Housing Project Process Guide - Updated 2017 by aurecongroupcpt

Project Process Guide for

Human Settlements Programmes

Updated 2017

The greatest possible care has been taken in compiling this Guide, and in ensuring that it is an accurate interpretation of the Housing Policy.

It may

be possible, however, that there are differences in how the Housing Policy is applied from province to province, and consequently differences in approach to those noted here may not be relevant for some provinces. The National Department of Human Settlements can not take any responsibility for how the Policy is applied from Province to Province. It is recommended that provincial differences in approach be determined before using this Guide to embark on a project. Users of this Guide will accordingly use it at their own risk and The National Department of Human Settlements will not be liable for any damages whatsoever that may be suffered by any user of this Guide arising out of any direct or indirect reliance placed on the content of this Guide.

Human Settlements Programmes

ABBREVIATIONS ANC

African National Congress

IRDP

Integrated Residential Development Programme

Basic Assessment

Local Authorities

BAR

Basic Assessment Report

MDG

Millenium Development Goals

BNG

Breaking New Ground

MEC

Member of the Executive Committee

Competent Authority

MOU

Memorandum of Understanding

CBO

Community Based Organisation

NDoHS

National Department of Human Settlements

CLaRA

Communal Land Rights Act, Act 11 of 2004

NDP

National Development Plan

CPA

Communal Property Associations Act

NEMA

National Environmental Management Act

CRO

Community Resource Organisation

NGO

Non Governmental Organisation

CRU

Community Residential Units

NHBRC

National Home Builders Registration Council

NHF

National Housing Forum

NUSP

National Upgrading Support Programme

DEA&DP Department of Environmental Affairs and Development Planning DFA

Development Facilitation Act, Act 67 of 1995

EEDBS

Enhanced Extended Discount Benefit Scheme

EIA

Environmental Impact Assessment

EIR

Environmental Impact Report

EMP

Environmental Management Plan

EPHP

Enhanced Peoples Housing Process

ESTA

Extension of Security of Tenure Act, Act 62 of 1997

FBO

Faith-Based Organisation

GEAR

Growth Employment and Redistribution Programme

General Plan

HDA

Housing Development Agency

HSS

Housing Subsidy System

SPLUMA Spatial Planning and Land Use Management Act 16 of 2013

I&AP's

Interested and Affected Parties

TVBC

Transkei, Bophuthatswana, Venda, and Ciskei

IDP

Integrated Development Plan

UISP

Upgrading Informal Settlements Programme

IPILRA

Interim Protection of Informal Land Rights Act, Act 31 of 1991

OPSCAP Operating Capital Budget PHP

Peopleâ&#x20AC;&#x2122;s Housing Process

PHSD

Provincial Human Settlements Department

PPP

Public Participation Process

RCG

Restructuring Capital Grant

RDP

Reconstruction and Development Programme

RLRA

Restitution of Land Rights Act

SDG

Sustainable Development Goals

SHI

Social Housing Institution

SHRA

Social Housing Regulatory Authority

Table of Contents Part 1 Introduction

National Human Settlements Policy Context

Human Settlements Intervention Categories

General Development Process

Using This Guide â&#x20AC;&#x201C; Project Flow Process and Schedules

Part 2 Summary of Incremental Housing Programme

Integrated Residential Development Programme (IRDP)

Upgrading of Informal Settlements (UISP)

Enhanced Peopleâ&#x20AC;&#x2122;s Housing Process

Rural Housing Programme

Summary of Social Rental Housing Programme

Summary of Financial Intervention Category

Part 3 Notes on Flow Charts

Project Schedules

Development Checklist

Human Settlements Programmes

PART PART

ONE

Human Settlements Programmes

Introduction The National Department of Human Settlements has made

Aims of this Guide

significant progress with addressing the exciting and complex challenge of achieving sustainable and integrated settlements.

This Guide is intended to assist Managers at all levels to

By December 2015, 4.3 million housing opportunities were

understand:

provided by the National Department of Human Settlements

•

since the inception of the National Housing Programme in 1994.

Processes required to achieve the desired end-product and the relationships between these processes;

•

The stages of the development process and timeframes associated with these stages; and

As the demand for Human Settlement opportunities continues

•

to increase, the supply of these opportunities must be

The responsibilities of the various role-players and professionals involved in Human Settlement delivery.

negotiated in the context of limited availability of well-located affordable land, lack of bulk infrastructure capacity and rapid

In order to support the successful delivery of Human

urbanisation. In addition, a lack of capacity in the delivery

Settlement projects, this Guide includes:

environment has also impacted the efficacy of delivery.

•

The sustainability of Human Settlements therefore requires

•

Flow Processes outlining the sequencing of delivery;

an integrated and strategic approach to the planning and

•

Summary checklists that can be utilised to monitor

Descriptions

the

intervention

categories

and

programmes in the Human Settlements Code;

delivery of human settlements. This Project Process Guide for Human Settlements Programmes aims to provide guidance to Developers (Local and Provincial spheres of Government)

progress and schedule progress payments; and •

Project Schedules that can be utilised to plan and monitor projects.

to deliver successful Human Settlements projects. Evolution of the Guide This Guide has evolved in line with changes in the National Housing Programme as well as the Code. The updating of

This Project Process Guide for Human Settlements

this Guide showcases the intent of the National Department

Programmes is an update of the National Housing Guide

of Human Settlements to continually provide the required

(commonly known as the Housing Project Process Guide)

assistance to Project Managers in line with changes in

produced in 2009.

National Policy. One of the critical changes contained in this Guide is the emphasis on reference to Human Settlements rather than

1997 Housing Process Guide

housing. This is in line with the fundamental Policy shift stemming from the Comprehensive Plan for the Development of Sustainable Human Settlements (Breaking New Ground BNG). The

uptake

the

concept

Sustainable

Human

2009 National Housing Guide

Settlements has gained significant traction in South African Policy and practice over the last decade. This Updated Guide incorporates lessons learnt from practice, in order to provide informative and pragmatic assistance to Project Managers and Development Practitioners. It therefore acts as a tool towards successful Project Management of Human Settlement projects. 2

2017

Updated Project Process Guide for Human Settlements Programme

National Human Settlements Policy Context Transition years (pre and post 1994) - “need and desirability” versus “sustainability and integration” This Guide will depart with a brief history and scene setting of how housing, as a product of the development cycle, evolved within South Africa over the last three decades. When the National Housing Forum (NHF) set the basis for the first Democratic National Housing Policy in 1994, this was considered a major tipping point in recognising and using “Housing Policy and Delivery” as a conduit for radical change.

From a policy perspective, unlocking potential of land could only happen via the provincial ordinances and specific acts promulgated for townships and Transkei, Bophuthatswana, Venda, and Ciskei (TBVC) states. The ordinances evaluated the need and desirability of development proposals, which at that stage included housing. This is material that in the post1994 period, the emphasis and terminology changed to focus on “integration and sustainability”.

The NHF brought together a number of stakeholders which included business, political, development and civic organisations. One of the main aims was to reach consensus about a new non-racial Housing Policy and what this could look like, concluding that the government would provide the framework for the facilitation of housing delivery.

The Policy Context can be grouped into three key periods, each signifying a different period in the evolution of the South African Housing Policy. The following timeline summarises these three periods, which is further explained in more detail as a means to build an understanding of the way in which the housing and human settlement environment has evolved, including critical milestones along this journey.

Post Apartheid Policy Framework The initial post-1994 period was defined by the 1994 White Paper on Housing, the mandate and responsibility of the state as set out in the Constitution of South Africa, and the Reconstruction and Development Programme of 1996 (RDP). The focus was on the quantity of houses delivered - a quantity based approach. Despite significant success with housing delivery, this approach also gave rise to critical challenges of affordability of houses, and the future ability of the State to sustain this delivery model. Breaking New Ground and Sustainable Human Settlements The review of the Reconstruction and Development Programme (RDP) led to the introduction of the comprehensive plan for the creation of Sustainable Human Settlements - more commonly referred to as Breaking New Ground (BNG). This plan brought with it a paradigm shift, from a housing delivery, quantity based approach to a more demand defined, quality-based and integrated approach. This change also included a shift in focus from shelter to asset creation. Incremental Development and Participatory Planning Approaches The period after 2010 included a critical review of the BNG, and the realisation that the focus was still placed on housing delivery and that other critical aspects relating to the creation of Sustainable Human Settlements, such as community improvement and the provision of basic services has not been adequately addressed. Therefore, the current period places enormous emphasis on incremental development driven by the local community needs, and prioritises participation, and meaningful engagement in the development process. The National Upgrading Support Programme (NUSP), Upgrading of Informal Settlements Programme (UISP), Neighbourhood Development Partnership Grant (NDPG) and the Urban Settlements Development Grant are critical supporting Programmes and funding interventions in the practical realm of incremental development and the creation of Sustainable Human Settlements.

Human Settlements Programmes

1994

Democratic South Africa and the White Paper on Housing The newly elected ANC Government adopted the 1994 White Paper on Housing after the 1994 democratic elections. The aim of the Policy was to create viable integrated settlements where households could access opportunities, infrastructure and services, that all South African people will have access to a progressive basis, to: •

A permanent residential structure with secure tenure, ensuring privacy and providing adequate protection against the elements; and

•

Potable water, adequate sanitary facilities including waste disposal and domestic electricity supply.

