Challenges to purchase/release of Land & Buildings for Sustainable Human Settlements Presentation to the Portfolio Committee on Public Services 10 September.

Challenges to purchase/release of Land & Buildings for Sustainable Human Settlements

Presentation to the Portfolio Committee on Public Services

10 September 2013

Outline

Outcome 8 HDA Role and Land Assembly Programme Land Identification Status Land Release Status

Public land Communal land Private land HDA land

Challenges Way forward

Outcome 8 targets

Outcome 8 – Sustainable Human Settlements and Improved Quality of Household Life:

Release of state land for human settlements – 6250 ha Informal settlements upgrading – 400 000 householdsGap market – 600 000 UnitsRental housing – 100 000 Rental Units

HDA focus areas

The HDA was established to address the land acquisition and assembly process so as to accelerate housing delivery and human settlement development.

The two main objectives of the Agency are to:

Identify, acquire, hold, develop and release well-located land and buildings

Provide project management support and housing development services

Programme Support :Land Assembly

identify suitable land for human

settlements development:

*Spatial Analysis

(IDP, SDF, MHDP)

* Site Inspection

*Town Planning

*Feasibilities

(Land Geo-spatial Services)

acquire such land and/ or facilitate it’s release to

another organ of State:

*Negotiation

*Conveyancing

* Rights/ title

* Legal transaction

hold such acquired land -

with short, medium and long

term outlook:

*Security

*Maintenance

*Rates &Taxes

*Service Charges

prepare acquired land for

development and release:

* Dev Planning

* Rights/ Bankability

*Project packaging

*Investment plan

LAND ASSEMBLY PIPELINE

Programme Support :Land Assembly

Public sector• National

• Public Works• RDLR• SOCs: “Purchase”

• Provincial• Housing Boards• Provincial Entities:

“Purchase”• Municipal

• Municipal-owned• Commonages• Municipal Entities:

“Purchase”?

Private Sector• Private individuals• Trusts etc.• Private Companies

• Outright purchase (sale)• Expropriation• “Donation”

Land released/acquired for human settlements

Land Identified and requested for human settlement development

• DPW – 24,266 ha• DPDLR – 16,068 ha• SOC (mostly Transnet and Denel) 2430 ha at an

estimated cost of 341m

Released public land

EARMARKED FOR (HOUSING PROGRAMMES)

POTENTIAL YIELD OF UNITS

Mixed land use 400 Units

3400 Units , Cemetry and Commonage1500 Units6000 Units and 3455 existing

2168 Units

Gap Hous ing 60 Units

Rural Hous ing 200 Units

32183 units

Human Settlements

PROVINCE

North WestMadibeng

Tzaneen MUNICIPALITY

MEASURING EXTENT18.8114

752.89

855.2526

318.6374

4269.2815

7315.4391

STATE LAND RELEASED FOR HUMAN SETTLEMENTS:

OUTCOME 8

15000 Units

KwaZulu-Natal Umngeni

Hibiscus Coast

Maluti-A-Phofung

Mangaung

Limpopo

Gauteng City of Jo'burg

Free State

Rustenburg

1089.4311

2.0351

9.1

Integrated human

settlements

SOC properties purchasedSOC Acquired land

Province Municipality Extent (ha) Cost FundingEarmarked for (HS prog)

Potential yield (units)

Gauteng CoJ 0.3964 R 18 000 000.00HDA Rental 750

CoTshwane 38.1075 R 16 985 000.00HDA ISHS 1600

Fstate Mangaung 45.93 R 4 950 000.00Province ISHS 1040

Matjabeng 2.42 R 450 000.00Province Rental 240

Dihlabeng 5.2931 R 2 000 000.00Province Rental 156

Moqhaka 51.9184 R 3 450 000.00Province ISHS 1420

Wcape Swartland 700.7813 R 5 000 000.00HDA ISHS 100

Ecape Lukhanji 5.1924 R 3 500 000.00HDA Rental 1420

Total   850.0391 R 54 335 000.00    6726

SOC properties purchased

Summary of Identified Private Land Per Province

HDA LAND HOLDING

Province Municipality Extent (ha)Limpopo Bela Bela 72.5785Gauteng CoJohannesburg 0.3964 CoTshwane 38.1075Fstate Mangaung 45.93 Matjabeng 2.42 Dihlabeng 5.2931 Moqhaka 51.9184Wcape Swartland 700.7813

