MR M TSHANGANA 1 RESTRUCTURING ZONES Purpose The purpose of this submission is to inform the Portfolio Committee on The progress made with regard to Phase 3 of the Social Housing programme ID: 634709
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PORTFOLIO COMMITTEE
21 FEBRUARY2017MR. M. TSHANGANA
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RESTRUCTURING ZONES Slide2
PurposeThe purpose of this submission is to inform the Portfolio Committee on:
The progress made with regard to Phase 3 of the Social Housing programme on the demarcation of additional restructuring zonesNote the proposed 138 areas indicated in as additional restructuring zones,
Note that the 138 areas indicated, upon approval, will be Gazetted as restructuring zones, in terms of the requirements of the Social Housing Act, 2008.2Slide3
BackgroundIn June 2005 the Department approved the Social Housing Policy for South Africa.
In terms of the Social Housing Policy and Social Housing Act, for successful implementation of the Social Housing Programme, Restructuring Zones have to be declared through a Ministerial approval. Upon approval by the Minister, these have to be Gazetted and all social housing projects must be located within such restructuring zones .
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Background To Restructuring Zones
The social housing programme has two primary objectives:Firstly, to contribute to the national priority of restructuring South African society in order to address structural, economic, social and spatial dysfunctionalities and thereby contribute to Government’s vision of an economically empowered, non-racial, and integrated society living in sustainable human settlements.
Secondly, to improve and contribute to the overall functioning of the housing sector and in particular the rental sub-component thereof, especially insofar as social housing is able to contribute to widening the range of housing options available to the poor.Slide5
Background To Restructuring ZonesRestructuring
Zones are geographic areas that are: Identified by the Local Authority and a Council resolution to that effect must be in place.Supported by province for targeted, focused investment and subsidy commitment.Agreed with the National Department of Human Settlements, and
Accommodative to the medium density, multi-unit complexes requiring institutional management by a Social Housing Institution (SHI).As spatial targeting tools, Restructuring Zones:Cannot be an entire municipality, but should be a specific area within a municipalityShould be larger than individual project sites or specific township renewal projectsMust be aligned to the Municipal Spatial Development Frameworks, Integrated Development Plans, Urban Development Zones, nodes and corridors, the MSP and the IUDF5Slide6
Background – Restructuring ZonesThe
demarcation process as prescribed in the approved Social Housing Policy and Guidelines (2005) involves the following three phases:-Phase 1: Provisional Demarcation: During this phase, 13 Municipalities were identified by the National Department as PRZs, to pilot the social housing programme.
Phase 2: Formal Demarcation: The 13 identified municipalities had to formally submit their PRZs in the form of identified geographic areas. A total of 127 zones were gazetted and research is currently being undertaken to assess performance of the programme in these zones.Slide7
Following approval by the Minister, the Provisional Restructuring Zones were Gazetted under Notice 848 of 2011, Notice 900 of 2011 and Notice 857 of 2013.
In terms of phase 3 to expanding the programme – this allows for expansion
of RZs to other towns and cities , should the programme be deemed as a success. In this phase municipalities had to identify their RZs in line with their Integrated Development Plans (IDPs) and SDFs.7Background - Restructuring zonesSlide8
DiscussionThere are a number of towns and areas that Provinces and Municipalities have identified and proposed as additional restructuring zones for expansion of the social housing
programme. The consultation process with the Provinces and Municipalities on their identified proposed restructuring zones was undertaken as a team effort consisting of officials from the Department, the SHRA, HDA and SALGA. The consultation started in 2014 in the form of workshops, task team meetings, assessment meetings and general communication in the form of letters, e-mails and telephone calls.
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DiscussionThe final consultation process took place on the 15th and
16th September 2016 during the National Rental Housing Task meeting. Every proposal submitted to the department was evaluated and agreement was reached on documentation that was outstanding from provinces and municipalities and which had to be submitted to the Department by a given deadline. The consultation meeting was followed by a meeting of the Assessment Committee on 31 October 2016 which assessed the applications for compliance with policy requirements including the spatial, social and economic restructuring objectives of the programme.
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DiscussionThe findings of the assessment
team are summarised as follows:In Eastern Cape Province, 20 areas are recommended for approval as restructuring zones. The zones are in 5 municipalities, namely:
• Nelson Mandela Bay Metro, • Buffalo City Metro, • Kouga Local Municipality, • Camdeboo Local Municipality and • King Sabata Dalindyebo Local Municipality.10Slide11
DiscussionIn KwaZulu-Natal Province,
20 areas are recommended for approval as restructuring zones. The zones are in 6 municipalities, namely:eThekwini Metro Local Municipality, Emnambithi Local
Municipalitiy, Newcastle Local Municipality, Kwa-Dukuza Local Municipality, Mhlathuze Local Municipality and Hibiscus Coast / Ray Nkonyeni Local Municipality11Slide12
DiscussionA total of 30 restructuring zones are recommended for approval in the Western Cape Province. The zones are in the following 11 Local Municipalities that are outside the Metro:
Oudtshoorn Local Municipality,Mossel Bay Local Municipality,
George Local Municipality,Knysna Local Municipality,Bitou Local Municipality,Drakenstein Local Municipality,Overstrand Local Municipality,Stellenbosch Local Municipality,Saldhanah Bay Local Municipality,Breede Valley Local Municipality,
Swartland
Local Municipality
.
