Updated Strategic Plan 2008 11 Presentation to Select Committee

Updated Strategic Plan 2008/11 Presentation to Select Committee on Public Services 21 May 2008 1

STRUCTURE OF THE PRESENTATION 1. Introductory & Overview – Director-General a. b. 2. Executive environmental scan Housing Sector priorities Departmental Programmes – Chief of Operations a. Department’s Strategic Objectives & Structure b. Programmes’ Purposes and Functions c. Planned Activities for 2008/09 3. Programmes’ Budget Analysis – Chief Financial Officer 2

Introduction and Overview Director-General: Housing Mr. Itumeleng W. Kotsoane 3

Executive Environmental Scan 4

7 Key Considerations 1. Capacity and gearing-up for Delivery Acceleration • address the need to improve the understanding of the policies and its changes by the practitioners across all spheres of Government (in particular Provinces and municipalities) • Secure sector delivery capacity and provide hands-on support to accelerate delivery (LAND/ BUILDING MATERIALS/ CONSTRUCTION) • improvements and streamlining of the planning process for effective delivery • eradication of informal settlements – ensure progressive and incremental realization of the 2014 target through specific annual milestones • Housing must lead in the delivery process for community basic services and infrastructure - design an enabling funding framework that ensures the delivery of complete 5 settlements

2. Priority Projects • explore and adopt alternative approaches to better manage priority housing projects. This must serve to affirm National support but limit exposure. • Delivery progress on Zanemvula and N 2 must be closely managed • Ensure progress on the Khutsong project • trouble shooting mechanisms (working smarter) 3. Organisational Development (and integrity) • improvement and uphold governance dictates of the department • build more inclusive approach in carrying out the departmental mandate • build close collaboration between both Provincial and Municipalities 6

4. Monitoring and Evaluation Mechanism • understanding better the extent and nature of our backlog – (2014 informal settlement eradication target). Define more sharply the extent of the housing demand • increase presence in the Provinces, especially around project tracking • better use of and reporting on the budget and resources across the sector 5. Housing Institutions • Establish and operationalise the Housing Development Agency and the SH Reg. Authority • Housing institutions need to account more on the 7 accurate delivery of their mandates

6. Policy • Provide greater clarity on rural and urban housing policy & responses • Enhance and articulate housing development regulations and ensure adherence to minimum norms and standards • finalize all outstanding policy refinements to give effect to delivery • policy development to focus on expediting delivery 7. Communication • improve communication and relations between Provinces and Municipalities • manage public perceptions and communicate progress/ success stories to improve awareness of delivery system. • Show case real time delivery progress to demonstrate progress towards providing access to adequate shelter. • Engage in public discourse on delivery considerations and as far as possible lead with ideas and success stories • Demonstrate appropriateness of innovative and alternative technologies in advancing delivery. 8

Housing Sector Priorities 9

Housing Priorities 1. Introduce housing cover for military Veterans of the struggle 2. Interventions in the housing industry and residential property market to curb the spiraling cost of construction input prices - including the cost of material development and supply 3. We develop appropriate legislation to prevent the mushrooming of informal settlements (i. e. improve the regulations) 10

Housing Priorities 4. Provide for housing needs with the use of alternative housing options such as affordable rental stock 5. Develop & adopt a central planning approach to better direct resource allocation, distribution and an overall coordinated response to human settlements 6. Restructure the funding mechanism(s) and consolidate all housing-related grants and funding streams to improve sustainability 11

Housing Priorities 7. In order to deal effectively with the challenges of human settlements, land acquisition be accelerated through a dedicated Housing Development Agency 8. I n t r o d u c e a o n c e - o f f i n j e c t i o n o f r e s o u r c e s and an extraordinary effort to impact on the housing backlog & poverty 9. Introduce measures to assist people with building materials to encourage self involvement in the provision of housing needs. This will respond to specific conditions 12 that prevail in rural areas, for example.

