Revised Strategic plan 2015-2020 and 2016-2017 Annual Performance Plan 15 March 2016

1. Revised Strategic plan 2015-2020 and 2016-2017 Annual Performance Plan 15 March 2016 Mr. M. Tshangana

2. Presentation overview • Introduction • Vision and Mission • Departmental Goals and Strategic Objectives • MTSF Sub-outcomes to achieve the vision • Process followed in developing the plans • Revised Strategic Plan targets (2015-2020) • Summary of APP Priorities per programme • APP Targets and performance indicators per Programme • Budget Allocation

3. Introduction In line with the NDP, the Human Settlements aims at achieving visible results from effectively coordinated spatial planning systems by 2030 and this is done through : • The development of the Spatial Master Plan for Human Settlements that will direct investments to the priority precincts • Implementation of Catalytic Projects • Prioritizing, targeting and focusing resources (financial and other) towards scale delivery • Supporting and encouraging government and private sector collaboration and integration • Promoting the participation of Youth and Women in human settlements development programmes • Scaling up delivery on the informal Settlements Upgrading Programme

4. Vision and Mission Vision A nation housed in sustainable Human Settlements Mission To facilitate the creation of Sustainable Human Settlements and Improved Quality of Household Life.

5. Departmental Strategic Goals • Enhanced efficiency and effectiveness of the department • Integrated and responsive human settlements sector planning and policy environment • Increased delivery of adequate housing in quality living environments

6. Departmental Strategic Objectives • Promote efficient and effective administrative processes • A capacitated and diverse workforce in a conducive working environment • Effective and efficient legal support • Promote internal and external communication on human settlements • The ICT infrastructure is reliable, secure and available • Development of human settlements policies and programmes for improved alignment • Establishment and strengthening of partnerships for human settlements development • Provide implementation support on the delivery of adequate housing • Improved support and capacity for the human settlements sector • Efficient and effective utilization of human settlements grants and monitoring lending patterns by financial institution

7. MTSF Sub-Outcomes to achieve the Vision In order to achieve the vision of sustainable human settlements and improved quality of household life the DHS will drive effective programmes to achieve the following: • Adequate housing and improved quality living environments • A functionally equitable residential property market • Enhanced institutional capabilities for effective coordination of spatial investment decisions

8. Strategic Planning process • The First Draft of APP was submitted to DPME for assessment as per the Framework requirements (31 August 2015) and to Auditor General • A second draft of the APP submitted on the 30 November 2015 took into consideration the comments by the oversight bodies • Engagement meetings to address the comments by DPME and AG were arranged • The revised strategic plan and the final APP was submitted to AG and DPME for further assessment • AG’s final findings were taken into consideration in the final APP adopted the executive management of the department • Issues relating to findings of the previous years have been addressed (Inconsistencies and Measurability )

9. Strategic Plan Priorities in line with the MTSF • Policy for Coherent and Inclusive Approach to Land for Human Settlements • Human Settlements White Paper • Housing Code revised • Housing Act amended • 2200 Informal settlements upgraded • 750 000 Households provided with basic services • 563 000 subsidy housing opportunities provided • 110 000 loans (70 000 FLISP and 40 000 DFI supported) issued • 27 000 social housing units • 10 000 CRU • 35 000 affordable rental housing opportunities provided

10. Strategic Plan Targets (2015-2020) ; Programme 1 • Unqualified audit report • Compliance with statutory tabling and prescripts • Implementation of the approved internal audit planand risk management plan • PAIA information requests processed • Compliance to HR Statutory Requirements • Human Settlements legislative framework developed • Availability of the HSS Database Systems and IT services • Implementation of the Communications Strategy

11. Strategic Plan Targets (2015-2020); Programme 2 • Framework on coherent and inclusive approach to land developed • Seven evaluations of key human settlements strategic thrust completed • Human Settlements White Paper approved • Housing Act amended and Human Settlements Legislation approved • Housing Code revised and Human Settlements Code approved • Approved Human Settlements Master Spatial Plan • Guidelines for Human Settlements Planning and Design revised • Increase in participation of stakeholders in human settlements development

12. Strategic Plan Targets (2015-2020); Programme 3 • Supporting the functioning of the residential property • 900 000 title deeds backlog eradicated • 10’000 hectares of well-located land acquired, rezoned, and released for new developments targeting poor households • 50 catalytic projects implemented • 21 human settlement interventions in mining towns • 2 200 Informal settlements Upgraded • 2 200 informal settlement upgrading plans developed • 750 000 households provided with basic services • 563 000 subsidy housing opportunities provided

13. Strategic Plan Targets (2015-2020); Programme 3 • 35 000 Affordable rental units through the private sector • 27 000 Social Housing units • 10 000 Community Residential Units (CRU) • A Single DFI established

14. Strategic Plan Targets (2015-2020); Programme 4 • Approved Human Settlements Grants Frameworks • HSDG & USDG quarterly performance reports • Annual report on the performance of financial institutions and their lending patterns on home loans • Housing finance regime framework revised