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DiscussionA total of 28 restructuring zones are recommended for approval in Mpumalanga Province, in the following 10 Local Municipalities:
Govan Mbeki Local MunicipalityeMalahleni Local MunicipalitySteve Tshwete
Local MunicipalityMbombela Local MunicipalityUmjindi Local MunicipalityNkomazi Local MunicipalityThaba Chweu Local MunicipalityMsukaligwa Local MunicipalityLekwa Local MunicipalityVictor Khanye Local Municipality
.
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DiscussionA total of 4 restructuring zones are recommended for approval in Limpopo Province in only one municipality, namely:
Polokwane Local Municipality.In Gauteng Province, 36 areas are recommended for approval as restructuring zones, in the:
Westonaria Local MunicipalityMerafong Local MunicipalityRandfontein Local MunicipalityMogale City Local MunicipalityEkhurhuleni Metro14Slide15
DiscussionIn Free State, there are no restructuring zones recommended for approval at this stage as the province is still working on the submission of applications with the identified municipalities.
The MEC for Human Settlements in the Northern Cape Province has submitted support for Gamagara and Tsantsabane Local Municipalities as restructuring zones. However there are no specific zones or areas within these municipalities identified as yet and province is still working
with the municipalities on the identification of specific restructuring zone/s. 15Slide16
DiscussionIn North West Province, there are no restructuring zones recommended for approval at this stage as the province is still consulting with municipalities.
Thus there is a total of 138 restructuring zones in 6 provinces and 38 municipalities that have recommended and approved by MinMec as additional restructuring zones.
Below is a summary of provincial restructuring zones recommended for approval by MinMec to the Minister as additional Restructuring Zones.16Slide17
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93% of proposed RZ’s are within the MSP100% of provisionally approved RZ’s are within the MSPSlide18
Recommended RZs
Eastern Cape Province
MunicipalityName of Town
Name of RZ area
Camdeboo
Local Municipality
Graaff-Reinet
Sunnyside A & B
King
Sabata
Dalindyebo
Local Municipality
Mthatha
Mthatha
& Suburbia (
Maydene
Farm Extension,
Zimbane
Heights
Extention
and Transkei United Dairies,
Zimbane
Valley, New Brighton,
Mqanduli
, Silverton, De Coligny and Payne's Farm)
Kouga Local Municipality
Jeffrey's Bay
Jeffrey's Bay and suburbia
Nelson Mandela Bay Metropolitan Municipality
Port Elizabeth
Summerstrand
Fairview
2010 Stadium Precinct
Newton Park
Stanford Road
Uitenhage (10km radius)
Uitenhage
CBD
Dispatch CBD
Florida Farms
Coega IDZ node (10km radius)
Coega
Vulindlela
Wells Estate
Amsterdamhoek
Baywest node (10km radius)
Bay West/N2 Hub
LorraineHunters RetreatKabega ParkParsons VleiBuffalo City MetroKing Williams TownKing Williams Town/ Bisho
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Kwa
Zulu Natal Province
MunicipalityName of Town
Name of RZ area
Emnambithi Local Municipality
Ladysmith
Hospital Park
Ladysmith Central
Dunlop
Newcastle Local Municipality
Newcastle
Arbor Park
Newcastle central
Fernwood
Kwa-Dukuza Local Municipality
Stanger
Kwadukuza
CBD
Blythedale
Beach
Hyde Park
Mhlathuze
Local Municipality
Richards Bay
Aquadene
Empangeni
uMhlathuze
Village
Hibiscus Coast Local Municipality/Ray Nkonyeni LM
Port Shepstone
Marburg
Protea
Park
Uvongo
eThekwini Metropolitan Municipality
eThekwini/Durban
Cornubia
Bridge City
Chatsworth,
Phoenix, Newlands,
KwaMashu
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Western Cape Province
Municipality
Name of Town
Name of RZ area
Oudtshoorn Local Municipality
Oudtshoorn
Oudtshoorn
CBD
Bridgton Development Precinct
Mossel Bay Local Municipality
Mossel
Bay
Mossel Bay CBD (Schoeman Street, Louis Fourie Corridor) and Kwa-nonqaba
