15 july 2014

DEPARTMENT OF HUMAN SETTLEMENTS

STRATEGIC PLAN & BUDGET VOTE

Presentation to Select Committee on Social Services

byMr M Tshangana, DDG: PMU

15 July 2014

Draft

INTRODUCTION

• Dept’s Strategic Plan 2014/19 approved by Cabinet in June 2014.

• Strategic Plan:– concluded subsequent to rigorous consultation

process with relevant stakeholders– Importantly, informed by:

• Manifesto of the Ruling Party• National Development Plan• Medium-Term Strategic Framework

2

PRESENTATION OUTLINE

• Part 1: Strategic Plan: 2014/19 & critical actions identified to achieve annual sector targets

• Part 2: Budget Vote

• Part 3: Utilisation of Human Settlements Grants & alignment of plans to achieve the set delivery targets

3

PART 1:

Human Settlements Strategic Plan2014 – 2019

STRATEGIC PLAN: 2014/19

• The mandate of the Department of Human Settlements • Vision and Mission of Human Settlements • Human Settlements challenges • Expected Results • Delivery Priorities• Critical MTSF Actions to to achieve the sustainable human settlements vision• MTSF Delivery Targets• Way forward

5

THE MANDATE OF THE DEPARTMENT OF HUMAN SETTLEMENTS

• Everyone has the right to have access to adequate housing– Adequate housing: Security of tenure; Availability of

services, materials, facilities and infrastructure; Affordability; Habitability; Accessibility; Location; Cultural Adequacy

• Other embedded rights such as the right to an environment that is not harmful to health or well being (Section 24), the right to clean water (Section 27), the right to property (Section 25)

6

A VISION FOR HUMAN SETTLEMENTS

• By 2050 visible results from effectively coordinated spatial planning systems shall have transformed human settlements in South Africa into equitable and efficient spaces with citizens living in close proximity to work and access to social facilities and necessary infrastructure

• By 2030 measurable progress towards breaking apartheid spatial patterns shall be made, with significant advances made towards retrofitting existing settlements offering the majority of South Africans access to adequate housing in better living environments, within a more equitable and functional residential property market

SECRET 7

MISSION STATEMENT FOR THE NEXT FIVE

YEARS • Ensure all South Africans have access to adequate

housing and quality living conditions through programmes that provide one million housing opportunities for qualifying households over the next five years, and providing basic services and infrastructure in all existing informal settlements

PROPOSAL FOR MTSF DEVELOPMENT FOR DHS 8

CHALLENGES FACING HUMAN SETTLEMENTS(PROBLEMS STATEMENT)

• Dysfunctional and inequitable settlement patterns• A fractured housing market with inequitable access to its workings

and benefits• Housing affordability problems • Weak spatial planning and governance capabilities • The need to ensure continued provision of housing (addressing asset

poverty) and basic services to meet a complex set of housing affordability needs

• The need to reactivate strong social solidarity amongst communities and the building of capable and confident citizens

9

EXPECTED RESULTS FOR THE NEXT FIVE YEARS

• Outcome: Sustainable Human Settlements and Improved Quality of Household Life

• Sub outcomes:1. Adequate housing and improved quality living

environments2. A functionally equitable residential property market 3. Enhanced institutional capability for effective

coordination and spatial investment decisions

10

Proposed Interventions

The NDP sets out the development praxis for human settlements for the next 15 years with

a specific focus on the following:

•Changes to land management systems

•Improved and coordinated spatial systems that will transform human settlements in South

Africa into equitable and efficient spaces with citizens living in close proximity to work with

access to social facilities and necessary infrastructure’.

•Significant advances made towards retrofitting existing settlements offering the majority of

South Africans access to adequate housing, affordable services in better living

environments, within a more equitable and functional residential property.

11

Human Settlements Delivery Priorities

In responding to the government Manifesto, the department is expected to deal with the following:

•Ensure all South Africans live in decent conditions in suitable human settlements• Implement integrated human settlement residential programmes to provide all inclusive amenities and public transport, and overcome apartheid spatial development.• Provide one million housing opportunities for qualifying households in urban and rural settlements over the next five years.• Accelerate the provision of basic services and infrastructure in all existing informal settlements •Increase the supply of affordable housing through mobilization of housing allowances for teachers, nurses, police officers, office workers and many others in the gap market.•Eliminate the backlog of title deeds.

