Presentation to the Human Settlement Portfolio Committee Cape Town, 12th June 2009

MANDATE   The Housing Development Agency (HDA) has been established to facilitate and expedite the development of large scale integrated, sustainable human settlements with all required socio-economic physical infrastructure.

METHODOLOGY The HDA will achieve its mandate by:   The HDA will achieve its mandate by: Ensuring the Availability of Land Effectively Structuring Projects Ensuring Appropriate Government Funding Flows Promoting an appropriate policy and regulatory framework  

LAND HDA will ensure the availability of land for developments through: The establishment of an intergovernmental land inventory and information management system for human settlement planning and development Acquiring, and/or facilitating the acquisition and release of strategically situated land and buildings for development Supervising and monitoring the development of land

PROJECT MANAGEMENT HDA will facilitate the effective structuring of projects and oversee their implementation through: Facilitation of the required capacity, technical skills and expertise at provincial and local government spheres in order to plan and implement such projects/programmes Coordination of land release, planning and funding for acceleration of the development of large scale human settlement developments and/or programmes Facilitation of the planning process to ensure proclamation of land for integrated human settlement

FUNDING Land and building acquisition HDA will attempt to ensure appropriate government funding flows and subsidies for: Land and building acquisition Planning and proclamation process Bulk and internal infrastructure development Social infrastructure development Top structures

POLICY AND REGULATION HDA will promote an appropriate policy and regulatory framework which will encourage and enable the planning and implementation of large scale, sustainable human settlement developments through cooperative inter-governmental arrangements and the active participation of the private sector. 7

THE FIRST HUNDRED DAYS September 2008: Act promulgated September 2008: Project team to drive establishment appointed with both departmental and external members March 2009: Official Launch Four pilot projects announced covering a potential 100,00 Units with a total investment of approximately R7 billion CEO appointed and commences part time employment Intergovernmental Protocols negotiated with KZN/ Ethekwini; Northern Cape Province; Limpopo Province and Lephalale Local Authority; Gauteng and City of Johannesburg Agreement to transfer land and buildings from Servcon to HDA. Four buildings will be transferred to Johannesburg Housing Company

THE FIRST HUNDRED DAYS CONT: March 2009: Treasury approves HDA as a section 3A public entity April 2009: 10 member Board gazetted CFO commences full time employment; bank accounts opened; NDoHS transfers first tranche of operational funding; R972 million Capital Funding for pilot projects approved to provinces; Land Sale Agreement concluded with Western Cape Department of Public Works and Land Availability Agreement concluded with Western Cape Department of Local Government and Housing May 2009: CEO commences full time employment June 2009: General Managers for Intergovernmental Relations and for Projects and Programmes commence full time employment; Discussions commence on arrangements for take over of the N2 Gateway and Zanemvula Projects from Thubelisha Homes as of 1st August 2009. 9

LAND ACQUISITION HDA currently has rights to 161 parcels of land totalling approximately 5000 hectares. The land is subject to an audit, valuation and feasibility study.

OPERATIONAL GRANT SUMMARISED INCOME STATEMENT: 2009/2010 – 2011/2012 Description March 2010 R March 2011 Revenue 57 500 000.00 81 593 999.00 104 100 000.00 Grants: National Government 49 650 000.00 69 300 000.00 89 100 000.00 Interest Income 7 850 000.00 12 293 999.00 15 000 000.00 Expenditure Planning & Liaison 9 121 200.00 13 708 336.00 14 474 155.00 Project Management 16 780 000.00 24 969 000.00 44 411 007.00 Office Costs 11 978 800.00 13 418 333.00 14387 589.00 Salaries & Emoluments 19 620 000.00 29 498 330.00 30 827 249.00 NET (SURPLUS)/DEFICIT 0.00

ISSUES Acquisition of State Owned Land Market Value vs Historic Cost Coordination with other state departments, especially around bulk servicing Funding Flows Creation of Priority Development Areas

Thank You