1. COMMITTEE: Portfolio Committee on Housing

1. Chairperson: Ms ZA Kota

Period: 13 March 2002 to date

 

Mr SD Montsitsi was elected as Acting Chairperson for the meeting held on 10 September 2003, while Ms Z A Kota was on sick leave.

1.2 CHAIRPERSON’S OVERVIEW:

During the past year, the Committee has been able to identify a number of challenges facing the housing delivery process. Fortunate enough we have tried to bring together relevant stakeholders to address these issues including Izimbizo we had in the Eastern Cape. We have worked hand in hand with the Ministry and the Department of Housing during this period.

The delivery of housing has brought back dignity to the poorest of the poor especially women who are now property owners for the first time in their lives. The Committee committed itself in monitoring the implementation of the housing policy especially regarding the norms and standards of the housing units that had been produced as well as ensuring the empowerment of emerging Contractors and women Contractors.

Our participation in the World Summit through the Round Table organised by the Department was an important highlight of our work.

1.3 VISION: The vision of the Committee is to ensure that all South Africans are housed in sustainable human settlements.

4. MISSION: According to the Constitution, everyone has the right to have access to housing, the mission of the Committee is to ensure by establishing and facilitating, through legislation, a process that will ensure that all South African have access to adequate housing.
5. OBJECTIVES: As part of its oversight function, the Committee monitors the implementation of housing delivery by all levels of Government within the Department of Housing. It monitors the activities of house building industry so that they are in line with the Constitution and different laws that have been passed. In addition the Committee monitors the adherence to policy by all stakeholders such as the norms and standards that are set out in the Housing Code. Lastly, the Committee’s oversight function includes monitoring Government budget spending by the National and Provincial Departments.
6. LIST OF ENTITIES OVERSEEN BY THE COMMITTEE:

a) National Housing Finance Corporation (NHFC)

The NHFC funds intermediary institutions who provide affordable housing finance at the retail level. Funding is dependant on the submission and approval of business plans for each proposal.

The NHFC operates in all 9 provinces through its funding intermediaries. Some of the intermediaries have branches in a number of provinces and others are based in a single province. Funding is thus not automatically given to or withheld from any province, but depends on the approval of viable proposals from funding intermediaries, irrespective of what province they function in.

b) National Urban Construction and Housing Agency (NURCHA)

NURCHA provides guarantees to banks to encourage them to make bridging finance loans available to Developers. In order for Developers to qualify for assistance, a business plan for each project must be submitted for consideration. Only those projects which are considered to be viable are funded.

NURCHA operates in all 9 provinces of the Republic. NURCHA’s involvement in the provinces depends on the submission and approval of viable projects by developers in each province, and thus does not relate to the province, but to the project. As far as the savings scheme is concerned, NURCHA is only involved in those provinces where banks are prepared to be involved and to date these are the Western Cape, Eastern Cape, KwaZulu Natal, Gauteng and Mpumalanga.

c) Servcon Housing Solutions (SERVCON)

Servcon operates in all nine (9) provinces. Servcon is a joint venture between the Government as represented by the Departments of Housing, Safety and Security, Justice, National Treasury and the Banking Council. Servcon, together with Thubelitsha Homes was established by the Government, with a specific mandate to procure the alternative houses for Servcon clients. Servcon’s role is to deal with the properties repossessed by the Banks in low-income communities. Servcon was restructured and received a new mandate from Banks and Government on 1 April 1998. Servcon’s mandate is to normalise the situation and specifically to dispose of the portfolio over an 8 year period from 1 April 1998 to 31 March 2006. Four years have now been completed under the new dispensation. The total of 33 306 properties in the Servcon portfolio are spread throughout all nine (9) provinces.

4. Social Housing Foundation (SHF)

The SHF operates in all 9 provinces. It is a section 21 Company established in 1997. It was given mandate by the Government to develop and build capacity for social housing institutions and to develop a policy framework for the housing sector. In some provinces, the SHF already has projects which have started, and in others they are still in the process of raising awareness and building capacity to promote social housing in provinces, which is a precursor to the approval of projects.

5. People’s Housing Partnership Trust (PHPT)

The PHPT operates in all nine (9) provinces. Provincial units of PHP co-ordinators have been established in each province, as the responsibility of either the MEC, the Head of the Department or the Capacity Building Section of the Provincial Government. The Department of Housing established the People’s Housing Partnership Trust (PHPT) in June 1997 to implement a capacitation programme to develop capacity at all levels of Government, NGO’s CBOs and communities to support the People’s Housing Process. PHPT’s mission is to build at the capacity at provincial level, municipality level, NGO’s, CBO’s, tribal authorities, support organisations and other organisations that can potentially support the people’s housing process by enabling them to provide support services to beneficiaries in both rural and urban settings.

6. Thubelisha Homes

Thubelisha is a Section 21 company which was established jointly by Government (Department of Housing) and Servcon Housing Solutions (PTY) LTD. It is governed by an independent Board of Directors. Thubelisha was funded by a grant that was established by Government (R50 million) and relocation assistance from Provincial Housing Department. Thubelisha started its operations in July 1999. End August 2001, Thubelisha still had 49 500 000 and has built 17 000 houses .

