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Housing Accreditation Presentation to Portfolio Committee

Progress Report – 01 July 2011

Municipal Accreditation Programme

ACRONYMS / ABREVIATIONS CoGHSTA -Department of Cooperative Government, Human

Settlements and Traditional Affairs GIS - Geographic Information System HSS - Housing Subsidy System IDP - Infrastructure Development Plan IGR - Intergovernmental Relations SDF - Spatial Development Framework MIG - Municipal Infrastructure Grant MTEF – Medium term expenditure framework NHNR - National Housing Needs Register NUSP - National Upgrading Support Programme O&M - Operation and Maintenance PMU - Project Management Unit UISP - Upgrading of Informal Settlements Programme

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PurposePresentation will cover progress made by Frances Baard District Municipality regarding implementation of Housing since accreditation ito:1. Background2. Integration of the Housing Unit into the DM3. Intergovernmental Relations4. Support to Local Municipalities 5. Funding6. Outcome 87. Projects8. HSS & Needs Register9. Challenges10. Conclusion

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The Frances Baard District Municipality is situated in the north-eastern corner of the Northern Cape, sharing borders with the Free State and North West Provinces.

It is one of five district municipalities in the Province.

Geographically, Frances Baard District Municipality is the smallest district municipality (12 384 km² or 3,4 % of the Province).

Largest population (353 200 people or 33,3 % of the Province)

1. Background

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The population density of the District Municipality is 28,52 persons per km² which is considerably higher than the 2,96 of the Province.

The District Municipality consist of 4 local municipalities; namely Sol Plaatje, Dikgatlong, Magareng and Phokwane.

It is estimated that ± 25 500 households are homeless. Almost 50% of these are in the Sol Plaatje Municipality.

1. Background (continued…)

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1. Background (continued…)

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Access to basic services are relatively high in the district:

Water - 96 %

Sanitation - 92 %

Electricity - 78 %

1. Background (continued…)

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2. Integration

Since the granting of conditional level 1 accreditation, the integration of the Housing Unit into the District Municipality’s functions were prioritised.

The Housing Unit’s organogram was approved by Council on 23 April 2008

This organogram is currently being populated.

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Housing Manager

Housing Specialist Senior Housing Admin Officer

Senior Building Inspector HSS ClerkHSS Clerk

Vacant

Technical FacilitatorVacant

Technical FacilitatorVacant

Admin AssistantVacant

2. Integration (continued ….)

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2. Integration (continued ….)The Housing Unit forms part of the Infrastructure Development Department. The infrastructure Development Directorate therefore consists of three units:

- Municipal Infrastructure Services

- Housing Function

- Planning & Design

The Housing Unit will report to two Committees of Council, namely Social Development and Infrastructure Development.

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2. Integration (continued ….)The Housing Unit is supported by the following units as shared services:-

Engineering

• Three technicians, one per municipality

• PMU & Operations and Maintenance

Information Technology

Financial

• Budget, accounting and financial management

Internal Audit

Environmental Health

Human Resources

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3. Intergovernmental Relations

The District IGR Forum is chaired by the Executive Mayor of the District Municipality

Includes all mayors and municipal managers of local municipalities in the district.

This Forum is supported by the Technical IGR which is made up of all section 57 managers of local municipalities as well as representatives from sector departments.

This Technical IGR informs the agenda for the District IGR

The IGR forum meets regularly, at least quarterly.

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4. Support to Local Municipalities

The following policies were developed for each municipality (Dikgatlong, Magareng & Phokwane):

Housing Sector Plans Housing Allocation Policy Contract Management Policy Formulation of local SDFs – All three are

finalised and adopted. Proposed projects for implementation have been identified.

Housing Demand Research on shack dwellers and informal housing occupants

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4. Support to Local Municipalities

Shared/support services IDP formulation and review Environmental Health Technical expertise: PMU and Operations and

Maintenance Internal audit Human resource Information technology Financial: Budget, accounting and financial

management Planning and development (town planning & GIS) Turn around strategy

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4. Support to Local Municipalities

Turn Around Strategy:

The District Municipality has budgeted an amount of R5,8 million to assist local municipalities in their Turn Around Strategy. This will mainly go towards the following: To get Water and Waste Water Treatment

Plants registered. Establish capacity of these plants for future

planning. Assist with municipal roads: Accurate

backlog figures, O&M and assist with plan.

