Presentation to the Portfolio Committee on Human Settlements

Administration of Beneficiary:Implementation of the Allocation Strategy for

housing opportunities created through the National Housing Programmes

Background

• In response to allegations of mal-administration and fraud regarding the allocation of state subsidised houses during 2007 and 2008, the then Minister of Housing approved the Housing Allocation Strategy in 2008;

• Investigations also revealed the need for a National Housing Needs Register from which the selection of beneficiaries could be made.

Salient features of the Allocation Strategy

• It is an attempt at isolating the housing allocation process from unwarranted interference;

• A structured process for the selection and approval of applications was introduced;

• Priority criteria for beneficiaries have been developed;• The Strategy provides procedures for each National Housing

Programme; and• The process is directly linked to the National Housing Needs

Register.

• Qualification Criteria– The entry level and general criteria of the housing subsidy

scheme still apply;– Programme specific criteria also still apply

• Priority criteria were introduced:– The Aged and disabled;– Families; and– Women headed households with children.

Salient features of the Strategy

• Persons registered on the National Housing Needs Register do not automatically qualify for subsidies;

• Persons on the Register will be invited to complete application forms when housing opportunities become available;

• All applications so received will be subject to verification and a structured evaluation and approval process follows.

Salient features of the Strategy

• The allocation process in this strategy applies to housing opportunities created through:

– Integrated Residential Development Programme (IRDP); and

– The Upgrading of Informal Settlements programme (UISP)

Application of the Strategy

• The Strategy will not apply to:

– The Individual Subsidy programmes;– Consolidation subsidies;– Peoples Housing Process (PHP) subsidies; and– Rental Housing programmes.

Application of the Strategy

Institutional ArchitectureThe Strategy entails the following role players:

• The Allocation Committee (AC);• The Provincial Departments of Human Settlements/Housing;• The Municipality;• The National Department of Human Settlements;• The Project Manager(PM); and• External auditors, where applicable.

• The Allocation Committee must, as a minimum, comprise the following public sector officials:

• Two members from the Office of the City/Municipal Manager• Two members representing the Provincial Department

of Human Settlements/Housing; and

And May not include any political office bearers.

Institutional Architecture

Allocation process• When houses/opportunities become available:– The municipality will determine the selection criteria to apply

for the specific project- region, priority status etc.;– It will request the Province to obtain a list of potential

beneficiaries from the National Needs Register, that meet the set criteria;

– Once received, the AC will verify the list and request the Project Manager to contact the persons on the list and invite them to apply for housing subsidies;

– The PM will liaise with each applicant in collecting all the documents and the selection of stands and houses;

– Application documents may not be older that three months;– The applications received will be assessed by the AC against

the list of invitees and qualification criteria;– The applications are then submitted to the MEC for approval.

• Once the application is approved it will be recorded on the National Housing Subsidy Database (NHSDB);

• The conditional purchase agreement between the developer and beneficiary will take effect;

• The property will be transferred to the beneficiary;• The National Housing Needs Register will be updated to

reflect this status

Allocation process

Registration Process on the NHNR• Questionnaire process of collecting potential beneficiary data

and subsequently capturing it on the NHNR is applicable. • Field Workers assume the role of data collection.• Where necessary Provincial Departments of Human

Settlements assist their Local Municipalities in acquiring field workers for purposes of data collection.

• Field Workers make visits to actual communities to collect the data.

• Municipal officials (or appointed service providers) capture completed questionnaires on the NHNR creating records for respondents that will form part of the register.

Communication • NDHS communicates with the provincial accreditation

managers and they subsequently communicate with their respective municipalities. Municipalities then communicate with potential beneficiaries.

• NDHS conducts quarterly NHNR workshops in which Provinces and their respective Municipalities are invited.

Thank you