DRAFT COMMITTEE REPORT


Report of the Portfolio Committee on Housing on the Imbizos in the Eastern Cape Province on 04 -07 August 2003.

A. Introduction

The Portfolio Committee on Housing held an Imbizo in the Eastern Cape Province on from 04 to 07 August 2003. The Committee had an opportunity to interact with the MEC of Housing, Local Government and Traditional leader, Hon Gugile Nkwinti, members of the standing Committee on Housing in the Provincial Legislature, officials from the Provincial Department of Housing, Councillors, stakeholders, beneficiaries, contractors and builders.


Attached is a submission from Elliot and Walker Attorney Notaties Conveyancers (Annexure A).

1. Delegation consisted of The delegation included Ms Z Kota (Chairperson) and leader of the delegation; Mr. C Mabena (ANC), Mr. G Schneenman (ANC), Ms J Semple (DP), Ms MN Oliphant (ANC), Mrs. MM Ramakaba-Lesiea (ANC), Mrs. CL Ludwabe (ANC), Mr. J Nash (ANC), Ms K Pasiya (Acting Committee Secretary); Mr. S Makeleni
(Committee Assistant) and Ms E Scholtz (Secretary to the Chairperson-PC on
Housing.

2. The objectives of the visit were as follows:

To assess the pace of housing delivery
To assess the provision of basic infrastructure
To check the adherence of contractors to norms and standards
To assess the quality of housing units provided
To check whether their Peoples Housing Process has been able to takeoff.
Municipalities Integrated Development Plan.
The participation of emerging contractors in the housing delivery process, including women contractors, and
The constraints experienced by the province and municipalities in the housing delivery process

3. Study Tour

3.1 Umzimkhulu Municipality

3.1.1 Raloti Disaster Area

The disaster in Raloti was caused by veld fires. It had affected 235 families and were left homeless. There are 102 units have been completed by Umzimkhulu Municipality. The Peoples Housing Process (beneficiaries) and Thomar Construction, a building contractor, rebuilt the houses. The size of the houses are 40m2 with two bedrooms and a lounge or dinning room. Each cost around R14 750, including toilets and R7 300 is still in Bisho for infrastructure. They have VIP toilets. The constructor is registered with National Home Builders Registration Council (NHBRC), and the houses are covered for five years.

There is no infrastructure in place and residents depend on rivers and spring water, which they have to queue for. The youth is also involved, including young girls who are bricklayers and painters.

The beneficiaries appreciated the houses and they said the municipality came to their rescue in time. Their challenge is running water. The Municipality has introduced fire belts to stop and prevent future veld fires.

3.1.1.2 Recommendations

Showers with drains must be in the place. Bore holes for water would be necessary as they have electricity.

3.2 Riverside

There are 507 approved subsidies, and 300 houses are completed and others were still under construction. Beneficiaries are people living around the villages. Local builders were building houses for the community, and the project was called "people's housing process". They decide on the structure to build and others put more money for bigger houses. In December 2003, these houses will be officially handed over to their owners.

3.2.1 Challenges

The first houses to be built were partitioned. The new ones are not arid people do not have money to partition. Material got lost and securities officers were employed to look after the material. There is also a problem of vandalism. The money for builders was decreased from the original amount and they were frustrated. There are no doorsteps for elderlies. Wooden doors get rotten much quicker because of cheap material used. Houses built were of poor quality.

3.3 Umzimkhulu Town Ext. 6

There is a building coordinator in that project and they were given R8000 to build each house, and it was not enough. The houses are 40m2 and the project was not yet complete. Local builders were building for the community. The yard size is 300m2.

3.3.1 Challenges

The doors and windows are without lentels and the houses were leaking. There are cracks on the walls and on the corners of the houses. The doors are cracking despite having been approved by the SA Bureau of Standards (SABS). When they were cut they would break and shift. Windows are too weak due to the use of cheap soft material.

3.3.2 Recommendation

The province should assist the municipality with capacity building on projects. Visits by the department on projects is essential.

3.4 Public Hearing/Imbizo

Executive Mayor Bheki Dzanibe chaired the meeting and welcomed all present.

