PRESENTATION TO THE PORT FOLIO COMMITTEE ON

HOUSING

MRS.BRIDGETTE MABANDLA, MP

MINISTER OF HOUSING

STRUCTURE OF PRESENTATION

1. REPORT ON THE NATIONAL HOUSING SUMMIT

2. REPORT ON WOMEN IN HOUSING WORKSHOP

3. UPDATE ON THE COMMUNITY REINVESTMENT (HOUSING) BILL

4. UPDATE ON PIE AMMENDMENT BILL

REPORT ON THE NATIONAL

HOUSING SUMMIT

HELD AT GALLAGHER

ESTATES IN GAUTENG ON THE

19TH AND 20TH NOVEMBER 2003

1. Objective of the Summit

• The Theme Was:

Re-establishing Partnerships for Sustainable Development.

The objectives were to:

look, listen and decide on what the future housing policy and research agenda should entail

2. Structure of the SummitThe Summit was conducted on the basis panel discussions

on specific themesThe seven themes were:• Theme 1: Urbanisation and informal settlements• Theme 2: Urban regeneration and social housing• Theme 3: Housing needs and rights to housing• Theme 4: Participation and partnerships• Theme 5: Quality housing delivery systems• Theme 6: Housing finance• Theme 7: Capacity building for effective delivery

3. Theme 1: Urban-rural Linkages and Informal Settlement

• The Census can provide valuable information for policy consideration process.

• The challenges are integrated development, addressing affordability, promoting a secondary housing market and addressing HIV/AIDS

Theme 2: Urban Regeneration and Social Housing

• Social housing can play a significant role in this regard

• Government Departments will have to approach development on coordinated basis

• The current capital subsidy for social housing needs revision

Theme 3: Housing Needs

• Special housing needs for those infected by HIV/AIDS and the disabled were one again emphasised at the Summit

• Government’s housing development strategy is moving towards a demand-driven approach as apposed to the previous supply driven regime

Theme 4: Participation and Partnerships

• There is overall support for partnerships and the participation of communities

• A request was made for an Office on Women

• BIFSA offered expertise and the ability to deliver at scale

• Sustainable housing delivery are not exclusively the domain of housing

Theme 5: Quality Housing Delivery Systems

• Government’s shift to quality housing was emphasised

• Quality should also include quality environments

• For low-income housing, there is always the tension between profit and quality, making monitoring of compliance essential.

Theme 6: Housing Finance

• The Banking Sector indicated a new commitment to low-income housing finance through the Financial Services Charter (FSC)

• The Government was urged to also look at other models that help the poor,

• The capacity of poor households to mobilise savings for building their own houses was also illustrated

• Government is conscious that the initial commitment by the financial sector through the Botshabelo Accord has not been fully implemented and it welcomed the FSC.

Theme 7: Capacity Building for effective Delivery

• The importance of capacity building in the provision of housing and infrastructure was stressed

• The most important point that emerged is the need for partnerships in capacity building.

4. Recommendations from the Summit

• A need for a differentiated and flexible informal settlement upgrading/development policy;

• An enabling policy environment and a new vision for social housing;

• A redefinition of the notion of sustainability and the introduction of protocols for synchronising the activities and investments of government departments;

• The use of planning instruments and partnerships to make land markets work better for the poor;

4. Recommendations from the Summit continue

• Legislation on property and inheritance rights for children in a context of HIV/AIDS and provision for child-headed households in existing housing policy instruments;

• A policy framework to more specifically address the housing needs of the disabled, including a revision of targeted allocation of projects to the disabled by 2007;

• The establishment of an Office on Women in the Department and formal, quarterly meeting to ensure ongoing dialogue;

4. Recommendations from the Summit continue

• Partnerships with BIFSA based on the strengths and contributions of the different parties;

• Representation of the Department of Housing on the Public Works Steering Committee;

• Simplify PHP documentation and develop a housing partnership approach through the PHP;

4. Recommendations from the Summit continue

• Increased consultation with organisations of poor people, especially around policy change;

• Speed up the issuing of title deeds registration

• Unblock the release of some R47m in housing subsidies to the South African Homeless People’s Federation

5. The Way Forward

• The National Housing Summit, the results of the preceding consultation process and the results of the recent evaluation of the Housing Subsidy Programme by the Public Service Commission will now be taken forward in the development of a housing policy and research agenda for the medium to longer term.

5. The Way Forward

• This will enable the Department to align the Multi Year Housing Development Plan with the said agendas and

• The alignment thereof with provincial multi year housing development plans will subsequently be pursued.

