SABELO MNGUNI

23 JUNE 2015

Committees Section

OVERVIEW OF HOUSING POLICY AND

PROGRAMMES

Sabelo Mnguni

Committees Section

PRESENTATION OUTLINE

• Ten year review of the housing programme ( 1994 to 2004) - achievements and challenges

• Outcomes of an extensive consultation process • The Goals of the Comprehensive Plan • The various interventions contained in the Plan • The National Housing Code: Background • National Housing Programme interventions

Committees Section

THE 2004 REVIEW OF THE TEN YEARS OF HOUSING PROGRAMME

• Unintended consequences and challenges: • Peripheral development of low cost housing continued

Apartheid settlement patterns• Poor quality product and settlements lacking social

and economic infrastructure• Inadequate community participation

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THE 2004 REVIEW OF THE TEN YEARS OF HOUSING PROGRAMME (CONT….) • Corruption and mal-administration • Slowdown in delivery • Under spending of housing budgets• Limited and decreasing private sector participation • Increasing backlog owing to new household formation and

migration pressures • Growing informal settlements

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OUTCOMES OF A COMPREHENSIVE CONSULTATION PROCESS

• Policy principles in the Housing White Paper, 1994 continue to underpin the programme

• Need to shift to a demand driven approach• Emphasis on quality of the product and the living

environment• Need to strengthen the contract with civil society

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Goal: “Human Settlements which are economically, socially and

environmentally sustainable”

(Plan approved by Cabinet 1 September 2004)

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THE COMPREHENSIVE PLAN, 2004

FOCUS AREAS:• Creating quality living environments• Needs oriented approach• Building a non-racial, integrated society • Unblocking delivery constraints • Building capacity • Rooting out corruption and mal-administration

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THE INTERVENTIONS

• Creating quality living environments• A need oriented approach • Building and integrated non-racial society • Unblocking delivery constraints • Rooting out corruption and mal-administration • Investigative Unit established and operational – Linked to

Special Investigation Unit (SIU)• Upgrading of Housing Subsidy System and Housing

Demand Database• National Monitoring and Evaluation Unit

Committees Section

THE NATIONAL HOUSING CODE

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THE NATIONAL HOUSING CODE

• Is a required in terms Section 4 of the Housing Act, 1997• Guides the housing development programme• Contains all approved Housing programmes and

suggested guidelines for implementation • The discretionary guide-lines provide maximum flexibility to

housing practitioners and decision makers (MECs)

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THE INTERVENTIONS

• Financial Interventions• Social and Rental Interventions• Rural interventions • Incremental Interventions

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1. FINANCIAL INTERVENTIONS: INDIVIDUAL SUBSIDY

• Programme intended to stimulate the growth of secondary housing market

• For individual households who wish to apply for a housing subsidy to purchase an existing house, or

• To purchase a vacant stand and enter into a building contract for the construction of a house

• the latter subsidy option may only be awarded to households that have entered into loan agreements with a financial institution

• Credit linked and non-credit linked

Committees Section

2. FINANCIAL INTERVENTIONS: FINANCE LINKED INDIVIDUAL SUBSIDY PROGRAMME

• Income categories - R3500- 15000• Gap- market families • Is a subsidy towards the reduction of home loan – not for transfer

fees and administration fees • Negative relationship (income and subsidy) • Application process: Provincial Dept or municipality

Financial institutions • Non-qualifiers – usually R3500-7000 - can buy serviced stands or

rental option

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3. FINANCIAL INTERVENTIONS: ENHANCED EXTENDED DISCOUNT BENEFIT SCHEME

• EEDBS is for transfer of public housing stock to qualying occupants

• Seeks to ensure tenure security • Entails discounting of an amount up to the prevailing

housing subsidies on the balance of the properties in question

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4. FINANCIAL INTERVENTIONS: ACCREDITATION OF MUNICIPALITIES

• Programme is aimed at Municipal to administer National Housing Programmes

• A progressive process of delegation, evaluated against pre- agreed criteria, leading to eventual assignment of all the functions by formal proclamation

• Does not include the power to design housing programmes to be funded from national housing subsidy funds

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5. FINANCIAL INTERVENTIONS: OPERATIOINAL CAPITAL BUDGET PROGRAMME

• Provide for the application of a certain percentage of voted provincial housing funding allocation to support the implementation of national and provincial housing programmes

• For the appointment of external expertise to augment capacity with particular emphasis on, amongst others:

• The Informal Settlements Upgrading Programme• Projects that facilitate integrated delivery

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6. FINANCIAL INTERVENTIONS: RECTIFICATION OF PRE 1994 AND POST HOUSING STOCK

• To facilitate the improvement of certain state financed residential properties

• Pre 1994 - poor workmanship, not conforming to norms and standards

• Post 1994 – those houses not enrolled with NHBRC• Could be utilize for: • Renovation and/ upgrading• Complete construction of structurally damaged dwellings • Service upgrading

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5. FINANCIAL INTERVENTIONS: SOCIAL AND ECONOMIC AMENITIES PROGRAMME

• Promote provision of certain basic social & economic amenities in existing townships and new housing areas

