DEPARTMENT OF HOUSING

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DEPARTMENT OF HOUSING

• PRESENTATION TO THE PORTFOLIO
• COMMITTEE ON HOUSING
• ANNUAL REPORT 2004/05
• Date 26 October 2005

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STRUCTURE OF THE PRESENTATION

• Aim, Vision and Mission of the Department
• Our Values
• Our Mandates
• Housing Legislation and Regulations
• Our Policy Framework
• Overview of Economic and Market environment
• Overview of Programme Financial Statement
• Programme Performance
• Conditional Grants

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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
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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

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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

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OUR MANDATE
HOUSING LEGISLATION PASSED 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)

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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

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OVERVIEW OF ECONOMIC AND MARKET ENVIRONMENT

• Unemployment rates continue to pose challenges on
  housing delivery even though current trend show
  marginal reductions
• Employment created within the construction sector
  statistics reveal large growth in the delivery of
  both formal and informal employment
• At 25 between April to September 2004 and
  October 2003 to March 2004
• Low income housing contributing 2,2

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OVERVIEW OF ECONOMIC AND MARKET ENVIRONMENT

• Core input costs to construction have escalated
  at rates far in access of the consumer Price
  Index putting pressure on governments targets
  of delivering at large scale
• Mortgage interest rates have continued to
  decrease making owning a house more affordable
  while growth in house prices has had the opposite
  effect

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SUMMARY OF PROGRAMMESFor the year 2004/05
activities of the Department of Housing are
organised in the following six programmesProgra
mme 1 AdministrationProgramme 2 Housing
Policy Planning and ResearchProgramme 3
Housing Programme ManagementProgramme 4
Housing Sector PerformanceProgramme 5 Housing
Equity Programme 6 Housing Development Funding
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PROG 1 ADMINISTRATION

• PURPOSE
• Administration provides the department with
  strategic leadership, and administrative and
  management support services. The Special
  Investigative Unit, housed within Administration,
  investigates allegations of maladministration,
  irregularities, fraud corruption related to the
  implementation of national housing programmes.
• MEASURABLE OBJECTIVE
• Provide strategic leadership and administrative
  and management support services to the
  department. Its key objectives have been achieved
  mainly through the following sub programmes and
  key functions

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SERVICE DELIVERY ACHIEVEMENTS

• The Department conducted a Skills Development
  Audit across all occupational categories and
  compiled a Workplace Skills Plan which was
  submitted to the SETA and thus informs our
  training and development initiatives.
• The Employee Handbook was developed distributed
  and contains the following policies Study Aid,
  Internship, Overtime, Leave, Recruitment
  Selection, Employee Wellbeing, Job Evaluation,
  HIV/AIDS Sexual Harassment Policies, to keep
  all employees informed.
• The Department appointed 14 Interns, Coaching and
  Mentoring programmes are ongoing

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SERVICE DELIVERY ACHIEVEMENTS

• Employment Equity Framework and Employment Equity
  Plan approved.
• Service Delivery Standards reviewed

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SERVICE DELIVERY ACHIEVEMENTS CONT.

• Departmental operations were aligned to
  Government planning and reporting cycle.
• Security was improved according to MISS
  (physical, Infrastructure and information)
• Communication Services
• There was improvement on the external
  communications Strategy aimed at marketing the
  comprehensive plan on Human Settlements.
• Coordination of the Ministers Public Information
  Campaigns, imbizos and exhibitions. Advertorials
  and opinion pieces were published in the
  mainstream media to communicate with the
  citizenry.

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SERVICE DELIVERY ACHIEVEMENTS CONT.

• Financial Services
• All necessary reports were submitted to
  governance structures, other units in the
  Department and to the National Treasury.
• A risk assessment exercise, which commenced at
  the end of the previous year, was completed,
  culminating in risk assessment and fraud
  prevention plan documents.
• A cash management policy document was developed
  and approved as part of an attempt to improve
  internal controls and reporting.

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SERVICE DELIVERY ACHIEVEMENTS CONT.

• Financial Services cont.
• Although the updating of the procurement policy
  will be finalised in the following year
  adjustments were made on the procurement process
  to ensure compliance with the Supply Chain
  Management Framework.
• We continued to support provinces on the Debtors
  systems ensuring that necessary changes are made
  on the system and training is given to users on
  request.

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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.
• MEASURABLE OBJECTIVE
• Upgrading of all informal settlements by 2014
  through policy, legislation and research that
  enables housing delivery in sustainable human
  settlements, in line with the MDG targets.

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SERVICE DELIVERY ACHIEVEMENTS

• Draft Farm-worker Housing policy
• Model for the alignment of Housing Development
  Plans with Integrated Development Plans
• Successful engagement in World Urban Forum and
  CSD ( 12th Session)
• African Ministers Conference on Housing and Urban
  development
• Draft housing land policy
• Guidelines for mainstreaming gender in housing

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SERVICE DELIVERY ACHIEVEMENTS Cont.

