Human Settlements South Africa Yearbook 2015/16 - South Africa Yearbook 2015/16
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Human Settlements
South Africa Yearbook 2015/16
Human
Settlements
South Africa Yearbook 2015/16 259Human Settlements
The Department of Human Settlements (DHS) service to resolve disputes emanating from
takes progressive steps towards achieving the within community schemes. The Act is aimed
vision of the National Development Plan (NDP) of at addressing any problems and disputes
transforming human settlements and the spatial among participants involving the control
economy to create more functionally integrated, and administration of finances, facilities and
balanced and vibrant urban settlements. behaviour.
More specifically, the department planned • The Estate Agency Affairs Act, 1976 (Act 112 of
to implement the human settlements reforms 1976), the Finance-Linked Individual Subsidy
before 2019. Programme (FLISP) and the Mortgage Default
The reforms aim to ensure that poor Insurance are expected to address challenges
households have adequate housing in better associated with the upgrading of slums,
living environments, to support the development access to basic services, accreditation of key
of a functional and equitable residential property municipalities and land acquisition for human
market, and to improve institutional capacity and settlements. The programme of improving
coordination for better spatial targeting. property markets remains a major challenge.
Provinces, municipalities and the department’s • The Housing Act, 1997 (Act 107 of 1997),
public entities are the implementing agents of provides for, among other things, facilitating
national policy directives. They are responsible a sustainable housing-development process.
for delivering housing opportunities, funded by For this purpose, it lays down general principles
transfers from the department. applicable to housing development in all
The DHS must, after consultation with spheres of government; defines the functions
provinces and municipalities, establish and of national, provincial and local government
facilitate a sustainable national housing in respect of housing development; and
development process by: provides for the financing of national housing
• setting broad national housing delivery goals; programmes.
• promoting consultation with all stakeholders • The Rental Housing Act, 1999 (Act 50 of 1999),
in the housing delivery chain, including civil defines the responsibility of government in
society and the private sector; respect of the rental housing market. It creates
• determining national policy, including national mechanisms to advance the provision of rental
norms and standards, in respect of housing housing property and promotes access to
and human settlements development; adequate housing by working to ensure the
• monitoring performance of provinces and proper functioning of the rental housing market.
municipalities against housing budgetary and It furthermore provides for the establishment
delivery goals; and of rental housing tribunals. The Act gives
• building the capacity of provinces and tribunals the power to make rulings, which are
municipalities. deemed to be rulings of a magistrates’ court
in terms of the Magistrates’ Courts Act, 1993
Legislation and policies (Act 120 of 1993), and which are enforced
Even though the name of the department in terms of the Act. The Act provides for the
changed in 2009 from Housing to Human facilitation of sound relations between tenants
Settlements, the department still draws its and landlords and for this purpose, lays down
mandate from the Constitution of the Republic general requirements relating to leases.
of South Africa of 1996 and section 3 of the Among other things, the Act prescribes that:
Housing Act, 1997 (Act 107 of 1997). leases may be oral or in writing; tenants can
• The Sectional Titles Schemes Management demand a written lease; the landlord must give
Act, 2011 (Act 8 of 2011), which provides the tenant a written receipt for all payments
for the establishment of bodies corporate to received by the landlord from the tenant; the
manage and regulate common property in landlord may require that the tenant pay a
sectional title schemes and the establishment deposit before moving in; the balance of the
of an advisory council to advise the Minister. deposit and interest must be refunded to the
• The Community Schemes Ombud Service tenant by the landlord not later than 21 days
Act, 2011 (Act 9 of 2011), which could after the expiry of the lease.
fundamentally change the lives of people • The Rental Housing Amendment Act, 2007
living in high-rise flats, inner-city buildings, (Act 43 of 2007), among other things, provides
townhouse complexes and other gated for rulings by rental housing tribunals, to
communities. The Act establishes an ombud expand the provisions pertaining to leases and
South Africa Yearbook 2015/16 260Human Settlements
i
to extend the period allowed for the filling of The Department of Human Settlements has delivered 4,3
vacancies in rental housing tribunals. million houses and housing opportunities since the dawn
• The Social Housing Act, 2008 (Act 16 of 2008), of democracy. These opportunities include over 2,8 million
aims to establish and promote a sustainable fully-subsidised houses, 121 784 social/rental housing,
6329 Financial Linked Individual Subsidy Programme and
social housing environment. It defines the
986 608 serviced sites. This historic milestone has provided
functions of the national, provincial and local a roof for more than 20 million people. The national launch
spheres of government in respect of social took place in Cosmo City, one of the integrated priority
housing. It provides for the establishment projects around the country which, in 2016, celebrated 10
of the Social Housing Regulatory Authority years of existence.
