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Progress In Developing Integrated And Sustainable Human Settlements National Council Of Provinces By Minister M.T.

Kubayi (MP) 8th March 2022 Presentation Outline 1.

The Rationale For Integrated Human Settlements 2.

Strategic Focus For Human Settlements 3.

Policy and Legislative Mandate 4.

5.

Interventions to address policy implementation challenges Interventions in Entities to address policy implementation challenges 6.

Human Settlements Priorities - Medium Term Strategic Framework 2019-2024 7.
Macro Planning Framework 8.

Progress On MTSF Targets 9.

Macro Funding Framework 10.

Monitoring and Oversight 11.

Recommendations 3/8/2022 2 1.

Rationale For Integrated Human Settlements 1.


To address the entrenched spatial patterns across all geographic scales that exacerbate social inequality and economic inefficiency resulting to increased poverty and inequality by: a) Creating opportunities for liveable, inclusive and resilient towns and cities; b) Improving participation of the disadvantaged in the residential property market; and c) Increasing the asset creation potential of the state’s investments in human settlements 3/8/2022 3 2.1.
Current Policy and Legislative Priorities 1.

Series of new policy instruments, legislative frameworks and strategies have been introduced since the promulgation of the Housing Act in 1997; 2.

Current Act not aligned to these changes for effective programme and policy implementation 3.

The sector has changed significantly with a diversified National Housing Code and the Housing Act remains unchanged.

4.
4.

The macro-planning environment also demonstrates significant changes as the state relooked the manner in which it developed targets and assigned responsibilities; 5.

The Housing Act remains misaligned to housing programmes, policies and legislation frameworks presents implementation shortcomings and misconceptions of the meaning of human settlements.

3/8/2022 4 2.2.

Short To Medium Term Policy Review and Consolidation Action Plan 1.

Consolidation into draft policy is currently underway; 2.
Consolidated draft policy will be subjected to SEIAS, Executive Authority, & MinMec, 3.

Policy Foundation for Human Settlements Act is approved by Cabinet 4.

Projected that a draft Human Settlements Development Bill is completed for consultation during the current financial year; 5.

Subject a draft bill to required approval processes – Executive Authority, Intergovernmental, MinMec, Clusters and Cabinet and Public Comments 6.

Introduction of bill to Parliamentary at beginning of 2023 3/8/2022 5 3.
Actions Undertaken To Address Spatial Inefficiencies • For the realisation of integrated and sustainable human settlements, 136 Priority Human Settlements and Housing Development Areas were declared in 2019 with the objective to direct development and investments to areas closer to economic opportunities.

