DEPARTMENTAL PERFORMANCE

REPORT APRIL- JUNE 2012

PORTFOLIO COMMITTEE FOR HUMAN SETTLEMENTS

CONTENTCONTENT

1. Delivery performance2. Annual Performance Plan Monitoring3. Overall Departmental Performance4. Communication and Outreach5. Job Creation6. Accreditation of Municipalities7. Entities performance8. Financial Matters

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ANNUAL PERFORMANCE PLAN MONITORINGANNUAL PERFORMANCE PLAN MONITORING

Programme / Sub-ProgrammeTotal

Approved Targets

Targets Achieved

Total and (%)

Targets Not Achieved

Total and (%)Office of Director – General 7 4 (57) 3 (43)

Corporate Services (CS) 15 14 (93) 1 (7)

Human Settlements Delivery Frameworks (HSDF)

16 6 (38) 10 (62)

Human Settlements Strategy and Planning (HSSP)

13 5 (38) 8 (62)

Programme and Project Management Unit (PPMU)

15 9 (60) 6 (40)

Office of Chief Financial Officer (CFO) 8 7 (88) 1 (12)

Office of Chief of Operations (COO) 19 14 (74) 5 (26)

National Department of Human Settlements (DHS)

93 59 (63) 34 (37)

Overall Departmental Performance Overall Departmental Performance

COMMUNICATION AND OUTREACH COMMUNICATION AND OUTREACH

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• The Masimong - 4 CRU project was launched on 20th June 2012. • 1000 Stakeholders attended Govan Mbeki Human Settlements

Awards• 200 Stakeholders from various sectors attended the budget vote • 100 stakeholders from various sectors attended WUF Consultative

Workshop • 1000 community members attended youth build 2012 on 14 May

2012

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JOB CREATIONJOB CREATION

• During the quarter, 7,492 serviced sited and 24,168 top structures were delivered.

• This delivery translates into 12,223 based on the model approved for measuring job creation

• In terms of temporary employment approximately 25,844 jobs were created during the construction.

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ACCREDITATION OF MUNICIPALITIESACCREDITATION OF MUNICIPALITIES

• 18 Municipalities have been assessed for accreditation and the reports are under consideration by the Provinces.

• The Gauteng Provincial Department of Housing and Local Government has concluded the Implementation Protocols with the Metropolitan Municipalities.

• The Western Cape Department of Human Settlements and the City of Cape Town have also finalized their Implementation Protocol.

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SOCIAL HOUSING REGISTRATION AUTHORITYSOCIAL HOUSING REGISTRATION AUTHORITY

• The SHIP 2B Contracts signing was finalised in the first quarter

• The Call for Proposals for SHIP 3A investment programme was published.

• 7 Projects, yielding 2000 units were submitted for assessment

• Tenants have started moving into the units on projects approved in SHIP 2A: Fleurhof and Walmer Link

• The first draft of the National Social Housing pipeline has been completed and presented to a number of provinces for their consideration and adoption.

• The 2012/13 Annual Accreditation Programme accredited 28 SHI, an increase from 18 in 2011/12. 3 were unconditional, 14 were conditionally accredited; and 11 pre accredited.

• The SHRA hosted the Rooftops Canada delegation to review and advise on the SHRA’s regulatory implementation framework

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HOUSING DEVELOPMENT AGENCYHOUSING DEVELOPMENT AGENCY

• 4 Properties - 5187.6351 hectares in the North West Province approved by the Minister of DRLR for Rustenburg and Madibeng Municipalities for human settlements

• 4 Properties - 754.6182 hectares in the Free State Maluti-a-Phofung Municipality approved by the Minister of RDLR and National Treasury for release to the Municipality for human settlements

• 8 properties - 2 in Johannesburg, 2 Kroonstad, 1 Bethlehem, 1 Welkom and 2 Bloemfontein, acquired for human settlements development are currently at transfer and registration stages

