148459 HUMAN SETTLEMENT BOOK DRAFT TWO

Housing The Nation

Housing The Nation

(1) Everyone has the right to have access to adequate housing. (2) The State must take reasonable legislative and other measures, within its available resources, to achieve the progressive realisation of this right (3) No one may be evicted from their home, or have their home demolished, without an order of court made after considering all the relevant circumstances. No legislation may permit arbitrary evictions. Section 26, The Constitution of the Republic of South Africa

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This book is produced by the Chief Directorate Communications All rights reserved. No part of this book may be produced or transmitted in any form or by any means, electronic, or mechanical or by photocopying, recording, or microfilming, or stored in any retrieval system, without the prior written permission of the Department of Human Settlements. ©Department of Human Settlements, Republic of South Africa, Pretoria, 2023 Department of Human Settlements Govan Mbeki House 240 Justice Mahomed Street Sunnyside Pretoria 0001

Call Centre Toll free: 0800146873 Fraud & Corruption: 0800701701 Presidential Hotline: 17737 Email: info@dhs.gov.za Emergency Housing email: EHR@dhs.gov.za Website: www.dhs.gov.za

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Fluerhof mixed housing project, City of Johannesburg, Gauteng

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Minister of Human Settlements: Mmamoloko Kubayi

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Minister’s Foreword The Human Settlements sector contributes to social transformation through the delivery of services that lead to economic transformation. It is the Government’s responsibility to provide shelter, security and comfort for the poor, elderly, disabled and child-headed households. The Department of Human Settlements (DHS) will intensify quarterly performance monitoring on HS Programmes and Projects, MTSF targets 2019-2024 and Blocked Projects that contribute towards the overall sector performance. In terms of Blocked Projects, DHS has embarked on an initiative to address blockages of all the incomplete housing projects. In addition, the Department will analyse the reported data from Stakeholders on compliance with grant frameworks (HSDG and USDG) and respond accordingly to the challenges experienced by Provinces and Metropolitan Municipalities as conditional grant recipients. The financial and non-financial performance information that is received from the Stakeholders is not only focusing on reporting the performance and/or complying with National Treasury prescripts but also on responding to the MTSF targets as set in the approved Provincial Business Plans. We affirm our promise to work towards the achievement of the global commitment in SDG 11 which include making cities and human settlements inclusive, safe, resilient and sustainable. We will also uphold the vision of the New Urban Agenda which deals with informal settlements and slums. South Africa has placed informal settlement upgrading as pivotal in the creation of sustainable human settlements in urban centres. The Upgrading of Informal Settlements Programme is one of the priority programmes of DHS. It will assists the Government to confront the issue of poverty, unemployment, and inequality and focus on households living in informal settlements. There approximately 3 400 informal settlements in South Africa in various stages of upgrading. However, the challenge is that a substantial number of these settlements are located on land that is not suitable for housing and human settlements development. During the current MTSF period, the Department plans to monitor and report on the formalization and upgrading of 1 500 informal settlements. DHS will ensure that the universal design principle is used to address the needs of

vulnerable groups, especially people living with disability. With regards to economic growth, the human settlements sector mobilises private and public investment in property development, contributes to the growth of the construction sector, the development of small, micro and medium enterprises particularly those owned by women and youth. Through the Social Housing Regulatory Agency and National Housing Finance Corporation, the Department will intensify its efforts to crowd-in private sector investments in the social housing sector. Property ownership is a critical enabling tool in accessing economic opportunities. The housing subsidy programme is another programme through which the South African Government addresses skewed land ownership patterns. The issuing of a titles deeds to qualifying beneficiaries is an important milestone towards reducing asset poverty and the Department will work with the Operation Vulindlela to accelerate the issuing of title deeds. The financial year 2023/24 will be the first year in which the Department will be taking over the implementation of the emergency housing programme. As a result, the provincial emergency housing grant and the municipal emergency housing grant ends. The change was necessitated by the desire to create a human settlements disaster response system that will efficiently and timeously intervene to assist the victims of a disaster with quickly and deploy, quality, sustainable and cost-effective housing solutions. I expect that the newly constituted human settlements disaster management team that brings together and leverage the skills capacity from the Department and its entities to be up for this challenge. The Department will continue to change the apartheid spatial development. Our cities continue to develop and expand in a manner the excludes the majority of people. DHS strategy is to acquire pieces of land that once developed will foster integrated communities. The declared 136 Priority Human Settlements and Housing Development Areas (PHSHDAs) intended to advance Human Settlements Spatial Transformation are also central to tackling this challenge. We will continue to attract and recruit the skills necessary for us to deliver the services to our people. We have accelerated process of filling the vacancies at senior management level.

