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PUBLIC HEARING on PUBLIC HEARING on HOUSING CONDITIONAL GRANT HOUSING CONDITIONAL GRANT

2006/072006/07Presented by: M Nkoana-Mashabane Presented by: M Nkoana-Mashabane

The Honourable MEC of Local Government and The Honourable MEC of Local Government and Housing :Limpopo ProvinceHousing :Limpopo Province

23 February 200623 February 2006

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CONTENTS CONTENTS

2006/7 Expenditure2006/7 Expenditure

Key ObjectivesKey Objectives• AchievementsAchievements• Housing programmes Housing programmes • ChallengesChallenges• InterventionsInterventions

Conclusion Conclusion

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KEY OBJECTIVESKEY OBJECTIVES

The Department identified the following as its key objectives:The Department identified the following as its key objectives:

• To provide regulatory framework for housing deliveryTo provide regulatory framework for housing delivery

• To provide capacity and support to municipalities with To provide capacity and support to municipalities with regard to housing delivery in line with the Housing Actregard to housing delivery in line with the Housing Act

• To create integrated and functional settlementsTo create integrated and functional settlements

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ACHIEVEMENTSACHIEVEMENTS

• 8 841 houses completed during 3rd quarter 8 841 houses completed during 3rd quarter

• Housing Consumer Ntshebele Toll free line has been established Housing Consumer Ntshebele Toll free line has been established

• A total of 66 project managers have been deployed to all municipalitiesA total of 66 project managers have been deployed to all municipalities

• Payment of contracts have been reduced from a month to average of 8 days to support Payment of contracts have been reduced from a month to average of 8 days to support financial viability of emerging contractorsfinancial viability of emerging contractors

• Only four capacitated companies of which three are black owned have been appointed to Only four capacitated companies of which three are black owned have been appointed to construct more than 50% of housing allocation for 2007/8 construct more than 50% of housing allocation for 2007/8

• In correcting poor planning ,Geotechnical engineers have been appointed to conduct In correcting poor planning ,Geotechnical engineers have been appointed to conduct Detailed Geotechnical investigation for 2007/8 development areas, Multi-Year Settlement Detailed Geotechnical investigation for 2007/8 development areas, Multi-Year Settlement Plan developed, Housing Chapter in Municipal IDPs is being rolled out Plan developed, Housing Chapter in Municipal IDPs is being rolled out

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Housing DevelopmentHousing Development

The Housing Development comprises the following The Housing Development comprises the following programmes:programmes:

• Housing Performance/project managementHousing Performance/project management• Social HousingSocial Housing• Housing administration and property managementHousing administration and property management• Housing Sector Performance and municipal supportHousing Sector Performance and municipal support

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Sub-programmeSub-programme 33rdrd Quarter Progress Quarter Progress

FoundationsFoundations Wall PlateWall Plate CompletedCompleted UntouchedUntouched

Old ProjectsOld Projects 24 97224 972 59255925 60526052 64636463 397397

2006 /7 Informal 2006 /7 Informal settlement Upgradingsettlement Upgrading

4 2004 200 880880 11371137 12891289 11941194

2006/7Rural housing 2006/7Rural housing stockstock

7 4507 450 15551555 989989 451451 4 4554 455

PHP (New)PHP (New) 950950 147147 7777 7070 656656

PHP (Old)PHP (Old) 3 0223 022 524524 425425 568568 1 5051 505

TOTALTOTAL 40 59440 594 9 0319 031 8 6808 680 8 8418 841 8 2078 207

Rental Housing (family Rental Housing (family &bachelor units)&bachelor units)

508 units508 units 12 units12 units 318 units318 units 70 units70 units 108108

Housing Housing Transfers( Discount Transfers( Discount benefit scheme)benefit scheme)

4 7704 770 -- -- 677 677 transferredtransferred

2364 2364 Lodged at Lodged at Deeds Deeds OfficeOffice

3rd

3rd Quarter Performance 2006/07

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EXPENDITURE cont…EXPENDITURE cont…

