A COMPREHENSIVE PLAN FOR THE CREATION OF SUSTAINABLE HUMAN SETTLEMENTS
1. Objective to provide an overview of the comprehensive plan for the development of integrated and sustainable human settlements
2. Introduction
- The comprehensive plan entails a multi dimensional housing development approach
- It is needs driven
- It will introduce new programmes
- It will also result in the adjustment of some existing programmes
- It is aligned with current Government priorities
- It is the result of an extensive policy and sector evaluation process in which provinces municipalities and the housing sector participated - The plan will require substantial funding
- In the short term, reprioritisation of uncommitted funds will be necessary
- The Plan is based on the principle of a partnership in Co operative governance
- Government has committed itself to the targets already announced
3. Expanding scope of the housing mandate
New subsidy intervention for the income bracket R3501 to R 7000 beneficiaries: This will- - Provide support to currently under serviced income category above current cut-off level of the housing subsidy
- Interventions include a saving support programme and deposit requirement assistance to obtain mortgage loans and
- Rental options such as Medium Density housing designed to included persons in this income band & others
New Housing Subsidy Interventions: The Collapsing of the Subsidy Income categories
- Categories R1500 to R3500: Beneficiaries will receive a standard subsidy of R25 800,00
- The indigent categories will be extended to include persons earning below R1500 pm and they will receive R28 279,00 or equal to the new 2005 product price
- Current implementation procedures will apply Implementation from 1 April 2005
4. Enhancing the role of the private sector
- Collapsing of subsidy bands should induce established companies back to subsidy market
- More beneficiaries will be able to access credit
- Funding for Social Housing through Public Private Partnerships & Special Purpose Vehicles
- Loss limit insurance, fixed interest rate products, alternatives to mortgage loans linked to savings
- Monitoring lending trends and enforcing the Financial Services Charter through Reserve Bank
5. Enhancing delivery capacity
- Establishment of Operational Capital Budget @ 2.5%of project costs (OPSCAP)
- Steamlining procedures for administration and payment of contractors
- Employer assisted housing initiatives targeting initially large employers, mining houses, Public service, trade unions
6. Creating linkages between primary and secondary market
- Supporting individual housing demand-Individual subsidies for current properties Removing barriers to housing trade - Pre-emptive clause-reduce period from 8 to 5 years
- Focusing on the local level-building capacity of municipalities
- Enhancing access to title through Discount Benefit Scheme, opening township registers and fast tracking the operations of the Deeds offices
7. From housing to sustainable settlements
- Context of National Spatial Development Perspective (NSDP) and the Draft National Urban Strategy (2004)
- Integrated planning for human settlements across three spheres of government
- Definition -" Well managed settlements in which economic growth and social development are in balance with the carrying capacity of the natural system on which they depend for their existence and result in integrated sustainable development, wealth creation, poverty alleviation and equity."
8. Progressive informal settlement upgrading
- Upgrading of informal settlement on a community or area wide basis, with re-occupation prevention strategies and protection of vacated land
- Phased development process including surveying, emergency services, basic permanent services provision and housing development in phase 4
- Housing development to cover variety of options including normal housing, medium density options, rental housing comprising communal housing, social housing and transitional housing
9. Promoting densification and integration
- Densification through planning guidelines, property taxation, zoning, subdivision, land purchase
- Zoning conditions, e g. 20% low cost housing requirement in all residential multi unit developments
- Proposing financial incentives for densification and disincentives for promoting urban sprawl
- Phasing in mixed development and managing perceptions of property devaluation and NIMBYism
10. Enhancing location of new housing projects
- Accessing well located state owned, public and parastatal land, Acquisition of well located private land for housing development to spearhead integration and densification
- Fiscal incentives for development of well located land
Guidelines for land acquisition by Dec 2004, Implementation April 2005
11. Urban renewal and inner city regeneration
- Affordable Inner City Housing through inner city regeneration
- Acquisition of residential and non residential buildings for upgrading and conversion for residential use
- Linkages with municipal redevelopment projects & urban development zone tax incentives
- Increasing effective demand through incentive to above R3 500 income group and stimulation of secondary market by re-introduction a demand driven individual subsidies
12. Developing social and economic amenities
- Funding and construction of social and economic infrastructure through multi purpose cluster concept for primary facilities as interim measure
- Promote the development of secondary facilities through residential development permits
- Maintenance and operation by municipalities and NGOs/CBOs active in those communities
- Funding will only be for MTEF period to allow for budget reprioritisation within MIG
13. Enhancing housing product
- Enhancing settlement design to be enforced through residential planning guidelines and development permits
