C OMPONENT A: B ASIC S ERVICES
2.11 H OUSING
The Housing and Human Settlements department is responsible for housing provision and allocation of houses to qualifying beneficiaries. The housing functions performed by the department are based on the prescripts of the Housing Act 107 of 1997.
The department provides the following services to the citizens of the City of Tshwane:
• Formalisation of informal settlements
• Management and eradication of housing backlogs
• Development and management of social housing and rental stock
• Land acquisition
• Ensure security of tenure
• Housing delivery
• Providing a wide range of rental housing options for Tshwane residents
• Offering special-needs housing for the aged, the disabled, people with HIV and AIDS, and children who are orphaned by HIV and AIDS
• Providing a mechanism to resolve disputes between landlords and tenants
• Regularising informal settlements
• Facilitating and creating conducive environment, through identification of strategic land parcels and properties for development of social housing
• Providing incremental low-cost housing for households earning less than R3 500 per month
• Providing houses in mixed developments
The following were achieved in the 2013/14 financial year:
• 183 houses in Danville (Elandspoort) (Phase 1) handed over to beneficiaries.
• 877 houses were completed in Thorntree View.
• 600 stands in Olievenhoubosch Ext 27 have been serviced with bulk water and sewerage.
• Two parcels of vacant land has been acquired in Riamar Park and Zithobeni heights.
• 51 informal settlements formalised (14 serviced and 37 unserviced stands).
• 58 147 households in informal settlements with access to basic water (jojo tanks and water tanks).
• 1 816 housing beneficiaries were allocated houses.
• 973 houses (top structures) were built to eradicate backlog
• 80km of roads and stormwater provided
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• 232 hectares of land was acquired for human settlement purposes.
PROPERTY REGISTRATIONS AND TITLE DEEDS The following have been accomplished:
• 8 011 title deeds were issued to homeowners.
• 5 054 title deeds were registered to new homeowners
The following communities benefitted from the process of housing registration and title deeds:
• Region 1 (Soshanguve, Mabopane, Winterveld, Ga-Rankuwa
• Region 2 (Temba, Hammanskraal, Stinkwater, Kudube)
• Region 3 (Atteridgeville, Elandspoort)
• Region 4 (Olievenhoutbosch, Laudium)
• Region 6 (Mamelodi, Nelmapius)
• Region 7 (Rethabiseng, Zithobeni)
On 5 October 2013, Executive Mayor, Cllr Kgosientso Ramokgopa; MMC for Housing and Human Settlements, Cllr Joshua Ngonyama, and the then Minister of Trade and Industry, Ms. Elizabeth Thabethe, handed over 2 296 title deeds to beneficiaries of RDP houses in Hammanskraal Proper, Hammanskraal West Proper, Hammanskraal West Ext 1, Stinkwater RDP, Stinkwater Ext 1 to 3 and Stinkwater Ext 4 to 8.
The process of handing over title deeds is part of the City’s Re Aga Tshwane Programme which is aimed at promoting security of tenure for all beneficiaries in the City.
Figure 9: Handing over title deeds to residents of Hammanskraal
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SPEEDING UP THE FORMALISATION PROCESS
The following interventions have been put in place to speed up the formalisation process:
Establishment of the Special Mayoral Task Team on Formalisation and Proclamation (Re Aga Tshwane)
This programme has the following guiding principles:
• Formalize informal settlements with the provision of basic services and amenities
• Proclaim all un-proclaimed towns
• Relocate people who are residing in unsuitable and dangerous conditions/land
• Provide community members with title to their land
• Enhance revenue protection and generation
• The aim of this also to ensure that all new settlements are provided with parks, street names, waste removal services and the provision of ultra-thin concrete roads thus completing the cycle of building liveable communities as expressed in our Vision 2055.
During the financial year 2013/14 the Department through its water and sewer programme, provided water and sewer connections to the following areas. The table below indicates the relocation of households.
Table 37: Relocation of households
ERADICATED RELOCATED TO
REGION 6
1 Phomolong Glenview Station Heatherly Portion 27 and 28
2 Phomolong Rand Water Board ( Water Pipe)
Heatherly Portion 27 and 28
3 Mamelodi Phase 1 Heatherly Portion 27 and 28
4 Morgan Village Heatherly Portion 27 and 28
5 Morgan Village Mahube Ext 15
6 Mamelodi Phase 2 Mahube Ext 15
7 Mamelodi Phase 3 Mahube Ext 15
8 Mamelodi Phase 4 Mahube Ext 15
9 Mountain View Mahube Ext 15
10 K54 Mahube Ext 15
11 Mamelodi Ext 22 (School Site) Mahube Ext 15
12 Mamelodi West (Erf 2005) Soul City Nellmapius Ext 6
13 Phase 3 Nellmapius Ext 6
14 Phase 3 Mahube Valley Ext 2
(Erf 2742)
Provincial government set a target of 5 677 houses and 650 units to be built for 2013/14. A total of 6406 houses and 178 units were built in the City of Tshwane area.
