umnotho proposal funding (draft 1)

2016

Umnotho Housing - Funding Proposal

Plot 79 Rietfontein, Muldersdrift, 1747 010 595 9727 [email protected] www.umnotho.org.za Contact Person: Leslie Gama 074 351 1166 [email protected]

mailto:[email protected]

http://www.umnotho.org.za/

“Voice of empowerment through active stakeholder and community partnerships”

1 Greengate Extention 60 Housing Proposal “ Making it count every time”

Project Overview

This document is a layout of a proposal for the Greengate Extension 60 housing project, which aims to create 242 housing opportunities for low-income households. The project will include options of both

low-cost as well as affordable housing.

In 2012 the intended beneficiaries made up of mostly farm labourers and informal settlement dwellers from Muldersdrift, started saving up a minimum of R150 a month with the hope of purchasing land and

building their own houses. With their commitment to this dream, they collectively raised R1 500 000 to purchase Portion 130 of Farm Rietfontein where Greengate Extension 60 is proposed.

Greengate Ext 60 consists of 191 Residential 1 stands, 51 social housing units on a Residential 4 stands,

a community facility intended for a crèche and an assembly point, as well as a business site and park areas.

The Gauteng Department of Agriculture and Rural Development has granted the Environmental

Authorisation for Greengate Ext 60 and Umnotho is looking forward to Mogale City Local Government approving the township establishment application.

The current legislation and policy framework are in support of the self-help approach to housing.

Legislation clearly realises that lack of housing is a complex issue that needs collaboration and innovative approaches to eradicate homelessness.

Umnotho, in developing Greengate Ext 60, proposes a funding model that invites contributions from

the intended beneficiaries, government, business and NGOs. The premise for this approach is based on the understanding that homelessness is not a societal problem that affects only the poor but also the working class, their employers, business and government.

Umnotho forwards a request to Mogale City Local Municipality to approve the township plan and commit to provide basic services, and housing subsidies from the Gauteng Department of Human Settlements.

This initiative will go a long way in empowering beneficiaries, developing skills and promoting community contribution and participation in housing delivery.

Greengate Ext 60 Funding Request

BUDGET LINE TOTAL

2016-2018

BUDGET 2016/2017

SECURED BUDGET

2016/2017

FUNDING REQUEST 2016/2017

POSSIBLE FUNDING

Project Management and Administration

R 1 415 314.00 R 890 244.00 R 458 244.00 R 432 000.00 EPHP NGOs

Land Acquisition R 1 606 118.52 Al ready Purchased Top Structures/Houses R 32 520 000.00 R 32 520 000.00 R 10 578 000.00 R 21 942 000.00 Hous ing Subsidies

Beneficiaries

Community Facility R 800 000.00 R 800 000.00 R 800 000.00 Mogale Ci ty Bus iness Site R 2 000 000.00 R 2 000 000.00 R 2 000 000.00 DTI/IDC

TOTAL R 59 372 766.54 R 56 741 632.02 R 11 036 244.00 R45 705 388.02



CONTENT PAGE

PROJECT OVERVIEW…………………………………………………………………………………………………….. 1

CONTENT PAGE…………………………………………………………………………………………………………….. 2

1. INTRODUCTION………………………………………………………………………………………………… 5

2. LEGAL AND POLICY FRAMEWORK…………………………………………………………………….. 6

3. CHALLENGES FACING THE SUPPLY OF LOW-COST HOUSING IN MULDERSDRIFT. 10

4. UMNOTHO VILLAGE PROGRAMME………………………………………………………………….. 13

5. OBJECTIVES OF UMNOTHO VILLAGE………………………………………………………………… 14

6. ACHIEVEMENTS OF THE UMNOTHO VILLAGE PROGRAMME…………………………… 14

7 UMNOTHO VILLAGE BENEFICIARIES……………………………………..…………………………. 15

8 UMNOTHO VILLAGE APPROACH TO HOUSING…………………………………………………. 16

9 FUNDING PROPOSAL, ROLE PLAYERS AND THEIR CONTRIBUTION…………………… 20

10. GREENGATE EXTENSION 60……………………………………………………………………………… 25

11. LOCALITY AND DEVELOPMENT POTENTIAL……………………………………………………… 27

12. FEASIBILITY STUDIES AND TOWNSHIP ESTABLISHMENT APPLICATION…………….. 30

13. SUSTAINABLE SERVICES FOR GREENGATE EXTENSION 60………………………………… 31

14. TOP STRUCTURE (HOUSE)………………………………………………………………………………… 33

15. BENEFICIARY EMPOWERMENT AND COMPLEMENTARY PROJECTS.................... 34

16. FUNDING PROPOSAL…………………………………….………………………………………………….. 36

17. UMNOTHO VILLAGE MANAGEMENT………………………………………………………………… 40

18. FANANCIAL MANAGEMENT AND CONTROLS…………………………………………………... 40

19. INDEPENDENT AUDITORS………………………………………………………………………………… 41

20. SUSTAINABILITY PLAN………………………………………………………………………………………. 41

21. MOTIVATION FOR GREENGATE EXT 60….………………………………………………………… 42

22. CASE STUDY: ETHEMBALETHU………………………………………………………………………… 46

23. CONCLUSION……………………………………………………………………………………………………. 47



1. INTRODUCTION Umnotho For Empowerment, informed by the intended beneficiaries presents a proposal for

Greengate Extension 60, which aims to create 242 housing opportunities to low-income households using a self-help approach.

Low-income households from Muldersdrift pooled resources together to raise funds in order to first

purchase their own land and later build their own houses. From 2011 these households, which are also the intended beneficiaries, started saving up a minimum of R150 per month and finally, in 2015 they

managed to raise R1 500 000 to purchase Portion 130 of Farm Rietfontein 189-IQ where Greengate Extension 60 is proposed. Driven by their desire for dignified housing with access to basic services, beneficiaries decided to apply

for a formal township establishment. The studies and reports required for the Township Establishment Application, are concluded and the results are all positive and in support of the proposed township.

In advancing Greengate Ext 60, Umnotho and its beneficiaries realised their limitations in terms of funds for the installation of services and building top structures. Umnotho proposes a funding model

that includes the intended beneficiaries, government, business and NGOs. The proposal document begins by looking at the legal and policy framework around self-help housing. The framework creates an enabling environment where people can organise themselves in initiating their housing processes. Umnotho anticipates a policy change, given the frustration with the current housing scheme and the enormous challenges facing housing provision for poor households. In Muldersdrift, where Greengate Ext 60 is proposed, farm dwellers suffer from insecurities of tenure, forced removals and terrible living conditions. In advancing the supply of low-cost housing, the Umnotho Village Programme advocates for a joint

funding model that includes beneficiary contribution, government’s grants and housing subsidies, contributions by business and NGOs. The aim is to provide serviced stands, subsidised houses and to increase rental stock through social housing. Greengate Extension 60 will incorporate 191 individual stands, 51 rental units, a park, and a community & business centre. Greengate is well positioned within Muldersdrift, given the development potential of the area and its links to the Gauteng business core, and supported by the superb road networks. This location will present beneficiaries with employment opportunities and access to social and economic amenities. The project itself will not only provide the much-needed

houses but also will create jobs and generate income for beneficiaries. This will go a long way in promoting the sustainability of the housing project.



2. LEGAL AND POLICY FRAMEWORK Since Umnotho proposes a self-help approach to housing, it is important to locate this approach within

the existing policy and legal framework. There is no doubt that the current legislation supports self-help housing projects, however there is still a need for pro-poor policies in advancing housing for low-

income households.

The tabled legislation and the self-help approach are both underpinned by principles of sustainability, integration, equality, holistic development and social cohesion. These major pieces of legislations and policy documents are essential in formulating the understanding around this self-help housing initiative:

2.1 LEGISLATION

Constitution of the Republic of South African, 1996 Section 24: Everyone has the right to an environment which is not harmful to their health or wellbeing.

Section 26(1): Everyone has the right to adequate housing. Section 26(2): The state must take reasonable legislative and other measures within its available resources to achieve the progressive realisation of this right. Section 152(1): clearly sets out the developmental objectives and duties of local government as to ensure the provision of basic services to communities in a sustainable manner. National Housing Act, 1997 and National Housing Code The act spells out the role of government which is to provide for the facilitation of a sustainable housing development process through various housing subsidies available. The National Housing Code sets the following principles:

To promote housing needs for the poor.

Accelerating the delivery of housing as a key strategy for poverty alleviation. Permanent residential structures with secure tenure ensuring internal and external privacy and

providing adequate protection. To promote socially and economically viable communities.

Development Facilitation Act, 1995 The act defines principles to guide planning and development. The Development Facilitation Act sets the following principles:

To promote the integration of social, economic, institutional and physical aspects of land development.



To promote the availability of residential and employment opportunities in close proximity to

each other.

Gauteng Planning and Development Act, 2000 The Act sets the principles for planning and development in the province. The Gauteng Planning and Development Act sets the following principles:

Support the correction of historically distorted spatial patterns of settlement in Gauteng. Establish viable communities with convenient access to economic opportunities, infrastructure

and social services.

National Environmental Management Act, 1998 (NEMA)

NEMA provides principles for decision-making when dealing with development issues directly affecting the environment.

The NEMA sets the following principles for development:

Socially, environmentally and economically sustainable development. All factors to be considered in permitting “Greenfield” and “Brownfield” developments to avoid

“harmful” activities. Ensuring that all inhabitants have access to the available environmental resources .

Ensuring that proper Integrated Environmental Management (IEM) procedures are followed.

2.2 POLICY FRAMEWORK

Enhanced People’s Housing Process (EPHP) EPHP programme acknowledges the potential for communities to build their own houses.

The EPHP is based on the principles of:

Optimising beneficiaries’ control and decisions regarding the housing product to be delivered.

Community contribution. Participation and leveraging additional resources. A saving in labour costs.

Avoiding payments of a profit element to developer.

Municipal Infrastructure Grant Programme The vision of the MIG programme is to provide all South Africans with at least a basic level of service

through the provision of grant finance aimed at covering the capital cost of basic infrastructure for the poor.

The MIG programme has been designed to achieve the following:

Access to basic services.

Consolidation of funding arrangements. Decentralised service delivery.



Job creation through Extended Public Works Programme.

Local economic development. Empowerment of municipalities.

Poverty alleviation. The National Strategy for Sustainable Development (NSSD) provides strategies to promote sustainable development in land development. The NSSD sets the following principles for development:

People centred development.

A sense of place. Cultural diversity, self-improvement and enterprise.

Holistic approach to planning and development. Alignment of global, national and local linkages.