• 19529.4485 hectares of public land have been identified against a target of 3000ha

• One (1) Implementation Protocol (IP) signed with the Western Cape Department of Human Settlements , 11 protocols maintained

• Participated in the councilor induction programmes as requested by the NDHS and SALGA

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HOUSING DEVELOPMENT AGENCY HOUSING DEVELOPMENT AGENCY

• Joint Coordinating Committee on Land meeting undertaken as planned for quarter exceeded annual targets

• Support provided to 11 municipalities and provinces for the quarter

• Free State office opened for the implementation of the signed Medium-Term Operational Plan

• N2 Gateway won ‘Best National Priority Project’ at the Govan Mbeki Awards

• Zanemvula won ‘Best Provincial Priority Project’ at the Eastern Cape leg of the Govan Mbeki Awards

• Informal settlements upgrading programme – preliminary assessment, audit and profiling of informal settlements in five municipalities in Limpopo

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NATIONAL URBAN RECONSTRUCTION HOUSING AGENCYNATIONAL URBAN RECONSTRUCTION HOUSING AGENCY

SUBSIDY HOUSING PROGRAMME : PERFORMANCE OF THE PROGRAMME HAS EXCEEDED TARGETS FOR THE FIRST QUARTER OF 2012/13

• 4 contracts were signed against the budget of 2

• Houses in contracts signed were 1 484 compared to the budget of 770

• Value of the signed loans was R18.8 million exceeding the target of R9.4 million

• Value of projects signed was R89.16 million against a target of R52.0 million.

• 1 781 houses were built against a target of 1 100

AFFORDABLE HOUSING PROGRAMME : PERFORMANCE IN THE PROGRAMME IS BELOW TARGET, WITH EXCEPTION OF HOUSES BUILT AND SITES SERVICED

• Value of Projects achieved R100 975 848 against a target of R120 000 000

• 706 Houses were built against a target of 500

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NATIONAL URBAN RECONSTRUCTION HOUSING AGENCY NATIONAL URBAN RECONSTRUCTION HOUSING AGENCY

INFRASTRUCTURE AND COMMUNITY FACILITIES PROGRAMME: OVERALL PERFORMANCE FOR THE FIRST QUARTER WAS DISAPPOINTING AGAINST TARGETS

• One(1) bridging finance loan was signed against a target of 4

• 4 Projects were completed against a target of 2.

• Value of Projects was R7.09 million which is also below target of R40 million for the quarter

• The poor performance can be attributed to the changes in the lending criteria and the winding down of the intermediary relationship.

• The performance in the remaining period and especially the second quarter will indicate the response of the market to the new products and the future impact in broadening access to finance

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RURAL HOUSING LOAN FUND RURAL HOUSING LOAN FUND

• RHLF’s performance for the first quarter ended June 2012 was satisfactory given the persistent tough markets in which the entity is operating in

• The number of incremental loans awarded total 9 939, exceeding the target of 9 551 by 388 loans – the average loan size was R7 627 against a target of R6 000, with 91% of the loans being used for housing (against a target of 80%), 77% of the loans were used for home improvements, 7% for home extensions, 5% for the acquisition of new homes and 3% for services

• RHLF has 12 intermediaries in place (against a target of 13) and 2 community based origination channels (against a target of 5) – acquiring additional distribution channels remains a challenge for the entity.

