Committee Programme 2001, Study Tour Reports

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Meeting report

HOUSING PORTFOLIO COMMITTEE
14 February 2001
COMMITTEE PROGRAMME 2001; STUDY TOUR REPORTS

Chairperson Ms NE Hangana

Documents handed out:
Draft Committee Programme 2001 (Appendix 1)
Gauteng study tour: committee report (Appendix 2)
Eastern Cape study tour: committee report (Appendix 3)

SUMMARY
In discussing their committee reports on study tours to Eastern Cape and Gauteng, the Committee confirmed their support for the relocation of people affected by the flooding of the Jukskei River in Alexandra Township. The Committee discussed the need to make effective follow-ups regarding problems identified during study tours.

The Draft Committee Programme was adopted with a change to the visit to Northern Province. It was agreed that the visit should be after the Easter weekend during recess

The Chairperson noted that the Housing Amendment Bill has already been tabled but would be deliberated on in the NCOP first. She indicated that there are minor amendments that have been effected on the Bill.

MINUTES
Committee Report on Gauteng Study Tour (29 September 2000)
The Report sets out the housing development programmes available in Gauteng. The Chair made a particular reference to the housing problems in Alexandra and reaffirmed the government's position to relocate the people living along the flooding river banks of the Juskei River. She also referred to the problem of illegal occupants in the same township and said that Gauteng province is determined to eliminate the problem once and for all.

Mr D Maluleke (DP) stressed the need for consultation with the affected communities in finding suitable housing alternatives. He noted that without consultation people become hostile rather than being receptive.

Ms P Kasper (ANC) opined that there was no need to elaborate on the issue of consultation. She said the Chairperson of the Porrfolio Committee, who was part of the delegation that visited the Alexandra townshio. shou!d issue a statement that the persons affected had been forewarned about the move. This statement would be aimed at the few people who refused to relocate.

Mr G Schneeman (AN C) pointed out that the affected communities had indeed been consulted and informed of the decision to relocate to established emergency areas. He was aware there were persons who were trying to be mischievous in the whole process by refusing to relocate. The Committee should not work on the basis of what they see in the media about the plight of the people in the affected areas because they had been properly informed. The Committee should rather work on the established facts and should obtain correct information from the Gauteng authorities.

Mr B Dlamini (IFP) noted that, based on his visit the previous week to the affected area in Alexandra, it was only a few people that did not desire to move to an emergency area. Most of these persons owned businesses in the area. They therefore considered the exodus as posing a threat to their business establishments.

The Committee agreed to write to the Gauteng legislature drawing its attention to the findings that had been made by the delegation regarding Alexandra and of the Government's stance in solving the problem.

Mr G Schneeman (ANC) was perturbed at the absence in the Report of one of the areas that the delegation had visited along with the Tsutsumani and the Carr Gardens Rental Housing Projects.

The Chairperson replies that she would inquire further into the matter. She said it must be ensured in future that proper minutes are taken of each visit a delegation undertakes.

Mr B Dlamini (IFP) made a comment regarding the hostels that the Committee considers visiting in due time. He said that there is a lot that has happened since the 1994 elections. He suggested that the Department of Housing should look at the whole issue of hostel redevelopment and its prioritisation thereof

Committee Report on Study Tour to Eastern Cape
The Chairperson noted that the Committee needed to make a follow-up on the Smuts Ngonyamaville Housing Project in Port Elizabeth and asked committee members from that province to do the follow-up. She said that the reason for this was the eagerness of persons she saw building houses in that area.

Mr B Fihla (ANC) noted the existence of an area close to Algoa named Vleekplaas that has similar problems to those that are experienced in Alexandra Township. Whenever there are strong rains, the people have to be relocated.

Mr D Lee (DP) suggested that a copy of the committee report should be sent to the relevant province to inform them about what the delegation had noted.

The Chairperson agreed but said that the provinces also have a duty to inform the Housing Department of whatever problems they experience.

Ms S Maine (ANC) suggested that the Committee Report on the Eastern Cape should be forwarded to the MEC for Housing in that province. She opined that there is not enough pressure being applied with regard to the Smuts Ngonyamaville Housing Project.

The Chair said that she would take the issue up with the MEC for Housing. She added that there would be a another study tour to the Northern Cape.

Ms Maine once again raised the concern that the Committee is not making adequate follow-up on these matters. In addition she believes that a two-day study tour visiting various housing projects is insufficient time for adequate observation. She reiterated that the Committee lacks a follow-up programme regarding any housing problems that have been identified. She suggested that this ought to be improved in the future.

Mr B Fihla (ANC) recommended that the Committee should copy other committees regarding an effective follow-up programme. He referred to the Correctional Services Committee and said that it makes periodic visits to the prisons.

The Chairperson replied that the tours undertaken by the Housing Committee would not be as easy as the ones that are undertaken by committees such as Correctional Services. The vastness of housing could not be compared to correctional services.

It was resolved that the most effective way of making follow-ups on housing programmes in the different provinces would be that the committee members living in the relevant province visit and follow-up these projects. The Chair referred to a visit that had been made by Mr Diamini (I FP) to Alexandra township as an example.

Housing Budget
The Chairperson noted that there was very little to report in respect of the budget. The Draft Committee Programme indicates that the Director General will address the Committee on the budget on 21February 2001.

Committee Programme
The Chair went through the Draft 2001 Committee Programme. She noted with concern the non-inclusion of a legislative programme for the committee.

Mr Maluleke noted the anticipated Northern Province visit on the 10/11 May. He said that the Northern Province is an expansive area that includes the former TBVC States and he doubted a two-day visit would be sufficient to cover the entire area.