(SHRA) to regulate all social housing
institutions obtaining or having obtained public
funds, and it allows for the undertaking of
What is least understood yet nevertheless a major
approved projects by other delivery agents
contribution to asset formation by beneficiaries
with the benefit of public money. The DHS
is that each time government facilitates the
has taken steps to assist governance and
acquisition of a house, it comes with its own land.
regulatory processes through the promulgation
Nationally, the houses were financially assisted
of the Social Housing Act of 2008 and the
by the National Housing Finance Corporation
establishment of the SHRA. The Act provides
(NHFC) through FLISP, which gives all qualifying
for the recognition and accreditation of social
beneficiaries the certainty of being granted
housing institutions. Provincial governments
loans, bonds or mortgages by banks and other
are given responsibilities to approve, allocate
financial institutions.
and administer capital grants, as well as The DHS has also been buying up high-rise
administer the Social Housing Programme. buildings in inner cities, and refurbishing and
Local governments are required to ensure transforming them from office space to rented
access to land, municipal infrastructure and family units. This form of social housing has
services for approved projects in designated become popular with young couples, students
restructuring zones. Local governments are and single mothers.
also responsible for initiating the identification Areas close to townships, known as “no-
of these restructuring zones. The Act’s major man’s land” that were used as buffer zones to
purpose is the establishment of the SHRA. separate black townships from white areas are
being eradicated. The land is being used for
Human Settlements Vision 2030 housing with occupants being moved closer to
Human Settlements Vision 2030: On the Road cities.
to 2050 aims to provide houses and services New non-racial towns and cities are constantly
in rural and urban areas. It focuses on the total being developed to fulfil the principle of a united
eradication of backlogs of more than 2,1 million people in non-racial residential areas.
housing units, which translates to about
12,5 million people. Integrated Urban Development
Under Vision 2030’s framework, most South Framework (IUDF)
Africans will have affordable access to services South Africa’s grand plan to change the face
and a quality environment; instead of living in of urban development is set to create vibrant
isolation on the periphery of cities. spaces that are geared towards inclusive living
The DHS is a key player in the property market. and growth in the country’s towns and cities.
A study found that of the six million registered In April 2016, South Africa adopted the IUDF
residential properties in the Deeds Registry, 1,44 to steer urban growth towards a sustainable
million were government-subsidised houses. model of “compact, connected and coordinated
This represents just less than a quarter of towns and cities”.
registered residential properties and could The IUDF provides a roadmap to implement
increase to 35% if the backlog in issuing title the NDP vision for spatial transformation.
deeds is overcome. It addresses issues such as densification,
The value of a title deed provides the following: the delivery of basic services, infrastructure
• protection of rights to a property development and rural-urban linkages. Through
• asset security the plan, government aims to promote urban
• facilitation of entry of ordinary South Africans resilience, create safe urban spaces and ensure
as players in both the property as well as the that the needs of the most vulnerable groups are
financial markets. addressed. The objective is to transform urban
South Africa Yearbook 2015/16 261Human Settlements
spaces by: This formed part of their plan to ensure that by
• Reducing travel costs and distances 2030 all South Africans live in adequate housing.
• Preventing further development of housing in
marginal places Inclusionary Housing Policy
• Increasing urban density to reduce sprawling The New Economic Growth Path identified
• Improving public transport and the coordination energy, transport, roads, water, communication
between transport modes and housing as key areas in its strategy to
• Shifting jobs and investment towards dense fast-track sustainable growth, employment and
peripheral townships. equity creation.
• Rapid urbanisation in Africa This was given a boost by the Presidential
According to the United Nations (UN), 54% of Infrastructure Coordinating Committee (PICC)
the world’s population lives in urban areas and and was a breakthrough in the effort to reverse
this will increase to 66% by 2050. the system of apartheid infrastructure and its
Continuing population growth and urbanisation spatial planning. The introduction of the PICC
will add two and a half billion people to the means the beginning of the end for government
world’s urban population by 2050. operating in silos.
The UN states that Africa is expected to be Sanitation, which provides the most basic
one of the fastest urbanising regions between protection to the private dignity of citizens, is
2020 and 2050. an internationalised programme through the
UN millennium development goals (MDGs)
Social Contract for Rapid Housing as agreed to by all UN member states. In the
Delivery PICC, this programme has been made a
The Social Contract for Rapid Housing national priority. This is also one of the key
Delivery was conceptualised to support the recommendations of the Ministerial Sanitation
implementation of government’s Breaking New Task Team’s preliminary findings.
Ground (BNG) strategy, which was launched in Private-sector developers, in collaboration
2004 with the aim to accelerate the delivery of with financial institutions, have undertaken
housing as a key strategy for poverty alleviation. several inclusionary housing initiatives.