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STRATEGIC PARTNERSHIPS
The Department has partnered with National Department of Human Settlements through the National Upgrading Support Programme to assist in fast tracking the formalization of informal settlements. About 30 informal settlements were identified where the status quo analysis is still in progress.
The Department has partnered with North West Housing Corporation and the Gauteng Department of Human Settlements to facilitate the transfer of former North West cross border properties to qualifying beneficiaries.
The Department works together with the Department of Military Veterans to ensure the fulfillment of the city’s strategic objective of allocating houses to qualifying military veterans.
In its efforts to escalate delivery of Institutional and social housing units, the Department has entered into a Memorandum of Understanding with the Gauteng Partnership Fund (an entity of Gauteng Department of Human Settlements) to build capacity and facilitate a conducive environment for social housing development within the City.
FLAGSHIP PROJECTS
During September 2013, the City of Tshwane in partnership with Nissan South Africa, launched a flagship housing project in Ga-Rankuwa to improve the lives of 200 families in the township. The city also donated 200 stands to Nissan; as a contribution to fast track the process of restoration of dignity to the beneficiaries. The City of Tshwane exempted Nissan from building control registration fees to allow it to build houses through its Blue Citizenship global housing initiative. The first phase of the project realised 50 houses being built by the end of the 2013 calendar year.
ANALYSIS OF THE HOUSING FUNCTION Table 38: Analysis of housing
Employees: Housing Services
Job Level
2012/13 2013/14
Employees Posts Employees Vacancies
(fulltime equivalents)
Vacancies (as a % of total posts)
No. No. No. No. %
0 – 3 1 1 1 0 100%
4 – 6 14 22 15 7 22.73%
7 – 9 21 45 13 32 71.11%
10 - 12 13 0 0 0 0%
13 - 15 7 32 25 7 78.13%
16 - 18 12 12 12 0 100%
19 - 20 3 17 5 12 29.41%
Total 71 129 71 58 66.90%
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CAPITAL EXPENDITURE OF HOUSING DEPARTMENT
Table 39: Capex Housing
Department Project Name WBS Level 3 Original Budget 2013/14
Adjusted Budget 2013/14
Current Budget 2013/14
Cumulative Actual
Housing and Human Settlement
Project Linked Housing - Housing Facilities
9.710860.1.004 - 2,293,422 2,293,422 2,159,543
Housing and Human Settlement
Project Linked Housing - Water Provision
9.710863.2.004 20,300,000 20,300,000 20,300,000 -
Housing and Human Settlement
Project Linked Housing - Water Provision
9.710863.2.005 5,000,000 5,000,000 5,000,000 3,415,408
Housing and Human Settlement
Sewerage - Low Cost Housing
9.710864.2.004 20,300,000 20,300,000 20,300,000 -
Housing and Human Settlement
Sewerage - Low Cost Housing
9.710864.2.005 5,000,000 5,000,000 5,000,000 3,433,670
Housing and Human Settlement
Roads & Stormwater - Low Cost Housing
9.710865.2.005 383,824,650 383,824,650 383,824,650 333,165,213
Housing and Human Settlement
Project Linked Housing - Acquisition Of Land
9.710868.2.004 17,429,000 17,429,000 17,429,000 -
Housing and Human Settlement
Project Linked Housing - Acquisition Of Land
9.710868.2.005 76,000,000 76,000,000 76,000,000 75,914,000
Housing and Human Settlement
Project Linked Housing - Acquisition Of Land
9.710868.2.015 6,000,000 6,000,000 6,000,000 5,999,700
Housing and Human Settlement
Water Low Cost Housing 9.710898.1.015 22,949,621 22,949,621 22,949,621 -14,423,025
Housing and Human Settlement
Winterveldt Land Management Program
9.711489.2.015 13,000,000 13,000,000 13,000,000 12,081,348
Housing and Human Settlement
Upgrading/Refurbishment of Schubart & Kruger Park
- - - - -1,832,239
Housing and Human Settlement
Capital Funded from Operating
9.712757.1.007 500,000 - 500,000 -1,832,239
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HOUSING COMPANY TSHWANE (HCT)
PROVISION OF SERVICES BY THE ENTITY
The entity currently offers affordable rental housing to the general market through it building Eloff Gebou.
Housing Company Tshwane is also mandated with management and maintenance of Clarina Residential complex, a City of Tshwane owned residential property. Furthermore, the entity has recently at the end of quarter four (4) received the transfer for two (2) additional rental properties (Blesbok and Bosbok) from the City of Tshwane for management and maintenance.