Ms Maine suggested that it would be a good idea to visit Northern Province during recess. After discussion, it was agreed the Northern Province visit should be after the Easter weekend during recess.

The meeting was adjourned.

Appendix 1:
Housing Committee Draft Programme for 2001
February
2/02/01 President's address
5/02/01 Study group meeting
7/02/01 PC meeting
12/02/01 Study group
14/02/01 PC meeting
15-16/02/01 Northern Cape visit
19/02/01 Study group meeting
21/02/01 PC meeting - Budget day
26/02/01 Study group
28/02/01 PC meeting - Briefing by Department (Budget)

March
Tabling of Housing budget
05/03/01 Study group meeting
07/03/01 PC meeting
08-09/03/01 Mpumalanga visit
12/03/01 Study group meeting
14/03/01 PC meeting - Possible budget debate
19/03/01 Study group meeting
21/03/01 PC meeting

April Recess

May
Study Group Meeting
09/05/01 PC meeting
10-11/05/01 Northern Province visit
14/05/01 Study Group Meeting
16/05/01 PC meeting-Hearings on budget
21/05/01 Study group
23/05/01 PC meeting

June NHBRC -2 day visit
Servcon - 2 day visit

JuIy Recess - Possible overseas visit

August I Sept Hearings on formulation of MTEF & MTBPS

Oct / Nov Hearings on Governments policy priories by PC

Appendix 2:
Report of the Portfolio Committee on Housing on Gauteng study tour, 29 September 2001
The Portfolio Committee on Housing having undertaken a study tour to Gauteng, reports as follows:

A. Introduction
The Committee has decided to embark on the provincial study tours, as a means to fulfill its monitoring and oversight function. The Committee intended to establish the progress made on the "Housing the Nation" programme and, have exchange of experience with the Legislature and hear the feelings of people on the ground about the programme.

B. Findings
GAUTENG REPORT
Meeting with the members of the Gauteng legislature and officials of the department of Housing

The Chairperson of the Standing on Housing welcomed members of the Portfolio Committee to the Legislature. He indicated that the Legislature has passed the Gauteng Housing Act in 1998. The Act establishes the Provincial Housing Advisory Board.

The Chairperson also submitted an annual report 1999/2000 of the department. The report addresses issues such as economic development strategy, construction of housing on well-located land, the housing backlog and the Gauteng Provincial waiting list. The department has a programme of priorities namely:
1. Greenfields Housing schemes
2. Mass housing projects
3. In-fill housing scheme
4. Employer-backed housing scheme
5. Informal settlement upgrading scheme
6. Institutional housing (rental and high density)
7. Enforcement of housing norms and standards.

Briefing on the projects and site visit
1.Tsutsumani (All African Games Athletics Village)
Background
In September 1999, South Africa was awarded the 7th All Africa Games scheduled to take place in Johannesburg. A site in Alexandra Far East Bank was identified as suitable for constructing the village for athletes. A total number of 1799 housing units were constructed to accommodate athletes and their supporting staff. Tshepo Development Corporation was an appointed constructor to build the village.

The Gauteng Department of Housing assisted by providing subsidies to construct a housing stock to accommodate athletes during the games. On completion of the games these units were to be transferred in terms of institutional subsidy arrangements to qualifying beneficiaries. The Department also provided the service of project manager during the construction process. The institutional housing subsidy based on 1799 units is R31.28 million. The estimated total development cost R90 million and the balances was obtained through external arrangements.

Current status
SEMAG Housing Corporation was established by the developer as the housing institution to manage the housing stock. SEMAG experienced isolated cases of illegal occupation as early as May 2000. In July 2000, a large scale of invasion took place in an unoccupied in Alexandra FEB Phase 2 of Tsutsumani. An application for an urgent court order to evict illegal occupants was granted. In Tsutsumani village there were 250 illegal occupants. During the invasions, incidents of vandalism and theft occurred. The categories that are receiving urgent attention are those that occupation has as yet not occurred. The reasons for units not being occupied are mainly due to the following;
1.Subsidies have not been approved
2.The beneficiary has not yet paid the required deposits
3.Beneficiaries cannot be traced, are deceased, etc
4.Beneficiaries complying with all requirements are not willing to occupy allocated units due to intimidation
5.The invaders physically remove beneficiaries who do occupy their allocated units.

Currently beneficiaries on the waiting are matched against the type selected and their affordability. The department is expecting to allocate the remaining vacant housing units by the end of September 2000.

2.Carr Gardens Rental Housing Project
The Carr Gardens Rental Housing Project was hatched in May 1998 when Cope Housing Association was selected as the preferred housing association b the developers (Ginker), and elected to offer the Johannesburg Housing Company a portion of the land which Provincial Government had made available for affordable housing development.

Subsidies were approved for the project in September 1999. The government contribution was 27% of the development cost, the balance of which comes from the funds raised by the company through Flemish Government.

Carr Gardens project provides access to good quality housing through the conventional rental-housing model. Beneficiaries sign a lease agreement that regulates their rights and obligations. The Johannesburg Company that tenants enters into agreement with, is defined as "social landlord" because the company provides accommodation to low-income group with state subsidies. The company re-invests the profits in the development of further rental housing.

The Carr Gardens project has provided an excellent example of what can be done to integrate new affordable housing into existing urban fabric in an interesting and enriching way. The site of the project had existing structures already that were architectural and of historically significance. This includes an old charge office and cellblock, which are protected in law by the Monuments Council. In consultation with Monuments Council, the developer, the Housing Association and the Provincial Government, the old and the new structures on the site have been integrated in a way that provides residents with a friendly and habitable living environment.