Departmental Programmes (within Branches) for 2008/09 Chief of Operations Mr. Joseph M. Leshabane 13

Departmental Strategic Objectives 1. Accelerating the delivery of housing and integrated sustainable human settlements 2. Utilizing housing delivery as a catalyst for major job creation and economic growth 3. Ensuring residential property is accessible to alleviate asset- poverty and create wealth 14

Departmental Strategic Objectives 4. Promoting social cohesion and improving quality of life for all in sustainable integrated human settlements. 5. Main stream alternative technologies and innovative planning for sustainable human settlements 15

NDo. H ORGANISATIONAL MACRO STRUCTURE CD: Housing Institutions & Funding Mobilisation Minister: LN. SISULU CD: Executive Support Director-General Mr IW Kotsoane DDG: Policy & Research CD: Policy Mr J Leshabane Chief of Operations CD: Monitoring & Evaluation CD: IGR & International Relations CD: Management Information Services Mr K Kabagambe DDG: Delivery Support CD: Human Settlements Planning CD: Programme Implementation Support CD: Research CD: Transformation CD: Communications CD: Internal Audit, Special Investigations & Risk Management Mr. M Maphisa CD: Strategic Management CD: Rental Housing & Co. DHI CD: Stakeholder Mobilisation CD: Capacity Development CD: Priority Projects Facilitation Ms Y Mbane (Act) DDG: Corporate Services CD: Corporate Support CD: IT & Systems (GITO) CD: Human Resources CD: Legal Services Mr M Dlabantu DDG: Chief Financial Officer CD: Financial Services CD: Housing Finance Equity CD: Funds Management 16

PROGRAMME 1: Ministry/ DG’s Office/ COO/ Corporate Services (Pages 31 – 49) 17

PURPOSE The purpose of the programme is to provide strategic leadership, administrative and management support services to the department and promote and facilitate the flow of information between the department and its stakeholders. 18

Programme 1: Administration • Included in Programme 1 are the following key areas of responsibility: – Office of the Executive Authority, – Office of the Accounting Officer, – Branch Corporate Services, and – Office of the Chief of Operations; 19

Sub-Programmes • Executive Support • Chief Directorate Internal Audit, Risk Management and Special Investigations • Human Resources Management & Development • Corporate Support • Legal Services • Information Technology and systems • Strategic Management • Transformation • International Relations & Inter-governmental Relations • Communication Services • Housing Institutions and Fund Mobilisation • Management Information Services 20

PLANNED ACTIVITIES: 2008/09 • Implement the Department’s International and IGR Programme, with focus on: – Work with Provinces on the implementation of the 2008/9 DORA and Grant Framework – Facilitate the inter-sectoral liaison and co-ordination – Co-ordinate inter-sphere relations through Provincial and Municipal IGR (Minmec) Structures in support of housing development – manage and facilitate international relations in support of housing development: • • Bilateral and multi-lateral cooperation/ World Urban Forum IBSA/ DRC Post Conflict Reconstruction/ Netherlands/ Cuba World Urban Poor Consultative Forum/ AMCHUD/ UN-Habitat 21 Cities Alliance/ World Bank/ Knowledge exchanges

PLANNED ACTIVITIES: 2008/09 HOUSING INSTITUTIONS/ FUNDING MOBILISATION • Establish the Housing Development Agency • Establish the Social Housing Regulatory Authority • Rationalisation and closure of: – – SERVCON Thubelisha Homes Social Housing Foundation PHPT Explore and exploit possible mechanisms to trigger the flow of investments towards human settlement development 22

PLANNED ACTIVITIES: 2008/09 MANAGEMENT INFORMATION SERVICES • Manage the development of innovative operational, control and decision support information systems; • Provide support, training and data quality support services to the Sector • Housing Subsidy System management • Develop a national housing demand data base • Maintain the data contained in the data warehouse • Develop Information products and deliver Knowledge Management services 23

PLANNED ACTIVITIES: 2008/09 COMMUNICATION SERVICES • Develop and manage Public Information and awareness programmes. • Develop and manage production of publications and promotional services/ products • Manage overall communication with stakeholders and interface with/ usage of the media • Implement internal (corporate) communication programme 24 • Facilitate a Sector-wide communication drive