Through partnership between the DHS, These included housing projects in areas such
banking sector, private sector, non-governmental as Bertrams and Cosmo City, Johannesburg;
organisations and other stakeholders, the Olievenhoutbosch, Pretoria; Hlanganani,
country witnessed the creation of more than 1.2 Springs; and Blythedale, outside Durban.
million housing units in five years. This followed Multiple housing projects that are designed as
a Social Contract for Rapid Housing Delivery mixed-income housing developments ensure
signed in September 2005 during a Housing cross-subsidisation and achieve inclusive
Summit. housing objectives.
In 2014, the department together with private
sector partners and stakeholders recommitted Budget
and signed a Social Contract for the Development The DHS took progressive steps towards
of Sustainable Human Developments and achieving the NDP’s vision of transforming
Improved Quality of Household Life. human settlements and the spatial economy to
Through the contract, the partners set an create more functionally integrated, balanced
ambitious target to deliver 1.5 million housing and vibrant urban settlements. More specifically,
opportunities in the next five years. the department will be implementing the human
The partners, including the private sector, settlements reforms in government’s 2014-2019
mining sector, banking sector; as well as national, medium term strategic framework. The budget
provincial and local spheres of government, was allocated as follows:
signed the contract during the National Human • Provinces: R59,1 billion
Settlements Indaba held in Johannesburg. • Metropolitan Municipalities: R33,3 billion.
The signatories of the social contract, jointly Transfers are expected to grow at an average
undertook to work together to deliver 110 000 annual rate of 6,3% over the period to
affordable housing opportunities for the gap support the delivery of 1,495 million housing
market, 70 000 affordable rental opportunities, opportunities across the country by 2019.
undertake 50 catalytic projects and install basic • Catalytic projects: The main driver of delivery
services and infrastructure in 2 000 informal will be mixed use catalytic projects, led by the
settlements. department’s master spatial plan. A catalytic
South Africa Yearbook 2015/16 262Human Settlements
project is a human settlements project that to finance the construction of a house that
intends to initiate change away from isolated complies with the ministerial minimum norms
and segregated communities towards more and standards.
spatially, socially and economically integrated The house is then transferred to the qualifying
communities. Thirty catalytic projects will beneficiary.
be initiated by 2017/18, and the department One of the DHS areas of responsibility in the
expects to disburse R315 million to eight delivery of human settlements relates to the
metropolitan municipalities as capacity funding bottom-most end of the market, where it provides
towards packaging catalytic projects. housing subsidies to the poor.
This is where the bulk of the housing backlog
Subsidies and funding exists, affecting mainly those who earn below
Finance-Linked Individual Subsidy R3 500 a month.
Programme A total of 563 000 fully-subsidised housing
The South African Constitution enshrines the right units are expected to be built by 2019.
of everyone to have access to adequate housing
and makes it incumbent upon government to Individual subsidies
take reasonable measures to achieve this. An individual subsidy provides qualifying
Amongst the many programmes, FLISP is beneficiaries with access to housing subsidies
specifically intended for the market segment to acquire ownership of improved residential
whose income is inadequate to qualify for a properties (a stand or house) or to finance
home loan, but exceeds the maximum limit the acquisition of a serviced site linked to a
applicable to access government’s ‘free basic house-building contract that is not part of an
house’ subsidy scheme. This market segment, approved housing-subsidy project.
generally known as the ‘affordable/gap’ market, The latter option is only available to
earns between R3 501 and R15 000 per month. beneficiaries with access to housing credit. The
Households in this segment, if buying a home subsidy amount of R84 000 comprises R6 000
for the first time, may apply for a FLISP subsidy. for the raw land cost, R22 162 for internal
The subsidy attaches to the beneficiary and not municipal engineering services and R55 706 for
to the property. This is used to decrease the the cost of constructing the top structure.
mortgage bond and applies only to people who
have never been assisted by government. It is Consolidation subsidies
disbursed as a once-off subsidy. This subsidy mechanism gives former
The programme handed over R700 million for beneficiaries of serviced stands, financed by
the Marikana Housing Project, which is expected the previous housing dispensation (including
to yield 2 600 units upon completion. the Independent Development Trust’s site and
By July 2016, 544 housing units had been service schemes), the opportunity to acquire
completed. These included 252 units that were houses.
part of a community residential programme and
another 292 houses which fall under the BNG Institutional subsidies
project. Institutional subsidies are available to qualifying
An estimated 70 000 finance-linked subsidies housing institutions.
are expected to be disbursed to qualifying The subsidy is paid to approved institutions
beneficiaries by 2019 through funding provided to provide subsidised housing on deed of sale,
in the human settlements development grant. rental or rent-to-buy options.
FLISP’s allocations made to provinces by the This is done on condition that the beneficiaries
Human Settlements Development Grant (HSDG) may not be compelled to pay the full purchase
was R71,6 million. The actual spending at the price and take transfer within the first four years
end of the financial year had been R35,5 million, of receiving the subsidy. Institutions must also
with four provinces reporting no expenditure at invest capital from their own resources in the
all. project.