Summary of the Carr Gardens Project
Housing Association: Johannesburg Housing Company
No. of units: 126 (Phase 1)
Stand size: 6592 M2
Density: 19.1 units per 1000 M2
Design format: 3 Storey walk-ups
Unit types: Single rooms (13)
1 Bedroom (15)
2 Bedroom (111)
Tenure model: Rental
Development cost: R8.6 Million
State grant portion: R2 318 400
Average unit cost: R68 714
Rentals: Single (R350)
Beds (R820)
2Beds (950)
Target market: R2 000 to R3 500.

Conclusion
The Chairperson of the Portfolio Committee thanked the members of the Standing Committee of the Gauteng Legislature and the officials. There are areas like the hostels that should be included in the program in the next visit.

The committee was impressed by the projects and would like to congratulate the Housing Department for their efforts to implement the Government policy of housing the nation.

Appendix 3:
Report of the Portfolio Committee on Housing on Visit to Eastern Cape Province, dated 18-19 January 2001:

A.Introduction
The Portfolio Committee on Housing having sent a delegation to Eastern Cape from 18 to 19 January 2001, reports as follows:

A Multi-Party delegation of the Portfolio Committee on Housing undertook a provincial study tour on the eastern Cape on January 18 to 19 2001. The delegation consisted of seven members and two officials from the Committee Section.

1.Objectives

(1)Provincial budgets - housing

The imminent budget allocation by the Minister of Finance prompted the Portfolio Committee on Housing to undertake provincial visits in order to discuss provincial budgets relating to housing by the various provinces.
There has recently been a number of budget cuts in the various provinces, particularly in the Eastern Cape.

The province of the Eastern Cape is one of the poorest and vast provinces in the country. The Portfolio Committee on Housing needed to understand what is happening in the province as far as budget allocations are concern.

The Portfolio Committee on Housing intend to advise the Minister, and, Director-General, of Finance accordingly based on its findings.

(2)Rural development strategy - housing

The province of the Eastern Cape is the poorest of the poor provinces in the country. It is also vast and different. Its main component is rural.

The Portfolio Committee on Housing intend to look at the government rural development strategy in terms of economic growth, which housing forms an integral part of, in the Eastern Cape province - how far and how fast is rural development taking place in the Eastern Cape.

(3)Partnership with local government

One of the major priorities of the present government is the delivery of services. And the local governments still remain the delivery machinery sphere of government.

The Portfolio Committee On Housing deem it necessary to strive to forge partnerships among the three spheres of governments, particularly between provincial and local governments in order to fast-track service delivery.

(4)Legislation

There is a dire need to strategically co-ordinate activities between the national and provincial governments around legislation.

The Portfolio Committee on Housing believes that provinces should impact on the national legislative making process before it reaches the NCOP. The provinces should be able to influence legislation at the level of Portfolio Committee in the National Assembly.

(5)Overseas visits

A revisit on international as well as continental trips by the different role-players on housing to the same hoist country is desirable. On the recent visit to Brazil, the Portfolio Committee on Housing discovered that there were too many delegations from South Africa on housing - different groups form different provinces.

Ultimately these visits begin to antagonize those countries.

(6)Sale of subsidy houses

The selling of state subsidy houses is a cause of major concern for the national government. On one of her last addresses in Parliament, The Portfolio Committee on Housing prompted the national Minister of Housing, the Hon. Mrs. Sankie Mthembi-Mahanyele to touch on the matter during her speech, and, the media subsequently highlighted that. The Director-General of Housing committed herself to find mechanisms to eradicate the practice.

The Portfolio Committee on Housing believes that the migration of people from poor to well-off provinces is one of the causes of the problem. People migrate form one province to another and receive state subsidy houses that are eventually sold within one year. These state funded houses are sold to either drug-dealers or illegal immigrants who operate all sorts of unlawful activities on them. The beneficiary is thereafter either back to the squatter-camp or former province.

The recent conflict between the local citizens and immigrants in the Blaauwberg area of the Western Cape, called Du Noon, is indicative of the above scenario.


2.Delegation

The group was constituted as follows:

Ms NE Hangana (Chairperson and Leader of the delegation), Ms MS Maine, Merrs. WM Skosana and JH Nash, all from the ANC, Mr. DK Maluleke, DP, Mr. BW Dlamini, IFP, Chief NZC Mtirara, UDM, and two officials, Mr. M Nguqu (Committee Secretary) and Ms K Pasiya (Committee Assistant).


B.Start of visit

At 08h45 at the Regent Hotel, East London, the delegation was met by a senior official from the provincial Department of Housing, Local Government and Traditional Affairs, and was led to the Headquarters in Bisho. On arrival at the offices of the MEC responsible for the Department, Mr. GE Nkwinti, an official welcome was received from Ms Linda Mqokoyi, Chief Director: Housing.

She apologized on behalf of both the MEC and the Head of Department, Mr. Solomzi Maye, who each have a prior panel arrangement and an impromptu family commitment respectively. However both indicated to join the proceedings at the later stage.

The provincial standing committee on housing was invited to be part of the meeting, and, also, due to other commitments, could not respond positively (attend).

The Portfolio Committee on Housing exchanged an apology on behalf of its counterpart in the National Council of Provinces, the Select Committee on Public Service, which on legitimate reasons could not be part of the meeting.

The department made two presentations to the group during the discussions.

1.Department of Housing, Local Government & Traditional Affairs - Bisho

(1)Eastern Cape Housing Perspective - Mr. William Perks, Director: Housing Administration

(a)Expenditure patterns post 1995

The financial year comprising 1994/1995 is not reflected because no money was spent during that particular period. At that time, the province was tasked to attend to institutional and logistic arrangements. An attempt was made to start to consolidate and integrate the then three fragmented administration systems; the Cape Provincial Administration CPA, and, the former Ciskei and Transkei homelands. The provincial housing board was at that time actually operating from the Cape Town. The Eastern Cape province didn't even have a housing board. The province was left behind.