3.4.1 Proceedings

The public and the municipality raised issues that caused delays in housing delivery, such as

(i) The distribution of funds by the Provincial Department of Housing to the municipality
(ii) Delays in the land claim processes,
(iii) Land owned by Chiefs makes it difficult to build houses.

The community complained about the lack of infrastructure. People from rural areas needed houses to be built in their sites or communal land. Residents from Clysdale have been requesting a community farm since 1992, and the title deeds have not been issued. The Communal Land Bill was raised as it could resolve the issue of rural land. Teachers and policemen, who do not qualify for low cost houses, were alleged to have bought land or houses from the disadvantaged people for business.

Residents from Rietvlei, claimed that there was a village that used to belong to coloured people who left a long time ago, which needs to be given to those people who reside in it and also be given title deeds for ownership.

3.4.2 Recommendations

The Provincial Department of Housing should look at the problem of the distribution of funds, as they don't have the same financial year as the municipalities. The delays on land claims needs to be looked at by the province. Chiefs need to work closely with their municipality, as they need their communities to have houses.

Ward councillors are to assist the community of Clysdale in their applications for subsidy (900 sites will receive their title deeds as the government has purchased the land on their behalf. The Municipality will hold meetings with Chiefs and brief them on issues regarding houses).


4. Umzimvubu Municipality

4.1 Tyoksville Project

It was a low-income housing project with 700 approved subsidies. 102 are completed and 35 are wall plate. It was implemented under people's housing process. The size of the unit were 36,6m2 and were later approved and became a 40m2. There are 15 completed slabs and the building teams is constituted by beneficiaries. Local suppliers are used for material procurement. The support centre is used as storage for material and after the completion of the project, it will be converted into a social community hall.

A community member expressed her frustration about her house which was left incomplete and she was told to complete it herself as it was too big. She said this was a problem, as she did not have a proper job.

4.2 Challenges

There are problems with consistent supply of building material.
Payment of builders was often delayed due to cash flow problems on projects.
The process of accessing funds was frustrating. Non payment of workers in building resulted in low morale and deteriorated progress. Installation of civil works by consultant has been prolonged due to applications that took more than a year to be processed.

The project manager appointed to assist at the Umzimvubu municipality is stationed in East London whilst the projects are in Umzimvubu.

Other projects in Umzimvubu Municipality:

4.3 Recommendations

(a) We recommend that province should look at projects as housing unit seem not to adhere to norms and standards.
(b) Clarity needs to be given as there is no clear hosing suot centre. Only storage is in place.
(c) The community seemed to be in a state of despair as many houses are incomplete. Municipality as developer must take charge of projects.
(d) The project needs a Project Manager that is stationed in Umzimvubu.

O5 August 2003

4.4 Imbizo/ public Hearing


Mayor Munyu chaired the meeting

Proceedings


The funding of projects that were already approved and funds had been transferred to the municipality's account are a problem to take off in Umzimvubu Municipality. The land claim process has delayed the housing delivery in almost all the projects in Umzimvubu. Some of the land belongs to residence, the others to Inkosi and the land claim office in Bisho is dragging to respond. Public servants bought land from the poor for business and that has became a habit. The community raised a concern about the closing down of offices in Kokstad and they requests that staff members from Umzimvubu Municipality be allocated in those offices because of their experience in housing issues. People needed houses in their sites and not to be moved to town to get houses.




4.5 Recommendations

The officials from the Department of Housing and Councillors need to meet and strategize the funding issue.
The issue of land invasion by public servants is crime and it needs to be addressed.
People should have houses in their sites as this is cited in the Communal
Land Bill that people have the right to have houses in their sites.
An improved communication system between municipality and the province is needed.
Project manager to be stationed at the district municipalities’ office.

4.6 Rural Housing


This project was approved at Mphemba ward 11 with 1000 subsidies. The Department of Housing, Local Government and Traditional Leaders are to see to it that the project resumes immediately. Other villages have submitted a list of potential beneficiaries. The project is not yet of the ground.

4.7 Recommendation


The department and municipality must account why the project is not off the ground if 1 000 subsidies have been approved.

