DEPARTMENT OF HOUSING

 

SOUTH AFRICAN HUMAN RIGHTS COMMISSION: 5TH ECONOMIC AND SOCIAL RIGHTS REPORT SERIES 2002/2003: THE RIGHT OF ACCESS TO ADEQUATE HOUSING

 

JUNE 2006

 

 

 

1           PURPOSE

The purpose of this report is to provide a policy response to the 2002/2003 South African Human Rights Commission (SAHRC) economic and social review report on the right of access to adequate housing – attached as Annexure A, please find a copy of the said report.

 

2           BACKGROUND

The SAHRC report provides a review of the state of housing in the 2002/2003 period, constraints within national, provincial and local government with regard to under expenditure of the allocated budget votes, challenges for the year under review, new policies and programmes implemented during the period, and recommendations on areas to improve and policies and programmes to develop.

 

3           THE 5TH ECONOMIC AND SOCIAL RIGHTS REPORT

3.1          The Right of Access to Adequate Housing

When the present government came into power in 1994, it inherited a huge housing backlog. South Africa committed to providing the right of access to adequate housing for all, and making sustainable human settlements liveable, equitable and productive. Access to adequate housing implies the following key elements:

a)      Security of tenure;

b)      Availability of services, materials, facilities and infrastructure;

c)      Affordable housing;

d)      Habitable housing;

e)      Accessible housing;

f)        Location; and

g)      Culturally adequate housing.

 

The 5th Economic and Social Rights Report interrogates whether the measures implemented to tackle the issue of providing adequate housing to all have realised the above elements.

 

3.2          Constraints to under expenditure

For the period 1994 to 2003, the State had delivered 1,4 million houses. The subsidy amounts were also increased during the period under review to keep pace with inflation and to maintain the quality and size of housing. There was, however, reported under expenditure on housing delivery by many provincial departments. These were attributed to:

a)      Failure to secure suitably located land;

b)      Delays in tender adjudication;

c)      Municipalities failing to submit business plans;

d)      Delays in the National Department approving projects;

e)      Capacity constraints;

f)        Corruption;

g)      Political intervention; and

h)      Delays at the Deeds Office.

 

3.3          New Policies and Programmes

To address the housing shortfalls and to strive to realise the right to provide adequate housing for all, the National Department introduced the following policies and programmes in the 2002/2003 period:

a)      Medium Density Housing;

b)      Rental Housing Policy Framework;

c)      Social Housing;

d)      Emergency Housing Policy;

e)      National Home Builder’s Registration Council’s Warranty Scheme to the Housing Subsidy Scheme Financed Houses; and

f)        Human Settlement Redevelopment Programme.

 

Most provincial departments focused on the implementation of existing programmes, including:

a)      Rural housing subsidy;

b)      Project linked subsidy;

c)      Consolidation subsidy;

d)      Institutional subsidy;

e)      Relocation subsidy;

f)        Integrated serviced land subsidy;

g)      Hostel upgrading programme;

h)      People’s housing process;

i)        Rapid land release programme;

j)        Social housing programme;

k)      Disaster intervention programme; and

l)        Right sizing subsidy.

 

3.4          Challenges for the year under review

 

Even though there were achievements at national, provincial and local levels, there were still some evident challenges to the provision of housing. Most of these relate to the implementation of planned measures and include the following:

a)      Poor quality of houses;

b)      Segmentation between departments involved with housing;

c)      Lack of comprehensive and coordinated housing crisis response for vulnerable groups;

d)      Lack of capacity at municipal level;

e)      Inability to spend budget votes; and

f)        The delay in the release of state land as a result of land claims

 

4           RECOMMENDATIONS OF THE HRC REPORT

 

The report acknowledges that the National Department of Housing is moving in the right direction but it is difficult to conclude that in the period under review, there has been progressive realisation of the right of access to adequate housing. It proposes a set of recommendations that may encourage progressive realisation of the right as expeditiously as possible. This section will respond to these recommendations.

 

It should be noted that due to some of the challenges outlined above and to some socio-economic, demographic and policy shifts in the country, the Department undertook a comprehensive review of policy with full participation from stakeholders culminating in the Second National Housing Summit. The review resulted in the approval by Cabinet in September 2004 of the Comprehensive Plan for the Development of Sustainable Human Settlements. It should also be noted that the period under review, 2003/2004, was before the introduction of the Comprehensive Plan which addresses the challenges raised by the HRC.

