Strategic Plan 2014 – 2019 and Annual Performance Plan 2015/16 Placed Strat plan and APP on shared drive. Also other research documents, legislation etc Also shared calendar hope all accepted it. Has important deadline dates documents eg Q report. Hope planning. Later sessions look at reports and plans. Strategic Plan 2014 – 2019 and Annual Performance Plan 2015/16 Portfolio Committee on Human Settlements - 26 March 2015

Table of Contents Number Title 1 The SHRA’s mandate 2 The goal of the social housing programme 3 The social housing value chain 4 The SHRA’s value chain 5 The SHRA’s output, outcome and impact 6 The SHRA’s strategic outcome oriented goals and objectives 7 The SHRA’s programmes 8 Strategic Plan 2014 - 2019 9 Annual Performance Plan 2015/16 10 Medium Term Expenditure Framework 11 2015/16 Budget 12 2015 – 2018 Budget 13 Challenges and mitigation measures

The SHRA’s mandate The SHRA’s mandate is derived in terms of sections 11 and 12 of the Social Housing Act 16 of 2008 The key functions of the SHRA are to: promote the development and awareness of social housing and promote an enabling environment for the growth and development of the social housing sector; provide advice and support to the Department of Human Settlements in its development of policy for the social housing sector and facilitate national social housing programmes; provide best practice information and research on the status of the social housing sector; support provincial governments with the approval of project applications by SHIs and assist, where requested, in the process of the designation of restructuring zones; enter into agreements with provincial governments and the National Housing Finance Corporation to ensure that implementation by these entities is coordinated;

Cont. provide financial assistance to SHIs through grants to enable them to develop institutional capacity, gain accreditation as SHIs and submit viable project applications; accredit institutions meeting accreditation criteria as SHIs and maintain a register of SHIs. In addition, conduct compliance monitoring through regular inspections and enforce compliance where necessary. In addition, intervene in the affairs of SHIs in cases of maladministration; approve, administer and disburse institutional investment grants and capital grants and obtain applications for such grants through engagement with provincial governments and municipalities; make rules and regulations in respect of the accreditation of SHIs and the disbursement of government funds to them; and the SHRA is empowered to intervene if it is satisfied on reasonable grounds that there has been maladministration by a SHI. This intervention comprises informing the SHI and supporting them to address the problem. Should the SHI not co-operate in this regard, then to take over the administration of the institution. The procedures to be followed in this regard are set out in this chapter.

The goal of the social housing programme The main goal of the social housing programme is that of social, economic and spatial restructuring. As per the Social Housing Policy 2005 and Section 2 of the Social Housing Act. Social Spatial Economic Mixing social status Counter-acting social segregation Safety, low crime rates Healthy environment to raise children Social Housing Institutions run community development programmes Mixing income groups Counter-acting slum development Catalyst for investment Opportunity for social migration Re-planning to counter-act apartheid dispersion Creating access to urban opportunities Transport, employment

The social housing value chain INPUT State funding Legislation Policy Programme Capacitation Research & development SHRA Pipeline of projects Private sector funding Developers SHIs NASHO International Partners ACTIVITIES Robust investment process Accreditation and Regulatory processes Institutional Investment grants Monitoring and Evaluation SHIs engagement OUTPUT Quality, institutionally well managed units Well located and with socio- economic amenities Energy efficiency, greening, solar products, heat pumps Affordability Lower loan, lower rental – faster equity build up OUTCOME Better managed urban and residential spaces More disposable income for health and education Stable and sustainable SHIs Social mobility Rental option that compliments the bond market IMPACT Improved livelihoods Responsible citizenry Long term equity reserves – less dependency on state resources Sustainable housing markets Short to medium term state investment yielding long term results Empowered SHIs

The SHRA’s value chain MANAGEMENT PROCESSES CORE PROCESSES Generate, analyse and interpret sector information Translate into sector specific application Regulate Institutions Develop institutions Manage public investment in sector Manage compliance and performance MANAGEMENT PROCESSES Develop Strategic Plans Conduct Sector Reporting Conduct Management Reporting Conduct Organisational Capacity Building Drive Corporate Governance CORE PROCESSES Promote the development and awareness of social housing Promote and enabling environment for the growth and development of social housing Protect public investment in the sector Manage budget Manage Information Technology, information systems and intellectual property Manage Human Resources Manage supply chain – procurement and contracting Provide legal expertise ENABLEMENT PROCESSES

