Kwa ZuluNatal Department of Housing PRESENTATION TO HOUSINMG

STRUCTURE – Introduction – Vision – State Of Housing Needs In The Province –

INTRODUCTION • The focus of the presentation is to table the state of Kwa.

VISION The vision of the department is: Enabling all people to house themselves by

STATE OF HOUSING • STATE OF HOUSING NEEDS IN THE PROVINCE – Based on

PRIORITY AREAS • The following are the key focus areas in the province especially

2006/2007 YEAR COST CENTRE PROJECTIONS 2006/07 R’ 000 ACTUAL 2007/08 R’ 000 Administration 68

BUDGET ALLOCATION 2007/08 COST CENTRE 2006/07 ACTUAL 2007/08 R’ 000 2008/09 R’ 000 2009/10

ADMINISTRATION Administration R 79, 245 HOD R 8, 790 Corporate Services R 32, 984

HOUSING PLANNING AND RESEARCH Housing Planning and Research R 21, 541 Admin Support R

HOUSING DEVELOPMENT IMPLEMENTATION Housing Development Implementation R 1, 192, 142 Administration R 56, 955

SERVICE DELIVERY TARGETS ’ 07/08 Units R’ 000 • Project linked subsidy – Sites:

SERVICE DELIVERY TARGETS ‘ 07/08 Units R’ 000 • Peoples Housing Process – Sites

SERVICE DELIVERY TARGETS ’ 07/08 Units R’ 000 • Emergency housing – Sites 1,

Housing Property Management R 227, 922 Administration R 52, 554 Housing Properties Maintenance R

CONDITIONAL GRANT • The department receives the majority (86%) of its funding from the

CONDITIONAL GRANT Integrated Housing and Human Settlement Development Grant R 1, 310, 555 Planning

INFRASTRUCTURE • The department’s infrastructure budget is linked to the conditional grant budget and

DONOR FUNDING • The department has an agreement with the Flemish Government to fund

CHALLENGES • Implementation of housing development programmes has a number of challenges and we

CONCLUSION • In conclusion, the Kwa. Zulu-Natal Department of Housing strive to achieve its

Kwa. Zulu-Natal Department of Housing Thank you 16 February Together, helping people to house

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Kwa. Zulu-Natal Department of Housing PRESENTATION TO HOUSINMG PORTFOLIO COMMITTEE CAPE TOWN 22 MAY 2007 16 February Together, helping people to house themselves 1

STRUCTURE – Introduction – Vision – State Of Housing Needs In The Province – Provincial Priorities – 2006/07 Financial Status – 2007/08 Financial Status & Programmes – Provincial Challenges 16 February 2007 2

INTRODUCTION • The focus of the presentation is to table the state of Kwa. Zulu-Natal Provincial Department of Housing. • The presentation tends to explore the value add on usage of housing fund during 2006/07 and focus on distribution towards 2007/08 and experiences / challenges in utilization of grants including outline on the programmes. 16 February 2007 3

VISION The vision of the department is: Enabling all people to house themselves by engaging various institutions and stakeholders in the provision of a conducive and enabling environment 16 February 2007 4

STATE OF HOUSING • STATE OF HOUSING NEEDS IN THE PROVINCE – Based on census of 2001 and Stats SA 2006 mid term review estimates, Kwa. Zulu-Natal has an estimated population of approximately 10 million and housing backlog of approximately 950 000 of various type, shacks, rural, farm dwellers, etc. 16 February 2007 5

PRIORITY AREAS • The following are the key focus areas in the province especially in 2007/08 financial year : – – – Eradication of slums in KZN by 2014 Accelerating housing in rural areas Strengthening governance and service delivery Ensuring job creation through housing delivery Accelerating the hostels redevelopment and upgrade programme. – Completion of all blocked projects by 2007 – Creating rental/social housing opportunities 16 February 2007 6

PRIORITY AREAS • The following are the key focus areas in the province especially in 2007/08 financial year : – Building the capacity of housing stakeholders (especially municipalities) – Promoting home ownership (through the EEDBS) – Provision of housing to vulnerable groups including those affected by HIV/AIDS – Ensuring the provision of incremental housing, and – Implementation of the Financial Service Market Programme 16 February 2007 7

2006/2007 YEAR COST CENTRE PROJECTIONS 2006/07 R’ 000 ACTUAL 2007/08 R’ 000 Administration 68 158 67 894 Housing Planning and Research 25 752 20 795 Housing Development Implementation 893 553 911 408 Housing Property Management 263 720 252 920 1 251 183 1 252 724 Total 16 February 2007 8