12


In responding to the government Manifesto, the department is expected to deal with the

following:

•Issuing of title deeds for households in the subsidy market on occupation

•Work with financial institutions, private sector organizations, co-operatives and social

partners to increase the provision of capital for housing. (This will include the

establishment of a mortgage insurance scheme).

•Increase the number of housing units in better-located mixed income projects

(Especially in social, co-operative and rental housing, to revitalize inner cities, mining

towns and developing cities)

•Use Catalytic projects, such as integrated residential programmes, to direct

investment and overcome apartheid spatial geography.

13


In responding to the government Manifesto, the department is expected to deal with the

following:

•Promote integrated public transport systems in the new human settlements, including

provision of passenger rail and buses.

•Connect additional 1.6 million homes to electricity grid over the next five years.

•Continue to work towards universal access to running water by providing access to

those who still don’t have it.

14

WHAT CHANGES DO WE WANT TO ACHIEVE?

1. An increase in the number of households living in adequate housing

2. An increase in the number of functional and integrated urban developments for

poor households

3. An increase in access to basic infrastructure and services

4. Improved spatial targeting of investment in areas that promote household

livelihoods, integration and appropriate densification

5. Improved living environments for poor households and enhanced ability of poor

neighbourhoods to move up the property ladder

6. Increased state capabilities in human settlements planning and development

SECRET 15

Critical actions identified to achieve the sustainable human settlements vision: Adequate Housing and Quality

Living Environments

• Review housing policies to better realise constitutional housing rights, ensure that

the delivery of housing is used to restructure towns and cities and strengthen the

livelihood prospects of households

• Develop an implementation strategy to increase the supply of housing

opportunities using different tenure types

• Develop a more coherent and inclusive approach to land i.e.(develop

overarching principles for spatial development)

• Include access to basic services and infrastructure (water, sanitation, energy

infrastructure, roads and services)

16

Critical actions identified to achieve the sustainable human settlements vision: Adequate Housing and Quality

Living Environments

• Implement projects that ensure spatial, social and economic integration, these

include projects implemented in mining towns

• Provide support for economic development in identified hubs

• Develop minimum standards and finance options for investment in public spaces

17

Critical actions identified to achieve the sustainable human settlements vision: A functionally equitable

residential property market

• Revise the regulations and incentives for housing and land use management

• Radically revise the housing finance regime ,this includes the consolidation of

DFI’s , diversification of finance options and products for the affordable gap

market, review of current finance products such as MDI,FLISP etc.

• Develop a policy on administrative systems that support individual transactions in the

affordable secondary housing market

• Fast-track the issuing of outstanding title deeds

• Issue title deeds for new housing units in the subsidy market

• Establish transactional support for affordable housing market

•

18

Critical actions identified to achieve the sustainable human settlements vision: A functionally equitable

residential property market

• Establish transactional support for affordable housing market

• Monitor transactions in the secondary housing subsidy market

• Intensify home ownership education programmes for affordable housing market

• Analyze construction of new housing units in the entire residential property market

• Monitor the number of properties in subsidy market entering the municipal rates

roll

• Collect, analyze and disseminate information on property trends and values in the

affordable housing market

19

Critical actions identified to achieve the sustainable human settlements vision: Enhanced Institutional Capacity for effective

coordination of spatial investment decisions

• Strengthen the programme for accreditation and assignment of municipalities• Develop a monitoring and support programme for assigned and accredited

municipalities • Implement technical capacity programmes for human settlements development• Increase participation of stakeholders in housing development (community based

organizations etc)• Strengthen mechanisms to mobilise private sector contribution to human

settlements development• Develop horizontal and vertical mechanisms amongst spheres of government

contributing to human settlements development• Review planning systems to achieve better spatial impact

20

Strategic Plan: Output Targets2014/15

21

INDICATOR 2014/15 TARGET

Human Settlements Green Paperapproved

A framework for the development of agreen paper finalised by May 2015

Develop a coherent and inclusiveapproach to land for human settlements

The regulations and incentives for housingand land use management revised by March 2015

Housing finance regime frameworkrevised

Comprehensive Expenditure Review completed by March 2015

Cooperatives Policy Cooperatives Policy approved March 2015

Implementation guidelines for PHP PHP Implementation Guidelines approved by March 2015

Comprehensive Rental Policy Framework for development of a comprehensive rental policy finalised by March 2015


22


Implementation Strategy to increasesupply of housing opportunities foraffordable housing market (i.e. subsidyand gap market) developed

