Report of the Portfolio Committee on Housing on a visit to Western Cape, dated 19 February 2003:

The Portfolio Committee on Housing, having undertaken a study Tour to the Western Cape on 4 and 5 February 2003, reports as follows:

The Committee undertook a study tour to Western Cape Province on 04– 05 February 2003. The delegation that went to Western Cape was under the leadership of Ms Z Kota (Chairperson), and consisted of members and three officials, Ms MN Buthelezi (ANC), Ms MP Coetzee – Kasper (ANC), Mr GD Schneemann (ANC), Ms SH Ntombela (ANC), Mr DC Mabena (ANC), Ms IC Ludwabe (ANC), Ms MM Ramakaba – Lesiea (ANC), Mr WM Skhosana (ANC), Ms JA Semple (DP), Mr BM Douglas (IFP), Mr C Herandien (NNP), Ms Anna – Maria Jojozi (Committee Secretary), Mr Sydney Makeleni (Committee Assistant) and Ms Eartha Scholtz (Secretary to Chairperson).

A. Objectives of the Tour
The Committee decided to embark on the provincial study tour to western Cape with the following objectives:
To fulfill its monitoring and oversight function by establishing the progress made on the "Housing the Nation" programmes.
To have exchange of views and experience with both the MEC, City Exco members on Housing Mayors of different areas, Local Ward Councils, Contractors and Developers.
To undertake a study tour to the various housing projects such as People’s Housing Process, Hostel Redevelopment Projects, Projects developed by women and other Inner City Developments.
To establish whether the units constructed are in line with the norms and standards stipulated in the Housing Policy.

The aim of the Government is for all South Africans to have permanent residential structures with secure tenure, where there will be privacy, water, adequate sanitary facilities, including waste disposal and domestic electricity supply. For the housing challenge to be met, the aim of the Government is to establish a sustainable housing process through a national housing strategy which will eventually enable all South Africans to secure housing within a safe and healthy environment and within viable communities in a manner which contributes to an intergrated society.

B. Observations
The Committee would like to commend MEC N Hangana and the members of the officials from the department for the support given to the Committee during the study tour and for the good work that they have done in ensuring that the lives of the poor are bettered. Homeless people have been provided with shelter and this was evident in the interaction that the delegation had with the different communities.

1. Introduction
The delegation visited five housing projects in two Municipality areas. The Committee visited the City of Cape Town and the Overstrand Municipality. MEC Hangana accompanied the delegation on both days. On the first day the delegation met with her in her office and she briefed the delegation on the goals and objectives of the Department in ensuring that the poorest of the poor are sheltered. The study tour included meetings with the different Mayors of the different Municipalities. The projects visited included visits to low income housing projects, Hostel projects, Middle – income housing project and People’s Housing Process. Officials from the Department accompanied the delegation.

2. Meeting with MEC N Hangana
In the meeting the MEC raised the following:

The role of the Department of Housing is to move towards the intergrated Housing Programme in the Western Cape Province, which locates people closer to the work places. The provision of houses will also assist in generating employment for the unemployed.

The Provincial Housing Plan indicates that each year 20 000 units have been built but 40 000 units need to be built to reduce the backlog caused by people who migrate to the Province. The movement of people into and out of the Western Cape is complex. People move for any number of reasons amongst others, seeking employment, escaping poverty, better education, better health facilities, housing, infrastructure, safety and a better environment for their children. The Department, in assessing the progress in addressing the housing problem in the Western Cape, must analyse the extent and nature of the housing shortage and then review progress.

During 2001/2002 financial year, the Department succeeded in spending its full conditional grant of R325, 8 million for housing and created 19 706 housing opportunities. By December 2002, the Department had spent up to R61 million. The Intergrated Service Land Project, which was initiated by the Department in 1992, has delivered more than 25 000 additional housing opportunities. This project could be provided in an intergrated way by also providing schools, community and sport facilities and at the same time introducing much needed capacity building programmes that will be the beneficial to communities in the project area.

The Department is at present investigating strategies that will enable consider funding and partnerships, for the rental stock delivery outside the allocated budget.

The Department has set the following key targets and objectives for the next financial year.
A review of the organisational structure in line with the changing environment.
The Department is going to establish a well – trained and developed personnel corps. This will be done with the capacity building grant for line functional training development.

The Department is going to ensure that there is sound financial management and control measures are already put in place to minimise fraud and corruption with regard to housing funds.

