1. Presentation to the Standing Committee on Appropriations 10 August 2011

2. Legislation
Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996)
Housing Act No.107 of 1997
The Housing Consumers Protection Measures Act, 1998 (Act No. 19 of 1998)
The Housing Development Agency Act, 2008 (Act No. 23 of 2008)
Public Finance Management Act, Act No 1 of 1999 (As amended by Act 29 of 1999)
The Social Housing Act, 2008 (Act No.16 of 2008)
The Division of Revenue Act
The Rental Housing Act, 1999 (Act No. 50 of 1999)
Home Loan and Mortgage Disclosure Act, 2000 (Act No. 63 of 2000)

3. Adjusted appropriation 2009/10
2010/11 Allocation
R`thousand
Adjusted appropriation 2009/10
Allocation 2010/11
All Adjustments
Adjusted allocation
1. Administration
167,770
176,175
45,013
221,188
2. Housing Policy, Research and Monitoring
72,175
45,907
-2,036
43,871
3. Housing Planning and Delivery Support
250,899
206,831
365
207,196
4. Housing Development Finance
13,380,695
15,598,126
76,269
15,674,395
5. Strategic Relations and Governance
164,659
174,442
-29,333
145,109
Total
14,036,198
16,201,481
90,278
16,291,759

4. Adjustments: Adjustment Estimate
Rollover amounting to R82,678 million was approved. This amount comprises of:
Programme 1: Administration :R7,1 million
R1,9 million for the renewal of Microsoft licenses which was delayed due to outstanding documents from SITA. The renewal was paid in April R5,2 million for the purchasing of the server which was delayed as it had to be imported.
Programme 2: Housing Policy, Research and Monitoring: R1,2 million
Outstanding payments on tender VA 49/339: Impact Evaluation Study of the Upgrading of Informal Settlements Programme to the value of R1,2 million.
Programme 4: Housing Development Finance: R34,9 million
This amount is for a transfer payment to the Social Housing Regulatory Authority (SHRA). The creation of the bank account was delayed due to a long approval process.
Programme 5: Strategic Relations and Governance: R7,7 million
R7,7 million is for outstanding payments on the following tenders:
Learning Strategies - closure of Thubelisha Homes;
Kagiso Urban Management - business plan and establishment of SHRA;
Policy development for SHRA; and
Determination of institutional arrangement and establishment of Human Settlements Development Finance Institution.
In addition Treasury approved an amount of R31.5 million for the outstanding sanitation expenditure that was not provided for within the Department’s 2010/11 budget allocation

5. Adjustments: After Adjustment Estimate
Virements approved
R27 million required to fund the Special Investigation Unit (SIU) for a National Audit. This Audit is an extension and upgraded mandate to the current agreement between the Department and the SIU under Proclamation R7 of 2007.
R14,4 million was needed to fund the appointment of a services provider to develop and implement a turnaround strategy for the Department.
R34 million which was needed to assist Servcon with its income tax liability.
R7,6 million required to assist Servcon was given after the end of the financial year and could not be transferred.

6. 2011 MTEF Allocation Revised estimate Medium term estimates
Revised estimate
Medium term estimates
Rand thousand
2010/11
2011/12
2012/13
2013/14
Administration
211,997
232,435
238,380
252,392
Housing Policy, Research and Monitoring
47,686
39,215
46,633
44,035
Housing Planning and Delivery Support
225,221
156,163
178,520
223,773
Housing Development Finance
15,649,195
21,995,147
24,253,309
25,947,289
Human Settlements Development Grant
15,041,763
14,941,516
15,599,437
16,457,407
Urban Settlements Development Grant
6,266,998
7,409,512
8,126,806
Housing Disaster Relief Grant
133,800
Departmental agencies
312,193
487,091
694,027
774,955
Rural Households Infrastructure Development
100,000
231,500
479,500
517,250
Strategic Relations and Governance
157,660
155,535
158,215
207,250
Total
16,291,759
22,578,495
24,875,057
26,674,739