15. 2016 / 2017 APP- Priorities The Department through the 2016 /17 APP has prioritised the : • Achievement of Good Corporate Governance by putting management systems to support institutional performance in critical areas for efficiency • Development and Finalization of the White Paper for Human Settlements • Revision of the Housing Code Delivery of housing opportunities through: • Informal Settlements Upgrading Programme including PHP • Provision of technical support to municipalities for informal settlement upgrading • Upscaling the delivery of affordable rental housing opportunities • Implementation of Catalytic Projects

16. 2016 /2017 APP- Priorities ….. • Housing of Military Veterans • Implementation of human settlements interventions in mining towns • Eradication of the title deeds backlog and the transfer of title deeds for new properties in the subsidy market • Acquiring, rezoning and release of well located land targeting poor households • Implementation of capacity building support programme across the sector • Strengthening of partnerships for better delivery

17. Summary of programme 1 targets • Compliance with statutory tabling and prescripts and implementation of the approved internal audit plan for good governance • Compliance to Human Resource Statutory Requirements and Implementation of the Human Resource Plan • Development and roll out of the Legislative Programme • Ensuring that the ICT infrastructure is reliable, secure and available • Implementation of the approved communication strategy • Knowledge and information management systems developed and implemented • Ensuring a secure working environment

18. Summary of programme 2 targets • Development of Multi Year plan for Human Settlements • An approved Human Settlements Master Spatial Plan • Revised Guidelines for Human Settlements Planning and Design (Red Book) • A Draft White Paper for Human Settlements • A framework for the revision of the housing code • A Revised Accreditation Framework • Provinces and Metros supported in the implementation of PHP Policy • Mobilisation and strengthening of stakeholder participation in Human Settlements Development

19. Summary of programme 3 targets • 100 000 title deeds backlog eradicated • 2 455 hectares of well-located land acquired, rezoned, and released for new developments targeting poor households • 15 catalytic projects implemented • 9 human settlements interventions implemented in mining towns • 500 Feasibilities conducted on informal settlements • 444 Informal settlement upgrading plans developed • 175 000 households provided with basic services • 115 000 housing opportunities provided including Military Veterans

20. Summary of programme 3 targets • 6 301 Social Housing units delivered • 3 700 affordable rental opportunities delivered • 2 000 Community Residential Units (CRU) delivered • Projects under implementation monitored and verified (HSDG and USDG) • Evaluation studies (Affordable Housing, Access Evaluation) conducted • DFI operational integration completed • 4 Shareholder Compacts of the human settlements entities aligned to the MTSF targets (2017/2018) • 22 860 youth, women, military veterans participating on human settlements skills development programmes

21. Summary of targets programme 4 • Approved Human Settlements Grants Frameworks • HSDG & USDG quarterly performance reports • Annual report on the performance of financial institutions and their lending patterns • State Finance Products for the affordable market revised

22. APP : Programme 1

23. APP :Programme 1

24. APP : Programme 1

25. APP :Programme 2

26. APP :Programme 2

27. APP :Programme 3

28. APP :Programme 3

29. APP :Programme 3

30. APP :Programme 4

31. 2016 MTEF allocation • The budget of the Department was negatively affected by the economic downturn.

32. Budget reductions over 2016 MTEF • R1.6 billion cut to the Human Settlements Development Grant in the 2016/17 financial year; • R807 million reduction of the Urban Settlements Development Grant as follows; • R236.4 million in 2016/17 financial year; • R235.8 million in 2017/18 financial year; and • R335 million in 2018/19 financial year.

33. Budget reductions over 2016 MTEF cont. • The goods and services budget was reduced by: • R6.6 million in 2016/17; • R10.8 million in 2017/18; and • R41 million in 2018/19. • Compensation of employees was reduced by: • R28.9 million in 2017/18; and • R43.1 million in 2018/19.

34. Net result based on allocation letter

35. Compensation of employees • The current staff establishment consists of 893 positions. Of these 646 are funded positions, of which 605 are filled and 41 are vacant. Of the 893 positions 247 are unfunded. • The Department will have to implement measures as to ensure that the Department will be able to meet the shortage, otherwise other severe measures will have to be implemented.

36. Impact of the Reduction on the Human Settlements Development Grant

37. Impact of the Reduction on the Urban Settlements Development Grant

38. Allocation by Programme for the 2016 MTEF period

39. Operational allocation by Programme for the 2016 MTEF period

40. Allocation over MTEF by economic classification according to latest allocation letter

41. Recommendation • It is recommended that the Portfolio Committee notes the Annual Performance Plan for 2016/2017 and the Revised Strategic Plan for 2015-2020 • It also recommended that the Portfolio Committee notes that reporting on the APP will also include the number of beneficiaries allocated

42. THANK YOU “We have come a long way – Celebrating 20 Years of Freedom!”