18: HOUSING - National Treasury

1 13518: HOUSINGAIMThe aim of the Department of HOUSING is to determine, finance, promote,co-ordinate, monitor and communicate policy in respect of HOUSING andhuman ESTIMATEST able Expenditure by programmeExpenditure outcomesPreliminaryoutcomeMedium term expenditureestimatesR million1995/961996/971997/981998/991999/ 002000/012001/02 Administration17,219,121,127,630,527,229 ,7 Policy development142,951,146,883,149,923,824,8 Housingperformance149,7545,51 815,8610,8470,1359,0100,6 South African1 HOUSING Fund821,321 453,222 634,923 019,12 971,12 905,33 417,0 Communication1,01,21,47,58,88,09,0 RDP projects55,0 Total987,12 070,14 520,03 748.

2 13 530,43 323,33 581,11 Spending by programme has been reclassified where possible to correspond to the current programme Authorised losses added: 1995/96 R0,2 million; 1996/97 R0,6 million and 1997/98 R0,1 million. Administration comprises financial management, personnel andprovisioning administration, legal and other office support servicesand the formulation of policy by the Minister and management of theDepartment. Policy development involves developing, integrating and buildingcapacity for implementing the National HOUSING and human settlementpolicy and strategy. HOUSING performance monitors HOUSING sector performance, manageshousing information, administers special projects, renders secretarialsupport services and provides support to HOUSING institutions.

3 The South African HOUSING Fund programme finances the nationalhousing programmes in terms of the HOUSING Act of National Expenditure Survey136 Communication comprises liaison with the media, co-ordinatingprovincial communication and planning and implementing nationalcommunication Economic classification of expenditureExpenditure outcomesPreliminaryoutcomeMedium term expenditureestimatesR million1995/961996/971997/981998/991999/ 002000/012001/02 CurrentPersonnel expenditure112,516,719,625,428,329,730,8 Other current expenditure19,813,617,445,639,233,537,8 Transfer payments151,398,12 605,83 084,83 141,93 024,43 426,7 CapitalTransferpayments801,81 940,41 872,9590,3319,8235,185,3 Acquisition ofcapital assets1,71,34,32,01,20,60,5 Total987,12 070,14 520,03 748,13 530,43 323,33 581,11 Departmental personnel expenditure includes employer s contributions to pension funds at a rate of 17 per cent of basicsalary in 1998/99 and 15 per cent of basic salary in subsequent RECEIPTSD uring 1995/96 R55 million from the Reconstruction and DevelopmentProgramme (RDP) was spent on special integrated urban developmentprojects, among others.

4 These were subsequently incorporated intodepartmental 1997/98 R6,7 million was received from the Government ofSwitzerland for the City Council of Port Elizabeth for the BloemendalBlock 23 South project. An amount of R255 000 was also received fromthe Netherlands for the Phola Park year R7,4 million was received from the European Union for theCato Manor HOUSING project. The Government of Switzerland againdonated R6,3 million for water and sanitation in the Bloemendal Block23 South project. USAID donated R958 000 to cover the cost of twoconsultants for the AND SERVICE DELIVERY TRENDSThe Department of HOUSING strives to provide South Africans with accessto a permanent residential structure with secure tenure, ensuring privacyand providing adequate protection against the elements.

5 HOUSING subsidyassistance to the very poor is one of the cornerstones of the Department for RDP projectsDonor fundingHousing137 Distribution of HOUSING subsidies by genderThe Department of HOUSING surveyed 200 000 new HOUSING subsidy allocations in seven provinces for its Housingand Urbanisation Information System (HUIS). The HUIS sample suggests that by August 1998, 37 per cent of allapproved subsidies were registered in the name of women. In the Eastern Cape, Northern Province and FreeState approximately 45 per cent of subsidies were registered to approved to August 1998 (excluding Gauteng and KwaZulu-Natal)Number ofwomen% womenNumber ofmen% menTotalnumberEastern Cape20 3854524 55155 44 936 Free State 12 7094415 9325628 641 Mpumalanga6 1092024 7868030 895 North West11 7133719 8316331 544 Northern Cape3 8382610 7347414 572 Northern Province7 017458 6465515 663 Western Cape13 5103722 9796336 489 Total75 28137127 45963202 740 Monitoring trends in the low-income HOUSING marketThe HOUSING Monitor tracks HOUSING units priced below R15 000 on project and project-linked subsidies.

6 By late1998, 1 000 HOUSING projects were active in this price range. The number of units per projects has also increasedunder the influence of the government s project-linked subsidies. In November 1994 only 108 of more than 500projects were detailed sample of 241 projects reveals that in 1998 about 93 per cent of the projects provided housingpackages and the reminder serviced sites. By contrast, in mid-1996, over 40 per cent of the projects providedserviced aims of the HOUSING subsidy assistance scheme have largely beenmet. Introduced in 1994 on a project-linked basis only, the schemeevolved into a comprehensive instrument providing an array of housingsubsidies to a broad spectrum of beneficiaries.

7 It allows several tenureoptions on an individual or group basis in urban areas. The scheme is tobe extended to rural families with functional security of tenure in terms ofthe Interim Protection of Informal Land Rights Act of scheme s successes include: From April 1994 to September 1998, 936 754 HOUSING subsidies wereapproved. During this period 629 449 HOUSING units were built. Approximately R7,5 billion has been spent on HOUSING delivery since1994. A delivery target of 300 000 units a year was reached during government supports the establishment of community-based, housingsupport centres. Working through existing community structures, thesesupport centres empower the community to set up an association to applyfor subsidies.

8 This greatly enhances the tempo of delivery. During theAchievements inrespect of the housingsubsidy schemeHousing supportcentres1999 National Expenditure Survey138pilot phase 25 HOUSING support initiatives or centres were established,reaching 21 082 33 000 beneficiaries of the former scheme will be supported untilthe scheme has been completely phased state-assisted homeowner saving scheme was terminated inJune 1995, but obligations to existing participants will continue R150 million was allocated to the public sector hostelsredevelopment initiative in 1996. By 1997/98, only 32 of the 182 publicsector hostels had been upgraded and 25 are under construction.

9 At theremainder of the complexes, negotiations are underway to determineupgrading and re-development special integrated presidential projects and urban renewal projects(SIPPs) upgrade services to selected communities. Examples includeprimary schools, child-care centres, skills training, street lights, water andsewerage, road upgrades and police units. Undertaken in all nineprovinces and initially funded from RDP services, these projects are nowperforming extremely well and the backlogs of the initial implementationstages have largely been overcome. The programme as a whole may beconcluded during 1999/00, as originally DEVELOPMENTSThe HOUSING Amendment Act of 1994 introduced a new approach tohousing.

10 The Second HOUSING Amendment Act of 1994 provides for thepayment of HOUSING funds and assistance to natural persons; executivecommittees of provincial HOUSING development boards; and the delegationof certain powers. The HOUSING Amendment Act of 1996 furtherregulates HOUSING finance through establishing and regulating the SouthAfrican HOUSING HOUSING Act of 1997 came into effect in April 1998. It facilitates asustainable HOUSING development process, provides general principles forall spheres of government and defines the HOUSING development functionsof each sphere. Provincial governments are currently finalising provincialhousing legislation required by the HOUSING Act of Prevention of Illegal Eviction from Unlawful Occupation of LandAct of 1998 was enacted in June 1998.