New subsidy intervention for the income bracket R3501 to R7000 beneficiaries

• provide support to currently under serviced income category above current cut-off level of the housing subsidy
• programmes such as Medium density rental housing designed to cater for this income band & others
• interventions in the housing finance market such as saving support programme 10% deposit requirement for mortgages
• Policy formulation to be completed by April 2005

New Housing Subsidy Interventions: The Collapsing of the Subsidy Income Bands

• categories R1500 to R3500 beneficiaries receiving maximum subsidy of R25800
• assistance to leverage more private sector funding in the form of credit
• Current implementation procedures will apply. Implementation from I April 2005

• Establishment of Operational Capital Budget @2.5% (OPSCAP)
• Project Management capacity support through operation capital budget
• Steamlining procedures for administration and payment of contractors
• Employer assisted housing initiatives targeting initially large employers, mining houses. Public service, trade unions

• Supporting individual housing demand
• Removing barriers to housing trade - Pre-emptive clause- reduce period from 8 years to 5 years
• Focusing on the local level-building capacity of municipalities
• Enhancing access to title through Discount Benefit scheme, opening township registers and fast tracking the work of Deeds office

• Upgrading of informal settlement on an area wide basis, with reoccupation prevention system and protection of land
• Phased development programme including surveying, basic services provision and housing development
• Housing development to cover variety of options including medium density, rental housing, communal housing, new free standing, in situ upgrading
• Support required from Departments of Home Affairs, Public Works, Provincial and Local Government, Safety and Security, Environmental Affairs & Tourism, Land Affairs
• Progressive informal settlement eradication to address the diversity of needs of informal settlements through in situ upgrading, redevelopment and relocation where necessary (over 6 to 10 years)
• longer term planning arrangements to address urban pressures – land settlement areas with basic services
• Implementation through 'Partnership in Integrated Co-operative Governance' with nine pilot projects, implementation 1^st April 2005, Programme upscaling from 9 to 15 to 20 per year over MTEF. Target for eradication by 2014
• Joint programme by National, Provincial & Local on N2 Cape Town Pilot ( previous presentation)

• Densification policy through planning guidelines, property taxation, zoning, subdivision, land purchase, swops and consolidation
• Residential Development Permit to enforce integration particularly income, racial and special groups to be Issued for all residential developments
• 20% low cost housing requirement in all residential multi unit developments
• Proposing financial incentives (Treasury & SARS) for densification and disincentives for promoting urban sprawl
• Phasing in mixed development and managing perceptives of property devaluation and NIMBYism
• Implementation from April 2005

• Accessing well located state owned, public and para-statal land, incl Land Affairs-Settlement acquisition grant
• Acquisition of well located private land for housing development to spearhead integration and densification
• Fiscal incentives through DPLG, SARS, Treasury for development of well located land
• Creation of designated land settlement areas to relieve settlement pressures
• Guidelines for land acquisition by Dec 2004,

• Promotion of affordable Inner City Housing by supporting Inner city regeneration initiatives
• Acquisition of delapidated residential and non residential buildings for upgrading and conversion
• Social ( medium density ) housing through acquisition, redevelopment, conversion of non residential building.
• Linkages with municipal redevelopment projects & urban development zone tax incentive
• Increasing effective demand through incentive to above R3500 income group and re-introduction of demand driven individual subsidies only for secondary market stimulation
• Implementation from April 2005

• Funding and construction of social and economic infrastructure through multi purpose cluster concept for primary facilities ,
• Promote the development of secondary facilities through residential development permits
• Implementation on basis of Interdepartmental, intergovernmental partnership, on interim basis, medium to long term municipal responsibility
• Maintenance and operation by municipalities and NGOs/CBOs active in those communities
• Funding will only be for MTEF period to allow for budget reprioritisation
• Initial pilot November 2004, full implementation April 2005 -

FACILITIES TO BE PROVIDED:

• Enhancing settlement design to be enforced through residential development permits
• Enhancing housing design through traditional and alternative building technology
• Changing face of "RDP" house through design competitions to promote innovation
• Addressing quality through NHBRC audit and ensuring compliance with building plan and township establishment requirements
• Implementation from April 2005

• Providing a wide range of rental housing options, tenure options to suit various needs
• Promote medium density housing through the provision of hierarchy of affordable housing, communal housing, transitional housing revised hostels programme, and regulate backyard rental housing
• Ensure efficient management through social housing programme
• Partnerships with municipalities and section 21 companies
• Policy development by February 2005, Implementation from April 2005

• Implementation of social housing and medium density development
• New funding mechanism for social housing- equity support to social housing institutions
• Establish sound institutional management capacity to promote private sector investment in rental/social housing
• Building Institutional capacity through National Social Housing Accreditation Institution and introduction of establishment grant
• EU partnership to kick start capacity building programme for social housing institutions. Full implementation April 2005

• Rural housing programme focus on land settlement, tenure security & basic services provision, support through People's Housing Process
• Farmworker housing through on-farm and off farm agri-villages and off farm rural settlements
• Policy and programme in partnership with Department of Labour, Agriculture and Land Affairs
• Policy development to be completed in March 2005, implementation April 2005

• Black economic empowerment through preferential procurement
• Emerging contractor support programme
• Women empowerment through targeted quota for projects
• Targeted access for disabled and special subsidy application for modification for accessibility
• Youth participation through youth construction brigades to support all programmes including Letsema campaign