From 1995 to 1996 expenditure started to increase gradually. An amount of R64 million was spent in that particular year.

Expenditure increased to R132 million during 1996/7 financial period. It amounted to R268 million in 1997/98, and, R382 million the ensuing year, 1998/99.

During 1999/2000, R328 million was spent.

In the current financial year up to now, R183 million has been already spent.

(b)Medium Term Expenditure Framework


The province of the Eastern Cape operates within a three year MTEF budget cycle. For the current financial year, the province have been allocated an amount of R422 million, and, then two allocations of R490 and R577 millions for the two ensuing years respectively.

As from this financial period provinces are only allowed a five percent (5%) roll over of their annual allocations. If the amount is larger than what is allowed, the province will loose the money. Provinces are not allowed to roll over the amount to the next financial year.

© (c)Budget split

In terms of budget split for this financial year, notice should be taken that an amount of R480 million has already been allocated. This is more than what the province has. During 1996/97 year the provinces were allowed to over-commit themselves on their budget allocations for that specific year by almost the same amount. Despite these commitments the money was never received.
The Eastern Cape province entered into legal agreement with developers on the ground. It had to honour these commitments anyway even if the additional money was never received.

The province is now still in the process of phasing out these commitments. Hopefully it will break clean by the financial year 2002/2003. Thereafter start from the clean statement.

(i)Capital housing scheme

An amount of R3 million is voted towards the "transfer of houses" programme.
This is a National Housing Programme called the R7 500 capital housing scheme.
All those state housing schemes built before June 1993 are transferred into the names of the occupants at the maximum discount price of R7 500. If the outstanding house price is less than R7 5000, the occupant receives the house for free.

The Eastern Cape province has a total of 150 000 houses to be transferred, and, 94 000 of these have already been transferred.

(ii)Expenditure on state assets

The provincial housing board has state assets in the form of flats, especially in Port Elizabeth and East London. It has to carry out maintenance on these stocks while they still remain its property.

These stocks are in the process of being also phased out in terms of discount benefit scheme.

(iii)Hostel upgrading

R12 million has been voted for this financial year that will primarily be utilized for Matthew Goniwe and Libombo hostels in Port Elizabeth and Butterworths respectively.

Upgrading is already completed in East London; Duncan Village Hostel B, Somerset East and Uitenhage.

These are hostel identified for upgrading in terms of hostel redevelopment programme in the province.

(iv)Old business

With the change over in 1994/95, the province had old projects up and running in some of the towns.

R 500 000 is voted to have these projects completed.

(v)Capacity building

An amount of R1, 06 million is reserved for the training of municipal officials as well as department officials on policy implementation.

The course was initially offered at Wits University and has since been decentralized throughout the province.

(vi)People housing process

R5.2 million was allocated in the 1998/99 financial year as a ring - fence amount. This money can only be spent for that particular purpose.

(vii)Rural housing

R15 million is allocated as follow

R4 million to the disaster - struck rural part of Umtata area.

The residual amount will be allocated to the 10 regional authorities in the province.

The province has identified rural growth points in terms of its provincial growth strategy. The first growth point is the Lady Grey/Lady Frere/Dordrecht/Indwe Triangle.

At political level, this area is identified as a rural growth point. Focus is beginning to shape towards the area.

(d) Status of housing projects


Region

Projects Approved

Subsidies Approved

Houses Completed

Nelson Mandela Metropole (Western Region)



93



47218



23822

Buffalo City (Central Region)


68


28761


16882

Queenstown & surrounds (Northern Region)


31


22194


13206

Umtata & surrounds (Eastern Region)


16


8672


2007

Kokstad & surrounds (East Griqua Region)


14


8137


1075

Rapid Land Development

38

20991

0

Individual subsidies

 

21213

21213

Pilot housing

   

1298

Total

260

157186

79503


The creation of housing ownership opportunities is the primary policy objective of the province of the Eastern Cape.

A total number of home ownership created to date is 173 928. This consists of 94 425 houses transferred in terms of the state discount benefit scheme and houses completed.

(e) Provincial Initiatives to kick - start housing development

The following are some of the initiatives which the Department undertook, and some of them had a National positive impact:

(i)Meeting between the Premier of the Eastern Cape, the Member of the Executive Council responsible fro Housing and Local Government and the Minister of Land Affairs to address land release problems which negatively affected ongoing progress and thus resulted in under expenditure.


(ii)The appointment of a Provincial Task Team to introduce project management systems to identify and subsequently address blockages.

(iii)The establishment of the Eastern Cape Tribunal in terms of the Development Facilitation Act has also to a certain extent alleviated land release.

(iv)The introduction of a Provincial Pilot Housing Scheme where municipalities and local emerging contractors are given an opportunity to engage in small scale construction in identified areas where there is no approved housing projects with provincial support.

(v)Operation Masakhe: The Department embarked on a mass housing delivery initiative which was designed around a partnership between all levels of Government and the Private Sector.

(vi)Utshani Fund: The Utshani fund was established by the National Ministry at the behest of the South African People's Homeless Federation in Port Elizabeth (Eastern Cape).


(vii)Integrated Housing Development: The Province has approved and support attempts to promote integrated housing development as can be seen in Cradock, a community which was thrown into disarray by political upheaval during the 80's. A project to build 2000 units with the assistance of NURCHA, brought together various sectors within Cradock to create jobs, establish small industries, train artisans and empower the community to actively participate in their own development.

(viii)Social Housing: With the assistance of the Housing Association South Africa based in The Netherlands a housing association has been established in East London to manage an institutional subsidy to promote densification.

