(1) (a) The current costs for constructing a house for a military veteran, as per the agreed minimum norms and standards with the Department of Military Veterans, has been set at R 188 884,00. Of this amount, the Department of Human Settlements is responsible for the normal housing subsidy amount of R 110 947,00 whilst the Department of Military Veterans is responsible for the top-up amount of R78 000,00.
(b) In 2012 the Departments of Human Settlements and Military Veterans signed a Memorandum of Understanding (MOU) to guide roles, responsibilities and accountability of all the parties, in the process of providing adequate housing to military veterans. This MOU provides the framework regarding the obligations of the two Departments as well as for the Provincial Departments of Human Settlements and municipalities in the delivery of housing units for qualifying military veterans.
It includes an agreement that the Human Settlements Development Grant shall only fund the standard subsidy house cost and any residual amount required to achieve the higher specification house required by the Department of Military Veterans shall be funded by them as pointed out in paragraph (1) (a) above.
In terms of this MOU, the nine Provincial Human Settlements Departments are mandated to conclude Service Level Agreements with the Department of Military Veterans. These Service Level Agreements are to be based on the delivery targets set by the Department of Military Veterans.
(2) (a) In terms of the Memorandum of Understanding, construction of all housing units for military veterans should follow the agreed process as outlined above.
(b) Similarly, the cost break down as outlined must be complied with by all parties.