PROGRAMME 2: POLICY & RESEARCH BRANCH (Pages 49 -57) 25

BRANCH PURPOSE The purpose of the programme is to develop and promote sustainable human settlement and housing policies supported by a responsive research agenda; as well as monitor and assess the implementation, performance and impact of national housing policies and programmes. 26

FUNCTIONS • To ensure an effective human settlement and housing policy framework • To monitor and evaluate the planning, implementation and performance of housing programmes and policy as well as assess the impact thereof • Manage and coordinate responsive research on housing and integrated human settlements 27

SUB-PROGRAMMES The programme comprises of the following areas of responsibility: • POLICY - Develop and promote national human settlements and housing policies • RESEARCH - Manage and coordinate responsive research on housing and integrated human settlements • MONITORING & EVALUATION - Monitor and evaluate the planning, implementation and performance of national housing policies and assess the impact thereof 28

PLANNED ACTIVITIES: 2008/09 POLICY • Publication and promotion of the revised National Housing Code • Policy on insurance cover for subsidised houses • Policy for housing assistance to persons who lost both guardians • Farm worker housing policy - revised • Policy formulation model for provinces and municipalities - disseminated • Provide policy interpretation and implementation advice and assistance to stakeholders to expedite delivery • Conduct stakeholders’ implementation workshops on National Housing Code and Regional Policy Model 29

PLANNED ACTIVITIES: 2008/09 MONITORING AND EVALUATION • • Undertake sample audits of housing units constructed Undertake occupancy audits Impact studies on specified policies and programmes Harness quality management monitoring 30

PLANNED ACTIVITIES: 2008/09 RESEARCH • Undertake research on sustainable human settlements priority areas – – – • • • Supply and demand considerations Informality, land tenure Urban options and policy options Good practice in implementation Sector capacity and implications of national & global displacement Manage and provide research support and co-ordination Establish a housing research resource nucleus Disseminate research products Foster innovation in housing and human settlements Determine trends in the broader macro and micro economic environment and determine the impact thereof 31

Programme 3: Delivery Support (Pages 58 – 68) 32

BRANCH PURPOSE Provide implementation and delivery support, build capacity, liaise and communicate with stakeholders and manage intergovernmental and international relations for housing and human settlement programmes 33

STRUCTURE The Branch is comprised of the following sub-programmes: • Rental Housing and Community Driven Housing Initiatives (Co. DHI) - (former PHP) • Human Settlements Planning • Programme Implementation Support • Stakeholder Mobilisation • Capacity Development • Priority Projects Facilitation 34

FUNCTIONS • Manage human settlement development planning processes and support the implementation of human settlement and housing development planning frameworks. • Provide support to provinces and municipalities to implement housing and human settlement programmes and projects • Manage sector relations, mobilise and collaborate with sector stakeholders • Develop & secure the implementation capacity of the sector • Manage the implementation of the Co. DHI and rental/ social housing programmes and provide regulatory support and oversight over the rental/ social housing and Co. DHI sectors. • Manage and facilitate support in the implementation of Priority 35 human settlements Projects of National significance

PLANNED ACTIVITIES: 2008/09 RENTAL HOUSING & Co. DHI • Develop a pipeline of projects in Provinces for delivery of high output projects - set-up, assessment & support for pipeline of projects (Co. DHI and Rental Stock) • Community Residential Units: road shows • National rental Housing strategy road show • Operationalise institutional arrangements and oversight in terms of Rental housing Amendments Act and Social Housing Act • Preparation & establishment of Social Housing Regulatory Authority • Support to Rental Housing Tribunals • Co. DHI policy & growth plan road show 36

PLANNED ACTIVITIES: 2008/09 CAPACITY DEVELOPMENT • BNG Specific training programme for officials • BNG awareness and development programme implemented • Guidelines, tools and strategies for the implementation of beneficiary empowerment programmes developed • Beneficiary empowerment/ awareness programme for Special projects • Manage the Housing Scholarship programme • Implementation of Councillor training/ empowerment programme • Develop and implement a Strategy and framework for regulating the sector professional practise 37