CofCape Town 2.4814Ecape Lukhanji 5.1924Total   850.0391

HDA LAND HOLDING

HDA land release/acquisition

• HDA doing project packaging of land for mixed/rental housing development on request from provinces & with support of municipalities

• Buildings being released to Social rental housing sector for development & management

• Release / development by HDA dependent on:• Provinces/municipal requesting HDA support with

implementation• Infrastructure availability/provision • Capacity to develop land/buildings locally• Planning for land – land/project pipeline interface

Contributing to creating Sustainable Human Settlements Most land released is made available to

municipalities or HDA Land release is conditional to:

Land being used for human settlement development only

Land development being concluded within a defined period

HDA has monitoring role together with DHS to ensure land released is developed for human settlements

Approach to Release of Communal Land for Human Settlements

Obvious challenges

Land consideration payable- some traditional leaders require compensation

Tradeability in the open market Security to obtain finance or mortgage

Approach

Communal Land is state land allocated to traditional authorities DRDLR is the nominal owner Community Resolutions required prior to release of land for

development- sometimes problematic to secure due to community dynamics

Informal land rights holders also recognised e.g. for grazing, agriculture etc.

Community must agree to envisaged development

Summary – Public & Communal land release

Exceeded Outcome 8 target of 6250ha 32 000 potential housing opportunities from the 7315ha of

Outcome 8 land specifically With SOC = 38909 units from 8165ha requested Land release primarily from DRDLR Some strategic land released from NDPW Public enterprises land acquisition requires

compensation/funding Provincial state land departments involvement/alignment in the

process is happening but needs more attention 17% of land requested from State departments has been

released to date

Challenges Mitigation measures

Private land:•Capital funding required for land acquisitions

• Working with DHS and provinces to improve forward planning & align required funding for land linked to a Nationally agreed strategy

Public land: •Land release turn-around time•Verification of ownership of land•Competing interests on the land•Land claims on some prioritised properties •Changes within Departments (staff & plans)•Mandate to release with other Departments

• Key approvals and sign-off required to ensure compliance of state land release

• Joint Co-ordinating Committee (JCC) monitors and assist with engagements between govt. departments.

• Different govt. departments have competing interests on the same land – negotiation of these interests

• HDA/DHS identify and request; NDW/RDLR/PE/SOC = need to approve release

Key challenges experienced in the release of land for human settlements

Challenges Mitigation measures

HDA land release:•Infrastructure planning & availability•Land/project pipeline interface•Local capacity

• Engagement with other govt dept. to ensure positioning & alignment of planning for project development

• Assistances to provinces with planning, preparation & technical capacity to facilitate project development

GeneralLack of planning and preparation for the acquisition and release of land

• Working with DHS and provinces to improve forward planning & align required funding for land linked to a Nationally agreed strategy

• Support work provided by the HDA to province and municipalities to assist with planning, preparation, systems & procedures, and technical capacity

• Limited to provinces that choose to utilise the support and involve the HDA

Key challenges experienced in the release of land for human settlements

Despite the challenges the HDA has exceeded the Outcome 8 target of 6 250 ha of public land released for human settlement development

A National Land Assembly Strategy for Human Settlements and accompanying land pipeline is being developed to: • Facilitate forward planning for land based on human

settlement needs/priorities• Justify proper funding and release of land by all

spheres• Position and align support and role of the HDA in the

process• Ensure focus on National priorities – Mining towns,

SIPs, Priority projects, Informal settlement upgrading• Avoid missed opportunities

The Way Forward