TITLE RESTORATION PROJECT Progress Report Briefing to Portfolio

TITLE RESTORATION PROJECT: Progress Report Briefing to Portfolio Committee 27 October 2015

Presentation Index 1. Institutional Arrangements a. Accountability, Project Management & Reporting 2. Current Conjuncture a. Recent Registration Figures & Trends b. Current Registration Backlogs 3. Towards Implementation a. Target-setting, Funding the Registration Backlog b. Implementation Plans c. Proposed Policy Amendments 2

Institutional Arrangements • Since initial pronouncement, ensure alignment of all resources attached to project. • Understood that said resources be located in one place: – Funding – Project Management – Secretariat 3

Institutional Arrangements • Centralized vs Decentralized Debate • Largely determined by Funding Source – Confirmed that HSDG to fund registration backlog. – Specific DORA prescripts that govern how Grants are disbursed. – By implication, Provinces [& Metros] need to procure for any capital expenditure. – Decidedly hands-on support by NDHS • Programme Management • Project Support 4

Institutional Arrangements 1. Overall accountability resides with Minister & National Department of Human Settlements; 2. In support thereof, EAAB will avail project management and secretariat support; & 3. Official reporting line: through Office of DDG: Strategy & Planning, NDHS. 5

Institutional Arrangements Min. Mec Tech. Min. Mec TRP Project Team National Steering Comm. 9 x Provincial Steering Committees (NDHS & EAAB) Logistic Support • Contract Management • PRTs • Korbitec Inst. Support • Govt Depts • Proffessional Inst. • Research Inst. 6

CURRENT CONJUNCTURE: Recent Registration Trends Current Registration Backlogs Provincial Plans: Registration Anomaly

Recent Registration Trends d e s a re c in 15 / 14 ed e v ha 9 s m 0 n ! it o fro 20 ! ! a n r 4 i st 1 i o % t 0 g 9 e 2 4 R 60 % 5 , in 0 er 2 or liv f ! e ! s D n d e it o its h r a c i r n e h t st U i w s g 00 o f i e g R 0 1 , 0 4 0 0 0 , 1 7 e R 8

Registration Backlog: Delivery 2014/15 2015/16 Planned TOTAL Delivered* Pre ’ 94 stock 1, 435 6, 100 8, 750 10, 185 Post ‘ 94 stock 25, 700 52, 302 23, 863 49, 563 Total 27, 135 58, 402 32, 613 59, 748 * As at Sept. 2015. 9

Handover Schedule: 2015/16 • • • EC: BCM - 1700 EC: NMBM Intervention - 2298 FS: >1000 Gauteng: >4000 pre’ 94 units NW: 11, 500 Limp: >1300, of which 126 are pre’ 94 stock 10

Backlog & Targets as at 14 July 2014 PROVINCE MTEF REGISTR. % of SHORTFALL TARGET Backlog BACKLOG (2015 -18) Eastern Cape 102, 771 24, 900 24% 77, 811 78, 598 39, 262 50% 39, 336 Gauteng 165, 711 39, 000 24% 126, 711 KZN 136, 594 98, 065 72% 37, 469 Limpopo 22, 208 22, 605 100% 0 Mpumalanga 81, 021 80, 100% 0 Northern Cape 31, 893 33, 818 100% 0 North West 79, 381 56, 471 71% 22, 910 Western Cape 78, 871 36, 700 59% 32, 171 775, 928 440, 921 57% 338, 637 Free State TOTAL 11

Current Conjuncture 1. While registrations have increased, significant backlog remains. a. From 49% in 2009, to 60% in 2014. b. 140, 000 delivered vs 71, 000 registrations in 2014/15. 2. Registration backlog remains unconfirmed. 3. Mindful of recurring backlog, re. Current Projects. 4. PDHS targets low: a. 441, 000 over MTEF; b. 57% of Backlog 12

TOWARDS IMPLEMENTATION: A Different Way of Doing Business Funding the Backlog Beneficiary Reconciliation Policy Amendments Regulatory & Institutional Reform

Funding Commitments – Backlog: 776, 000 – Registration @ R 1, 800. 00 per site, to include: – Township Establishment, Ownership Contestations, Conveyancing, etc. – Estimated cost: R 1, 4 Billion • Funding from HSDG Allocation • Specific amounts ring-fenced & stated in DORA, • Inputs made to draft Grant Framework for HSDG. • Tentative amounts already provided, and supported by National Treasury 14