The housing vision was underpinned by principles of sustainability, viability, integration, equality, re-construction, holistic development and good governance. The aim was to utilise South Africa’s Housing Policy and strategy as a tool to reinforce the principle objective of a non-racial, non-sexist, democratic and integrated society. The goal was to improve the quality of living of all South Africans with an emphasis on the poor and those who could not independently satisfy their basic housing need. The Housing White Paper, 1994, set out Government’s broad Housing Policy and strategy on the basis of seven key strategies, namely:

Stabilising the housing environment

1996

Mobilising housing credit

Providing subsidy assistance

Supporting the Enhanced People’s Housing Process

Rationalising institutional capacities

Facilitating the speedy release and servicing of land

Coordinating Government investment in development

Constitution of The Republic of South Africa The current South African Constitution was adopted in 1996. The Constitution enshrines the right of everyone to have access to adequate housing and makes it incumbent upon the State to take reasonable legislative and other measures within its available resources to achieve the progressive realisation of this right. The Constitution contains justiciable socio-economic rights and enshrines everyone’s right to have access to adequate housing. In the Bill of Rights in Chapter 2 of the Constitution, Section 26 outlines: 1. Everyone has the right to have access to adequate housing; 2. The State must take reasonable legislative and other measures, within its available resources, to achieve the progressive realisation of this right; 3. No one may be evicted from their home, or have their home demolished, without an order of court made after considering all the relevant circumstances. No legislation may permit arbitrary evictions.

Reconstruction and Development Programme (RDP) (1996) The Government of the day attempted to redress the past imbalances and inequities of previous Government Policies through implementing the Reconstruction and Development Programme (RDP). The Programme set a new Policy agenda for South Africa based on the principles of meeting people’s basic needs, developing our human resources, building the economy and democratising the State and society.

1997

Growth Employment and Redistribution Programme – GEAR- Economic Reform / Growth In addition to political change, major changes were needed on the economic front. From an economic point of view, policy reform of all entities of the post-1994 government were needed and focused all attention on creating employment opportunities and ultimately a better life for all South Africans. The Reconstruction and Development Programme (RDP) was introduced as the Basic Policy Framework to achieve the aim of economic reform and macroeconomic strategy. The strategy of the Growth Employment and Redistribution Programme (GEAR) aimed to successfully confront challenges of meeting basic needs (including housing provision), developing human resources, increasing participation in the democratic institutions of civil society and implementing the RDP in all its facets. Core elements of this GEAR strategy included: A faster fiscal deficit reduction programme to contain debt service obligations, counter inflation and free resources for investment

Tax incentives to stimulate new investment in competitive and labour absorbing projects

Speeding up the restructuring of state assets to optimise investment resources

An expansionary infrastructure programme to address service deficiencies and backlogs

An appropriately structured flexibility within the collective bargaining system

An expansion of trade and investment flows in Southern Africa

A commitment to the implementation of stable and coordinated policies

The Housing Act (Act No 7 of 1997) The Housing Act was enacted in 1997 and took effect on 1 April 1998. It remains the primary piece of housing legislation in South Africa to this day. In response to this Constitutional imperative, Government introduced a variety of Programmes through this Act, which provided poor households access to housing opportunities. The Act laid down the general principles applicable to housing development in all spheres of government and defined the functions of the National, Provincial and Local Government spheres. Finally, the Act laid the foundation for the financing of National Housing Programmes. The 1997 Housing Process Guide The Department of Human Settlements and the National Business Initiative produced a Housing Process Guide in 1997. The 1997 Guide emphasised the contractual relationships between parties and the processes to be followed that were involved in housing delivery. The 1997 Guide also placed focus on social compacts and private developer driven housing developments.

2000

The National Housing Code The National Housing Code was first published in 2000 in accordance with section 4 of the Housing Act. The Code set out the National Housing Policy of South Africa and the procedural guidelines for the effective implementation of the Policy. The Code sets the underlying policy principles, guidelines, norms and standards which apply to the Government’s various housing assistance Programmes introduced and updated since 1994. The term ‘adequate housing’ contained in the South African Constitution is described by the United Nations Human Settlements Programme (UN-Habitat) as the meaning of fulfilment of the following elements, all of which should be available at an affordable cost: Adequate privacy Physical accessibility Adequate security

Access to basic infrastructure, such as water supply, sanitation and wastemanagement facilities

Suitable environmental quality and healthrelated factors

Accessible location to work and basic facilities

Adequate lighting, ventilation Structural stability and reliability

Human Settlements Programmes

2004

Breaking New Ground - A Policy Shift To A Demand Driven Quality-Based Approach Ten years after the introduction of the Housing Programme in 1994, a comprehensive review of the Programme was undertaken to determine the outcomes of the Programme, and understand the socio-economic context of the country. This led to the approval of the Comprehensive Plan for the Creation of Sustainable Human Settlements by Cabinet in September 2004. The BNG aligned South African Housing Policy with international thinking and trends and demonstrated a clear internalisation of the Millennium Development Goal 7, Target 11, which set out to improve the lives of 100 million slum dwellers by 2020. It adopted the UN-Habitat’s ethos of Cities without Slums, and the principles of Sustainable Human Settlement. BNG was intended to:

Accelerate housing delivery

Improve the quality of housing products and environments to ensure asset creation

Ensure a single efficient formal housing market

Restructure and reintegrate human settlements

The Comprehensive Plan introduced a clear shift away from the previous breadth and numbers-based approach to a more demand driven quality-based policy. It also reinforced the vision of achieving an integrated society through the development of Sustainable Human Settlements. Policies and Programmes shifted from only being concerned with redress, equity, and redistribution to utilising housing as a key element in building assets for the poor. It has been the understanding that through these assets the poor will be able to enter the formal property market and financial market.

2006

The Neighbourhood Development Partnership Grant (NPDG) The social and economic redevelopment of South Africa’s townships were identified as a national priority. These areas represent a significant proportion of South Africa’s population as well as vast amounts of underutilised social and economic potential. The Neighbourhood Development Partnership Grant (NPDG) was designed to fund, support and facilitate the planning and development of Neighbourhood Development Programmes and Projects to act as catalysts for further development in these areas.

2009

National Housing Code – Updated Programmes and Norms & Standards The National Housing Code of 2009 was updated from the 2000 Housing Code. The aim of the Code was to accommodate the changes that had taken place since 2000 and convert the National Housing Programmes into flexible provisions and guidelines. This Code was introduced updated since 1994, sets the underlying Policy Principles, guidelines, norms and standards which apply to the Government’s various housing assistance Programmes. The National Housing Project Process Guide (2009) The 2009 Guide was informed by the evolution of the National Housing Programme and Housing Code, as well as experience gained from twelve years of tremendous progress in housing delivery. This version of the Guide focused on the three specific Programmes which were the most frequently used for subsidied housing development, namely; Integrated Residential Development Programme (IRDP)

Upgrading Informal Settlements Programme (UISP)

Rural Housing Subsidies: Communal Land Rights Programme

The 2009 Housing Guide was designed to assist Developers (provincial and local spheres of government) responsible for the implementation of Human Settlement projects. The 2009 Guide therefore provides Developers with comprehensive guidance on the sequencing of activities required for the successful delivery of housing projects.

2010

The National Upgrading Support Programme (NUSP) - Supporting the Upgrading of Informal Settlements In order to support and fast-track the implementation of the UISP and promote incremental development, the National Department of Human Settlements introduced the National Upgrading Support Programme. Municipalities are required to act as developers for the UISP. The NUSP, in partnership with the NDHoS, Province and the Housing Development Agency (HDA) assists Municiplaities to effectively implement upgrading projects. Guidance for implementation is set out in Part 3 of the National Housing Code.

2011

The National Development Plan (NDP) Chapter 8 of the NDP envisions that by 2030, “measurable progress towards breaking apartheid spatial patterns” will have been achieved with “significant advances made towards retrofitting existing settlements offering the majority of South Africans access to adequate housing, affordable services in better living environments, within a more equitable and functional residential property market”. The trajectory set out by this vision culminates in a 2050 milestone whereby “visible results from effectively coordinated spatial planning systems shall have transformed human settlements in South Africa into equitable and efficient spaces with citizens living in close proximity to work with access to social facilities and necessary infrastructure”. It is the responsibility of the National Department of Human Settlements to ensure that the directed actions are implemented in order to achieve this vision.

2015

The Sustainable Development Goals (SDGs) - Development of New Global Goals The SDG’s build upon the successful work already done by the Millennium Development Goals, and replace the MDG’s. The new Global Goals, and the broader sustainability agenda, go much further than the MDGs, addressing the root causes of poverty and the universal need for development that works for all people. Goal 11 of the Sustainable Development Goals (SDGs) is targeted at making cities and Human Settlements inclusive, safe, resilient, and sustainable. The member countries of the United Nations agreed to create affordable public housing, upgrade slums/informal settlements, invest in public transport, create green spaces and get a broader range of people involved in Urban Planning decisions.

2017

The Updated Project Process Guide for Human Settlements Programmes As with the 2009 Guide, this Updated Guide aims to provide comprehensive and detailed guidance to Practitioners to aid in the successful execution of critical actions in the development process. The Integrated Residential Development Programme (IRDP)

The Upgrading of Informal Settlements Programme (UISP)

The Enhanced Peoples Housing Process (EPHP)

Rural Housing Subsidies: Communal Land Rights Programme

Other major changes since the previous Guide include: • The inclusion of EPHP as a selected Programme, given that it has become an increasingly popular subsidy Programme across the country; and • The inclusion of a summary of the Social Rental Housing Programme.