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Deputy Minister of Human Settlements: Pam Tshwete

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Message from the Deputy Minister: Pam Tshwete O n the 27th of April this year, our country celebrated 29 years of freedom that ushered in the democratic dispensation since the historic inclusive general elections of April 27, 1994. Many substantive changes have happened in South Africa since that historic date. Among the most positive developments is that the democratic set up marked an end to the continuation of the apartheid spatial planning. The democratic Government adopted a new policy approach of providing housing to the previously disadvantaged. Programmes of the Department of Human Settlements have, amongst others, been designed to ensure that our government provides housing for all qualifying South Africans. This includes military veterans, women, youth, and persons with disabilities. In our policies, we have also ensured that we prioritize the destitute, elderly and child-headed households. Through the Community Schemes Ombud Services (CSOS), we are supporting our people in community residential schemes by providing a regulatory environment for all parties. As the Department of Human Settlements, we

have invested a lot of work in ensuring that the property sector is transformed through our regulatory agency, the Property Practitioners’ Regulatory Authority (PPRA), previously known as the Estate Agency Affairs Board. Our entities have indeed been stabilized, with functional Boards in place, and on course to deliver on their respective mandates. Climate change and its devastating effects has finally become our reality and the recent floods are a warning that more disasters will befall us as South Africa and indeed as the world. In March this year, the Minister announced very progressive policy changes on the Emergency Housing Programme. These policy changes will go a long way in assisting with accelerating the speed of delivery during emergency situations across the country and the provision of alternative accommodation for our people. “Democracy and human rights are inseparable. We cannot have the one without the other.” Nelson Rolihlahla Mandela

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Acting Director-General of Human Settlements: Sindisiwe Ngxongo

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Acting Director-General’s Statement N otwithstanding many challenges that Government, particularly the Department of Human Settlements (DHS) faces, important milestones have been set throughout the path towards eradicating South Africa’s housing backlog using our programmes to achieve substantive social transformation. DHS’ focus is premised on creating new human settlements that are fully integrated, provide adequate housing and improve the living standards of South Africans and ensure that more people enjoy security of tenure. Our department continues to make important progress towards the realisation of these goals despite other challenges such as the limitation of resources. As outlined in the Department’s 2019/2024 Medium Term Strategic Framework (MTSF), the Department continues to prioritise the provision of housing opportunities for designated groups and availing land and serviced sites to fast-track delivery. Increased effort has also been directed at the upgrading of informal settlements to ensure that more people live in decent and conducive environments. And that residents have access to all the essentials such as clean running water, electricity, roads, and other important facilities such as schools and clinics.

The Department has also prioritised the eradication of the title deeds backlog to ensure that beneficiaries of government housing have full ownership of their properties. This will increase the number of people who own assets thus correcting our country’s skewed property ownership patterns. At the same time, the Government realised that many people fell in what is generally referred to as the “gap market”. These are people who often find it difficult to qualify for housing finance because of their income levels, while they also do not qualify for the Government’s free housing scheme. The Department of Human Settlements is improving its social and rental housing programmes as well as our housing finance scheme. The new First Home Finance programme launched in March this year is aimed at ensuring that more people have access to government financial assistance and make the process of acquiring a house more affordable. We will be collaborating with all partners, including local and provincial governments, civil society, and the private sector to ensure the success of all our programmes.

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Tshwane Townlands Social Housing Project, City of Tshwane, Gauteng

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Fairview Link Social Housing Project, Gqeberha, Eastern Cape

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POLICY CHANGES: EFFECTIVE FROM 01 APRIL 2023 The Department of Human Settlements will be taking over the implementation of emergency housing programme. This approach will enhance collaborative planning amongst the three spheres of Government and simplify their response to disasters.

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BNG units will be fitted with solar kit so that these households can have access to basic electricity. This will help reduce the network load and municipal financial stability.

