Presentation to the Standing Committee on Appropriations 10 August 2011

Legislation Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996) Housing Act No.107 of 1997 The Housing Consumers Protection Measures Act, 1998 (Act No. 19 of 1998) The Housing Development Agency Act, 2008 (Act No. 23 of 2008) Public Finance Management Act, 1999 -Act No 1 of 1999 (As amended by Act 29 of 1999) The Social Housing Act, 2008 (Act No.16 of 2008) The Division of Revenue Act The Rental Housing Act, 1999 (Act No. 50 of 1999) Home Loan and Mortgage Disclosure Act, 2000 (Act No. 63 of 2000)

Adjusted appropriation 2009/10 2010/11 Allocation R`thousand Adjusted appropriation 2009/10 Allocation 2010/11 All Adjustments Adjusted allocation 1. Administration 167,770 176,175 45,013 221,188 2. Housing Policy, Research and Monitoring 72,175 45,907 -2,036 43,871 3. Housing Planning and Delivery Support 250,899 206,831 365 207,196 4. Housing Development Finance 13,380,695 15,598,126 76,269 15,674,395 5. Strategic Relations and Governance 164,659 174,442 -29,333 145,109 Total 14,036,198 16,201,481 90,278 16,291,759

Adjustments: Adjustment Estimate Rollover amounting to R82,678 million was approved. This amount comprises of: Programme 1: Administration :R7,1 million R1,9 million for the renewal of Microsoft licenses which was delayed due to outstanding documents from SITA. The renewal was paid in April 2011. R5,2 million for the purchasing of the server which was delayed as it had to be imported. Programme 2: Housing Policy, Research and Monitoring: R1,2 million Outstanding payments on tender VA 49/339: Impact Evaluation Study of the Upgrading of Informal Settlements Programme to the value of R1,2 million. Programme 4: Housing Development Finance: R34,9 million This amount is for a transfer payment to the Social Housing Regulatory Authority (SHRA). The creation of the bank account was delayed due to a long approval process. Programme 5: Strategic Relations and Governance: R7,7 million R7,7 million is for outstanding payments on the following tenders: Learning Strategies - closure of Thubelisha Homes; Kagiso Urban Management - business plan and establishment of SHRA; Policy development for SHRA; and Determination of institutional arrangement and establishment of Human Settlements Development Finance Institution. In addition Treasury approved an amount of R31.5 million for the outstanding sanitation expenditure that was not provided for within the Department’s 2010/11 budget allocation

Adjustments: After Adjustment Estimate Virements approved R27 million required to fund the Special Investigation Unit (SIU) for a National Audit. This Audit is an extension and upgraded mandate to the current agreement between the Department and the SIU under Proclamation R7 of 2007. R14,4 million was needed to fund the appointment of a services provider to develop and implement a turnaround strategy for the Department. R34 million which was needed to assist Servcon with its income tax liability. R7,6 million required to assist Servcon was given after the end of the financial year and could not be transferred.

2011 MTEF Allocation Revised estimate Medium term estimates   Revised estimate Medium term estimates Rand thousand 2010/11 2011/12 2012/13 2013/14 Administration 211,997 232,435 238,380 252,392 Housing Policy, Research and Monitoring 47,686 39,215 46,633 44,035 Housing Planning and Delivery Support 225,221 156,163 178,520 223,773 Housing Development Finance 15,649,195 21,995,147 24,253,309 25,947,289 Human Settlements Development Grant 15,041,763 14,941,516 15,599,437 16,457,407 Urban Settlements Development Grant 6,266,998 7,409,512 8,126,806 Housing Disaster Relief Grant 133,800 Departmental agencies 312,193 487,091 694,027 774,955 Rural Households Infrastructure Development 100,000 231,500 479,500 517,250 Strategic Relations and Governance 157,660 155,535 158,215 207,250 Total 16,291,759 22,578,495 24,875,057 26,674,739