Housing subsidies Subsidies for people with disabilities
A housing subsidy is a grant by government to People with disabilities who qualify for a housing
qualifying beneficiaries to be used for housing subsidy receive additional amounts to improve
purposes. The subsidy is either paid to a seller their houses with special additions such as
of a house or, in new developments, it is used paving and ramps to their doors, grab-rails in
South Africa Yearbook 2015/16 263Human Settlements
bathrooms, and visible door bells for the deaf.
Municipal Human Settlements Capacity
Enhanced Extended Discount Benefit Grant (MHSCG)
Scheme The purpose of the MHSCG is to provide
The Enhanced Extended Discount Benefit capacity to municipalities. It was a collabora-
Scheme promotes home ownership among tion between the DHS, National Treasury, and
tenants of state-financed rental stock, including the Department of Cooperative Governance
formal housing and serviced sites. and Traditional Affairs. It is aimed at providing
The scheme is only available to beneficiaries assistance to municipalities due to an outcry for
who took occupation of such rented houses capacity and technical support.
before 15 March 1991. The total budget allocation from the MHSCG to
eight metropolitan municipalities for the 2015/16
Rural subsidies financial year was R100 million and was divided
These housing subsidies are available to as follows:
beneficiaries who enjoy only functional tenure • Buffalo City: R9,253 million
rights to the land they occupy. This land belongs • Nelson Mandela: R9,847 million
to the State and is governed by traditional • Mangaung: R9,2016 million
authorities. • Ekurhuleni: R14,313 million
These subsidies are only available on a • Johannesburg: R16,505 million
project basis and beneficiaries are supported by • Tshwane: R12,831 million
implementing agents. Beneficiaries also have • eThekwini: R14.342 million
the right to decide how to use their subsidies, • Cape Town: R13,703 million.
either for service provision, for the building of
houses, or for a combination of these. National Housing Finance Corporation
The NHFC is one of several development
Farm resident subsidies finance institutions created by the government
The housing-subsidy programme for farm to improve the socio-economic challenges of the
residents addresses the wide variety of housing country.
needs of people working and residing on farms The corporation is mandated to broaden and
by providing a flexible package of housing deepen access to affordable housing finance for
models to suit the local context. low to middle income households by facilitating
In most instances, the programme is applied private sector lending for housing purposes.
where farm residents are required to reside The developmental financial focus of the
close to their employment obligations and where NHFC is specifically about finding workable
the farm land is distant from the nearest town, models on affordable housing finance for the
rendering the settlement of the farm residents in low- and middle-income target market.
town impracticable. The NHFC was established in 1996, by the
Farm residents play an important role in all then National Department of Housing, to offer
aspects of their housing solutions regarding housing finance, project facilitation and technical
the selection of options, the design and assistance to private and public entities ensuring
implementation phase, as well as the ongoing availability of housing stock for the target market.
management of the housing stock. As a means of sustaining its funding pro-
grammes, the NHFC searches for better ways
Human Settlements Development Grant to mobilise finance for affordable housing from
The allocation for the HSDG for the previous year sources outside the state in partnership with the
had been R17 billion. There had been a rollover broadest range of organisations.
of R289 million from the previous financial year, The NHFC, in the affordable housing finance
which had culminated in a total of R17,3 billion market sector, adopts a role of financier, facili-
as the available amount. tator and innovator; to ensure viable housing
The allocations had been transferred to finance solutions and growth of sustainable
provinces, which had spent R16,9 billion. With human settlements.
regard to the delivery performance of provinces, The corporation’s total budget for 2015/16 was
there had been a target of 45 652 sites, while the R221,7 million.
top structure target had been 105 796, and the
overall target had been 151 448 structures. The
provinces had delivered 143 911 overall.
South Africa Yearbook 2015/16 264Human Settlements
Rural Housing Loan Fund (RHLF) to build or organise the building of their homes.
The RHLF is a wholesale lending institution. The EPHP is a useful tool for community
Its main business is to raise money and lend it involvement.
to retail credit intermediaries to provide repeat In June 2016, government set itself a target
access to housing credit to low income rural to deliver six million houses and housing
households. opportunities by 2019.
Structured loans are made to match the
intermediary’s underlying product profile, and Housing institutions
are disbursed according to the following three The department’s support institutions play an
criteria: important role in enhancing the norms and
• draw-downs should be structured so that standards of housing, and making housing more
the RHLF’s exposure is limited (a higher risk accessible to all South Africans.
profile should be accompanied by a slower The institutions also facilitate the specific
draw-down pattern to allow the RHLF to housing and housing-related needs of the
monitor the performance of the intermediary) market, in addition to the role that provincial
• draw-downs should be matched with the inter- governments and municipalities play. These
mediary’s disbursement of qualifying loans institutions are accountable to the Executive
and should not allow the intermediary to build Authority of the DHS.
up extensive surplus funding The institutions are the National Home-Builders
• the size of the facility and the draw-down Registration Council (NHBRC), NHFC,
schedule should be in line with the historical NURCHA, the Social Housing Foundation,
growth pattern of the intermediary and its RHLF, the Housing Development Agency
capacity to manage growth, to avoid potential (HDA), Servcon Housing Solutions, SHRA and
destabilising effects. Thubelisha Homes.