- Enhancing housing design through traditional and alternative building technology
- Changing face of "RDP" house through designs and the promotion of innovation
- Addressing quality through NHBRC audit and ensuring compliance with building plan and township establishment requirements
14. Rental housing programme
- Providing a wide range of rental housing options, tenure options to suit various needs
- Promote medium density housing through the provision of hierarchy of affordable housing, communal housing, transitional housing, revised hostels programme, and regulate backyard rental housing
- Ensure efficient management through social housing programme
- Partnerships with municipalities and section 21 companies
15. Social (medium density) housing
- Implementation of social housing and medium density development
- New funding mechanism
- Establish sound institutional management capacity
- Building Institutional capacity through National Accreditation Institution
- EU partnership to start capacity building for social housing institutions
16. Rural housing
- Rural housing programme focus on land settlement, tenure security & basic services provision, support through People's Housing Process
- Farm-worker housing through on-farm and off farm agri-villages and off farm rural settlements
- Policy and programme in partnership with Department of Labour, Agriculture and Land Affairs
17. Housing finance - Engagement in defining low cost housing component of Financial Services Charter to provide access to development financing and investment in low cost housing
- Ensure availability of affordable credit through risk mitigation, sustaining value of collateral & overcoming restriction to access
- Consumer education, counseling and training
- Explore tax incentives to attract established construction sector back to low cost housing
- Cross subsidisation through mixed income, mixed use development
- Stimulation of secondary housing market
18. Transversal programmes - Black economic empowerment through preferential procurement
- Emerging contractor support programme
- Women empowerment through targeted quota for projects
- Targeted access for disabled and special subsidy application for modification for accessibility
- Youth participation through youth construction brigades to support all programmes including Letsema campaign
19. Institutional arrangements within government
- Inter- Ministerial Committee on Integrated Sustainable Human Settlements with oversight role
- Redefinition 'Partnership of roles & responsibilities through in Integrated Cooperative Governance' for implementation
- Coordinated budgeting, planning and implementation
- Effective implementation through appointment of project management teams
- Expanding role of local government through accreditation programme, Building Municipal Capacity to support accreditation and housing delivery
- Housing and municipal Integrated Development Plans through development of housing chapter of IDPs
- Review of Housing Institutions' mandate and oversight function
20. Institution and capacity building - Social housing institutions - institution building (EU partnership)
- People's Housing Process - capacity building through expansion of existing facilitation grant - -
- Financial institutions -consumer education for financial literacy campaign
- Community empowerment to engage in development opportunities and meeting their housing needs.
- A people's Contract to integrated sustainable Human Settlements
21. Financial arrangements - Restructuring the subsidy instrument through collapsing subsidy bands, extending income limit and inflation linking the subsidy
- Adjusting beneficiary contribution and beneficiary criteria for informal settlement programme, rental housing
- Enhancing funding flow through accredited municipalities, operational capital budget, enhance cash-flow management and bridging finance
22. Addressing fraud, corruption and maladministration
- Establish Special Investigative Unit
- Establish toll flee whistle blowing hotline
- Consolidate legislative framework and develop specific strategies for risk and fraud management
- Partnership with Provincial Departments of Housing, Municipalities, DPLG, Housing Institutions, National Prosecuting Authority and Speci~ Investigative Unit
- Implementation: Preliminary Investigations already in process, Establishment of SIU in November 2004
23. Job creation through human settlement development
- Job creation strategy based on. EPWP guidelines on identification, design and construction methodology for labour intensive construction Suitability assessments to be undertaken
- On site material production and support for small business development
- Enhancing existing Emerging contractor support programme (R10m)
- Entrepreneur development programme Implementation April 2005
25. Information, communication and awareness building
- Improving market information and transactional support
- Integrating Estate Agents, property brokers and sectional title properties into the housing delivery mandate
- Establish housing information centres for housing information and consumer education and protection
- Mobilising communities through communication strategy and Letsema Campaign for People Housing Process
- Strengthening the People's contract through deployment of Community Development Workers within our communities
- Implementation from September 2004 onwards
26. System, monitoring and evaluation
- Housing Subsidy and Expenditure Data
- Performance measurement
- Project management system for implementation
- Planning and implementation monitoring through Geographical Information Systems
- Monitoring and Evaluation System
Promoting a non-racial integrated society through a multi year housing plan Diagram not included