Subsidies will be provided to facilitate the delivery of houses.
10 000 Project Linked Subsidies
1 500 Individual Credit – linked Subsidies
2 000 People’s Housing Process
3 000 Consolidation Subsidies
1 000 Institutional Subsidies
400 Relocation Assistance
100 Rural Subsidies
1 000 Savings subsidies in respect of 3 hostels

Promote and facilitate capacity building of municipal officials
A firm of consultants has been appointed to assist the MEC with the speeding up of housing delivery in the Province. There is land audit in the Western Cape.
The MEC will bring together all Housing Institutions in an attempt to speed up the housing delivery and that of different programmes. The Housing Programme will no t be sustainable unless it is better linked to a Provincial Development Strategy and should develop options to achieve that aim.

Size of Housing Units
National norms and standards stipulate that no house less than 30 m2 will be built. This is vigorously enforced in Western Cape with the result that proposals for housing projects, where houses less than 30 m2 will be built are not even considered.

Challenges facing the Department
When the Government took over in 1994, there were no specifications in terms of contracts. Some structures that were built by developers were as small as 18 – 20 m2. This was discussed with the developers, but the Department could not take them to Court, as the contracts signed by developers had no specifications. From 1999 though, the quality of houses has dramatically changed.

Land availability remains a challenge. Various land audits exist that need to be consolidated. Devolving of land ownership to local governments is taking long, mainly due to lack of capacity in both provincial and local governments to implement this. Indications are that sufficient land allocation within IDP’s is not taking place.

Local Authorities face capacity constraints in the development, planning and management of housing projects. Once they are capacitated they will be able to operate efficiently and effectively.

Hostel Redevelopment Programme - Langa Hostel
Background
This programme originated from an initiative by the hostel residents who organised themselves in the form of the Hostel Dwellers A ssociation. The Hostel Dwellers Association established Umzamo Development Project, which is a section 21 company to drive the process to redevelop the hostels into family units. The programme is based in Langa, Gugulethu and Nyanga and covers the hostel buildings owned by the Cape Town City Council. There are also hostels in the area that were built by private sector companies on land leased from the City Council. The programme to address these problems in these hostels is known as the Grey Sector Hostels Programme. No delivery has happened in this programme, tender documents are being prepared by the Department for the first two projects.

The norm in the hostels is to have two beds per room, and in many instances beds end up accommodating a whole family. To solve this, the City has to come up with a policy to reduce occupation levels to a single tenant per room. There is also a tendency in the hostels to spontaneously implement this policy without seeking official sanction.

The redevelopment policy aims to accommodate 8 000 families in the redevelopment programme. All city – owned buildings in the areas are to be redeveloped with the possible exception of the old flats block in Langa. In addition to converting existing buildings, new buildings are constructed in available open spaces. The programme should run at least another eight years.

Funding is received from the Provincial Housing Development Board in the form of Hostels Redevelopment Scheme subsidies. This is supplemented by loans received from the City Council. The loans are paid back in the form of rent.

Allocations of people to redevelop units are facilitated by staff employed by the City Council. They work in consultation with the residents.

Three phases of development have taken place, a Langa Show Unit Phase, a Pilot Phase and the current
Phase 2. Phase 2 was broken into an A and B Phase. Phase 2A was well advanced when the contractor ran into difficulties and abandoned the work.

Observations
There are 7 shops in the ground level and the subsidy does not cover for its development. R400 000 was received from the city to develop the shops.

There are trees planted by the city in between the flats and the community has to look after them.
The flats have one bedroom, lounge and a kitchen and a bathroom with a shower and a toilet. There is only one water tap in the flat. The project has improved the lives of many people as electricity, water taps and water borne sewage were installed.

Challenges
Tenants who refuse or cannot afford to pay rent in their old flats will not be allowed to occupy new flats.
Rent pensioners are not aware of where to report their status.

Recommendations
Communication between residents and the Unicity has to be improved.
The city needs to be central in resolving the issue of tenants who are unable to pay rent, namely the indigence policy.
Heinz Park 208 Housing Project

Heinz park project is a Housing project located in Phillipi next to the new Police Training Academy and the R 300 national road. The project is part of the Intergrated Services Land Project. Many of the beneficiaries are not employed and come from different cultural backgrounds. There are 208 families which formed part of the Heinz Park People’s Housing Association. The Heinz Park Association was the developer whilst the City Council acted as Account Administrators, the Technical Advisors and the Development Facilitators. The Heinz Park project was approved in year 2000 with the construction of the first houses in November 2000.

Size of units
The units range from 28 m2 and 48 m2. There are also double storey units which are of 44 m2.

Costs
The construction costs for each household range from R 500.00 – R700.00. 35 housing units have been completed.