8. Expenditure by programme as at 31 March 2011
R`thousand
Expenditure
Adjusted Allocation
Variance
% Spent
1. Administration
188,576
221,188
32,612
85%
2. Housing Policy, Research and Monitoring
32,637
43,871
11,234
74%
3. Housing Planning and Delivery Support
158,376
207,196
48,820
76%
4. Housing Development Finance
15,624,981
15,674,395
49,414
100%
5. Strategic Relations and Governance
87,386
145,109
57,723
60%
Total
16,091,957
16,291,759
199,802
99%

10. Expenditure by economic classification as at 31 March 2011
R`thousand
Expenditure
Total Allocation
Variance
% Spent
Compensation of employees
216,455
239,980
23,525
90%
Goods and services
223,787
310,131
86,344
72%
Interest Paid Financial Leases
173
751
577
23%
Payments For Financial Assets
199
208 9
96%
Transfer and subsidies
15,533,357
15,541,437
8,080
100%
Payment for Capital Assets
117,985
199,252
81,267
59%
Total
16,091,957
16,291,759
199,802
99%

11. 4th Quarter expenditure performance: Programme
Programmes
Total Allocation
Projections
4th Quarter
Variance
1. Administration
221,188,328
62,987,310
60,125,622
2,861,688
2. Housing Policy, Research and Monitoring
43,871,000
11,224,653
10,256,695
967,958
3. Housing Planning and Delivery Support
207,196,000
59,353,748
53,626,317
5,727,431
4. Housing Development Finance
15,674,395,000
3,629,110,362
3,872,640,920
-243,530,558
5. Strategic Relations and Governance
145,108,672
30,715,862
37,718,320
-7,002,458
Total
16,291,759,000
3,793,391,936
4,034,367,875
-240,975,939

12. 4th Quarter expenditure performance: Economic Classification
Total Allocation
Projections
4th Quarter
Variance
Compensation of employees
239,982,785
70,149,980
51,323,570
18,826,410
Goods and services
310,125,843
89,769,205
92,256,711
-2,487,507
Interest Paid Financial Leases
750,814
365,000
36,799
328,201
Payments For Financial Assets
208,493  - -
Transfer and subsidies
15,541,439,302
3,590,496,001
3,815,932,302
-225,436,301
Payment for Capital Assets
199,251,763
42,611,750
74,818,492
-32,206,742
Total
16,291,759,000
3,793,391,936
4,034,367,875
-240,975,939

13. Human Settlements Development Grant Allocation
Province
2010/11
Voted
Adjustment during year
 Total Adjusted Allocation
Total Available to Provinces
Prov .Treasury adjustments
National Adjustments
R'000
Human Settlements Development Grant
Eastern Cape
1,598,646 -
39,000
1,637,646
Free State
1,300,691
(263,000)
1,037,691
Gauteng
3,771,831
115,000
3,886,831
KwaZulu-Natal
2,714,109
77,024
(80,000)
2,634,109
2,711,133
Limpopo
1,234,750
11,400
130,000
1,364,750
1,376,150
Mpumalanga
975,863
35,170
1,011,033
Northern Cape
273,260
174,000
447,260
North West
1,288,770
203
(100,000)
1,188,770
1,188,973
Western Cape
1,868,843
83,878
1,952,721
Total
15,026,763
207,675
15,000
15,041,763
15,249,438
Housing Disaster Relief Grant
KwaZulu Natal
133,800
Grant Total
15,160,563
15,175,563
15,383,238

14. Human Settlements Development Grant Expenditure
Province
Total Available to Provinces
Transfers to Provinces as per Total Adjusted
Spent by Provinces
Unspent Funds
Spent as a % of total avialable
R'000
Human Settlements Development Grant
Eastern Cape
1,637,646
1,503,816
133,830
91.8%
Free State
1,037,691
1,037,685 6
100.0%
Gauteng
3,886,831
3,855,064
31,767
99.2%
KwaZulu-Natal
2,711,133
2,634,109
2,711,234
-101
Limpopo
1,376,150
1,364,750
1,264,584
111,566
91.9%
Mpumalanga
1,011,033
975,863 -
Northern Cape
447,260
446,793
467
99.9%
North West
1,188,973
1,188,770
1,040,163
148,810
87.5%
Western Cape
1,952,721
1,868,843
1,937,989
14,732
Sub Total
15,249,438
15,041,763
14,808,361
441,077
97.1%
Housing Disaster Relief Grant
Kwa-Zulu Natal
133,800
100%
Grant Total
15,383,238
15,175,563
14,942,161

