DEPARTMENT OF HOUSING

DEPARTMENT OF HOUSING

PRESENTATION TO THE PORTFOLIO

COMMITTEE ON HOUSING

ANNUAL REPORT 2004/05

Date: 26 October 2005

STRUCTURE OF THE PRESENTATION

7. Aim, Vision and Mission of the Department

8. Our Values

9. Our Mandates

10. Housing Legislation and Regulations

11. Our Policy Framework

12. Overview of Economic and Market environment

13. Overview of Programme Financial Statement

14. Programme Performance

15. Conditional Grants

DEPARTMENT OF HOUSINGAIMThe aim of the Department of Housing is to determine, finance, promote, coordinate, communicate and monitor policy in respect of housing and human settlement.

VisionA nation housed in sustainable human settlements

MissionTo 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

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

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

OUR MANDATE

OUR MANDATE

• 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);

HOUSING LEGISLATION PASSEDHousing development programme continues to operate in the following legislative framework:

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

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%

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 government’s 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

SUMMARY OF PROGRAMMES

For the year 2004/05 activities of the Department of Housing are organised in the following six programmes:

Programme 1: AdministrationProgramme 2: Housing Policy Planning and ResearchProgramme 3: Housing Programme ManagementProgramme 4: Housing Sector PerformanceProgramme 5: Housing Equity Programme 6: Housing Development Funding

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:

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

SERVICE DELIVERY ACHIEVEMENTS:

• Employment Equity Framework and Employment Equity Plan approved.

• Service Delivery Standards reviewed

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 Minister’s Public Information Campaigns, imbizos and exhibitions. Advertorials and opinion pieces were published in the mainstream media to communicate with the citizenry.


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.


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.

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.

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 ( 12 th

Session)

• African Ministers Conference on Housing and Urban development

• Draft housing land policy

• Guidelines for mainstreaming gender in housing

• 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.

SERVICE DELIVERY ACHIEVEMENTS Cont.


• 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

PROGRAMME 3 : PROGRAMME MANAGEMENT

PURPOSE

The 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.


To 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


• 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 Council’s [NHBRC] Warranty Scheme.

• Special Housing needs of Disabled People with specific impairments


• 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)


• 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

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.


To 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


• 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 PHD’s to utilize the system effectively conducted periodically.


• 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.


• 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 M&E systems for special housing programmes with adequate feedback mechanisms for housing interventions.



– 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.



– 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.

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.


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


• 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 CEO’s 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.

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


• 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.

CONDITIONAL GRANTS EXPENDITURE REPORT

31 MARCH 2005

Post Audit Final Results

Percentage analysis

Existing (2001) Formula) with Funding Allocation percentages

EC, 12

FS, 8.24

GT, 27.7

KN, 16.49

LP, 8.21

MP, 6.63

NC, 1.64

NW, 9.67

WC, 9.42

EC FS GT KN LP MP NC NW WC

Expenditure Status 31 March 2005.

Spent by

Provinces

R'000 R'000 R'000 R'000 R'000 R'000

Eastern Cape 598,900 - 598,900 598,900 572,564 26,336 96% 4%Free State 385,641 140,381 526,022 385,641 447,565 78,457 85% 15%Gauteng 1,117,463 1,117,463 1,117,463 1,104,492 12,971 99% 1%KwaZulu-Natal 748,463 -8,522 739,941 748,463 748,998 -9,057 101% -1%Limpopo 369,818 369,818 369,818 312,951 56,867 85% 15%Mpumalanga 296,457 4,273 300,730 296,457 304,989 -4,259 101% -1%Northern Cape 89,442 994 90,436 89,442 90,436 0 100% 0%North West 421,378 85,380 506,758 421,378 371,305 135,453 73% 27%Western Cape 446,035 141,417 587,452 446,035 511,150 76,302 87% 13%Total 4,473,597 363,923 4,837,520 4,473,597 4,464,450 373,070 92% 8%

Year to date (1 April 2004 - 31 March 2005)2004/05

Transferred Funds

Unspent funds

Spent as % of Total Available

Unspent as % of Total

Available

Provinces

Voted Rollovers/Recovered

funds at provinces

Total Available

Table 1: Spending analysis as at 31 March 2005

Expenditure Status 31 March 2005.

