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02 September 2003

Earlier this year, we reaffirmed our commitment to working with our sister departments across a range of key intervention areas. We also emphasised the need for all stakeholders to play their respective roles in the delivery of houses in order to effectively deal with the backlog that we inherited. At the same time, we acknowledged the fact that our delivery of 1,5 million houses in the past nine years has taught us the importance of beneficiary participation in the construction of their houses.

A conscious decision we took last year with regards to increasing beneficiary participation in housing delivery and improving the quality of our low-cost houses is undoubtedly beginning to bear the desired results. People either contribute the required R2 479-00 or participate in the physical construction of their houses, contributing their sweat equity and meeting their own housing needs. The immediate outcome of the success of this approach has been the increase in the number of the people's housing process projects or self-building and the emergence of more and more bigger and better structures. The growth in popularity of self-building is a positive step for our housing programme as it means more and more of our poor communities are empowered in various skills. Of more importance is the fact that more benefits of self-building go to women and youth, who constitute more than 90% of people currently involved in this type of housing delivery.

As a measure to further enhance capacity for this programme, we have sought additional assistance in the form of 38 Cuban architects and engineers who have been deployed in the provinces as part of supporting the increased demand of this type of housing delivery. Cuba is one of the countries known for using a similar approach in housing construction, through what the Cubans call "building brigades" and through which skills are imparted to the community. This will significantly strengthen our capacity building initiative through PHP.

We are convinced that the success of the people's housing process, together with the increase in housing subsidies that I announced earlier this year, will allow us to increase further the quality of our housing. Our subsidies rose from April this year between 11,4% and 14,8% depending on the recipient's income and status. This practically means that people earning below R1500-00 and those suffering from ill health and disability have a better chance of getting homes of better quality.

It is also through our quest to improve quality and efficiency in housing delivery that we are also strengthening our working relations with interfacing ministries such as Land Affairs and Provincial and Local government. The two departments are assisting in ensuring rapid transfer of land and the improvement of efficiency within local authorities.

Social Housing Policy

The diversification of housing options for our beneficiaries remains one of our priorities. The recently developed Social Housing Policy will create an enabling environment for the social housing sector to develop, grow, and deliver (predominantly rental) housing stock at scale. This long awaited policy sets out the principles, interventions, and processes to ensure that sustainable, viable and active housing institutions are established and maintained.

The policy will culminate in the satisfaction of the needs of low to medium income members of our community, and those who wish to reside in rental accommodation as well as close to work opportunities. The policy also allows people to participate in the management of their living environment and exercise their right to permanent ownership of a residential property.

Until now single persons were excluded from access to the Government's housing assistance programme. Through the Medium Density Housing Development programme, it is envisaged that this will cater for the needs of single persons and persons with special housing needs. Other categories of persons currently excluded could also obtain access to the housing opportunities under the programme.

This policy intervention by Government therefore targets the lower to medium end of the rental market demand in as far as it requires an institutional delivery approach and as such it will have particular relevance to inner city regeneration.

Housing projects undertaken through this approach, will provide a variety of built form options, ranging from small one room apartments with shared facilities suitable to accommodate single persons through to two and three bedroom units for family occupation.

The need for Social and Community facilities must also be addressed in projects. It will furthermore comprise both the refurbishment of existing buildings (or the conversion of non-residential buildings into residential use) and the development of new housing in the greenfield context. Essentially, projects will cater for a social and income mix to ensure the achievement of integrated development and the promotion of financial viability of the social housing institutions.

Emergency Housing Policy

In addition, we have concluded development of a policy that will help us deal with emergency housing needs caused by natural and other disasters as well as people living under stressful conditions, floodplains and adverse geotechnical conditions. Almost every year people, especially those living in informal settlements, suffer as a result of houses destroyed by fire or rain and storms.

Furthermore, various events such as the severe floods during 2000 and 2001 and the landmark judgement of the Constitutional Court in the Irene Grootboom case led to this policy decision. Our understanding is that as we continue to provide decent housing for the poor, we should also be in a position to assist those who are affected by these calamities.

My Department has taken a decision to establish a dedicated fund through which to render financial assistance in the form of grants for those affected with effect from next year, as a separate budget programme. The purpose of the proposed Programme is to provide assistance in the form of secure access to land, basic engineering services and/or shelter in a wide range of situations of emergency housing needs, through the allocation of grants to municipalities instead of housing subsidies to individuals.

Prevention of illegal Eviction and unlawful occupation of land Amendment Bill

Arising out of the Supreme Court of Appeal case of Ndlovu/Bekker handed down on 30 August 2002, the previous Minister instituted an investigation on the impact of this decision on the administration of rental housing in South Africa. It has therefore become necessary to exclude tenants who fail to vacate their rented premises after the lease has been terminated and mortgagors who remain in occupation after the bank has foreclosed on the bond from the operation of the Act.

I must point out that it was never our intention to include tenants and mortgagors who had prior consent to occupy under the provisions of the Act, which was promulgated to deal with the problems relating to unlawful occupation of land, not disputes arising between landlords and tenants or banks and mortgagors.

We have therefore thought it necessary to ensure that the Bill specifically excluded residential buildings and also deal effectively with people who allow land to be invaded for personal gain. The Bill will also make it an offence for a person to arrange an unlawful occupation of land.

Interested parties have until 29 September 2003 to comment on the draft Bill. Thereafter the Bill will be amended in the light of the comments received, if necessary, and then be resubmitted to Cabinet for final approval for introduction to Parliament.

Community Reinvestment (Housing) Bill

As you might already be aware, the Community Reinvestment (Housing) Bill has been deferred to allow for its contextualisation and realignment to take place. Given other important concurrent initiatives with which some alignment must be forged, this becomes both necessary and desirable. First, there is the Financial Charter, which is a broad-based attempt to leverage empowerment, fairness and accessibility initiatives within the financial sector. The Charter includes, as a subset, access to housing finance by low and medium income level households.

Then, there is, in terms of Chapter 4 of National Treasury's Budget Review, a commitment of R1, 3 billion in tax revenue over four years to benefit owners (as users, lessors and financiers) investing in commercial and residential buildings located in fifteen selected metropolitan areas. The details around this are being finalised and are being devised in such a way that they enhance the provisions of the social housing policy that I have spoken about.

These and other initiatives have a direct bearing on Community Reinvestment objectives and institutional arrangements. All of this will be detailed at the Housing Summit planned for later this year. We have concluded the provincial workshops in preparation for the summit, which is aimed at engaging our stakeholders in policy development.

Corruption

Lastly, let indicate that apart from the cases that were handed over to the Director of Public Prosecutions, a task team has been subsequently appointed by the NPA, which is comprised amongst others, of members from the Special Operations Unit and the Asset Forfeiture Unit.

At a preliminary meeting held between the Director-General and the members of the NPA, 8 April 2003, it was decided that this Task Team would focus on the findings as contained in the Gobodo reports as a short-term measure.

In attempt to increase customer service delivery the department has established a Customer Call Centre, Toll Free Line to offer assistance to people from all demographics relating to housing. The Customer Call Centre number is 0800 203 271

Further enquiries: Mandla Mathebula (0833041536)

Issued by Ministry of Housing

2 September 2003