• The review of the funding model also commenced and resulted to the introduction of a funding instrument dedicated for the upgrading of informal settlements.
3/8/2022 6 Interventions to address policy implementation challenges • Work is underway to consolidate our grants to be more flexible and reduce housing delivery times • The structure of the HSDG has been reconfigured to allow for delivery of Bulk infrastructure for up to 30% of the grant especially in rural provinces – this is conditional • In financial year 2022/23 we will start implementing front-loading in two provinces, NC and EC, which will allow us to significantly increase the scale of housing delivery in a short space of time through Infrastructure Grant and development • We have partnered with the Infrastructure Fund to accelerate the delivery of large social housing projects • The Department will intervene directly in municipalities for capacity building around Human Settlements delivery 3/8/2022 7 Interventions to address policy implementation challenges • The FLISP programme has been expanded to include the rural areas permission to occupy (PTO) Government Employee Housing Scheme, housing loans supported by the Employer-Assisted Housing Scheme and Cooperatives or Community-based Schemes such as Stokvels • Residential Rent Relief Policy, was put together to assist those affected by the COVID-19 pandemic to meet their rental obligation and this relief fund will now prioritize military veterans and the elderly • The intervention in disaster has been reconfigured to include new expedite repairs through a voucher system and also allow the provinces and metros to utilize available funds from HSDG and ISUP to intervene in dealing with the damage 3/8/2022 8 Interventions in Entities to address policy implementation challenges • HDA – With the New Board in place, the appointment of the executives is underway which will soon bring stability to the entity – We are restructuring the HDA to be a developer of choice in the human settlements sector • SHRA – The new board is in the process of appointing executives – Restructuring also underway to enable SHRA to lead the development of Social Housing – SHRA to lead the delivery of PPP models in Social Housing (crowding-in private sector) • NHFC – Appointment of board on its final stages – Work underway to convert the NHFC into Human Settlements Bank – The bank will be positioned to crowd-in funding for Human Settlement projects 3/8/2022 9 Interventions in Entities to address policy implementation • NHBRC – Capacity drainage led to the entity remaining with one permanent executive – The new council has began the process of appointing executives to help stabilise the organization • CSOS – A new board has brought stability to the Entity – The entity will assist us to consolidate the regulatory aspect of the human settlements delivery system • PPRA – The new Act came into effect on 01 February 2022 and with it a new board – The Entity is now empowered through the Act to implement transformation initiatives in sector that remains largely untransformed 3/8/2022 10 4.
Human Settlements MTSF Priorities For 2019 – 2024 Outcome 2024 Targets Intervention Spatial transformation through multi- programme integration in priority development areas Adequate housing and improved quality living environments.
Invest in 94 priority development areas (PDA’s) Rezone 100% of land acquired in 2014 - 2019 that falls within the PDAs for human settlement development Deliver housing units through subsidy mechanism 94 PHSHDA’s invested in and integrated programmes completed 100% of acquired land during 2014-2019 falling within the PDAs rezoned 450 000 housing units through subsidy mechanism delivered Approve applications and purchase units for the Finance Linked Individual Subsidy Programme (FLISP) Deliver serviced sites.
20 000 households that received financial assistance and purchased units through FLISP 300 000 serviced sites delivered Deliver social housing/ rental housing units in PDAs 18 000 rental housing units delivered in PDAs Deliver community residential units (CRU in PDAs 5 000 community residential units (CRU in PDAs Upgrade informal settlements to Phase 3 Security of Tenure Eradicate backlog and issuing of new title deeds 1 500 informal settlements upgraded to Phase 3 of the Informal Settlements Upgrading Programme Pre- 1994: 45 535 2019-2024): 300 000 Post-1994: 500 845 Post- 2014: 346 842 11 4.1.
Principles Underpinning The Achievement Of Integrated Human Settlements 1) Digitization of the beneficiary list to ensure transparency and credibility 2) Coordinated investments with other sector departments, municipalities and state entities to the identified Priority Human Settlements and Housing Development Areas – in line with the District Development Model.
3) Coordinated development of infrastructure and ensuring sequencing of budgets and implementation plans with other sector departments and other stakeholders.

4) Implementing a multi-sector response on public –private partnerships to improve social, economic integration.

3/8/2022 12 5.
3/8/2022 12 5.

Macro Planning Framework For Human Settlements 1) The planning framework for human settlements considers intergovernmental coordination as the cardinal principle underpinning the success of human settlements, also taking into consideration the concurrency of the function.
2) As such, the declaration of Priority Human Settlements and Housing Development Areas served as a reform for the government planning system-thus influencing Local government planning processes through the growth plans-SDF’s and Provincial plans.

3) The commitment to invest in the declared PHSHDA’s by all stakeholders, would result into well planned, budgeted settlements with the required infrastructure, social services such as schools, health care facilities as well as social amenities.

3/8/2022 13 5.1.
Priority Human Settlements and Housing Development Areas Implementation Approach Programme Management & Governance Declare and Plan Priority Development Areas Land Assembly in PHDAs Infrastructure development Ecological Infrastructure Economic Development Spatially targeted Public Funding Implementation Institutional Arrangements Legislation (Housing Act, HDA Act, SPLUMA Release of state- owned land Developmen t Plans (Red Book) Acquire privately owned land (equity, expropriation Transport & Mobility Communication & Connectivity Bulk Infrastructure Energy Social Facilities Air quality Management Ecological Governance Climate Change Renewables Local Economy Small Business investment promotion Incentives Transaction Support Services Economic Hubs, Industrial Parks, SEZs HS Grants Built Environment Grants Community Development grants Economic Dev.
Incentives Multiple Projects (IRDP, UISP, SH, PHP, Title Deeds, Basic service Priority Area Dev.

SPV Public sector Project Manager (HDA et al.)