3. Funding Commitments Province Outstanding Transfers Cost POST-94 (‘ 000) PRE-94 SUB-TOTAL 24, 533 78, 178 102, 711 184, 880 1, 531 77, 067 78, 598 141, 476 Gauteng 12, 808 152, 903 165, 711 298, 280 KZN 26, 018 109, 516 135, 534 243, 961 Limpopo 568 21, 640 22, 208 39, 974 Mpumalanga 100 80, 921 81, 021 145, 838 3, 075 28, 818 31, 893 57, 407 North West 22, 910 56, 471 79, 381 142, 886 Western Cape 12, 000 66, 871 78, 871 141, 968 107, 173 672, 385 775, 928 1, 396, 670 Eastern Cape Free State Northern Cape TOTAL 15

Implementation Strategy PROVINCE STRATEGY/ CAPACITY Eastern Cape • • • Free State • • Gauteng • Multi-disciplinary team consisting of Provincial COGTA, SG’s Office & Deeds Registry and the ECDOHS established has been set up with a view to visit municipalities to identify and facilitate resolution of challenges on site. Specific interventions in both Metros. Panel of conveyancers established. D: Informal Settlements & Land Tenure responsible for administration of project. Appointment of Service Providers • Database of 14 conveyancing firms • 4606 instructions from backlog issued equitably to firms D: Asset Disposal & Regularization • Panel of Conveyancers • Adjudication Team • Adjudication Managers 16

Implementation Strategy PROVINCE Kwa. Zulu-Natal STRATEGY/ CAPACITY • • Internally, with support of HDA: • Land Admin, Land Assembly & Plng Panel of 14 conveyancers will effect all transfers once readied for transfer after process of attendance to land-legal matters. Limpopo • Reliant of External Capacity • 2 Services Providers already appointed to tfr some 3, 000 properties. • In process of doing same for further 700 properties. N/Cape, W/Cape, Mpumalanga • Ditto North West • Appointment of Service Providers • Department has appointed PMU to conduct an occupancy survey on the backlog and to proceed with conveyancing Internal Capacity • The Department has Regional teams and Inspectors to assist the PMU with the Title Restoration Project. • Pre ‘ 94 stock managed by NW Housing Corporation. • 17

Provincial Plans & Arrangements • Notwithstanding Provincial interventions: – Critical to give traction to eradication 1. PDHS to commission/develop Provincial Implementation Plans • To be oncluded by November 2015. 2. Appoint Provincial Implementing Agents 18

Provincial Plans & Arrangements Plan: 1. Review: a. Exact backlog, per category, per municipality; b. Nature & extent of each type of blockage; c. Capacity & institutional constraints. 2. Implementation Plan: a. Targets, timeframes, and costs for next three financial years; b. Indicate nature & volume of work to be undertaken internally, along with work that is to be outsourced. a. Provincial Implementation Teams tasked with actioning Plans 19

Towards Implementation Backlog Confirmation Numbers: End of Oct. 2015 Provincial Implementation Plans Targets, Cash-flows, Deliverables End of Nov. 2015 2016/17 HSDG B/Plans M&E, and Reporting 20

Proposed Policy Amendments • Due attention is still not being given to close-out of projects. • Recurring registration backlog, address the causal factors from policy aspect. – 2002: – 2004: Delinking of Housing Subsidy from [Confirmed] Beneficiary List; and Removal of Sequential Milestone Payments from Housing Delivery Value Chain. 21

Proposed Policy Amendments 22

Proposed Policy Directive • Not intented to reverse past policy decisions. However, unintended consequences need to be addressed: 1. Final NHBRC sign-off is only done after lodgement of papers; 2. Final tranche amount to be increased to a minimum of R 2, 000. 00 per subsidy, and only paid over once the Title Deed has been registered. 23

Regulatory & Institutional Reform • Important that State & Finance Institutions supportive of lower end of residential market. • Failure to do so, may well result in return to informality. • Recent Peruvian Experience: – Huge Title Restoration Drive – De Soto, & the Revival of Dead Capital – However, the process and cost of transacting proved both too Complex and Costly … – As a consequence, many have returned to informal trading of property 24

Regulatory & Institutional Reform • Transactional costs- & processes seen as too complex & costly. • Commission work: – Develop more streamlined systems of bulk registration of properties; – Investigate and make proposals for less complex methods of land surveying; – Understand establish alternative forms of secure tenure 25

Thank You 26