5. Buffalo City Municipality


5.1 Duncan Village Hostel B


Duncan Village Hostel B was built in 1960. It is owned by the East London City Council. It was originally a single person hostel and accommodated 752 units. It used to be well managed and rentals were charged and paid for by the residents. The buildings were destroyed by fire during unrest in 1985 and many residence refrained from paying rentals and the building standard deteriorated. Various attempts were made to upgrade the hostel between 1991 and 1994, and progress was only made in 1995 when hostel a re-development program was successfully implemented.

5.1.1 Consultation Process

The planning and construction of the B hostel project was a fully consultative process where all role-players made valuable contributions. Hostel residents were workshopped on the formation of housing association. It was later decided that the B hostel should function as a municipal rental stock and the housing association be considered at a later stage.

5.1.2 Funding

An amount of R8 million was received from various sources such as Amatola District Council, Duncan Village Presidential Project, PHDB and the East London TLC. An amount of R10 000 was also received from charity in Netherlands, and
the hostel was upgraded up to 302 family units and 96 single.

5.1.3 Challenges

There is an illegal occupation of units, people who have absconded allocated people into their units. This made it difficult for Buffalo City Municipality to allocate people who were on the waiting list for the accommodation. An informal settlement has mushroomed in the vicinity of Hostel B . There is an illegal connection of electricity. Houses are leaking during rainy days. The houses do not have steps. There are no lentels on doors and windows and the walls are cracking.

5.1.4 Recommendation


For a way forward, all relevant stakeholders need to be brought on board to solve this dilemma.

5.2 Haven Hills South Housing Development- Own Haven Housing Association


The Haven Hills project was developed by the Van der Leij Habitat Foundation. It was identified by Buffalo City municipality as a Pilot Village to demonstrate an integrated and sustainable urban living environment with a range of higher-density housing options as an alternative to the traditional low-density urban sprawl.

The project has approved 556 units, including 132 project-linked to low cost units. It has 354 rentals apartment and 70 credit-link plot-and-plan dwellings. The project allows for the demonstration of different types of houses and ownership options while providing a balance between affordability, sustainability and quality. The first project of Own Haven Housing Association, namely the construction of 318 two-and three-storey walk up units as the rental component of Haven Hills South, commenced in September 2002. It was awarded tender to the amount of R28 million to Grinaker-LTA, a national construction company. Own Haven Housing Association were to own and manage these rental units to ensure their
sustainability.

The development of Haven Hills South has progressed well, with the first tenants of the rental units taking occupation on 15 March 2003. It is anticipated that all the units will be completed and occupied by mid-August 2003. There is a prepaid water and electricity system.

5.3 AMALINDA CO-OPERATIVE SETTLEMENT PROJECT


This development consists of 196 services sites and houses within 8 housing Corporatives. The project is being implemented via the PHP with Buffalo City Municipality as Support Organizer.

The key role player of the project is the East London Housing and Management Co-operative (ELHMC), which is a local organization. The ELHMC is supported by Afesis Corplan, a local NGO promoting co-orperatives through Swedish Funding.

The project utilizes institutional subsidy of R20 300-00 per beneficiary plus a 15% variants. Individual beneficiaries also contribute approximately R2500-00 each which is jointly saved through the East London Credit and Savings co-operative.

The properties will be communally owned by the members (beneficiaries) of the 8 co-operatives. The internal services within the co-operatives will also be owned and maintained by the co-operatives. After 4 years members will then have an option of individual ownership.

The total project budget is approximately R4,6 million and the project is expected to be completed in February 2004. The typical house size is 45m2 with concrete tile roof. The main challenge experienced in this project is insufficient capacity of emerging contractors.

5.4 CHRIS HANI VILLAGE: MDANTSANE

The project is in the first phase of development at the Mdantsane-Bufferstip, which consists of approximately 2000 informal houses on the fringe of Mdantsane. The Chris Hani Project entails the development of 302 services sites and houses via the People Housing Processes. Buffalo City Municipality (BCM) is the Support Organizer of this Community Development.

A partnership agreement exists between BCM and the Chris Hani Community Development Trust, which is the beneficiary representation body. The project budget is around R7.2 million and houses vary from 40 to 51 m2 in size. The service installation stage has been completed and houses are expected to be completed by September 2003. The contractors were made of local builders and emerging contractors.
5.4.1 Challenges

Material price escalation versus the project implemantation period. There was a communication breakdown which led to community conflicts. There is an insufficient capacity of key role players at Buffalo City Municipality , Chris Hani Community Development Trust and appointed project co-ordinator. There were no lentels on the windows and doors and this resulted in cracks.