PLANNED ACTIVITIES: 2008/09 PROGRAMME IMPLEMENTATION SUPPORT § Facilitate and support the development and implementation of recovery plans to unblock stalled projects § Facilitate and support the development and implementation of informal settlement upgrading projects § Develop an enhanced informal settlement upgrading strategy linked to targets § Provide hands-on implementation support to prioritised provinces and municipalities 38

PLANNED ACTIVITIES: 2008/09 HUMAN SETTLEMENTS PLANNING • Maintenance of the National Programme for Housing Chapters of Integrated Development Plans • Maintenance of Framework for Provincial Multi-year Housing Planning. • Develop a Multi-year National Housing Development Plan • Support Human Settlements Planning in Provinces and Municipalities • Participate in committees and coordinate execution of subsequent tasks, in respect of promoting national sectoral planning alignment. 39

PLANNED ACTIVITIES: 2008/09 STAKEHOLDER LIAISON & MANAGEMENT § Partnership projects identified and implemented collaboratively with sector stakeholders § National and Provincial Govan Mbeki Awards organised § Women in Housing programme implemented to yield targeted outputs through women initiatives § Youth in Housing programme implemented inline with National Youth Service model to yield targeted output through service & skills development of young people § Sustain sector-wide dialogue (social contract) 40

PLANNED ACTIVITIES: 2008/09 PRIORITY PROJECTS FACILITATION • Support the implementation of Priority Projects: – – N 2 Gateway Project Zanemvula Project Khutsong Resettlement Project 11 Other Priority projects across RSA • Facilitate IGR implementation/ delivery protocols • Faciltate inter-sphere dialogue to enhance delivery and resolve obstacles • Ensure that required funding is appropriately secured and channeled to expedite delivery 41

Priority Projects • Grassland, Mangaung Local Municipality, Free State – Planned: 6886 houses (5645 BNGs Houses and 1241 credit-linked Houses) • Chief Albert Luthuli, Ekurhuleni- Gauteng – Planned 7793 houses • Klarinet, Mpumalanga – Construction of 12 400 mixed typology (BNG/ Bonded/ Rental) 42

Priority Projects • e. Mnambithi, KZN – Upgrading of 4894 units in 5 residential areas of Ezakheni, Steadville, Acaciavale, Tugelavale and Nkanyezi • Mokopane ext 20, Limpopo – Construction of 1959 houses completed (962 BNG Houses, 997 credit linked) • Ouboks, Northern Cape – Construction of 2220 BNG Houses 43

Priority Projects • Khutsong – Merafong, North West Province – – – Project Size: 18 000 BNG Houses, Amenities Planned: Schools and Business sites Tenders have been issued for the installation of services. Land for the relocation of 14 852 stands has been secured. An application to the Department of Provincial and Local Government has been submitted in an attempt to secure infrastructure funding. • Zanemvula – Nelson Mandela Bay, Eastern Cape – Chatty 1: 349 sites serviced, house construction commences. – Chatty 2: 251 sites serviced, house construction commences. – Chatty 3 & 4: 1 687 sites serviced, house construction commences. – Chatty 5: house construction commences. – Bethelsdorp: 1 211 sites serviced, house construction continues 44

Reflection on Provincial Delivery Readiness and challenges 45

46

Risks Confronting Provinces 1. Inability to assemble and secure delivery capacity. Specific responses needed. 2. Failure to enrol units with the NHBRC for structural warranty cover (as well as the benefit of quality management through progressive inspections) 3. Bulk services & Infrastructure not always available to support dense/ urban housing 4. Township establishment processes not optimally activated 5. Inability to enforce performance of contractors 6. Closure of Trust Accounts (in Municipalities) poses risk of further delivery disruptions 47

Challenges Confronting the Provinces 7. The housing delivery plans reflects weaknesses in respect of a combination of: – – – unrealistic delivery targets; cash-flow projections not always linked to actual projects, projects planned on the basis of untested/ unverified assumptions, multiple and irregular policy deviations and/or misinterpretations project plans lacking in bulk infrastructure provision 8. enormous capacity deficiencies arising from organizational attrition (changes in MEC/ HOD) 9. Inadequate capacity to manage the delivery of planned projects and resources vs Equitable Share 48