• the repayment period should match that of the
end user. Stakeholder management
A Pilot Loan is a venture-capital investment Increased operations through new partnerships
instrument designed by the RHLF to support would address the challenges of rapid
retail lenders to explore new markets (such as urbanisation. The DHS has been at the forefront
informal earners or low-income households in of addressing this challenge in South Africa.
un-served rural areas) and/or new products The Chief Directorate: Stakeholder
(such as alternative loan products with appropri- Management’s primary objective is to mobilise
ate collection methodologies). sector stakeholders to partner with government
The fund was allocated R37,1 million. to fast-track housing delivery.
The unit facilitates stakeholder engagement
Role players through various dialogue forums, which has
Enhanced People’s Housing Process led to collaboration in the implementation of
(EPHP) the Social Contract for Rapid Housing Delivery
The EPHP is a government housing-delivery and Rural Housing Contract, Stakeholder
mechanism that supports households who wish Engagement, Youth Build, Women’s Build and
to enhance their subsidies by building their the Govan Mbeki Housing Awards.
own homes or organising between themselves,
the building of their homes. The process Women in housing
allows beneficiaries to establish a housing- The DHS is working on a range of measures
support organisation that will provide them with which are geared to support women in human
organisational, technical and administrative settlements and emerging contractors in the
assistance. housing sector.
The assistance includes training and guiding These measures will look at addressing issues
the beneficiaries in building their own homes. such as access to bridging finance, credit, lack
The subsidy is available to beneficiaries enjoying of skills and lack of supportive institutional
functional tenure rights to the land they occupy. arrangements within human settlements value
The land is normally in rural areas and belongs chain.
to the State and is allocated by the State and The NHBRC Women Empowerment
the authorities. Unlike the project-linked subsidy, Programme, which was formed in partnership
where a contractor builds houses for a number of with the Gordon Institute of Business Science,
people, the EPHP allows people or beneficiaries comprises a developed and customised
South Africa Yearbook 2015/16 265Human Settlements
programme for women entrepreneurs in the complete the houses, they go into training with
construction industry. the NHBRC for six weeks. The NYDA then
As part of the initiative, a hundred women who prepares volunteers to look for jobs or start
own construction-related businesses are taken their own businesses based on the skills they’
through a 10-month programme that includes would have acquired through Youth Build.
business skills training, mentorship, coaching, The difference in the two approaches is that on
access to finance and new markets, as well as the first one, the NYDA can fund the project up
peer-learning opportunities. to 100% and the second one is mostly funded
Training and modules are customised based by the DHS.
on the particular challenges and requirements of The volunteers are empowered with
the industry. They also include practical support house-construction skills such as bricklaying,
that facilitates application of the lessons learned plastering and plumbing.
throughout the programme. In June 2016, 40 volunteers built 200 BNG
houses in Khunwana Village, North West, as
National Home-Builders Registration part of the 1976 Youth Build SA Programme
Council which was allocated R200 million.
The mandate of the NHBRC is to protect the More than 1 400 young South Africans
interests of housing consumers by providing are enrolled in 13 Youth Build programmes.
warranty protection against defined defects in Apart from the DHS, other key partners
new homes, and to regulate the home-building include municipal governments,Technical and
industry in terms of the Housing Consumers Vocational Education and Training centres, the
Protection Measures Act of 1998. The council Sector Education and Training Authority; and
provides training and capacity building to private sector companies.
promote and ensure compliance with technical After seven years of experience in managing
standards in the home building environment. Youth Build programmes, the NYDA is working
The council’s strategic goals will be to improve on opening a Youth Build school to strengthen
stakeholder interaction and market accessibility education outcomes, improve private sector
for housing consumers, to enhance the entities links, and provide professional development to
position to: Youth Build teams around the country.
• provide quality services to housing consumers The agency’s strategic re-orientation prioritised
and home builders the expansion of Youth Build to 50 communities
• make better use of technological building with the goal of engaging 5 000 to 7 000 young
solutions people each year.
• provide training and building capacity in the
home building sector. National Human Settlements Youth
Accord
Youth Build The youth accord was the outcome of the
The Youth Build SA Programme is a community National Human Settlements Youth Summit held
based national youth service initiative in Johannesburg, in December 2014, to discuss
that integrates academic achievement, government housing programmes aimed at
work experience, social action, leadership empowering young people while mobilising them
development, and personal transformation in a to support government and the department’s pri-
single project for volunteers. orities in the next five years.
