUMMARY
79
BUDGET OVERVIEW

• MTEF allocation
• 2005/06 R5,949,000
• 2006/07 R6,306,000 and
• 2007/08 R6,621,000.
• Average increase of 5 over MTEF

80
PROG 6 HOUSING DEVELOPMENT FUNDING
81
PROG 6 HOUSING DEVELOPMENT FUNDING

• Housing Development Funding manages the funding
  of national housing programmes.
• The programme comprises three sub-programmes
• Fund Management administers payments of the
  conditional grant to provinces.
• Integrated Housing and Human Settlement
  Development Grant reflects the conditional grant
  allocation that is transferred to provinces
• Interest and Redemption on Private Loans
  administered the interest payments on liabilities
  held by the National Housing Development Board
  and the SA Housing Trust, all of which have been
  transferred to National Treasury.

82
KEY ACTIVITIES OVER MTEF

• The Integrated Housing and Human Settlement
  Development Grant is the amalgamation of aspects
  of the Human Settlement Redevelopment (which
  previously fell under Programme Management) the
  previous Housing Subsidy conditional grants
• To accommodate the funding required for
  implementing the new comprehensive plan for the
  development of sustainable human settlements
• Will in the first year fund the current business
  and new pilot projects across the country
• National Department assisting provinces in
  finalising plans and targets in line with
  Comprehensive plan for 31 March 2005 target date
  for submission of these plans.

83
KEY ACTIVITIES OVER MTEF

• Transfer of funds according to payment schedule
• Monitoring of expenditure on provincial local
  authority level
• Amending Housing subsidy grant framework
• To provide a effective and efficient debtor
  system.

84
BUDGET SUMMARY
85
BUDGET SUMMARY
86
BUDGET OVERVIEW

• MTEF allocation
• 2005/06 R4,851,724,000
• 2006/07 R5,668,648,000 and
• 2007/08 R6,927,081,000.
• Accounts for the bulk of the departments
  expenditure
• Average increase of 15,6 over MTEF

87
PROVINCIAL ALLOCATIONS (IHHSDG)
88
Transfers to Provinces
89
Summary of the Housing Delivery Targets and
Funding Allocations for the nine Provincial
Housing Departments.
90
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91
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92
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93
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95
THANK YOU
96
The New Plan in Action
97
Province Eastern Cape PMG note photographs
not included
Bulembu Peoples Housing Project - King Williams
Town BCM WARD 9 RURAL HOUSING PROJECT, ALSO KNOWN
AS BULEMBU PEOPLES HOUSING PROJECT.
98
Province Eastern Cape PMG note photographs
not included
Sakhasonke Village Walmer - Port Elizabeth
99
Province Free State PMG note photograph not
included
100
Province Free State PMG note photograph not
included
101
Province Northern Cape PMG note photographs
not included
102
Province Northern Cape PMG note photographs
not included
Kuruman 16 Days of Activism, December 2004
103
Province Mpumalanga PMG note photographs not
included
Gogo Nhlapho, 78 yrs received her house after the
residential Imbizo in Ogies
104
Province Mpumalanga PMG note photographs not
included
Building Communities where people of all races
live together
105
Province Western Cape PMG note photographs
not included
Envisaged Output - N2 Gateway Project
106
Province Western Cape
Envisaged Output N2 Gateway Project
107
Province Gauteng PMG note photographs not
included

• Brickfields Housing Project Newtown
  Johannesburg
• Mixed income residential development comprising
  of 1400 housing units

108
Province Gauteng PMG note photographs not
included

• 14 500 Formal Houses Built in 2004/5