• Grants to Municipality to fund the following:• Community halls • Parks • Sport fields• Taxi rank facilities • Informal trading areas

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6. FINANCIAL INTERVENTIONS: HOUSING CHAPTERS OF THE IDP

• To support housing planning as a component of the Integrated Development Plans

• Municipal housing needs assessed and defined• Community participation a key component of this process • Local situations of dictate local solutions • Councillors to also be actively involved in the planning

process

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SOCIAL & RENTAL INTERVENTIONS

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1. S&R INTERVENTIONS: SOCIAL HOUSING

• A rental or co-operative housing option which requires institutionalized management

• Contributes to addressing structural, economic, social and spatial dysfunctionalities

• Promotes non-racial and integrated society in sustainable human settlements

• Social housing projects in designated restructuring zones e.g. economic, spatial and social objectives

• Targets income groups R3500 – R7500

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2. S&R INTERVENTIONS: INSTITUTIONAL HOUSING

• Targeted at housing institutions that provide tenure arrangements alternative to immediate ownership ( e.g. rental, installment sale, share block or co-operative tenure) to subsidy beneficiaries

• The programme applies outside of restructuring areas of Social Housing Programme

• Government grants to housing institutions to acquire, development and hold affordable rental housing accommodation for minimum of four years

• After four years, beneficiaries can take transfer and covert to individual ownership

• Targets income groups earning below R3500

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3. S&R INTERVENTIONS: COMMUNITY RESIDENTIAL UNITS

• Public sector residential accommodation • Facilitate the provision of secure, stable rental tenure for

lower income persons • Target persons & households earning below R3500 not

able to access formal market private rental & social rental market

• Replaces National Hostel Re-development programme• Covers hostels, balance the public stock that cannot be

transferred• Cannot be sold or transferred to individual residents

anytime

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RURAL INTERVENTIONS

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1. RURAL INTERVENTIONS: FARM RESIDENTIAL PROGRAMME

• A flexible approach to the needs of farm residents to provide secure tenure to farm workers

• Practicable development options: Provision for rental as well as ownership options

• On farm and off-farm development options • Not for seasonal workers• The Intergrated Residential Development Programme

(IRDP) is applicable

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2. RURAL INTERVENTIONS: INFORMAL LAND RIGHTS

• Facilitate project based housing development on communal land tenure secured in terms of the CLARA, 2004

• Not accessible on an individual basis• Housing development for households in rural areas who

enjoy functional security of tenure (communal tenure) • Beneficiaries should have uncontested land rights on State

or Communal land• Funding for: construction of new houses, repairs or

upgrading, or upgrading • Where houses are adequate, subsidy can be used for

provision of residential engineering services or other housing purposes

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INCREMENTAL INTERVENTIONS

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1.INCREMENTAL INTERVENTIONS: CONSOLIDATION SUBSIDY

• Provides for the completion of houses on serviced sites received through state housing schemes pre 1994

• Applicable to serviced sites that were obtained on the bases of ownership, leasehold and deed of grant, and must be used to construct a house complying to the current norms and standards

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2.INCREMENTAL INTERVENTIONS: INFORMAL SETTLEMENT UPGRADING

• To upgrade the living conditions of poor people by providing secure tenure and access to basic services and housing

• An area wide/community participation • In situ upgrade of informal settlements • Relocation recommended as the last resort – after

consideration of numerous factors• Housing construction from a range of options • Community involvement a key requisite

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3.INCREMENTAL INTERVENTIONS: EMERGENCY HOUSING ASSISTANCE

• Provides temporary housing relief to households in stress as a first phase towards a permanent housing solutions

• The programme applies in the following cases:• Second phase disaster intervention• Persons living in dangerous conditions • The totally destitute • To assist households facing the threat of imminent

evictions

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4.INCREMENTAL INTERVENTIONS: ENHANCED PEOPLE’S HOUSING PROCESS

• To assist households to access housing subsidies with technical, financial, logistical and administrative support to build their own houses

• Communities take ownership of the process- initiator and driver of process

• Houses better suited to the needs of the individuals

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5.INCREMENTAL INTERVENTIONS: INEGRATED RESIDENTIAL DEVELOPMENT PROGRAMME

• To promote social, spatial and economic integration• To facilitate the development of projects with a variety of

land uses and income groups ( subsidy and bonded housing) which make for sustainable communities \

• To improve/simply subsidy beneficiary administration • To facilitate the participation of the private sector in low

income housing • Requires integrated planning: race, income, and

infrastructure

Committees Section

5.INCREMENTAL INTERVENTIONS: INEGRATED RESIDENTIAL DEVELOPMENT PROGRAMME (Cont……)

• A phased approach is as followed:

FIRST PHASE: STAND PROVISION • The creation of the serviced stands takes place during

phase 1

SECOND PHASE: HOUSING CONSILIDATION • Beneficiaries subsidies are approved during the housing

consolidation phase only• Housing Consolidation is linked undertaken from the

basket of options – FLISP, Project based housing, etc

Committees Section

THANK YOU FOR YOUR ATTENTION