1. 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 March 2015

2. 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 9
Annual Performance Plan 2015/16 10
Medium Term Expenditure Framework 11
2015/16 Budget 12
2015 – 2018 Budget 13
Challenges and mitigation measures

3. 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;

4. 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.

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. - 2019 Medium Term Strategic Framework
Strategic Plan
- 2019
Medium Term Strategic Framework

12. 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!

13. Regulatory programme

14. Institutional Investment programme

15. Investment Management programme

16. 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:

17. Annual Performance Plan
2015/16

18. Regulatory programme

19. Institutional Investment programme

20. Investment Management programme

21. Administration Programme

22. 10. Mid Term Expenditure Framework

23. Medium Term Expenditure Framework
Financial Year
Operational Budget
Capital Budget
Institutional Investment Capital Budget
(Rm)
2014/15
33 480 * _
2015/16
34 560
41 936
2016/17
36 392 1 
40 183
2017/18
38 212 1 
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 R million with virement of R million to NHFC

24. 2015/16 Budget

25. 2015 – 2018 Budget

26. 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

27. Thank you