![Page 1: A Dialogue On Partnerships For Affordable Housing And Infrastructure Development 31 th May 2012 Cape Town](https://reader035.vdocuments.mx/reader035/viewer/2022062714/56649d0d5503460f949e1806/html5/thumbnails/1.jpg)
A Dialogue On Partnerships For Affordable Housing And Infrastructure
Development
31th May 2012Cape Town
![Page 2: A Dialogue On Partnerships For Affordable Housing And Infrastructure Development 31 th May 2012 Cape Town](https://reader035.vdocuments.mx/reader035/viewer/2022062714/56649d0d5503460f949e1806/html5/thumbnails/2.jpg)
ContextContext Need Basis of Quantification
Number of Households
Households needing services
HH in formal houses who do not have universal access to services:
2,848,961
HH< R10,000pm (basic level of service) 2,693,395
HH> R10,000pm (high level of service) 155,566
Households needing access to housing (including services)
Total additional housing : 3,029,693
All HH in informal settlements, backyard dwellings and hostels 2,504,550
20% of HH in formal rental who purchase a new house (trade up) 525,143
Households needing access to secondary market transactions *
* Based on 2% churn per year
Total secondary transactions supported: 1,593,512
20% of HH in traditional and owned 1,438,392
4% of HH in formal rental 105,028
2% of HH in informal settlements, backyard rental and hostels 50,092
![Page 3: A Dialogue On Partnerships For Affordable Housing And Infrastructure Development 31 th May 2012 Cape Town](https://reader035.vdocuments.mx/reader035/viewer/2022062714/56649d0d5503460f949e1806/html5/thumbnails/3.jpg)
ContextContext
%% R0-R3,500R0-R3,500 R3,500-R7,000R3,500-R7,000 R7,000-R10,000R7,000-R10,000 R10,000-R15,000R10,000-R15,000 R15,000-R20,000R15,000-R20,000 R20,000+R20,000+ TotalTotal
A: Formal - owned2,595,398 880,882 415,107 522,558 308,920 1,026,420 5,749,285
21.0% 7.1% 3.4% 4.2% 2.5% 8.3% 46.4%
B: Formal - rented, plus Room/Flatlet not in backyard
1,380,830 433,093 224,180 228,985 103,018 255,611 2,625,717
11.2% 3.5% 1.8% 1.8% 0.8% 2.1% 21.2%
C: Informal settlement - regardless of whether it is owned or rented
903,349 192,439 61,254 24,060 9,991 11,664 1,202,757
7.3% 1.6% 0.5% 0.2% 0.1% 0.1% 9.7%
D: Backward dwelling - regardless of whether it is owned or rented
626,984 166,507 69,820 38,885 14,330 28,803 945,329
5.1% 1.3% 0.6% 0.3% 0.1% 0.2% 7.6%
E: Traditional dwelling - regardless of whether it is owned or rented
1,133,113 210,203 37,341 20,298 17,998 23,722 1,442,675
9.2% 1.7% 0.3% 0.2% 0.1% 0.2% 11.7%
F: Hostel181,202 108,658 53,512 7,598 1,986 3,508 356,464
1.5% 0.9% 0.4% 0.1% 0.0% 0.0% 2.9%
G: Other33,582 9,704 5,300 3,295 1,165 3,483 56,529
0.3% 0.1% 0.0% 0.0% 0.0% 0.0% 0.5%
Total 6,854,458 2,001,486 866,514 845,679 457,408 1,353,211 12,378,756
55.4% 16.2% 7.0% 6.8% 3.7% 10.9% 100.0%
![Page 4: A Dialogue On Partnerships For Affordable Housing And Infrastructure Development 31 th May 2012 Cape Town](https://reader035.vdocuments.mx/reader035/viewer/2022062714/56649d0d5503460f949e1806/html5/thumbnails/4.jpg)
4Draft and Confidential
![Page 5: A Dialogue On Partnerships For Affordable Housing And Infrastructure Development 31 th May 2012 Cape Town](https://reader035.vdocuments.mx/reader035/viewer/2022062714/56649d0d5503460f949e1806/html5/thumbnails/5.jpg)
5Draft and Confidential
![Page 6: A Dialogue On Partnerships For Affordable Housing And Infrastructure Development 31 th May 2012 Cape Town](https://reader035.vdocuments.mx/reader035/viewer/2022062714/56649d0d5503460f949e1806/html5/thumbnails/6.jpg)
Integrated Infrastructure &Affordable Housing
Project Management
Land ID &Acquisition
DealStructuring
ProjectPackaging
Marketing& sales
RelationshipManagement
Project Finance Property Finance
Home LoansPublic Sector
• Bulk & Link Services• Social Amenities
• Mortgage finance• Instalment sales
State RelationshipsPolicy and subsidies
• Bridging loans•Term finance• Internal reticulation• House construction• Commercial