 

4.1          Policy Coherence

The report calls for a coherent policy framework in order to allow for collaborative work between other departments and all other role players in pursuit of a common housing agenda. In line with Constitution principles on cooperative governance (Section 42(1)), the Department has, through the Comprehensive Plan, also advocated for the need to maintain and deepen cooperation between the Department, other Social Cluster departments, other spheres of government, and other role players. For example, the Department has consulted widely with the departments of Land Affairs, Labour, Provincial and Local Government, NGOs, provincial departments and the private sector in the development of its various policies. Inter governmental coordination at the national sphere is enhanced through the various FOSAD and Ministerial clusters and Inter Ministerial Committees. Provincial coordination will be enhanced through the alignment of Provincial Housing Planning (based on municipal IDPs) with the multi – year planning requirements introduced by the Treasury. Local sphere coordination will be enhanced through the introduction of Housing Chapters in the Integrated Development Planning Processes and the accreditation of municipalities. 

 

The report specifically states that the Department advocates the institutionalisation of some vulnerable groups. It is the Department’s view that this may be a misinterpretation on the part of the Commission. The Department completely supports the concept of home-based care, and that institutionalisation should only be regarded as the means of last resort. To this end, the Department asserts that the provision and administration of institutions rests with the Department of Social Development. A further qualification by the National Department of Housing is that cognisance should be taken of the limitede disposable income that can be used to take care of vulnerable groups within the home-based care environment, particularly among low-income groups who are often dependent on social grants.

 

4.2          People with Special Needs

 

The housing subsidy programme provides for additional funding to be made available for the needs of people with disabilities or special needs. A programme to provide for the housing needs of people living with HIV/aids is on the agenda for this financial year.

The Department’s Programme for Housing Assistance in Emergency Housing Situations was formulated to provide temporary assistance to people in emergency situations in the form of secure access to land, basic services and shelter. It includes the possible relocation and resettlement of people on a voluntary and co-operative basis in appropriate cases and involves cooperation between the three spheres of government. There is a dedicated funding framework to provide funds for initiatives under this Programme.

 

4.3          Integration of Communities

When housing disadvantaged communities the Department should  make an effort to integrate them into the broader community.  The department is currently in the process of developing a policy of inclusionary housing which is aimed wt providing affordable housing as part of upmarket housing developments thus enhancing integration of communities. The Social Housing programme which provides medium density housing in well located areas of the city provides affordable rental housig options which serve to integrate communities and provides access to social and economic opportunities.

 

 

4.4          Planning

The report calls on the Department to adopt a communicative planning approach to encourage the involvement of all affected parties in order to promote diversity while achieving integration.

 

In response, the Comprehensive Plan proposes enhancing spatial planning incorporating the principles of the National Spatial Development Perspective (NSDP) and the National Urban Strategy, aligning the same with the Departments of Land Affairs, Provincial and Local Government (DPLG) and Transport. To this end, the National Department of Housing, in collaboration with DPLG, has developed a Programme for Housing Chapters of Integrated Development Plans. The aim of the Programme is to provide a clear framework for incorporating housing planning in Municipal Integrated Development Planning processes and aligning housing planning between Provincial Housing Departments and Municipalities. 

 

The Programme will also provide assistance to Municipalities to undertake housing planning as part of the overall IDP process prescribed by the Municipal Systems Act (32 of 2000).  Provision is also made for Provinces to provide housing planning support to Municipalities where required.  Housing MinMec approval for this Programme is anticipated by June 2006.

 

4.5          Tribal Authorities and Land Availability

There is slow delivery in rural areas that is caused by power struggles with traditional authorities and also delays where land under restitution claims has been identified for housing development.

 

The Department of Land Affairs is the lead department in issues concerning Restitution and Tenure Programmes. The issue of slow progress and delays has been raised by the National Department of Housing, and was raised by a range of stakeholders at the recently held DLA Land Summit in July 2005. DLA has committed to finding ways to expedite land release mechanisms and stop delays / slow progress caused by land under restitution claims. 

 

A Special Purpose Vehicle (SPV) for housing land acquisition, holding and transfer is also in the process of being established.

 

4.6          Private Land Identified for Housing

The report proposes that the National Department of Housing should establish a dedicated fund for acquiring well located land for low cost housing. The department, with assistance from Land Affairs, National Treasury, Land Affairs Provincial Departments, and Housing Provincial Departments, has developed a draft policy for the acquisition and funding mechanisms for state, private and public land for low cost housing, and is currently completing its interrogation in respect of how best to implement such a land acquisition strategy. A Special Purpose Vehicle (SPV) for housing land acquisition, holding and transfer is also in the process of being established.