The National Youth Development Agency Key to the DHS priorities is the delivery of 1,5
(NYDA) implements the following two types of million housing opportunities by 2019 with spe-
Youth Build projects in support of this programme: cial focus on the elderly, child-headed house-
• The comprehensive model where 100 youth, holds and military veterans.
all of them volunteers, spend between eight The programme aims to see youth getting train-
and 12 months in class and on site learning ing in different construction fields and the running
the construction trade using the Youth Build of small businesses while gaining experience at
model which is adopted from Youth Build catalytic projects across the country.
International. In August 2015, about 200 National Human
• A model is done in partnership with the DHS Settlements Youth Accord brigades arrived in
where volunteers are recruited within identified Thaba ‘Nchu, Free State, from the Eastern Cape
communities, orientated by NYDA and then for character-building training.
sent straight to site to build houses. When they The training programme partly focuses on
South Africa Yearbook 2015/16 266Human Settlements
principles of nation-building, voluntarism and The approved loans would enable the con-
patriotism. struction and completion of 7 328 housing units
The long-term aim is to create a crop of builders and serviced stands between 2015 and 2016.
and construction workers who are well supported The agency’s total budget for 2015/16 was
and sustained through coaching and mentorship. R112,6 million.
National Urban Reconstruction and Social Housing Regulatory Authority
Housing Agency The SHRA is mandated to regulate the social
NURCHA provides bridging finance to contrac- housing sector, and to ensure a sustainable and
tors building low to moderate income housing, regulated flow of investment into the social hous-
infrastructure and community facilities, and ing sector.
provides account administration and support This is in order to support the restructuring of
services. urban spaces through capital grant provision to
The corporation works in partnership with all accredited social housing institutions.
role-players in these markets to maximise the The authority’s total budget for 2015/16 was
development of sustainable human settlements. R1 billion.
NURCHA was established as a Presidential
Lead Project in 1995, in partnership with the Housing Development Agency
Open Society Institute. The HDA is mandated to identify, acquire, hold,
The institution’s strategic focus is to provide develop and release state and privately-owned
bridging finance to contractors building low to land for residential and community purposes and
moderate income housing, infrastructure and to create sustainable human settlements.
community facilities, and provides account The agency provides project-management
administration and support services. expertise in human-settlement projects and
Finance is provided directly to established facilitates the development of projects through
contractors while a separate, specialised inter- accelerated and innovative project packaging.
mediary channel is used to provide finance to The agency’s total budget for 2015/16 was
emerging contractors, resulting in the normalisa- R278,9 million.
tion of risks associated with this market segment
by the traditional financial institutions. The Community Schemes Ombud
In this regard, intermediaries assist the emerg- Service
ing contractors with a range of construction sup- The Community Schemes Ombud Service
port services. is mandated to provide a dispute resolution
NURCHA seeks to: service for community schemes; to regulate,
• maximise options to finance the construction monitor and control the quality of all sectional
of housing facilities and infrastructure title schemes’ governance documentation; and
• extend the housing market to take custody of, preserve and provide public
• promote synergy and cooperation between access to scheme governance documentation.
public and private sectors The ombud’s 2015/16 budget was R41 million.
• use NURCHA loans to contribute to the emer-
gence of a new generation of successful, The National Human Settlements Land
black-owned construction companies. Inventory (NaHSLI)
Between 2014 and 2015, NURCHA had The NaHSLI and the Land and Property Spatial
approved 14 bridging finance loans amounting Information System are fully developed and
to R78 million to women contractors. operational.
NaHSLI is a comprehensive, multidimensional
i
The Vulindlela Rural Enhanced People’s Housing Process catalogue of habitable land. NaHSLI presents a
in Taylors Halt, just outside Pietermaritzburg, started a national tool based on the geospatial analysis
programme to build 25 000 human settlements to the
of the natural, regulatory, structural and social
value of R2.1 billion. The project is based on community
contribution, partnerships and leveraging of additional
environment context within which a habitable
resources. About 2 000 full-time employment opportunities land profile for South Africa is being developed.
were created and 13 community owned cooperatives It facilitates the identification of suitable,
established through the project. The cooperatives own a available, accessible land that can be used to
quarry on-site, transport operations, concrete block-making earn a livelihood, thereby demarcating non-
facilities, door-making and other construction-related firms. habitable land and risk-prone areas and inform-
The block-making facility produces 6 000 blocks a day. ing potential users where human settlements
South Africa Yearbook 2015/16 267Human Settlements
could be located best. Strategic Integrated Project 7 (SIP7)
NaHSLI also provides insight into the devel- The SIP7 is part of the 17 SIPs contained in the
opment potential of habitable land and lends Presidential Infrastructure Plan.
itself to the functions of choice, governance and They incorporate a range of economic and
sustainability. social infrastructure projects and cover all nine
In total, seven implementation protocols have provinces with the emphasis on poorer regions.
been signed and further agreements are under Investment in rail, water pipelines, energy
negotiation with a number of municipalities and generation and transmission infrastructure have
provinces. been identified for Limpopo.