Public sector funds manager (HSDB et al) Private sector developers & Investors Community participation and Stakeholder mobilization Monitoring and evaluation 2022/03/08 14 6.
Progress In Implementing The MTSF Targets 3/8/2022 15 Gazette 43316: Declaration Of PHSHDA’s Province Number Of PHSHDA’s Number Of District Municipalities With PHSHDA’s Number Of Metropolitan Municipalities With PHSHDA’s Number Of Local Municipalities With PHSHDA’s Eastern Cape Free State Gauteng Kwa Zulu Natal Limpopo Mpumlanga North West Northern Cape Western Cape 12 10 26 22 11 16 14 6 19 4 3 2 9 5 3 4 4 4 2 1 3 1 - - - - 1 6 5 4 9 8 10 9 5 11 2022/03/08 16 Land Acquisition - Preparation and Release 1.
Cabinet approved – 14 105 ha(167 portions) held by the DPWI was approved for release for human settlements development through the issuing of Powers of Attorney to the Housing Development Agency 2.
Progress: • Released in 2021/22 = 2491, 043 (next 3 slides) • To be released in 2022/23 = 7168,0267 Province No of Properties Extent EC FS KZN LP MP NC WC Total 3 1 8 1 1 3 16 33 532,7631 258,3351 5160,653 50 21,4133 0,6819 1144,1803 7168,0267 2022/03/08 17 Current Progress on MTSF 2019/24 Targets, Outputs and Outcomes Outcome Indicator 2019 Baseline 2024 Targets Actual Progress (Outputs) % Spatial Transformation Through Multi- Programme Integration In Priority Development Areas (Urban Focus) Adequate Housing And Improved Quality Living Environments Number of PDA’s invested in % of acquired and during 2014-2019 rezoned falling wthin the PDAs New indicator New indicator 94 100% of acquired land rezoned (19 962.2 ha) 102 HSDG 42 ISUPG 2.7% (519.5063) 2.6% Number of BNG Houses delivered Number of households that received financial assistance and purchased units through FLISP Number of Serviced sites delivered 448 022 300 000 146 550 49% 9 762 20 000 11 136 56% 256 923 300 000 118 564 40% 18 Current Progress on MTSF 2019/24 Targets, Outputs and Outcomes Outcome Indicator 2019 Baseline 2024 Targets Actual Progress (Outputs) % Adequate housing and Improved quality living environments No.
of rental housing units delivered in PDA’s No.

of Community Residential Units (CRU) No.
of informal Settlements formalised/ upgraded to Phase 3 of the Informal Settlements Upgrading Programme 18 000 6 689 37% 7 088 5 000 1 190 new 68 upgraded 24% New indicator 1 500 - - 19 Number Of Informal Settlements Upgraded Provincial & Metropolitan Municipal Projects UISP PHASE UISP PHASE PROJECTS PROVINCE PROVINCE Western Cape Eastern Cape Northern Cape KwaZulu Natal Limpopo Mpumalanga Gauteng Free State North West 1 - - 1 - 0 1 37 - - 2 8 3 50 114 - 14 50 11 12 36 15 65 19 - 11 37 0 18 6 58 114 34 50 22 50 73 33 71 City of Cape Town Buffalo City Nelson Mandela Bay eThekwini City of Ekurhuleni City of Johannesburg City of Tshwane Mangaung 1 19 - 7 7 0 0 2 - 2 12 13 2 217 68 14 5 - 3 18 37 12 13 39 31 15 21 PROJECTS 49 50 21 230 107 45 22 21 TOTAL 28 331 186 545 TOTAL 39 325 141 505 In 2021/22 financial year there are 1068 projects in Phases 1 - 3 being funded through ISUPG 2022/03/08 20 Current Progress on MTSF 2019/24 Targets, Outputs and Outcomes Outcome Indicator 2019 Baseline 2024 Targets Eradicate backlog and issuing of title deeds Number of title deeds registered Pre-1994: 45 535 Post-1994: 500 845 Post-2014: 346 842 New title deeds: 101 180 Pre-1994: 45 535 Post-1994: 500 845 Post-2014: 346 842 New title deeds: 300 000 Actual Progress (Outputs) % 8 410 18% 46 028 9% 3 495 1% 12 417 4% 21 7.
Macro Funding Framework Including Status Quo Analysis 3/8/2022 22 7.

Macro Funding Framework For Human Settlements 1) The Human Settlements Housing and Human Settlements funding framework currently in place is determined by the Constitution, Legislation, Policy and Approved Programmes 2) Parliament based on the relevant prescripts appropriates funds to the Human Settlements Department.

