HUMAN SETTLEMENTS PLANNING Presentation to Human Settlements Portfolio Committee 9 June 2009

1. HUMAN SETTLEMENTS PLANNINGPresentation to Human Settlements Portfolio Committee9 June 2009

2. Introduction Planning Requirements of the Comprehensive Plan The Plan advocates: • Greater coordination between national, provinces and municipalities in planning. • Confirms process of IDP’s forming basis for provincial development plans • Municipalities to assume a leading role in the housing process. • NB!! Proposes a Housing Chapter for all IDP’s.

3. Structure of Presentation • (Macro) Planning Cycle • (Housing) Planning Cycle • IDPs & Housing Chapters • Annual Performance Plans (APPs) & Multi-Year Housing Development Plans (MHDPs) • Human Settlement Planning: Current Conjuncture

4. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 MTEF (3 years) MTEF (3 years) MTEF (3 years) MTEF (3 years) MTEF (3 years) MTEF (3 years) MTEF (3 years) MTEF (3 years) MTEF (3 years) MTEF (3 years) MTEF (3 years) MTEF (3 years) Year 1 Budget Year 2 Budget Year 1 Budget Year 3 Budget Year 2 Budget Year 1 Budget Year 3 Budget Year 2 Budget Year 1 Budget Year 1 Budget Year 3 Budget Year 2 Budget Year 2 Budget Year 3 Budget Year 1 Budget Year 3 Budget Year 2 Budget Year 1 Budget Year 3 Budget Year 1 Budget Year 2 Budget Year 2 Budget Year 3 Budget Year 1 Budget Year 3 Budget Year 2 Budget Year 1 Budget Year 3 Budget Year 2 Budget Year 1 Budget Year 3 Budget Year 1 Budget Year 2 Budget Year 2 Budget Year 3 Budget Year 3 Budget APP For Year 1 APP For Year 2 APP For Year 1 APP For Year 3 APP For Year 2 APP For Year 1 APP For Year 3 APP For Year 2 APP For Year 1 APP For Year 1 APP For Year 3 APP For Year 2 APP For Year 2 APP For Year 3 APP For Year 1 APP For Year 3 APP For Year 2 APP For Year 1 APP For Year 3 APP For Year 1 APP For Year 2 APP For Year 2 APP For Year 3 APP For Year 1 APP For Year 3 APP For Year 2 APP For Year 1 APP For Year 3 APP For Year 2 APP For Year 1 APP For Year 2 APP For Year 1 APP For Year 3 APP For Year 2 APP For Year 3 APP For Year 3 (Macro) Planning Cycle Election Election Election 5 Year Election Mandate 5 Year Election Mandate 5 Year Election Mandate Electoral Cycle • Five-year Strategic and Performance Plans: Multi-Year Hsg Development Plans (MHDPs) 5 year Strategic & Performance Plan detailing Targets & priorities 5 year Strategic & Performance Plan detailing Targets & priorities 5 year Strategic & Performance Plan detailing Targets & priorities • Annual Performance • Plans and Budgets: Conditional Grant Framework • (with 3 Year MTEF)

5. Housing Planning Cycle

6. Planning Cycle Macro Plng Cycle Housing Plng Cycle NSPD MTSF Nat’l Strategic Plan Nat’l PGDS MHDP APP: Conditional Grant Business Plan Prov. IDP Housing Chapter Local

7. PROGRAMME for the DEVELOPMENT of HOUSING CHAPTERS of MUNICIPAL INTEGRATED DEVELOPMENT PLANS

8. Hsg Chapters of IDPs MFMA, 2003 • Requires municipalities to submit service delivery, multi year business and budget implementation plans for the budget year. • Provides that these plans must take into consideration the IDPs for budget purposes.

9. Hsg Chapters of IDPs What is a Housing Chapter? • A 5 year housing plan undertaken by a Municipality, & subsumed into the Municipal IDP. • Hsg Chapter reviewed annually as part of annual review of IDP. • Comprises, among others, the following: • Analysis of housing demand; • Strategy for the supply of housing demand; • Set of designed and prioritized housing projects; • Integration of housing strategies and projects with the other sectors.

10. Hsg Chapters of IDPs Purpose: • To achieve integrated development; • To ensure that contents and process requirements of planning for housing are adequately catered for in the IDP process; • To ensure effective allocation of limited resources; • To ensure that there is indicative subsidy budgeting and cash flow planning at both the municipalities and provincial levels

11. DEVELOPMENT of PROVINCIAL MULTI-YEAR HOUSING DEVELOPMENT PLANS

12. Multi-Year Hsg Dev. Plans (MHDPs) The Housing Act, 1997 • Provinces must prepare and maintain multi-year housing development plans. • Housing Development at municipal level must be part of integrated development planning.

13. Multi-Year Hsg Dev. Plans (MHDPs) Purpose: • Strong strategic focus • Sets out the delivery strategy for a given Housing Department • Serves as a management tool for Nat’l & Prov housing departments • Informs strategic decision-making, among others: • Housing Vote & Allocations to Provinces; • Mitigation against risks in respect of housing delivery

14. Inter-relationship of Plans Macro Plng Cycle Housing Plng Cycle NSPD MTSF Nat’l Dept Strategic Plan Nat’l PGDS MHDP APP: Conditional Grant Business Plan Prov. IDP Housing Chapter Local

15. HUMAN SETTLEMENTS PLANNING CURRENT CONJUNCTURE

16. Multi-Year Hsg Dev. Plans (MHDPs) • Provinces clear about their visions, missions, values, legislative and policy mandates, housing demand and need, housing strategic issues departmental policies, priorities and strategic goals. • However, less so, in respect of integration & alignment across the national, provincial and municipal spheres (sectorally). • Variance, in terms of alignment between provincial and local plans: • Free State, N/Cape, W/Cape & KZN highlight lack of alignment between IDP housing chapters & Multi-Year Housing Dev. Plan, as a risk. • Gauteng highlights the IDP and MHDP as part of the core informants to central planning.

17. Hsg Chapters of IDPs Operational: • District/Local Municipalities • Lack of understanding around significance of developing the Housing Sector Plans, & limited understanding of its relations to IDPs. • Limited evidence of Spatial Development Plans (SDFs), which is key for planning, implementation and decision-making. • Metro’s • Use of housing sector plans in local planning processes is well understood. The challenge is lack of capacity and strategic direction to implement housing sector plans, & housing delivery in general.

18. Hsg Chapters of IDPs Substantive: • Impact of urbanization, migration & proliferation of informal settlements places pressure on housing development and management of open space. • Maintenance & operation of bulk & internal infrastructure is problematic especially in informal settlements. • Grants such MIG do not cater for shortfall in operating expenses and maintenance of existing infrastructure.

19. Human Settlements Plng:Current Conjuncture Overall: • Lack of alignment of provincial multi-year housing delivery plans with approved IDPs; • Non-alignment of financial streams of housing and social facilities and infrastructure; • Lack of comprehensive planning within IDPs that would form the basis for housing development initiatives; and • Lack of meaningful Prov. & National Housing Development Plans; that should form basis for accurate targeting and budget allocations.

20. Human Settlements Plng:Way Forward • Work towards having practical documents that can be used as reference planning documents for provinces, • There is need to work towards achievement of MHDPs that are aligned with the national and provincial and municipal priorities. • The MHDP needs to present a reference to operational and implementation issues and risks. • Need for urgent sector support and proactive engagement with provinces, municipalities and service providers on the development of municipal sector plans;