(ix)Earth Construction Technology: A pilot project gained after a presentation at the 1996 Habitat Conference in Turkey, brought skills to produce bricks using the earth construction technology. The pilot project transformed into a section 21 company after two years and is now called the Van Der Leij Foundation through which a large community centre, three show houses and a brick factory have been constructed. A housing project containing all the various subsidy has been approved by the Eastern Cape Provincial Housing Development Board recently and construction is due to commence.


(x)Individual subsidies for emerging contractors: Individual subsidies, with support from the Department, are approved at manageable numbers to emerging contractors to build their capacity while offering beneficiaries better top structures.

(xi)New provincial norms and standards: The political functionary of the Department has laid down new provincial housing delivery norms which must be introduced in the following sequence in line with the Gear strategy of alleviating poverty and building the economy of the country.
· Job creation
· Skills development
· Maximum product (40 square meters)

(xii)Capacity building: The province has proven beyond doubt that unless the municipalities which are clearly mandated by the Housing Act of 1997 to undertake housing development, are capacitated to do so efficiently and effectively, in - roads made to date will not be harnessed. Consequently the Department has entered into partnership with various role players so as to capacitate municipalities, provincial officials, emerging contractors and communities, especially women. The following partnerships are making considerable difference.
· Department of Housing and Local Government (E-Cape) and the Department of Labour
· Department of Housing and Local Government (E-Cape) and GTZ through the Urban Upgrading and Development Programme
· Department of Housing and Local Government (E-Cape) and the People's Partnership Trust
· Department of Housing and Local Government (E-Cape) and the Delta Foundation
· Department of Housing and Local Government, Wits University and the Fort Hare Institute of Government

(f) Rapid Land Development Programme

The Eastern Cape Department of Housing, Local Government and Traditional Affairs has introduced a phased housing programme which will disaggregate the existing project - linked housing subsidy scheme into 2 distinct phases. The first phase provides beneficiaries with land, civil services and tenure in a planned manner. The second phase provides for the provision of top structures to be funded in ensuing financial years.

Poverty alleviation and the building of the national economy are the priorities of the government. The provincial housing protocol is therefore that of:

· Job creation
· Skills development and
· A satisfactory product - minimum of 40 square meters

The Department has been talking to big contractors towards the establishment of partnerships between the established and emerging contractors. For example, the big developer would be responsible for the provision of infrastructure, thus carrying out the more specialized work while the emerging contractor will come into the partnership to build the top structure. The whole idea is for the big contractor/developer to mentor the emerging contractor. This would facilitate a situation where the established developer would leave the skills behind when leaving.

The department has been in contact with the Department of Labour with a view to access funds for training emerging contractors but the department and the municipality must have a common understanding of the need for building this partnership as the training provided must be within the project.

The rapid land development programme has therefore got three key strategic thrusts namely:

· Building of partnerships
· Building of servicing stock
· Effective planning that will assist in fast tracking expenditure.

(g) Plan of Action for Housing: 2000 and
Beyond

The political functionary of the Department announced during the tabling of the Department's 2000/2001 policy speech that three White Papers will be published by November 2001 namely Hosing, Local Government, and Administration and Finance. The following policy measures will constitute the command line of the Department in respect of housing, pending the completion and publication of the White Paper on Housing:

· Systematic elimination of the housing backlog
· Finalizing the transfer of state rental houses to occupants
· Encourage private bond holders to respond positive to the Government's initiatives in assisting them
· Getting people who earn regular income to pay for services rendered to them by municipalities
· Improve the quality of house delivered
· Improve housing subsidy management
· Resequencing the housing (or any capital) project delivery protocol

(h) Challenges

The road ahead is definitely geared towards accommodating our policy shifts and finding alternative sources of financial support to address the following.
· To further promote the People's Housing Process
· To allocate funds towards the special needs of the disabled persons
· To kick start rural development on a progressive basis
· To promote rental housing
· To attend to the immediate welfare of the victims of gross human rights violations
· To assist with subsidy distribution of land restitution claims
· Promoting holistic integrated development planning through the integration of different sectors and the integration of the efforts of different actors
· To promote the building of partnerships between emerging contractors and established developers in particular

(i)Shortfalls Experienced

The decrease in the Housing 2000/1 budget allocation to the Province has a negative impact on the Department's strategic approach towards implementing rural development after the announcement of the national rural policy. The Department has limited funds to start housing initiatives in the ten Regional Authorities in the Eastern Cape Province and will have to opt for small pilot projects in the interim.


(2)Good Housing Development Practices - Ms Thandi Cebe, Deputy Director: Housing Board Secretariat

(i)Background

The Eastern Cape Department of Housing, Local Government and Traditional affairs in partnership with the German Development Agency (GTZ) through the Urban Upgrading and Development Programme (UUDP) decided to create a platform aimed at sharing lessons learnt and experiences gained during the implementation of low - cost housing projects. The workshop also served as a platform to inform and consult with stakeholders on new national and provincial policy, legislation and strategic trends on housing development and expected impact on housing delivery in the province.

Between December 1999 and May 2000 - prior to the workshop - a comprehensive investigation was undertaken into good practices in the planning and implementation of a selected group of housing projects which were approved by the Provincial Housing Development Board in terms of the current national housing subsidy programme. Fifteen housing projects were identified, of which three fell out, during the investigation process.

(a)Selection of Projects

Projects were selected as good practices on the following criteria.

(i)Housing process: institutional arrangement, financial arrangements, beneficiary and community participation, local economic development, and private - public partnership.
(ii)Housing product: consolidation process, design and choices offered, planning issues, method of construction, and, value for money.