This is done based on the Appropriations Act and Division of Revenue Act.
3) The Minister as Executive Authority and Director-General as Accounting Officer have accountability, responsibility and oversight for the following scheduled grants and these include the Human Settlements Development Grant (HSDG), the Urban Settlements Development Grant (USDG), a Provincial and Metropolitan Municipal Informal Settlements Upgrading Partnership Grant (ISUPG), Provincial Emergency Housing Grant (PEHG) and Municipal Emergency Housing Grant (MEHG) 3/8/2022 23 6.
Macro Planning Framework For Human Settlements 4) The Department also receives allocations to support the work of the various entities, and this includes the Consolidated Capital Grant (CCG), which funds the Social Rental Housing Programme and administered by the Social Housing Regulatory Authority.

5) Parliament on a quarterly basis receives reports from the Department and this includes an in-depth analysis of the performance of the various grants.

3/8/2022 24 8.
3/8/2022 24 8.

Promoting Accountability And Oversight Of Provinces and Municipalities 3/8/2022 25 Monitoring and Oversight Framework 1.

Guided by the Constitutional , the Public Finance Management Act, Chapter 5 of the National Treasury Regulations and other legislative frameworks, an Accounting Officer of an institution must establish “procedures for quarterly reporting to the executive authority, to facilitate effective performance monitoring, evaluation and corrective action.” 2.
The directives seeks to ensure that departments account for state resources utilized and report on expenditure outcomes achieved.

3.

Therefore, monitoring the use of resources contributes to good governance and enable state instititutios to take corrective measures in areas where gaps are identified.

3/8/2022 26 Monitoring and Oversight Framework 3.

The Housing Act (Act No.


107 of 1997) places the responsibility on the Minister of Human Settlements, through the three spheres of Government, to monitor and produce meaningful, qualitative and quantitative information on the implementation, progress, outcomes and impact of national human settlements policies, programmes and projects as well as the human settlements sector as a whole inter alia: ii.
Section 3(2)(c) of the Act then states that...for the purposes of subsection (1) the Minister must"... , inter alia, "Monitor the performance of the national government and, in co-operation with every MEC, the performance of provincial and local governments against human settlements delivery goals and budgetary goals" 3/8/2022 27 Monitoring and Oversight Framework iii.
Section 4(i) of the Housing Act states that the Minister may: "evaluate the performance of the human settlements sector against set goals and equitableness and effectiveness requirements."
• Monitoring, Evaluation and Impact Assessment (MEIA) Policy and Implementation Framework for the human settlements sector 2019/24 sets the basis for monitoring and evaluation in the sector; establishes principles to guide the sector to monitor and evaluate national human settlements policies, programmes and projects; and provides monitoring and evaluation human settlements practitioners with the tools to undertake their tasks.
3/8/2022 28 Monitoring and Oversight Framework • Considering the concurrency of the Human Settlements function, a number of accountability fora’s have been established to monitor performance across the sector and these include: a) Quarterly performance reviews conducted with provinces, entities and metros to determine progress made in implementing policy priorities outlines in the MTSF.
b) Projects verification visits conducted to validate progress reported , this includes the review of expenditure reported against the progress on the ground.

c) Strategic dialogues conducted with provinces, metros and entities as a form of intervention to address implementation challenges.

3/8/2022 29 Monitoring and Oversight Framework i.e.
• The department has a system (used to collect and store information gathered), - programme the Housing Subsidy System (HSS) management system that enables the monitoring of compliance related to contracts, projects, claims and beneficiary approvals based on the various housing programmes contained in the National Housing Code 3/8/2022 30 Monitoring and Oversight Framework • The National Department of Human Settlements plays four major roles in the Sector: 1 Development of Policy, Programmes and Implementation Guidelines 4 Evaluate and report on the performance of Policy, Programmes and Projects Support the development of the Plans in line with Policy, Programmes and Implementation Guidelines 3 2 Monitor and report on the Implementation of Programmes and Projects Disbursement of Grant funding 3/8/2022 31 Support the Implementation of the Policy, Programmes and Projects Monitoring and Oversight Framework • In order to keep track with policy and programme relevance, the department conducts evaluations which findings and recommendations are used guide decision making either for programme adjustment or for the review of policies.
3/8/2022 32 Ndza Khensa 3/8/2022 33