Programme 4: Housing Development Funding (Pages 69 – 75) 49

CHIEF FINANCIAL OFFICER Purpose: To fund national housing and human settlement development programmes in terms of the Housing Act (1997), provides financial and grant management and manages all matters provided for by the Home Loan and Mortgage Disclosure Act (2000) Functions: • To provide Financial Administration and Supply Chain Management services • To provide financial and grant management services • To ensure that housing finance is available and accessible to all 50

PLANNED ACTIVITIES: 2008/09 FINANCIAL SERVICES • Preparation of the periodic Financial Statements • Maintenance of accounting records • Ensure proper internal controls • Manage procurement services • Facilitate and administer corporate travelling services • Provide Basic accounting system (BAS) maintenance • Coordinate departmental budget planning process • Coordinate departmental adjusted estimate process • Ensure compliance with section 40 (4) c of PFMA • Monitor financial performance on all the programmes. 51

PLANNED ACTIVITIES: 2008/09 GRANT/ FUND MANAGEMENT • Monthly reporting on provincial expenditure to National Treasury i. t. o DORA • Reporting on provincial expenditure to Tech MINMEC & MINMEC • Ensure compliance with DORA, e. g. compile business plans, grant framework & withholding & stopping of funds • Transfer and administer funds for housing delivery • Monitor the financial performance of the conditional grant. • Support provinces on data clean up, devolution and transfer of properties 52

PLANNED ACTIVITIES: 2008/09 HOUSING EQUITY • Identify discriminatory lending patterns by financial institutions • Provide the Secretariat function in terms of the Home Loans and Mortgage Disclosure Act • Manage the receipt, collation and analysis of information disclosed by financial institutions • To create and support a conducive environment in terms of the Financial Services Charter 53

Departmental Budget for 2008/ 2009 54

General Budget Overview The Department’s Budget is structured around 4 programmes: – Programme 1: Administration – Programme 2: Policy, Research and Planning – Programme 3: Housing Delivery Support – Programme 4: Housing Development Finance 55

General Budget Overview: Programme Breakdown R thousand 2008/09 2009/10 2010/11 Medium-term estimates MTEF Baseline 1. Administration 126, 5 171, 7 18 09 06 85 2. Housing Policy, Research and Planning 105, 5 174, 8 18 42 17 31 3. Housing Delivery Support 182, 9 233, 3 24 26 96 88 4. Housing Development Finance 10, 171, 5 12, 151, 7 14, 670, 4 46 28 47 Departmental Total 10, 586, 5 12, 731, 6 15, 278, 6 23 47 51 56 1, 1 202, 8

Expenditure estimates: By Economic Classification R thousand 2008/09 2009/10 2010/11 Medium-term estimates MTEF Baseline Compensation of employees 133, 6 25 200, 1 93 21 74 Goods and services 363, 8 04 469, 6 27 49 27 Provincial Revenue Funds Departmental agencies and accounts 9, 852, 8 11, 730, 8 42 23 227, 7 39 14, 222, 6 72 326, 4 40 34 26 Foreign governments and international organizations 1, 0 00 00 Machinery and equipment 7, 3 13 2, 5 57 11 98

Analysis of expenditure trends • The department’s budget is dominated by transfer payments (95% of total allocation). • The budget grows from R 9 billion in 2007/08 to R 15. 3 billion in 2010/11, at an average annual rate of 19. 4%. • The increases are due to transfers to provinces under the integrated housing and human settlement development grant. 58

Analysis of expenditure trends • Included in the conditional grant to provinces are amounts earmarked for the implementation of the national pilot projects: – the N 2 Gateway project in the Cape Town metropolitan area (R 300 million in 2008/09, R 400 million in 2009/10 and R 500 million in 2010/11). – Zanemvula project • R 808 million is provided for the implementation of the social housing programme at R 196 million for 2008/09, R 297 million for 2009/10 and R 314. 8 million for 2010/11 59

