Draft Remedial Programme For Housing - PowerPoint Presentation

Slide1

 Draft Remedial Programme For Housing

Mr. M. Tshangana

Slide2

PURPOSETo share the details of the Proposed Remedial Policy Programme to be administered by NHBRC.

CONFIDENTIAL2

Slide3

 Policy Foundation

The Minister of Human Settlements on 14 August 2014 during the budget speech said: "We spent R2 billion on rectifying houses. I

don’t

know how we came to this unacceptable situation, but it is my intention to scrap this programme and ensure that the onus is on each and every contractor to build properly or return to repair

. This

will allow us to return these resources to people who have been waiting for houses. The rectification programme was only meant to cover houses

that were

built before the NHBRC was established. The NHBRC has been up and running for some time, hence my reluctance to continue using tax

payers money to rebuild houses. For all of us sitting here, taking part in any contract, please know that you may not continue without the required certificates from the NHBRC. Lets cut the waste."

CONFIDENTIAL

3

Slide4

 Policy Foundation

The Minister of Human Settlements on 7 May 2015 during the budget speech said ‘We are no longer rectifying houses using our budget’

Ministerial Directives with regards to rectification programme have been issued.

Ministerial Pronouncement at November Mintop Meeting – The Remedial Programme must be administered by the NHBRC.

CONFIDENTIAL

4

Slide5

Contents of the Draft Policy AcronymsPreamble

Terminology BackgroundSituational AnalysisProblem Statement

Policy Intent

Policy Outcome

Policy Objectives

Programme Principles

Scope

Prescripts

Exclusion

Norms & StandardsTargeted Beneficiaries

Funding Mechanisms

M & E

Institutional Arrangements

Dispute Resolution

Procedure for Review

Date of Implementation

CONFIDENTIAL

5

Slide6

Terminology RectificationRemedial Assessment

Self Help Unfit for habitationDefective Problematic Municipal services

CONFIDENTIAL

6

Slide7

BackgroundThe NHBRC legislation was enacted in 1998 & NHBRC became operational in 2002.

In 2004 BNG committed to enhance the quality of the residential products.The National Sales Campaign(NSC) revealed that certain dwellings constructed under the pre-1994 state financed housing dispensation do not comply with acceptable minimum technical and infrastructure standards.

The pre-1994 rectification programme was aimed at aligning the advancement of the sale and transfer of quality housing units to the relevant beneficiaries

.

CONFIDENTIAL

7

Slide8

BackgroundIn 2011 government realised that there is stock delivered between 1994 and 2002 that required to be rectified.

NDHS developed strategy for houses that were not enrolled with NHBRC and these covered houses constructed between 1994 and 2010 but this excluded

PHP

projects.

Such stock was to be quantified and audited by NHRBC and

no additional houses

were to be added (condition). The programme was to start from 1 April 2012 & be finalised by 31 March 2014.

CONFIDENTIAL

8

Slide9

2015/16 FINAL BUSINESS PLAN

Delivery variables/milestones

Annual Targets

Sites

Units

Funds Allocated

R'000

Eastern Cape

-

2 296

156 563

Free State

-

508

91 154

Gauteng

-

100

5 135

KwaZulu-Natal

-

2 273

204 579

Limpopo

-

500

43 500

Mpumalanga

-

-

500

Northern Cape - 95 12 022 North West - 598 80 980 Western Cape - 523 16 480 Total - 6 893 613 913

Situational Analysis

Slide10

Situational Analysis - KZN

Rectification of RDP Stock 1994-2002

Municipality

Projects

Delivery Targets

Emnambithi/Ladysmith

Cymax enterprise Rectification

-

Dezzo Holdings

24

Steadville

-

Umlilo Enterprise JV

60

Endumeni

Sbongile

Buffer Strip

-

Sthembile Glencoe Ext 2

-

eThekwini

Brooks Farm Rectification

20

Burlington Station : Phase 1

20

Emaplazini

20 Harmony Height 10 Lovu rectification - Westrich Phase 1 - KwaDukuza Mbozamo 10 MsunduziMsunduzi Wirewall 63 Revamp, refurbishment (Slangspruit) 18 UbuhlebezweMarianthal Mission 36 Umzimkhulu