Sustainable use of natural resources. Improved access to opportunities.

Democratic, efficient governance. Biodiversity preservation.

The National Spatial Development Perspective (NSDP)

The NSDP was developed by the National Government to stimulate national investment and development programmes that will be:

Addressing the distortions of the past apartheid spatial economy.

Breaking New Ground (BNG) BNG pushes for a move from housing-only approach, to a holistic development of human settlements

with social and economic infrastructure. BNG set the following principles:

Sustainable human settlements. Low income housing in close proximity to areas of opportunity. A mix of safe and secure housing and tenure types. Reliable and affordable basic services.

National Development Plan (NDP)

Chapter 8 of NDP outlines the Human Settlement “conundrum”, which states that even though 3 million of housing units delivered since 1994, the housing deficit just keep on increasing and it is

increasingly becoming difficult to sustain the current subsidized housing delivery approach of rolling out houses for free.

The plan outlines future areas of focus on policy reform:

The housing subsidy programme;

The gap market; and Informal settlements.



2.3 ANTICIPATED POLICY CHANGE

Given the challenges in the supply for low-cost housing, there seems to be a growing frustration with the current housing schemes and the slow pace in which it is moving, while the demand for housing is escalating. South Africa is witnessing this frustration through the increasing number of service delivery protests where people demand free houses and other basic services. Government and policy makers are also echoing the same frustration by acknowledging that the current housing delivery model is costly and unsustainable in light of the ever-growing demand for free housing.

Then minister of Human Settlement, Tokyo Sexwale: “The solution to this backlog is not going to be through providing free houses. We can’t sustain what we are doing. There has to be a cut-off date…

But you can’t cut off the poor right now, particularly not in the current national economic environment” (IHHWC, 2011).

President Zuma: “We cannot be a welfare state. We cannot sustain a situation where social grants are

growing all the time and think it can be a permanent feature. The government cannot afford to indefinitely pay social grants to people who are not the elderly and people with disabilities. It could not be that people who are not the elderly and people with disabilities form part of the army of those who are in poverty. SA taxpayers should focus on developing the country rather than on feeding the poor.”

(SAPA, 2012). Gwede Mantashe, the Secretary General of the ANC (ruling party): in response to a question on reversing the rising dependency on unsustainable social grants, responded: “We need to redirect our

resources to productive activities and reduce dependency on social grants”, (SABC/New Age breakfast show on 22 June 2012).

Minister of Human Settlement Lindiwe Sisulu announced: “We will prioritise delivery of houses for the elderly and special groups in the coming five years .” (Press Release -22 October 2014). The National Development Plan: Even though 3 million housing units have been delivered since 1994, the housing deficit just keeps increasing and it is increasingly becoming difficult to sustain the current subsidized housing delivery approach of rolling out houses for free.

These comments start to signal a need for policy change in terms of state subsidised housing. Umnotho

has taken the proactive approach to housing that aligns itself with the anticipated policy change. The proposed approached explores a collaborative partnership that first acknowledges that homeles sness

is a societal problem that affects poor people, business and government. It further acknowledges that all stakeholders have a responsibility and a role to play in addressing vagrancy.

3. CHALLENGES FACING THE SUPPLY OF LOW-COST HOUSING IN MULDERSDRIFT



The majority of low-income households in Muldersdrift reside on farms and informal settlements, in

dreadful living conditions with no access to basic services. “Most of those in these settlements use any available material to construct their shacks. A large percentage (66%) of households reside in a

structure made of tin or metal sheets (zinc/corrugated iron), while 24% of households stay in brick and cement structures, most of them using the old farm houses/workers’ houses model. Various other building materials such as plastic and cardboard, as well as tents and caravans are used in the construction of informal dwellings” Profiling and Recording of Indigent Households in Mogale City Local Municipality, 2014.

3.1 HOUSING BACKLOG IN MULDERSDRIFT

“According to current estimates, the housing backlog in South Africa stands at about 2.1 to 2.5 million

units. This equates to 12 million people currently without adequate housing and the deficit continues to grow” Addressing the Chronic” Housing Shortage in South Africa - PEPǀ People’s Environmental

Planning.

In Muldersdrift there are only 2 formal low-cost housing developments: Rietfontein Village and Ethembalethu Village, with a total of 353 housing units. “Muldersdrift is made up of 3 wards; ward 23, 28 and 33 and the area is mainly dominated by persons residing in ward 23 with a population of 11 541” Mogale City Final Annual Review of the 5 year IDP, 15/16 IDP. “Ward 23 on its own has 30 areas

deemed informal settlements with a total of 2539 households” Profiling and Recording of Indigent Households in Informal Settlements and Rural Areas in the Mogale City Local Municipality, 2014. Given these figures the need for low-cost and affordable housing in Muldersdrift can be estimated at 4000 to 6000 units.

3.2 INSECURITY OF TENURE

Muldersdrift is experiencing development pressure given its location within the Ruimsig/Pine Haven and Lanseria Airport nodes, coupled with its accessibility due to the N14/R28 to Pretoria and Beyer’s Naude leading to Johannesburg. Given this development pressure, the area is experiencing an unprecedented amount of evictions where farm owners are clearing their properties to make way for development. Sadly some evictions are conducted illegally and inhumanly with poor people coming back home in the evening to find their houses demolished and their belongings dumped on the side of

the road. Such inhumane acts leave poor people feeling less human and easily disposable.

3.3 LACK OF ACCESS TO WELL-LOCATED LAND

Central to the project of poverty alleviation is the issue of land. In South Africa the issue of land has been the core of ruthless wars, discriminating laws such as the Group Areas Act and inhumane

evictions for more than a hundred years. The effects of those brutal centuries and the apartheid town-planning legacy of division, racism, inequality and injustice are still widely visible even today in our

communities. Two decades into a free South Africa, issues of land are still not resolved. Millions of

South Africans still have no attachment or claim to even small pieces of land. Race, greed, and discrimination still shape the design and planning of our newly built settlements.



Settlements for poor people were located and still continue to be located on the peripheries of towns and cities. People have to dedicate long hours and money commuting every day. It is estimated that

households traveling from the peripheries spend on average 40% of their income on transport. Clearly such town planning continues to perpetuate these inequalities and drives poor people deeper into poverty. A person living in Soweto commuting by means of a bus to Sandton has to leave home around 4am and only to return around 9pm. This shows that it is not only income that is lost but family time as well. In rectifying this undesirable town planning, well-located land has to be secured for low-cost housing.

Acquiring land in the free market is very difficult, especially for low-cost housing projects, due to inflated land prices. In Muldersdrift, landowner associations still have control in terms of who should or

should not purchase land in their neighbourhoods. This indicates there is still a desire to maintain separate communities and that landowners are reluctant to accommodate low-cost housing in the

vicinity.

3.4 LACK OF AVENUES FOR POOR PEOPLE TO BUILD THEIR OWN HOUSES The history of human settlement shows that ordinary people would house themselves using any available form of natural materials. Communities built houses and other buildings based on customs,

beliefs and traditions. In those days people didn’t need professional services to build their houses however today it is a different story, most especially in urbanised provinces like Gauteng. For people to build their own houses they have to secure land, where prices are ridiculously inflated,

before meeting the costly and strict requirements of town planning, Environmental Impact Assessments, installation of services and building regulations.

It is easy to observe and declare this process “anti-poor” and how it has completely stripped of poor people their ability to build their own houses. People are now bound to squatter camps and reduced to depend on government free houses.

UMNOTHO VILLAGE PROGRAMME



Picture is only for illustration purposes.

Umnotho Village is a programme that creates a platform where low-income households organise themselves to build their own houses. The main objective of the Umnotho Village Programme is to mobilise homeless low-income households to secure their own land and later build their own houses. The programme rests on the beneficiaries taking the initiative and responsibility to solve their social

circumstances.

Umnotho Village Programme came to be as a result of a lack of housing for poor people, tenure insecurities in Muldersdrift and backlogs in the government’s supply for low-cost houses. The Umnotho

Village Programme was launched in 2011 with 124 households after Leslie Gama (who was a Community Development Worker) went from door to door and presented a self-housing process to

over 500 people. The signing up of 124 people showed the need and interest in the self-help approach to housing.

5. OBJECTIVES OF THE UMNOTHO VILLAGE PROGRAMME

To create a platform where low-income households can build their own houses.

To fight poverty by eradicating homelessness and promoting security of tenure. To partner with beneficiaries, government, business and NGOs in building 1000 low-cost and

affordable houses. To achieve better housing products. To empower beneficiaries to be the drivers of their own housing process.



To pursue well-located and integrated residential developments with basic services, closer to

areas of employment. To empower beneficiaries to realise their houses as assets in creating wealth.

To encourage beneficiary contributions and leveraging of additional resources. To educate beneficiaries on the environment and infrastructure for better appreciation and

management of resources.

6. ACHIEVEMENTS OF THE UMNOTHO VILLAGE PROGRAMME

The programme managed to mobilise beneficiaries, breaking down tribal lines and mistrust, which are common stumbling blocks for communities to organise. The previous apartheid government was not

only successful in separating people on racial lines but it also separated people on tribal lines and instilled distrust among people. The legacy of apartheid is still evident in our communities where people still mobilise and organise based on tribal lines.

The biggest achievement was motivating people to commit and invest their hard earned money in an unpopular project that will take years to complete. Unfortunately the provision for low-cost housing is generally considered to be the responsibility of government, and most people have not yet realised

their collaborative potential, let alone their ability to purchase their own land.

Through the programme, the following farms were purchased, and combined they have the potential to create 1200 housing opportunities:

Portion 130 of Farm Rietfontein 189-IQ, Title Deed: T32772/2015, Size: 8.5653 hectares. Portion 79 of Farm Rietfontein 189-IQ, Title Deed: T54025/2015, Size: 5.8317 hectares. Portion 63 of Farm Nooitgedacht 534-JQ, Title Deed: T98970/2015 Size: 14.5722 hectares

The programme has also created jobs; six (6) full-time and eighteen (18) part-time employment opportunities were created. The full-time jobs are around administration of the projects and the part-time jobs are mainly on maintenance of the three farms.



6. UMNOTHO VILLAGE BENEFICIARIES

To qualify as a beneficiary you have to be:

a. A citizen of the Republic of South Africa or a permanent residence permit holder. b. Competent to be contracted (18 years and older or legally married or legally divorced and of

sound mind). c. Not yet benefiting from government assistance. d. Not yet an owner of a fixed residential property. e. Married or cohabiting. f. Single with financial dependents.

