1. SABELO MNGUNI
23 JUNE 2015

2. OVERVIEW OF HOUSING POLICY AND PROGRAMMES
Committees Section
OVERVIEW OF HOUSING POLICY AND PROGRAMMES
Sabelo Mnguni

3. 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

4. THE 2004 REVIEW OF THE TEN YEARS OF HOUSING PROGRAMME
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

5. THE 2004 REVIEW OF THE TEN YEARS OF HOUSING PROGRAMME (CONT….)
Committees Section
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

6. OUTCOMES OF A COMPREHENSIVE CONSULTATION PROCESS
Committees Section
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

7. (Plan approved by Cabinet 1 September 2004)
Committees Section
Goal: “Human Settlements which are economically, socially and environmentally sustainable”
(Plan approved by Cabinet 1 September 2004)

8. THE COMPREHENSIVE PLAN, 2004
Committees Section
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

9. THE INTERVENTIONS Creating quality living environments
Committees Section
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

10. THE NATIONAL HOUSING CODE
Committees Section
THE NATIONAL HOUSING CODE

11. THE NATIONAL HOUSING CODE
Committees Section
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)

12. THE INTERVENTIONS Financial Interventions
Committees Section
THE INTERVENTIONS
Financial Interventions
Social and Rental Interventions
Rural interventions
Incremental Interventions

13. 1. FINANCIAL INTERVENTIONS: INDIVIDUAL SUBSIDY
Committees Section
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

14. Committees Section
2. FINANCIAL INTERVENTIONS: FINANCE LINKED INDIVIDUAL SUBSIDY PROGRAMME
Income categories - R
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 R can buy serviced stands or rental option

15. 3. FINANCIAL INTERVENTIONS: ENHANCED EXTENDED DISCOUNT BENEFIT SCHEME
Committees Section
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

16. 4. FINANCIAL INTERVENTIONS: ACCREDITATION OF MUNICIPALITIES
Committees Section
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

17. 5. FINANCIAL INTERVENTIONS: OPERATIOINAL CAPITAL BUDGET PROGRAMME
Committees Section
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

18. Committees Section
6. FINANCIAL INTERVENTIONS: RECTIFICATION OF PRE 1994 AND POST HOUSING STOCK
To facilitate the improvement of certain state financed residential properties
Pre 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

19. 5. FINANCIAL INTERVENTIONS: SOCIAL AND ECONOMIC AMENITIES PROGRAMME
Committees Section
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

20. 6. FINANCIAL INTERVENTIONS: HOUSING CHAPTERS OF THE IDP
Committees Section
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

21. SOCIAL & RENTAL INTERVENTIONS
Committees Section
SOCIAL & RENTAL INTERVENTIONS

22. 1. S&R INTERVENTIONS: SOCIAL HOUSING
Committees Section
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

23. 2. S&R INTERVENTIONS: INSTITUTIONAL HOUSING
Committees Section
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

24. 3. S&R INTERVENTIONS: COMMUNITY RESIDENTIAL UNITS
Committees Section
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

25. Committees Section
RURAL INTERVENTIONS

26. 1. RURAL INTERVENTIONS: FARM RESIDENTIAL PROGRAMME
Committees Section
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

27. 2. RURAL INTERVENTIONS: INFORMAL LAND RIGHTS
Committees Section
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

28. INCREMENTAL INTERVENTIONS
Committees Section
INCREMENTAL INTERVENTIONS

29. 1.INCREMENTAL INTERVENTIONS: CONSOLIDATION SUBSIDY
Committees Section
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

30. 2.INCREMENTAL INTERVENTIONS: INFORMAL SETTLEMENT UPGRADING
Committees Section
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

31. 3.INCREMENTAL INTERVENTIONS: EMERGENCY HOUSING ASSISTANCE
Committees Section
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

32. 4.INCREMENTAL INTERVENTIONS: ENHANCED PEOPLE’S HOUSING PROCESS
Committees Section
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

33. Committees Section
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

34. 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

35. THANK YOU FOR YOUR ATTENTION
Committees Section
THANK YOU FOR YOUR ATTENTION