• Prevention of Illegal Eviction from and Unlawful
  Occupation of Land Amendment Bill, 2005
• Less Formal Township Establishment Amendment
  Bill, 2005
• Housing Consumers Protection Measures Amendment
  Bill, 2005.
• Housing Amendment Bill, 2004.
• Regulations under Home Loan and Mortgage
  Disclosure Act, 2000.
• Audit of Provincial Housing Legislation and
  Policy.
• Liaising with State Departments and Provinces for
  purposes of co-ordinating and aligning
  legislation.

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SERVICE DELIVERY ACHIEVEMENTS

• Informal settlement upgrading policy and
  guidelines
• Research network
• Research support to informal settlement
  upgrading, Peoples housing process, Township
  Property Market Study, ex-servicemen policy,
  alternative technologies

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PROGRAMME 3 PROGRAMME MANAGEMENT

• PURPOSEThe Programme Programme Management
  manages national housing and human settlement
  programmes and consists of three sub-programmes,
  namely National Housing Programmes, Capacity
  Building and Special Programmes
  Support.MEASURABLE OBJECTIVETo develop,
  administer and fund capacity-building frameworks
  and programmes, the Housing Subsidy Scheme, the
  Human Settlement Redevelopment Programme and the
  Presidential Pilot Project on Rental Housing in
  order to support housing delivery and improve the
  quality of human settlements

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SERVICE DELIVERY ACHIEVEMENTS

• The Development of a Set of Technical Standards
  and Specifications that will serve as the
  National Norm for the Public Sector Hostel
  Redevelopment Programme.
• Extension of the National Home Builders
  Registration Councils NHBRC Warranty Scheme.
• Special Housing needs of Disabled People with
  specific impairments

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SERVICE DELIVERY ACHIEVEMENTS Cont.

• Develop detailed Deposit Taking Strategy at
  provincial and municipal level
• Development and implementation of the new
  procurement regime
• Detailed Guidelines for National Savings
  Programme for Housing (NSPH)
• Annual adjustment of the quantum of the housing
  subsidy
• Adjustment of SCCCA variation
• Payment for completion of top structure prior to
  the registration of transfer (P5 before P4)
• Management of Human Settlement Redevelopment
  Programme (HSRP)
• Management of aspects relating to Presidential
  Pilot Project on Rental Housing (PPPRH)

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SERVICE DELIVERY ACHIEVEMENTS Cont.

• Provincial Housing Capacity Building Business
  Plans.
• The professionalisation of the housing sector.
• The Housing Consumer Education Pilot Programme
• Housing Scholarship Programme
• The Housing Sector Skills plan, seminars and
  workshops on housing policies and programmes and
  the train the trainer programme.
• Sanitation Health and Hygiene Training Modules

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PURPOSE To monitor the implementation and
performance of national housing policies and
programmes and evaluate their impact on
beneficiaries, the environment and the three
tiers of government.MEASURABLE OBJECTIVETo
conduct effective monitoring and regular
evaluation of policy implementation, by using
information systems that provides accurate,
strategic and statistically sound data
PROG 4 HOUSING SECTOR PERFORMANCE
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SERVICE DELIVERY ACHIEVEMENTS

• Schedule of data sets are collected, compiled and
  populated based on user requirements including
  Provinces and is maintained in the InfoHub.
• The development of a comprehensive information
  and knowledge base with the operational system
  that is aligned with policy, expenditure data on
  HSS was aligned with BAS data.
• Continuous technical support and training to
  PHDs to utilize the system effectively conducted
  periodically.

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SERVICE DELIVERY ACHIEVEMENTS

• Number of records have been uploaded and
  successful searches were conducted.
• Updated information sets and tables on indicators
  were used as required to support and informed
  various users.
• Information is updated and available on and
  off-line.

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SERVICE DELIVERY ACHIEVEMENTS

• Reports produced on
• Impact assessment of information on the national
  housing programmes on the beneficiary,
  environment, socio-economic and the three tiers
  of Government.
• Impact assessment of projects delivered under the
  Human Settlement Redevelopment Programme.
• Functional ME systems for special housing
  programmes with adequate feedback mechanisms for
  housing interventions.

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SERVICE DELIVERY ACHIEVEMENTS

• Reports produced on
• Monitoring and evaluation of the performance of
  the construction and housing sector, and the
  state of the building industry, including
  indicators such as business confidence,
  employment in the construction sector and the
  building cost index, etc.
• Monitoring and evaluation of the performance of
  the macro-economic sector, including indicators
  such as inflation, exchange rates, GDP and their
  impacts on housing delivery evaluated quarterly.

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SERVICE DELIVERY ACHIEVEMENTS

• Reports produced on
• Monitoring and evaluation of the performance of
  the financial sector, including indicators such
  as national savings, national expenditure,
  interest rates done quarterly.
• Monitoring and evaluation of the performance of
  the housing institutions, in terms of targets and
  explanations of targets met. Presentations by
  institutions on their business plans including
  mid term reviews conducted and submission of the
  review reports, and recommendations made to the
  Minister.