Most of the beneficiaries are farm dwellers and from the informal settlements in Muldersdrift and

surrounding communities. The majority (61%) of Umnotho Village beneficiaries are women. It can be highlighted that women, as primary caregivers, carry the heaviest burden of homelessness and a

“missing father” phenomenon in households can be traced.



Umnotho Village Beneficiary Demographics

TOTAL BENEFICIARIES: 321

AGE ALL GENDER EMPLOYMENT STATUS INCOME

M F EMPLOYED SELF EMPLOYED

UNEMPLOYED

PENSION/

DISABILITY GRANT

R0-R3500

R3501-R7000

R7001-R15000

18-35 (36%) 112 42 70 63 27 22 59 44 9 36-59 (59%) 191 72 119 97 52 39 3 98 65 28 60+(5%) 18 11 7 4 2 12 17 1 TOTAL 321 125 196 164 81 61 15 174 110 37 PERCENTAGE 100% 39% 61% 51% 25% 19% 5% 54% 34% 12% DISABILITY 6 2 4 1 5 5 1

As per the criteria used by government, those who could qualify for housing subsidies.

Full Subsidy (RDP) 142 44%

FLISP

121 37%

Do Not Qualify For

58 18% Based on the current beneficiary screening for housing subsidies by the



Subsidies Department of Human Settlement, this group does not qualify for subsidies for various reasons.

8. UMNOTHO VILLAGE’S APPROACH TO HOUSING We can trace a number of challenges and hiccups with the current housing subsidy scheme, which call

for an improved approach. Government has created an unsustainable expectation and dependency



with the rolling out of free houses without a strict qualifying criterion that prefers the most poor and

vulnerable groups. “The problem of dependency is most severely represented in housing. Many households have benefited from the houses provided by the capital subsidy programme, but the harsh

reality is that the housing backlog is now greater than it was in 1994. New approaches are needed, with individuals and communities taking more responsibility for providing their own shelter” NDP 2011. People have been disempowered and alienated from the decision-making processes with no avenue to inform the final housing product. “The capital subsidy regime has resulted in uniform housing developments, which do not offer a range of housing and tenure types to support the needs of

different households” NDP 2011.

Learning from the challenges of the current housing environment, Umnotho advances for an approach that places intended beneficiaries at the forefront and offers a variety of housing products. The

approach also looks beyond housing by including empowerment tools to promote sustainable communities.

8.1 ADVANCING THE SELF-HOUSING APPROACH

The self-housing approach mobilises beneficiaries to actively participate in their own housing process as primary investors and designers of their own project. The ultimate goal is to allow future homeowners to take responsibility and claim their place as drivers of their own housing process. The approach rejects the notion that poor people can only achieve their basic needs as passive recipients of

grants and charity. It further aims to empower households to build houses of their own choosing, informed by their needs, customs and traditions rather than accepting identical houses that do not

reflect their wishes. Benefits Of The Self-Housing Approach

Communities can better relay their specific needs and for better fulfilment of these needs.

Project-beneficiaries are decision makers and have the ability to choose a housing product that suits them.

The approach gives beneficiaries a sense of ownership and fosters pride in communities.

Through this approach there can be appreciation and better maintenance of the produced assets and infrastructure.

Communities have the opportunity to bring in additional resources through their savings, “sweat equity” and cutting costs in labour and building material through their collective buying power.

It also becomes possible to achieve community buy-in for innovative technologies and alternative housing solutions.

8.2 TO OFFER A RANGE OF HOUSING AND TENURE TYPES



The current housing subsidy scheme treats poor and low-income households the same and assumes

that they all need free government houses. Some people only need a piece of land and they will be able to erect top structures. The scheme fails to acknowledge the potential people have and only

provides identical houses that do not cater for all. Most unfortunately it also fails to take advantage of the cost sharing opportunities presented by a number of community initiatives. Umnotho wishes to incorporate a mix of housing types and tenure to meet different needs. It is desirable for households to be able to choose a housing product that suits their needs. In all its projects, Umnotho proposes developments that incorporate serviced stands, sponsored/subsidised houses and social housing.

8.2.1 SERVICED STANDS

Serviced stands are meant for beneficiaries who wish to build their own houses through their own

savings and available support. Beneficiaries are allowed to build houses of their own choosing based on their needs and abilities.

This option acknowledges that not all low-income households need government free houses. Some have the ability and necessary support to build houses that will meet the required building standards and regulations. This support could be from their savings, families, churches, NGOs and employers.

Another previously ignored support structure is the savings schemes that some beneficiaries are members of. In the past 20 years South Africa has witnessed the growth and variation of social clubs, rotating credit unions and saving schemes commonly known as Stokvels. A Stokvel is a club of people

collectively saving a set amount of money that they share at the end of the Stokvel term or credit each other on a rotating bases; weekly, fortnightly or monthly, to finance each other’s dreams.

Stokvels are an immensely popular way of saving for many South Africans, but the new trend is to put money away for investment and creating wealth. Stokvels are no longer the domain of people in need of a collective pot for burials and groceries but provide a way to learn about and jointly invest money with the aim of creating wealth and security for its members (www.fin24.com/Stokvels. 3 February 2016).

SUBSIDISED AND SPONSORED HOUSES

8.2.2 SOCIAL HOUSING

Umnotho is proposing Social Housing on all its projects to provide the much needed rental stock and to cater for beneficiaries who are not yet ready to construct their own houses. Social housing will also

present an empowering opportunity for its beneficiaries through rental income.

Social Housing To Increase Rental Stock



Given the rapid urbanisation and growing employment opportunities around Muldersdrift, there is a growing demand for rental units. Daily our office is inundated with enquiries on affordable rental

properties. Umnotho aims to explore the opportunities brought the by this urbanisation and the growing demand for rental stock. This demand should not only excite us as a project but should also assist us to plan our settlements better. We should learn from Cosmo City, which is currently experiencing congestions on its infrastructure. Cosmo City is well located closer to areas of employment, and it attracts an influx of people due to this proximity. It could be possible that developers did not anticipate the influx; however

there is evidence of poor planning and the biggest crime was to exclude rental stock for low-income households and failing to install futuristic infrastructure. Now we see backrooms mushrooming

everywhere and the existing infrastructure not coping. Cosmo City’s daily reality is now coupled with sewer spillage, congested traffic and piles of rubbish on street corners.

Umnotho and its projects need to learn from such experiences and plan better. The Malibongwe Ridge

housing development just closer to Cosmo City promises to offer a progressive solution this challenge. We see two outside rooms being built next to the RDP houses. We believe this is to increate affordable rental stock and to also empower beneficiaries with rental income. Umnotho will observe the project closely to learn more about this approach.

Social Housing As An Empowerment Tool Our proposed social housing package stands to offer investment opportunities to our project

beneficiaries. The aim is not just to provide shelter but to also look at a holistic beneficiary empowerment approach. Our desire is for beneficiaries to have a stake on the rental units and be able

to earn an income. Since beneficiaries collectively invested in the purchase of the land, it is important that their investment be recognised on the developments that takes place on the land. Their investment should be quantified and shareholding be determined. The funding model for the rental units must also afford beneficiaries the opportunity to further invest and increase their shareholding.

Observing from the growing popularity for MTN, Telkom Shares and similar share offerings, it could be deduced that there is a growing appetite for investment opportunities. Umnotho aims to explore this

appetite and motivate beneficiaries to take advantage of the investment opportunities afforded by the social housing.

The initiative, if properly executed, will go a long way in promoting sustainable livelihoods and rally the

community’s buy-in on the appreciation and maintenance of assets.

Adopting A True Rent To Buy Scheme On Social Housing



In South Africa, we do not have the Rent to Buy scheme, however there is a lot of false marketing going

around advertising as “Rent To Buy” when the wording should be “Rent With The Option To Buy”.

Rental is not always a preferred option for housing in South Africa most especially for low-income households. The current rental environment regrettably does not always provide the needed tenure given our history of evictions and forced removals, where people were easily disposable with no adequate laws providing tenure security. Some blame the introduction of the Extension of Security of Tenure Act, 1997 (ESTA) and The Prevention of Illegal Eviction from and Unlawful Occupation of Land Act, 1998 (PIE) to have let property owners to be reluctant to offer rental stock most especially outside towns and cities. The main reason brought forward is that, these Acts give more rights to tenants than

property owners.

Apart from all the challenges with renting, people have the desire to be able to own their family houses. The sad part about renting is that after the lease-term most people walk away without even

the prospect of owning a property themselves. The reality is that there are more incentives for property owners.

The rationale behind Umnotho Village is to achieve a mix of tenure and central to that is the project of empowerment. As much as Umnotho aims to generate income for beneficiaries through rentals, we also cannot fail to recognise the plight of tenants and their wishes to own property. Umnotho will not

view tenants as milk-cows but as people with a desire to become homeowners. In all its programmes, Umnotho aims to promote ownership and the empowerment of homeless people. The Rent-to-Buy Scheme will offer tenants the opportunity to gradually buyoff the rented property. A

Shared Ownership Scheme will manage the transition from renting to buying. In essence the scheme will allow the tenant to co-own the rented premise during the lease agreement. Tenants will have the

options to make monthly payments, which are part rent and part purchase. The other option will be to buy-off the rented unit in percentages. The rent amount will decrease in proportion to the tenant’s share increase. The Rent-to-Buy option will allow tenants to achieve security of tenure and at the same time allow them to build capital to buy property. The United Kingdom and Canada have been using this approach and Umnotho is committed to conducting more research on the Rent-to-Buy Scheme in pursuit of

empowering all its beneficiaries to achieve secure housing.



9. FUNDING PROPOSAL, ROLE PLAYERS AND THEIR CONTRIBUTION

The Umnotho Village Approach identifies four key stakeholders: beneficiaries, government, business

and NGOs. As mentioned earlier, homelessness is not only a problem to poor people, but it also affects business and government. These stakeholders can make a significant contribution in the fight against

homelessness.

9.1 BENEFICIARY CONTRIBUTION

“Our homelessness does not necessarily mean that we are hopeless”.

Beneficiaries manage to secure the following: Land,

Feasibility studies for township establishment, Project administration and management,

Savings for constructing top structures (houses).