SIP7 focuses on 12 of the country’s major cities
The Estate Agency Affairs Board (EAAB) in Gauteng, the Eastern Cape, KwaZulu-Natal, the
The EAAB regulates, maintains and promotes Free State, North West and the Western Cape.
the standard of conduct of estate agents and The cities include major metropolitan
issues Estate Agents Fidelity Fund certificates. municipalities such as Johannesburg, Ekurhuleni
It is also mandated to prescribe the standard of and Tshwane in Gauteng, Buffalo City and
training of estate agents, investigate complaints Nelson Mandela Metro in the Eastern Cape,
lodged against estate agents as well as to man- eThekwini in KwaZulu-Natal, Cape Town in the
age and control the Estate Agents Fidelity Fund. Western Cape and Mangaung in the Free State.
The board’s budget was R123,3 million. The cities were chosen because of their
demographic and economic significance. They
Resources will be given implementation powers, with the
One of the major constraints in housing delivery PICC expected to exercise an oversight role.
is the lack of capacity in terms of an efficient In Gauteng, some of the projects that are in
workforce and the installation of appropriate operation include the implementation of the Bus
technology, equipment and systems for Rapid Transit (BRT) System in the province’s
monitoring, evaluation and reporting purposes. three metropolitan cities. Tshwane is expected to
The DHS continues to assist provinces in spend more than R1,6 billion on its BRT System.
ensuring effective and efficient implementation Johannesburg finalised plans for a major
of the National Housing Programme. rehabilitation of Diepsloot and Ivory Park
The strategy and guidelines for capacity townships, including the construction of clinics,
building, and guidelines for provincial housing- schools and community libraries.
capacity business plans, have been developed. About R45 million has been set aside to
The DHS undertook several initiatives to turn Ekurhuleni into an aerotropolis – a new
support small enterprises within housing and to urban form where cities grow around airports,
promote BEE and gender mainstreaming. connecting workers, suppliers, executives and
Based on extensive consultation with goods to the global marketplace.
stake-holders in the construction and housing An amount of R2 billion has been earmarked
industry, the department developed a framework for a new rail link connecting Cape Town
for emerging contractor support that resulted in International Airport and the city centre while in
a support programme that focuses on training other provinces such as the Eastern Cape and
emerging contractors. KwaZulu-Natal, the focus will be on expanding
ports and rail services.
Programmes and projects
Sustainable human settlements Bucket Eradication Programme
Sustainable human settlements and improved The objective of the Bucket Eradication
quality of household life are defined by: Programme is to eradicate all bucket toilets across
• access to adequate accommodation that the country. The budget for the programme was
is suitable, relevant, appropriately located, R975 million for the 2015/16 financial year.
affordable and fiscally sustainable At the end of February 2016, the bucket
• access to basic services such as water, system was eradicated in Britstown, Springbok
sanitation, refuse removal and electricity and Petrusville in the Northern Cape. It was
• security of tenure irrespective of ownership or also eradicated in Kanana in North West and
rental, formal or informal structures Fauriesmith in the Free State.
• access to social services and economic By then, 2 261 structures had been completed
opportunities within reasonable distance. in the Eastern Cape, 124 in North West, 6 377 in
Northern Cape and 6 974 in Free State.
South Africa Yearbook 2015/16 268Human Settlements
The cost of these units was in line with the The department developed and launched
industry guidelines on infrastructure service a number of instruments to guide the
delivery unit costs of approximately R9 000 for a implementation of the comprehensive plan in all
single pit, R12 000 for a double pit and R15 000 three spheres of government.
for water-borne sanitation. These include the monitoring, evaluation and
Expenses related largely to reticulation, impact-assessment policy and implementation
material, civil works, geotechnical expenses and guidelines, and the operating system for the
project management fees. policy and guidelines.
The department also initiated a project-
Comprehensive Housing Plan (CHP) monitoring process to measure the performance
The CHP for the Development of Integrated of provincial housing departments against targets
Sustainable Human Settlements (Breaking set in their business plans, to identify constraints
New Ground) is aimed at eradicating informal and assist with addressing them swiftly.
settlements in South Africa in the shortest
possible time. Rental housing for the poor
It incorporates principles such as: The National Rental Housing Strategy, which
• integrating subsidised, rental and bonded was approved in 2008, provides for people in
housing the low-income bracket and living under the
• providing municipal engineering services at following conditions:
a higher level, applying them consistently • provisions made by previous departments
throughout townships • public-sector hostels for housing migratory
• providing ancillary facilities such as schools, labour in the previous dispensation
clinics and commercial opportunities • municipal rental stock that has not been
• combining different housing densities and transferred to the households who inhabit
types, ranging from single-stand to double- the units, and which will continue to be used
storey units and row houses. as rental accommodation because of the low
The CHP is being implemented through informal economic status of the households
settlement-upgrading pilot projects in each • new high-rise housing stock to be built for the
province. specific purpose of accommodating low-income
These projects provide for phased, area-based households in rental accommodation.