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5. Funding

Conditional Grant Funding:Funding from the following streamsare received:

Human Settlements- Capacity Funding R3,000,000- Housing Development None, directly transferred to Mun. (R28 908 815.00 – 2011/12)

5. Funding (Capital Projects)

LM PROJECT DESCRIPTION 2011/12 FY 2012/13 FY

MagarengPurchase a Refuse Removal Truck

R 1,350,000 R 0

PhokwaneConstruction of 2km paved road with associate stormwater drainage - Ganspan

R 3,712,000 R 1,000,000

PhokwaneConstruction of 2km paved road with associate stormwater drainage - Thagadiepilajang

R 0

R 4,712,000

Dikgatlong Stormwater control project R 0 R 4,218,720

DikgatlongWater Treatment Works – Refurbishment of Sand Filters

R 1,412,000 R 0

TOTAL R 6,474,000 R 9,930,720

5. Funding

A study of water and waste water treatment plants has just been completed. O&M funds will be spent according to proposals in this document to: Get water and waste water treatment plants

registered Train operators Improve blue and green drop scores of the

local municipalities

5. Funding (O&M Projects)

LM PROJECT DESCRIPTION 2011/12 FY

Dikgatlong Operation and Maintenance Projects R 2,800,000

Magareng Operation and Maintenance ProjectsR 2,050,000

Phokwane Operation and Maintenance Projects R 2,100,000

Sol Plaatje Operation and Maintenance Projects R 750,000

FBDM AreaElectricity Master Plans for Magareng & Phokwane

R 570,000

TOTAL R 8,270,000

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6. Outcome 8OUTPUTS

AC-TION

SUB OUTPUTS

MTEF TARGETS 2010/11Achievements

2011/12 Targets

Output 1

Accelerated delivery of housing opportunities

Sub Output 1: Upgrading of informal settlements programme (UISP)

NC - 9320 •Sites 0•Services 700•Houses 748

•Sites 0•Services 150•Houses 710

Sub Output 2: National Upgrading Support Programme (NUSP) to provide technical assistance to municipalities

Sol Plaatje & Phokwane Municipalities designated to receive support ito NUSP.

Implementation plan and material for capacity support developed.

Programme implementation at municipalities

6. Outcome 8 (continued….)

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OUTPUTS

ACTION

SUB OUTPUTS MTEF TARGETS

2010/11Achieveme

nts

2011/12 Targets

Sub Output 3: Accreditation

Frances Baard; Sol Plaatje;

Frances Baard DM granted level 2 accreditation

• Sol Plaatje Municipality targeted for level 2 Accreditation

•Funding and Hands-on-support to 8 municipalities

Sub-Output 4: Increased provision of Well located and affordable priced rental accommodation

NC -1864

0 N/A

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7. Projects – Quality Assurance

Approved allocation from Business Plan (for 2011/12 FY) Dikgatlong Municipality

De Beershoogte – 552 (100) (352 completed) Rooirand – 500 (100) (337 completed) Stillwater – 150 (0) (Services)

Phokwane Municipality Pampierstad – 1 450 (100) (180 completed) Ganspan – 513 (50)

Magareng Municipality Ikhutseng – 16 (16) Infill Ikhutseng – 1 000 (100)

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7. Projects – Quality Assurance

Frances Baard District Municipality is ready to do the full

Project Management, Quality Assurance and Subsidy

Administration

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8. Housing Subsidy System & National Housing Needs Register

• We have been on HSS Online since 2008, but the system has never worked properly ever since its inception.

• Problems has been reported regularly, although communication is ongoing, the problems are not solved on a permanent basis.

• The NHNR is operational but challenges still exist.

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9. Challenges Vacant post of Municipal Manager (Has been advertised

and appointment should be made soon) Finances. The operational budget for the 2011/12

financial year is R4 143 540. If FBDM is allowed 8% of total budget for operating cost an annual housing budget of ±R51 million will be needed.

The Service Level Agreement on shared services is not in place. Once the new councils are in place it will be put on the agenda of IGR again.

This Housing Subsidy System (HSS) are a cause for concern. The on-line system gives problems.

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9. Challenges Continue Shortage of suitable land. Performance of emerging contractors. O & M of infrastructure Bulk infrastructure constraints. (An investigation is

currently being done) MIG-funding not reaching district municipalities. (In the

past this was used to improve bulk infrastructure in the local municipalities.)

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10. Conclusion

In the Northern Cape district municipalities are best equipped to deliver housing functions as most of the smaller local

municipalities does not have the capacity and will struggle to build capacity on a

sustainable manner.

In a short period of time Frances Baard District Municipality established a functional

Housing Unit and reached level 2 accreditation.

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