BENEFICIARY CONTRIBUTION

LAND FEASIBILITY STUDIES

PROJECT MANAGEMENT AND ADMINISTRATION

PROPOSED DEVELOPMENT

Ptn 130 Reitfontein 189 IQ

Size: 8, 5653ha Title Deed: T32 772/2015

- Town Planning

- EIA - Land Survey - Geotech Studies

- Ecological Studies - Heritage Impact Report - Services Report - Electrical Report

- Flood Line Certificate - Traffic Impact Report

- Personnel - Office

- Administration

- 191 Individual Stands

- 51 Social Housing Units - Community Facil ity - Crèche

- Business Site - Park

Ptn 79 Reitfontein 189 IQ Size: 5, 8317ha Title Deed: T54025/2015

600 Housing Units

Portion 63 Nooitgedacht

534 JQ Size: 14 5722ha Title Deed: T98970/2015

300 Housing Units

BENEFICIARY CONTRIBUTION STRUCTURE

LAND CONTRIBUTION SAVINGS DONATE A BRICK

FUNDRAISNG CAMPAIGN COMMUNITY BANK

R6 700.00 per Beneficiary From R100.00 From R1.00 a brick From R500.00

Compulsory Optional Campaign Optional

THE

VIS

ION

Beneficiaries set themselves the project

contribution amount based on their needs and affordability.

Beneficiaries decided to save towards building

their houses rather than relying on government. The savings can also

compliment housing subsidies to achieve better housing products.

The Campaign aims to involve other NGOs and

the community in raising the needed bricks. Bricks will be manufactured by beneficiaries themselves.

The campaign will create employment through brick making and presents

business opportunities to beneficiaries.

The aim of the bank is to empower beneficiaries by

affording them an investment platform. Beneficiaries can lend each other funds, to

construct and extend houses. This will also reduce dependency on

major banks and achieve less interest.

OB

JEC

TIV

ES

To purchase land,

To conduct feasibil ity

studies for Township Establishment

To fund project

management and

administration

To save towards

building a house To compliment RDP or

FLISP (Should the project and

beneficiaries succeed in securing government subsidies)

To raise 1 000 000

bricks Beneficiaries are also

pre-buying bricks Employers, Friends and

ordinary people are

donating

To finance the

construction of social housing

To finance the

construction of houses

and extensions. To finance FLISP

beneficiaries

TO TAL Total Contributions

(16 February 2016) Total Savings

(16 February 2016) Bricks Donated

(16 February 2016) Bank Balance

(16 February 2016)



R 2 150 700.00 R 204 208.55 10 200 R 101 324.38

9.2 CONTRIBUTION BY GOVERNMENT

“Government does not solve problems; it subsidises them.” Ronald Reagan

We view government as the biggest role player in these housing projects. As much as beneficiaries have achieved this much on their own, they are not oblivious to the cost implications and their

limitations in delivering this project. The call goes to government, not only because it has the constitutional obligation, but it should also be excited about the initiative people take in solving their

own problems.

This approach counts on government grants and subsidies to complement what people have contributed. Here government is seen as an enabler through policy and investor through infrastructure

and housing subsidies.

Government As An Enabler

With the beneficiaries’ limited resources and powers, it is important to lobby government’s support in

creating conducive environments for self-housing projects.

Given the eminent need for low-cost housing, initiatives that aim to promote the supply for low-cost housing need to be given preference and enough support to make the process pro-poor. The reality is

that the playground on land development is not level. Affluent projects still have a far greater advantage due to inflated land prices that are coupled with costly and steep requirements for township establishment.

Our request is for government to look at measures that support and speed up the process for low-cost housing projects. Government should consider unifying the dual processes of township establishment; the Environmental Impact Assessment and Town Planning into a single process. The Enhanced People’s

Housing Process should also be beefed up and reinstated in Gauteng and accessible at municipal level.

GOVERNMENT TO PROVIDE INFRASTRUCTURE

Installation of services is one of the biggest hiccups for housing developments. The challenges facing most low-cost housing projects is meeting the requirements and standards in terms of infrastructure for basic services. Umnotho Village faces the same challenge in its aspiration to become a formal township with a basic level of services. Beneficiaries on their own will find it difficult to raise funds for

bulk services contributions and to even install external and internal services.



Umnotho aims to secure government’s assistance through an infrastructure grant and we believe

Mogale City Local Municipality is our key role player in this regard.

HOUSING SUBSIDIES

Umnotho Village acknowledges the beneficiaries’ limitations in terms of raising enough funds for building houses and the model invites government as a strategic partner through its housing subsidies. The desire is for these subsidies to be structured in a way that allows beneficiaries to build their own houses.

A. FULL SUBSIDY

Full Subsidy Houses are for: For beneficiaries who qualify for full subsidies but cannot afford to build their own houses.

For households with incomes form R0 to R3 500 a month.

Beneficiaries will apply for housing subsidies from the Gauteng Department of Human Settlements. Beneficiaries are however encouraged to save the little they can to complement the RDP/BNG subsidy and achieve a better housing product.

B. FINANCE LINKED INDIVIDUAL SUBSIDY PROGRAM (FLISP) Finance Linked Individual Subsidy Program better known as FLISP, was developed to enable affordable first time home-ownership opportunities to South African citizens and legal permanent residents

earning between R3 501 and R15 000 per month. Individuals in these salary brackets generally find it hard to qualify for housing finance; their income is regarded as too low for mortgage finance, but too

high to qualify for government “free-basic-house” subsidy schemes. FLISP enables qualifying beneficiaries to reduce the initial mortgage loan amount or augment the shortfall between the qualifying loan and the total house price. FLISP allows beneficiaries to build a residential property on a self-owned serviced residential stand, through an NHBRC registered homebuilder. The once-off FLISP subsidy amount ranges from R10 000 and R87 000, depending on the applicant’s monthly income. The maximum price of a property that can

be financed through FLISP is R300 000.

9.3 CONTRIBUTION BY BUSINESS

“It makes business sense for corporate to invest in communities. Deficiencies in communities have a cost bearing on business.”



Lack of housing affects employees, employers and business equally. At the same time business has an

interest in accessible settlements, particularly for the regular supply of goods and services as well as for the much needed labour. Unsettled employees who suffer insecurities of tenure or having to

commute long distances might be limited in terms of becoming dependable, consistent and productive workforce.

9.3.1 EMPLOYEE HOUSING ALLOWANCE Given the negative affect lack of housing has on business, it only makes sense for business to look into assisting employees to meet their housing needs. An Employee Housing Allowance is one way business

can contribute to the fight against homelessness.

Umnotho applauds the businesses and employers who assisted their employees to meet the Umnotho Village project contribution. 28% of the beneficiaries were assisted directly by their employers. As a

shining example, Ball Straathof Pty Ltd paid for 13 employees. There is no doubt business has a role to play.

9.3.2 CORPORATE SOCIAL INVESTMENT (CSI)

Business, through CSIs, can make a sizable contribution. Umnotho experienced the CSI contribution during the construction of Mohau Pre-School in Rietfontein Village. The Honeydew Rotary Club

sponsored classrooms, the Monash University Student Volunteer Programme donated toys and books. Anglo American Coal, Honeydew Firecrackers and many more companies later came in and made their contributions. Today Mohau ECD preschool is a resourceful centre that caters for 80 children.

Umnotho has the necessary infrastructure and capacity to mobilise the business community to contribute in the fight against homelessness. It is also important to note that Umnotho enjoys a tax

exemption status and can issue donation certificates to business, which allows for businesses to claim on their taxes. Umnotho has also saved more than a R100 000 on transfer duties for the purchased properties due to the tax exemption status.

9.3.3 CORPORATE VOLUNTEER

Corporate Volunteerism is becoming a norm for most companies and this is bolstered by national

campaigns and sentiments around Easter, Mandela Day and the festive season.

Umnotho has partnered with a number of companies on these dates. In December 2012 Umnotho had a successful Corporate Volunteer drive where we managed to organise 158 Christmas packs valued at

R1 500 each for poor households in Lanseria. Umnotho further intends to use this approach in attracting corporate volunteers to fundraise and construct houses.

9.3.4 MARKETING OPPORTUNITIES



Umnotho is currently inundated with requests by companies who want to advertise through building

show houses. These houses can be incorporated in the plans and can be a way of funding the construction of some houses on the proposed townships.

Constructing show houses also presents the opportunity to test the building technologies before the commencement of the actual construction. This will give an indication in terms of which models and technologies can stand the test of time.

Graphics needed Leslie of properties to be developed



10. GREENGATE EXTENTION 60: The Ideal Location

Greengate Ext 60 is proposed on Portion 130 (a Portion of Portion 35) of the farm Reitfontein 189-IQ, Muldersdrift, Mogale City, Gauteng Province. Portion 130 is currently zoned as agricultural. A town planning application will be lodged with the Mogale City Local Municipality to obtain the following land-use rights:

Residential 1 stands: 191 free standing units and subject to a coverage of 50%. The sizes of the

stands range from 150m2 to 240m2 and the average stand size being 220m2.

Residential 4 stands: This will be developed at a density of 70 dwelling units per hectare and will be social housing and sectional titles. The height for the building will be restricted to three

storeys. The size will permit the development of 51 units.

Community Facility: This will be zoned “Special” in order to include multipurpose facility to be used as a crèche, church, meeting place and activity area. The other uses to be included will (probably) include shops and service industry let out to residents of the township.



10.1 PROPOSAL ON RESIDENTIAL 1 STANDS

Drawing from the objectives and beneficiary needs, Umnotho is proposing: Serviced Stands, Full Subsidised Houses and Partially Subsidised Houses.

10.2 PROPOSAL ON RESIDENTIAL 4 STANDS

Umnotho is proposing social housing on the proposed residential 4 stands. The area will accommodate 51 rental units. The objective is to increase rental stock in the areas as well as to empower beneficiaries through rental income. Umnotho will explore possible partners and funders. The aim is to approach Mogale City on its Social Housing programme or private investors. The Umnotho Community Bank also has the potential to secure a sizable investment on the rental units.

Umnotho will further explore the possibility of implementing the Rent-to-Buy Scheme to allow tenants to save on a deposit or buy a portion of the property during the lease term.

10.3 COMMUNITY FACILITY

A community facility is proposed to host a number of facilities that wi ll be of benefit to Greengate Ext

60 and neighbouring residents. The idea is to have a gathering place, a crèche and a bit of business activities taking place there.

Business and NGOs have the potential to fund the construction of the community centre. Various government department and programmes will be approached to secure funding.



11. LOCALITY AND DEVELOPMENT POTENTIAL Portion 130, where Greengate Ext 60 is proposed, is 1km from R114 (Drift Boulevard), bordered by

Larsens Road on the West, and approximately 0.9km from Beyer’s Naude (M5) in the North. The N14 is approximately 1.5 km west of Portion 130. The said property is 1.2km away from Misty Hills Country

Hotel and mainly surrounded by small holdings and Peri-Urban residential areas.

