Draft Report of PC on Housing

Mayoral hearings on housing delivery, dated 18 June 2003.

The PC on Housing having held hearings on housing delivery on 2 April, 11 and 17 June 2003, reports as follows:

  1. Introduction
  2. The Committee extended an invitation to the following Mayors for written and oral submissions although some could not make it, the response was positive.

      1. Ethekwini Municipality, Cllr S N Dlamini and Mr C Pather, Head at Housing Department, written and oral submission.
      2. Unicity of Cape Town, Mr S Bedderson, Mr Basil Davidson, MS S Frost and Ms N Walker - written and oral submission.
      3. Great East Rand Metropolitan Municipality, Mr D Nkosi, Executive Mayor, written submission.
      4. JHB Greater Municipality, Mr S Maimela, Dir Housing and Mayoral Committee (MMC) S Ralegoma – written and oral submission.
      5. City of Tshwane, Member of Mayoral Committee, Mr SS Dlamini and Mr N Pillay - written and oral submission.
  3. Purpose
  4. According to Chapter seven (7) of the Constitution, one of the objectives of Local Government is to ensure that services and infrastructure provided to communities are sustainable. The main focus of the Committee included:

        1. Progress on housing delivery
        2. Sharing of experience and challenges facing the municipalities in provinces
        3. Progress report on the hostel development programme
        4. Management’s capacity towards Local Authorities
        5. Municipalities check and balances on government’s resources

C. Housing Delivery

1. Ethekwini Municipality

    1. Hostel Re-development programme
    1. Progress report on hostels

- The challenges faced in achieving this objective are overcrowding, poor maintenance, low rental collection, influx of rural people and lack of administration.

            1. Existing Hostels

(c) Capacity to Administer Additional Hostels

2. Local Authorities

(a) Existing Rental Housing

 

 

 

 

(b) Capacity to Administer additional rental stock

              1. New Housing
                • The motivation for accreditation of Ethekwini Municipality in terms of the Housing Act (Act 107 of 1997):
                  • The purpose for the Accreditation is in terms of Housing Act (Act 107 of 1997.
                  • The Ethekwinin Municipality complies with the definition of a municipality, as defined in Section 10b of the Local Government Transition Act, Act 209 of 1993, which is required for accreditation.
                  • The Municipality has a dedicated Housing Unit with significant capacity to deal with new housing development, as well as existing rental housing stock implemented prior to 1994.
                  • The municipality has shown a significant commitment to date, through the aggressive delivery of low-income housing and the establishment of a dedicated housing (Ethekwini Housing).
                  • The Municipality has formulated a Housing plan and programme, which has been informed by a number of initiatives, namely the Informal Settlement Programme, the vacant Land Audit and Housing Backlogs analysis.
                  • The Municipality has juristic authority over the municipal area as required.
                  • The municipality promotes and practices integrated development.
                  • The municipality has established a sub-committee of Council to deal specifically with housing matters. (Document available on request).
                  • EThekwini Municipality has a dedicated Housing Department with significant capacity to deal with new housing development.
                  • For efficient performance function and to meet the challenges facing the housing delivery process, funding will be required to meet the operational costs.
                      1. Municipality
                  • The eThekwini Municipality has various mechanism and stringent audit controls in place to ensure that the Department gets value for money. The mechanism in place includes technical teams such as Architectural and Building Services, Drainage and Engineering, Water, Electricity etc. Other areas of expertise would include Consultants, Audit, Accounting Department, etc.

                2. Johannesburg Greater Municipality (JHB)

                1. Hostel Redevelopment program

                (a) Progress report on hostels:

                • The re-development of thirteen (13) hostels creating 10 000 family units.
                • They enter into a service level agreement with JHB Social Housing Company to develop or convert and manage hostels in an effort to fast-track implementation and to gain strength and the capacity of the housing department to deliver.
                1. Report on Council owned stock
                • Sign of service delivery plan with region to ensure efficiency and effective management of Council owned housing properties.
                • Enter into service agreement with JOSCHO to eventually take over the management of Council owned stock from regions.
                • Implement market-related rental on all Council Housing Stock through a gradual process of phasing in market related rentals over a three-year period.
                • Regularizes illegal tenants in line with Council resolution with cut-off date for regularization being end of September 2003.