Analysis of expenditure for the period ending 31 March 2005

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Total Available

Spent by Provinces

Unspent Funds100%

8%

92%

Provincial Spending AnalysisTotal avialable vs Spent Funds as at 31 March 2005

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

R`0

00

Total Available Spent by Provinces

Provincial Analysis

Actual Expenditure over six years

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Eas

tern

Cap

e

Fre

e S

tate

Gau

ten

g

Kw

aZu

lu-

Nat

al

Lim

po

po

M

pu

mal

ang

a

No

rth

ern

Cap

e

No

rth

Wes

t

Wes

tern

Cap

e

R`0

00

2004/2005

2003/2004

2002/2003

2001/2002

2000/2001

1999/2000

Expenditure trends

Spending trends for 12 months over 2 years

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

AprilMay

JuneJuly

August

September

October

November

December

January

FebruaryMarch

R`0

00

Projected 2004/2005 2003/2004

Expenditure trends

Expenditure trends for 12 months over 2 years as a percentage of available

0%

5%

10%

15%

20%

25%

April MayJune

July

August

September

October

November

December

January

FebruaryMarch

Projected 2004/2005 2003/2004

Number of Units Completed or Under Construction Over 6 Financial Years

PROVINCE NUMBER OF UNITS COMPLETED OR UNDER CONSTRUCTION

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

Number of Units Completed or Under Construction Over 6 Financial Years

Number of projects19104332780

Projects approved for the 2003/04 vs 2004/05 financial year by province

0

50

100

150

200

250

300

350

400

2003/04 26 31 38 47 63 54 36 18 19

2004/05 33 47 366 83 103 9 4 31 104

EASTERN CAPE

FREE STATE GAUTENGKWAZULU-

NATALLIMPOPO

MPUMA-LANGA

NORTHERN CAPE

NORTH WESTWESTERN

CAPE

Number of planned units

Number of planned units per province for the 2003/04 vs 2004/05 financial year

0

20,000

40,000

60,000

80,000

100,000

2003/2004

2004/2005

2003/2004 20,811 15,039 39,086 43,397 32,681 2,341 7,452 7,570 8,143

2004/2005 9,732 14,089 54,045 42,776 17,503 340 1,763 23,543 77,354

EASTERN CAPE

FREE STATE

GAUTENGKWAZULU-

NATALLIMPOPO

MPUMA-LANGA

NORTHERN CAPE

NORTH WEST

WESTERN CAPE

Number of beneficiaries

Number of beneficiaries for 2003/04 vs 2004/05 financial year

0

10,000

20,000

30,000

40,000

50,000

2003/2004 34,330 16,280 39,778 29,566 14,403 24,736 5,001 12,050 15,371

2004/2005 21,515 18,514 46,958 22,316 14,054 10,237 3,846 8,616 18,953

EASTERN CAPE

FREE STATE GAUTENGKWAZULU-

NATALLIMPOPO

MPUMA-LANGA

NORTHERN CAPE

NORTH WEST

WESTERN CAPE

Subsidy percentage split by gender

PROVINCE

Percentage of subsidies approved by gender

Project Linked Consolidation Institutional Individual

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

Number of Projects

EASTERN CAPE 38 53 60 20 26 33 457

FREE STATE 128 66 38 141 31 47 609

GAUTENG 64 41 66 231 38 366 1,048

KWAZULU-NATAL 57 41 28 36 47 83 552

LIMPOPO (NP) 79 51 19 58 63 103 479

MPUMALANGA 25 65 10 122 54 9 335

NORTHERN CAPE 24 32 17 15 36 4 250

NORTH WEST 16 44 15 4 18 31 221

WESTERN CAPE 68 51 67 70 19 104 555

TOTAL 499 444 320 697 332 780 4,506

2004/05 TOTAL2002/03PROVINCES 99/2000 2000/01 2001/02 2003/04

Number of Projects

Number of projects approved over six years

0

100

200

300

400

500

600

700

800

900

99/2000 2000/01 2001/02 2002/03 2003/04 2004/05

THANK YOU

DEPARTMENT OF HOUSING

Documents

Transcript of DEPARTMENT OF HOUSING