The investigation placed emphasis on beneficiary participation and on the quality of the housing product. The investigation may not be representative of all housing projects in the province but demonstrates what can be delivered through careful design and delivery processes.

© (c)Types of Projects

The projects can be classified into four types:

· Greenfields projects as extensions of existing built up areas;
· In - situ upgrading projects through a People's Housing Process;
· High density projects; and
· Small-scale pilot/rolling projects for smaller communities.

Project Name Number of subsidies

 

Large greenfields projects

In-situ through PHP projects

High density projects

Pilot projects

1. Belgravia (EL)

   

150

 

2. Bizana Pilot projects

     

15

3. Cradock Vision 2000

1700

     

4. Dimbaza South Phase 2

1500(+200 in situ)

     

5. Elliotdale Pilot Project

     

15

6. Keiskammahoek

443

     

7. Libode

814

     

8. Missionvale Community Housing Project

   

493

 

9. Ngqeleni

420

     

10. Ugie

250

     

11. (Uitenhage) Masibambane Village Hostel Upgrading Project

   

143

 

12. Uitenhage People's Housing Process Project

 

1745

   

Sub-total of subsidies

5347

1745

786

30

Total number of subsidies 7908

Number of projects

6

1

3

2



The majority of projects selected for this investigation constitute greeenfields projects, where new residential areas were created adjacent to existing built-up areas. Examples of large greenfields projects are Cradock Vision 2000, Dimbaza south Phase 2, Ngqeleni, Libode and Keiskammahoek. These projects were targeted for beneficiaries living in informal settlements or in backyard shacks.

Only three of the 12 projects are in-situ upgrading projects or have a component of in-situ upgrading. In the case of the two Uitenhage projects, existing residential areas and existing buildings were upgraded and/or converted to family accommodation. In Dimbaza 220 subsidies were used for upgrading on existing settlement.

The two pilot projects are also greenfields projects but land within the inner municipal area was used. These projects required the subdivision of a large piece of land to be concluded before individual ownership could be granted.

The primary source of funding was project-linked subsidies which were used in nine of the 12 projects. Two projects were implemented via the pilot project programme, which is a unique programme in the Eastern Cape. The Belgravia housing project utilizes the institutional housing subsidies for a social housing project.

In 11 of the 12 projects, domestic water supply consists of an individual erf connection with water piped to the residential unit. The only exception was the Bizana Project where one communal standpipe per 5 residential units was provided. Sanitation was in the form of waterborne sewerage in 10 of the 12 projects with ventilated improved pit latrines provided in the rural towns of Bizana and Libode.

All projects had gravel roads with surface stormwater, except in the two Uitenhage projects and in the Belgravia project where bitumen surfaced roads were provided. Electricity is generally not supplied as part of the project, the exceptions are the Belgravis project, Keiskammahoek, Cradock, Ugie and the two Uitenhage projects.

The Eastern Cape Provincial Housing Development Board has supported larger greenfields housing projects via the project-linked subsidy mechanism.

(d) (d)Good Practice Lessons

(i)Greenfields Projects

· Building Quality: The emphasis in the Libode project on training and quality control for the emerging contractors has ensured a good end - product for the beneficiaries. Note that beneficiary interests such as quality and size of the top structure are paramount (a long - term objective) and accordingly considered more important than considerations such as short - term jobs for the unemployed.
· Design: The innovative design (veranda house) in Dimbaza, triggered an owner initiated consolidation process.
· Choices on Top Structure: The construction of different show houses enabled beneficiaries to chose is an important step to ensure beneficiary satisfaction and to a certain degree helped instill a sense of ownership and pride.
· Participation: Beneficiaries must be kept informed on all facets of the project from inception to completion through proper communication and community liaison strategies. Project Committees must have balanced representation from all key stakeholders in the project. Whenever possible, beneficiaries should be given a choice in respect of the top structure (choice in design, choice in building materials, choice in placing the house on the erf). Projects with a high level of beneficiary participation through Project Committees and strong local leadership are the most successful projects in terms of speed of delivery, choice and variety in the top structure and subsequent consolidation. Maximum community and beneficiary participation depends on strong and organized community structures (Cradock & Dimbaza) and clearly defined institutional arrangements allowing for project ownership by beneficiaries/community structures. If the Local Authority is in full control of the project management, not allowing consultants to forge ahead, beneficiaries could make informed decisions and come up with creative and innovative ideas and mechanisms, i.e., self generated solutions to problems. (Libode)
· Empowerment: The financial limitations of and the purpose housing subsidies do not allow for general skills development. One result of these limitations has been that in certain cases empowerment is only incidental to housing development. In several cases up - front selection of groups to be empowered ensured that training had impact and effect. Beneficiaries are the first - time homeowners. In the Dimbaza project a series of workshops around property ownership, services and maintenance was held. Such education programmes assist beneficiaries and the Local Authorities to integrate new low - cost housing areas into the town.
· Beneficiary Qualification criteria: transparent objective criteria have to be introduced to select potential beneficiaries where the housing need exceeds the potential supply of units. Pre - project selection is also helpful to identify the real participants in the project and to open proper channels of communication to them.


(ii)In-situ Upgrading through People's Housing Process

· Beneficiary driven construction: Utilizing sweat equity and emerging contractors, a high standard of services and one of the biggest top structures could be achieved. The project demonstrated that some low - income earners could contribute financially through savings schemes.
· Gender: Women demonstrated their ability to take up "conventional men's jobs" in the building industry.


