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

2. 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

3. 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 – 400 000 households  Gap market – 600 000 Units  Rental housing – 100 000 Rental Units

4. 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

5. 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

6. 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”

7. Land released/acquired for human settlements

8. 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

10. Released public land

12. SOC properties purchased SOC Acquired land ProvinceMunicipalityExtent (ha)CostFunding Earmarked for (HS prog) Potential yield (units) GautengCoJ0.3964R 18 000 000.00HDARental750 CoTshwane38.1075R 16 985 000.00HDAISHS1600 FstateMangaung45.93R 4 950 000.00ProvinceISHS1040 Matjabeng2.42R 450 000.00ProvinceRental240 Dihlabeng5.2931R 2 000 000.00ProvinceRental156 Moqhaka51.9184R 3 450 000.00ProvinceISHS1420 WcapeSwartland700.7813R 5 000 000.00HDAISHS100 EcapeLukhanji5.1924R 3 500 000.00HDARental1420 Total 850.0391R 54 335 000.00 6726 SOC properties purchased

13. Summary of Identified Private Land Per Province

14. HDA LAND HOLDING ProvinceMunicipalityExtent (ha) LimpopoBela 72.5785 GautengCoJohannesburg0.3964 CoTshwane38.1075 FstateMangaung45.93 Matjabeng2.42 Dihlabeng5.2931 Moqhaka51.9184 WcapeSwartland700.7813 CofCape Town2.4814 EcapeLukhanji5.1924 Total 850.0391 HDA LAND HOLDING

15. 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

16. 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

17. 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

18. Summary – Public & Communal land release  Exceeded Outcome 8 target of 6250ha  32 000 potential housing opportunities from the 7315ha of Outcome 8 land specifically  With SOC = 38909 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

19. 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

20. 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

21.  Despite the challenges the HDA has exceeded the Outcome 8 target of 6 250 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