1

PUBLIC HEARING on PUBLIC HEARING on HOUSING CONDITIONAL GRANT HOUSING CONDITIONAL GRANT

2006/072006/07Presented by: M Nkoana-Mashabane Presented by: M Nkoana-Mashabane

The Honourable MEC of Local Government and The Honourable MEC of Local Government and Housing :Limpopo ProvinceHousing :Limpopo Province

24 NOVEMBER 200624 NOVEMBER 2006

2

Contents Contents

• Key ObjectivesKey Objectives• AchievementsAchievements• Housing programmes Housing programmes • Spending Trends and PerformanceSpending Trends and Performance• ChallengesChallenges• InterventionsInterventions

3

Key ObjectivesKey Objectives

The Department identified the following as its key objectives:The Department identified the following as its key objectives:

• To provide regulatory framework for housing deliveryTo provide regulatory framework for housing delivery

• To provide capacity and support to municipalities with To provide capacity and support to municipalities with regard to housing delivery in line with the Housing Actregard to housing delivery in line with the Housing Act

• To create integrated and functional settlementsTo create integrated and functional settlements

4

AchievementsAchievements

• 7 750 houses completed to date 7 750 houses completed to date • 5 blocks with 30 family and bachelor rental units completed to date5 blocks with 30 family and bachelor rental units completed to date• 0800 Ntshebele Toll Free line to report fraud and provide consumer has been established to be operational 0800 Ntshebele Toll Free line to report fraud and provide consumer has been established to be operational

during January 2007during January 2007• 100 youth have been trained in construction and are currently being engaged in construction at Bela-Bela100 youth have been trained in construction and are currently being engaged in construction at Bela-Bela• Public –Private Partnership affordable housing project with ANGLOPLAT at Northam has been launched in Public –Private Partnership affordable housing project with ANGLOPLAT at Northam has been launched in

which 320 houses are being built for mining employees earning up to R7000. which 320 houses are being built for mining employees earning up to R7000. • Partnership between the Department and Bricks supplier have received the Govan Mbeki Housing awardPartnership between the Department and Bricks supplier have received the Govan Mbeki Housing award• Modimolle municipality has also been awarded the Govan Mbeki Housing recognition award for partnership Modimolle municipality has also been awarded the Govan Mbeki Housing recognition award for partnership

with department by making serviced land available for housing development with department by making serviced land available for housing development • Retired technical building expert has been deployed by Development Bank of Southern Africa to the Retired technical building expert has been deployed by Development Bank of Southern Africa to the

Department for a year to provide capacity in technical quality assurance and project management Department for a year to provide capacity in technical quality assurance and project management strategiesstrategies

• 36 technically trained project managers will be deployed to all municipalities to increase project inspection 36 technically trained project managers will be deployed to all municipalities to increase project inspection capacitycapacity

• Payment of contracts has been reduced from a month to average of 8 days to support financial viability of Payment of contracts has been reduced from a month to average of 8 days to support financial viability of emerging contractorsemerging contractors

• 46 non-performing contractors have been terminated 46 non-performing contractors have been terminated

5

Housing DevelopmentHousing Development

The Housing Development comprises the The Housing Development comprises the following programmes:following programmes:

• Housing Performance/project managementHousing Performance/project management• Social HousingSocial Housing• Housing administration and property managementHousing administration and property management• Housing Sector Performance and municipal Housing Sector Performance and municipal

supportsupport

6

Restructured StructureRestructured Structure

Old StructureOld StructureGeneral Manager

Senior Manger Senior Manager

Senior Manager Senior Manager

32 Project Managers already deployed to municipalities

7

Senior General Manage

r

GM: Social

Housing

GM: Housing

Admin and

Property

GM: Housing Sector

Performance

SM:Subsidy and

contracts

SM: Prop

SM: Capacity Development (V)