(iii)High Density Projects

· Integration: In Missionvalle and Belgravia the good location of the projects, relatively close to the city centres, resulted in racially mixed communities, an important element of social integration and more compact cities.
· Planning: In the Missionvale project a more compact lay - out was achieved resulting in larger top - structures of up to 54 square meters. Smaller sites ensured more cost effective infrastructure installation and low maintenance costs.
· Gender: The majority of tenants in the Balgravia project are women. This points to the need for women (often single parents) to obtain accommodation in a secure environment. High - density developments are attractive to single parents.
· Institutional Relationships: Both the Missionvalle and Belgravia projects had representatives from business bodies such as the Boredr - Kei Chamber of Business and the Delta Foundation which ensured the necessary expertise.


(iv)Pilot Rolling Projects

· Location of projects: The small projects were developed on land readily available in the towns. The projects contributed to consolidating the municipal area.


(e) Why share good practices and not indicate bad products

The intention is to influence developers that to share ideas and information certain things can be done in certain ways. The intention is also to downplay bad practices rather than promoting them.


2.Housing Association East London (HAEL)

(1)Brief overview on the role of East London Transitional Local Council (ELTLC) in, and the history of, HAEL - Mr. Desmond Halley and Ms Gafeetha Vengadajellum.

The Housing Association East London is a very young and vibrant organization. Initial contacts between the City of East London and various organizations in The Netherlands date back as far as 1993, when the first discussions on alternative housing solutions took place.

These discussions eventually lead to the formal establishment of HAEL as a Section 21 Company on 5 May 1998. The initiative came about as a result of a joint effort between the City of East London and the Housing Association South Africa (HASA), a foundation comprising 32 housing associations in The Netherlands.

Together, the above parties have undertaken to provide affordable social housing to those sections of the community that do not have the means to finance or construct a dwelling themselves.
Besides addressing the housing problems to low - income earners in East London, HAEL has undertaken to make a concerted contribution towards the social and functional integration of the city by directing its efforts primarily at compacting the urban form.

HASA committed themselves to providing technical and financial assistance during the first 5 years. In 1997 a Dutch project Manager was seconded to HEAL. On the other hand, the East London TLC support HAEL by making land available at below market prices and providing technical and financial support.
HASA principles complement the city council's policies on promoting visible, upward mobility and in breaking with the past high level of dependency for housing on local authorities.

The composition of HAEL Board of Directors reflect the developmental stage that the organization finds itself in, with representative of the parties that were involved in the establishment of the organization.
The eight - member board has representatives from Border - Kei Chamber of Business (BKCOB), the East London TLC, HASA and the NHFC.

Funding is generated from grants from the following organizations and/or institutions: Housing Institutions Development Fund (HIDF), East London TLC, HASA, Provincial Housing Board, and, the City of Leiden.

Among the weaknesses and threats facing HEAL are high interest rates, unstable economic situation, lack of social safety net, HIV/AIDS, and, the perception of rental stock as inferior.
Critical success points include strategic partnership between ELTLC and HASA, "buy in" from NHFC and PHB, lengthy secondment of Dutch advisor, "on - line access to specialist knowledge via HASA, and, the commitment from staff members.

HAEL wishes and strives to become a fully independent and financially self - sustainable South African enterprise by 2002.


C.Group (On- Site) visits

1.Belgravia Valley

Belgravia Valley is a mixed grouping social housing inner - city development project that presently consists of two phases. In total the complex has 338 housing units. The project is managed under the auspices of Housing Association of East London (HAEL).

The first phase boast 150 walk up units. Construction started in October 1998 and completed in November 1999. The size of the units ranges between 35 to 67 square meters of one, two and three bedrooms. Tenants pay a monthly rental of between R625 and R890 depending on the size of the unit occupied.

Construction in Phase 2 started in January 2000 and completion is foreseen for February 2001. There are 288 rental units of between 24 to 63 square meters. They vary from one to three bedroom flats. Rental ranges between R650 and R900 per month, and again, depending on the size of the unit occupied.

Above the monthly rentals, tenants are liable for their own consumption of metered water and electricity to the East London Transitional Council (now Buffalo City).

Funding for the project comes from a variety of sources. First, there is an institutional subsidy grant from the government. Second, a mixed grant and loan fund from The Netherlands. Third, funding for bulk infrastructure from the ELTLC. Fourth, is a loan from the National Housing Finance Corporation (NHFC).

Tenants for the Belgravia Valley project are drawn from all over the city - 50% from Duncan Village and the remaining 50% from the municipal waiting list.

Potential tenants undergo a rigorous screening process, which consists of five interview sessions. HAEL's criteria, which include gross and net income, household size and composition, credit worthiness and cash - flows, are discussed. Once the above stage is passed, applicants receive a tenants guide to study and a date to attend the 4 - hour HAEL tenants training programme. This programme is very interactive and covers the understanding of Social Housing, HAEL, social, financial and maintenance rights and responsibilities of the tenant and HAEL and tenants participation. An evaluation and slogan competition conclude the session. Tenants then go on and choose a unit and sign a lease agreement.


2.Smuts Ngonyamaville

This is one of the people's housing process projects in the Eastern Cape province. The beneficiaries are actually involved in the building themselves of their own houses.

The community designed plans for their own houses that were subsequently endorsed by the provincial housing board, and, submitted to the local municipality for approval. The building costs (including material supply) accompanying these designs were calculated up to the last cent with the involvement of the community. Beneficiaries are not dependent on state subsidy grant of R 16 000 alone - those who can contribute some finance to build bigger houses do so voluntarily.

Initially, in 1998, the costs of building a single house unit of 51 square meters was at R11 021,51 after expenses for basic infrastructure were exhausted. Due to deliberate delays by the officials of the ELTLC and increase by suppliers on materials, the project could at the end of 1999 only manage a 48 square meters unit. When construction was supposed to start in August 2000, the material costs brought down the unit size to 40.5 square meters. However, some beneficiaries still make contributions to enlarge the houses to 48 square meters.