Portion 130 is located in the urban edge and marks a suitable residential location that will not resemble the apartheid type settlement planning that placed people far away from areas of

employment and social amenities. Portion 130 is located in the heart of Muldersdrift which is

recognised by government and its plans due to its developmental potential.

Draft Precinct Plan For The Muldersdrift Development Zone, 2011: Muldersdrift can be described as a

“gate way” to Mogale City, when coming to it from the northern end. It is bordered by two economically significant Metropolitan Municipalities within our borders; the City of Johannesburg and

the City of Tshwane; making it a significant expansion area for both Metropolitan Municipalities. The precinct plan also highlights the area around Portion 130 to be earmarked for high-density residential developments.

Gauteng Spatial Development Perspective: Muldersdrift activity areas show significant links with the Gauteng Core.

This is made possible by the N14/R28 that connects Krugersdorp and Pretoria via Muldersdrift, Beyers

Naude (M5) and Hendrik Potgieter leading to Johannesburg, as well Malibongwe (R512) connecting Lanseria Airport and Randburg.

Gauteng Spatial Development Framework: Muldersdrift, east of R28 has been indicated as a Long

Term Densification Area and Portion 130 falls within this area.

The N14 Development Corridor Precinct Plan, 2015: points out the desired developments around the N14/R28, and Portion 130 is well located to benefit from the upgrades and benefits of the planned developments. In essence the proposed Greengate Extension 60 is located in a development corridor and has a great potential in terms of incorporating low-income households to benefit from the surrounding developments. The benefits will not only be limited to a secured home in an ideal location, but beneficiaries will enjoy the accessibility to social amenities, employment and business opportunities.



CASE STUDY PROFILES Ithembaletu Housing Project. Eric Molobi Housing Innovation Hub.

Beneficiaries are not only limited to the conventional way of building but are encouraged to explore

alternative building technologies. A field trip to Eric Molobi Housing Innovation Hub in Soshanguve and presentations by various building companies, exposed beneficiaries to alternative building solutions made sure beneficiaries would have a wide range of techniques to choose from when building .



Business, through CSIs, can make a sizable contribution. Umnotho experienced the CSI contribution during the construction of Mohau Pre-School in Reitfontein Village. The Honeydew Rotary Club

sponsored classrooms, the Monash University Student Volunteer Programme donated toys and books.

Anglo American Coal, Honeydew Firecrackers and many more companies later came in and made their contributions. Today Mohau ECD preschool is a resourceful centre that caters for 80 children.

At the heart of this enterprise development (ED) is the desire to address the high levels of

unemployment, poverty and malnutrition in children under the age of 5 years as well as educating regarding the importance of nutrition replenishing, and inequality and skills shortage in our youth and population especially parents and communities in South Africa. The biggest challenge the South African Government is facing is employment and job creation for school leavers. The key factor to bear in mind is that successful enterprise development and the importance of this plan is to not only Feed nutritionally but also create entrepreneurial small businesses (SED) enterprise development initiatives and this doesn’t happen in isolation.

It is an integrated participative process of involving all stakeholders at different levels and at different stages. We realize that success is not only about the application of money. The success of enterprise

development is far more than merely funding of a project.

Ideally, it is about identifying, and working with, things that are tangible, and that result in long -lasting

and positive empowerment of people. It’s about committing for the full duration of the project plan, from planning, implementation and co-management towards self-sustainability and accepting that self-

sustainability is a journey, not an only a destination.



11.1 SOCIAL AND ECOMONIC AMENITY PROFILE AROUND GREENGATE EXT 60 SOCIAL AND ECONOMIC AMENITY PROFILE

ERF Portion 130 (Portion of Portion 35) of the Farm Reitfontein 189-IQ Size 8,5653ha Proposed Development Mixed Residential Development

Proposed Township Greengate Extension 60

GREENGATE EXTENSION 60 ZONING QUANTITY

Res 1 (Medium Density) 191 Res 4 (70 dwelling units per ha) 51

Community (Mixed Use) 1 Park 2

PROFILE FACILITY/AMENITY DISTANCE FROM PORTION 130

Business Nodes -Pine Haven Node -Ruimsig Node -Honeydew Node -Lanseria Node -Northgate Node -Krugersdorp Node -Randburg Node

6.6 km 11.9 km 9.3 km

14.4 km 13.4 km 14.6 km 20.3 km

Shops -Muldersdrift Spar -Rietfontein Supermarket

3 km 3 km

Pre-School -Play With A Purpose -Noah’s Ark Pre School -Mohau Pre School

3.6 km 4.2 km 3.6 km

Schools -Lesego Primary School -Nooitgedacht Primary School -Swartkop Valley Primary -Muldersdrift Laer Skool -Avianto Maragon Private School

3.9 km 7.7 km 6.2 km 6 km

2.7 km

University /College -Monash University (Private) -Southern Business School (Private) -Wescol Krugersdorp

10.6 km 7.2 km

15.4 km

Clinic -Muldersdrift Clinic 3.2 km

Hospital -Dr Yusuf Dadoo -Netcare Pine haven Hospital (Pvt)

14.5 km 6.6 km

Fire Department -West Rand Fire Dep (Krugersdorp) 15.2 Km

Police Station -Muldersdrift Police Station 3.2 km Post Office -Muldersdrift Spar Post Office 3 km

Sports Recreational Facility -Muldersdrift Multi-Purpose -Ruimsig Country Sports Club

3.7 Km 8.7 km

Cemetery Muldersdrift Cemetery 4.3 km

Petrol Filling Station Drift Caltex Garage 2.7 km Shopping Centres -Cradle Stone Mall

-Northgate Mall -Key West Mall

3.6 km 13.4 km 12.6 km

Accessible Public Transport Taxis to Krugersdorp, Honeydew,



Johannesburg, Randburg Lanseria and Pine haven

12. FEASIBILITY STUDIES AND TOWNSHIP ESTABLISHMENT APPLICATION

Umnotho is currently conducting feasibility studies for the proposed Greengate Ext 60 and preparing a Townships Establishment Application for Mogale City Local Municipality in terms of the Town Planning

and Township Ordinance, 1986 (Ordinance 15 of 1986).

Parallel to the Township Establishment Application, Umnotho is also seeking Environmental Authorisation from the Gauteng Department of Agriculture and Rural Development in terms of the

National Environmental Management Act, 1998 (Act No. 107 of 1998) as amended, and the Environmental Impact Assessment Regulations, 2014 (Version 1).

The following studies have been conducted: STUDY/CONSULTANT BY WHO OUTCOMES/COMMENTS

Town Planning Synchronicity Development Planning

A Site Development Plan for Greengate Ext 60 has been developed.

Public Participation took place in January 2016.

EIA (Basic Assessment) Batho Earth Social and Environmental Consultants

Draft Basic Assessment Report has been produced based on Fauna and Flora survey conducted. The public participation process took place January 2016.

Contour Survey Barnard & Schneider The contour l ines have been determined and indicate the slope with average gradient of 6.13%.

Flood Line Certification Klunene Consulting Civil

Engineers

It is hereby certified that the proposed township is not

affected by the 1:100 years flood line.

Civil Engineering Services Investigation

Klunene Consulting Civil Engineers

Topography with a gradient slope of 6.13% allows drainage. The existing 160mm water l ine is sufficient for the proposed Greengate Ext 60.

There is a 350mm sewer l ine that will need external l ink of about 985m to connect. Joburg Water owns the outfall sewer and Mogale City has to obtain permission. An alternative is to construct a mini -sewer treatment.

Recycled/Grey water can be used for irrigation.

Electrical Services Investigation

SADECon Africa Consulting Engineers

The total electrical l ink service requirement is estimated at 750 KVA and Eskom has indicated capacity is available.

Ecological Fauna & Flora Habitat Survey

Scientific Aquatic Services The medicinal important plant species, Hypoxis Hemerocallidea is to be protected and relocated to the public open spaces provided in the township.

Geotechnical Investigation KHg Applied Geologists Result positive and in support of the proposed

development. No dolomitic rocks indicated on or in close proximity of the site. A dolomite stability investigation is not required.

Heritage Impact Assessment J van Schalkwyk Heritage Consultant

No sites, features or objects of cultural heritage significance have been identified in the study area; there

would be no impact as a result of the proposed development.

Traffic Impact Assessment Moyeni Professional Engineering

To tar Larsens Road from R114 til l development site. Additional Left turn on Larsens road and R114.



13. SUSTAINABLE SERVICES FOR GREENGATE EXT 60 The provision of basic services is critical to improve the lives of people. One of the key features of a developmental state is to ensure that all citizens, especially the poor and other vulnerable groups,

have access to basic services. The constitution of the country places the responsibility of ensuring that such services progressively reaches out to all, sits squarely on government, within the limits of

available resources of course. Services required for the development of Greengate Ext 60 are:

Water

Sanitation

Electricity

Roads

Storm Water Management

Street Lights Refuse and Waste Removal

The Civil Services Report on Portion 130 Rietfontein by Klunene Consulting Civil Engineers:

The topography with a gradient slope of 6.13% allows drainage.

The existing 160mm water line on property is sufficient for the proposed Greengate Ext 60. There is a 350mm sewer line that will need an external link of about 985m to connect. Joburg

Water owns the outfall sewer and Mogale City has to obtain permission. An alternative is to construct a mini-sewer treatment. Recycled/Grey water can be used for

irrigation. Road access will be on R114 and this road needs to be surfaced.

COST ESTIMATE – INTERNAL CIVIL ENGINEERING SERVICES By SADECon Africa Consulting Engineers

Total No. of Single Stands 191 Total No. of Clustered Stands 2

Total No. of Stands 193

Total No. of Units 241

SERVICE TOTAL AMOUNT Water Reticulation R 855 171.00

Sewer R 1 305 984.00

Storm Water R 1 074 450.00

Roads (11400m2) R 5 458 320.00



Professional Fees R 2 337 489.02

Civil Engineering Bulk R 5 400 000.00 TOTAL R 16 431 414.02

COST ESTIMATE – INTERNAL AND EXTERNAL ELECTRICAL ENGINEERING SERVICES Underground Lv and Mv Cable Reticulation and distribution kiosk R 2 258 400.00

Miniature Substations x2 R 640 000.00 Street lights x23 R 335 100.00

Trenching R 168 000.00

Professional Fees R 673 071.00 Electrical Bulk Contribution R 1 500 000.00

TOTAL R 5 574 571.00 TOTAL ELECTRICAL AND CIVIL ENGINEERING SERVICES R 20 240 985.02

As much as beneficiaries have covered valuable ground in terms of initiating and funding the initial stages of the housing process, we cannot fail to realise that beneficiaries on their own will not be able

to afford the installation of engineering services.

