1 SCOTTSDENE/KRAAIFONTEIN SELF HELP PROJECT, WEDNESDAY, 23 FEBRUARY 2011 HUMAN SETTLEMENTS PORTFOLIO COMMITTEE MEETING

2 STRUCTURE 1.BACKGROUND OF THE SCOTTSDENE SELF HELP PROJECT 2.PROCESS FOLLOWED TO IMPLEMENT THE PROJECT 3.CHALLENGES 4.RECOMMENDATIONS

3 1. BACKGROUND The Scottsdene community brought their plight to the attention Human Settlements Portfolio Committee’s during a community meeting in Wallacedene, 04 February 2010 Plight – The community allege that there has been no housing development implemented in the area since the late seventies The Scottsdene Self Help project was initiated in 1988 It was during the transitional period, prior to the enactment of the Housing Act in 1997 (No. 107) The main objective of these self help projects was to assist the communities to built houses for themselves

4 BACKGROUND continued… Provincial Government advanced loans to the Local Authority (LA) The LA would in turn re-issue the loans to beneficiaries (purchasing of building materials) and beneficiaries will then built their own houses These loans were referred to Phase 1 loans whereby beneficiaries were given material to construct homes for themselves Beneficiaries had to repay the loans over a period of twenty years (based Treasury repayments stipulations, Circular 2,1987)

5 BACKGROUND continued… Loan between the LA and the Province was captured on the Debtor System Province did not have details of the loans (to beneficiaries) because they were administered by the respective LA The details of the beneficiaries were captured on the National Housing Database The Phase 1 loans were phased-out in 1998 and the Extended Discount Benefit Scheme (EDBS) came into existence and later on the Enhanced Extended Discount Benefit Scheme (EEDBS) was introduced In December 2005, the Enhanced Extended Discount Benefit Scheme (EEDBS) was enacted

6 BACKGROUND continued… EEDBS is a National policy aimed at facilitating the transfer of public housing stock to occupants and supersedes the previous 'Discount Benefit Scheme' and 'Phasing Out Programme' The houses built through self-help schemes were identified as part of the National Sales Campaign (Circular 17 of 1983) and beneficiaries qualified for the EDBS/EEDBS EEDBS was applicable to state financed properties occupied before July 1993, i.e. stands or units contracted by June 1993 and allocated to individuals by March 1994

BACKGROUND continued… The purpose of EDBS/EEDBS was the transfer of old stock to the LA or the individual who was granted a loan Beneficiaries who are still sales debtors, could settle the balance on loan utilizing EDBS/EEDBS 7

8 2. PROCESS The LA firstly serviced the land, sub-divided it and allocated it to beneficiaries who will then build for themselves (Beneficiary list with erf numbers but there were no id numbers available)) The LA utilized the funding (loan) from the Provincial Government to purchase material on behalf of beneficiaries The project was implemented in three phases The first and second phases have been completed Prior to the implementation of the 3 rd phase (1993), funding was no longer forth coming from Province

9 PROCESS continued… According to beneficiaries, Municipality committed to source funding from National and continue with the project Phase 3 beneficiaries were allocated their plots but had to wait for funding from the Local Government Project was ultimately stalled due to lack of funding Community constantly engaged the Local Authority and Province without success

PROCESS continued… In 2007, the allocated sites for Phase 3 beneficiaries was once again sub-divided by Province without consultation with the community Private development (Scottsdene Show Houses) was implemented for gap housing (units sold for R ) Scottsdene community did not benefit nor participate from the project and the majority of the community cannot afford the houses built 10

11 3. CHALLENGES TO DATE The housing needs of Phase 3 beneficiaries have not addressed Land given to them by the LA is no longer theirs The community has challenged this (Scottsdene show houses) development on different occasions, without success The beneficiaries highlighted no housing development has taken place in the area since 1987 (besides the implementation of this self help project) The surrounding areas to Scottsdene i.e. Scottsville and Wallacedene also require houses The old stock has not been transferred to the beneficiaries even though they have been living in the houses for more than 30 years

12 4. RECOMMENDATIONS Conduct a detail investigation on the area and the project Need for the spheres into look into the issue and create sustainable human settlement for the community of Kraaifontein

13 Thank you