The Smuts Ngonyamaville people's housing process project currently consists of 427 housing units. A total of between 107 to 138 units are under construction. Foundation has already started and/or been laid to 31 and/or 125 units. 186 units are in trenches.

Within a short period of one year, the project managed to reach tremendous achievements. These include hiring a competent architect, bringing students on an internship programme from Botswana, creating employment for the local people, designing the houses, performing financial cost estimations for the houses, and, hired containers to kick - start construction.

Despite all this, the project is experiencing some problems dealing with the ELTLC, provincial department of finance, and sometimes, the provincial housing board. Officials of the municipality are not co-operative. There is no running water on the building site. The municipality promised to connect water at the rate of R100 per unit per month, to provide a support center, and, to make land available for free. After spending R60 000 on fencing, the municipality reneged and demanded that the land be paid for and charged double the initial R100 rate for water.

The Accounts Administrator in the provincial department of finance does not want to come to the site for payments - the office is situated too far in Port Elizabeth. The community has to raise transport fare from their own pockets - rather than take from the subsidy grant - in order to reach the office for payment.

All in all, Smuts Ngonyamaville people's housing process is a typical reflection of a nation at work building the country.

3.Sinebhongo Village

A Rotary funded project for single mothers.

So far the project consists of 100 complete housing units of 45 square meters: two bedrooms, lounge, kitchen, and, an inside toilet and shower. A total number of 52 houses are already occupied by beneficiaries.

The names of the legible beneficiaries are selected from the local municipal waiting list - single mothers only.

The financial costs of R 28 000 per housing unit derive from the R 16 000 state subsidy grant as well as R 12 000 fund from Rotary Club of East London/USA.
Similarly, the beneficiaries make personal contributions of R177 and R250 for water connection and electricity boxes respectively. The community has access to basic infrastructure such as tarred street roads, drainage water, sewage etc.

In an endeavour to stimulate and hasten provincial economic growth in terms of rural development strategy, the project utilized a local emerging contractor in the name of Christopher Funding Mfana Construction. The bulk of the labour force was selected from the community, particularly, the beneficiaries.


D.Comments and Recommendations

1.Partnership between provincial and local governments should be enhanced to speedy up the delivery of services to all our people, particularly the poorest of the poor in the rural areas.
2.Overseas visits should be tidy up in order to facilitate coordination amongst the different role-players.
3.There should be extensive public hearings and public submissions at the provincial level to strengthen the national legislative making process.
4.The capacity of the emerging contractors should be given all the desired support in terms of rural development strategy in order to stimulate economic growth in the province.
5.Government should as soon as possible intervene and regulate the sale of subsidy houses funded from state coffers.
6.Ongoing discussions between the national government and provinces with regard to budget spending to promote service delivery - housing - should be encouraged.


E.Conclusion

The local municipality is the vehicle to steer development, and until that is realized, development would not be realized too. There should be commitment shown by all stakeholders involved in rural development.

There's a need to change the mindset of some of the municipal officials.

However the Committee is satisfied that it had attained most of the objectives for the study tour.

The delegation managed to lay the basis for a very constructive relationship with the provincial government of the Eastern Cape. Open and constructive discussions took place between the MEC for Housing, Local Government and Traditional Affairs, Mr. Gugile E Nkwinti, his department's senior manager, and, the delegation from parliament.

The visit also succeeded in highlighting the government's rural development strategy in terms economic growth. The MEC pointed out the provincial initiatives towards the implementation of the rural development strategy in the province.


F.List of participants

1.Provincial Department of Housing, Local government & Traditional Affairs

(1)MEC for Housing, Local Government and Traditional Affairs: Mr. Gugile E Nkwinti.
(2)Personal Assistant to the MEC: Mr. Litha Twaku.
(3)Head of Department: Mr. Solomzi Maye.
(4)Chief Director - Housing: Ms Linda Mqokoyi.
(5)Director - Housing Administration: Mr. William Perks.
(6)Head of Communication: Mr. Mbulelo Linda.
(7)Deputy Director - Housing Board Secretariat: Ms Thandi Cebe.
(8)Regional Office of the provincial Department of Housing, Local Government and Traditional Affairs.

2.National Department of Housing

(1)People's Housing Partnership Trust: Ms Pinky Vilakazi.

3.Housing Association East London

(1)Chairperson of Board of Directors and Deputy Mayor of Buffalo City: Mr. Desmond Halley.
(2)Implementation Manager: Ms Gafeetha Vengadajellum.
(3)General Manager: Mr. Patrick Lemmens.
(4)Tenants Administrator: Mr. Lucian Strachan.
(5)Social Caretaker: Ms. Felicity Brauns.
(6)Leasing Administrator: Ms Cynthia Klaas.
(7)Ms. Julia Alie, and
(8)The people of Belgravia Valley.

4.Housing Institutions Development Fund (HIDF)

(1)General Manager - Operations: Mr. Luthando Vuthula
(2)Finance & Administration Manager: Mr. Andrew Higgs.

5.People's Housing Process Project (PHP) - Smuts Ngonyamaville

(1)Chairperson - Smuts Ngonyamaville Development Trust: Mr. Khululekile Sotewu.
(2)Secretary: Mr. Sipho Mzamo.
(3)Administration Officer: Mr. Bongane Macwili, and
(4)The Smuts Ngonyamaville community.

Sinebhongo Village (Rotary funded project for single mothers)

Liaison Office: Ms Lindiswa Mbanjana.
Contractor: Mr. Fundile Mfana.
Sinebhongo Village community.

Local press media

All communities visited, including those involved with refurbishing projects inherited from the previous dispensation before 1994, as well as those not visited for various reasons.


 

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