PRE-BUDGET HEARINGS

16 February 2007

1Together, helping people to house themselves

KwaZulu-Natal Department of Housing

KZN HousinguMnyango:wezeZindluISIFUNDAZWE SAKWAZULU-NATALIKZN HousinguMnyango:wezeZindluISIFUNDAZWE SAKWAZULU-NATALI

Together, helping people to house themselves


KZN HousinguMnyango:wezeZindluISIFUNDAZWE SAKWAZULU-NATALI



2007/08 to 2009/10

PRE-BUDGET HEARINGS


16 February 2007 2

KZN HousinguMnyango:wezeZindluISIFUNDAZWE SAKWAZULU-NATALI 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 3

KZN HousinguMnyango:wezeZindluISIFUNDAZWE SAKWAZULU-NATALI Mission

The mission of the department is: -

To effectively and efficiently manage the implementation of National and Provincial

Housing Programmes in partnership with the relevant role players, by developing sustainable human settlements characterised by affordable and adequate shelter for qualifying citizens in

KwaZulu-Natal


16 February 2007 4

KZN HousinguMnyango:wezeZindluISIFUNDAZWE SAKWAZULU-NATALI Key Focus Areas

• The following are the key focus areas were identified during the strategic plan review:– Eradication of slums in KZN by 2014– Strengthening governance and service delivery– Ensuring job creation through housing delivery– Accelerating housing in rural areas– Accelerating the hostels redevelopment and upgrade programme.– Completion of all blocked projects by 2007– Creating rental/social housing opportunities– 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 5

KZN HousinguMnyango:wezeZindluISIFUNDAZWE SAKWAZULU-NATALI Budget Allocation

R’000

2006/07

Adj Est

2007/08 2008/09 2009/10

Administration 74 085 79 245 84 550 90 891

Housing Planning and Research

27 991 21 541 19 446 25 904

Housing Development Implementation

985 672 1 192 142 1 460 612 1 756 446

Housing Property Management

163 435 227 922 232 180 223 467

Total 1 251 183 1 520 850 1 796 788 2 096 708


16 February 2007 6

KZN HousinguMnyango:wezeZindluISIFUNDAZWE SAKWAZULU-NATALI Budget Allocation

-

200 000

400 000

600 000

800 000

1 000 000

1 200 000

Admin Housing Planning &Research

Housing DevelopmentImplementation

Housing PropertyManagement


16 February 2007 7

KZN HousinguMnyango:wezeZindluISIFUNDAZWE SAKWAZULU-NATALI Administration

AdministrationR79,245

HODR8,790

Corporate ServicesR32,984

Risk ManagementR10,895

FinanceR24,653

CommunicationsR1,923


16 February 2007 8




R21,541

Admin SupportR6,677

PolicyR2,567

PlanningR4,735

Capacity BuildingR7,562


16 February 2007 9



Key Stategic Key Performance 2006/07 2007/08Objectives Measurable Measure Estimate Budget

Objectives

Facilitate Accreditation of municipalities

Number of municipalities accredited - 1

Number of training workshops provided to municipalities

12 16

Number of visits executed to support municipalities

500 100

Provide training to housing consumers

Number of housing consumers trained

15 000 20 000

Assist municipalities to develop Housing Development Plans

Number of Housing Development Plans in place

26 18

Development of policy guide for housing programmes

Number of policy guideline developed 4 4

Research Number of research projects conducted

2 2

Facilitation of capacity building for stakeholders in Housing Provide training to municipalities on

housing

Strengthening governance and service delivery


16 February 2007 10



Housing Development ImplementationR1,192,142


Individual SubsidiesR54,600

Planning and ServicesR359,975

Operational CapitalR7,000

Top Structure ConstructionR518,012

Affordable State Rental ProgrammeR75,600

Social and Economic FacilitiesR120,000


16 February 2007 11

KZN HousinguMnyango:wezeZindluISIFUNDAZWE SAKWAZULU-NATALI Service Delivery Targets

Units R’000

• Project linked subsidy– Sites:-

• Normal 5,320 86,290• Informal settlement 5,721 96,873• Blocked 788 12,608

– Topstructures:-• Normal 3,700 85,100• Informal settlement 5,497 125,001• Blocked 3,212 37,392