The HCT mandate is as follows:
Develop, own and manage affordable rental housing opportunities close to employment nodes, transport nodes, social amenities and related public services for households earning between R 3 500 and R7 500 ( as revised by the National Department of Human Settlements from time to time).
Provide rental housing accommodation for people who do not qualify for subsidy and are unable to participate in the formal, non-subsidised housing market.
Provide property management and turnaround services for low to medium density social or rental accommodation
Manage all CoT Council owned rental Stock
HCTSTRATEGIC OBJECTIVES
Social Housing is one of the housing programmes designed by National Department of Human Settlements to offer quality, affordable and easily accessible housing opportunities within the Inner city. In the City of Tshwane (CoT), social housing is seen as a vehicle to bring the less affluent people closer to the city centre.
The CoT is conscious of the fact that the independent management of social and rental housing stock by HCT would relieve the pressure on municipal finances by dedicating the collection or rentals to an entity without ‘municipal baggage’, and that the non-payment culture and trends exhibited in municipal rental stock would be reversed.
Housing Company Tshwane had the following strategic objectives for FY 2013/14.
Table 40: HCT strategic objectives City of Tshwane Strategic
Objective
HCT Strategic Objective Key Performance area(s) 1. Sustainable Basic
Services Infrastructure and Human Settlements
1. Provide new Social Housing units on a sustainable basis
Increase in number of new social housing units built (refer to the scorecard for quantifiable targets)
2. Promote effective and efficient management of HCT and Social Housing portfolio (manage social housing stock in accordance with industry norms, and standards as defined by the social housing regulator from time to time)
Full compliance with legislative and risk management frameworks and policies effective housing stock management
4. Promote good governance and active citizenry
4. Promote sound governance Full compliance with legislative and risk management frameworks
Good corporate governance
*Tenant involvement and participation in social housing planning, implementation, management
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City of Tshwane Strategic Objective
HCT Strategic Objective Key Performance area(s)
and monitoring (sound client management services)
5. Improved Financial Sustainability
3. Strive for financial sustainability by 2017 (conduct business in a manner which maximises revenue collection from a growing social housing stock)
Prudent credit control and revenue management (rentals)
Effective financial management
HCTSERVICE DELIVERY HIGHLIGHTS HCT during FY 2013/14:
• Continued to successfully manage ELOFF building, a 95 unit residential building owned by Housing Company Tshwane.
• Received conditional Accreditation by the Social Housing Regulatory Authority (SHRA).
• The Housing Company Tshwane board was active and functioned for an entire financial year without any problems. Twelve (14) regular and eight (10) sub-committee scheduled board meetings were held during the 2013/14 financial year.
SERVICE DELIVERY AGREEMENT (SDA) BETWEEN THE ENTITY AND THE PARENT (MUNICIPALITY)
The implementation of the Service Delivery Agreement (SDA) was initiated during 2010/11, with a newly signed SDA in November 2013. The SDA spells out the relationship between HCT and the CoT with respect to the discharging of the social housing delivery mandate. The SDA also spells out the roles and responsibilities of both the HCT and the CoT, the land development process (including future social housing projects to be developed and managed by HCT). The SDA also governs among other things the deliverables and performance milestones expected from HCT as the City’s social housing delivery agent, and also stipulate the financial and other support to be given to HCT by the City of Tshwane.
With the finalization of the Service Level Agreements between the City and HCT in June 2014 for the management and maintenance of Clarina residential complex and other eight (8) rental properties, the entity has begun implementing management processes as outlined in the SLA’s for the transferred rental stock. This covers the aspects of the SDA that could not be implemented (e.g. the management of newly- refurbished City of Tshwane rental units/ buildings), and this has affected the company’s performance in terms of the set targets for 2013/14. The plan for 2013/14 is to gradually build the portfolio under management by pursuing a strategy based on existing properties and new-builds where possible. This is in line with the newly revised SDA (the old SDA expired 30 April 2013).
The currently approved Service Delivery Agreement between the City and Housing Company Tshwane states that the entity should deliver social housing and affordable rental housing as a contribution to the housing demand in the City.
These above mentioned properties are the rental stock under HCT‘s management, while there is an incremental programme to increase HCT’s rental stock by transferring the city’s rental stock to HCT for management.
The performance of HCT against its scorecard may be found later in this report in the section reporting on the scorecard (Component I).
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HCTHUMANRESOURCES
The Human Resources Committee consists of the following non-executive directors:
Dr. William Rowland
Ms. Dombolo Masilela
The committee advises the board on remuneration policies, remuneration packages and other terms of employment for directors and senior executives. Its specific terms of reference also include recommendations to the board on matters relating inter alia, general staff policy, remuneration, bonuses, director’s remuneration and fees.