Implementation Strategy to increase the supply of affordable housing by March 2015

Institutional capacity for PHP to supportinformal settlement upgrading and ruralhousing

Consolidation of the institutional capacity for PHP and Informal Settlement Upgrading completed by March 2015

Programme to support community-based,cooperatives, non-profit rental and self-built housing

Programme developed by September 2015


23


Number of Houses; and Housingopportunities in informal settlements located in quality living environments

• Informal Settlements Upgrading Plans for 8 Metros

• Upgrading Plans for Mining Towns:• Bojanala, Madibeng and Moses Kotane• 300 informal settlements upgraded• to Phase 2 of the Informal Settlements• Upgrading Programme• 150 000 households upgraded to phase 2

Number of housing units for subsidyhousing submarket provided

• 112 600 housing units for subsidy housing submarket provided

• 5400 social housing units

Number of Affordable housing loans fornew houses in the affordable-gaphousing submarket

22 000 affordable housing opportunities for the gap market provided and supported by DFI’s


24


Number of affordable rentalhousing opportunities

• 7 000 affordable rental housing opportunities provided by the private sector (2000 hostels upgraded and 5000 affordable rental units)

• A backyard policy instrument and draft regulations

Hectares of well located land rezonedand released for new developmentstargeting poor and lower middleincome households

2000 hectares of well located rezoned andreleased for new developments targetingpoor and lower middle income households

All new developments have basicwater, sanitation, roads and energyinfrastructure and services

All new housing development benefitting120 000 households have access to basicinfrastructure and services and 150 000households in informal settlements have access to basic water, sanitation, energy and road infrastructure and services


25


Multiyear Human Settlements Development Plans that support spatial targeting, social and economic integration

Multiyear Human Settlements Development Plans that support social andeconomic integration

Number of lead catalytic projects thatclearly demonstrate spatial, social, andeconomic integration

Identification of 50 lead catalytic projectsReport on the performance of 10 lead catalytic projects in demonstrating clear and robust spatial, social and economic integration

Minimum standards and finance optionsfor investment in public spaces developed

Standards and finance options for investment in public spaces developed


26


A strategy to increase the supply ofaffordable housing

A strategy to increase the supply of affordable housing developed by 2015

Review current finance products(such as existing DFI products,FLISP, MDI, etc.) for the affordablehousing market

State finance products in the affordable market reviewed through Expenditure Review Instruments operated throughand with National Treasury/DPME by March 2015

Intensify homeownershipEducation programmes for theaffordable housing market

• Market information for affordable housing market developed by 2014

• 400 000 consumers reached by March 2015


27


Establish transactional supportfor affordable housing market

• Annual report of sales transactions in the affordable housing market

• 5% increase in Estate Agencies operating in the affordable housing market by 2014

Title deeds issued to newhomeowners in the subsidysubmarket on occupation

112 600 title deeds issued to new homeowners in the subsidy submarket

Backlog on title deedseradicated

• Plan of action to address title deeds backlog completed by March 2015

• Number of outstanding Transfers confirmed by March 2015


28


Strengthen programme for accreditation and assignment of municipalities

• Six Metropolitan Municipalities assigned by 2015

• Finalised Implementation Protocols for Assigned Municipalities

• 8 Municipalities in Secondary Cities assessed for level 2 accreditation

PART 2:

BUDGET VOTE2014/15

Total allocation over the 2014/15 MTEF

2014/15 2015/16 2016/17% to total allocation

Final Allocations. R' 000 R' 000 R' 000

National Department Operational Budget

828 464 863 382 914 398 3%

Grants and transfer payments 29 692 928 31 978 980 33 538 194 97%

Total 30 521 392 32 842 362 34 452 592

The operational budget of the national department constitutes only 3% of the total allocation.