GM: Housing Project

Management

SM: Accreditation

SM: CBH

SM: Institutional Housing

SM-CLPLSA

SM-R&R

SM: Industry & Econ

Dev

District 1 District 2District 3 District4 District 5

25 Municipalities: 36 additional Project Managers will be Deployed

8

Total per Month APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR Total

Projection 2005/06 18,327 25,871 25,911 29,491 29,284 36,817 54,761 65,713 29,206 48,180 59,132 55,482 478,175Actual 2005/06 8,544 20,347 21,622 21,802 30,968 34,034 41,425 39,327 59,206 6,882 23,974 69,794 377,925Actual as % of Projections 47% 79% 83% 74% 106% 92% 76% 60% 203% 14% 41% 126% 79%Projection 2006/07 0 15,819 34,102 86,836 125,246 71,688 47,470 49,042 33,686 35,839 30,166 21,437 521,331Revised Projections 2006/07 0 15,819 34,102 41,086 40,070 63,987 65,385 68,140 61,322 59,290 60,499 41,631 521,331Actual 2006/07 0 15,819 34,102 41,086 40,070 63,987 0 0 0 0 0 0 195,064Actual as % of Projections 0% 100% 100% 47% 32% 89% 0% 0% 0% 0% 0% 0% 37%Actual as % of Revised Projections 0% 100% 100% 100% 100% 100% 0% 0% 0% 0% 0% 0% 37%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

APRIL MAY JUNE JULY AUG SEPT

HOUSING GRANT Rm

Projection 2005/06

Actual 2005/06

Initial Projections 2006/07

Revised Projections 2006/07

Actual 2006/07

9

Rural and Urban HousingRural and Urban Housing• Target :29 240Target :29 240• 7 213 houses completed7 213 houses completed• 8 762 wall plates8 762 wall plates• 8 547 foundations8 547 foundations

Housing Performance /Project Housing Performance /Project Management Management

10

Social HousingSocial HousingPeople Housing ProcessPeople Housing Process

• Annual Target:3922Annual Target:3922

• 537 houses completed537 houses completed

• 522 wall plates522 wall plates

• 629 foundations629 foundations

11

continuedcontinued

Institutional /Social Housing (Rental )Institutional /Social Housing (Rental )• Target :508Target :508• 38 blocks with 228 units are roofed38 blocks with 228 units are roofed• 22 blocks with 132 units have slabs22 blocks with 132 units have slabs• 8 blocks with 24 units are at foundation level8 blocks with 24 units are at foundation level• 5 blocks with 30 units are completed5 blocks with 30 units are completed• Each block has 6 or 4 unitsEach block has 6 or 4 units

12

Housing Sector Performance and Housing Sector Performance and Municipal SupportMunicipal Support

• Polokwane Municipality is being accredited Polokwane Municipality is being accredited as level one as level one

• Development of Multi-year Housing Development of Multi-year Housing Development plan in progressDevelopment plan in progress

• Housing Customer care line for reporting Housing Customer care line for reporting fraud and consumer awareness has been fraud and consumer awareness has been establishedestablished

• Limpopo Housing Development Bill has been Limpopo Housing Development Bill has been tabled at Legislaturetabled at Legislature

• Rental tribunal and housing panel Rental tribunal and housing panel appointment in progressappointment in progress

13

Housing administration and property Housing administration and property managementmanagement

Housing transfer (Extended Discount Benefit Scheme)Housing transfer (Extended Discount Benefit Scheme)

Annual target:4770Annual target:4770• 3718 legal tenants have been profiled and ready for 3718 legal tenants have been profiled and ready for

lodgement with deed office lodgement with deed office • 725 properties transferred725 properties transferred

14

Challenges Challenges

• Bricks supply capacity Bricks supply capacity • Municipal electionsMunicipal elections• Loading of subsidy quantum Loading of subsidy quantum • Institutional capacity Institutional capacity • Contractors capacity to deliver at scaleContractors capacity to deliver at scale

15

InterventionsInterventions• New appointment in line with new structure:New appointment in line with new structure:

– 8 Senior managers already appointed 8 Senior managers already appointed – 7 Cuban engineers deployed to municipalities7 Cuban engineers deployed to municipalities– DBSA Technical Building expert already deployed to the department DBSA Technical Building expert already deployed to the department – 36 technically trained project managers will be deployed to municpalties36 technically trained project managers will be deployed to municpalties

• Project Management Unit has been established to assist with management of Project Management Unit has been established to assist with management of contractors contractors

• Non performing contractors have been terminated Non performing contractors have been terminated • Housing Subsidy Scheme has been enhanced Housing Subsidy Scheme has been enhanced • Strategy to deal with blocked projects is in place and new big contractors have been Strategy to deal with blocked projects is in place and new big contractors have been

profiledprofiled• Sites audit of developable land is completed and Geotechnical engineers to Sites audit of developable land is completed and Geotechnical engineers to

commence with geotechnical investigation have been appointed commence with geotechnical investigation have been appointed • Trilateral agreement facility has been created for material suppliers to assist Trilateral agreement facility has been created for material suppliers to assist

emerging contractorsemerging contractors

16

THANK YOUTHANK YOU