                (c) Progress on Council owned stock

                • Created 71 759 housing opportunities through selling and transferring of properties, water and sanitation, title deeds in lesser from township through these directives: -
                  • First directive housing 24 000 (former black township).
                  • 2nd directives housing 4 000 (former own affairs housing) fast track transfers through Africon.
                  • 3rd directive housing 43 759 (lesser formal township).
                  • Registration and verification of legal tenants in all housing units delivered was also fast track through Price Water house Coopers.
                        1. Social Housing/ Inner City and Special projects
                • Deliver 41 900 high-density housing opportunities in projects like Baralink, Cosmo City and Inner city better building.
                • Enter into a service agreement with JOSCHO to develop and manage most of projects.
                • Make use of the capacity of other role-players to deliver special projects, invest, refurbish and manage some the inner-city better building in line with Council resolution.
                • Make use of the services of Propcon to deal with land issues such as long term leases and land transfer.
                • Enter into service level agreement with Development Planning and Facilitation to provide technical support on housing projects and to assists with projects manage services.

                3. Tshwane Municipality

                1. People Housing Process (PHP)
                • The city of Tshwame established five regions for Housing Support Centres.
                • PHP centres will be the main centers with a number of satellite station for each project.
                • Main centers will provide – building material for satellite center -training on building related skill for satellite centers.
                1. People’s Housing Process (PHP) financial Support
                • The building of the centres is part of Public Works Programme and funded by the City of Tshwane.
                • There are job opportunities created in the building process.
                • The PHP centres will be donated to communities on completion.

                (c) Local Authorities

                  • As developers local authorities had the capacity to manage and to do as required by the constitution including:
                  • Partnership between the City of Tshwane Metro Municipality (CTMM) and Gauteng Department of Housing.
                  • Add capacity provided by Regional Professional Teams.
                  • The CTMM has its own housing department and aims to obtain accreditation in the near future.
                  • Housing provision budget amounts to:
                  • 2002/2003 financial year capital programme R 98 million.
                  • 2003/2004 financial year capital programme R 115 million

                (d) Rental Housing Stock

                  • On December 2001 Council approved a cost recovery programme over a period of five years.
                  • The Gauteng Housing Department has devolved most its rental housing stock to Council.
                  • Currently the North West housing Corporation administers all rental-housing units in the Western Part of Tshwane.
                  • There is a development of new rental housing by Housing Company of Tshwane.

                (e) Tshwane Municipality

                • There are technical teams that work on standard set by Service Delivery Department for top structure.
                • Tshwane municipality uses the Council building inspectors for quality assurance.
                • Land invasion devolved urban properties and undermine the urban formal land delivery system.

                (f) Hostel Redevelopment: strategies in place and progress

                • Tshwane Municipality has introduce designs that will enhance public space and encourage family living.
                • They also make provision for use of the emerging contractors, local labour and public participation.
                • Municipality provides social integration of communities with a history of hostile neighborhood
                • In Saulsville they converted 996 beds and 65 family units.
                • In Phase 1 block G, H converted 1004 beds and 152 family units
                • In Phase 1 block D, E, F converted 460 beds and 72 family units
                • In Soshanguve they converted 1388 beds and 516 family units
                • In Phase 1 block E2, G1, G they converted 872 beds and 154 family units
                • They have already converted 3976 beds to 617 family units in total.

                (g) Challenges in hostel redevelopment

                • Mamelodi project is pending on court decision.
                • R4 000 made available by Provincial Department of Housing and it is assumed that it will provide one family unit.
                • The aim of these projects is to de-stigmatise the hostels by upgrading from the dormitory living environment to family units.
                • There are four hostel upgrading project which will benefit 19 338 household.

                 

                 

                4. CITY OF CAPE TOWN

                (a) Peoples Housing Process (PHP)

                • In the City of Cape Town PHP’s were traditionally managed by the community
                • The council appointed a secondary support organization to manage the process and monitor the building quality.

                (b) Delivery approach

                • The beneficiaries contributed – skills, time and savings
                • Their houses bigger than RDP house
                • The PHP tends to be slow
                • It is costly to manage construction quality
                • The PHP suites top structured projects and is difficult in other projects

                (c) New Housing project

                • The Public Housing Directorate is involved in 60 projects which will bring 46 628 housing opportunities.
                • City of Cape Town is going to construct about 8000 houses per annum.
                • They developed about 3000 serviced sites per annum.
                • Implementing 12 projects that will accommodate people living in 36 informal settlements.
                • Cape Town Municipality is involved in 12 PHP projects that are to benefit 1504 households.
                • Supported ISLPs to build 30 000 houses of over the past 9 years.
                • Support Cape Town Community Housing Company on 3000 rent to buy units.