Operational Budget per programme

Programmes2014/15R`000

2015/16R`000

2016/17R`000

Administration 425 905 445 612 472 038

Human Settlements Policy, Strategy and Planning 88 283 93 149 99 121

Programme Delivery Support 290 084 298 996 316 049

Housing Development Finance 24 192 25 625 27 190

Total 828 464 863 382 914 398

Grants and transfer payments 2014/15 2015/16 2016/17

Final Allocations. R' 000 R' 000 R' 000 Direct Grants 27 716 677 29 538 349 32 066 027 Human Settlements Development Grant 17 084 369 18 532 576 20 409 567 Urban Settlements Development Grant 10 284 684 10 654 773 11 231 861 Municipal Human Settlements Capacity Grant 300 000 300 000 300 000 Rural Households Infrastructure Development: Direct Grant 47 624 51 000 124 599 Indirect Grants 964 677 1 042 727 - Human Settlements Development Grant: Indirect 899 177 975 399 - Rural Households Infrastructure Development: Indirect Grant 65 500 67 328 - Entities 1 002 070 1 388 035 1 461 601 Social Housing Regulatory Authority: Operational 33 480 34 560 36 392 Social Housing Regulatory Authority: Capital Restructuring Grant 827 543 1 195 860 1 287 049 Housing Development Agency 101 047 104 615 110 160 Community Schemes Ombuds Services 40 000 53 000 28 000 Departmental Transfers 9 504 9 869 10 566 Bursaries Scheme 4 485 4 642 4 888 Nelson Mandela University 3 906 4 077 4 467 UnHabitat 1 113 1 150 1 211 Total 29 692 928 31 978 980 33 538 194

Total allocation by programme

Programmes2014/15R`000

2015/16R`000

2016/17R`000

Administration 425 905 445 612 472 038

Human Settlements Policy, Strategy and Planning

89 396 94 299 100 332

Programme Delivery Support 298 475 307 715 325 404

Housing Development Finance 29 707 616 31 994 736 33 554 818

Total 30 521 392 32 842 362 34 452 592

Human Settlements Development Grant 2014/15 to 2016/17

ProvincesR`000

2014/15 2015/16 2016/17

EASTERN CAPE 2 159 218 1 929 157 2 147 265

FREE STATE 1 061 756 1 131 794 1 252 868

GAUTENG 4 417 641 5 065 766 5 631 437

KWAZULU-NATAL 3 273 045 3 313 983 3 547 298

LIMPOPO 1 219 115 1 201 733 1 329 147

MPUMALANGA 1 146 690 1 316 401 1 450 045

NORTHERN CAPE 374 832 376 006 416 487

NORTH WEST 1 517 136 2 153 545 2 363 612

WESTERN CAPE 1 914 935 2 044 191 2 271 408

Total 17 084 369 18 532 576 20 409 567

Allocation according to updated formula

HSDG 2014/15 Budget Allocations with split

Provinces R’000 Total Allocation

by Province HSDG Formula

portion Mining Towns

Disaster Relief

EASTERN CAPE 2 159 218 2 159 218 - -

FREE STATE 1 061 756 1 029 781 31 975 -

GAUTENG 4 417 641 4 384 873 32 768 -

KWAZULU-NATAL 3 273 045 3 105 952 - 167 093

LIMPOPO 1 219 115 1 195 875 17 540 5 700

MPUMALANGA 1 146 690 1 096 218 43 123 7 349

NORTHERN CAPE 374 832 365 406 9 426 -

NORTH WEST 1 517 136 1 361 968 155 168 -

WESTERN CAPE 1 914 935 1 910 077 - 4 858

Total 17 084 369 16 609 369 290 000 185 000

Human Settlements Development Grant (Bucket Eradication Programme) 2014/15

to 2015/2016

Province

Bucket backlog 2014/15 2015/16Number of

Units 2014/15

Number of Units

2014/15Number % of total Number Number

Eastern Cape 43 550 15.95% 143 442 755 155 602 214 7 550 8 190

Free State 101 810 37.29% 335 336 553 363 762 604 17 649 19 145

Gauteng 30 031 11.00% 98 914 567 107 299 428 5 206 5 647

KwaZulu-Natal 10 956 4.01% 36 086 311 39 145 301 1 899 2 060

Limpopo 562 0.21% 1 851 087 2 008 001 97 106

Mpumalanga 4 205 1.54% 13 850 213 15 024 278 729 791

North West 38 041 13.93% 125 297 493 135 918 802 6 595 7 154

Northern Cape 11 764 4.31% 38 747 659 42 032 249 2 039 2 212

Western Cape 32 076 11.75% 105 650 283 114 606 122 5 561 6 032

TOTAL 272 995 100.00% 899 176 920 975 399 000 47 325 51 337

Urban Settlements Development Grant 2014/15 to 2016/17

Provinces Metros 2014/15R`000

2015/16 R`000

2016/17 R`000

EASTERN CAPE Buffalo City 673 290 700 458 743 775 Nelson Mandela 828 863 858 144 903 625 Sub Total 1 502 152 1 558 602 1 647 400 FREE STATE Mangaung 654 406 680 907 723 188 GAUTENG Ekurhuleni 1 804 532 1 868 280 1 967 298 Jo'burg 1 695 189 1 755 074 1 848 093 Tshwane 1 469 450 1 521 361 1 601 993 Sub Total 4 969 171 5 144 715 5 417 384 KWAZULU-NATAL eThekwini 1 800 076 1 863 667 1 962 441 WESTERN CAPE Cape Town 1 358 879 1 406 883 1 481 448 Grant Total 10 284 684 10 654 773 11 231 861