 

 

4.7          Culturally Adequate Housing

The report notes that culturally adequate housing has not been considered in South Africa. This is evident in the uniform style of housing whether in urban, rural or semi-urban settlements. The Comprehensive Plan notes that the Housing Programme is inherently urban biased and therefore proposes a new plan to also enhance traditional technologies and indigenous knowledge in the construction of houses. To this end, the Department recently received a commissioned report from the CSIR to establish the feasibility of a mechanism to support alternative technologies and indigenous knowledge in a rural housing context. These findings will be further developed and subsumed into the Housing Programme.

 

4.8          Access to Information

Lack of information has resulted in unethical behaviour and in housing development that is sheltered in secrecy, corruption, repression and human rights abuses. Lack of accountability of financial institutions has been the root cause of this. 

 

The Department’s Home Loan Mortgage Disclosure Act (63 of 2000) aims to eradicate discrimination and unfair practices to do with access to housing finance, to promote fair lending practices, which require disclosure by financial institutions of information regarding the provision of home loans.

 

To address the corruption issues, the Department has established a Special Investigations Unit to deal with fraud and corruption and has also established a toll free whistle blowing hotline.

 

4.9          Public Participation

The report notes that participation of beneficiaries would enhance the effectiveness of housing development. In response, it should be noted that the Department embarks on a rigorous consultative process in the development of all its policies and programmes, which comprises bilateral consultations and broader multilateral workshops with all relevant stakeholders for a particular programme.  The review of policy undertaken in 2003/2004 culminated in the Second National Housing Summit from which the Comprehensive Plan for Sustainable Human Settlement (“Breaking New Ground”) was developed and approved by Cabinet in September 2004.

 

4.10       Eviction

As far as evictions are concerned, this department administers two Acts which makes it abundantly clear that forced evictions are not desirable.  The Rental Housing Act, 50 of 1999 makes it clear that conduct such as harassment, unfair discrimination, violence and arbitrary eviction of or against tenants are in fact illegal.

 

In addition hereto, the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act, 19 of 1998, makes it explicitly clear that any action for eviction of persons can only be taken in accordance with the prescripts of the Act and after a court of law has satisfied itself that eviction is in fact the only justifiable course of action.  The rights of persons occupying land are to be further strengthened by an Amendment to the Act which will criminalise any act or omission, including the deprivation of access to land or to essential services or other facilities related to land, which is calculated or likely to induce a person to vacate occupied land or refrain from exercising access to land.

 

4.11       Bonded Houses

The National Department of Housing has developed a Housing Consumer Education (HCE) training programme which is intended to ensure that housing beneficiaries understand their rights and responsibilities as well as the different types of subsidies offered by Government. It is also aimed at ensuring that consumers are educated on existing and new housing legislation and strategies.

 

As part of the education process on bonded houses, Module 4 of the HCE generic course namely “Housing Finance” covers in detail the following topics which deal with finance options available to assist prospective buyers in buying a house or improving the one they already have: 

 

  • Mortgage Loan
  • Transfer fees
  • Bond registration costs e.g. initiation fee, evaluation fee, stamp duty, conveyancer fee
  • Interests e.g. administration fees
  • Types of loans e.g. mortgage, non-mortgage and micro loan

 

Various financial institutions (e.g. ABSA, Nedcor, FNB and Standard Bank)   and Housing Institutions (e.g. Nurcha, NHBRC, and Thubelisha Homes etc.) offer timeous “Beneficiary Education” to their prospective home-buyers.   A programme consumer education programme  “Homey to Homey” was lauched in partnership with Absa and will be extended to cover all the official languages. 

 

 

4.12       Farm Workers

The report calls on the relevant departments to collaborate on a policy for farm workers, and to submit the policy and its implementation guidelines to the SAHRC. The Department constituted a steering committee with the Department of Land Affairs and developed a draft policy for farm worker housing. This policy was also taken through consultative rounds with the Rural Housing Task Team (RHTT). The RHTT comprised the departments of Housing, Land Affairs, Provincial and Local Government, Labour, NGOs, the SAHRC, trade unions, financial institutions and organised agriculture. The draft policy will be finalised following a Rural Housing Indaba later this year.  In the mean time MINMEC has approved that provinces may undertake pilot projects with a view to enhancing policy.

 

 

 

 

 

 

DEPARTMENT OF HOUSING

 

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