Thubelisha provides rightsizing stock for properties in the Servcon portfolio. The primary responsibility of Thubelisha is to provide alternative, affordable accommodation to households on the Servcon portfolio who have signed rightsizing agreements with Servcon and complied with their interim payment arrangements. Thubelisha operates in all provinces where Servcon operates. A significant portion of the rightsizing portfolio and consequently operational activity is concentrated in Gauteng.

7. National Home Builders Registration Council (NHBRC)

The NHBRC was established in terms of national legislation, it operates in all provinces. It was established in 1995 to protect home buyers against so called fly – by night builders. It is an independent, non – profit organisation which achieved statutory status in 1999 through the Housing Consumer Protection Measures Act. It last operated as a Section 21 Company on 28 February 2001. The responsibility of the Council is to regulate the home - builders industry. It protects housing consumers and strives to satisfy the needs of all South African Housing Consumers and Home - Builders. Its mission is to protect housing consumers by establishing, implementing and regulating quality standards in the home building industry.

 

8. Rural Housing Loan Fund (RHLF)

1. SUPPORT:

2.1 Control Committee Secretary: Nontuthuzelo Nonkelela

2.3 Committee Assistant: Sydney Makeleni

2.4 Secretary to Chairperson: Eartha Scholtz

5. Researcher (Research Unit):
6. Legal Support: None

Ms R M Southgate (ATC No.29-2003 19 March 2003)

Mr B W Dlhamini alt (ATC No.54-2003 14 May 2003)

Mr T Shabalala alt (ATC No.54-2003 14 May 2003)

D G Mkono alt (ATC No. 56-2003 16 May 2003)

Mr P Sithole (ATC Tuesday 2 September 2003)

4. DELIBERATIONS (Major activities, accomplishment, etc.)

4.1 Legislation dealt with

19 February 2003 Report of Tour to Western Cape

19 March 2003 Briefing by the Western Cape Provincial Department on Information Settlement

25 March 2003 Briefing by the Department of Housing on Budget Vote 29

26 March 2003 Public Hearings on Budget Vote 29

02 April 2002 Public Hearings on Budget Vote 29

09 April 2003 Briefing by Ethekwini Municipality on Housing Delivery

16 April 2003 Briefing by Energy Efficient Housing Design

11 June 2003 Briefing by City of Joburg, City of Tshwane and Uni-City Municipalities on Housing Delivery

17 June 2003 Briefing by Nelson Mandela Metropolitan Municipality on Housing Delivery

26 November 2003 Consideration of Annual Report 2003, Izimbizo Report, Mayoral Hearings Report

5. REPORTS TABLED

1. Report of the Western Cape Visit was published in the ATC on 25 September 2003.

6. APPEARANCES BEFORE COMMITTEE

7. REVIEW / ANALYSIS / SCRUTINY

8. TRAINING

(a) National Visits

11. NATIONAL AND INTERNATIONAL STUDY TOURS

11.1 National

The Committee decided to embark on the provincial study tour and to conduct Izimbizo in the Eastern Cape with the objectives to fulfill its monitoring and oversight function. This year the Committee visited one province. The aim was to establish progress made on "Housing Delivery", to have exchange of views with the legislature and hear the feelings of the people on the ground about the housing projects.

a) Eastern Cape

The Committee appreciates the valuable support given during this visit by the Public Education Unit, which resulted in the resounding success of the visit. The following members of this Unit accompanied the Committee:

1. Mr T Albertus - Manager: Public Education Office
2. Mr J Watson - Control Project Co-Ordinator
3. Ms L Rhoda - Project Co-Ordinator
4. Ms V Carelse - Project Co-Ordinator
5. Ms M Ntshangase - Project Co-Ordinator
6. Ms S Sithole - Project Co-Ordinator

11.2 International Visits

a) International: Nil

• The Chairperson attended MINMEC meeting held in Pretoria on 16 March 2003, Estimated Total Cost = R4 773.00
• The Chairperson attended MINMEC meeting held in Pretoria on 16 May 2003, Estimated Total Cost = R4 773.00
• The Committee has requested contingency fund for fuel during Eastern Cape trip an amount of R3000.00
• The Chairperson attended MINMEC meeting held in Pretoria on 16 August 2003, Estimated Total Cost = R4 773.00
• The Committee has requested for the bouquet and the get well-card costs for the Chairperson of the Committee to be borne by Parliament from the Committee’s budget.

15. RECORDINGS OF ORAL EVIDENCE (ON THE RESOLUTION OF THE COMMITTEE): ONE

There was no legislation this year for the Committee.

17. FORMAL ADOPTION OF ANNUAL REPORT BY THE COMMITTEE

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COMMITTEE SECRETARY DATE

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CONTROL COMMITTEE SECRETARY DATE

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COMMITTEE CHAIRPERSON DATE