Expenditure by programme as at 31 March 2011 R`thousand Expenditure Adjusted Allocation Variance % Spent 1. Administration 188,576 221,188 32,612 85% 2. Housing Policy, Research and Monitoring 32,637 43,871 11,234 74% 3. Housing Planning and Delivery Support 158,376 207,196 48,820 76% 4. Housing Development Finance 15,624,981 15,674,395 49,414 100% 5. Strategic Relations and Governance 87,386 145,109 57,723 60% Total 16,091,957 16,291,759 199,802 99%

Expenditure by economic classification as at 31 March 2011 R`thousand Expenditure Total Allocation Variance % Spent Compensation of employees 216,455 239,980 23,525 90% Goods and services 223,787 310,131 86,344 72% Interest Paid Financial Leases 173 751 577 23% Payments For Financial Assets 199 208 9 96% Transfer and subsidies 15,533,357 15,541,437 8,080 100% Payment for Capital Assets 117,985 199,252 81,267 59% Total 16,091,957 16,291,759 199,802 99%

4th Quarter expenditure performance: Programme Programmes Total Allocation Projections 4th Quarter Variance 1. Administration 221,188,328 62,987,310 60,125,622 2,861,688 2. Housing Policy, Research and Monitoring 43,871,000 11,224,653 10,256,695 967,958 3. Housing Planning and Delivery Support 207,196,000 59,353,748 53,626,317 5,727,431 4. Housing Development Finance 15,674,395,000 3,629,110,362 3,872,640,920 -243,530,558 5. Strategic Relations and Governance 145,108,672 30,715,862 37,718,320 -7,002,458 Total 16,291,759,000 3,793,391,936 4,034,367,875 -240,975,939

4th Quarter expenditure performance: Economic Classification Total Allocation Projections 4th Quarter Variance Compensation of employees 239,982,785 70,149,980 51,323,570 18,826,410 Goods and services 310,125,843 89,769,205 92,256,711 -2,487,507 Interest Paid Financial Leases 750,814 365,000 36,799 328,201 Payments For Financial Assets 208,493  - - Transfer and subsidies 15,541,439,302 3,590,496,001 3,815,932,302 -225,436,301 Payment for Capital Assets 199,251,763 42,611,750 74,818,492 -32,206,742 Total 16,291,759,000 3,793,391,936 4,034,367,875 -240,975,939

Human Settlements Development Grant Allocation Province 2010/11 Voted Adjustment during year  Total Adjusted Allocation Total Available to Provinces Prov .Treasury adjustments National Adjustments R'000 Human Settlements Development Grant Eastern Cape 1,598,646 - 39,000 1,637,646 Free State 1,300,691 (263,000) 1,037,691 Gauteng 3,771,831 115,000 3,886,831 KwaZulu-Natal 2,714,109 77,024 (80,000) 2,634,109 2,711,133 Limpopo 1,234,750 11,400 130,000 1,364,750 1,376,150 Mpumalanga 975,863 35,170 1,011,033 Northern Cape 273,260 174,000 447,260 North West 1,288,770 203 (100,000) 1,188,770 1,188,973 Western Cape 1,868,843 83,878 1,952,721 Total 15,026,763 207,675 15,000 15,041,763 15,249,438 Housing Disaster Relief Grant KwaZulu Natal 133,800 Grant Total 15,160,563 15,175,563 15,383,238

Human Settlements Development Grant Expenditure Province Total Available to Provinces Transfers to Provinces as per Total Adjusted Spent by Provinces Unspent Funds Spent as a % of total avialable   R'000 Human Settlements Development Grant Eastern Cape 1,637,646 1,503,816 133,830 91.8% Free State 1,037,691 1,037,685 6 100.0% Gauteng 3,886,831 3,855,064 31,767 99.2% KwaZulu-Natal 2,711,133 2,634,109 2,711,234 -101 Limpopo 1,376,150 1,364,750 1,264,584 111,566 91.9% Mpumalanga 1,011,033 975,863 - Northern Cape 447,260 446,793 467 99.9% North West 1,188,973 1,188,770 1,040,163 148,810 87.5% Western Cape 1,952,721 1,868,843 1,937,989 14,732 Sub Total 15,249,438 15,041,763 14,808,361 441,077 97.1% Housing Disaster Relief Grant Kwa-Zulu Natal 133,800 100% Grant Total 15,383,238 15,175,563 14,942,161