The SHRA’s output, outcome and impact What SHRA aim to change The restructuring South African society in order to address structural, economic, social and spatial dysfunctionalities thereby creating economically empowered, non-racial, and integrated society living in sustainable human settlements. OUTCOME What SHRA wish to achieve Widening the range of housing options available to the target beneficiary group. Well managed social housing estates Sustainable Social Housing Institutions Optimum use of state investment in social housing projects Protection of state funds Sustainability of the social housing programme OUTPUT What SHRA produces or delivers Regulated Social Housing Units and projects

The SHRA’s strategic outcome oriented goals and objectives Strategic Objectives Strategic Goal 1 Regulatory reach extended   To regulate and support Social Housing Institutions, Cooperatives and other delivery agents Strategic Goal 2 Sustainable and effective organisation To ensure sound financial governance and best practice adhering to statutory regulations and deadlines Strategic Goal 3 Sustainability of development and management of Social housing units To support and enhance Social Housing Institutions and other delivery agents to enable delivery of 27,000 social housing units Strategic Goal 4 Capacity within the Social Housing Sector built To promote and support the performance of the social housing sector

The SHRA’s programmes Regulatory Programme Accreditation Compliance Monitoring Enforcement Institutional Investment Programme (capacity building grant) Approval, administration and disbursement of the Institutional Investment grant Research and development of best practice Capacity building Investment Management Programme (capital grant) Approval, administration and disbursement of the Restructuring Capital Grant (“RCG”) Administration Programme Corporate Services Office of the Chief Executive Officer

- 2019 Medium Term Strategic Framework Strategic Plan - 2019 Medium Term Strategic Framework

Medium Term Strategic Framework Delivery of 27,000 units Note that this is delivered units and not approved. Currently about 10,000 under planning and construction therefore this would mean construction of another 17,000 units. Huge task considering in the last 4 years only constructed 2500. Allow time to absorb!

Regulatory programme

Institutional Investment programme

Investment Management programme

Administration Programme Put Strat Plan and APP on shared drive, review it at own discretion. Department is to submit to the Minister in couple of weeks. First year had performance indicators for Administration programme covers both corporate services and office of the CEO. I did a comparison of other entities PIs:

Annual Performance Plan 2015/16

Regulatory programme

Institutional Investment programme

Investment Management programme

Administration Programme

10. Mid Term Expenditure Framework

Medium Term Expenditure Framework Financial Year Operational Budget Capital Budget Institutional Investment Capital Budget (Rm) 2014/15 33 480 597 543* _ 2015/16 34 560 932 307 41 936 2016/17 36 392 1 036 409 40 183 2017/18 38 212 1 110 514 38 489 Capital budget for this year was reduced with the virement of R230 million to NHFC confirmed money transferred in September. Of capital expenditure for this year thus far? R33 million From next year onwards IIG have its own capital budget, say capital as it does not cover operating costs. Currently these have been coming out of the operating costs. We have exceeded our operations budget every year this should assist somewhat but need to ensure reduce reliance on consultants. Spreadsheets Tebogo sent round are critical. Procurement plan and reduce reliance on consultants. Need to look at how we utilise the IIG, there is an IIG Policy needs Council approval then ask IIG to take us through it. We are all responsible for elements such as capacity building etc Workshops can come from IIG budget if fit criteria Need to capacitate Need to automate * Reduced from R827 543 million with virement of R230 000 million to NHFC

2015/16 Budget

2015 – 2018 Budget

Challenges and mitigation measures Lack of operational budget From 2015/16 financial year, the SHRA will receive an additional grant (Institutional Investment) Lack of capacity: vacancy rate currently at 33% The SHRA aims to reduce the vacancy rate to 5% by the 2nd Quarter of 2015/16 Internal control inefficiency related to administration and disbursement of capital grant Internal controls enhanced Organogram revised to ensure greater transparency and separation of powers The SHRA has been unable to undertake certain functions due to lack of budget and capacity e.g. research and capacity building Budget will be available from 2015/16 onwards in the form of the Institutional Investment grant Capacity to be built internally Under Performance Targets amended from approval of units to delivery of units Provincial targets to be aligned to the SHRA MTSFs targets going forward Coordinated pipeline of projects Capacity building throughout sector Communication Develop Communication Strategy; Enhanced communication to all key Stakeholders including social housing beneficiaries

Thank you