Total per Month

Rm APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC Total to

Dec JAN FEB MAR Total to 12

Feb

Projection 2005/06 18,327 25,871 25,911 29,491 29,284 36,817 54,761 65,713 29,206 315,381 48,180 59,132 55,482 478,175Actual 2005/06 8,544 20,347 21,622 21,802 30,968 34,034 41,425 39,327 59,206 277,275 10,670 23,974 69,794 381,713Initial Projections 2006/07 31,280 36,493 54,740 57,346 57,346 57,346 52,133 49,526 41,706 437,918 36,493 26,067 20,853 521,331Revised Projections 2006/07 0 15,819 34,102 41,086 39,795 63,987 65,385 66,924 56,322 383,420 45,506 50,499 41,905 521,331Actual 2006/07 0 15,819 34,102 41,086 39,795 63,987 41,835 43,789 48,045 328,458 28,651 19,370 0 376,479Cumulative Actual 2006/07 0 15,819 49,921 91,007 130,802 194,789 236,624 280,413 328,458 328,458 357,109 376,479 0 - Cum Actual as % of Budget 0% 3% 10% 17% 25% 37% 45% 54% 63% 63% 68% 72% 0% 72%

INFRASTRUCTURE HOUSING (Without Roll over)AS AT 15/02/07

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC

Grant Spending to Dec - Without Roll oversRm

Projection 2005/06

Actual 2005/06

Initial Projections 2006/07

Revised Projections 2006/07

Actual 2006/07

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EXPENDITURE cont…EXPENDITURE cont…INFRASTRUCTURE HOUSING (With Roll over)

Total per Month

APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC Total to

Dec JAN FEB MAR Total to 12

Feb

Projection 2005/06 18,327 25,871 25,911 29,491 29,284 36,817 54,761 65,713 29,206 315,381 48,180 59,132 55,482 478,175Actual 2005/06 8,544 20,347 21,622 21,802 30,968 34,034 41,425 39,327 59,206 277,275 6,882 23,974 69,794 377,925Initial Projections 2006/07 31,280 36,493 54,740 57,346 57,346 57,346 52,133 49,526 41,706 437,918 41,493 36,067 35,853 551,331Revised Projections 2006/07 with Rollovers 0 15,819 34,102 41,086 39,795 63,987 65,385 68,140 77,141 405,455 88,392 82,216 75,504 651,567Actual 2006/07 0 15,819 34,102 41,086 39,795 63,987 41,835 43,789 48,045 328,458 28,651 19,370 0 376,479Cumulative Actual 2006/07 0 15,819 49,921 91,007 130,802 194,789 236,624 280,413 328,458 328,458 357,109 376,479 0 - Cum Actual as % of Budget 0% 3% 9% 17% 24% 35% 43% 51% 60% 60% 65% 68% 0% 68%

15/02/2007

010,00020,00030,00040,00050,00060,00070,00080,000

APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC

Grant Spending to Dec - With Roll oversRm

Projection 2005/06

Actual 2005/06

Initial Projections 2006/07

Revised Projections 2006/07 withRollovers

Actual 2006/07

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KEY STRATEGIC CHALLENGES KEY STRATEGIC CHALLENGES • Delivery capacity constraints:Delivery capacity constraints:

– Limited Capacity of Contractors to deliver at large scale.Limited Capacity of Contractors to deliver at large scale.– Material supply constraints (bricks Supply do not match Material supply constraints (bricks Supply do not match

the demand )the demand )• Planning Coordination.Planning Coordination.

– Municipal infrastructure and Sectoral Alignment Municipal infrastructure and Sectoral Alignment

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• Land ConstraintsLand Constraints– Limitations in acquiring suitably located land in prime Limitations in acquiring suitably located land in prime

areas.areas.• Migration patternsMigration patterns

Increased Rate of urbanisationIncreased Rate of urbanisation• Incomplete (Blocked) projectsIncomplete (Blocked) projects

– Verification/audit and funding mobilizationVerification/audit and funding mobilization

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STRATEGIC INTERVENTIONSSTRATEGIC INTERVENTIONS• Contracting strategies – mix of highly capacitated and Contracting strategies – mix of highly capacitated and

emerging contractorsemerging contractors• Forward PlanningForward Planning• Unblocking Blocked ProjectsUnblocking Blocked Projects• Development of Social Infrastructure PlanDevelopment of Social Infrastructure Plan• Development of Multi-Year Settlement Plan and Housing Development of Multi-Year Settlement Plan and Housing

Chapter in municipal IDPsChapter in municipal IDPs• Partnering – Public Private PartnershipsPartnering – Public Private Partnerships• Acquisition of well located land for development of Acquisition of well located land for development of

integrated sustainable communities integrated sustainable communities

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CONCLUSIONCONCLUSION

THANK YOUTHANK YOU