16 February 2007 12


Units R’000

• Peoples Housing Process– Sites 5,371 90,639– Topstructures 4,800 114,144– Establishment grant 8,500

• Rural– Sites 2,800 44,765– Topstructures 3,100 71,300


16 February 2007 13


Units R’000

• Emergency housing– Sites 1,800 28,800– Topstructures 500 17,000

• Rectification– Topstructures 841 20,000

• Consolidation– Topstructure 450 11,515

• Institutional– Topstructure 700 28,060


16 February 2007 14




Objectives

Individual Number of subsidies approved 1 200 1 350 Number of subsidies approved 10 250 13 300 Number of houses completed 7 000 12 409 Number of subsidies approved - - Number of houses completed 10 086 4 800

Consolidation Number of subsidies approved 220 450 Institutional Number of subsidies approved 4 1 180 Relocation Number of subsidies approved 50 20 Disaster Number of subsidies approved 7 000 7 500

Number of subsidies approved 25 640 11 200 Number of houses completed 1 573 3 100 Number of properties transferred 10 638 13 000 Number of subsidies approved 44 364 35 000 Number of sites completed 23 521 21 800 Number of houses completed 18 659 22 800 Number of units upgraded 3 500 4 000

Social and Economic Amenities Number of projects implemented 4 10

Development of sustainable human settlements Project Linked

Peoples Housing Pocess

Hostel Redevelopment Programme

Rural Housing

All subsidy instruments

Implementaion of national housing programmes


16 February 2007 15




R227,922


Housing Properties MaintenanceR138,880

Discount Benefit SchemeR36,488


16 February 2007 16




Objectives

Rental Tribunal Number of cases resolved 1 200 1 200

Discount Benefit Scheme Number of residential properties transferred

10 000 10 000

Devolution of Rental Stock Number of Houses and properties devolved to municipalities

1 000 1 000

Maintanance of all rental units Number of units maintained 5 000 5 000

Strengthening governance and service delivery

Regulate the relationship between the landlords and tenants

Creation of Humane living conditions for hostel residents


16 February 2007 17


Conditional Grant Business Plan

• The department is in the process of finalising the Conditional Grant Business Plan for the 2007/08 financial year

• This plan is fully aligned to the Annual Performance Plan and Budget Statement of the department

• The compliance to this plan will be reported on a quarterly basis as part of the department’s quarterly reporting process


16 February 2007 18

KZN HousinguMnyango:wezeZindluISIFUNDAZWE SAKWAZULU-NATALI 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 19

KZN HousinguMnyango:wezeZindluISIFUNDAZWE SAKWAZULU-NATALI Conditional Grant

Integrated Housing and Human Settlement Development Grant

R1,310,555

Discount Benefit SchemeR36,488

Individual SubsidiesR54,600

Planning and ServicesR359,975

Operational CapitalR7,000

Top Structure ConstructionR518,012

Affordable State Rental ProgrammeR75,600

Social and Economic FacilitiesR120,000

Housing Properties MaintenanceR138,880


16 February 2007 20

KZN HousinguMnyango:wezeZindluISIFUNDAZWE SAKWAZULU-NATALI 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 21

KZN HousinguMnyango:wezeZindluISIFUNDAZWE SAKWAZULU-NATALI 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 (±R5,5million) in terms of this agreement

• It is anticipated that the department will receive R1,56 million during the 2007/08 financial year for this programme


16 February 2007 22

KZN HousinguMnyango:wezeZindluISIFUNDAZWE SAKWAZULU-NATALI Conclusion

• In conclusion it should be noted that the department – continues to show clear contributions to the

achievement of Provincial Priorities;– remains committed to integrated development;– will facilitate the integration of the housing sector

plans with the Municipal Infrastructure Grant (MIG)– will participate fully in the development of

municipal IDPs

16 February 2007

23Together, helping people to house themselves


KZN HousinguMnyango:wezeZindluISIFUNDAZWE SAKWAZULU-NATALIKZN HousinguMnyango:wezeZindluISIFUNDAZWE SAKWAZULU-NATALI



Thank you

Documents

PRE-BUDGET HEARINGS