4th Quarter expenditure performance (HSDG) Spending analysis 1 January 2011 to 31 March 2011 Provinces   Total Available Year to date (1 January 2011 - 31 March 2011) Transferred Funds Spent by Provinces Spent as % of Total Available Spent as % of Transferred Funds R'000 Eastern Cape 1,598,646 433,482 328,872 21% 76% Free State 1,300,691 90,041 281,157 22% 312% Gauteng 3,886,831 1,016,831 1,031,793 27% 101% KwaZulu-Natal 2,714,109 644,423 1,223,139 45% 190% Limpopo 1,234,750 478,999 290,235 24% 61% Mpumalanga 975,863 190,863 318,578 33% 167% Northern Cape 273,260 199,775 174,146 64% 87% North West 1,188,770 146,228 273,490 23% 187% Western Cape 1,868,843 318,843 688,987 37% 216% Total 15,041,763 3,519,485 4,610,397 31% 131%

Services Sites Completed Housing Delivery Province Sites: Targets Services Sites Completed Houses: Targets Houses Completed Annual Target Total Delivery EC 8,000 12,979 22,000 10,784 30,000 23,763 FS 13,351 5,328 5,136 18,679 GP 6,791 21,866 33,129 25,117 39,920 46,983 KZN 8,001 4,028 25,002 20,991 33,003 25,019 LP 3,000 2,334 15,489 15,647 18,489 17,981 MP 5,409 2,159 9,656 9,860 15,065 12,019 NC 1,912 2,176 2,524 4,620 4,436 6,796 NW 5,046 6,376 15,996 16,816 21,042 23,192 WC 18,000 11,628 15,000 12,908 33,000 24,536 Total 69,510 63,546 144,124 121,879 213,634 185,425

Public Entities National Urban Reconstruction and Housing Agency Established in partnership with the Open Society Institute in 1995, the Agency provides finance to construction projects for affordable housing, subsidy housing, community facilities and related infrastructure.

Public Entities National Home Builders Registration Council The Council was established in terms of the Housing Consumers Protection Measures Act (1998), as amended, to represent the interests of housing consumers and to regulate the home building environment by promoting innovative home building technologies, setting home building standards and improving the capabilities of home builders. National Housing Finance Corporation The Corporation is mandated to make housing finance accessible and affordable to low to middle income households. The corporation is also responsible for mobilising and raising private sector funding for housing purposes.

Public Entities Rural Housing Loan Fund Housing Development Agency The Fund is mandated to provide repeat access to housing credit to low income rural households to support government’s effort to expedite housing delivery. Housing Development Agency The Agency is mandated to identify, acquire, hold, develop and release state and privately owned land for residential and community purposes and for the creation of sustainable human settlements.

Public Entities Social Housing Regulatory Authority The Social Housing Act (2008) provides for the establishment of the Social Housing Regulatory Authority to regulate the affairs of all social housing institutions and to stimulate the supply of social housing stock through the social housing investment programme.

Departmental Agencies & Accounts Public Entities Departmental Agencies & Accounts Expenditure Budget Variance % Spent NHFC - 1,000 0% Social Housing Foundation 6,621,000 100% Social Housing Regulatory Authority 186,771,000 Rural Housing Loan Fund 49,500,000 Housing Development Agency 69,300,000 SERVCON 34,000,000 41,600,000 7,600,000 82% Total 346,192,000 353,793,000 7,601,000 98%

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