Regarding bulk engineering services our funding request goes out to Mogale City Local Municipality, with the hope that the project will be able to benefit from the Municipal Infrastructure Grant (MIG) or

similar programmes aiming to assist low-income households to access basic services.

THE MUNICIPAL INFRASTRUCTURE GRANT: The introductory Guide, 2004: The vision of the MIG programme is to provide all South Africans with, at least, a basic level of services through the provision

of grant finance aimed at covering the capital cost of basic infrastructure for the poor.

The Gauteng Department of Human Settlements through available housing subsidies may also assists, particularly with the installation of internal services. Should it be required, Umnotho will forward a funding request to the department for internal services.

With the availability of new technologies and alternatives , Umnotho will not only restrict itself to

conventional ways in terms of services infrastructure, but will explore the possibilities presented by these new technologies. The aim is to save energy, water and make as little impact on the natural

environment as humanly possible.

13.1 SERVICES ENGINEERING FUNDING PROPOSAL

SERVICE QUANTITY/ UNITS POSSIBLE FUNDER

BULK SERVICES ENGINEERING

191 Residential 1 Stands

51 Residential 4 Units Community Facility

Mogale City Local Municipality Municipal Infrastructure Grant

INTERNAL SERVICES Municipal infrastructure Grant Gauteng Human Settlements EPHP



14. TOP STRUCTURE (HOUSE)

The ultimate desire is to afford beneficiaries the space to build their own houses of their choosing based on their needs and traditions rather than typologies imposed on them by government. The reality is that in Gauteng, one has to meet very strict building requirements when considering construction. To a certain extend these requirements might be seen as anti-poor due to their costly and time consuming nature, however, having said that, people are capable of not building socially and economically acceptable houses. And hence some sort of regulation is certainly required. It is for this specific reason the National Home Builders Registration Council (NHBRC) becomes a strategic partner in ensuring that houses that meet the standards are built. Through the provision of Serviced Stands, beneficiaries who have the ability to build their own houses will be able to construct houses of their choosing. Some beneficiaries have the potential to build their

own houses using their savings, employer contributions, family assistance, and their access to building materials or even through loans. Some beneficiaries do not necessarily need subsidies for their top structures.

Our approach to self-help housing aims to harness this potential and avoid duplication in funding but to achieve a complementary funding model. For those who genuinely need housing subsidies, Umnotho aims to approach government for assistance.

Housing subsidies targeted for the project are:

Full Subsidy (RDP/BNG): Caters for households with monthly incomes from zero to R3500. FLISP: Caters for households with monthly incomes between R3 501 and R15 000.

EPHP: Caters for self-help housing projects. Social Housing

Beneficiaries are not only limited to the conventional way of building but are encouraged to explore alternative building technologies. A field trip to Eric Molobi Housing Innovation Hub in Soshanguve and

presentations by various building companies, exposed beneficiaries to alternative building solutions made sure beneficiaries would have a wide range of techniques to choose from when building .

The desire is for every beneficiary to at least achieve 40m2 two-bedroom house.



14.1 TOP STRUCTURE FUNDING PROPOSAL PROPOSED LAND USE DESCRIPTION No. of

Units POSIBLE FUNDERS

RESIDENTIAL 1 Serviced Stands Full Subsidy Partial Subsidies

37 83 69

Households/Finance/Umnotho Bank Gauteng Human Settlement (RDP/BNG) FLISP

RESIDENTIAL 4 Social Housing/Rental 51 Mogale City Social Housing Umnotho community Bank Social Housing Programme

COMMUNITY FACILITY Gathering Place Crèche Commercial

1 1 4

Mogale City/ Gauteng Dept. of Sports Gauteng Social Development DTI/IDC/Umnotho Community Bank

15. BENEFICIARY EMPOWERMENT AND COMPLEMENTARY PROJECTS As much as the primary objective of Umnotho Village is to afford beneficiaries the pla tform to build their own houses, the programme should not fail to realise the empowerment aspect of it. The

beneficiary empowerment project does not end with the provision of houses but it goes further to look at the holistic approach to human development. Again, providing a house eradicates homelessness and promotes security of tenure but that does not guarantee the sustainability of these houses. Beneficiaries will have to recognise their houses as assets and the potential to create income and wealth from them.

A. SOCIAL HOUSING AS AN EMPOWERMENT TOOL On Greengate Ext 60 Umnotho is proposing 51 Social Housing Units. These units will provide the much needed rental stock in Muldersdrift. Given the developments in Muldersdrift there is a growing

demand for affordable rental units and these units promise to generate income for beneficiaries.

Since beneficiaries invested in the feasibility studies and land in which the rental units are proposed, it is important that their investment be quantified and shareholdings determined. This will allow all

beneficiaries to have a stake on the rental units and guarantee them an income. This initiative will afford beneficiaries the privilege of being responsible citizens who pay their municipal rates and taxes.

Umnotho is looking to explore the Rent-to-Buy option for the units, to empower tenants by offering them the opportunity to gradually buy off the unit during the lease term. The idea is for them to own up to 75% of the unit and when they reach that target, they would have built enough capital to go buy houses in the open market so that the next beneficiary can also benefit. This will ensure that tenants

are not only seen as cash cows but are also empowered with the opportunity to own property.

The construction of the units can be funded by the Social Housing Programme or by Mogale City through its Social Housing Unit. Private investors can also play a big role.



B. BRICK MAKING AND WINDOW FRAMES MAKING

Using the conventional way of building, the proposed housing development at Portion 130 (Greengate Ext 60) will require about 1 000 000 bricks to build i.e. the 191 houses, the social housing units and the community facility. Every house will also need at least 4 windows to meet the residential ventilation standards. It would be disappointing if the project does not take this advantage to empower its beneficiaries in producing and supplying these bricks and window frames. Umnotho is supporting beneficiaries to set up co-operatives that will look into brick making as well as

the manufacturing of window frames. The co-operatives have the potential to secure funding opportunities from the DTI and other funding institutions given the current market. The idea is to

produce the capacity that will supply a sizable portion of this expected demand. This initiative will not only supply the required materials but it will also create jobs.

C. DONATE A BRICK CAMPAIGN

Photographs Graphics of the brick and Leslie at launch In partnership with other NGOs and marketing houses, Umnotho is launching a Donate A Brick campaign with the intention of raising 1 000 000 bricks. Judging from the previous fundraising initiatives, Umnotho is convinced that it will be able to attract sponsors for this campaign. Umnotho

currently enjoys the support of beneficiaries, their employers, local businesses and the community at large. With this support, Umnotho believes it will be able to attract more sponsors and come up with a real public and yet private partnership, making these houses a reality.

Umnotho does not intend for donors to buy and donate the bricks but rather intends to have the donors order the bricks they aim to donate from the beneficiaries who will then produce the bricks

themselves through the brick making co-operative.

D. UMNOTHO CO-OPERATIVE FINANCIAL INSTITUTION (CFI)/ UMNOTHO COMMUNITY BANK Umnotho as an organisation was founded on the principle of empowerment. In every opportunity Umnotho seeks to empower its beneficiaries to become active participants in the economy of the country, as well as to look beyond issues of bread and butter. The housing project presents a number

of opportunities where beneficiaries can harness their collective savings to invest in developments.

What is a CFI? A Co-operative Financial Institution is an initiative by the National Treasury managed and facilitated by

the Co-operative Banks Development Agency (CBDA). The financial institution allows ordinary people with a common bond to collectively mobilise resources to advance their interests or to deal with their

social challenges. The idea is to provide members with financial services in a cheaper rate than commercial banks.



UMNOTHO VILLAGE (GREENGATE EXT 60) COST ESTIMATE AND FUNDING PROPOSAL 2016/2017 FINANCIAL YEAR (1 APRIL 2016 TO 31 MARCH 2017)

BUDGET LINE UNIT COST TOTAL COST

PER ANNUM

SECURED BUDGET

2015/2016

SECURED BUDGET

2016/2017

SOURCE OF

FUNDING

BUDGET DEFICIT Funding Request

2016/2017

POSSIBLE

FUNDING

PROJECT MANAGEMENT AND ADMINISTRATION

PERSONNEL Vil lage Programme Director R 15 000.00 R180 000.00 R180 000.00 R 180 000.00 Contributions - Umnotho will

explore the possibility of the EPHP programme

or community builders programme within the Dep of Human

Settlement

1st Project Manager R 10 000.00 R 120 000.00 R 120 000.00

2nd Project Manager R 10 000.00 R 120 000.00 R 120 000.00

HR and Financial Administrator R 6 000.00 R 72 000.00 R 48 000.00 R 48 000.00 Contributions R 24 000.00

Database and Support Admin. R 6 000.00 R 72 000.00 R 48 000.00 R 48 000.00 Contributions R 24 000.00

Research and Training Officer R 6 000.00 R 72 000.00 R 72 000.00

Co-operative Development Officer R 6 000.00 R 72 000.00 R 72 000.00

Garden and Maintenance R 2 500.00 R 30 000.00 R 30 000.00 R 30 000.00 Rent

Cleaner R 2 000.00 R 24 000.00 R 24 000.00 R 24 000.00 Rent

TOTAL R 762 000.00 R 330 000.00 R 330 000.00 R 432 000.00

UMNOTHO VILLAGE OFFICE

6x3m Mobile Office Unit R 342 000.00 R 342 000.00 R 342 000.00 -

Contributions

3x Computers R 23 582.00 R 23 582.00 R 23 582.00

2x Printers R 8 396.00 R 8 396.00 R 8 396.00

PBX Telephone System R 26 800.00 R 26 800.00 R 26 800.00

PBX Monthly Service Fee R 628.00 R 7 536.00 R 7 536.00

Internet and Telephone R 4 000.00 R 48 000.00 R 48 000.00 Office Furniture Donated Donations

Security Alarm R 680.00 R 8 160.00 R 8 160.00 R 8 160.00 Contributions

Electric Fence R 28 700.00 R 28 700.00 R 28 700.00 Rent

Insurance R 2 600.00 R 31 200.00 R 31 200.00 R 31 200. 00 Rent and Interest

Stationery R 2 500.00 R 6 000.00 R 6 000.00 R 6 000.00 Registration Fees

TOTAL R 456 314.00 R456 314.00 R 45 360.00

IT SERVICES

Information Management System R 61 000.00 R 61 000.00 R61 000.00

Contributions

Umnotho Website R 20 000.00 R 20 000.00 R20 000.00

Database & Website Management R 4 000.00 R 48 000.00 R48 000.00

TOTAL R 129 000.00 R 129 000.00



BUDGET LINE UNIT COST TOTAL COST PER ANNUM

SECURED BUDGET

2015/2016

SECURED BUDGET

2016/2017

SOURCE OF FUNDING

BUDGET DEFICIT

Funding Request 2016/2017

POSSIBLE FUNDING

PROFESIONAL FEES

Development of Constitution and Memorandum of Agreement

R30 000.00 R30 000.00 R30 000.00

Accounting Services (Auditing) R 8 000.00 R 8 000.00 R 8 000.00

Umnotho Vi llage Business Plan R 30 000.00 R 30 000.00 R30 000.00

TOTAL R68 000.00 R68 000.00 R68 000.00

LAND (PORTION 130 RIETFONTEIN 189 IQ)

