PUBLIC HEARING on HOUSING CONDITIONAL GRANT 2006/07

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PUBLIC HEARING on PUBLIC HEARING on HOUSING CONDITIONAL GRANT HOUSING CONDITIONAL GRANT

2006/072006/07Presented by: M Nkoana-Mashabane Presented by: M Nkoana-Mashabane

The Honourable MEC of Local Government and The Honourable MEC of Local Government and Housing :Limpopo ProvinceHousing :Limpopo Province

12 SEPTEMBER 200612 SEPTEMBER 2006

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Contents Contents

2006/7 Expenditure2006/7 ExpenditureKey ObjectivesKey Objectives• AchievementsAchievements• Housing programmes Housing programmes • ChallengesChallenges• InterventionsInterventions

Conclusion Conclusion

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Key ObjectivesKey Objectives

The Department identified the following as its key objectives:The Department identified the following as its key objectives:

• To provide regulatory framework for housing deliveryTo provide regulatory framework for housing delivery

• To provide capacity and support to municipalities with To provide capacity and support to municipalities with regard to housing delivery in line with the Housing Actregard to housing delivery in line with the Housing Act

• To create integrated and functional settlementsTo create integrated and functional settlements

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AchievementsAchievements

• 5 293 houses completed during 15 293 houses completed during 1stst quarter quarter • Project Management Unit has been established with assistance of private service Project Management Unit has been established with assistance of private service

provider to manage all contractors and capacitate department project managersprovider to manage all contractors and capacitate department project managers• Payment of contracts have reduced from a month to average of 8 days to support Payment of contracts have reduced from a month to average of 8 days to support

financial viability of emerging contractorsfinancial viability of emerging contractors• The new structure makes provision of four housing programs viz Housing project The new structure makes provision of four housing programs viz Housing project

management, Housing Sector performance, Social Housing and Housing management, Housing Sector performance, Social Housing and Housing Administration and Property management run by General managers and already Administration and Property management run by General managers and already appointed .appointed .

• In partnership with NHBRC the department has launched a mixed income In partnership with NHBRC the department has launched a mixed income development housing projects in Bela-Bela during June month in which 100 youth development housing projects in Bela-Bela during June month in which 100 youth are trained in construction and bricklayingare trained in construction and bricklaying

• 50 PHP houses were allocated to women for construction in five districts during 50 PHP houses were allocated to women for construction in five districts during August 2006August 2006

• 32% of the department contractors were awarded to women contractors32% of the department contractors were awarded to women contractors

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Housing DevelopmentHousing Development

The Housing Development comprises the The Housing Development comprises the following programmes:following programmes:

• Housing Performance/project managementHousing Performance/project management• Social HousingSocial Housing• Housing administration and property managementHousing administration and property management• Housing Sector Performance and municipal Housing Sector Performance and municipal

supportsupport

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Spending TrendsSpending Trends

Total per Month - DLGHAPRIL MAY JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR Total

Projection 2005/06 18,327 25,871 25,911 29,491 29,284 36,817 54,761 65,713 29,206 48,180 59,132 55,482 478,175Actual 2005/06 8,544 20,347 21,622 21,802 30,968 34,034 41,425 39,327 59,206 6,882 23,974 69,794 377,925Actual as % of Projections 47% 79% 83% 74% 106% 92% 76% 60% 203% 14% 41% 126% 79%Projection 2006/07 0 15,819 34,102 86,836 125,246 71,688 47,470 49,042 33,686 35,839 30,166 21,437 551,331Actual 2006/07 0 15,819 34,102 41,086 40,070 21,980 0 0 0 0 0 0 153,057Actual as % of Projections 0% 100% 100% 47% 32% 31% 0% 0% 0% 0% 0% 0% 28%

The 68% under expenditure in August are mainly due to late submission of Geo-tech reports, late idenification of development areas, shortage of building material (bricks, late submission of beneficiary forms by municipalities and late pronouncement of sub. R9,597m was spend on Housing Grant as at 4 September 2006.