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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. MEASURABLE OBJECTIVE Increase the
level of private sector finance for affordable
housing in line with the Financial Sector Charter
targets of R 42 billion by the end of 2008,
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
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SERVICE DELIVERY ACHIEVEMENTS

• This programme has been in discussions with the
  financial institutions around the Financial
  Sector Charter and the Breaking New Ground Policy
  on Housing Delivery which concluded in the
  signing of a Memorandum of Understanding by the
  Minister of Housing, the Managing Director of the
  Banking Association South Africa and the CEOs of
  the four major banks on 31 March 2005.
• The regulations under the Home Loan and Mortgage
  Disclosure Act (HLAMDA) have been developed and
  submitted for approval.
• Compliance manual on reporting requirements is
  still in a draft form and will be finalised once
  the regulations are finalised, hence financial
  institutions are still not briefed on reporting
  requirements.

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PROG 6 HOUSING DEVELOPMENT FUNDING

• Purpose
• To fund national housing programmes in terms of
  the Housing Act (107 of 1997
• Measurable objective
• To disburse and monitor funds for housing
  delivery in compliance with the Public Finance
  Management Act (Act 1 of 1999) and Division of
  Revenue Act requirements to ensure that
  expenditure matches annual delivery commitments

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SERVICE DELIVERY ACHIEVEMENTS

• 92 of the allocated funds to benefiting
  Provinces was spent.
• Challenges
• Need for serious intervention for unblocking of
  projects to fast track service delivery and
  complete all old projects,
• Improvement of planning and spending and
  alignment to the project life cycle.

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• CONDITIONAL GRANTS EXPENDITURE REPORT
• 31 MARCH 2005
• Post Audit Final Results

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Percentage analysis
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Expenditure Status 31 March 2005.
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Expenditure Status 31 March 2005.
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Provincial Spending Analysis
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Provincial Analysis
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Expenditure trends
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Expenditure trends
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Number of Units Completed or Under Construction
Over 6 Financial Years
PROVINCE NUMBER OF UNITS COMPLETED OR UNDER CONSTRUCTION NUMBER OF UNITS COMPLETED OR UNDER CONSTRUCTION NUMBER OF UNITS COMPLETED OR UNDER CONSTRUCTION NUMBER OF UNITS COMPLETED OR UNDER CONSTRUCTION NUMBER OF UNITS COMPLETED OR UNDER CONSTRUCTION NUMBER OF UNITS COMPLETED OR UNDER CONSTRUCTION NUMBER OF UNITS COMPLETED OR UNDER CONSTRUCTION
PROVINCE 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 TOTAL
Eastern Cape 20,345 34,021 10,816 58,662 27,119 37,524 251,880
Free State 7,177 16,088 7,005 9,155 16,746 16,447 121,052
Gauteng 45,384 38,547 46,723 24,344 49,034 66,738 456,103
KwaZulu-Natal 28,997 28,547 14,379 24,485 33,668 36,734 315,936
Limpopo 12,401 20,996 16,667 14,953 15,810 16,514 147,091
Mpumalanga 4,808 16,457 14,584 21,649 21,232 18,000 144,325
Northern Cape 2,600 4,148 2,588 6,056 3,787 3,598 36,598
North West 12,944 14,109 13,885 23,784 10,484 10,037 145,874
Western Cape 26,916 17,730 16,634 20,500 15,735 11,756 213,001
Total 161,572 190,643 143,281 203,588 193,615 217,348 1,831,860
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Number of Units Completed or Under Construction
Over 6 Financial Years
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Number of projects
332
780
19
104
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Number of planned units
47
Number of beneficiaries
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Subsidy percentage split by gender
PROVINCE Percentage of subsidies approved by gender Percentage of subsidies approved by gender Percentage of subsidies approved by gender Percentage of subsidies approved by gender Percentage of subsidies approved by gender Percentage of subsidies approved by gender Percentage of subsidies approved by gender Percentage of subsidies approved by gender
PROVINCE Project Linked Project Linked Consolidation Consolidation Institutional Institutional Individual Individual
PROVINCE Male Female Male Female Male Female Male Female
Eastern Cape 46.53 53.47 53.86 46.14 45.84 54.16 51.55 48.45
Free State 50.06 49.94 44.60 55.40 80.32 19.68 56.33 43.67
Gauteng 52.07 47.93 41.52 58.48 50.68 49.32 50.89 49.11
KwaZulu-Natal 43.67 56.33 49.24 50.76 41.89 58.11 48.89 51.11
Limpopo 34.85 65.15 42.42 57.58 0 0 39.62 60.38
Mpumalanga 39.64 60.36 41.71 58.29 54.51 45.49 53.09 46.91
Northern Cape 54.70 45.30 66.67 33.33 0 0 62.84 37.16
North West 54.41 45.59 47.68 52.32 72.58 27.42 61.27 38.73
Western Cape 56.23 43.77 58.79 41.21 42.84 57.16 69.44 30.56
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Number of Projects
50
Number of Projects
51
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