Land purchase Tittle Deed: T32772/2015

R 1 500 000.00 R 1 500 000.00 R 1 500 000.00 Beneficiary

Contribution

Transfer Fees R 23 234.52 R 23 234.52 R 23 234.52

TOTAL R 1 523 234.52 R1 523 234.52

OTHER COSTS AROUND PORTION 130

Municipal Rates, Water & Electric R 6 907.00 R 82 884.00 R 82 884.00 R 82 884.00 Rent

TOTAL R 82 884.00 R 82 884.00 R 82 884.00

TOWNSHIP ESTABLISHMENT APPLICATION

Town Planners R 95 000.00 R 95 000.00 R 95 000.00

Contributions

Environment Impact Assessment R 97 000.00 R 97 000.00 R 97 000.00

Land Survey R 11 500.00 R 11 500.00 R 11 500.00

Geotechnical Investigation R 37 000.00 R 37 000.00 R 37 000.00 Ecological Studies R 57 000.00 R 57 000.00 R 57 000.00

Heritage Impact Assessment R 7 093.00 R 7 093.00 R 7 093.00

Flood Line Certificate R 850.00 R 850.00 R 850.00

Engineering Services Report R 34 200.00 R 34 200.00 R 34 200.00

Electrical Services Report R 38 760.00 R 38 760.00 R 38 760.00

Traffic Impact Assessment R 42 000.00 R 42 000.00 R 42 000.00

Architect and Architectural Model R 35 000.00 R 35 000.00 R 35 000.00

SUB-TOTAL R 460 403.00 R 460 403.00 R 460 403.00

Engineering Services Layouts and Further Studies and tests

R 330 000.00 R 330 000.00 R 39 597.00 R290 403.00

TOTAL R 790 403.00 R 790 403.00 R 500 000.00 R290 403.00



BUDGET LINE UNIT COST TOTAL COST PER ANNUM

SECURED

BUDGET 2015/2016

SECURED

BUDGET 2016/2017

SOURCE OF FUNDING


2016/2017

POSSIBLE FUNDING

SITE PREPARATION

Earthwork R340 000.00 R340 000.00

Business/Umnotho Beneficiary Contributions

NGOs

Construction Phase Environmental Management Plan

TOTAL R 340 000.00 R 340 000.00 R 340 000.00

SERVICES BULK

Bulk Water Infrastructure R 500 000.00 R 500 000.00 Mogale City Local Municipality through Municipal

Infrastructure Grant

Bulk Sewer Infrastructure R 1 500 000.00 R 1 500 000.00

Electrical Bulk Contribution R 1 500 000.00 R 1 500 000.00

Road (From Drift Boulevard to Portion 130 on Larsens) Km???

R 3 400 000.00 R 3 400 000.00

TOTAL R 6 900 000.00 R 6 900 000.00

INTERNAL SERVICES

Roads (1140m2) R 5 458 320.00 R 5 458 320.00 Gauteng Human Settlements or Municipal


Water Infrastructure R 855 171.00 R 855 171.00

Sewer Infrastructure R 1 305 984.00 R 1 305 984.00

Storm water Infrastructure R 1 074 450.00 R 1 074 450.00

Professional Fees R 2 337 489.02 R 2 337 489.02

TOTAL R8 927 414.02 R 8 927 414.02

ELECTRICAL Cable Reticulation and kiosks R 2 258 400.00 R 2 258 400.00 Municipal


2x Miniature Substation R 640 000.00 R 640 000.00

23 Street Lights R 335 100.00 R 335 100.00

Trenching R 167 000.00 R 167 000.00

Professional Fees R 673 071.63 R 673 071.63

TOTAL R 4 073 571.00 R 4 073 571.00

TOP STRUCTURE

RDP/BNG HOUSE: 83 Units R 105 000.00 R 8 715 000.00 R 8 715 000.00 BNG Subsidy

FLISP: 69 Units R 180 000.00 R12 420 000.00 R 6 693 000.00 Beneficiaries R 5 727 000.00 FLISP Subsidy

Serviced Stands: 37 Units R 105 000.00 R 3 885 000.00 R 3 885 000.00 Beneficiaries



SUMMARY OF FUNDING PROPOSAL

BUDGET LINE TOTAL

2016-2018 BUDGET

2016/2017 SECURED BUDGET

2016/2017 FUNDING REQUEST

2016/2017 POSSIBLE FUNDING

Project Management and Administration R 1 415 314.00 R 890 244.00 R 458 244.00 R 432 000.00 EPHP NGOs

Land Acquisition R 1 606 118.52 Township Establishment Application R 790 403.00 R 290 403.00 R 290 403.00 Contributions

Electrical and Civil Engineering Services R 20 240 985.02 R 20 240 985.02 R 20 240 985.02 Municipal Infrastructure Grant Dept. of Human Settlement

Top Structures/Houses R 32 520 000.00 R 32 520 000.00 R 10 578 000.00 R 21 942 000.00 Housing Subsidies

Community Facility R 800 000.00 R 800 000.00 R 800 000.00 Mogale City

Social Housing: 50 Units R 150 000.00 R 7 500 000.00 R 7 500 000.00 Social Housing Programme TOTAL R 32 520 000.00 R 10 578 000 R 21 942 000

BUDGET LINE UNIT COST TOTAL COST

PER ANNUM

SECURED

BUDGET 2015/2016

SECURED

BUDGET 2016/2017

SOURCE OF

FUNDING


2016/2017

POSSIBLE

FUNDING

COMMUNITY FACILITIES

Crèche R 150 000.00 R 150 000.00 Mogale City NGOs Business

Social Development

Community Hall R 250 000.00 R 250 000.00

Parks R 225 000.00 R 225 000.00

Taxi Drop Off Station R 175 000.00 R 175 000.00

TOTAL R 800 000.00 R 800 000.00 R 800 000.00 BUSINESS SITE

Shops and Service Industry R 2 000 000.00 R 2 000 000.00 IDC/DTI

Community Bank TOTAL R2 000 000.00 R 2 000 000.00

GRAND TOTAL R 59 372 766.54 R3 089432.52 R11 036 244. R 45 705 388.02



Business Site R 2 000 000.00 R 2 000 000.00 R 2 000 000.00 DTI/IDC TOTAL R 59 372 766.54 R 56 741 632.02 R 11 036 244.00 R45 705 388.02



17. UMNOTHO VILLAGE MANAGEMENT



Umnotho Village Beneficiaries occupy a fundamental role on the management of the

programme as investors and decision makers. Through our monthly meetings beneficiaries are

able to actively participate in decision-making.

Umnotho For Empowerment provides the organisational, technical and administrative

support.

18. FINANCIAL MANANGEMENT AND CONTROLS

Umnotho For Empowerment has adopted a financial policy for the management of its finances.

Umnotho embraces the principle of transparency and accountability.

Umnotho’s Financial Policy

a. Umnotho has appointed an independent auditing firm to audit and check finances.

b. Umnotho’s financial transactions are conducted by means of a banking account.

c. All financial records; bank statements, invoices and petty cash vouchers are kept and filed.

d. Petty cash is allocated and reconciled every two weeks. For every transaction there is a paper

trail.

e. Board of Directors set capped budget lines and the administration sticks to the agreed budgets.

f. Umnotho submits its annual returns and sends its reports as required by law.



19. INDEPENDENT AUDITORS

Wheeler McGregor and Associates Telephone: 011 660 4617

Fax: 086 677 7411

Business Address: Postal Address:

12 Human Street P O Box 1543

Krugersdorp Krugersdorp

1739 1740

Umnotho’s financial statements (Ending 2014 and 2015) are available on request.

20. SUSTAINABILITY PLAN

As much as it is evident there’s a need for housing, the big question is whether the intended

beneficiaries will be able to sustain these houses? The simple reality is that most beneficiaries will be

coming from informal settlements and farms where they were not exposed to the responsibilities that

come with being homeowners. Yes, these houses will introduce costs like municipal rates, water and

electricity and others.

Another major cost will be the maintenance of a mini sewer station, should it be the best option for

Greengate Ext 60.

Umnotho forwards a sustainability plan that looks into the following:

Beneficiary Training: Home Ownership, Infrastructure Maintenance, Environment and

Recycling, Small Business as well as Personal Finance. Beneficiaries should be educated to

appreciate their infrastructure and be able to maintain it. Training has already started via our

monthly meetings where beneficiaries discuss and take decisions on the housing process.

Social Housing as an Income Generator: 51 Rental units are proposed on Greengate Ext 60.

Feasibility studies show that because the beneficiaries contributed towards the land purchase,

their investment should be quantified and interest paid. The funding model on social housing

should acknowledge the investment made by the beneficiaries. This investment promises to

continue making income for beneficiaries. Social housing will also create employment through

maintenance and administration.



Umnotho Community Bank (UCB) as a Financial Institution and Socio-Economic Propeller: The

Community Bank was launched for economic and empowerment opportunities presented by

the housing project. The UCB acts as a savings and credit union where beneficiaries lend each

other money at a lower interest rate to start small businesses or for personal needs. The

interest is shared amongst members. UCB will also explore investment opportunities, home

financing specifically, for beneficiaries who are not able to secure loans and bonds from

commercial banks. The bank has the opportunity to invest in the social housing and this can

further increase a share percentage for beneficiaries. The UCB will also create jobs on the side

of the administration for the bank.

Co-operative Development: Umnotho is currently setting up co-operatives for brick making and

welding. These co-ops have the potential to generate income as well as to create employment.

The demand for these products is already evident.

Umnotho Village Programme as an Employer: Currently the programme has created six (6)

semi/permanent employment opportunities and has the potential to grow. The programme has

also created ten (10) part-time employment opportunities during the programme’s peak times

and special projects.

Farming in Small Spaces: In partnership with other NGOs, Umnotho is aiming to introduce the

Farming in Small Spaces Programme where beneficiaries are encouraged to grow their own

food.