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Houses for persons with disabilities are vulnerable to burglaries and other security issues. All the units delivered to persons with disabilities will be fitted with burglar bars to ensure that they are not vulnerable to burglaries and other security issues.

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Provision of tanks and boreholes ensures that rural communities have access to clean portable water

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The subsidy quantum will increase for the 2023/2024 financial year, mainly to address the ever-increasing building costs. The adjustment will ensure that we speed up the pace of delivery and address the quality of homes provided to beneficiaries.

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• BNG services and top structure will move from R 196 887 to R 255 364. • House for persons with disabilities will move from R 209 071 to R 271 166. • Military veterans’ houses will move from R 240 607 to R 312 069.

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First Home Finance will increase from R147045-00 to R169265-00 Social Housing will increase from R327667-00 to R424984-00

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Emergency Housing Command Centre has been established to coordinate the national disaster response. Communities will have a direct access to report incidents via email at EHR@dhs.gov.za.

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Informal Settlements Upgrading T he Upgrading of Informal Settlements Programme (UISP) is one of the most important Programmes of Government. The Programme seeks to incrementally improve the living conditions of communities by providing secure tenure, access to emergency services as well as basic services and housing, which can provide a platform/foundation to households to improve their social and economic circumstances and promote sustainable livelihoods. The UISP has three main objectives – tenure security, health, and empowerment. Under the UISP, beneficiary communities must be involved throughout the project cycle to ensure that existing community networks are not compromised and to empower communities to take charge of their own settlements’ design standards and housing solutions. All members of the community, incluading those that do not qualify for subsidies, are included. The Programme therefore aims to bring about social cohesion, stability, and security in integrated developments.

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Informal Settlements Upgrading Programme

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Westonaria Borwa Integrated Human Settlements Project, Gauteng

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Informal Settlements Upgrading Project, Seshego ext.133, Limpopo

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Affordable Housing FIRST HOME FINANCE F irst Home Finance is a once-off housing finance subsidy that enables qualifying beneficiaries to buy or build their first homes on affordable basis. First Home Finance was developed by the Department of Human Settlements to enable sustainable and affordable first-time home ownership opportunities to South Africans and legal permanent residents whose household income is from R3 501 up to R22 000 per month. This market segment is generally referred to as the ‘gap’ market. Households in this income band generally find it hard to qualify for housing finance to access their first homes as; their income is regarded as low for mortgage finance, but too high to qualify for a government ‘free-basic house’, the RDP or BNG house.

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First Home Finance Programme, Sky City, Gauteng

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First Home Finance Project, Savanna City, Gauteng

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Lerato Park Integrated Project, Kimberley, Northern Cape

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Social Housing S ocial Housing is a rental or co-operative housing option for households earning between R1 850 - R22 000 per month. Social Housing projects require management by an institution, which should be an accredited Social Housing Institution. Social Housing projects are developed within areas that contribute to spatial, economic, and social development. “The demand for social housing and student housing is overwhelming. Our Social Housing Programme has about R140bn worth of assets. In his fourth State of the Nation Address, His Excellency President Cyril Ramaphosa announced that R64bn of the R700bn from the Infrastructure Fund will be spent on social housing and student accommodation. SHRA partnered with the Infrastructure Fund to develop six new social housing projects from transformed delivery agents with an allocation R305 million over the next two years.” Minister of Human Settlements: Mmamoloko Kubayi 10/05/2023

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Maitland Mews Social Housing Project, Cape Town, Western Cape

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Devland Social Housing Project, Johannesburg, Gauteng

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Aloe Ridge Social Housing Project, uMgungundlovu, KwaZulu-Natal

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Rural Housing Project, Amathole District Municipality, Eastern Cape

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Rural Housing Project, Winnie Madikizela Mandela Municipality, Eastern Cape