Clydesdale

50

Riverside Phase 1

50

UMzimkhulu Ext 5&6

34

TOTAL

 

415

Slide11

Situational Analysis (Pre 94) - KZN

Rectification of housing stock (pre 1994)

Municipality

Projects

Delivery Targets

eThekwini

Austerville

29

Ex-own affairs

100

EX-R293 AREAS:PHASE 2

75

EX-R293 AREAS:PHASE 3

78

Marrianridge

22

Shallcross

21

Newcastle

Fairleigh Rectification

14

Surrayaville

Rectification

14

Subtotal 28 TOTAL  430 PROGRAMME TOTAL  845

Slide12

Situational Analysis (Post 94) – Free State

Municipality

Project Name/Description

Delivery Targets

Ngwathe Local Municipality

Fezile Dabi Maono Incomplete 2014/15 (Township Revitalization Program Ngwathe Mun. - Parys

 

-

Masilonyana Local Municipality

Soutpan 101 Two Rooms Ruwacon

-

Matjhabeng Local Municipality

Welkom - 100 Two-rooms E'tsho

-

Matjhabeng Local Municipality

Welkom Bronville 50 Two - Rooms E'tsho (rectification) 2014/15

-

Matjhabeng Local Municipality

Welkom Thabong 135 Two Rooms E'tsho 2015

-

Tokologo Local Municipality

Boshof - 35 Two Rooms Ruwacon

-

Tokologo Local Municipality

Dealesville 70 Two - Rooms Ruwacon

-

Mangaung Metro Municipality

Professional Resource Team Of Asbestos Eradication - Blackhead 2014

-

Mangaung Metro Municipality

Bloemfontein - 71 Malaykamp Ruwacon Two Rooms 2014/15 - Mangaung Metro MunicipalityBloemfontein 12 Heidedal Two-Rooms C-Max 2013/14( Inzuzo Trading - Mangaung Metro MunicipalityBloemfontein - 100 Rocklands C Max Dilapidated Two Room Units(2013) 3 Mangaung Metro MunicipalityBloemfontein - 100 Heidedal 2 Rooms - C Max 9 Mantsopa Local MunicipalityTweespruit 100 Two-rooms E'tsho(rectification) 6 Maluti a Phofung Local MunicipalityBluegum-bosch - 2000 TTC & Group Ywo Rectification 2013/14 ( Subs. Phase 3 (China Everbright)

-

Setsoto Local Municipality

Senekal - 100 Superb Two-rooms (2014/15)

9

TOTAL

27

Slide13

Situational Analysis (Post 94) – North West

Rectification of RDP Stock 1994-2002

Municipality

Project Name/Description

Delivery Targets

Ngaka Modiri Molema

Ratlou 2000

15

Ngaka Modiri Molema

Letsopa

Ext. 1 & 2 (Rectification)

17

Ruth Segomotsi Mompati

Ipelegeng 400

8

Ruth Segomotsi Mompati

Northern

Cape Cross Border Rectification Project

7

TOTAL

 

47

Slide14

Problem Statement Cost – Expenditure Review findings of R127 000 for rectification over and above the BNG costCommitments - Northern Cape 700 and signed contracts

Inability to hold contractors accountable Implications for the Warranty FundMagnitude of the stock to be rectified

Double subsidisation

Application of norms & standards

CONFIDENTIAL

14

Slide15

Policy OutcomeTo contribute to the improvement of the functional residential property market.Ensure legitimate expections are fulfilled – Pre-94

CONFIDENTIAL

15

Slide16

Objectives To facilitate

the use of self help approach and minimise the cost of doing remedial work by centralising the function to NHBRC.

To

encourage beneficiaries to advise

government on sub standard work in need of remedial action.

To

facilitate investigations

of shoddy workmanship on all stock that was built by government through Housing Subsidies

To

ensure

blacklisting of contractors

that have compromised

quality.

To ensure that

contractors pay back the funds

used/ pay towards rectification of houses.