Kwa-nonqaba
George Local Municipality
George
George Central (Central 1 & 2 and York Street)
Knysna Local Municipality
Knysna
Knysna CBD
Lagoon
Heidevallei
Bitou Local Municipality
Plettenberg Bay
Plettenberg Bay CBD
Piesang Road
Cape Nature
Ladywood
Drakenstein Local Municipality
Paarl/Mbekweni
Paarl (Central & South)
Vlakkeland/Mbekweni
Wellington/Mbekweni
Wellington CBD / Botterberg
Overstrand Local Municipality
Hermanus
Hermanus ( which includes Mount Pleasant 1, 2 & 3, West Cliff & Zwelihle)
Hawston
Hawston
Gansbaai
Gansbaai
Stellenbosch Local Municipality
Stellenbosch
Greater Stellenbosch
Plankenburg
Saldhanah Bay Local Municipality
Vredenburg
Vredenburg CBD
Vredenburg Urban Revitalisation
Saldanha
Saldanha CBD
Breede Valley Local Municipality
Worcester
Worcester CBD (Esselenpark, RouxPark)
Transhex
Swartland Local MunicipalityMalmesburyMalmesbury CBD AbbotsdaleNew Claire/Garden VillageGarden VillageSuikerbekkie
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Limpopo Province
Municipality
Name of Town
Name of RZ area
Polokwane Local Municipality
Polokwane
Polokwane Extensions
Annadale
Bendor
Polokwane CBD
Mpumalanga Province
Municipality
Name of Town
Name of RZ area
Govan mbeki Local Municipality
Secunda CBD
Embalenhle
Bethal
Bethal/Mzinoni
Lebogang Precinct
eMalahleni Local Municipality
eMalahleni
/Witbank
Duvha Park Ext 1
eMalahleni CBD
Corridor Hill
Spring Valley
Klarinet
Siyanqoba
Schoongezicht
Steve Tshwete Local Municipality
Middelburg
Steve Tshwete CBD
Mhluzi Built Areas
Rondebosch
Mbombela Local Municipality
White River
White River CBD
Mbombela
/Nelspruit
Mbombela CBD
Maggiesdal Built up Area
Tekwane South
Hazyview CBD
Sonheuwel
Umjindi Local Municipality
Barberton
Umjindi CBD
Nkomazi Local Municipality
Malelane
Malelane CBD
Thaba Chweu Local Municipality
Lydenburg
Mashishing
Lydenburg CBDMsukaligwa Local MunicipalityErmeloErmelo CBDLekwa Local MunicipalityStandertonStanderton CBD
Sakhile
Victor Khanye Local MunicipalityDelmasDelmas CBD
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Gauteng Province
Municipality
Name of Town
Name of RZ area
Randfontein Local Municipality
Randfontein
Finsbury (RAND04)
Toekomsrus (RAND05)
Randfontein CBD (RAND01)
Uncle Harry's Precinct (RAND02)
Aureus (RAND03)
Mohlakeng (RAND06)
Middelvlei
,
Droogeheuwel
and Ridgeview Integrated Human Settlements (RAND07)
Mogale City Municipality
Krugersdorp
Leratong Mixed Development (MOGC04)
Magaliesburg
CBD (MOGC05)
Nooitgedacht/ Rietfontien Integrated HS (MOGC06)
Muldersdrift/ Pine Heaven (MOGCO7)
West Krugersdorp (MOGC02)
Krugersdorp CBD including the UDF Precinct (MOGC01)
Chief Mogale Integrated HS (MOGC03)
Merafong Local Municipality
Welverdiend
Welverdiend and Varkenslaagte Integrated Human Settlements (MERC03)
Khutsong
Khutsong
South Integrated Human Settlements (MERC04)
Fochville
Fochville CBD (MERC01)
Carletonville
Carletonville CBD (MERC02)
Westonaria Local Municipality
Simunye
Simunye ( Including Simunye Civic Precint) (WEST 02)
Bekkersdal (WEST 03)
Thusanang (WEST04)
Westonaria CBD (WEST01)
Westonaria
Borwa
Integrated HS (WEST05)
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Gauteng Province
Municipality
Name of Town
Name of RZ area
Ekurhuleni Metropolitan Muncipality
Tembisa
Tembisa CBD
Leralla Node
Essellen Park
Clayville
Oakmoore
Katorus
Mayberry Park
Alrode
Vosloorus CBD
Vosloorus Hospital Node
Kwesine - Palm Ridge
Boksburg
Boksburg Mining Belt
Boksburg CBD
Boksburg
North
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RecommendationsIt is recommended that
the Portfolio Committee take note of the progress made with regard to Phase 3 of the Social Housing Programme on demarcating and gazetting of additional restructuring.The Portfolio Committee note the additional restructuring zones recommended by MinMec for approval and gazetting by Minister.
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THANK YOU25