                (d) Hostel conversion progress

                • They have already converted 21 000 hostel bed-rooms
                • 825 family units have been developed
                • 500 units will be completed in September 2003
                • 8000 family units will be developed over the next ten years
                • The building maintenance and infrastructure improvements have taken place

                (e) Rental Stock

                • There 42 000 rental stock units

                 

                 

                 

                Management of existing Council Rental Stock

                The assets of the Municipality are maintained and repaired. The Municipality collects rent and manages arrears and it also has consultations and representatives to the tenants.

                Tenure transfer for some tenants

                The Municipality has a provision of pre and post transfer support to ensure sustainability. Municipality set up Local Housing Organisation and manages post transfer organizational support through service organisation.

                Development and Management of new Social Rental Stock

                Municipality develops Council Framework for facilitation of new social housing in well-located areas. Council facilitates access to well located land institutional subsidies in exchange for standard setting and some allocation rights.

                (f) Emergency Relief:

                • City of Cape Town have corporate risk reduction programme and contingency relief plan in place for possible flooding and emergency fire kit
                • Approximately 8000 households live in flood prone areas

                5. Nelson Mandela Metropolitan Municipality (NMMM)

                (a) Peoples Housing Process

                • The NMMM in Masangwanaville, community participating enhancement, houses are 45,49 and even 50m2.
                • Community was involved in the building of their own houses, community also participated in design, planning and they were trained in bricklaying.
                • There are support centres for training and five major centers have been constructed.
                • There are women constructors as well

                (b) Nelson Mandela Metropolitan Municipality Contributors

                - The Nelson Mandela Metro has contributed R6 000 per site adding to R16000 of government and was later reduced to R3 000

                - The Nelson Mandela Metro has technical and administrative support

                (d) Metro Houses

                • Metro house are 40m2- two bedroom, lounge and kitchen and they have an allowance of future extensions
                • Their materials and workmanship comply with NHBRC

                (e) Capacity and readiness to deliver

                • The Executive Mayor declared houses as a priority
                • They are in line with 2020 vision and they have 10 years housing plan
                • They have good provincial support and meet regularly as clusters
                • Mandela Metro in their integrated disciplines have technical support, town planning, Surveyors and Building Inspectors

                (f) Hostel re-development programme: Mathew Goniwe Hostel

                  1. Background
                    • Hostels were for single men under the Port Elizabeth Municipality
                    • They were overcrowded 2145 families also increased to 3000
                    • They were using communal toilets
                    • There was illegal electrical distribution
                    • Sanitation and cleaning services wee non-existent.
                      1. Action plan
                      • Metro established a committee
                      • Hostel was upgraded and it cost R11 000 000 and converted to 1200 units
                      • Transfers to the beneficiaries were effected.
                      1. Challenges
                    • There was an illegal occupation and de-densification.
                    • There was limited subsidy and there was a problem on influx control

                    (g) Retail Housing Stock –Uitenhage, KwaNobuhle and Port Elizabeth

                    • Mandela Metro has a total stock of 13 993
                    • The capital discount scheme in 1999 cost 7500.00 they sold 11 750 units and they transferred 10 757 title deeds and also have 993 pending registration

                    (h) Indigent Policy

                    • It was introduced in July 1997
                    • It has provided two schemes 0-R700pm 100% and R700-R800 50%
                    • Service credited rates, refuse or environmental water up to 12kl and sewerage
                    • In 2000/02 financial year households were assisted 48 172 and the total credits R40 584 000
                    • Approximately average account credits R70 per month

                     

                     

                    (a) Qualification criteria requirement for Indigent Policy

                      • Beneficiaries must earned maximum household income of R1500pm
                      • Must occupy the property and not own other property
                      • Prepaid meter with consumption not exceeding 15kwh monthly average
                      • Maximum municipal valuation
                    1. Benefits:
                      • Rates to the maximum value 100%
                      • Refuse and environment charge 100%
                      • Water 6kls 100%
                      • Sewerage to the maximum of the minimum 100%
                      • Free prepaid token for 50Kwh

                    D. Recommendations (Committee Members)

                      1. The Committee recommends that in the next presentation or a visit by the EThekwini Municipality, Mr Obed Mlaba, Executive Mayor, should form part of the delegation so that the Committee could pose serious concerns to him.
                      2. The issue of unavailability of land needs to be addressed.

                    E. Concluding Remarks

                    1. The Committee acknowledges the contribution of Ms K Pasiya (Stand-in Committee Secretary) in making this process a success and expresses its appreciation.