Human Settlements Programmes

Human Settlements Guide Intervention Categories The Updated Project Process Guide for Human Settlements

Users of this Guide can select applicable components of the

Programmes describes the correct application of the various

project schedules and checklists (Part 3 of this Guide) and

subsidy Programmes. The diagram below contextualises the

adapt it for their specific circumstances and requirements.

four Programmes discussed in this Guide with notes on the selection of the correct subsidy Programme. It highlights the

Many of the problems experienced in the close-out phase

differences between the four Programmes in this Guide to

of projects can be related to an inappropriate choice of a

ensure that the correct context of the chosen Programmes

specific programme. This choice is sometimes made due

is fully understood.

to a perception that one programme has fewer statutory requirements than another, or can be implemented faster.

Many of the processes in this Guide can also be applied

Again, in most cases the basic building blocks of the projects

to other Housing Programmes, although the product may

remain the same and the correct programme is usually the

be completely different. The basic building blocks and the

one that can be fully completed in the shortest timeframe.

statutory requirements of a housing project remain similar.

Upgrading Informal Settlements Programme (UISP)

Farmworker Housing

Emergency Housing Integrated Residential Development Programme (IRDP)

Enhanced Peoples Housing Process (EPHP)

Incremental Housing Programme

Rural Subsidies

Rural Housing Programme

Consolidation Subsidies

The incremental approach to housing development is a

The Rural Housing Programme is used to extend the benefits

progressive and dynamic process and the provision of housing

of the Housing Subsidy Scheme to those individuals living in

is not seen as a static unit but is rather broken down into core

areas referred to as â&#x20AC;&#x153;ruralâ&#x20AC;? areas where they enjoy functional

components allowing for greater participation by different

security of tenure as opposed to legal security of tenure. Only

stakeholders, through a participatory planning approach.

individuals whose informal land rights are uncontested and

The Programmes that form part of this Intervention Category

who comply with the qualification criteria will be granted such

include: IRDP, EPHP, UISP, Consolidation Subsidies and

Rural subsidies.

Emergency Housing Assistance. 8

Selected Human Settlements Programmes discussed in detail in this Guide Detailed Flow Process Summary Flow Process and Implemented by the Social * Administrated Housing Regulatory Authority (SHRA) SHRA only administers the Institutional Housing Subsidy in combination with the RCG.

Institutional Subsidy

Individual Housing Subsidy

Extended Discount Benefit Scheme Social and Economic Facilities

* Social Rental Housing Programme

Financed Linked Individual Subsidy Programme

Social Housing Subsidy

Financial

Accreditation of Municipalities

Operational Capital Budget Communal Residential Units (CRU)

Housing Chapters of Integrated Development Programmes

The Social Rental Housing Programmes, which includes

Financial Programmes provide subsidies to individuals to

amongst others, the social housing subsidy (Restructuring

purchase completed or existing properties, grant funding to

Capital Grant) as well as the Institutional Subsidy have been

Municipalities and/or Provinces to deliver services or facilities

allocated to the Social Housing Regulatory Authority (SHRA)

for professional services to facilitate planning and delivery.

for administration and implementation. The Community Residential Units (CRU) Programme is implemented through the Provincial Department of Human Settlements.

Human Settlements Programmes

General Development Process

Demand Who?

What?

Where?

How?

Decision Makers?

How Much?

FEASIBILITY

Infrastructure Test

Current Reality

Future Aspiration

Participation

Feasibility

Vision

PLANNING & DESIGN

PEOPLE: BENEFICIARY ASSESSMENT, APPROVAL AND ALLOCATION

Land

Design

Conceptualise

IMPLEMENTATION

Beneficiaries

Services

Top Structures

Develop

Supply

Using This Guide - Project Flow Process and Schedules This guide has been designed as a user-friendly document. Although its original design intent was aimed at providing

environment (Part 1); •

Descriptions of the selected Programmes (IRDP, UISP,

assistance to development practitioners, officials and

EPHP, Rural Housing Programme and the Social Rental

managers it will also resonate in its simplicity with the general

Housing Programme to provide an understanding of the

public to better understand the planning and delivery of

best Programme for a project (Part 2);

human settlement projects across the country. It includes the

•

following key components linked to selected Programmes as

plan and implement projects through these Programmes

set out in the National Housing Code 2009: •

Flow charts detailing the processes and steps required to (Part 2); and

An overview of the National Policy Context to provide

•

a contextual understanding of the Human Settlements

Project Schedules to assist in the planning, programming and monitoring of projects (Part 3).

Flow Charts Generic flow charts are provided for the IRDP, UISP and Rural

the Social Rental Housing Programme. The charts utilise the

Housing programme. This Guide also provides a summary

same building blocks and symbols wherever possible. These

flow chart for the Enhanced People’s Housing Process and

symbols are explained in the legend below.

Icon

Description Solid Rectangle

Main phase

Solid Rounded Rectangle

Action, document or sub-process required

Outlined Rounded Rectangle

Sub-process required

Outlined Diamond

This signifies that there is more than one possible outcome

Solid Diamond

Milestone

Grey Connector

Grey connectors represent the main process flow from one activity to another

Coloured Connector

Coloured connectors contextualise the flow between phases and should not be used as a shortcut procedure

People Icon

The journey of project beneficiaries

House Icon

Top structures

Services Icon

Infrastructure Services

Land Icon

Identified Land

Human Settlements Programmes

Interpreting the Flow Charts All projects should generally follow the development cycle

not explicitly shown. The township establishment process

showcased in the flow charts. It is the responsibility of the

is generic – whilst the terminology and sequence may vary

user to accurately determine where a specific project is at a

from Province to Province, the steps to achieve township

specific point in time within this cycle in order to gain maximum

establishment requires the same basic steps. In the flow

benefit in the guidance towards successful completion.

charts, the tasks undertaken by professionals are also not detailed, but the outcome is shown or indicated in a

The flow charts follow a sequential project process, however

specific phase close-out. Examples are township approvals,

many processes can be undertaken in parallel if the risks are

conveyancing, and Engineering Design.

clearly understood and managed. It could lead to fruitless expenditure and project delays if the Engineer is instructed to

The project schedule was developed to assist practitioners

design the services before the layout plan and General Plan

with the planning of specific projects. The time required

have been approved, as changes may lead to a re-design.

for construction will vary from project to project, as will

(For example, engineering designs should under normal

environmental and other approvals. Users of this Guide can

circumstances not be commissioned prior to a layout plan

use the schedule as a tool to plan and manage their projects,

being designed by the Town Planner, pegged and calculated

but the best use will be to utilise the electronic version and

by the land surveyor and registered in the office of the

adapt the schedule to their specific project requirements and

Surveyor General - the development logic).

circumstances.

The factors that play a role in the development timeframes of

The timeframes used for individual project items were

projects are also discussed in the following section.

averaged out over the different provinces, making use of local knowledge and experience within the delivery of

The flow charts cannot show all the links, as it would clutter

human settlement projects across the country. The time for

the picture unnecessarily. The phase close-outs indicated in

comments and approvals by Municipalities and Government

filled diamonds are intended to show that they are specific

departments are often the most difficult to manage, but is also

processes which must be completed, but they all link to

the one area where a project can inter alia be accelerated

the final project completion and hand over, although this is

through good co-operative governance.

Project Schedule The project schedule shown in Part 3 of this Guide provides

• The MS Excel Gantt Chart (electronic) – intended to be

practitioners with a typical schedule that can be used to

used by Project Managers to continuously plan, track

assist them with project planning. There are various factors

and monitor projects. This can be used in cases where

that influence the development timeframe, which will vary

Project Managers do not have access to MS Project; and

depending on the specific project. These factors are closely

• The Interactive Gantt Chart - designed to provide users

linked to the size of the project, as well as the timeframes for

of the Guide with an easy to follow, accessible format

the relevant approvals, and relatedly the time required for

to view the Gantt Chart and the linkage between typical

construction will vary from project to project. Delayed project

project phases and steps toward implementation and

approvals are often the most prominent reasons for delays.

completion.

Users of this Guide can use the schedule as a general tool to

Whilst the steps in all formats are the same, the aim is to

plan and manage their projects. In addition to the inclusion

improve ease of reference and usability, with the goal of

of a static version in Part 3 of the Guide, three formats of the

promoting sound project management principles. The

project schedule can be accessed – these include:

electronic versions in Excel and MS Project can be adapted

• The MS Project Gantt Chart (electronic) – intended to be

to a specific project, its scale and the local context and

used by Project Managers to continuously plan, track and monitor projects;

circumstance.

