The National Housing Programme for Farm Residents

Presentation to the PortfolioCommittee

August 2009

Overview • Comprehensive Plan for the Development of

Sustainable Human Settlements recognises that the Housing Programme has been primarily urban biased;

• The Plan envisages a needs oriented, rural housing programme to respond to issues on:•Tenure•Livelihood strategies

Overview •Socio-cultural issues•Farm workers•Enhance traditional technologies & indigenous knowledge•Appropriate funding mechanisms

Overview • The Housing Programme for Farm

Residents was commissioned in 2006;• The Programme was submitted for

discussion at the Rural Housing Indaba in 2007;

• The Indaba raised a few concerns regarding the Programme

Overview • The Indaba highlighted the following

main concerns:•The effect the Programme may have on the current land rights of farm workers / occupiers;•The Programme did not suggest any special interventions to address the actual needs and would therefore have no impact on the housing needs on farms;•Implementation of the Programme was questioned

Overview • In response to the feedback from the

Rural Indaba:•The Department revised the draft programme;•The revised programme was discussed by the Task Team, with all comments incorporated to enhance the draft;•The Programme was approved in February 2009

Background• The Programme endeavours to

provide a practicable approach to the needs of farm residents through:•Practicable development options;•Protection of land and other rights;•Protection of the State’s investment;•Provision of rental as well as ownership options;•Alignment with other current Government programmes

Main features of the Programme• All stakeholders are involved in planning

and implementation;• The rental agreements are regulated:

•Termination of leases•Retirement cases;•Sale of farm•Termination of the schemes;•Processes after the death of the farmer

Main features of the Programme• Provincial Governments are the

developers but the MEC may delegate to Municipality where this is feasible;

• The subsidy investment on the farm is protected through a preferential claim in favour of the Provincial Government;

• The funding limits are equal to the prevailing subsidy quantum

The Development options1.Rental development by Farmer:

• The Farmer is the implementing agent;• Farmer to hold land in registered

ownership. No subdivisions and transferring of ownership to farm workers;

• Formal rental agreement / right to occupy;• MEC approves the project, rentals & rental

agreements;• 60 day notification in case of termination of

rental agreement;

The Development options1.Rental development by Farmer:

• Funding is provided for construction of new houses, or upgrading of existing dilapidated houses;

• Funding may also be used for local water and sanitation services and storm water management systems;

• Exit mechanisms apply;• Where disputes arise, arbitration process

will apply

The Development options1.Rental development by Housing Institution:

• Farmer may decide to lease portion of farm to housing institution;

• Beneficiaries to form part of management of institution;

• Funding for upgrading of existing stock on the farm, development of stand alone, semi-detached and multi level units

The Development options1. Individual ownership options:

• Farmer divides land into smaller farm portions and transfers to individual farm worker / occupier;

• Subdivisions to be large enough to carry small scale farming activities;

• Subdivided portion to be provided with basic water & sanitation services and storm water management systems;

• Farmer could act as implementing agent;• Beneficiaries may elect to undertake their own

development through the People’s Housing Process or appoint a private developer

Housing assistance for LRAD beneficiaries

Project based housing developments for beneficiaries of the Labour Tenant Strategy:

• Funding is for houses and residential engineering services where required;

• Funding available only in the context of a project based approach;

• Province is the developer and may delegate to Municipality where feasible

Housing assistance for LRAD beneficiaries

• Project may follow a normal development process or beneficiaries may elect to construct their own houses through the People’s Housing Process;

• Beneficiary participation is a prerequisite;

• Requires close cooperation with the Dept. of Rural Development and Land Reform

Thank You