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Interventions War Room, Destitute, Military Vets M inister Mmamoloko Kubayi was appointed to head the portfolio of Human Settlements in 2021, where she immediately conducted provincial oversight visits to assess the progress of service delivery in the respective municipalities. From her analysis it was noted that there is slow progress on achieving the following strategic outcomes of the NDHS: accelerated delivery of housing opportunities; improved access to basic services; more efficient land utilisation and improved property market. In addition, the Minister noted with great concern the lack of technical capacity within the human settlements sector, which ultimately contributes to disintegrated project plans, unrealistic project estimates and poor implementation and monitoring of infrastructure projects. Therefore, to improve on these findings, a National Human Settlements War Room (NHSWaR) consisting of six specialists was established in 1 May 2022. This team possess qualifications and expertise in the following fields: Governance, Disaster Management, Town Planning, Civil Engineering and Project Management. The scope of work for this task team included the following, but not limited to coordinate, monitor and fast track the implementation of multiple projects in provinces and municipalities; provide oversight and support in the implementation of HSDG, USDG and ISUPG projects; provide project tracking tools to enhance monitoring; develop methodologies to unblock delayed projects and to provide strategic intervention plans to the administration through Ministerial advisories.

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Fire Interventions in KwaZulu-Natal

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Eastern Cape Floods Intervention

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Minister Kubayi doing site visits after the Eastern Cape Floods

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Deputy Minister Tshwete leading the Intervention team in uMzimkhulu, Kwa Zulu-Natal

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Floods interventions in Eastern Cape

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Fire Interventions in Alexandra, Gauteng

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War room interventions in Gqeberha, Eastern Cape

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Provincial Departments Eastern Cape

T he department is prioritising the provision of decent and secure shelter for the destitute and other vulnerable groups. This is of great importance in the persistent fight against Gender Based Violence and Femicide which has highlighted the vulnerability of child headed households, women, and the elderly. In the current financial year, the department has developed 3 400 serviced sites with 3 266 rural and 134 in urban areas. The Department has 4585 completions to shelter destitute households with over 7000 housing units in various stages to reach the target of the current year as well as the MTSF targets. This will ensure that the previously disadvantaged group has shelter and benefit from the housing opportunities. This intervention is currently benefitting approximately 5 338 households comprising of the elderly, women, people living with disabilities, youth, and military veterans.

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Free State

T he Department will be accelerating the completion of all incomplete houses, eradication of mud houses, prioritising houses for military veterans and removal of asbestos roofs. Informal settlements upgrading and eradication of title deeds backlog remains our key priorities. In the current financial year, the department is planning to create 1 028 employment opportunities from the implementation of the planned projects, and these will mainly focus on women and youth.

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Gauteng

The Department will focus on Hostel Redevelopment: It is proposed that a unique Housing Response Plan is developed for each hostel as follows: • Assess the bulk requirements of all 65 hostels and propose interventions. • Perform a Socio-Economic Survey to determine the extent of the housing problem in each hostel and surrounds. • Identify land within a specified radius of each hostel in response to the problem and perform desktop feasibility studies.

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KwaZulu-Natal

T he KwaZulu-Natal Department of Human Settlements views job creation as a key to economic recovery, and places the youth, women, and persons with disabilities at the core of its programmes. Fifty-six youth will be appointed in the Department this year through the Internship (28), Work Integrated Learnership (20) and Candidacy Development Support (8) Programmes. Towards creating an enabling environment to support women entrepreneurs, R25m of construction work is to be allocated to 25 women owned companies. Training will be extended to 90 women-owned businesses.

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Limpopo

I n keeping with the provincial targets which includes 30 732 houses, 8 435, serviced sites, 744 Rental Housing Units and 10 000 registered title deeds, as the department we poised ourselves to appoint eligible civil and structural engineers and contractors to achieve a target of 49 911 housing opportunities by 2024. To support rapid land release, the department endeavours to service 6 055 sites. This will ensure that while low-cost houses will be built in the urban areas, beneficiaries who do not qualify to receive Breaking New Ground (BNG) houses can build their own houses.

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Mpumalanga

The Department priorities upgrading informal settlements through the provision of 2 934 serviced stands using the upgrading of informal settlements programme. The Integrated Residential Development Programme (IRDP) will be utilised to invest in 9 Priority Human Settlements and Housing Development Areas (PDAs).

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Northern Cape

The department plans to spend R115 014 302 in the mining towns of Gamagara, Ga-Segonyana, Kgatelopele, Tsantsabane and Khâi Ma. In partnership with HDA and DHS, the department is currently assisting local municipalities with the development of precinct/ development plans for the following Priority Human Settlements and Housing Development Areas (PHSHDA): Kimberley, Kathu, Aggenys/Pofadder, Upington and Postmasburg/Tsantsabane

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North West

Gabonewa Social Housing Project, Moses Kotane Municipality, Northwest

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Western Cape

T he upgrading of informal settlements continues to be a priority for the department. 50 informal settlements have been identified for a variety of upgrade interventions through our ISUPG. This is anchored in a transversal and Provincial-wide informal settlement upgrading strategy to enhance, simplify, and accelerate informal settlement upgrading interventions through an innovative, people centred, and partnership-based approach.