Common Factors Influencing Development Timeframes

FEASIBILITY

Feasibility Phase linkages with subsequent project phases:

In the feasibility phase, the following factors/ activities influence the development timeframe:

Planning & Statutory Approvals • Subsidy application period • Preparation of Basemap • Environmental approval process • Approval of development rights by Local Authority, linked to duration of compilation and submission of land development application

Approved IDP Including Housing Demand Quantificaton Land/Legal Land Availability Physical Assessment

Financial Viability

People

Implementation

• Refinement of potential project beneficiary list linked to the defined demand ultimately enabling the beneficiary assessment, allocation and approval

• Duration and outcomes of the assessment of physical features of site • Procurement strategy for the appointment of contractors is defined in the feasibility phase

Outcome of Initial Feasibility Study

Planning & Approvals Phase linkages with subsequent project phases:

PLANNING AND STATUTORY APPROVALS

Scale/Size of Development

Timeframe for Basemap Development

People • The yield calculation enables the refinement of the potential beneficiary list • Registerable erven that can later be linked to beneficiaries are delineated during the planning phase

Concept Development and Refinement Bulk Services Availability

Statutory Approvals Environmental Approvals in terms of NEMA

Planning Approvals in terms of SPLUMA

PEOPLE: BENEFICIARY ASSESSMENT, APPROVAL AND ALLOCATION

Implementation • Basemapping information and testing of engineering requirements required to establish available capacity • Draft Agreement, preliminary design report (land services & house construction), and detail design requires the approval of development rights by Local Authority • Transfer documents can be prior to, but transfer can only be given effect to once newly created entities/plots/ erven become registerable in the Deeds Office

Planning & Approvals Phase linkages with subsequent project phases:

Beneficiary Administration Capacity of Roleplayers and Decision makers Municipalities

Provincial Departments Verification at HSS

Implementation • Occupation of houses by beneficiaries and title deed handover to beneficiaries can only occur once the ownership of the property has been registered in the Deeds Office

IMPLEMENTATION

Construction Delays Procurement Processes Appointment of Contractors

Approval of Insurances and Guarantees

External Factors e.g. weather conditions

Community Buy-in

Human Settlements Programmes

PART

TWO

Human Settlements Programmes

Summary of Incremental Housing Programmes What is the Programme about? To promote Integrated Human Settlements, the Integrated Residential Development Programme (IRDP) provides for the acquisition of land, servicing of stands for a variety of land uses including commercial, recreational, schools and clinics, as well as residential stands for both low, middle and high income groups.

IRDP

Important Considerations • Projects must be based on approved chapters of Municipal Integrated Development Plans (IDP’s) • Project funding must be agreed between MEC and Mayors in terms of the multi-year Human Settlement’s Plan How to Access the Programme • Developer (Municipality) applies for funding from MEC & undertakes planning and project activities • MEC distributes funds and assesses and approves project

What is the Programme about? The Upgrading Informal Settlememts Programme (UISP) seeks to improve the living conditions of all residents living in informal settlements by ensuring access to basic services, tenure security and social and economic facilities, with minimal disruption to social networks. The Programme has three main objectives – tenure security, health and security and empowerment. Projects under the UISP must prioritise community participation in order to achieve meaningful engagement. Important Considerations • The UISP is designed for in situ upgrading. Relocation and resettling will be considered in exceptional circumstances • The first three phases are funded as part of this programme, where Phase 4 (Housing Consolidation) is funded via other Programmes such as the Housing Consolidation Subsidy

Important Considerations Municipalities identify informal settlements and apply to Provincial Human Settlements Departments for funding. Funding will be based on the number of households in the settlement and can include funding for project management and community participation and empowerment.

UISP

The objective of this Programme is to provide for temporary relief to people in urban and rural areas who find themselves in emergencies (situations of exceptional housing need) as defined in the Programmes. Assistance is in the form of grants to Municipalities to enable them to respond rapidly to emergencies by means of the provision of land, temporary Municipal Engineering Services and shelter. It includes the possible relocation and resettlement of people on a voluntary and cooperative basis in appropriate cases.

Emergency Housing Assistance

What is the Programme about? The main aim of the Enhanced Peoples Housing Process (EPHP) is to deliver better Human Settlement outcomes (at household and community level) based on community contribution, partnerships and the leveraging of additional resources through partnerships. This is achieved by developing livelihoods interventions which lead to outcomes such as job creation, developing a culture of savings, skills transfer, and community empowerment, building of community assets and social security and cohesion.

EPHP

Important Considerations The EPHP is based on the principles of community choice and contributions. The EPHP provides a mechanism to facilitate the flow of resources from Government to resource poor groups and provide mechanisms that are accountable and responsive to a participatory approach. How to Access the Programme The Programme applies to the following two options: â&#x20AC;˘ Areas/projects where communities have already organised themselves and want to participate in the housing process. The organised community then takes their request to the Local Authority through the local negotiating platform. This is a demand led approach. â&#x20AC;˘ Areas/projects where there is an opportunity to mobilise communities to participate in the housing process as identified through the Local Authorities and Provincial Housing Plans. This will happen where Local Authorities have allocated a certain percentage of land to the EPHP in their IDP/Housing Sector Plan so that the Programme is prioritised.

The Individual Subsidy Programme provides access to state assistance where qualifying households wish to acquire an existing house or a vacant residential serviced stand linked to a house construction contract through an approved mortgage loan. These properties are available in the normal secondary housing market or have been developed as part of projects not financed through one of the National Housing Programmes. The Programme provides access to funding for both credit linked and non-credit linked subsidies.

Individual Subsidies

Human Settlements Programmes

Integrated Residential Development Programme (IRDP) What is the Programme about? The IRDP facilitates the development of Integrated Human Settlements in well located areas that provide convenient access to urban amenities, including places of employment. The Programme also aims to create social cohesion. The Integrated Residential Development Programme (IRDP) provides for the acquisition of land, servicing of stands for a variety of land uses including commercial, recreational, schools and clinics, as well as residential stands for both low, middle and high income groups. The land use and income group mix will be based on local planning and needs assessments. The IRDP can be undertaken in a single phase or multiple stages. The first phase could provide serviced stands, with the second phase providing for some house construction for qualifying low income beneficiaries. It could also provide for the sale of stands to persons who for various reasons, do not qualify for subsidies, and/ or the disposal of other stands for commercial and other uses.

Who will be assisted? This Programme will assist people who meet the following criteria: • Lawfully resides (i.e. citizen) in the Republic of South Africa or in possession of a permanent residence permit. Certified copies of the relevant documents must be submitted with the application); • Legally competent to contract (i.e. over 18 years of age or legally married or legally divorced or declared competent by a court of law and sound of mind); • Neither the applicant nor his or her spouse have previously benefited from government assistance; • Have not owned fixed residential property; and • Have previously owned fixed residential property, such a person may only qualify for the purchase of a vacant serviced site.

In addition to the above the following criteria must also be satisfied: • Persons must be married or habitually cohabit; • Single persons must have financial dependants; • Single persons without financial dependants such as the aged, military veterans, etc. may be assisted; • Households must earn a monthly income in the range as annually announced; and • Persons who have benefited from the Land Restitution Programme may also be assisted.

In addition, the programme also makes provision for the creation of nonresidential stands such as: • Institutional stands e.g. police stations, schools and clinics; • Business and commercial stands; • Stands for non-profitable community services e.g. churches and crèches/ nursery schools; and • Stands for public use e.g. parks and community facilities etc. Special conditions apply to the sale and transferring of these stands.

How to access the Programme Municipalities will assume the role of a Developer. Where a Municipality does not have the required capacity to fulfil this role, the Provincial Government may assume the role of Developer. The Developer will submit a project application to the MEC making use of pro forma procurement documents, agreements, and/or contracts when applying for a project and the implementation thereof.

Who are the role players and decision makers? The Municipality assumes the role of the Developer and applies for funding from the MEC. The Municipality undertakes all planning and project activities. The MEC reserves and distributes funds and assesses and adjudicates various aspects of the project process and approves project.

Important Considerations • Plans for projects undertaken with the scope of the IRDP must be based on approved housing chapters of Municipal Integrated Development Plans and priorities and reservation of funds for project development agreed to between the MEC and the Mayors in terms of the multi–year housing plan developed as part of an approved IDP. • It is essential that the Human Settlements Projects approved as part of the IDP achieve buy-in from sector departments at the conceptual and planning stages of the project, to support implementation. • The multi-sectoral nature of Human Settlements necessitates the involvement of Municipal and Provincial sector departments (Engineering Infrastructure and Social Development Departments such as Education, Health and Police Services) as early as possible in the development process. • All procurement processes must occur within the prescripts of relevant legislation and in a fair, equitable, transparent and competitive manner. To support and ensure compliance with procurement, three contracting strategies or a combination thereof are proposed in this Guide. Human Settlements Programmes

INTEGRATED RESIDENTIAL DEVELOPMENT PROGRAMME (IRDP) * Formal evaluation to determine if a project has any legal, physical or financial fatal flaws

FEASIBILITY

Human Settlements Chapter in IDP

MEC Receives Provincial Human Settlements Subsidy Allocation from NDoHS Municipalities apply for reservation of project funding in terms of approved IDP and agreed priorities

* Municipalities must ensure that human settlement demand is realisticaly reflected/updated & approved in IDP

* In this process, the housing demand and the nature of the housing demand must be defined

Appoint Core Team Negative

Municipality secures land, undertakes feasibility study, prepares project descriptions and compiles acquisition agreements

Adjudication of land proposals in relation to IDP’s and selection of priority land

Finalise Development Scope

Positive

PLANNING AND STATUTORY APPROVALS

Initial feasibility study

* IRDP applies to “Greenfield” as opposed to “Brownfield” sites. Brownfield sites are normally associated with the UISP.

