FRAMEWORK FOR THE IDENTIFICATION & ACQUISITION OF LAND FOR HUMAN SETTLEMENTS DEVELOPMENT 4 AUGUST 2015

Purpose To share with the Portfolio Committee the details of a Practice Note that has been developed by the NDHS. The Practice note is to be applied by Provinces and Municipalities in dealing with the identification and acquisition of suitable and well located land for Human Settlement Development. CONFIDENTIAL

Outline of Practice Note Purpose Background Objectives Principles Parameters for Land Identification Key Considerations before the disposal Institutional Arrangements Joint Evaluation Panel Sanctions CONFIDENTIAL

Background Government has identified the need to create a framework for coordinating land identification and acquisition processes in order to facilitate the achievement of the goal of integrated sustainable human settlements. The lack of a framework is regarded as the main contributing factor in creating unintended consequences and imposing high costs on households and the economy. The Director General has advised that the NDHS to develop this practice note given that the myriad of South African policies and legislative frameworks that serve as strategic guidelines in the identification and acquisition of well-located land in the Republic of South Africa. The Department in partnership with the HDA is developing a coherent & inclusive approach to land which would include framework for acquisition and sector departments i CONFIDENTIAL

Objectives To ensure that Provinces and Municipalities coordinate the land identification and acquisition processes that remain fragmented across Provinces and Municipalities. To facilitate the process of the identification and acquisition of well located land and eliminate the acquisition of land at exorbitant prices that are done outside the mandate of the HDA. To improve coordination with various sector departments that are expected to contribute to a coherent land acquisition programme that seeks to enhance the delivery of sustainable human settlements including the Land Reform Programme of South Africa. To eliminate the practice of disposing suitable and well located municipal land and expectation that the Department and Housing Development Agency will later acquire such land for human settlements development. CONFIDENTIAL

Objectives ... Cont.. To channel the allocations for land acquisition that is available through Provinces and Metropolitan municipalities through the other sources of revenue including grants such as HSDG & USDG To assist government to make measurable progress towards breaking apartheid spatial patterns. To grant an option of a first right of refusal to the Department in instances where public and municipal land that is well located and suitable for human settlements is being disposed by government. To provide defined parameters that will be used for the identification and acquisition of land that is suitable for human settlements. CONFIDENTIAL

Principles Planning Negotiations Value for money Valuations Ring fencing Rehabilitation Cooperative Governance Partnership with the Private Sector CONFIDENTIAL

Parameters for Identification Land parcels shall have access to social amenities, economic opportunities and employment centres Land parcels so identified shall promote economic integration. Land so identified shall reflect key historical, social and economic linkages. Land shall promote existing survival strategies of targeted community and with minimum possible impact of relocation. Land shall have existing transportation networks or at least have planned transportation networks within a five-year timeframe. CONFIDENTIAL

Parameters for identification... Cont Land shall have envisaged and or planned commercial and industrial developments envisaged within a five-year horizon. Land shall have available infrastructure – physical and natural resources. Land shall be suitable in terms of geotechnical circumstances. The land that is at the periphery shall be used for its most excellent use. The land so identified shall promote the progressive upgrading of informal settlements. Land shall combat urban sprawl by promoting higher densities of development and mixed uses in strategic locations; CONFIDENTIAL

Key considerations before disposal All stakeholders shall consult the National Department and or offer the portion of well located that is suitable for human settlements before it is actually disposed in an open market. All offers shall be made in writing and contain valuation certificates and or at least clear details of a property description, size, location, GIS coordinates, ownership details and value. The Department and the Housing Development Agency shall prepare a register of such land. CONFIDENTIAL

Institutional Arrangements Disburse the annual grant funding allocations for land acquisitions for human settlement development. Support the preparation of a National Multi Year Land Acquisition Plan for Human Settlements. Receive public written offers on land that is suitably located that can be utilized for human settlement prior to disposing such land assets in the open market. Lead the development and review of the approach to land identification , acquisition and design other suitable policy frameworks. Monitor the implementation of the practice note. Support provinces and municipalities in identifying and acquiring well located and suitable land. Consult the Council of Valuers which shall assist the Department and the HDA in achieving value for money when such parcels are procured. CONFIDENTIAL

Joint Evaluation Task Team Review land identification plans of both provinces and municipalities against the Master Spatial Plan. Engage with Provinces and Municipalities regarding intentions to dispose land. Collate national information and provide a benchmark on land acquisition. Monitor the land acquisition transactions in the residential Property market and the reports of the HDA as reflected by the Provinces and, Municipalities Identify challenges and recommend remedial action where feasible. Report regularly through the HDA to MinMec and Technical MinMec regarding progress made in transforming human settlements through land transactions. CONFIDENTIAL

SANCTIONS It is anticipated that there may be disputes in relation to the first right to refusal on the land suitable for human settlements. Such disputes shall be resolved through the Minister of Human Settlements in Consultation with the Provincial Executive. The Minister shall partner with the Minister of COGTA, DRDLR and the Presidency to table regular reports on disputes to the President. CONFIDENTIAL

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