Municipal Human Settlements Capacity Grant 2014/15 to 2016/17

Provinces Metros 2014/15R`000

2015/16R`000

2016/17R`000

EASTERN CAPE Nelson Mandela 37 707 37 707 37 707

GAUTENG Ekurhuleni 52 374 52 374 52 374

Jo'burg 59 573 59 573 59 573

Tshwane 47 506 47 506 47 506

Sub Total 159 453 159 453 159 453

KWAZULU-NATAL eThekwini 52 469 52 469 52 469

WESTERN CAPE Cape Town 50 370 50 370 50 370

Total 300 000 300 000 300 000

Rural Household Infrastructure grant: Direct Transfer to Municipalities 2014/15 to

2015/16 Financial Year

Provinces Municipalities 2014/15 R'000

2015/16 R'000

Eastern Cape Chris Hani 4,000 4,000 Free State Maluti-a-Phofung 4,500 5,000

KwaZulu-Natal

Uthukela 4,124 5,000 Umzinyathi 4,000 5,000 Umkhanyakude 4,000 5,000 uMhlathuze 4,500 5,000 Harry Gwala 4,500 5,000

LimpopoSekhukhune 4,500 4,500 Capricorn 4,500 4,500

Mpumalanga Ehlanzeni 4,500 4,000 North West Dr Segomotsi Mompati 4,500 4,000 Total 47,624 51,000

Rural Household Infrastructure grant:Indirect Transfer to Municipalities 2014/15 to

2015/16 Financial Year

Provinces Municipalities2014/15

R'0002015/16

R'000

Eastern Cape

Amathole 9,000 8,328 Afred Nzo 4,500 4,000 Joe Gqabi 4,500 4,000 O.R. Tambo 4,500 4,000

KwaZulu-Natal

Umzumbe 4,500 5,000 Dannhauser 4,500 5,000 Nongoma 4,000 5,000 uMlalazi 4,000 5,000 Ndwedwe 4,000 5,000

LimpopoThulamela 4,500 4,500 Greater Giyani 8,500 9,500

Nothern Cape Ga-Segonyana 4,500 4,000 North West Ratlou 4,500 4,000 Total 65,500 67,328

PART 3:

UTILISATION OF HUMAN SETTLEMENTS GRANTS2014/15

1. Human Settlement Development Grant (HSDG)2. Urban Settlement Development Grant (USDG)3. Rural Household Infrastructure Grant (RHIG)

HSDG: 2014/15• In summary, delivery targets show:

– Greater emphasis on secure tenure, water & sanitation, ie. delivery of sites;

– Decrease in number of houses built; and– Yr-on-Yr, Decrease in number Hsg Opportunities

provided• ‘Anomalies’ in delivery, ascribed to:

– Allotment of 5% of HSDG to Sanitation Programme;– Significant increase in Subsidy Quantum;– Use of HSDG to overcome Bulk Infrastructure shortages

42

Provincial Allocations: 2014/15

• While allocation may have increased, in real terms, this number has actually decreased, on account of:a.5% of original allocation allotted/extradited to

Sanitation Programme; andb.Allocation comprises: Hsg Progr, Mining Towns &

Disaster Relief.• HSDG (2013/14): R16,9 billion• HSDG (2014/15): R16,6 billion• The implications to be carefully considered.

