It gives me a great pleasure to elaborate on the sterling work done by the department as highlighted in the Premier’s State of the Province (SOPA) address last week. Our core mandate as the Department of Local Government and Housing is to lead in the provision of human settlements and to co-ordinate the effective functioning of local government to promote sustained development in our communities. I will now discuss this mandate in relation to the Premier’s address to the people of our province.
Human Settlements Development
Over and above the 14 mixed housing developments announced by the Premier, the department is in the process of planning for more such developments in the Province. In total, we will have 26 mixed housing developments, which will be spread geographically:
- 9 - City of Johannesburg
- 8 - City of Tshwane
- 2 – City of Ekurhuleni
- 6 – West Rand DM
- 1 – Sedibeng DM
Amongst those concluded in this financial year are Cosmo City, Olievenhoutbosch Ext 27 and Alexandra Ext 10 project. Our aim is to de-racialise human settlements and to make sure that our spatial planning leads to integrated and united communities, living together and sharing all the amenities equally.
The Affordable Rental Housing Programme is one of the initiatives towards eradication of housing backlogs through provision of rental housing for low-income earners who cannot be accommodated in the formal private rental market. With regards to increasing the rate of affordable rental housing delivery, the department will provide rental units through Social Housing Institutions, small-scale via the backyard rental programme and the construction of Community Residential Units (CRUs).
The honourable Premier announced that R240 million has been set aside to purchase 15 pockets of well-located land in the province in order to develop more human settlements. We have identified various pieces of well-located land within Gauteng and already Request for Proposals have been issued to the market so that we can be able to develop such parcels in partnership with the private sector and have mixed land use approach that will cater for both commercial and residential needs.
In order to ensure a more compact city in line with the Global City Region Perspective, the department will embark on more effective and efficient land utilisation which will lead to a robust mechanism to harvest public land from all spheres of government for human settlements development purposes. The department will work closely with the Housing Development Agency to assist especially with the acquisition of private-owned land.
Single tier of government
The success in the amalgamation of the City of Tshwane and the former Metsweding District Municipality was a further catalyst and proof that the effective integration of municipalities can lead to better and enhanced service delivery to residents. In her address to the people of the province, the Premier has announced that we are working towards the single-tier form of government for the West Rand.
This historically rich mining region will be converted into a metro municipality, and this will also ensure that we mainstream resources for the improved service delivery in this area. As the MEC for Local Government and Housing, I have already submitted proposals to the Municipal Demarcation Board to this effect. The process of municipal conversion is quite thorough and involving and, it is our hope, that by 2016 the West Rand will be a metro.
Sweetwaters Housing Project
There are 3 informal settlements located in this area i.e Sweetwaters, Weiler’s Farm, and Thulamntwana. The Weiler’s farm informal settlement has already been formalised by the department. For Sweetwaters, all necessary planning processes have been completed and approval granted from the City of Johannesburg entities.
A consultative process with Rand Water Senior Management is ongoing in order to discuss and solicit their assistance in getting the plans approved as this also requires them to grant such approval. The implementation of Sweetwaters will resume once the capacity of the Sedibeng Waste Water Plant is upgraded. The Premier has announced the injection of R1.4 billion towards this water plant. This will be a welcome relief, especially for people in the South, particularly in Sweetwaters.
Bekkersdal Urban Renewal Programme
The Bekkersdal Informal Settlement is situated on dangerous dolomatic land and comprises over 15000 households. The department has initiated plans to relocate the informal settlement to the Middelvlei / Droogeheuwel and Westonaria Mixed housing projects. This project is situated in Randfontein comprising 9000 housing opportunities. An agreement has been reached with all stakeholders including those in Randfontein to earmark 50% of these units for allocation and relocation of Bekkersdal Informal Settlement.
To this end, Phase1 of this development, namely Mohlakeng ext11 has already been completed with 500 houses which will accommodate 250 beneficiaries from Bekkersdal Informal Settlement. There is a task team that deals with accelerating service delivery in the priority area of Bekkersdal. Included, in this team, is the Presidency which is represented by the Ministry of Monitoring and Evaluation. The team is tasked with addressing key challenges of all the affected community members of Bekkersdal. The process of allocation is currently taking place at Mohlakeng Ext 11.
Also, last year, we launched a mixed housing development in Westonaria Borwa which will cater for close to 5000 families once completed. The beneficiaries will be drawn from the local communities. Construction of water and sewer is 87% complete, as indicated by the Premier, and the Westonaria Local Municipality has given a go-ahead for the commencement of top structure construction.
R1billion Housing Fund
Since the announcement of this fund by the President, and now the Premier, most citizens and the media have taken interest in this fund, and I am sure this has come as good news for many South Africans who do not qualify for an RDP house and are also unable to secure home loans from financial institutions.
At present a cash deposit of between 10% and 30% is required by lenders. Fortunately, consumers with a gross household income of up to R11 000 per month are able to access a guarantee from the Home Loan Guarantee Company for this purpose. However first time home buyers whose incomes are above this level are unable to access their entry level home without the above cash deposit.
In terms of the National Credit Act, this fee may however not be added to the loan amount. Accordingly, either customers are required to raise this amount (about R18 000), or alternatively lenders will be required to price this into their interest rate (risk consideration as loans will exceed the purchase price of the property by this amount).
The Minister of Human Settlements and all MECs for Human Settlements in all nine provinces, last year in September, approved the Mortgage Default Insurance (MDI). This will be done by reviewing the Finance Linked Individual Subsidy Programme (FLISP) income bands to include households earning from R3 501 to R15 000 per month.
This, in practical terms means that government will be able to stand in as surety in order to allow banks to relax lending conditions to needy people who currently cannot qualify for an RDP house, but at the same time are unable to secure a mortgage loan from financial institutions in order to buy and own property, since they are regarded as flight risks. In this regard, people will be able to purchase property to be financed under this programme and these will vary from R180 000 to about R300 000 depending on location and other factors.
This will be one of the best and notable Public Private Partnerships (PPPs) in the history of Housing in the post-apartheid South Africa. This is further proof of the commitment we have made in accelerating access to housing, thereby improving and making the lives of our people better whilst restoring back their dignity.
For more information contact:
Motsamai Motlhaolwa
Cell: 079 897 2240
