Presentation to Joint Budget Committee on: Urban Renewal and Rural development NATIONAL DEPARTMENT OF HOUSING

1. Urban Renewal President in his 2002 Parliamentary address announced Government’s intention to: Increase densities in urban areas; Address the the rental demand in urban areas; and Intentions to facilitate inner city regeneration. The following budget vote of the Minister announced a grant of R27 000,00 per unit and allocated funds.

1. Urban Renewal continue The Department initiated the development of a suitable strategy to operationalise the mandate. The Strategy has two main components: The social Housing policy; and The capital programme to finance projects

1. Urban Renewal continue The Social Housing Policy: We need sustainable housing institutions to develop, hold and administer the housing stock The policy will facilitate intervention to ensure sustainable, well managed institutions

1. Urban Renewal continue The Main components of the policy are: An accreditation process; Three funding grants from Government- –Pre-establishment grant; –Establishment grant; –Capacity building grant/assistance

1. Urban Renewal continue A obligatory risk insurance scheme; A Social Housing Act

1. Urban Renewal continue The Medium Density Housing development programme: –Focus will be on urban areas; –To develop well located land (integration); –To optimally utilise existing infrastructure; –To maximise private sector involvement; and –To provide for as wide as possible range of options.

1. Urban Renewal continue The location: –This dimension deals with the issues of- Well located land; Integrated development principles; and Optimal used of existing infrastructure. Depart. Is in negotiations with LA on the principle and responsibility of land for housing –We propose we take full responsibility and pay market price without negative effect for grant

1. Urban Renewal continue The built form deals with: –The provision of a range of options; –From group-housing to multi level walk-ups; –From rooms to family units; and –From short term to monthly contracts

1. Urban Renewal continue Tenure deals with: –Rental as the main focus; –Including collective ownership; –Ownership could be considered later; –Individuals will have access; –Non RSA citizens will have access; and –Excluding immediate individual ownership

1. Urban Renewal continue Affordability deals with: –The definition of the target group; –Effective and accurate feasibility studies; –Mix resident profile; –New definition of the “beneficiary” –Access to credit; and –Assistance by municipalities.

1. Urban Renewal continue The funding framework –Will be a separate National Housing Programme; –Will take the from of a capital grant to accredited institutions; –Will be based on the approved principle that 50% of the capital cost will be grant funding; and –Will depend on nature of development elected

1. Urban Renewal continue The Time frame –Timing is linked to social housing policy process- implementation 1 April 2004; –The Bill process could compromise planning- Social Housing Corporation and the required accreditation must be established before implementation

1. Urban Renewal continue Other urban renewal initiatives: Various projects were financed through the Human Settlement Redevelopment Programme ranging from: Detailed planning exercises Rehabilitation of houses damaged through political violence Infrastructure upgrading initiatives Providing essential community facilities and amenities Development/rehabilitation of public open spaces

1. Urban Renewal continue HSRP has supported 55 urban renewal projects to the value of R143 million

2. Rural Housing Development Housing development in rural areas is a national priority Housing assistance through the Housing Subsidy Scheme realises in a variety of forms in these areas: –Project linked Subsidies- ownership –Rural Subsidies: Informal Land rights –Individual subsidies- ownership –People’s Housing process- ownership/Rural programme –Credit is augmented by the RHLF

2. Rural Housing Development continue Indicators of progress to date: projects –This represent project linked and Rural subsidies Approximately 28,7% of all projects compared to Urban oriented projects

2. Rural Housing Development continue The Human Settlement Redevelopment Programme was also used to finance 17 rural development node projects to the value of R34,5 million