16. 4th Quarter expenditure performance (HSDG)
Spending analysis 1 January 2011 to 31 March 2011
Provinces
Total Available
Year to date (1 January March 2011)
Transferred Funds
Spent by Provinces
Spent as % of Total Available
Spent as % of Transferred Funds
R'000
Eastern Cape
1,598,646
433,482
328,872
21%
76%
Free State
1,300,691
90,041
281,157
22%
312%
Gauteng
3,886,831
1,016,831
1,031,793
27%
101%
KwaZulu-Natal
2,714,109
644,423
1,223,139
45%
190%
Limpopo
1,234,750
478,999
290,235
24%
61%
Mpumalanga
975,863
190,863
318,578
33%
167%
Northern Cape
273,260
199,775
174,146
64%
87%
North West
1,188,770
146,228
273,490
23%
187%
Western Cape
1,868,843
318,843
688,987
37%
216%
Total
15,041,763
3,519,485
4,610,397
31%
131%

17. Services Sites Completed
Housing Delivery
Province
Sites: Targets
Services Sites Completed
Houses: Targets
Houses Completed
Annual Target
Total Delivery EC
8,000
12,979
22,000
10,784
30,000
23,763 FS
13,351
5,328
5,136
18,679 GP
6,791
21,866
33,129
25,117
39,920
46,983
KZN
8,001
4,028
25,002
20,991
33,003
25,019 LP
3,000
2,334
15,489
15,647
18,489
17,981 MP
5,409
2,159
9,656
9,860
15,065
12,019 NC
1,912
2,176
2,524
4,620
4,436
6,796 NW
5,046
6,376
15,996
16,816
21,042
23,192 WC
18,000
11,628
15,000
12,908
33,000
24,536
Total
69,510
63,546
144,124
121,879
213,634
185,425

18. Public Entities National Urban Reconstruction and Housing Agency
Established in partnership with the Open Society Institute in 1995, the Agency provides finance to construction projects for affordable housing, subsidy housing, community facilities and related infrastructure.

19. Public Entities National Home Builders Registration Council
The Council was established in terms of the Housing Consumers Protection Measures Act (1998), as amended, to represent the interests of housing consumers and to regulate the home building environment by promoting innovative home building technologies, setting home building standards and improving the capabilities of home builders.
National Housing Finance Corporation
The Corporation is mandated to make housing finance accessible and affordable to low to middle income households. The corporation is also responsible for mobilising and raising private sector funding for housing purposes.

20. Public Entities Rural Housing Loan Fund Housing Development Agency
The Fund is mandated to provide repeat access to housing credit to low income rural households to support government’s effort to expedite housing delivery.
Housing Development Agency
The Agency is mandated to identify, acquire, hold, develop and release state and privately owned land for residential and community purposes and for the creation of sustainable human settlements.

21. Public Entities Social Housing Regulatory Authority
The Social Housing Act (2008) provides for the establishment of the Social Housing Regulatory Authority to regulate the affairs of all social housing institutions and to stimulate the supply of social housing stock through the social housing investment programme.

22. Departmental Agencies & Accounts
Public Entities
Departmental Agencies & Accounts
Expenditure
Budget
Variance
% Spent
NHFC -
1,000 0%
Social Housing Foundation
6,621,000
100%
Social Housing Regulatory Authority
186,771,000
Rural Housing Loan Fund
49,500,000
Housing Development Agency
69,300,000
SERVCON
34,000,000
41,600,000
7,600,000
82%
Total
346,192,000
353,793,000
7,601,000
98%

23. THANK YOU