MEC reviews reasons and takes remedial action

Non-compliance

* Typical actions associated with Tranch 1 and 2 subsidy requirements

Identified Land

MEC adjudicates, makes conditional approval of project funding against selected land parcels and project descriptions including funds for human settlements subsidies and facilitates and determines variation amounts

MEC confirms subsidy project approval in project agreement with Municipality and concludes MOU with relevant parties

PEOPLE Identification of potential project beneficiaries

Procure

Adjudication of land availability proposals in relation to lDP’s and selection of priority land

NHBRC project enrolment

Define Nature of Demand

Quantify the need

Municipality calls for land availability proposals

Yes

Define Demand

Identified need for Human Settlements

MEC confirms reservation of project funding per Municipality and requests project descriptions

Municipality requests project enrolment with NHBRC

Status Quo

* Geotechnical study required for NHBRC enrollment

Legal Development Status

Town Planner: Settlement/Layout/ Subdivision Plan Engineer: Availability of services reports

Statutory Assessment

Procurement Method Turnkey Strategy

Land Surveyor: Base map

Secure Ownership of Land (if required)

Physical Investigation

Contractual Matters C

* Only the legal owner of land can effect changes to the properties of land

Environmental Practitioner: EIA application * Including Bulk Infrastructure Assessment & Geotechnical Assessment

Geotechnical Engineer: Geotechnical investigation

Source Base Documents

Contractual Matters Traditional Preplanned

Turnkey: One contractor or where ad hoc specialists are required 3 phases are provided.

Development Contract

- Town Planning - Installation of Services - Construction of Houses

Traditional Preplanned: What is the in-house capacity? - Ad hoc contracts with specialists as and when required

Local Authority publishes approved township in Provincial Gazette

Close-out Phase

Proclamation of Township

Open Township / Subdivision register at the Registrar of Deeds and compile and hand over of deeds to beneficiaries

Close-out Phase

Conveyancer

Pegging of stands

Calculate approved layout and obtain approved General Plan/Subdivision Plan from Surveyor General

Close-out Phase

Discharge conditions of establishment/conditions of approval

Close-out Phase

Approval documents comprise of: 1. Approved Layout Plan/ Subdivision Plan 2. Approved Conditions of Establishment / Conditions of approval

Close-out Phase

Surveyor

Team

Negative

PEOPLE: BENEFICIARY ASSESSMENT, APPROVAL AND ALLOCATION

Positive

* Community involvement and participation

Statutory Advertisement Advertisement of Application

Layout and Design of Settlement

Contractual Matters

- Installation of Services - Construction of Houses

Close-out Phase

House Construction: - Submit building plans - Approved building plans - House Construction

Occupation of houses and title deed hand over to beneficiaries

Documented proof of all the close-out phases during project lifecycle

Distribution of Layout to project team

* Determines yield of site

Close-out Phase

Completion and Hand over of services to Council

Subsidy Application approval

Hand over of Project

Circulation of Application

* Used to calculate infrastructure demand and supply provision

Obtain Clearance Certificates

Allocation of houses

Basline Layout/Subdivision/ Settlement Plan

Development Contract: Use community contractors: Two types of contracts allowed for:

- Bulk Earthworks - Install Services - Construct Streets - Hand over of services - Site Supervision

Statutory Approval

Preparation and Submission of Application

Populate Base Map

Construction Site preparation (where necessary)

Relocation of people

Obtain Comments

Amend application

Engineering Services Design

Amend Scheme

Post Approval Phase

Prepare final documentation for approval

* SPLUMA will dictate which relevant section of approval be granted by the relevant Authority

IMPLEMENTATION

* Used to gain inputs from sector departments

Building Inspection: - Foundation certificate - Structural certificate - Occupation certificate

Completed Top Structure

Close-out Phase

Occupation Certificates Prepare final drawdown Submit drawdown to MEC

* Constant monitoring and evaluation to ensure that supply of stock meets demand.

Payout Process

PEOPLE Refinement of potential project beneficiary list

Human Settlements Programmes

Upgrading of Informal Settlements Programme (UISP) What is the Programme about?

Informal Settlements are common to most developing countries that undergo a process of rapid urbanisation and have limited resources to address the housing needs of all its citizens and in particular the poor who move to cities in search of a “better life and future” for their families. The Upgrading of Informal Settlements Programme (UISP) is one of the most important Programmes of Government. The Programme seeks to incrementally improve the living conditions of communities by providing secure tenure, access to emergency services as well as basic services and housing, which can provide a platform/foundation to households to improve their social and economic circumstances, and promote sustainable livelihoods. The UISP has three main objectives – tenure security, health and security and empowerment. The programme is closely linked to the National Upgrading Support Programme (NUSP), which was designed to support the UISP. Under the UISP, beneficiary communities must be involved throughout of the project cycle to ensure that existing fragile community survival networks are not compromised and to empower communities to take charge of their own settlements’ design standards and housing solutions. All members of the community, including those that do not qualify for subsidies, are included. The Programme therefore aims to bring about social cohesion, stability and security in integrated developments.

Who will be assisted? This Programme will benefit all persons living in informal settlements who meet the following criteria: • Households that comply with the Housing Subsidy Scheme qualification criteria; • Households/persons with a monthly income exceeding the maximum income limit may be approved by the Minister from time to time; • Households headed by minors, who are not competent to contract, may benefit with assistance from the Department of Social Development; • Persons without dependants; and • Persons who are not first-time home owners. Applications for the following people may be considered on a case-by-case basis: • Persons who have previously received housing assistance and who previously owned and/or currently own a residential property; and • Immigrants whose residence status is uncertain on the conditions prescribed by the Department of Home Affairs.

How to access the Programme Municipalities will identify informal settlements to be upgraded within their areas of jurisdiction, and apply to the Provincial Human Settlement Departments for funding for projects under this Programme. This will be undertaken in close collaboration with the relevant communities. Where Municipalities have applied for and received assistance as part of the NUSP, it will be possible to leverage from the work undertaken as part of the NUSP. Project funding will be based on the number of persons who qualify for assistance and funding may include the facilitation of community participation and empowerment. The Programme also provides funding for Project Management purposes.

Who are the roleplayers and decision makers? The projects will be undertaken on the basis of a partnership of co-operative governance between the relevant Municipality, the Provincial Housing Department, the National Department of Human Settlements, the Department of Social Development (in respect of households headed by minors) and the Department of Home Affairs (in respect of establishing residence status of immigrants). Municipalities will fulfil the Developer role. The Provincial Human Settlements Department can assist a Municipality if the Municipality lacks capacity, and can assume the role of Developer if the Municipality cannot meet the project commitments.

Important Considerations

This Programme will be used for the in situ upgrading of informal settlements. As a last resort, in exceptional circumstances (e.g. where the terrain is not suitable for human settlement owing to flooding, shallow undermining etc.), residents may be relocated and resettled. This Programme will finance the creation of serviced stands only. Beneficiaries may apply for housing construction assistance through the other National Housing Programmes. The UISP has can be undertaken in four phases, namely: UISP Phase 1: Application (prefeasibility) UISP Phase 2: Project initiation (detailed planning) UISP Phase 3: Implementation (provision of services) UISP Phase 4: Housing consolidation (funded by other Housing Programmes) Social and economic facilities and amenities to enhance the sustainability of the upgraded settlement may also be provided through the Social and Economic Amenities Programme. Human Settlements Programmes

Upgrading Informal Settlements Programme (UISP) * Formal evaluation to determine if a project has any legal, physical or financial fatal flaws

FEASIBILITY

Human Settlements Chapter in IDP

MEC Receives Provincial Human Settlements Subsidy Allocation from NDoHS Municipalities apply for reservation of project funding in terms of approved IDP and agreed priorities

* Municipalities must ensure “Informal Settlements” are recognised and included in the human settlement delivery programme within their IDP.

* In this process, the housing demand and the nature of the housing demand must be defined

Appoint Core Team Negative

Municipality secures land, undertakes feasibility study, prepares project descriptions and compiles acquisition agreements

Adjudication of land proposals in relation to IDP’s and selection of priority land

Positive

Finalise Development Scope

PLANNING AND STATUTORY APPROVALS

Initial feasibility study

MEC confirms subsidy project approval in project agreement with Municipality and concludes MOU with relevant parties

PEOPLE Identification of potential project beneficiaries

Procure

Adjudication of land availability proposals in relation to lDP’s and selection of priority land

NHBRC project enrolment

Define Nature of Demand

Quantify the need

Municipality calls for land availability proposals

Yes

Define Demand

Identified need for Human Settlements

MEC confirms reservation of project funding per Municipality and requests project descriptions

* UISP relates to “Brownfield” as opposed to “Greenfield” sites. Greenfield sites are normally associated with IRDP.

In-situ Upgrading MEC reviews reasons and takes remedial action

Yes

No UISP IRDP

Non-compliance

* Geotechnical study required for NHBRC enrollment

* Typical actions associated with Tranch 1 and 2 subsidy requirements

Municipality requests project enrolment with NHBRC

Status Quo

Procurement Method Turnkey Strategy

Traditional Preplanned

Town Planner: Settlement/Layout/ Subdivision Plan Engineer: Availability of services reports

Incremental Development Approach Physical Investigation

Contractual Matters C

Land Surveyor: Base map

Initiate Participatory Planning Sessions

Environmental Practitioner: EIA application * Including Bulk Infrastructure Assessment & Geothecnical Assessment

Geotechnical Engineer: Geotechnical investigation

Source Base Documents

Contractual Matters

Development Contract

Turnkey: One contractor or where ad hoc specialists are required 3 phases are provided. - Town Planning - Installation of Services - Construction of Houses

Traditional Preplanned: What is the in-house capacity? - Ad hoc contracts with specialists as and when required

Local Authority publishes approved township in Provincial Gazette

Close-out Phase

Open Township / Subdivision register at the Registrar of Deeds and compile and hand over of deeds to beneficiaries

Close-out Phase

Proclamation of Township

Conveyancer

Close-out Phase

Team

Discharge conditions of establishment / conditions of approval

Close-out Phase

Post Approval Phase

Approval documents comprise of: 1. Approved Layout Plan/ Subdivision Plan 2. Approved Conditions of Establishment / Conditions of approval

Close-out Phase

Statutory Approval

Prepare final documentation for approval Negative

* Community involvement and participation

Advertisement of Application

- Installation of Services - Construction of Houses

Relocation of people

PEOPLE: BENEFICIARY ASSESSMENT, APPROVAL AND ALLOCATION

Obtain Clearance Certificates

Close-out Phase

Subsidy Application approval

Completion and Hand over of services to Council

* The UISP has four phases. Phases one to three focus on the creation of serviced stands, and is funded by the UISP subsidy. Phase four of the process is housing construction, which is funded by other relevant Programmes such as IRDP. The activities and milestones forming part of the house construction phase (phase four) is indicated in black.