development, and emphasise community Many job seekers in urban areas require rental
participation and social and economic accommodation. There has been an increased
development as an integral part of housing public hostels owned by provincial housing
projects. The goal of upgrading all informal departments and municipalities
settlements by 2014/15 is aligned to the UN • “grey” hostels that have both private and
MDGs to improve the lives of 100 million slum public ownership
dwellers worldwide. • public housing stock that cannot be
The CHP focuses on: transferred and has to be managed as rental
• accelerating housing delivery as a key strategy accommodation
for poverty alleviation • post-1994 newly developed public residential
• using housing provision as a major job-creation accommodation owned by provincial housing
strategy departments and municipalities
• ensuring that property can be accessed • dilapidated, derelict and dysfunctional build-
by all as an asset for wealth creation and ings.
empowerment Units provide secure and stable rental tenure
• leveraging growth in the economy, combating for lower-income earners. Potential tenants are
crime and promoting social cohesion selected according to specific criteria such as,
• using housing development to break down they must be a South African citizen, not an
barriers between the first-economy residential owner of any property in the municipality, earn
property boom and the second-economy between R1 600 and R3 500 per month (gross
slump income), not owe the municipality any services
• using housing as an instrument for the money, pass an affordability check, and they
development of sustainable human must be a major to be able to sign the legal
settlements in support of spatial restructuring documents.
• diversifying housing products by emphasising
rental stock.
South Africa Yearbook 2015/16 269Human Settlements
Emergency housing low-income market (R1 500 — R7 500).
The main objective of this programme is to The primary objective of urban restructuring is
provide temporary housing relief to people in creating sustainable human settlements. Social
urban and rural areas who find themselves in housing is not just about building houses; it is
emergency situations, such as when: also about transforming residential areas and
• their existing shelters have been destroyed or building communities.
damaged An additional 27 000 households are expected
• their prevailing situation poses an immediate to be living in affordable social rental units by
threat to their lives, health and safety 2019. Over the medium term, 16 204 such units
• they have been evicted or face the threat of were expected to be built, funded through the
eviction. restructuring capital grant of the SHRA and the
Assistance involves prioritising funds from the provincial institutional subsidy.
provincial housing allocations to municipalities to
accelerate land development, and the provision International relations
of basic municipal engineering services and The South African Government is party to the
temporary shelter. UN MDGs, which provide for the significant
improvement in the lives of at least 100 million
Government Employees Housing slum dwellers by 2020.
Scheme (GEHS) In addition to these conventions, South Africa
In May 2016, an initiative to help low-earning adheres to the following declarations under
public servants to purchase homes was the UN Habitat programme: the Vancouver
launched. The GEHS is meant to service 1,3 Declaration on Human Settlements of 1976, the
million public servants who earn too little to Istanbul Declaration on Cities and other Human
qualify for a bond. Settlements of 1996 and the Habitat Agenda of
Civil servants already qualified for a R1 200 1996, the focus of which is to address the plight
housing subsidy if they owned their property but of persons without adequate housing.
this did not help employees who earned too little
to qualify for a home loan. Community Scheme Ombud
In terms of a Public Service Coordinating Service (CSOS)
Bargaining Council resolution, the programme The CSOS provides an alternative, impartial
included advice to employees on home and transparent service for the resolution of
ownership options and how to go about renting unresolved disputes in community schemes.
to buy. Established in terms of the Community Scheme
The GEHS would help employees with their Ombud Service Act, 2011 (Act 9 of 2011) the
finance applications, facilitate access to housing CSOS regulates the conduct of parties within
subsidies, and help negotiate favourable lending community schemes and ensures their good
terms with financial institutions. governance.
The CSOS is classified as a Schedule 3A
Integrated Residential Development public entity in terms of the Public Finance
Programme (IRDP) Management Act and its executive authority is
The IRDP provides for the acquisition of land, vested in the Minister of Human Settlements.
servicing of stands for a variety of land uses, In terms of Section 38 of the CSOS Act, any
including commercial and recreational purposes, person in a community scheme may apply to
schools and clinics, as well as residential stands the CSOS, if such a person is a party to or is
for low-, middle- and high-income groups. The materially affected by a dispute, for mediation
land use and income-group mix is based on local and adjudication.
planning and needs assessment.
Social Housing Regulatory Authority
Social housing is a rental or cooperative
housing option, which requires institutionalised
management. Social housing is provided
by accredited SHIs or in accredited social
housing projects in designated restructuring
zones. Social housing provides good quality
rental accommodation for the upper end of the
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