Presentation to the Port Folio Committee for Human Settlements

The Allocation Strategy for housing opportunities created through the National

Housing Programmes

Background

• In response to allegations of mal-administration and fraud regarding the allocation of housing subsidy financed properties, the Previous Minister of Housing approved the Allocation Strategy in 2008;

• Investigations also revealed the need for a National Housing Needs Register from which selection of beneficiaries could be undertaken

Salient features of the Strategy

• The allocation process has been depoliticised;• A structured process for the selection and

approval of applications was introduced;• Priority criteria have been introduced;• The Strategy provides procedures for each

National Housing Programme; and• It is directly linked to the National housing

Needs register.

• Qualification Criteria– The entry level and general criteria of the subsidy

scheme still apply;– Programme specific criteria also still apply

• Priority criteria were introduced:– The Aged and disabled;– Families; and–Women headed households with children.

Salient features of the Strategy

• Persons registered on the National Housing Needs Register do not automatically qualify for subsidies;

• Persons on the Register will be invited to complete application forms when housing opportunities become available;

• All applications so received will be subject to verification and a structured evaluation and approval process.

Salient features of the Strategy

• It applies to housing opportunities created through:– Integrated Residential Development Programme

(IRDP); and – The Upgrading of Informal Settlements

programme

Application of the Strategy

• The Strategy will not apply to:

– The individual Subsidy programmes;– Consolidation subsidies;– PHP subsidies; and– Rental housing programmes.

Application of the Strategy

Institutional Architecture

The Strategy entails the following role players:• The Allocation Committee (AC);• The Provincial Departments of Human

Settlements/Housing;• The Municipality;• The National Department;• The Project Manager; and• External auditors, where applicable.

• The Allocation Committee must:– As a minimum comprise the following public

sector officials:• Two members from the Office of the City Manager of

the Municipality; • Two members representing the Provincial Department

of Human Settlements/Housing; and

–May not include any political office bearer.

Institutional Architecture

Allocation process• When houses/opportunities become available:

– The municipality will determine the selection criteria to apply for the specific project- region, priority status etc.;

– It will request the province to obtain a list of potential beneficiaries from the National Needs Register that meet the set criteria;

– Once received, the AC will verify the list and request the project manager to contact the persons on the list and invite them to apply for housing subsidies;

– The PM will liaise with each applicant in collecting all the documents and the selection of stands and houses;

– Application documents may not be older that three months;– The applications received will be assessed by the AC against the

list of invitees and qualification criteria;– The applications are then submitted to the MEC for approval.

• Once the application is approved it will be recorded on the NHSDB;

• The conditional purchase agreement between the developer and beneficiary will take effect;

• The property will be transferred to the beneficiary;

• The National Housing Needs Register will be adjusted to reflect this status

Allocation process

Thank you