REPORT ON THE WORKSHOP

ONWOMEN

IN HOUSING

6 November 2003

To engage stakeholders in the sector on the challenges and issues which women are experiencing

To identify a process to address the challenges

Objectives

Integrated development of living environmentsParticipation by women in development processesNeeds of people with disabilitieseconomic empowerment of women

PHP as a development tool

Women as Consumers - issues raised

Tenure security for rural womenPractical issues around the R2479 own contributionConsumer educationAccess to housing finance

Women as Consumers - issues raised

lack of access for professionalsCommitment to the 10% target for women contractorsLack of access to financeStrengthening the role of women in the PHP processNeed for monitoring

Women as Service Providers - issues raised

Progressively contributing R2479Monitoring the 10% target Increase PHP support grantDealing with absconded spousesTitle deeds in name of both partiesDirectory of women service providers

Interventions for Further Investigation

Establish task teams to investigate issuesIssues to be part of the DOH Policy and Research AgendaForum for women in housingWomen to participate in policy processes

Recommendations

COMMUNITY REINVESTMENT (HOUSING) BILL

Presentation to Portfolio Committee on Housing on 3 February 2004

Community Reinvestment (Housing) Bill

• LEGISLATIVE CHALLENGESSection 26– (1) right to access adequate housing

– (2) State compelled to take legislative measures

• e.g. Housing Act of 1997, Home Loan & Mortgage Disclosure Act of 2000

Policy Challenges

– Obligations of financial sector under the Botshabelo Accord (ROU)

• Target of 50,000 loans/year was not met

• No targeting since 1998

– Institutional mechanism required to:

• Replace MIF & Servcon

• Facilitate credit-linked subsidies

Mortgage Indemnity Fund (MIF)

• Mortgage Indemnity Fund (MIF) operated from 1995-1998:– Charged with the normalisation and stabilisation of the

mortgage lending environment; negotiated with community leaders

– Offered indemnity for losses in previously redlined areas (but indemnity was not usable because of delays in completing the foreclosure process)

Termination Of ROU

Termination of ROU in July 1998

– Record of Understanding was terminated by Cabinet as of July 1998;

– There has been no structure for dealing with redlining since 1998;

– Cabinet confirmed the role for government in regulating the housing finance sector to ensure access.

Credit Linked Subsidies

Credit Linked Subsidies as a Percentage of Total Subsidies

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03

% Credit Linked ApprovedSubsidies

Recent History Of Community Reinvestment (Housing) Bill

• Bill submitted to Cabinet early August 2003.

• Cabinet resolved that the mattter be held in abeyance pending the drafting of a Financial Services Charter. Once this has been completed the need for a legislative framework to ensure access to housing finance will then be considered.

Financial Sector Charter

• Was signed towards end of 2003.• The Financial Charter does speak to the essential

elements of equity and access. The issues about how these relate to housing need to be further explored within the Financial Charter process.

• “First – order retail products” (Section 2.27 of Charter) means, inter alia, credit for low-income housing (minimum income of R500 per month).

Financial Sector Charter

• The perceptions (real or perceived) of lack of access to finance for the low income market needs to be addresses and resolved. These include– The persistent perception around “redlining” and

levelling the playing field;– Stretched targets across a disaggregated market at the

lower end.– Perceptions around the fairness of operational

procedures with reference to the housing finance and properties in possession. In this regard the recent concern of the Banking Ombudsman in relation to the manner in which properties in possession are handled.

Financial Sector Charter (Continued)

• “Targeted Investment” means financing of or investment, inter alia, in low income housing for households with a stable income in excess of R1500 per month and less than R7500 per month. This income band will be increased in line with inflation on 1 January each year.

Community Reinvestment – The Way Forward

• To establish extensive engagement with the Charter process

• Regulations under Home Loan and Mortgage Disclosure Act (HLAMDA) to be finalised and promulgated as soon as possible.

• HLAMDA to come into operation immediately the Regulations are in place.

Departmental Needs

• Department to revisit discussions which took place at recent Housing Summit, the strategic response and intent to define the Department’s Policy and Research Agenda will assist in putting access to low income finance in perspective and ensure that a meaningful and focussed strategic plan is put in place.

The Prevention of Illegal Eviction from and Unlawful

Occupation of Land Amendment Bill

Presentation to Portfolio Committee on Housing –

Tuesday 3 February 2004

Background

• Prevention of Illegal Eviction from and Unlawful Occupation of Land Act, 1998 (Act No. 19 of 1998), hereinafter called “PIE,” came into operation on 5 June 1998.