43

Provincial Allocations: 2014/15PROV. 2013/14

(‘000)2014/15

(‘000)

HSDG HSDG HSG PROGR. MINING TOWNS

DISASTER RELIEF

E/Cape 2,523,803 2,159,218 2,159,218

F/State 1,120,936 1,061,756 1,029,781 31,975

Gauteng 4,108,399 4,417,641 4,384,873 32,768

KZN 3,235,428 3,273,045 3,105,952 167,093

Limpopo 1,324,742 1,219,115 1,195,875 17,540 5,700

Mpu. 1,124,332 1,146,690 1,096,218 43,123 7,349

N/Cape 395,724 374,832 365,406 9,426

N/West 1,224,537 1,517,135 1,361,968 155,168

W/Cape 1,925,971 1,914,935 1,910,077 4,858

TOTAL 16,983,872 17,084,369 16,609,369 290,000 185,000

44

PLANNED TARGETS: 2014/15PROVINCE 2014/15 2013/14

SITES UNITS SITES UNITS

E/Cape 10 625 14 230 15 316 20 341

F/State 8 347 7 603 5 028 8 341

Gauteng 10 409 23 592 13 173 30 351

KZN 8 311 32 290 3 362 25 377

Limpopo 3 870 13 980 493 7 382

Mpu. 2 451 9 183 3 319 16 404

N/Cape 5 174 1 752 4 734 1 735

N/West 2 924 10 891 2 110 14 092

W/Cape 5 953 12 831 6 629 13 414

TOTAL 58 064 126 352 54 164 137 437

7% Incr. yr-on-yr 8% Decr. yr-on-yr

184, 416 191,6014% Decrease in Hsg Opportunities Delivered.

45

National Imperatives• A significant percentage is committed to Informal

Settlement Upgrading. 39% of all households (sites) to be provided with secure tenure & services are located in informal settlements

• Affordable Rental is up from 5.4% in 2013/14.• Continued commitment to FLISP & Rectification

Programmes• Historically KZN, Mpu & Limpopo committed bulk of

its allocation to Rural, while PHP remains anchor Programme for W/Cape & Mpu.

46

PLANNED TARGETS: 2014/15

Programme Budget (‘000)

% Allocation

National Priorities 11 921 609 67.41%Slum Upgrading 4 434 416 25.90%Affordable Rental Housing Stock 1 380 406 8.08%Acquisition of Land 431 538 2.52%Rectification 889 623 5.20%FLISP 150 356 0.88%Rural 2 789 468 16.32%Emergency 439 914 2.57%Mining Towns 1 369 604 8.01%Military Veterans 36 284 0.21%Other 5 394 143 31.57%

47

Slum UpgradingProvince Sites Units

Budget (‘000)

% of ALLOC.

E/Cape 2,672 4,911 641,492 29.70%

FS 1,434 3,880 395,495 3.72%GP 3,136 9,809 1,381,524 31.70%KZN 7,051 13,158 946,119 28.90%LIM 3,155 0 99,394 8.15%MP 250 4,057 260,525 22.70%N/Cape 0 202 22,000 5.80%NW 2,259 2,694 298,617 19.70%W/Cape 2,925 1,980 389,250 20.30%Total 22,882 40,691 4,434,416% National Allocation

25.9%

48

Affordable Rental HousingProvince Sites Units

Budget (‘000)

% of ALLOC.

E/Cape 0 493 96,300 4.45%FS 0 1,994 168,591 15.87%GP 0 2,265 523,307 11.84%KZN 0 507 31,936 0.97%LIM 514 120 53,233 4.36%MP 0 0 109,500 9.55%N/Cape 194 233 35,106 9.36%NW 0 793 142,858 9.41%W/Cape 179 1,541 219,575 11.46%Total 887 7,946 1,380,406% National Allocation

8.08%

49

Rectification

Province Sites Budget (‘000)

Units Budget (‘000)

Total Budget

E/Cape 514 397,861 2,011 142,856 540,717FS 0 0 197 19,248 19,248GP 0 7,000 0 5,000 12,000KZN 0 0 3,270 186,203 186,203LIM 0 0 700 58,100 58,100MP 0 0 0 0 0N/Cape 0 0 135 14,209 14,209NW 0 0 2,006 50,722 50,722W/Cape 0 0 410 8,424 8,424Total 514 404,861 8,729 484,762 889,623% National Allocation

5.20%

50

Rural Programmes

Province Sites Units Budget (‘000)

% Allocation

E/Cape 3,714 4,345 427,477 19.79%FS 0 0 0 0.00%GP 400 200 25,828 0.58%KZN 0 14,076 1,090,490 33.31%LIM 0 10,500 814,800 66.83%MP 0 1,543 160,680 14.01%N/Cape 0 102 11,000 2.93%NW 408 3,402 259,193 17.08%W/Cape 0 0 0 0.00%Total 4,522 34,168 2,789,468% National Allocation