The table below provides an indication of the HCT human resources.
Table 41: Human Resources Head count per unit 2013/14 Units Units No. of
posts
No. of filled posts
No. of vacancie s
Vacancies
%
Challenges Intervention/Action to be taken
Chief Executive Officer
2 0 2 100% No challenges,
applications have been received.
Screening and selection process for suitable candidates underway. The interview processes expected to commence on the week of 28 August 2014.
Finance Departme nt
5 4 1 20% The entity has in the
past been managing minimal rental stock and current staff members have been coping with the workload.
Processes underway to fill the vacant post in the finance department by the first quarter of 2014/15 financial year.
Property Managem ent
14 7 7 50% The entity has a had a
delay in the implementation of filling in these positions due to minimal rental stock under
management, however this is being addressed as the entity recently received rental stock transferred to it by the City.
Interviewing process for the Property Manager position expected to commence on the week beginning 21 July 2014. Outstanding vacancies to be filled will be
implemented on the first quarter of 2014/15 financial year.
TOTAL 21 11 9 43%
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EMPLOYEE EXPENDITURE
Table 42: HCT employee expenditure
HCT BOARD OF DIRECTORS
The board’s primary role is to ensure that the company meets its mandate through its planning and operations. To this end, the board gives strategic direction to the company and plays an oversight role over the company’s management.
The Board is responsible for the oversight and implementation of good governance in the conduct of business as well as strategy development and implementation in line with good ethics and for maintaining relationships with all stakeholders in order to achieve the corporate objectives. These include:
• Giving strategic direction to the future of the Entity;
• Monitoring and overseeing management’s performance; and
• Be accountable to the stakeholders, in particular, the City of Tshwane, in terms of the SDA and the relevant statutory framework.
HCTBOARD COMMITTEE MEETINGS 2013/14FINANCIAL YEAR
Table 43: HCT Board Committee Meetings Name of Board
Member
Board meetings, Retainer (80% attendance) &
meetings with Shareholder
Risk, Ethics and Finance Committee
Human Resource committee
Projects Committee
Total
T Phetla R228,042 R228,042
D Masilela R148,469 R20,568 R191,379
M Mphahlele R170,811 R20,568 R191,379
M Lehlokoa R175,601 R61,704 R237,305
W Rowland R135,590 R27,424 R163.014
T Mokgoro R163,088 R20,568 R183,656
A Singh R150,243 R35,994 R186,237
S Kholong R123,806 R15,426 R46,278 R185,510
HOUSING COMPANY TSHWANE BOARD OF DIRECTORS Table 44: HCT Board of Directors
Board Member
Capacity: Executive / Non- Executive
Race Gender Board Committee Membership
T Phetla Non-Executive ( Chairperson) Black Male
D Masilela Non-Executive Black Female Human Resource
M Mphahlele Non-Executive Black Male Risk, Ethics & Finance
M Lehlokoa Non-Executive Black Female Projects
W Rowland Non-Executive White Male Human Resource
T Mokgoro Non-Executive Black Male Risk, Ethics & Finance
A Singh Non-Executive Indian Male Projects
S Kholong Non-Executive Black Male Risk, Ethics & Finance and Projects
FY 2009/2010 FY 2010/2011 FY 2011/2012 FY 2012/2013 FY 2013/2014 Total Salary Cost
(inclusive of directors remuneration)
1,965,713 2,382,227 3,246,257 4,098,771 4,824,433
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HCTHIGHLIGHTS Table 45: Highlights
Highlights Narrative
1. Conditional Accreditation by the Social Housing Regulatory Authority (SHRA).
The company has achieved a progressive level of Conditional Accreditation by the Social Housing Regulatory Authority (SHRA) at the beginning of July 2014. This now enables the company to access and get assistance with project preparation, packaging for funding and other processes leading to project grant funding.
2 Sustained revenue collection based on a targeted 95% collection rate (target exceeded: current accounts and arrear amounts; see table below)
Eloff building continues to perform well in terms of revenue collection. This is attributed to the installation of Biometric access control installed by the company
3 Reviewed Business Plan and alignment of targets with SDBIP (specifically the Housing & Human Settlement departmental scorecard)
The company’s Business Plan and Service Delivery Agreement with the City of Tshwane were reviewed and approved. This has led to a new business focus in keeping with the company’s mandate and shareholder performance expectations.
4 Five (5) year Strategic Plan HCT Board of Directors and management have on the last half of 2013/14 financial year embarked on a strategic planning process which will give guide and direction of the company over the next five (5) years in relation to the implementation of if mandate and projects thereof. The basis for the new strategic vision of the company focused more on how the company achieves the accreditation status by SHRA, how the company can enhance its operations within the property management and maintenance, while it develops for accreditation and regain the Shareholder confidence.
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