• Purpose: Programme 1: Administration – Provide strategic leadership, administrative and management role and services to the department. • Included in Programme 1 are the following key areas of responsibility: – Office of the Executive Authority, – Office of the Accounting Officer, – Office of the Chief of Operations; – Branch Corporate Services 60

Expenditure estimates: Programme 1: Administration R thousand Minister 2008/09 2009/10 2010/11 Medium-term estimates MTEF Baseline 1, 0 19 1, 0 72 27 Management 56, 7 91 69, 5 35 73 95 Corporate Services 60, 0 39 91, 5 49 96 42 Property Management Total of sub-programmes 8, 6 60 126, 5 09 (3, 3 9, 5 10 50 21 171, 7 06 181, 3 6185 (1

Expenditure estimates: Programme 1: Administration 200 201 8/09 9/10 0/11 Medium-term estimates R thousand MTEF Baseline Compensation of employees 51, 3 66, 7 70, 5 13 13 74 Goods and services 1 1 72, 2 02, 0 08, 7 29 79 81 Provincial Revenue Funds - - - Departmental agencies and accounts - - - 62

Expenditure trends • Expenditure grows from R 126, 5 in 2007/08 to R 171, 7 in 2008/09 reaching R 181, 4 million in 2010/11 at an average annual growth rate of 14%; • Goods and services are also set to rise significantly, from R 70. 7 million in 2007/08 to R 108. 8 million in 2010/11 at an average annual increase of 15. 5%; • This is mainly due to growth in funding related to the functions of Special Investigations, Internal Audit and International Relations; • Also, the housing framework legislation unit was moved to this programme from the previous Policy, Planning and Research programme. 63

Programme 2: Housing Policy Research and Planning • Purpose: – Develop and promote national sustainable human settlements and housing policies supported by a responsive research agenda. Monitor and assess the implementation, performance and impact of national housing policies and programmes. Provide integrated business information. 64

Expenditure estimates: Programme 2: Policy & Research R thousand Management Policy Development Research 2008/09 2009/10 2010/11 Medium-term estimates MTEF Baseline 2, 2 15 10, 2 59 3, 3 88 91 22, 0 64 23 67 6, 9 18, 1 09 98 19 74 Monitoring and Evaluation 12, 1 45 37, 4 52 39 24 Information Management 64, 0 72 79, 6 70 82 20 Contributions 1, 0 00 65

Expenditure estimates: Programme 2: Housing Policy R thousand 2008/09 2009/10 2010/11 Medium-term estimates MTEF Baseline Compensation of employees 27, 95 48, 60 51 2 2 7 Goods and services 75, 65 124, 94 130, 8 7 7 3 Provincial Revenue Funds - - Departmental agencies and accounts - - Foreign governments and international organisations Machinery and equipment 1, 00 0 0 0 93 26 3 5 1 66

Expenditure trends • The budget grows from R 78 million in 2007/08 to R 183. 7 million in 2010/11 over the medium term, at an average annual rate of 33. 1%; • Significantly this programme grows from a very low base over the past years its growth is mainly related to the Information Management function costs; • This is mainly due to a new sub-programme, Human Settlement Planning, that was created to improve and co-ordinate the planning regime. • Spending in the sub-programme grows from R 8. 9 million in 2008/09 to R 14 million in 2010/11. 67

Programme 3: Housing Delivery Support • Purpose – Provide implementation and delivery support, build capacity, liaise and communicate with stakeholders and manage intergovernmental and international relations for housing and human settlement programmes. 68

Expenditure estimates: Prog 3: Housing Delivery Support 2008/09 2009/10 2010/11 Medium-term estimates R thousand MTEF Baseline Management 2, 1 3, 0 70 00 Service Delivery Support 5, 7 6, 5 32 12 63 Rental Housing and People's Housing Process Stakeholder Management 10, 2 18, 0 93 12 1 18 7, 3 8, 4 30 78 26 Inter-governmental and International Relations 63, 3 66, 7 20 76 6 08 Capacity Development 18, 5 50, 7 72 51 5 69 20