16.32%

51

PHP

Province Sites Units Budget (‘000)

% Allocation

E/Cape 0 39 9,124 0.42%FS 0 0 0 0.00%GP 0 128 29,031 0.65%KZN 0 2,800 172,379 5.26%LIM 0 100 7,760 0.63%MP 0 1,677 162,740 14.19%N/Cape 0 0 0 0.00%NW 0 215 16,766 1.10%W/Cape 0 3,456 438,500 22.89%Total 0 8,415 836,300% National Allocation

4.89%

52

Mining Towns

PROVINCE SITES UNITS Gazetted Amount

BUDGET ('000)

E/Cape 0 0 0 0FS 1,434 1,476 31,975 204,968GP 1,551 474 32,768 138,906KZN 0 0 0 0LIM 2,469 2,140 17,540 329,416MP 0 2,667 43,123 387,320N/Cape 194 102 9,426 18,696NW 0 4,060 155,168 290,298W/Cape 0 0 0 0Total 5,648 10,919 290,000 1,369,604% National Allocation

8.01%

53

USDG/HSDG Allocations in Metros

54

• Cities remain key spaces in regional, nat’l & int’l economies, cultural activities, education, etc.

• Urbanisation & growth of especially large urban areas continues unabated.

• Departmental response: a positive one:• 61% of combined HSDG

& USDG to be spent in the 8 Metro’s.

USDG/HSDG Allocations in MetrosMETRO USDG HSDG

Gazetted Amount

% of HSD Allocation

HSDG & USDG

BCM 673,290 245,896 0 11.38% 919,186

NMB 828,863 455,617 348,000 21.10% 1,284,480

Mangaung 654,406 261,828 0 24.65% 916,234

Ekurhuleni 1,804,532 1,265,360 1,265,400 28.60% 3,069,892

Jo’burg 1,469,450 1,504,140 1,504,100 34.00% 2,973,590

Tshwane 1,695,189 970,365 970,300 21.90% 2,665,554

eThekwini 1,800,076 1,150,000 1,150,500 35.13% 2,950,076

Cape Town 1,358,879 665,750 1,350,500 34.76% 2,024,629TOTAL 10,284,684 6,518,956 6,588,800 38.15% 16,803,640

% National Allocation 61.39%

55

USDG: Priorities in Metros

Services/TargetedAreas

Budget Services/ Targeted

Areas

Budget Services/Targeted Areas

Budget

Bulk Sanitation and Bucket Eradication

363 300 000.00 Land parcels serviced

Not stated Plan 3: Quality Living

1 467 279 000.00Bulk Water 207 500 000.00 Roads Not stated Phase 4: Social

Equitable Environment

93 581 000.00

Internal Services for Housing Delivery183 472 807.00 Servicing land for affordable

Not stated Phase 5: Empowerment of

12 000 000.00

Tarring of Gravel Roads

50 000 000.00 Community and sports

Not stated Phase 7: Good Governance &

227 140 000.00

Land acquisition

Not stated

Nelson Mandela : 804,272,807 Mangaung : 742,940,000 Ethekwini : 1,800,000,000

USDG: Priorities in Metros

Services/Targeted Areas

Budget Services/Targeted

Areas

Budget Services/Targeted Araes

Budget Services/Targeted Areas

Budget

Bulk, Connector,

44,4% Roads and Stormwate

203 000 000.00 Outcome 10 18,700,000 Housing and human

484 457 000.00

BNG Projects 18,0% Sanitation 176 507 892.00 Outcome 2 66,860,000 SRAC R130 000 000.00

Rental Units Upgrade

7,4% Social Amenities

52 250 000.00 Outcome 4 24,850,000 Transport, roads and storm water

197 900 806.00

New Rental Units (CRU

6,8% Housing: Internal

41 967 608.00 Outcome 6 22,000,000 SI-electricity R56 150 000.00

PHP Consolidation

Projects

6,1% Electricity 27 699 000.00 Outcome 8 1,158,507,210 Parks and cemeteries

24 000 000.00

Outcome 9 50,000,000

City of Cape Town: 2,141,879,000

Buffalo City : 571,924,500 Ekurhuleni: 1,359,017,210 City of Tshwane

National Imperatives: SIP 7

• Ensure better integration betw. human settlement plng, public transport infrastructure, & bulk infrastructure provision.