• Propose establishment of Inter- Ministerial Committee on Integrated Sustainable Human Settlements with oversight role
• Redefinition of roles & responsibilities through 'Partnership in Integrated Cooperative Governance" for implementation
• Joint budgeting, planning and implementation of integrated human settlements initially through pilots in short term and full implementation in medium term
• Effective implementation through appointment of project management teams
• Expanding role of local government through accreditation programme, Durban pilot programme implementation
• December 2004, April 2005, Six Metropolitan councils,April 2006 Secondary cities
• Building Municipal Capacity to support accreditation and housing delivery
• Housing and municipal Integrated Development Plans through development of National Housing Chapter) of IDPs Review of Housing Institutions mandate and oversight function
• Alignment of Housing Institutions programme to comprehensive plan implementation

• Municipal capacity building focus on facilitating accreditation and fast tracking housing delivery
• Social housing institutions - institution building(EU partnership)
• People's Housing Process - capacity building through expansion of existing facilitation grant
• Financial institutions -Consumer education for financial literacy campaign
• Community empowerment to engage in development opportunities and meeting their housing needs.
• A people's Contract to integrated sustainable Human Settlements

• Restructuring the subsidy instrument through collapsing subsidy bands. Extending income limit and inflation linking the subsidy
• Adjusting beneficiary contribution and beneficiary criteria for informal settlement programme, rental housing
• Enhancing funding flow through accredited municipalities, operational capital budget , enhance cash-flow management and bridging finance

ADDRESSING FRAUD, CORRUPTION AND MALADMINISTRATION

• Establish Special Investigative Unit
• Establish toll free whistle blowing hotline
• Consolidate legislative framework and develop specific strategies for risk and fraud management
• Partnership with Provincial Departments of Housing Municipalities, DPLG, Housing Institutions, National Prosecuting Authority and Special Investigative Unit
• Implementation: Preliminary Investigations already process. Establishment of SIU in November 2004

• Job creation strategy based on EPWP guidelines on identification, design and construction methodology for labour intensive construction
• Suitability assessments to be undertaken
• On site material production and support for small business development
• Enhancing existing Emerging contractor support programme (R10m)
• Entrepreneur development programme
• Implementation April 2005

• Mortgage Indemnity fund
• Masakhane Campaign
• Credit by Banks

• Government created Institutions
• Increment Housing support
• NURCHA- SHF- NHBRC
• NHFC-RHLF

3. Mobilising Housing Credit

• Servcon :

- Record of Understanding

- New Deal

- Relocation Assistance

• Saving by beneficiaries

3. Housing Subsidy Scheme

• Project linked - individual
• Consolidation –Institutional
• Rural subsidies:

- Informal land rights

• Public Sector Hostel Re-development Programme

3. Rationalisation of Institutional Capacity

• Housing Act 107 of 1997
• Clear roles & responsibilities

- National –Provincial - Municipal

• 5 Housing Funds
• 14 pieces of legislation (Own affairs Admin & prev Housing and Deve. Acts)

3. Speedy Release & Servicing of Land

• DFA
• CMIP
• Human Settlement
• Redevelopment Plan

3. Coordinate Public Sector Service Delivery & Investment

• DFA – Housing Act
• Partnership: Government & Institutions
• Urban Dev. Frameworks
• Rural Dev. Frameworks

• Informal Settlement Upgrading Programmes
• Providing Community Social facilities

- Basic

• Primary
• Appropriate Housing technology

2. Broaden housing and tenure options

• Social Housing Programme
• Building Housing Institutions & cooperative
• Capacity Building Act:
• Accreditation
• Regulation
• Rental Housing Programme
• Multi-level walk-ups
• Communal Housing
• Transitional Housing
• Hostels
• Backyard rental regulation
• Medium Density Programme
• Farm Worker Housing

• Housing Land Acquisition & Release
• Well located land
• Land acquisition
• State land disposal
• Mun Housing IDP
• Municipality. Housing Sector Plans
• Well located Land
• Funding Stream Alignment
• Bi-lateral conventions
• Density Porgramme
• Town Planning Intervention
• Inner City Regeneration

• Collapsing of the subsidy bands
• Extending the Income Category Limit from R 3501 to R 7000
• Housing Finance
• Operational Capital Budget

• Training & Education
• Programme for Fast Tracking Delivery
• Provincial Officials
• National Officials
• Job Creation Strategy Through
• National Housing Programme
• Entrepreneur Development
• Construction Sector Engagement
• Expanded Public Works Programme
• Community Development Workers and Public Sector Enhancement
• Emerging Contractors Support Programme
• Accreditation of Municipalities
• Letsema Mobilisation

• Investigation Unit
• Housing Support Unit

• RESEARCH STRATEGIES
• Sustainability of housing prgramme
• Unintended consequences of programme
• Traditional housing & knowledge
• Integration strategies
• Better decision-making
• Blocked & stalled projects
• Adequate housing definition
• COMMUNICATION STRATEGY
• Educate & inform all stakeholders
• Facilitate sector communication channels
• Manage information flow
• Evaluate products & potential communication opportunities
• Consumer Education
• ENABLING ENVIRONMENT
• System Support
• Support Unit
• Gender Unit
• Social Housing Unit
• FRAMEWORK LEGISLATION
• Social Housing Act
• Amendment of Rental Act
• Regulations for HLMD Act
• COMPREHENSIVE HOUSING SECTOR MONITORING, INFORMATION AND REPORTING SYSTEM

• Audit of Housing Programme
• Poor Quality of Houses
• Subsidy Database Cleanup
• Integration Initiatives
• Cooperation & Alignment
• Bilateral Conventions
• Budget Alignment
• Multi Year Planning
• An Appropriate Institutional Architecture
• Public Partnership
• Roles & Responsibilities of Role Players
• Special Needs Unit
• Adequate Systems Support
• Housing institutions Refocus
• Alignment with strategy
• Building reprioritising
• Review of mandate
• Develop a Functional Model
• Provinces
• Municipalities