To provide for

various options for conducting

remedial work- revised funding mechanism

CONFIDENTIAL

16

Slide17

Principles Accountability Transparency Value for money

Self HelpUniversal AccessRetributive Justice

Dr Zoleka Sokopo

17

Slide18

ScopePre 1994 – 2011 including PHPProperty belonging to municipality and or provincial government.

Property sold to beneficiaries but in need of upgrading to achieve technical norms and standard.Require renovations to address dilapidated conditions.

Remedial to terminate hazardous health , and safety conditions due to inappropriate design and construction methods

Confidential

18

Slide19

Prescripts  

Where residential properties have been transferred to the beneficiaries and improvement and or upgrading work is required,

The beneficiary must

provide written approval for access to the property

by the public authority and/or its agent and the intended upgrading/improvement work must meet with his/her written approval;

Where

municipal engineering services require upgrading/improvement,

MIG/ USDG will

be leveraged

for the funding allocation.

In the event MIG/USDG are insufficient the

annual housing development funding

allocation

will only fund

such municipal engineering service upgrading, improvement as a measure of

last resort.

CONFIDENTIAL

19

Slide20

Exclusions This excludes housing units that:

Were developed by the previous government for official use for employees of the state such as SAPS employees, magistrates, members of Parliament

etc;

Were developed by the

previous and/or existing parastatal institutions

for occupations by employees of such institutions.

Municipal and provincial owned

rental stock

that will never be

sold;

Houses that have

already been transferred to beneficiaries

who have already rectified the defects utilising their own resources;

Properties with defects that are

attributed to poor maintenance

; and

Properties with defects in

extensions to the original dwelling

.

Properties affected by disaster

 

CONFIDENTIAL

20

Slide21

Technical Norms and Standards

Due to the diversity of housing units that were delivered during the pre-1994 era, and proposed funding arrangements, it is impossible to determine a generic set of norms and standards for the top structures. However the dwellings must as a minimum comply with the following criteria: Safety and health conditions

- Dwellings should comply with minimum safety and health conditions and should under no circumstances pose any threat to the health and safety of the inhabitants.

Structurally sound

- Dwellings should be structurally sound and should not be subject to severe cracks in the superstructure resulting from severe foundation and wall failure.

Sound building practice and material use

- Dwellings should consist of quality materials and building practices must have been executed in terms of minimum standards, for instance roof tiles must comply with minimum standards to ensure secure roof cover construction and the absence of lintels should not compromise the integrity of any walls above window and door frames etc.

CONFIDENTIAL

21

Slide22

Targeted BeneficiariesThose that will benefit under the Programme would have to be the

vulnerable original beneficiaries

who acquired the property from the State organ. ( Aged, disabled, pregnant women and child headed)

However where the original beneficiary is deceased and

his or her heirs are now the registered owners of the property

, the MEC will have the discretion to extend the benefits of the Programme to such heirs on the merits of each individual case.

Where approved, rectification work to the dwelling would require the occupants thereof to be temporarily housed, the MEC may, upon receiving consent from the said occupants,

approve the provision of temporary accommodation

. (The National Housing Programme: Housing Assistance in Emergency Circumstances be utilised for this purpose)

CONFIDENTIAL

22

Slide23

Funding MechanismThe funding shall be defrayed from:

Warranty FundRepayments made by contractors

Contribution by beneficiaries

Moneys appropriated by Parliament

A 60/40 % funding split for original beneficiaries

A 90/10 % funding split for beneficiaries that purchased homes.

Ceding of contracts

CONFIDENTIAL

23

Slide24

Monitoring & EvaluationProvinces and Municipalities quantify the number of properties in need of remedial work

over the MTEFA National Register of Contractors

details of contracts,

deviations and

actions taken on contractors that built shoddy work(including sanctions).

CONFIDENTIAL

24

Slide25

Institutional ArrangementsNDHSPHDSMunicipalities

NHBRCCONFIDENTIAL

25

Policy and Legislative

Reform –

use of Warranty fund, assess, implementer and educator

Slide26

Recommendation It is recommended that the Committee n

otes and support the proposed draft remedial policy.CONFIDENTIAL

26

Slide27

THANK YOUCONFIDENTIAL27