Question NW761 to the Minister of Human Settlements, Water and Sanitation

Reply:

The National Housing assistance programme (Housing Code, 2009) sets the underlying policy principles, guidelines and norms and standards for various key housing delivery programmes to deal with the housing backlog. These housing programmes include the following:

• 1. Integrated Residential Development Programme;
  2. Upgrading of Informal Settlements Programme;
  3. Social Housing and Community Residential Unit Programme;
  4. Finance Linked Subsidy Programme (FLISP), and
  5. Rural Housing Programme.

These housing programmes are funded through various Grants that are either transferred to the Provincial Departments of Human Settlements, Metropolitan Municipalities or some Human Settlements Entities, in particular the Social Housing Regulatory Authority (SHRA) and the National Housing Finance Corporation (NHFC). Provinces receive the Human Settlements Development Grant (HSDG), the Metropolitan Municipalities receive the Urban Settlements Development Grant, and the SHRA receives the Consolidated Capital Grant, while the NHFC receives funding for the Finance Linked Individual Subsidy.

As indicated in the table below, an amount of R18 779 815 000 will be transferred to Provinces in the 2019/20 financial year.

Human Settlements Development Grant
Provinces	2019/20	2020/21	2021/22
R`000	Total Allocation by province	Total Allocation by province	Total Allocation by province
EASTERN CAPE	1 960 278 000	1 634 932 000	1 631 302 000
FREE STATE	1 093 166 000	917 011 000	908 030 000
GAUTENG	5 164 409 000	4 319 346 000	4 293 873 000
KWAZULU-NATAL	3 485 407 000	3 100 921 000	2 694 924 000
LIMPOPO	1 301 677 000	1 098 807 000	1 079 035 000
MPUMALANGA	1 296 059 000	1 091 658 000	1 075 145 000
NORTHERN CAPE	470 262 000	403 061 000	387 887 000
NORTH WEST	1 934 947 000	1 641 426 000	1 601 428 000
WESTERN CAPE	2 073 610 000	1 729 455 000	1 725 616 000
Total	18 779 815 000	15 936 617 000	15 397 240 000

The HSDG budget allocation for the 2020/21 and 2021/22 financial years is R15.9 billion and R15.3 billion respectively. The Department will require much more than it is allocated per annum to make a significant impact on the housing backlog.

The R18 779 815 000 billion for 2019/20 will yield over 140 000 new housing opportunities (units and sites), including development planning, supplementary cost for bulk infrastructure in non-metropolitan areas and other related costs such as NHBRC enrolments.

Province	Sites	Units	Total Target
Eastern Cape	4 699	9 395	14 094
Free State	5 617	4 785	10 402
Gauteng	10 682	21 718	32 400
KwaZulu Natal	9 101	16 791	25 892
Limpopo	5 354	5 911	11 265
Mpumalanga	5 000	6 132	11 132
Northern Cape	830	1 226	2 056
North West	7 396	9 685	17 081
Western Cape	6 486	9 723	16 209
SA total	55 165	85 366	140 531
Source: Approved 2019/20 HSDG Business Plans

Furthermore, as indicated on the table below, an amount of R12 045 386 000 billion will be transferred to Metropolitan municipalities in the 2019/20 financial period through the Urban Settlements Development Grant (USDG). This amount is utilised as integrated top-up funding for infrastructure for municipal services and upgrades to urban informal settlements in the eight metropolitan municipalities.

URBAN SETTLEMENTS DEVELOPMENT GRANT
Municipality	2019/20	2020/21	2021/22
Buffalo City	R817 423 000	R655 735 000	R632 538 000
City of Cape Town	Rl 572 724 000	Rl 276 068 000	Rl 230 926 000
City of Ekurhuleni	R2 092 514 000	Rl 694 564 000	Rl 634 616 000
City of Johannesburg	Rl 968 023 000	Rl 591 883 000	Rl 535 569 000
City of Tshwane	Rl 711013 000	Rl 379 901 000	Rl 331 086 000
eThekwini	R2 094 441 000	Rl 690 379 000	Rl 630 580 000
Mangaung	R813 563 000	R649 912 000	R626 921000
Nelson Mandela Bay	R975 685 000	R778 352 000	R750 817 000
TOTAL	R12 045 386 000	R9 716 794 000	R9 373 053 000

Additionally, the SHRA and NHFC are allocated R723 and R95 million respectively to delivery on rental accommodation and finance linked housing.

	PURPOSE	2019/20	2020/21	2021/22
SHRA	Provide for affordable rental accommodation through the Social Rental Housing Programme	R723 706 000	R762 747 000	R804 646000
NHFC	Housing subsidy for first-time home buyers to assist with purchasing a home	R95 000 000	R334 250 000	R480 000000