Thubelisha Homes Presentation
To date, 4443 units have been constructed, in 6 of the 9 provinces, viz. Gauteng (61%), Western Cape (16%), Mpumalanga (8%), North West Province (6%), Eastern Cape (6%), and Free State (3%).
He shared the problems experienced by the organisation:
1. R2479 "own contribution" was threatening to a huge impediment, but negotiations with the banks to pay in those amounts, bore fruit. The banks are now providing the R2479 needed for "own contributions".
2. The Committee heard how illegal occupations of homes and the subsequent ineffective evictions have a direct implication on the work of the organisation. Some clients, having initially committed to the process of "rightsizing", become influenced by pressure groups to illegally occupy their present housing, which they can no longer afford to pay. They renege on the agreement to relocate to the alternative "rightsized" housing which the organisation provides for them. The organisation is then forced to apply for eviction orders against the clients. The problem is further compounded by the apparent inability of the police services to cooperate with the Sheriff of the Court, in carrying out the evictions.
He added that although the problems were considerable, they were not insurmountable.
Mr Duncan proceeded to speak on the way forward for the organisation, saying it had become necessary to consider the re-invention of Thubelisha Homes for the following reasons:
- rightsizing potential had been reduced from 17000 to 11000, since at the inception of the organisation, they had not anticipated the present non-compliance of many of the clients;
- in spite of good planning, considerable external factors were proving a major challenge;
- the need for greater delivery on Government objectives;
On the organisation’s future, incorporated into their strategy, is a policy to integrate the aged and disabled from the housing waiting lists of the Local Authorities, for consideration on the Thubelisha Homes programme. This sector would constitute 20% of the organisation’s clients.
Thubelisha Homes would like to play a supportive role for the Local Authorities in the provinces. Mr Duncan informed the Committee that already, Mpumalanga Province had appointed the organisation as a primary support organisation.
The Dept’s DG had requested Thubelisha to spearhead the Emerging Contractor Development Programme. Emerging contractors would be put through a development type of programme, where they would also attend formal lectures, and eventually graduate with a formal NQF accreditation.
The organisation has made a policy decision to offer 20% of all projects to women in construction.
Referring to the 3-year financial overview, Mr Duncan mentioned that "Income from Investments" showed a gradual decrease. The organisation was originally capitalised through the Dept, but operational costs were eating away at the investment. The organisation is sustainable, since its operations are not huge. However, they do need to "keep head above water".
On the Balance Sheet, Mr Duncan explained the projected jump in assets by saying that the organisation would be adding a further element to its operations, through the People’s Housing Process (PHP). Because of this, there would be large amounts of building materials in the possession of the organisation, specifically for use by the PHP.
Under "Current Assets", he explained the term, "Accounts Receivable". These refer to houses which had been completed, and had not yet been paid for by the Housing Board.
Of the staff complement, he said that the level of professional employment is at two-thirds. On average, the company is fairly highly paid, since the professional level is quite high.
The nett profit per client is R500 – R600.
These were some of the items Mr Duncan requested assistance with:
- the growing scarcity of land
- land that is earmarked to be developed into new township areas, is now subject to compulsory environmental impact assessments prior to development, which is causing huge delays.
– they are subject to delays caused by the Deeds Office
– the occurrence of illegal occupants, and the problems of ineffective evictions
– councillors who are not truly supportive of the organisation’s work, and who have their own agenda’s
DISCUSSION
The Chairperson asked what method was used to collect the R2479 "own contribution" was collected from the clients.
Mz Semple (DA) asked how the organisation hoped to complete its target of 15000 units by 2006, since it is presently producing 2000+ houses per year. By when would the demand actually be fulfilled? She commended the organisation on the fact that it was providing houses for the aged and disabled. She inquired if HIV/AIDS sufferers and child-headed households also qualified for these houses.
A member asked if there was space for new clients, who had not applied for homes before the cut-off date of 31st August 1997, to qualify for these houses.
Mr Duncan explained that the organisation provided the client with a bank deposit slip which carried a stamped reference number. The client would use that specific deposit slip when depositing his payment through the bank. The organisation could determine specifically where payments come from, by identifying the reference number on the deposit slip copy which comes from the bank. He reported that the system was working quite well.
To Mz Semple, Mr Duncan referred back to his earlier statement that the organisation, at its inception, had not anticipated their clients’ non-compliance. The organisation could do a lot more, but that would depend on the willingness of the client to comply to the terms of the programme. The success of the programme will depend on how many people are willing to take up rightsizing, and for that reason, the effectiveness of the eviction programme is crucial.
Mr V. Matlau (Senior Manager: Strategic Relationships) stated that the rightsizing programme is not a palatable operation, because it necessitates people having to move from big to much smaller houses. However, it provides a solution to people who can no longer afford their homes, so that they do not find themselves without shelter.
HIV/AIDS sufferers and child-headed households do not qualify for homes from Thubelisha. Mr Duncan reported that the National Dept is currently drafting a policy aimed at assisting these people.
The programme is at present not open to new people coming on board. The National Dept. is eager to see how the programme will unfold with the present intake, before taking on new clients.
Mz S. Vos (IFP) asked if anything was being done on a national level, to address the problem of lack of support by the SAPS in evictions.
Mr W. Skosana (ANC) asked which three provinces were not included in the programme. Additionally, he asked if there were no need for the programme in those provinces.
Mz M. Ramakaba-Leseia (ANC) said that many people had saved much more than R2479. Would the organisation assist such people, who were sacrificing to purchase better homes?
Through the People’s Housing Process (PHP), Thubelisha Homes would be offering its services in the remaining three provinces, which are the Limpopo Province, the Northern Cape, and Kwazulu-Natal.
To Ms Ramakaba-Leseia, Mr Duncan said that the stipulated policy was that each client must give R2479. Clients who have additional funds to add, are able to purchase bigger houses. Thubelisha Homes would accommodate them.
The Chairperson thanked Mr Duncan for his presentation, saying that the Committee would look into the constraints which he had requested assistance with.