HOUSING GRANT

020,00040,00060,00080,000

100,000120,000140,000

APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR

MONTHS

R'0

00

Projection 2005/06

Actual 2005/06

Projection 2006/07

Actual 2006/07

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Rural and Urban HousingRural and Urban Housing• Target :29 240Target :29 240• 5012 houses completed5012 houses completed• 5055 roof and finishes5055 roof and finishes• 4910 wall plates4910 wall plates• 6121 foundations6121 foundations

Programme: Housing Performance Programme: Housing Performance /Project management /Project management

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Programme:Social HousingProgramme:Social HousingPeople Housing ProcessPeople Housing Process

• Annual Target:3922Annual Target:3922

• 281 houses completed281 houses completed

• 444 wall plates444 wall plates

• 435 foundations435 foundations

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continuedcontinued

Institutional Housing (Rental )Institutional Housing (Rental )• Target :508Target :508• 20 blocks are roofed20 blocks are roofed• 13 blocks have slabs13 blocks have slabs• 27 blocks are at foundation level27 blocks are at foundation level• 1block completed1block completed• Each block have 6 or 4 unitsEach block have 6 or 4 units

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Programme:Housing Sector Programme:Housing Sector Performance and Municipal supportPerformance and Municipal support

• Polokwane Municipality is being accredited Polokwane Municipality is being accredited as level one as level one

• Development of Multi-year Housing Development of Multi-year Housing Development plan in progressDevelopment plan in progress

• Establishment of Housing Customer line for Establishment of Housing Customer line for reporting fraud and consumer awareness in reporting fraud and consumer awareness in progressprogress

• Limpopo Housing Development Bill-Public Limpopo Housing Development Bill-Public hearing are continuinghearing are continuing

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Programme:Housing administration and Programme:Housing administration and property managementproperty management

Housing transferHousing transfer

Annual target:4770Annual target:4770• 3718 legal tenants have been profiled and ready 3718 legal tenants have been profiled and ready

for lodgement with deed office for lodgement with deed office • 71 deeds of grant already handed to 71 deeds of grant already handed to

beneficiariesbeneficiaries

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CHALLENGES CHALLENGES (Cont.)(Cont.)

• 3.5 million bricks shortfall per month3.5 million bricks shortfall per month• Municipal electionsMunicipal elections• Loading of subsidy quantumLoading of subsidy quantum• Institutional capacity Institutional capacity • Contractors capacity to deliver at scaleContractors capacity to deliver at scale

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InterventionsInterventionsNew appointment in line with new structure:New appointment in line with new structure:• 6 Senior managers 6 Senior managers • 7 Cuban engineers7 Cuban engineers• Negotiated with DBSA to second project management expert Negotiated with DBSA to second project management expert • Further 30 project managers with technical expertise will be appointedFurther 30 project managers with technical expertise will be appointedProject Management Unit has been established to assist with management of contractors Project Management Unit has been established to assist with management of contractors Non performing contractors have been profiled and will be restricted Non performing contractors have been profiled and will be restricted Housing Subsidy Scheme has been linked to Financial system to improve speed in Housing Subsidy Scheme has been linked to Financial system to improve speed in

payment of claimspayment of claimsStrategy to deal with blocked projects is in placeStrategy to deal with blocked projects is in placeSites audit of developable land is completed for 2007/8 projectsSites audit of developable land is completed for 2007/8 projectsCall of profiles for Geotechnical engineers to conduct geotechnical investigation 2006/7 Call of profiles for Geotechnical engineers to conduct geotechnical investigation 2006/7

has been donehas been done Trilateral agreement facility has been created for material suppliers to assist emerging Trilateral agreement facility has been created for material suppliers to assist emerging

contractorscontractors

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ConclusionConclusion

THANK YOUTHANK YOU