Implementation
The management of the support office and construction was the responsibility of the Support Centre Staff. Training was provided by the Development Action Group. Building material was ordered in bulk and delivered directly to the Support Centre for storage. Upon arrival the Support Office Staff sign for it and the material would be delivered to beneficiaries.

Observations
The houses have, one bedrooms, a lounge, a kitchen and a bathroom with a toilet and bathtub and were built by women. Each house has prepaid electricity, waterborne sewerage and a water tap and zinc is used for roofing. Some beneficiaries raised additional funds to extend the houses.

Challenges
A number of challenges were faced in the project and these led to the immediate stoppage of construction whilst attempts were being made to resolve them.
Delays in construction have been experienced due to non-payment of builders.
Bulk delivery of material to the Housing Support Centre instead of delivering the material to the beneficiaries led to the theft of the material.
There was lack of administrative skills from the administrative staff as a result no credit or debit documents were signed when there was exchange of the building material.
There was a lack of delivery control mechanisms to ensure that material is ordered and delivered to the intended beneficiaries. This result in some material being stolen.
Beneficiaries refused to pay builders after completing the work and this led to months delays as builders refused to continue with building the houses. The beneficiaries were demanding that payments be derived from their subsidies.

Recommendations
Material should not be delivered before the actual construction of houses commences.
Project should be inspected during construction so as to enable builders to rectify structural defects.
It should be established from the Western Cape Government whether the builders were not paid from the subsidies and if not why was this a liability to beneficiaries.

Mornwood People’s Housing Project - Brown’s farm
Mornwood People’s Housing Project is situated in Brown’s farm. It is part of 1 100 housing development in the area through the ISLP Programme. The project was approved on 20 August 2002 under the New Housing guideline which came into effect in April 2002. Mornwood Association is acting as the developer whilst the city is acting as the Account Administrators, Technical Advisors and Facilitators.

Size of Units
Construction of the first 4 houses was done whilst the project was still awaiting approval from the Board. The four units built range from 37m2 to 46m2. Currently there are 39 units that are being built and the construction commenced in November 2002. The houses do not have a bathroom but have a toilet and a tap outside.

Costs
An amount of R 15 524.00 per beneficiary was approved for the top structure with additional contributions in a form of savings and loans. Within 3 months of savings, the group had R 30 000.00 into their account. The beneficiaries contribute a minimum of R 700.00 for the costs of the builders.
Construction of the first 4 houses was done whilst the project was still awaiting for approval from the board due to the pressure from the members.

Observations
The houses have 2 bedrooms, a lounge, kitchen and an outside toilet without a bath or a shower. There is no bathroom in the houses. There is only one water tap which is attached to the toilet. The houses have two outside doors but there is no kitchen door.

Challenges
The supplier of the building material has not been paid by the Unicity. The agreement signed in June 2002, was that as soon as the project is approved, payment for the show houses would be made. He has now decided to stop supplying the material.

Recommendations
The Department has to find out from the Unicity why the supplier has not been paid as per the agreement signed in June 2002, what were the cause of the delay and how many housing units are outstanding and when are they going to be completed.

Delft Central
Delf Central is the largest low – cost housing project in the Unicity. A decision was taken to involve a local builder to construct the houses. More than 1 000 local people were trained to improve their skills in the construction of houses. Over 300 women were employed in the project. The project was approved from the previous budget for 30 m2 houses to be built. Beneficiaries in the area are from the informal settlements of Langa, Gugulethu and Nyanga, Joe Slovo, KTC, Black City and others. 50 % of the beneficiaries have been in the waiting list since 1993. The project commenced in 2001 and 30 houses were built almost everyday. On 8 November 2002, MEC Hangana handed over 2000 houses to beneficiaries. The construction of houses is expected to be complete by July 2003.
The houses are not more than five minutes walk from the public transport, and community facilities such as crèches, churches, etc.

Observations
Some of the houses built have one door leading outside and some are attached. Others have enough space for beneficiaries to extend them. The houses are open plan, one room used as a bedroom, lounge and a kitchen. There are structural defects that were observed as some of the walls are cracking. The sewage drain is attached to the lounge and should the drain leak, the sewage would leak down the road. This represents a health hazard to the resident.

Challenges
Some of the residents were complaining that on dusty day, dust filters through the houses and that makes it impossible for them to live in them.

Recommendations
The Unicity should revisit the area and make its observation concerning the structural defects raised by the Portfolio Committee including health standard of these houses.
The Committee sees Delft as part of its oversight work in progress. The Committee has to continue to interact with relevant stakeholders on the Delft Project.
The quality of work done and the type of housing units built left much to be desired.