Occupation of houses and title deed hand over to beneficiaries

Hand over of Project

Preparation and Submission of Application

Documented proof of all the close-out phases during project lifecycle

Distribution of Layout to project team

Layout and Design of Settlement Basline Layout/Subdivision/ Settlement Plan

Development Contract: Use community contractors: Two types of contracts allowed for:

- Bulk Earthworks - Install Services - Construct Streets - Hand over of services - Site Supervision

Circulation of Application

Populate Base Map

Contractual Matters

Site preparation (where necessary)

Allocation of houses

Statutory Advertisement

Amend application

Construction

Positive

Obtain Comments

*Formalisation Action

Engineering Services Design

Amend Scheme

Surveyor

Pegging of stands

Calculate approved layout and obtain approved General Plan / Subdivision Plan from Surveyor General

* SPLUMA will dictate which relevant section of approval be granted by the relevant Authority

IMPLEMENTATION

* Used to calculate infrastructure demand and supply provision

* Determines yield of site

* Used to gain inputs from sector departments

PEOPLE Refinement of potential project beneficiary list

House Construction: - Submit building plans - Approved building plans - House construction Building Inspection: - Foundation certificate - Structural certificate - Occupation certificate

Prepare final drawdown Submit drawdown to MEC

Payout Process

Completed Top Structure

Close-out Phase

Occupation Certificates * Constant monitoring and evaluation to ensure that supply of stock meets demand.

Human Settlements Programmes

Enhanced People’s Housing Process (EPHP) What is the Programme about? In 2006, a new People’s Housing Process (PHP) strategy was developed, which recognised that a number of different approaches to community development needed to be accommodated. This included community involvement in decision making processes, community empowerment and the leverage of additional resources. The broadening of the PHP scope, with the focus being on the outcomes of the housing process as a whole, rather than exclusively on how the housing product is delivered, informed the development of the Enhanced People’s Housing Process Policy and Programme (EPHP). EPHP therefore replaces the PHP and should be seen as a new Housing Programme with dedicated support and funding for harnessing community initiatives, community empowerment and building community partnerships. The EPHP principles can be applied to both development stages (township establishment/servicing of sites and the construction of houses). Typically, the EPHP methodology is chosen by the beneficiary community only for the construction of their houses.

Who will be assisted?

The basic entry requirement for the Programme is that an individual needs to be part of an already organised community group or must have indicated that he/she wants to participate in a community driven housing project. The Programme will only provide access to subsidies to beneficiaries who satisfy the following entry requirements: • Lawfully resides (i.e. citizen) in the Republic of South Africa or in possession of a permanent residence permit. Certified copies of the relevant documents must be submitted with the application; • Legally competent to contract (i.e. over 18 years of age or legally married or legally divorced and sound of mind); • Neither the applicant nor his/her spouse have previously benefitted from government assistance; • Have not owned fixed residential property; and • Have previously owned fixed residential property, such a person may only qualify for the purchase of a vacant serviced site. The following requirements must also be satisfied: Persons must be married or habitually cohabit; • Single persons must have financial dependents; • Single persons without financial dependents such as the aged, military veterans, etc. may be assisted;

• Households must earn a monthly income in the range as annually announced; and • Persons who have benefited from the Land Restitution Programme may also be assisted. These requirements are typical to an IRDP development scenario (greenfield) whereby the ‘greenfield’ sites complete with top structure are developed with the approved subsidy funding of approved beneficiaries. In addition, in a UISP development scenario (brownfield) the following considerations must be taken into account: • Stages 1-3 with UISP Grant Funding (full township establishment, intermediate/permanent servicing of sites and granting of an appropriate form of secure tenure on allocated sites): All verified households and/or individuals/ persons living in the informal settlement as indicated in the UISP Policy prescripts are to be assisted; and • Stage 4 (Housing Consolidation): Only households eligible for a housing assistance subsidy (as per the prescripts above) can be assisted to buy the fully developed site with the approved subsidy and thus take transfer of the property. The non-qualifying households however remain on their allocated services sites with an appropriate form of tenure.

How to access the Programme

The Programme applies to the following two options: • Areas/projects where communities have already organised themselves and want to participate in the housing process. This requires pre-development support and resource accumulation which entails the community receiving assistance from the Community Resource Organisation (CROs)/Community Based Organisation (CBO) to put together a detailed business plan to organise themselves. The organised community then takes their request to the Local Authority (LA) through the local negotiating platform. This is a demand led approach. • Areas/projects where there is an opportunity to mobilize communities to participate in the housing process as identified through the Local Authorities and Provincial Human Settlements Plans. This will happen where Local Authorities have allocated a certain percentage of land to the EPHP in their Integrated Development Planning (IDP)/Human Settlements Sector Plan so that the Programme is prioritised. EPHP can only be applied when there are approved Community Resource Organisations (CROs) in a Province. CROs can be Non-Governmental Organisations (NGOs), Faith-Based Organisations (FBOs) or a specifically put together development consortium. EPHP will only be applied where communities are prepared to make minimum (as per the EPHP Policy prescripts) community contributions/equity including the following: • Time/leadership/participation/ownership of the project by the community by participating in community meetings and setting up a project steering committee; • Agreeing on and selecting an accredited EPHP Resource Organisation (CRO) or agreeing to have a

• Top-up funding through various partnerships forged by the community with other stakeholders; • Demonstrated knowledge/skills/expertise; • Labour (not necessarily free); • Materials contribution;

screened CRO work with them to achieve the desired outcomes; • Land may be a contribution; • Savings contributions, managed and used in accordance with the decision taken by the community;

• Special community initiatives related to the housing project/area; and • Community volunteers or employers including; time, leadership, participation and ownership of the project, and knowledge, skills and expertise.

Who are the roleplayers and decision makers? • Community Members • Community Based Organisations • Community Resource Organisations • Non-Governmental Organisations • Faith-Based Organisations • Local Authority (Municipalities) • Provincial and National Government

Important Considerations The EPHP is based on the principles of: • Community decision making/choice; • Community contribution; and • Partnerships and leveraging additional resources. The Policy is therefore designed around the value added principles that PHP can deliver through the process and provides a mechanism to facilitate the flow of resources from Government to resource poor groups and provide mechanisms that are accountable and responsive to a participatory approach.

Human Settlements Programmes

FEASIBILITY

Demand Quantification

Land/Legal

Financial Viability

PLANNING AND STATUTORY APPROVALS Environmental Approvals in terms of NEMA

Planning Approvals in terms of SPLUMA

PEOPLE: BENEFICIARY ASSESSMENT, APPROVAL AND ALLOCATION

Subsidy Application Process

Beneficiary Administration

IMPLEMENTATION

NDoHS

• Creating an enabling environment

Province

• Ensuring efficient and effective administration of EPHP

• Capacitation of CBO’s (can include NGO’s, FBO’s and other stakeholders)

CRO

CBO

Community members

• Facilitate, encourage and support EPHP at a local level

• Communication engagement with local communities • Creating and executing roles and responsibilities as agreed with CRO

• Ownership of EPHP • Set up of community groups and leadership structures • Access, mobilise and adhere to the required community contributions

Rural Housing Programme Rural Housing: Informal Land Rights

What is the Programme about? The Rural Housing Programme is used to extend the benefit of the Housing Subsidy Scheme to those individuals living in areas referred to as “rural” areas where they enjoy functional security of tenure as opposed to legal security of tenure. Only individuals whose informal land rights are uncontested and who comply with the qualification criteria will be granted such Rural Subsidies. The Programme covers areas where normal township development is not feasible, practicable and not an option. The land in these areas belongs to the State.

Section 25 (6) of the Constitution of the Republic of South Africa focuses on persons or communities whose tenure or land is legally insecure as a result of past racially discriminatory laws or practices. The Interim Protection of Informal Land Rights Act (IPILRA) is the act used to give effect to the Rural Programme and respond to the redress required by the Constitution. The Communal Land Rights Act (CLaRA) was enacted in 2004 to support the Rural Housing Programme. CLaRA has since been declared unconstitutional and it was repealed in 2010. IPILRA is still in force, and the relevant legal vehicles/processes linked to the Rural Housing Programme are shown below: Legal Vehicle /Process

Short Notation

Act number

Status

RLRA

22/1994

Active

Development Facilitation Act

DFA

67/1995

Unconstitutional

Communal Property Associations Act

CPA

28/1996

Active

IPILRA

31/1996

Active

ESTA

62/1997

Active

CLaRA

11/2004

Unconstitutional

SPLUMA

16/2013

Active

Restitution of Land Rights Act

Interim Protection of Informal Land Rights Act Extension of Security of Tenure Act Communal Land Rights Act Spatial Land Use Management

The Spatial Planning and Land Use Management Act (SPLUMA) does however standardise Spatial Planning and Land Use Management across all Provinces. All land falls within Municipal areas, given South Africa’s wall-to-wall spatial demarcation regime. Hence, SPLUMA only makes reference to “Rural” in nine instances and is not designed to incorporate CLaRA.