• Although the number of incremental loans awarded are higher than anticipated, the value of loans which total R340 543 000 are slightly under target by R2 825 000 (target value of loans is R375 495 988)

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RURAL HOUSING LOAN FUND RURAL HOUSING LOAN FUND

• Cash disbursements to retail intermediaries is under target by R9 108 000

• Actual cash disbursements total R16 267 00 against a target of R25 375 000 – the entity indicates that the rate of drawing down by its entities has not been as high as anticipated as some of the intermediaries have been struggling to disburse loans that are in compliance with the RHLF mandate – meetings are being held by RHLF’s management with the management of the intermediaries who have facilities in place to guide them to rectify this situation

• Disbursements to retail intermediaries (including mezzanine funds) exceeded target by R89 118 000 (Actual disbursements total R146 421 000 against a target of R57 303 000)

• 56% of the loans awarded went to households earning R3 500 and less and 84% of the loans went to households in non – metropolitan areas

• KZN had the highest number of loans awarded at 3 359 loans, followed by the EC at 2 696 loans and GP with 1 542 loans

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NATIONAL HOME BUILDERS REGISTRATION COUNCILNATIONAL HOME BUILDERS REGISTRATION COUNCIL

• The NHBRC has experienced a slow start to the financial year and the performance for the first quarter is low, however, the NHBRC has managed to meet some of its targets

• 711 new registrations of home builders were finalized against a target of 700

• 2 780 renewals were made against a target of 2 858, with the NHBRC missing its target by 3%.

• In the Non – Subsidy Sector,11 153 homes were enrolled, against a target of 10 357, resulting in an over-achievement of 10%

• Late enrolments were 350 against a target of 518 – late enrolments are a risk to the warranty fund and it is the intention of the NHBRC to reduce the late enrolment to below 5% of total enrolments

• The target number of inspections to be conducted for the first quarter was 56 800 and a total of 62 210 inspections were achieved, meaning that the target was achieved by 10%, of the 26,566 homes inspected, some of them were enrolled in the previous quarter of the 2011/2012 financial year and others were enrolled in the previous financial years

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NATIONAL HOME BUILDERS REGISTRATION COUNCIL NATIONAL HOME BUILDERS REGISTRATION COUNCIL

• For the Subsidy Sector, projects received totalled 11, with no projects being rejected, project enrolment was 15,454 and the performance was 4,830 units, the target for project enrolment negative deviation was 69% as projects submitted in Limpopo Northwest and Northern Cape were consolidated and only qualified under home enrolment and there was no submission by the Free State, most projects approved were from Kwazulu Natal with 5 projects

• In the Subsidy Sector, the target was 23,181 and actual performance was 46,404 units, meaning that the NHBRC achieved and exceeded by 100%, this achievement can be attributed to inclusion of enrolment of rural and PHP housing in KZN, where 17,602 units were approved

• NHBRC is still facing challenges with a number of Provincial Departments of Human Settlements in terms of ensuring that all projects are enrolled timeously, proactively however, NHBRC has engaged the Departments with an objective of ensuring that ALL houses, including rural and Peoples Housing Process (PHP) are enrolled, a positive response was received, and it is envisaged that enrolments will pick up

• With regards to inspections, 11,491 homes were inspected, and a total of 22 537 inspections were conducted.

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NATIONAL HOUSING FINANCE CORPORATIONNATIONAL HOUSING FINANCE CORPORATION

• The NHFC had a slow start to the financial year and performance is poor

• The historical trend is that the first quarter of each year is slow with respect to disbursements and this is consistent with the previous years’ experience

• Against a disbursement target of R319.75 million, NHFC only managed to disburse R29 million

• The Department expects improved performance in this regard for subsequent quarters because the critical focus in the second quarter and beyond will be the conversion of the committed funds into disbursements , which will convert into an improved developmental impact

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NATIONAL HOUSING FINANCE CORPORATION NATIONAL HOUSING FINANCE CORPORATION

• 490 housing units were delivered against a target of 2 356, no incremental loans were awarded in the first quarter (against a target of 2 166 incremental loans to be awarded), no commercial mortgage loans were awarded in the first quarter (against a target of 80), and no strategic investments were made in the first quarter (against a target of 159) – this translates into only 1 892 beneficiaries benefitting against a target of 21 499

• 980 of jobs were created through the NHFC in the first quarter against a target of 1 345

• With regard to the MDI, a working team has been established and is investigating a number of funding options, an application to the FSB for the short – term insurance license has been made , it is expected that a pilot project will commence with one of the banks from the third quarter of the financial year

• With regards to FLISP, good progress has been achieved during the quarter, to date, 6 provinces have concluded Implementation Protocols with NHFC with a total of R44 million committed to FLISP by these respective Provinces.