5.4.2 Recommendation

The province must ensure the adherence to norms and standards. Any housing defect is an attack on housing policy which stresses the importance of quality housing units.

5.5 BERLIN - LINGELITSHA
Berlin consisted of conventional housing project of 411 houses. Housing construction started in February 2002 and was completed in May 2003. Buffalo City Municipality was the developer of this project. Houses are 40m2 in size, and they were built on R16 000 subsidy band. Estimated project amounted to R6 500 000.

5.5.1 Challenges

Five of the beneficiaries could not be found for occupation of their houses. Properties have already been registered in their names. Houses are not partitioned.

5.5.2 Recommendation

If these beneficiaries are not found, houses should be given to other beneficiaries after thorough investigation and public engagement.

5.6 KING WILLIAMS TOWN HOUSING ASSOCIATION

It was awarded two projects by the Department of Housing the first being for 420, and the second for 2047 subsidies. The first project 420 subsidies allowed for the development of established vacant serviced to be developed which had been blocked for various reason including banks"red lining" and finance.

The second project 2047 subsidies allowed for more affordable units. Each unit has a maximum of 2 bedrooms, bathroom, kitchenette and lounge. Specifications were reduced to exclude plastered walls and internal painting. The basic rentals of the units range from at R360 to R450 per month, excluding insurances and municipal charges.

5.6.1 The 42 houses need to be unblocked.
The MEC should follow up this matter as a matter of emergency.

5.6.2 Home ownership

King William's Town Housing Association pursued the rent-to-own options which allowed tenants to purchase their units over a twelve- year term. It provided a full service in terms of the Social Housing concept by facilitating true Home Ownership. It developed a beneficiary equity which is not only facilitated by rental schemes.

5.6.3 Challenges

The escalation of costs of the house in the second project started by eliminating salary of R1 500 per month and later pushed the entry level up to above R 2000 per month.

5.6.4 Recommendations

Meeting with companies that supply our building material remain acrocal way in which the price of building material cold be addressed. Especially when that increase in linked to increase in subsidy.
5.7 SWEETWATERS PHASE 3

Phases 1 and 2 were completed, with 1600 units.

5.7.1 Phase 3-550 units.

This is a green fields for 620 subsides at which 550 units will be developed. The contract for the provision of a full level of services was awarded in June 2003 and is due for completion by January 2004. The project will be converted to the Peoples Housing Process for the construction of the top structures.

House construction is expected to commence early in 2004 and is to be completed by the end of 2004. The current approved budget of R16 000 with 15% top-up is expected to increase to the new subsidy value of R23 100.00 giving a total budget of R 14 740 000.00.
5.7.2 Recommendations

(1) The province or the municipality must clarify as to who the authentic contractors of this project are.
(2) There is a need to explain what the RHP process mea. There is a lot of confusion about this province.

6. Meeting with the MEC Gugile Nkwinti -Buffalo City Offices- 07 August 2003

The MEC admitted that they are underspending and according to their calculations, they were to spend 6 Billion a day as they did in May 2003. They spent R20 Million in July 2003 and later the amount dropped gradually. The MEC and the Mayor are going to meet and discuss this matter.

With regard to the support centres, the MEC said that there are number of centres to monitor, to keep records and to administer projects. There was no capacity or quality control as they have employed only one civil engineer in each region, and this was not enough.

The civil engeneer has been a conceptual problem as there was no civil engeneer in the Eastern side of the Eastern Cape. The Department of Housing, in consultation with Dymler Chrysler is offering bursaries for student to study municipal studies and engineering and they gave grants to Rhodes University. A turn-around strategy was agreed upon as a way forward but it seemed not to be working. A workshop will be conducted to address this.

The energy efficiency is not common it was once introduced in a pilot project but it is no longer in use.