Nooidgedacht - Upgrading of Flats
In 1996, the former Cape Town Municipality Council (CMC) approved an allocation of R3,5 million for health and safety maintenance of the flats in the Elsies River Area. A total of 178 block of flats was to benefit from the upgrading and included the areas of Uitsig, Nooidgedacht, The Range, Avonwood, Leonsdale and Adriaanse. In 1997, the City of Tygerberg made funds available for the upgrading of flats in Nooitgedacht.

The total budget allocation for the upgrading was R 7 973 160.00.
In order to upgrade each individual flat successfully, it was necessary for the tenant to vacate the unit. A temporary housing complex consisting of 8 single houses was developed in Nooitgedacht to accommodate the tenants while upgrading was in progress. After the upgrading the temporary accommodation would be sold by public tender.

Flat committees were formed and regular monthly meetings held when project related problems were discussed. The meetings were well attended by the tenants, Coucillors and the Member of Parliament, Mr Nic Isaacs whose constituency is in the area. The project commenced in March 1998and was completed in March 2001.

Programme for Upgrading
Walls, concrete ceilings and floors were cleaned.
Floor were stripped and replaced.
Wash basins with hot and cold water taps were installed in the bathrooms.
Front doors were replaced.
Electric wiring and distribution boxes inside the flats were upgraded.
Paint from the windows and door frames were stripped
Broken window panes were replaced
All latches, handles, and locks were serviced and repaired.
The interior of the buildings was painted with a base coat on two layers of an approved anti – fungus paint.
Geysers were installed in certain flats.

Exterior Programme
The damaged fences and walls were removed.
Sewers and storm drains were repaired.
Sundry areas were upgraded.
A refuse building was built.
The appearance of the building has been improved tremendously.

Challenges
The residents are complaining that they cannot afford to pay the rent which is R175.00 a month as they are unemployed. Most of the residents are in arrears with their rent.
The residents complained that the walls are cracking, Tiles after the upgrading are peeling off and paint on the walls is peeling off. Geysers have not been installed. The toilet pots are broken and that makes it impossible for the resident to use them.
The residents do not know who their Local Councillor is.

Recommendations
Once again the issue of residents who cannot afford to pay rent because of prorvety needs to be addressed. The City is working on the policy of indigenous, but those who can afford must be made to pay for their services.

Meeting with the Overstrand Municipality
The Mayor welcomed the delegation and gave a brief background of the projects under Overstrand Municipality and highlighted the challenges they have experienced as follows:
The Overstrand Municipality has a problem of large informal settlements. A number of housing projects were taken on, with the Zwelihle project of 1 578 houses in 2001.

Special attention to housing is given by the Municipality and the Municipality utilise15 % of its budget for housing projects. 12 projects amounting to R15,6 million have been constructed and the major one is a housing project of 350 homes in Gansbaai and the hostel project in Zwelihle.
The Overstrand Municipality hopes to continue the partnership with the National and Provincial Government.

Zwelihle – Phase 11
Like many areas, the Western Cape has a problem of housing. Beginning 1991 there were about 15 000 – 18 000 people staying in Zwelihle. There were no houses built further.
The houses were constructed by the community, 90 % of the people involved in constructing the houses were from the community and 40% of them were women. The area was initially a squatter camp and toilets were built on sites before enough funding was accessed to build the houses.

Challenges
The area has a lot of rocks that have to be removed before construction of houses can take place. Removing them cost a lot of money.
The project was delayed and continued after several negotiations.

Size of Units
The size of the units are 28 m2 .

Observations
The houses have one room used as a bedroom, lounge and a kitchen and some houses have toilets and some do not. Water taps are o nly installed outside and there are none inside the houses. There is prepaid electricity installed in all houses and only one door. The yards of the houses are big and allow beneficiaries to extend their houses.

Challenges
There are electricity cables that are visible on top of the houses and are a health hazard to the community.
The community is not happy with the outside toilets and would prefer to have toilets built inside.
The community was forced to pay for water used by the builders when houses were constructed.

Recommendations
The electricity cables are dangerous to the community and should be put under the ground.
A second door is needed to be installed, a single door is a security risk.
The project as it stands is developer driven. It is not clear how the Community participation is taking place. The matter has to be taken up with the Overstrand Municipality.
Communities should be consulted before houses are built.

Hostel Upgrading and Redevelopment Project
The project to upgrade and redevelop the project has been approved by the MEC but construction has not commenced yet.

Observations
The hostel is divided into nine small units and each unit is used as a bedroom, lounge and a kitchen. The hostel will be renovated into 200 family units but the plan has not been approved yet. The units will be of rental stock.

Recommendations
A clean – up operation is needed.
Community participation in this hostel development is important and Councillors should be well informed of this development.