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ESTATE AGENCY AFFAIRS BOARDESTATE AGENCY AFFAIRS BOARD

• The registrations of new estate agents have increased dramatically for the first quarter of the 2012/13 financial year when compared against the same period in the 2011/12 financial years (3 132 in 2012/13 and 2 192 in the 2011/12 financial year) – the reason for this increase in the awareness and professionalisation of the industry created by the EAAB which has attracted more intern estate agents

• However, renewals in comparison to previous financial years have decreased; 2012/13 saw 1 167 renewals, compared to the 1 446 of the 2011/12 financial year

• 257 new disciplinary cases raised from complaints, 24 cases were completed within the quarter, 167 could not be acted upon

• There were no claims or appeals during the first quarter of the 2012/13 financial year• 121 inspections of estate agencies were conducted against a target of 300, even

though the target was not achieved, it still registers an improved performance of 32% as compared to the previous quarter

• With regards to training to education, 194 candidates were registered, 144 wrote the examination, 95 passed the examination

• The overall turnover for the first quarter is fairly on target with 2.91% over budget

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DEPARTMENTAL EXPENDITURE PER PROGRAMME DEPARTMENTAL EXPENDITURE PER PROGRAMME 30 JUNE 201230 JUNE 2012

ProgrammesFinal

Allocation1

Commitments2

Expenditure3

Variance= 1 - 3

% Spent

1. Administration 243,106,000 20,240,148 32,275,911 210,830,089 13%

2. Housing Policy, Research and Monitoring 46,719,000 2,726,797 6,888,118 39,830,882 15%

3. Housing Planning and Delivery Support 236,460,000 8,958,503 33,832,975 202,627,025 14%

4. Housing Development Finance 24,578,951,000 40,573,021 3,557,459,345 21,021,491,655 14%

5. Strategic Relations and Governance 157,944,000 27,282,927 20,295,806 137,648,194 13%

Total 25,263,180,000 99,781,396 3,650,752,155 21,612,427,845 14%

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GRANT AND TRANSFER PAYMENT GRANT AND TRANSFER PAYMENT 30 JUNE 201230 JUNE 2012

Transfer Payments Total Allocation Expenditure Variance % Spent

Human Settlements Development Grant 15,725,959,000 3,378,193,000 12,347,766,000 21%

Urban Settlements Development Grant 7,392,206,000 - 7,392,206,000 0%

Social Housing Regulatory Authority: Operational 21,096,000 - 21,096,000 0%

Social Housing Regulatory Authority: Capital Restructuring Grant 647,401,000 647,401,000 0%

Rural Housing Loan Fund 51,975,000 31,975,000 20,000,000 62%

Housing Development Agency 92,336,000 23,084,000 69,252,000 25%

National Urban Reconstruction and Housing Agency 100,000,000 100,000,000 0 100%

Bursaries Scheme 7,400,000 4,421,983 2,978,017 60%

UNHABITAT 1,075,000 79,305 995,695 7%

Rural Households Infrastructure Development 479,500,000 12,318,222 467,181,778 3%

Total 24,039,448,000 3,537,753,288 23,161,980,000 15%

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Human Settlements Development Grant ExpenditureHuman Settlements Development Grant Expenditure 30 June 2012 30 June 2012

Provinces

Total Available

Year to date (1 April 2011 - 30 June 2012)