Expenditure estimates: Prog 3: Housing Delivery Support R thousand Compensation of employees Goods and services 2008/09 2009/10 2010/11 Medium-term estimates MTEF Baseline 29, 0 16 152, 1 79 37, 5 89 195, 6 80 3 43 202 75 Provincial Revenue Funds - - - Departmental agencies and accounts - - - Machinery and equipment 1, 7 31 1 27 70 70

Expenditure trends • Expenditure increases from R 143. 9 million in 2007/08 to R 243 million in 2010/11, at an average annual rate of 19. 1 %. • The increase is seen in the Capacity Development sub-programme and is mainly due to improved capacity for providing service delivery support to the housing sector. • Provision for communication activities has also increased significantly to ensure appropriate information reaches the public and stakeholders. • This results in an increase in expenditure on the goods and services item from R 126. 9 million in 2007/08 to R 202. 9 million in 2010/11, at an average annual growth rate of 16. 9 %. 71

Prog 4: Housing Development Finance • Purpose – Fund national housing and human settlement development programmes in terms of the Housing Act (1997). – Provide financial, grant and housing institutions management. – Manage all matters provided for by the Home Loan and Mortgage Disclosure Act (2000). 72

Expenditure estimates: Programme 4: Housing Dev. Finance R thousand 2008/09 2009/10 2010/11 Medium-term estimates MTEF Baseline Management 2, 189 3, 388 3, 591 Financial and Funds Management 33, 541 64, 707 70, 206 Housing Institutions and Funding Mobilisation 40, 117 20, 179 21, 389 Housing Equity 15, 118 6, 191 6, 563 Contributions 227, 739 326, 440 346, 026 Integrated Housing and Human Settlement Development Grant 9, 852, 842 11, 730, 823 14, 222, 73 672

Expenditure estimates: Programme 4: Housing Dev. Finance R thousand 2008/09 2009/10 2010/11 Medium-term estimates MTEF Baseline Compensation of employees 25, 3 47, 2 50, 4 44 89 30 Goods and services 63, 7 46, 9 51, 0 39 21 48 Provincial Revenue Funds 9, 852, 8 11, 730, 8 14, 222, 6 42 23 72 Departmental agencies and accounts 227, 7 326, 4 346, 0 39 40 26 Machinery and equipment 1, 8 2 82 05 17 Software and other intangible assets 74 - 50 54

Expenditure trends • The average annual increase of 32. 9 % between 2007/08 and 2010/11 in goods and services makes provisions for contractors, consultants and special services, which increases to R 44. 8 million to support the establishment of the anticipated Housing Development Agency. • Transfer payments to departmental agencies and accounts, which are seen in the Contributions sub-programme are set to increase from R 257. 2 million in 2007/08 to R 346 million in 2010/11, an ave annual increase of 10. 4 %. • This increase includes provision for setting up the Social Housing Regulatory Authority to provide support to social housing institutions to manage affordable rental housing. • Other transfers over the medium term are made to the Social Housing Foundation and to Thubelisha Homes. • As the unit that monitors trends in housing finance, in terms of the Home Loan and Mortgage Disclosure Act (2000), becomes operational, Housing Equity has been created as a separate subprogramme from 2008/09. 75

Conditional Grant Allocations 2008/09 to 2010/11 Provinces 2008/09 R`000 2009/10 2010/11 EASTERN CAPE 1, 251, 018 1, 510, 127 1, 865, 963 FREE STATE 772, 410 907, 708 1, 093, 849 GAUTENG 2, 579, 974 3, 004, 848 3, 569, 999 KWAZULU-NATAL 1, 575, 586 1, 891, 017 2, 353, 255 LIMPOPO 783, 247 939, 677 1, 168, 678 MPUMALANGA 629, 210 749, 963 923, 644 NORTHERN CAPE 161, 312 199, 332 258, 638 NORTH WEST 896, 102 1, 037, 154 1, 219, 807 WESTERN CAPE 1, 203, 984 1, 490, 999 1, 768, 840 TOTAL 9, 852, 842 11, 730, 823 14, 222, 672 76

Summary of estimated outputs per subsidy instrument 77

Summary of estimated outputs per subsidy instrument 78

Summary of estimated outputs per subsidy instrument 79

Thank you 80