Challenges to purchase/release of Land & Buildings for Sustainable Human Settlements Presentation to the Portfolio Committee on Public Services 10 September 2013

Outline  Outcome 8  HDA Role and Land Assembly Programme  Land Identification Status  Land Release Status  Public land  Communal land  Private land  HDA land  Challenges  Way forward

Outcome 8 targets Outcome 8 – Sustainable Human Settlements and Improved Quality of Household Life:  Release of state land for human settlements – 6250 ha  Informal settlements upgrading – households  Gap market – Units  Rental housing – Rental Units

HDA focus areas  The HDA was established to address the land acquisition and assembly process so as to accelerate housing delivery and human settlement development.  The two main objectives of the Agency are to:  Identify, acquire, hold, develop and release well-located land and buildings  Provide project management support and housing development services

Programme Support :Land Assembly identify suitable land for human settlements development: *Spatial Analysis (IDP, SDF, MHDP) * Site Inspection *Town Planning *Feasibilities (Land Geo- spatial Services) acquire such land and/ or facilitate it’s release to another organ of State: *Negotiation *Conveyancing * Rights/ title * Legal transaction hold such acquired land - with short, medium and long term outlook: *Security *Maintenance *Rates &Taxes *Service Charges prepare acquired land for development and release: * Dev Planning * Rights/ Bankability *Project packaging *Investment plan LAND ASSEMBLY PIPELINE

Programme Support :Land Assembly Public sector National Public Works RDLR SOCs: “Purchase” Provincial Housing Boards Provincial Entities: “Purchase” Municipal Municipal-owned Commonages Municipal Entities: “Purchase”? Private Sector Private individuals Trusts etc. Private Companies Outright purchase (sale) Expropriation “Donation”

Land released/acquired for human settlements

Land Identified and requested for human settlement development DPW – 24,266 ha DPDLR – 16,068 ha SOC (mostly Transnet and Denel) 2430 ha at an estimated cost of 341m

Released public land

SOC properties purchased SOC Acquired land ProvinceMunicipalityExtent (ha)CostFunding Earmarked for (HS prog) Potential yield (units) GautengCoJ0.3964R HDARental750 CoTshwane R HDAISHS1600 FstateMangaung45.93R ProvinceISHS1040 Matjabeng2.42R ProvinceRental240 Dihlabeng5.2931R ProvinceRental156 Moqhaka R ProvinceISHS1420 WcapeSwartland R HDAISHS100 EcapeLukhanji5.1924R HDARental1420 Total R SOC properties purchased

Summary of Identified Private Land Per Province

HDA LAND HOLDING ProvinceMunicipalityExtent (ha) LimpopoBela GautengCoJohannesburg CoTshwane FstateMangaung45.93 Matjabeng2.42 Dihlabeng Moqhaka WcapeSwartland CofCape Town EcapeLukhanji Total HDA LAND HOLDING

HDA land release/acquisition HDA doing project packaging of land for mixed/rental housing development on request from provinces & with support of municipalities Buildings being released to Social rental housing sector for development & management Release / development by HDA dependent on: Provinces/municipal requesting HDA support with implementation Infrastructure availability/provision Capacity to develop land/buildings locally Planning for land – land/project pipeline interface

Contributing to creating Sustainable Human Settlements  Most land released is made available to municipalities or HDA  Land release is conditional to:  Land being used for human settlement development only  Land development being concluded within a defined period  HDA has monitoring role together with DHS to ensure land released is developed for human settlements

Approach to Release of Communal Land for Human Settlements Obvious challenges  Land consideration payable- some traditional leaders require compensation  Tradeability in the open market  Security to obtain finance or mortgage Approach Communal Land is state land allocated to traditional authorities DRDLR is the nominal owner Community Resolutions required prior to release of land for development- sometimes problematic to secure due to community dynamics Informal land rights holders also recognised e.g. for grazing, agriculture etc. Community must agree to envisaged development

Summary – Public & Communal land release  Exceeded Outcome 8 target of 6250ha  potential housing opportunities from the 7315ha of Outcome 8 land specifically  With SOC = units from 8165ha requested  Land release primarily from DRDLR  Some strategic land released from NDPW  Public enterprises land acquisition requires compensation/funding  Provincial state land departments involvement/alignment in the process is happening but needs more attention  17% of land requested from State departments has been released to date

ChallengesMitigation measures Private land: Capital funding required for land acquisitions Working with DHS and provinces to improve forward planning & align required funding for land linked to a Nationally agreed strategy Public land: Land release turn-around time Verification of ownership of land Competing interests on the land Land claims on some prioritised properties Changes within Departments (staff & plans) Mandate to release with other Departments Key approvals and sign-off required to ensure compliance of state land release Joint Co-ordinating Committee (JCC) monitors and assist with engagements between govt. departments. Different govt. departments have competing interests on the same land – negotiation of these interests HDA/DHS identify and request; NDW/RDLR/PE/SOC = need to approve release Key challenges experienced in the release of land for human settlements

ChallengesMitigation measures HDA land release: Infrastructure planning & availability Land/project pipeline interface Local capacity Engagement with other govt dept. to ensure positioning & alignment of planning for project development Assistances to provinces with planning, preparation & technical capacity to facilitate project development General Lack of planning and preparation for the acquisition and release of land Working with DHS and provinces to improve forward planning & align required funding for land linked to a Nationally agreed strategy Support work provided by the HDA to province and municipalities to assist with planning, preparation, systems & procedures, and technical capacity Limited to provinces that choose to utilise the support and involve the HDA Key challenges experienced in the release of land for human settlements

 Despite the challenges the HDA has exceeded the Outcome 8 target of ha of public land released for human settlement development  A National Land Assembly Strategy for Human Settlements and accompanying land pipeline is being developed to: Facilitate forward planning for land based on human settlement needs/priorities Justify proper funding and release of land by all spheres Position and align support and role of the HDA in the process Ensure focus on National priorities – Mining towns, SIPs, Priority projects, Informal settlement upgrading Avoid missed opportunities The Way Forward