BUDGET ALLOCATION 2007/08 COST CENTRE 2006/07 ACTUAL 2007/08 R’ 000 2008/09 R’ 000 2009/10 R’ 000 Administration (PROGRAMME 1) 67 894 79 245 84 550 90 891 Housing Planning and Research (PROGAMME 2) 20 795 21 541 19 446 25 904 Housing Development Implementation (PROGRAMME 3) 911 408 1 192 142 1 460 612 1 756 446 Housing Property Management (PROGRAMME 4) 252 920 227 922 232 180 223 467 1 252 724 1 520 850 1 796 788 2 096 708 Total 16 February 2007 9

BUDGET ALLOCATION 16 February 2007 10

ADMINISTRATION Administration R 79, 245 HOD R 8, 790 Corporate Services R 32, 984 Risk Management R 10, 895 Finance R 24, 653 Communications R 1, 923 16 February 2007 11

HOUSING PLANNING AND RESEARCH Housing Planning and Research R 21, 541 Admin Support R 6, 677 Policy R 2, 567 Planning R 4, 735 Capacity Building R 7, 562 16 February 2007 12

HOUSING DEVELOPMENT IMPLEMENTATION Housing Development Implementation R 1, 192, 142 Administration R 56, 955 Individual Subsidies R 54, 600 Operational Capital R 7, 000 Planning and Services R 359, 975 Top Structure Construction R 518, 012 Affordable State Rental Programme R 75, 600 Social and Economic Facilities R 120, 000 16 February 2007 13

SERVICE DELIVERY TARGETS ’ 07/08 Units R’ 000 • Project linked subsidy – Sites: • Normal 5, 320 86, 290 • Informal settlement 5, 721 96, 873 • Blocked 788 12, 608 – Top structures: • Normal 3, 700 85, 100 • Informal settlement 5, 497 125, 001 • Blocked 3, 212 37, 392 16 February 2007 14

SERVICE DELIVERY TARGETS ‘ 07/08 Units R’ 000 • Peoples Housing Process – Sites 5, 371 90, 639 – Top structures 4, 800 114, 144 – Establishment grant 8, 500 • Rural – Sites 2, 800 44, 765 – Top structures 3, 100 71, 300 16 February 2007 15

SERVICE DELIVERY TARGETS ’ 07/08 Units R’ 000 • Emergency housing – Sites 1, 800 – Top structures 28, 800 500 17, 000 • Rectification – Top structures 841 20, 000 450 11, 515 700 28, 060 • Consolidation – Top structure • Institutional – Top structure 16 February 2007 16

Housing Property Management R 227, 922 Administration R 52, 554 Housing Properties Maintenance R 138, 880 Discount Benefit Scheme R 36, 488 16 February 2007 17

CONDITIONAL GRANT • The department receives the majority (86%) of its funding from the Integrated Housing and Human Settlement Development conditional grant • The purpose of the grant is – to promote the achievement of a non racial, integrated society through the development of integrated sustainable human settlements and quality housing. 16 February 2007 18

CONDITIONAL GRANT Integrated Housing and Human Settlement Development Grant R 1, 310, 555 Planning and Services R 359, 975 Top Structure Construction R 518, 012 Individual Subsidies R 54, 600 Affordable State Rental Programme R 75, 600 Social and Economic Facilities R 120, 000 Operational Capital R 7, 000 Housing Properties Maintenance R 138, 880 Discount Benefit Scheme R 36, 488 16 February 2007 19

INFRASTRUCTURE • The department’s infrastructure budget is linked to the conditional grant budget and is broken down as follows: – Capital Infrastructure Transfers • Construction of low income houses 921, 075 • Hostel Redevelopment 75, 600 • Social and economic facilities 120, 000 – Current • Maintenance 138, 880 – Total 1, 255, 555 16 February 2007 20

DONOR FUNDING • The department has an agreement with the Flemish Government to fund the formation of Housing Components in municipalities • The department will receive € 590, 179 (±R 5, 5 million) in terms of this agreement • It is anticipated that the department will receive R 1, 56 million during the 2007/08 financial year for this programme 16 February 2007 21

CHALLENGES • Implementation of housing development programmes has a number of challenges and we cite provincial specific: – Lack of bulk infrastructure (Water, , Electricity & Sanitation : Estimated Backlog R 34 Billion) – Topography – Mushrooming of slums & Slums Lordism, – Competing environment in infrastructure development linked to 2010 16 February 2007 22

CONCLUSION • In conclusion, the Kwa. Zulu-Natal Department of Housing strive to achieve its strategic objective and the vision of the province to ensure it enables people to house themselves through engagement of various stakeholders in the provision of housing. 16 February 2007 23

Kwa. Zulu-Natal Department of Housing Thank you 16 February Together, helping people to house themselves 24