![Page 7: A Dialogue On Partnerships For Affordable Housing And Infrastructure Development 31 th May 2012 Cape Town](https://reader035.vdocuments.mx/reader035/viewer/2022062714/56649d0d5503460f949e1806/html5/thumbnails/7.jpg)
Current Initiatives Current Initiatives • Establishment of the Human Settlements Department
– Proposed Consolidation of the Development Finance Institutions in the Human Settlements Department
– Review of the Finance Linked Subsidy Programme
– Proposed introduction of a Default Insurance Programme
– Impact & Performance Evaluations & Policy Review
• Establishment of improved Development Finance Institutions within the scope of the state to finance infrastructure – IDC and DBSA initiatives
• Establishment of the Presidential Infrastructure Coordinating Commission
7Draft and Confidential
![Page 8: A Dialogue On Partnerships For Affordable Housing And Infrastructure Development 31 th May 2012 Cape Town](https://reader035.vdocuments.mx/reader035/viewer/2022062714/56649d0d5503460f949e1806/html5/thumbnails/8.jpg)
Current Initiatives Current Initiatives
• Draft National Development Plan released by the National Planning Commission.
• Establishment of the Urban Settlements Development Grant to allow for bulk, link, development of serviced stands and informal settlement upgrading.
• The introduction of the “Each One, Settle One” Programme.
• “Improving the Property Market” is a key output of the Minister included in the Delivery Agreement signed with the President.
8Draft and Confidential
![Page 9: A Dialogue On Partnerships For Affordable Housing And Infrastructure Development 31 th May 2012 Cape Town](https://reader035.vdocuments.mx/reader035/viewer/2022062714/56649d0d5503460f949e1806/html5/thumbnails/9.jpg)
Points of Dialogue Points of Dialogue • What is we want to address…”access to adequate housing and infrastructure in respect of
affordable housing”
• Are we addressing economic growth, household access, infrastructure development or all of the above
• Do we know what the individual requires – location, price, choice, affordability
• Demand and supply led initiatives – Striking a balance
• What does each of the stakeholders contribute and take out of implementation of the programmes.
9Draft and Confidential
![Page 10: A Dialogue On Partnerships For Affordable Housing And Infrastructure Development 31 th May 2012 Cape Town](https://reader035.vdocuments.mx/reader035/viewer/2022062714/56649d0d5503460f949e1806/html5/thumbnails/10.jpg)
Points of Dialogue Points of Dialogue
• Is the current development model relevant….”individual affordable housing sectors in integrated projects”…
• Why is affordable housing not form of informal settlements upgrading programmes…Inclusion and investment in infrastructure and its catalytic effect…
• The operational costs related to housing and human settlements infrastructure does not receive attention – Cosmo City, Tsustumani Village and Olivienhoutsbosch are good practice examples to review…
10Draft and Confidential
![Page 11: A Dialogue On Partnerships For Affordable Housing And Infrastructure Development 31 th May 2012 Cape Town](https://reader035.vdocuments.mx/reader035/viewer/2022062714/56649d0d5503460f949e1806/html5/thumbnails/11.jpg)
Points of Dialogue Points of Dialogue Affordable Housing
• Requires a societal response – role of state, private sector, individual and community.
• The State has a role and we need to review the current role in order to ensure that we address the required developmental need, priorities within the resource capabilities.
• Who does what – land release, planning, funding and implementation
11Draft and Confidential
![Page 12: A Dialogue On Partnerships For Affordable Housing And Infrastructure Development 31 th May 2012 Cape Town](https://reader035.vdocuments.mx/reader035/viewer/2022062714/56649d0d5503460f949e1806/html5/thumbnails/12.jpg)
121212
Thank You
12Draft and Confidential