Transferred Funds

Spent by Provinces

Variance Spent vs Transfer-

red

Variance Spent vs

Total Available

Transfer-red as

% of voted funds

Spent as % of Total

Available

Spent as % of

Transfer-red

Funds

Unspent as %

of Transfe

r-red Funds

Unspent as %

of Total Availabl

e R'000 R'000 R'000 R'000 R'000

Eastern Cape

2,292,859 320,387

242,312 78,075 2,050,547 14% 11% 76% 24% 89%

Free State 961,619 316,319

180,271 136,048 781,348 33% 19% 57% 43% 81%

Gauteng 4,003,776 959,136

514,085 445,051 3,489,691 24% 13% 54% 46% 87%

KwaZulu-Natal

2,915,297 654,221

526,978 127,243 2,388,319 22% 18% 81% 19% 82%

Limpopo 1,471,617 342,668

235,044 107,624 1,236,573 23% 16% 69% 31% 84%

Mpumalanga

965,127 188,045

187,552 493 777,575 19% 19% 100% 0% 81%

Northern Cape

339,551 66,454

44,563 21,891 294,988 20% 13% 67% 33% 87%

North West 1,050,933 326,379

255,950 70,429 794,983 31% 24% 78% 22% 76%

Western Cape

1,725,180 204,584

212,831 -8,247 1,512,349 12% 12% 104% -4% 88%

Total 15,725,959 3,378,193 2,399,586 978,60713,326,37

321% 15% 71% 29% 85%

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Delivery PerformanceDelivery PerformanceHSDGHSDG

Eastern Cape 17,366 17,999 35,365 951 1,294 2,245 (16,415) (16,705) (33,120) Free State 21,970 7 21,977 - 1,283 1,283 (21,970) 1,276 (20,694) Gauteng 14,536 26,348 40,884 2,007 3,460 5,467 (12,529) (22,888) (35,417) KwaZulu-Natal 9,305 29,399 38,704 2,352 5,256 7,608 (6,953) (24,143) (31,096) Limpopo 14,577 17,760 32,337 131 2,898 3,029 (14,446) (14,862) (29,308) Mpumalanga 5,914 10,015 15,929 176 3,455 3,631 (5,738) (6,560) (12,298) Northern Cape 2,785 2,646 5,431 278 222 500 (2,507) (2,424) (4,931) North West 3,717 10,167 13,884 195 3,952 4,147 (3,522) (6,215) (9,737) Western Cape 10,175 7,332 17,507 1,401 2,256 3,657 (8,774) (5,076) (13,850) Total 100,345 121,673 222,018 7,491 24,076 31,567 (92,854) (97,597) (190,451)

ProvinceAnnual Delivery Targets Delivery Performance as at 30 June 2012

Variance Delivery sites

Variance Delivery Top Structure

Total Variance DeliverySites(units)

Top Structure(units)

Total Delivery Targets Sites

Top Structure(units)

Total Delivery Performance

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Urban Settlements Development Grant ExpenditureUrban Settlements Development Grant Expenditure 30 June 2012 30 June 2012

MunicipalitiesTotal Available

Year to date (1 April 2011 - 30 June 2012)  

Transferred Funds

Spent by Municipality

Variance Spent vs.

Total Available

Spent as % of Total

Available

Unspent as % of Total Available

R'000 R'000 R'000 R'000

Buffalo City 423,446 423,446 132,093 291,353 31% 69%

Nelson Mandela 502,626 502,626 447,056 55,570 89% 11%

Mangaung 411,995 411,995 277,222 134,773 67% 33%

Ekurhuleni 1,094,276 1,094,276 1,043,439 50,837 95% 5%

City of JHB 1,027,970 1,027,970 954,444 73,526 93% 7%

City of Tshwane 891,081 891,081 788,502 102,579 88% 12%

eThekwini 1,091,574 1,091,574 1,063,205 28,369 97% 3%

City of Cape Town 824,030 824,030 752,765 71,265 91% 9%

Total 6,266,998 6,266,998 5,458,726 808,272 87% 13%

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Thank You