Human Settlements Programmes

Rural Housing Programme Purpose

Uncontested Functional Tenure

Compliment Land Reform

Land Administration

Land Registration

Referred and defined as the integrated process of determining, recording and dissemination of information on tenure, value and usage of land in the context of developing sustainable land management and development policiesยน.

Rights in immovable property are separated into ownership and registered limited real rights - registered in terms of Section 63(1) of the Deeds Registry Act, 47 of 1937.

A comprehensive and effective land administration system does not exist for informal and communal land tenure.

Current development process/procedure:

Confirmation of who Presides over the land

Contested Tenure

Resolve Land Rights of Land prior to any Development Application

Tenure Security

Uncontested Functional Tenure

Community Appointed Agent to Lodge Application

Apply IRDP Development Prinicples with the Changes Required by the Context

Unlocking development potential of rural areas

ยน Pienaar J, Kamkuemah, A. 2011. Farm Land and Tenure Security: New Policies and Legislative Developments. 22 Stell LR 724 - 741

SPLUMA standardises Spatial Planning and Land Use Management across all Provinces. All land falls within Municipal areas, given South Africa’s wall-to-wall spatial demarcation regime. Hence, SPLUMA only makes reference to “Rural” in 9 instances and is not designed to incorporate CLaRA.

Community confirms the need for housing - Need is communicated to Traditional Council / Municipality

Provincial Human Settlement Department (PHSD) evaluates application including tests against database

PHSD records project on HSS and informs Municipality of decision

Implementing agent / supporting organisation prepares and submits project application to MEC

Community applies to the Municipality to appoint implementing agent / supporting organisation

PHSD submits application to MEC

Municipality secures procurement of services of implementing agent / support organisation

Municipality assesses application and makes recommendations to MEC

MEC approves project

Project agreement concluded

Newly constructed houses registered with NHBRC

Human Settlements Programmes

Summary of Social Rental Housing Programme Restructuring Capital Grant (RCG) SHRA only administers the Institutional Housing Subsidy in combination with the RCG. The stand alone Institutional Subsidy is administered by province and can be used for installment sales

Institutional Housing Subsidy

What is the Programme about? The Programme seeks to provide rental or co-operative housing options for low income persons at a level of scale and built form which requires institutional management by accredited Social Housing Institutions (SHIs). The Consolidated Restructuring Capital Grant (RCG) is a capital contribution from Government for the development of social housing in designated restructuring zones as part of a broader goal of social restructuring.

What is the Programme about? This mechanism is targeted at housing institutions that provide tenure arrangements alternative to immediate ownership (such as rental, installment sale, share block or co-operative tenure) to subsidy beneficiaries.

What is the Programme about? The Programme facilitates the provision of secure, stable rental tenure for the lowest income persons who are not able to be accommodated in the formal private rental and social housing market. It also provides a framework for dealing with the many different forms of existing public sector residential accommodation, including hostel redevelopment projects. The housing stock funded by the CRU Programme should remain in public ownership and cannot be sold or transferred to individual residents.

Community Residential Units (CRU)

Consolidated Restructuring Capital Grant

Quantification of demand for Social and Rental Housing in IDP

SHRA receives annual Consolidation Restructuring Grant allocation

Provincial Steering Committee to plan social housing in an integrated manner in consultation with SHRA

SHRA calls for Social Housing Institutions to tender applications

Social Housing Institutions (SHIâ&#x20AC;&#x2122;s) and Private Sector apply to SHRA to release funds Social Housing Institutions (SHIâ&#x20AC;&#x2122;s)

* The Restructuring Capital Grant and the Institutional Subsidy

Private Sector SHRA undertakes three assessments to determine if project implementation is achievable in the current financial year

* The Private Sector can also apply for the Restructuring Capital Grant

1 SHI Management Capacity Organisational Diagnostic

Yes

2 Determine project viability Project Readiness Assessment

Yes

3 Determine financial viability Project Viability Assessment

Yes

Approval by Technical Evaluation Committtee

Formal Approval by SHRA council

Agrement & Implementation

Human Settlements Programmes

Summary of Financial Intervention Category Accreditation of Municipalities

What is the Programme about? The accreditation of a Municipality involves the delegation and, subsequently, assignment of certain clearly defined functions in respect of the administration of one or more of the National Housing Programmes, leading to eventual assignment of all the functions by formal proclamation of assignment by the Premier in the Government Gazette. Accreditation involves the delegated authority to exercise functions relating to the administration of National Housing Programmes at the Municipal sphere. This will enable Municipalities to plan the implementation of the range of their developmental function in a coordinated basis. Therefore, accreditation seeks to achieve two inter-linked objectives: coordinated development (horizontal integration) and accelerated delivery (vertical integration).

What is the Programme about? Enhanced Extended Discount Benefit Scheme (EEDBS) was put in place to support decisions made regarding the transfer of pre-1994 housing stock. The EEDBS is intended to stimulate and facilitate the transfer of public housing stock to qualifying occupants, by applying a discount on the sale price on condition that transfer of ownership is realised.

Individual Subsidies

Enhanced Extended Discount Benefit Scheme

What is the Programme about? The Individual Subsidy Programme provides access to Housing Subsidies where qualifying households wish to acquire an existing house or a vacant residential serviced stand linked to a house construction contract whether linked to an approved mortgage loan or not. These properties are available in the normal secondary housing market or have been developed, as part of projects not financed through one of the National Housing Programmes. The Programme provides access to funding for both credit linked and non-credit linked subsidies.

Operational Capital Budget

What is the Programme about? The main objective of the Operational Expenditure Budget in support of the implementation of National and Provincial Housing Programmes -OPSCAP- is to provide for a funding framework for the reservation and application of a percentage of the annual housing allocation to Provincial Governments for the appointment of external capacity to support the implementation of the National and Provincial Housing Programmes.

What is the Programme about? The main objective of the Programme is to facilitate the development of basic social and economic amenities which are normally funded by Municipalities in cases where Municipalities are unable to provide such facilities. This Programme was introduced as a funding mechanism for the provisioning of certain basic social and economic amenities or facilities. The Programme will provide assistance to all Municipalities that do not have confirmed sufficient financial resources to provide such facilities.

Housing Chapters of IDP Part 1

Social and Economic Facilities

What is the Programme about? The Programme for the compilation of Housing Chapters of Integrated Development Plans has been developed; and establishes the provision of grants to a Municipality to enable it to compile a Housing Chapter as part of its integrated development planning process. The Programme, and grant funding provided when needed, will enable the Municipality to compile strategic, realistic Housing Chapters that are linked to Provincial Human Settlements Plans.

What is the Programme about? Finance Linked Individual Subsidies (FLISP) was developed to enable sustainable and affordable first time home-ownership opportunities to South African citizens and legal permanent residents earning between R3 501 and R15 000 per month, known as the “affordable” or “gap” market. Individuals in these salary bands generally find it challenging to qualify for housing finance. Their income is regarded too low for mortgage finance, but too high to qualify for the Government subsidy schemes. The objective of the Programme is to reduce the initial home loan amount to render monthly installments affordable over the loan repayment term. The FLISP subsidy reduces the amount of the loan required from the bank, thus rendering the monthly loan repayment installments more affordable over the loan repayment term.

Finance Linked Individual Subsidies (FLISP)

Human Settlements Programmes

PART

THREE

Human Settlements Programmes

Notes on Flow Charts Statutory Approval Process 1

Preparation for Legislative Process

Preparation for Statutory Approval Processes Urban Design / Town Planning

Town Planning

Infrastructure

Preparation of Site Plans

Assessment of Title Deeds

Detail Infrastructure Designs to Support The Site Plan

Layout Plans Preparation of Rezoning and Subdivision Memorandum

Environmental prerequisite for Town Planning Statutory Process

Statutory Town Planning Process

Pre-Consultation Submission of Rezoning and Subdivision Memorandum

Environmental and Town Planning Decisions

Project Advertisement Period

Respond to Objections/Negotiate with Objectors Obtain Decision Document from Municipality

Appeal Process

Environmental Process Specialist Studies

Pre-Applciation

Application Phase

Scoping Phase

Submission of EIR and EMPr

Scoping Report PPP

EIR and EMPr PPP

Extension Period

Competent Authority Decision Period Environmental Authorisation Appeal Process

Human Settlements Programmes

Environment Authorisation Process Basic Assessment (BA) Process A BA is undertaken when listed activities as per Government Notice R.983 and R.985 of NEMA are triggered and the process therefore includes: When a major finding crops up during the process, which was not anticipated prior

Straightforward Process 1

APPLICATION PHASE • Pre-application meeting (optional) • Compilation and submission of application form

BASIC ASSESSMENT REPORT (BAR) • Compile draft BAR for client comment • Address client comments