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Community Residential Units, Emalahleni Municipality, Mpumalanga

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The Community Schemes Ombud Service (CSOS)

T he mandate of the CSOS is to establish a world-class dispute resolution service within community schemes characterised by organisational excellence and a conducive organisational culture. To promote good governance of community schemes by developing and implementing appropriate guidelines to enhance stability and harmonious relations amongst the parties. To roll out massive educational campaigns to educate and train stakeholders within community schemes and the public at large. To enhance community schemes’ tenure as alternative tenure option and To develop and implement appropriate organisational systems, controls, and measures to enhance financial, economic, and organisational efficiency.

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Housing Development Agency (HDA)

T he Housing Development Agency has two primary objectives. The first is to identify, acquire, hold, develop and release well located land and buildings for human settlements. The second is to provide project delivery services in the form of planning, capacity support and capability, and project management. The HDA works on projects in particular areas at the specific request of provinces and local municipalities.

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The National Home Builders Registration Council (NHBRC)

T he mandate of the National Home Builders Registration Council is to protect the interests of housing consumers and to ensure that builders comply with the prescribed building industry standards as contained in the Home Building Manual. Our goal is to assist and protect housing consumers from any unscrupulous home builders who: • Deliver substandard houses

• Bad workmanship and • Poor quality material

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National Housing Finance Corporation (NHFC)

O ur funding focus has primarily been social housing institutions, non-banking retail intermediaries, privately owned property developers, construction companies, and investors. The secondary focus had been loan origination and other forms of wholesale funding (equity and quasi-equity) that was made available to intermediaries that operate within the affordable housing market sector. With the merger of RHLF and NURCHA into NHFC, our mandate has since expanded to include rural housing as well as supplying bridging finance to developers and construction companies in the subsidy housing market.

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The Property Practitioners Regulatory Authority (PPRA)

The Property Practitioners Regulatory Authority (PPRA) has the responsibility to regulate, maintain and promote the conduct of property practitioners. The authority seeks to enable ease of conducting business in the property sector, while ensuring compliance with the Property Practitioners Act 22 of 2019 (PPA) and applicable legislation and giving full effect to the transformation objectives of the PPA

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Social Housing Regulatory Authority (SHRA)

S ocial Housing is a state subsidised rental housing option targeted at low to medium income groups (R1850 – R22 000). The purpose of social housing is to contribute to the national priority of restructuring South African society to address structural economic, social, and spatial dysfunctionalities. Social housing contributes to widening the range of housing options available to the poor. The SHRA implements the social housing programme by accrediting Social Housing Institutions (SHIs) who then submits projects for accreditation and funding. Other delivery agents can also qualify for funding. These delivery partners assist the SHRA to upscale the delivery of social housing across South Africa.

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Human Settlements Indaba 04-05 September2022

D uring the two days of the Indaba, participants agreed on numerous areas that required special attention. These included the availability of land for human settlements development and planning to ensure that resources are allocated to the right and impactful projects. “It should not take so long to unlock land for human settlements in various localities,” said Minister Kubayi adding that projects could not be left to collapse due to poor intra-governmental planning and coordination.

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South Africa and UN-Habitat sign Memorandum of Understanding to accelerate housing development

The Minister of Human Settlements, Mmamoloko Kubayi together with UN-Habitat Executive Director, Maimunah Mohd Sharif signed a Memorandum of Understanding as the first step towards establishing the UN-Habitat office in South Africa. The UN-Habitat’s presence in South Africa will help the country to tap into its expertise to accelerate housing development. Areas expected to benefit from this include upgrading of informal settlements, safer cities, institutional capacity on financing sustainable urban development, data generation and analysis for smart cities and planning and building urban resilience.

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Scottsdene Social Hosing Project, Western Cape

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Hampton Social Housing Project, KwaZulu-Natal

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Walmer Link Social Housing Project, Eastern Cape

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