Challenges
There are no water taps in the hostel and the residents have to fetch water 2 km away from the hostel.
In the passage of the hostel, there are cables running loose.
The room used as a bathroom and toilet is dilapidated with broken windows and the residents have to relieve themselves in the veld.
The roofs leak when there is rain and the hostel is not fenced.
The yard is very dirty and not conducive for people to live in.

Rental Stock
Most of the beneficiaries used to stay in the hostel and were moved to the area.

Size of Units
The houses are 36m2 with no ceiling have 2 bedrooms, an inside toilet with a tap and a basin, kitchen with a water tap and a lounge. They are electrified with waterborne sewage.

Observations
Some of the recently constructed houses are open plan where one room is used as a kitchen, bedroom and lounge. The bathroom has no bathtub or shower. Not all of the houses are electrified and fenced These houses look incomplete and are not partitioned with only one door.
The community though is happy with the houses because they were initially staying in shacks.

Challenges
There are electric cables that are visible on top of the houses.

Recommendations
The Houses when built, should be partitioned.
A second door should be installed in all houses.

Kleinmond
The project was completed in 1999. There are 695 people who are in the waiting list for houses.

Size of units
The size of the units range from 27 m2 – 28 m 2.

Community Involvement
The community was involved in the construction of the houses and a fieldworker was employed from the community. The Local Authority played an important role in the ensuring that the community was involved in the construction of houses.

Observations
The houses have two bedrooms, lounge and a bathroom with a toilet and basin, prepaid electricity and waterborne sewage. There is only one door in all houses and the yards are big to enable the beneficiaries to extend the houses.
Some of the houses are renovated.

Challenges
Some people own more that one subsidy house. Some own them in other provinces.

Comments
Despite the challenges that are faced by the Province, delivery of houses is being sped up. Houses are being built and new housing projects are being started. It is obvious that the Department of Housing in the province is committed in ensuring that the lives of the poor are bettered. The housing backlog in the province is huge, and it will take a lot of time to address. Presently, the province’s target is 20 000 units to be built per year. To address the backlog, 40 000 units are needed to be built every year.

Recommendations
The report has to be sent to the MEC and a follow up on matters arisen from the visit will be made so as to resolve the outstanding issues, especially the issue of beneficiaries with two subsidies when there is national data base.

Participants
MEC Nomatyala Hangana; Provincial Government
Mr John Africa; Head of Department; Department of Housing
Councillor Ntombende Landingwe; Chairperson : Portfolio Committee on Housing
Councillor Anton Fuchs; Deputy Chairperson; Portfolio Committee on Housing
Mr Seymon Bedderson; Director; Public Housing
Mr Charles Croeser; Project Manager - Hostel Upgrades
Mr Paul Le Roux; Project Manager – Browns Farm
Mr Xolani Tshaka; Project Manager – Peoples Housing Programme
Mr Herman Steyn; Project Manager; Delft Central
Mr Willem Koopman;Project Manager; Nooitgedacht Upgrades
Mr Willy Smith; Mayor; Overstrand Municipality
Mr Jan Koekermoer; Municipal Manager; Overstrand Municipality
Ms Marilyn Van Rynsburg; Speaker; Overstrand Municipality
Mr Vereld Herbert; Chairperson; Housing; Overstrand Municipality
Mr Makhaya Ponoane; Ward 6 Councillor; Overstrand Municipality
Mr Thamie Ponie; Chairperson; SANCO
Mr Godfrey Ponaone; Deputy Chairperson; SANCO
Mr Makhalima; Secretary; SANCO
Mr Funeka Khohlakala; Ward 7 Councillor; Overstrand Municipality
Ms Ellenor Barry; Ward 9 Councillor; Overstrand Municipality
Mr Rodricks Williams; Housing Manager; Overstrand Municipality
Mr Feziwe Ngquba; Housing Facilitator; Cape Town Administration
Mr Michael Kosile; Community Liason Officer; Edel Construction
Mr Meter Bosson; Architect; Architects Associates
Mr B Mqokolo; Chairperson; LNG
Mr Elliott Sylvester; Journalist; Cape Argus
Mr Deon Isaacs; Chief of Staff; Office of the Housing MEC
Mr Bheki Nkonyane; Spokesperson; Office of the Housing MEC
Mr Andreas Fourie; Director: Professional and Technical Services
Mr Anton Fuchs; Councillor: Deputy Chairperson: Housing; City of Cape Town
Mr Gawa Samuels; Exco Member; City of Housing
Mr MW Joka; Project Facilitator; Cape Town City Council
Mr M Sontshantsha; Community Liason Officer; Gugulethu Project

Report to be considered.