Alternative Solutions: The programme will explore the latest technology and renewable energy

products and generally thinking around managing water, sewer, energy and waste.

The ultimate goal is to allow all residents of Greengate the opportunity to earn an income from the

options available. This will also mean that responsible citizenry can be achieved when all beneficiaries

are able to pay for municipal services. Through these options we believe that the mini sewer plant,

should it be installed, as it will be maintained.

21. MOTIVATION FOR GREENGATE EXT 60

A. THE NEED FOR HOUSING DEVELOPMENT IN MULDERSDRIFT

Greengate Ext 60 has the potential to supply 242 housing units for low-income households and directly

benefit 726 people on an average of 3 people per household. Given the already specified need for low

cost and affordable housing, this proposed township will go a long way in reducing the plight of low-

income households in Muldersdrift.



The Profiling and Recording of Indigent Household in Informal Settlements and Rural Areas in the

Mogale City Local Municipality, 2014: recorded Portion 130 as an informal dwelling with a population

of 36. Formalising Portion 130 will provide better land use and discourage the informal settlement

from growing further. The proposed township will also benefit the current residents by providing them

with decent housing and basic services.

The profiling also recorded Portion 140 Rietfontein, which borders Portion 130 on the East as an

informal settlement with 93 households and a population of 247. Some of the households on Portion

140 are beneficiaries in the Umnotho Village Programme and will be accommodated in the proposed

township. Greengate Ext 60 has the potential to reduce the size of the informal settlement on 140.

Greengate Extension 60 has reserved a 16m road that cuts across the property to allow future

developments on neighbouring properties, and this permits for the development of Portion 140 to be

formalised, if desired. The proposed township will also bring engineering services closer to allow for

future developments.

B. PORTION 130 AS THE IDEAL LOCATION AND IN LINE WITH GOVERNMENT PLANS

The Muldersdrift Precinct Plan identifies the area in and around Portion 130 to be highlighted for high

residential developments. Greengate Ext 60 as a proposed township will be well located between the

Pine Haven, Ruimsig, Lanseria, Northgate and Honeydew business nodes.

The Gauteng Spatial Development Framework, points out that Muldersdrift has significant links with

the Gauteng business core and it is included in the Long Term Densification Area.

The profile on social and economic amenities shows the availability of facilities in close proximity to the

proposed Greengate Ext 60.

C. GREENGATE EXT 60 AS A PROACTIVE APPROACH TO HOUSING AND A PROMISING MODEL

Government and the political principals have expressed frustration with the current dependency on

social grants and the “free house” expectations. The current social schemes are seen to be costly and

unsustainable. The proposed township promises to be a shining example of how intended beneficiaries

can partner with government, the business community as well as NGOs in a cost sharing manner to

deliver low-cost housing.

With the anticipated policy change in terms of housing provision for low-income households,

Greengate Ext 60 would provide a case study as a proactive approach to housing. The Umnotho Village



approach does not perpetuate dependencies on social grants but it inculcates the spirit of responsible

and active participation by intended beneficiaries on projects meant for their own development.

D. PROPOSED TOWNSHIP TO EMPOWER BENEFICIARIES

The development of Greengate Ext 60 will create fulltime and part-time jobs and will also be

responsible for a lot of skills advancement. The construction phase will create part-time jobs and

empower people with abilities. The administration and maintenance of the proposed social housing

units promise to create permanent jobs.

Small businesses will also benefit both during the construction phase and post construction. Artisans

will have the opportunity to provide services during the construction as well as develop skills. Post

construction, we anticipate small businesses to thrive and we also expect the emergence of new

businesses presented by the new development.

Brick making and welding co-operatives will also see the return of their investment during the

construction of the houses and they are expected to generate income as well as to create jobs.

Opportunities for these co-ops do not only rely on Greengate Ext 60 but stretch beyond as Umnotho

continues to propose developments. The development pressure in Muldersdrift also brings an

enormous demand for bricks, which can benefit these co-ops.

Most importantly the proposed township will be providing the much-needed houses to low-income

households. The township also promises to locate poor households within the massive development in

and around Muldersdrift. This location will go a long way in affording people access to employment

opportunities at close proximities and strengthening the fight against poverty.

The township will be rectifying the injustice of the previous government that located low-cost housing

on the peripheries of towns. The desire for an integrated low-cost and affordable housing

development that is well located closer to employment opportunities and social amenities will be

achieved.

E. CONTRIBUTIONS BY BENEFICIARIES

Of enormous motivation to Umnotho, is the beneficiaries’ commitment and desire to realise these

houses. Beneficiaries did not only contribute to purchase land and fund feasibility studies but they are

also saving towards the construction of their houses. The savings program was only started 3 months



ago (September 2015) and the beneficiaries have already amassed a total of R 204 804.55 (16 February

2016).

Beneficiaries are saving towards building their own houses and would be ready to go, should the

project achieve serviced stands. Should beneficiaries access housing subsidies though, and then the

savings will be used to complement the subsidies to achieve better housing products. And for those

who qualify for FLISP, the savings will be used to fund the portion of finance for the house that is

required, from the beneficiary.

What’s encouraging is that 28% of the beneficiaries were supported by their employers to meet the

Umnotho Village Project Contribution. Ball Straathof Pty Ltd paid for 13 employees and this shows the

commitment by business on issues of housing for their employees. We believe once we have obtained

approvals this number will increase. The township approval will excite more confidence and assurance

to business and the community at large to support the housing development.

The Umnotho Community Bank has the potential to increase a sizeable share for beneficiaries in the

investment opportunities presented by the proposed development. Depending on the funding model

for social housing units and the commercial stand, the bank can secure a sizable share on the total

investment.

The Donate A Brick campaign also stands a chance of making a sizable contribution by bringing down

the construction costs for beneficiaries. Umnotho as an NPO is well suited to receive donations and its

Tax Exemption status also stand to benefit since donation certificates can be issued.

The current legislation and policy framework to a certain extend have created a conducive

environment for self-help housing projects. The reintroduction of the EPHP, the announcement by

Minister Lindiwe Sisulu on supporting EPHP and the call by the NDP to come up with sustainable

funding models for housing, all blend together in support of the Umnotho Village approach proposed

on Greengate Ext 60.

F. ETHEMBALETHU AS A MOTIVATION



Ithembaletu Village has also contributed by creating a conducive environment for self-help low-cost

housing in Muldersdrift. We now have a point of reference and a case study to learn from.

It is not a coincident that Umnotho Village was born in Muldersdrift closer to Ithembaletu Village.

Umnotho looks up to Ithembaletu as a shining example. A decade ago, the members of this

community, composed largely of laid-off farm workers, wanted to buy their own farm in a peri-urban

area west of Johannesburg to establish a mixed-use settlement (In Search for Land and Housing in the

New South Africa, The Case of Ithembaletu, 2008). After a long battle with anti-poor laws and

attitudes, today Ithembaletu is a home to people who never stood a chance of owning a house in the

predominantly white owned farms of Muldersdrift.



The success story of Ithembaletu motivates us, and shows us that low-income households can achieve

self-help housing with assistance from government and other role players.

Umnotho welcomes the announcement by Minister of Human Settlements Lindiwe Sisulu: “Our

emphasis for the next five years is mega projects, while allowing for pockets of site and service and

People’s Housing Projects” (Human Settlement Indaba. Sandton Convention Centre- 16 October 2014).

22. CASE STUDY BENCHMARK: Ithembaletu Village

The case of Ithembaletu highlights three important factors. The first being the need for housing in

Muldersdrift, then the challenges in terms of securing land for low-cost housing and lastly the poor

people’s success in stimulating and contributing towards the realisation of their own houses.

A. THE VISION

In the mid-1990s, Mr Molefi Selibo, a community leader and long-time resident in the same area was

motivated by the widespread tenure insecurity and poor living conditions of the farm workers and

farm dwellers in the Muldersdrift area. He began to organize families into a housing association.

Beginning with about 250 families, the association started a savings scheme aimed at acquiring land in

the area, upon which they would build their own homes and carry out small-scale farming.

B. LAND

In 1997 the Muldersdrift Home Trust Foundation (MHTF) registered as a Section 21 (not-for-profit)

organisation. In that year the association made its first offer to purchase Portion 120 Rietfontein, a

smallholding of 8.5 hectares in Muldersdrift. The deed of sale was concluded however, during the

course of the negotiations with the seller on the method of payment, the sale was suddenly cancelled.

A group of neighbouring landowners had made a successful counter-offer to purchase the land, which

began MHTF’s long battle with the “Not In My Backyard” syndrome.

MHTF made an offer for Portion 77 Rietfontein, adjacent to the first plot. The offer was also initially

accepted and the MHTF entered into a purchase agreement. Despite the organisation’s proven saving

record, they could not get a top-up loan from the bank to cover the purchase price over and above

their accumulated saving. Fortunately the seller agreed to an instalment sale for the balance of the

purchase price. With 82% of the purchase price paid, the MHTF received a letter from the landowner

cancelling the second sale agreement and attempting to return the sum of R126 000 paid already.



Two years after the matter came before the High Court and it became clear that the landowner had no

legal basis to cancel the sale. The neighbouring landowners proposed an out-of-court settlement of

R270 000 plus the R126 000 refund which was accepted by the MHTF with the condition that

alternative land can be purchased provided this land did not fall within a prescribed circumference

around the designated land of the white neighbours, who had contributed to the fund.

In 2001 MHTF entered into another agreement for Portion 78 Driefontein (roughly 31 hectares) for

R650 000. After a battle with raising the funds and challenges with the Gauteng Department of

Housing the National Department of Land Affairs purchased the land in the name of Mogale City Local

Municipality.

D. GOVERNMENT’S SUPPORT AND THE CONSTRUCTION OF HOUSES

After the land purchase, government continued to support the MHTF to build houses. Mogale City

Local Municipality funded the bulk services infrastructure, and the Gauteng Department of Housing

funded the installation of internal services and top structures (houses) through a Community Builders

Programme.



23. CONCLUSION The current housing situation dictates an innovative and proactive approach in achieving housing

delivery for low-income households. The key puzzle pieces to this approach have been identified as beneficiaries themselves, government, business and NGOs. These key players have been working in

silos and the call is for them to work together in facing their common problem which is homelessness.

The desire and the commitment by beneficiaries in advancing for the approval of Greengate Ext 60 is so humbling and motivating. These beneficiaries have picked up the baton to begin the journey to

sustainable housing delivery and it now lies on the rest of the community to also join in.

____________________________

Leslie David Gama Chairperson- Umnotho For Empowerment

umnotho proposal funding (draft 1)

Documents