Regarding women constructors, there is one in Queenstown and she was given 20% share on tender. Project managers were employed to monitor and advise in projects and they visit municipalities weekly. Traditional leaders are participating in municipal activities and campaigns. The MEC said municipalities should budget for traditional leaders subsistence and transport allowances (S&T)

The Chairperson raised the issue of Kokstad staff, who were sent back to Bisho because their offices in Kokstad were closing down. The chairperson said the community requested that those staff members could help in the municipal offices as they had experience in housing issues. The MEC said the municipality would have to apply for staff from the Kokstad offices.

Incomplete projects will be looked at as a matter of urgency, and there are funds to finish them especially the one in uMdantsane. The MEC also said that people from rural areas have no houses,he also mentioned that he phoned for certain project that was delayed, and plans were approved. Suppliers delivered the material, the problem was with ward committees who were not doing their work.

7. Imbizo Public Hearing/meeting

The MEC welcomed everyone present and informed the community that they must speak out about everything relating to houses, they must complain or praise the Department of Housing.

7.1 Deliberations

The issue of slow pace on housing delivery was raised, infrastructure in Ward 41 Mdantsane area. Houses in Hani Park were poorly built and they do not look like they are going last even ten years. Doorframes are falling apart.

There are people who are still waiting for houses since 1982. Disabled people were not receiving houses suitable for their condition. Their houses were not spacious enough and the roads were uneven for wheel chairs.

People who were moved to Senari Park raised their complaint about the area that there was no community hall, roads or an entertainment centre for their children. The question of people sharing in uMdantsane was a problem, and there is nothing being done about it. Residents were frustrated, especially those who have been saving for three years and already bought and owned land, about the waiting period for receiving government subsidy to build houses. The Nkonkobe Builders Association also had a problem of tenders that were given to big companies.

7.2 Responses

The MEC said there are many problems that hinder the progress of development. Ward Committees were affected. People sharing in uMdantsane will be considered. He further said that people will be moved to Postam where there were houses to be built, sewerage pipes will be extended to Postam. All municipalities were requested to submit a list of people with disabilities and the funds that have been approved so that they could be accommodated. There were other 300 rural areas that joined Buffalo City Municipality who will also receive all the necessary services.

Buffalo City is busy with the housing policy, and is hoping to complete it in September 2003. The issue of infrastructure, the elderly and the victims of HIV/Aids are also being considered. On the completion of the housing policy, the Department of Housing will advise on the way forward. In rural areas, Buffalo City will provide VIP toilets instead of normal toilets.

The Provincial Department of Housing said that Peoples Housing Process needs to be given priority on the delivery of houses although there is a huge backlog i.e. nationally and provincially. The MEC and the Department of Housing are aware of Nkonkobe Builders Association's concerns and this matter will be dealt with.

7.3 Recommendations

(1) Department must make a follow-up in the following projects that are not completed:

(a) Umzimkhulu Town Ext. 6
(b) Tyoksville Project only 100 completed out of 700.
(c) King Williams Town Housing Associations 420 houses of first project need to be unblocked.
(d) Projects have not yet been built - Santombe 450, Extension 7,- 341 and Extension 8 - 500.

(2) Many of the projects visited showed the non-adherence to norms and standards. The poor quality of housing units undermines the government's ability to deliver adequate houses.

The Committee urges the department to look at this matter as a matter of urgency. When NHBRC is engaged in this process, houses that we are referring to are:
(i) Umzimkhulu xt. 6, where doors and windows are built without lentels. Doors and walls are cracking.
(ii) Quality of houses in Tyoksville is very poor. Similarly to Chris Hani Village in Umdantsane and Hani Park.
(3) There is a need for clarity given of what is meat by a PHP process.
(4) The Committee has also noted in many projects there was no clear defined developer - projects being managed by an absentee Project Manager - this has to be resolved as a matter of urgency by he MEC, e.g. Tyoksville project Manager who is based in East London. Manager has to be located at the District Municipality.
(5) The Committee has noted with concern that subsidy given for house to e built at extension 6, deposited R800.00 - what happened to the rest of the subsidy - Committee wants an investigation to this matter.
(6) Housing Support Centres and Capacity Building programme for the community has to be set up by the department as a matter of emergency.
(7) Issues of land continue to hinder the housing delivery process. Communal Land Bill is seen as the only solution.