• Objectives of PIE:– To prohibit receipt or solicitation of

consideration in respect of unlawful occupation of land;

Background (Continued…)

– To set out processes for the eviction of unlawful occupiers by owners of land;

– To provide for evictions on an urgent basis;– To set out process for evictions at instance of

an organ of State;– To provide for a mediation process in the event

of a dispute;

Background (Continued…)

– To provide for offences and private prosecutions;

– To provide for jurisdiction of the Magistrate’s Court in eviction proceedings;

– To provide for the transfer of powers, duties or functions;

– To repeal and amend certain laws;– To provide for the making of Regulations.

Problems arising from the Interpretation and Implementation

of PIE

• Definition of “land” needs to be widened to include a portion of land and buildings and structures on land as well as to make specific reference to residential and commercial land.

• Nothing in Act which prohibits a person from arranging or organising a person to occupy land without the owner’s consent.

Interpretation and Implementation of PIE (Continued…)

• The prohibition in PIE against receiving money for arranging or organising the unlawful occupation of land is too restrictive and needs to be widened to include all illegal proceeds related to unlawful occupation

• The majority decision of the Supreme Court of Appeal cases of Bekker and Ndlovu handed down on 30 August 2002 which brought tenants and mortgagors under the Jurisdiction of PIE

Judgement in Ndlovu/Bekker Cases

• By a majority of 3 to 2 judges, the Supreme Court of Appeal held:– That tenants who remain in the premises after a lease

has been lawfully terminated are in the same position as unlawful occupiers of land and that the procedures in PIE must be followed when evicting them.

– That mortgagors who default on their mortgage payments and stay in the premises after the Bank has foreclosed are also in the same position as unlawful occupiers of land and that the procedures in PIE must be followed when evicting them.

Ndlovu/Bekker (Continued…)

• When the Prevention of Illegal Eviction from and Unlawful Occupation of Land Bill was debated in Parliament it was not the intention of the legislators to extend the provisions of the Bill to include tenants and mortgagors.

Proposed Amendments to Act

• In view of the Ndlovu/Bekker judgement the Act needs to be amended to exclude tenants and mortgagors from the operation of the Act, because:– The judgement has resulted in landlords and developers

withdrawing from the rental housing market because of the added difficulties in evicting tenants when the lease has been lawfully terminated.

– It can be argued that the written agreements between landlords and tenants and mortgagors and mortgagees (Banks) are violated if landlords or banks have to comply with the more onerous provisions of PIE when evicting defaulting tenants and mortgagors, respectively.

Proposed Amendments (Continued…)

• The proposed amendments to exclude tenants and mortgagors from the provisions of the Act will:– Eviction should occur after an order of court

has been issued.

Proposed Amendments (Continued…)

– Add certainty to the manner in which categories of unlawful occupiers are to be evicted: unlawful occupiers of land will be evicted under PIE; tenants who hold over will be evicted under the Rental Housing Act and mortgagors who hold over will be evicted in terms of the mortgage agreement.

– Generally restore confidence to the housing and banking sectors.

Summary of Proposed Draft Amendment Bill

• Definitions of “land”, “Minister”, and “unlawful occupier” have been amended.

• New definitions of “occupy” and “possession” have been inserted.

• The application of the Act has been amended to specifically exclude any proceedings:– For the eviction of any tenant or former tenant or any

person occupying land through the title of such tenant or former tenant;

Summary of Proposed Draft Amendment Bill (Continued…)

– By a mortgagee for the foreclosure of the bond and the eviction of a mortgagor or of any person holding title through the mortgagor;

– To any land acquired by way of a sale in execution or judicial sale of property.

• Prohibition of arranging or organising or permitting anyone to occupy land without the consent of the owner or person in charge of the land.

Summary of Proposed Draft Amendment Bill (Continued…)

• Prohibition of receiving payment of money as fee for arranging occupation of land is extended to include receiving rent. The money or rent includes membership fees, legal costs, administration costs, services, services connection fees or payment for any socio-economic infrastructure.

• Money collected as rental money which was not paid to landlord is forfeited and paid back to the landlord.

Summary of Proposed Draft Amendment Bill (Continued…)

• Some technical difficulties are rectified, such as deleting any reference to the Court serving notices when this is clearly not the Court’s duty.

• Consequential amendments arising from the above amendments and additions.

Other Initiatives of Department of Housing to Ease the Plight of Evictees

• Department of Housing has developed an approved Emergency Housing Programme

• The Department is also working on a framework to manage the interface between actions taken at different spheres of government dealing with unauthorised occupations and due process for managing evictions.

THIS PRESENTATION INCLUDED FOUR ISSUES

AS REQUESTED

THANK YOU