• Strategic objective begin to transform racial apartheid geography, & address economic dysfunctional challenges of urban sprawl.

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BUCKET ERADICATION PROGR. (BEP)STATUS

The BEP (Bucket Eradication Programme) grant was attained by “top slicing” 5% of the HSDG, over two years, to fund the programme. The BEP grant for the 2014 / 2015 year (April 2014 to March 2015) amounted to R899 177 000, and the BEP grant for the 2015 / 2016 year (April 2015 to March 2016) amounted to R975 399 000.

Grant funds were divided among provinces in proportion to the number of households that reported using buckets. This grant is allocated for two years and will end in March 2016.

See next slide for the allocation table:

BEP – STATUS (cont.)BUCKET ERADICATION PROGRAM:ALLOCATION PER PROVINCE

2014 / 2015 2015 / 2016

Eastern Cape R 143 443 000 R 155 602 000

Free State R 335 337 000 R 363 763 000

Gauteng R 98 915 000 R 107 299 000

Kwazulu Natal R 36 086 000 R 39 145 000

Limpopo R 1 851 000 R 2 008 000

Mpumalanga R 13 850 000 R 15 024 000

Northern Cape R 125 297 000 R 135 919 000

North West R 38 748 000 R 42 032 000

Western Cape R 105 650 000 R 114 606 000

TOTAL R 899 177 000 R 975 399 000

BEP – STATUS (cont.)Service level agreements were entered into with the following public entities:•NURCHA (National Urban and Reconstruction Agency) – Eastern Cape•HDA (Housing Development Agency) – Western Cape•Bloem Water – Free State•MISA (Municipal Infrastructure Support Agent) – Northern Cape•Sedibeng Water – Northern Cape•Umgeni Water – Kwazulu Natal•Umhlathuze Water – Kwazulu Natal•Rand Water – Mpumalanga and Gauteng•Magalies Water – North West•Lepelle Northern Water – Limpopo

BEP – STATUS (cont.)STATUS OF BUSINESS PLANS FROM IMPLEMENTING AGENTS

•To date, business plans were received for 6 of the 9 provinces. The status of readiness of business plans from implementing agents for the 3 outstanding provinces (Gauteng, Kwazulu-Natal and Mpumalanga) cannot be determined at this stage.

•Of the received Business plans, reviewss are underway to submit these to National Treasury.

•To facilitate the execution of the BEP, NDHS will utilise its panel of multi-disciplinary Professional Resource Teams (PRTs). The PRTs approach is intended to make a significant and efficient contribution to the successful implementation of the bucket eradication programme’s projects.

BEP – STATUS (cont.)Bucket Eradication Funding within the USDG Grant:

It needs to be highlighted that a minimum of 3% of the USDG, which goes directly to the 8 Metros, is allocated towards bucket eradication in formal areas, total per annum as follows:

2014 / 2015: R10.285 billion, of which 3% = R310 million 2015 / 2016: R10.655 billion, of which 3% = R320 million 2016 / 2017: R11.232 billion, of which 3% = R340 million

The above is managed directly by the 8 Metropolitan Municipalities

RHIG - PROGRESSThe RHIG grants, indirect and direct, are as follows:DIRECT:•2014 / 2015 = R 47 624 000•2015 / 2016 = R 51 000 000•INDIRECT:•2014 / 2015 = R 65 500 000•2015 / 2016 = R 67 328 000

The receiving municipalities are finalising their business plans.The use of the BEP Implementing Agencies will be applied to ensure performance and compliance.

CONCLUDING OBSERVATIONS• Congruent to Strategic Plan & to better address

economic and social challenges of especially urban spaces:– Human Settlement Delivery to reflect on more than

mere outputs and delivery numbers, but also on outcomes & implications over coming term;

– Thus aspects such as density, informality, sprawl, access & efficiency integral to Dept’s delivery strategy; &

– Emphasis on better integration of delivery with bulk infrastructure & public amenities.

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CONCLUDING OBSERVATIONS• MTSF: Emphasis on Outcomes, rather than mere

Outputs.– 2014/15 Plan begins to set baseline for outcomes-

measured delivery– Greater emphasis on location, density, integration with

infrastructure and amenities

• Alignment with National Priorities (NDP & SIPs)– firm commitment to basic service provision.– Targeted response and intervention toward rapid

urbanisation

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THANK YOU

“We have come a long way – Celebrating 20 Years of Freedom!”

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