PUBLIC PARTICIPATION PROCESS • 30 days public and organ of state comment period

SUBMIT BAR AND EMP TO DEA&DP for review and decision making

FINDING - NOT OTHERWISE ANTICIPATED • Notify Authority of Extension

PUBLIC PARTICIPATION PROCESS • 30 days public and organ of state comment period

SUBMIT BAR AND EMP TO DEA&DP for review and decision making

90 days

107 days

Authority Decision

140 days

• Grant Environmental Authorisation OR • Refuse Environmental Authorisation

107 days

Authority Decision

• Grant Environmental Authorisation OR • Refuse Environmental Authorisation

Full Scoping and EIA Process A full Scoping and EIA process is undertaken when listed activities as per Government Notice R.984 of NEMA is triggered and the process therefore includes: Pre-Application PPP Public and Organ of State Engagement

Application Phase Submission of Application for Environmental Authorisation

Scoping Report Phase Draft Scoping Report (Including Plan of Study of EIA)

Authority Acknowledgement Authority Acknowledgement of Receipt of Application

Final Scoping Report

156 Days* 107 Days

106 Days

43 Days

10 Days

44 Days

Pre-Application Phase Pre-Application Meeting with DEA&DP

Scoping PPP (30 days) Public and Organ of State Comment Period

Authority Decision Accept Scoping Report OR Refuse Scoping Report

Environmental Impact Assessment (EIA) Report Phase Draft EIR & EMPR

Final EIR

Authority Decision Grant Environmental Authorisation OR Refuse Environmental Authorisation

Scoping PPP (30 days) Public and Organ of State Comment Period * 50 Day Extension If significant changes have been made or significant new information added to the Final EIR, incl. specialist reports and the EMPr, the applicant must notify the Competent Authority in writing that submission of the report will occur within 156 days of acceptance of the Scoping Report. * 30 Day Additional PPP Public and Organ State Comment Period

Pre-Application Phase

EIA Phase

Pre-application consultation with the Competent Authority

The focus of this stage is to assess the preferred alternative.

(CA) is usually required prior to the commencement of the

Note that no major changes to the design can occur at this

formal statutory procedure. As a prerequisite to the meeting

stage and the CA will require a specific level of detail.

a â&#x20AC;&#x2DC;Notice of Intentâ&#x20AC;&#x2122; form must be submitted. The EIA Regulations require that the final EIR and EMPr Pre-application consultation with Interested and Affected

are submitted within 106 days of receiving notification of

Parties (I&APs) (other authorities and the general public) is

acceptance of the Scoping Report by the CA, which includes

also recommended to allow important issues to be identified

30 days for a public comment period.

upfront, so that they do not cause delays during the following formal statutory timeframes.

If significant changes have been made or significant new information is added to the final EIR (including specialist

A Basic Assessment may be triggered, which is a statutory

reports and the EMPr) following public participation, the

process of 197 days (from submission of the Application

Applicant must notify the CA in writing that submission of the

Form to receipt of the Environmental Authorisation) (Note this

report will occur within 156 days of acceptance of the Scoping

excludes Pre-Application consultation as well as the 12 days

Report. This extends the Programme by 50 days, of which 30

to notify I&APs and 20 days for the appeal period to lapse).

days are required for an additional public comment period on the revised draft EIR.

Note that the additional public

Application Phase

comment period is compulsory if the EAP opts to extend the

Given the limited amount of time between acknowledgement

programme by 50 days.

of the Application by the CA and the submission of the Scoping Report, it is advisable to have the draft Scoping Report prepared prior to submission of the application form. The draft Scoping Report can be submitted with the application if this is agreed to with the CA during the PreApplication consultation. Scoping Phase The EIA Regulations require submission of the scoping report within 44 days after acknowledgement of the Application is received from the CA, which includes 30 days for a public comment period. This leaves 14 days for all other Scoping tasks including compilation of the Scoping Report, which in most cases is impractical. It is thus advised that the preparation of the Scoping Report be undertaken prior to submission of the application. The focus of this stage is to assess and rank alternatives to make sure there are sufficient alternatives developed up until this stage to inform the studies.

Human Settlements Programmes

National Home Builder’s Registration Council (NHBRC) NHBRC Project Enrolment

MEC conditionally approves project

*Developer submits project to NHBRC for approval. Application includes Phase 1 Geotechnical Report and Project Enrolment Application

* In this case, the developer is the Municipality or the Provincial Department of Human Settlements

Application is evaluated for compliance in terms of checklist

Project Enrolment Application

Incomplete Rejection Letter

• Cover Letter from DoHS / Local Municipality • Resolution/ Approval of Project • Phase 1 Geotechnical Report (Per Generic Specification GFSH-2)

Complete Acknowledgement Letter NHBRC reviews

Geotechnical and Engineering Assessment

NHBRC determines if project can be enrolled NHBRC determines if issues can be resolved with developer/applicant

Issues No Issues

Rejection letter issued

Amendment of application in line with reasoning contained in rejection letter Determine if issues are resolved

Registration of project

Project enrolment letter issued

Developer makes payment

NHBRC Engineering Inspections

Project enrolment certificate issued

Home enrolment process

Yes No

Yes

Home Enrolment

Developer submits Home Enrolment Application to NHBRC for approval

Application is evaluated for compliance in terms of checklist

Incomplete Rejection Letter

Complete Acknowledgement Letter Geotechnical, Civil and Structural Engineering Assessments

NHBRC determines if home enrolment can occur NHBRC determines if issues can be resolved with developer/applicant No

Rejection letter issued

Amendment of application in line with reasoning contained in rejection letter Determine if issues are resolved

Yes

Home Enrolment Application • Cover Letter from DoHS / Local Municipality • Resolution/ Approval of Project • Developer/Contractor/Sub Contractor’s Name • NHBRC registration Number of Contractor • Infrastructure Services Layout (water, sewer and roads) • Phase 2 Geotechnical Report )Per Generic Specification GSFH-2) • Site Classes of each individual erf • Foundation solutions (per erf) • NHBRC Appendix B1 • Construction Drawings • Contour Site Layout • Layout plans with erf numbers • List of Erf Numbers • Key Staff • Project Programme and Phasing Detail

Issues No Issues Registration of home enrolment project

Home enrolment authorisation letter issued

Developer makes payment

NHBRC Inspections

Home enrolment certificate issued

NHBRC compiles Final Unit Report

Yes No

Close enrolment project

Human Settlements Programmes

Procurement Strategy Flow Chart PROCUREMENT STRATEGY Government Department or Agency acting as Developer has to consider what strategy to follow to implement project, either in-house or by procuring services.

Will the in-house resources and capacity of the developer be sufficient to provide professional and contracting services throughout (and to the point of completion of the project) the whole project?

Yes

Do all the work in-house as Developer

Is the Developer able to complete certain aspects of the programme (in terms of capacity and professional resources)? Does the Developer intend to use one contractor for the whole project? No

Yes Does the Developer intend to appoint community contractors for different steps of the programme?

Yes

TURNKEY STRATEGY

TRADITIONAL PRE-PLANNED

The turnkey Contractor is appointed by the Developer through a public tender to do all the work related to the successful completion of the project. - Planning of approved land; - Township establishment process; and - Design and installation of internal reticulation services and the construction of houses.

Professional and contracting services may be provided in-house or procured through public tenders. - The Developer has the flexibility to appoint and brief professionals and to manage the process of development in a hands-on manner. - Contractors undertake construction by making use of the comprehensive designs issued by the developer.

RISK: Tenderer carries the risk should overruns occur that are not provided for in the contract.

Please note: the Developer may apply the turnkey strategy within this strategy and award development rights through a tendering process. RISK: Developer carries the risk for any financial overruns.

Yes

DEVELOPMENT CONTRACT Community Contractors are contracted / appointed through public tenders. This strategy permits the community to participate in development to the extend that they are able to do so.

RISK: Materials and construction managers are required to manage the Developerâ&#x20AC;&#x2122;s risk associated with construction.

Land Procurement Strategy Advertise to offer land

Evaluation of offers received

Select best offer purchase through conditional purchase agreeement

Project Schedules The project schedule is a generic schedule which Project

The township establishment schedule and/or process for

Managers can use to plan their specific projects. The time

obtaining the necessary land use rights is based on the

required for construction will vary from project to project, as

statutory periods contained in the (Development Facilitation

will environmental and other approvals. Users of this Guide

Act (DFA). The time for comments and approvals by

can use the schedule as a general tool to plan and manage

Municipalities and Government departments are often the

their projects, but the best use will be to utilise the electronic

most difficult to manage, but is also the one area where

version and adapt the schedule to their specific project

a project can inter alia be accelerated through good co-

requirements and circumstances.

operative governance.

Human Settlements Delivery Process

Human Settlements Programmes

Human Settlement Delivery Process

Feasibility

Human Settlements Programmes

Obtain Basemapping Information

Environmental Impact Studies

Human Settlements Programmes

Compilation and Submission of Application

Land Surveying and Conveyance

Human Settlements Programmes

People: Beneficiary Assessment, Allocation and Approval

Land Servicing

Human Settlements Programmes

House Construction

Project Handover

Human Settlements Programmes

Development Checklist

Human Settlements Programmes

Department of Human Settlements Postal Address:

Private Bag X644, PRETORIA, 0001

Physical Address:

Govan Mbeki House, 240 Justice Mahomed Street, Sunnyside, PRETORIA

Call Centre (Toll-free):

0800 146 873

Fraud and Corruption (Toll-free):

0800 701 701

Website: