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IMPORTANT INFORMATION:
Please activate your myUnisa and myLife e-mail addresses and ensure you have regular ac-
cess to the myUnisa module site as well as your group site.
This is an online module and therefore the study material for the module is available on
myUnisa. However, in order to support you in your learning process, you will also receive
some study materials in print format.

MNB-Style
Contents
(vii)
Preface (ix)
How to use the study guide (xi)
Teaching method (xiii)
Getting started (xv)
Learning unit 1 Introduction to social housing in South Africa 1
1.1 INTRODUCTION 1
1.2 THE NATURE OF HOUSING IN SOUTH AFRICA 2
1.3 DEFINING SOCIAL HOUSING 3
1.4 THE PROFILE OF HUMAN SETTLEMENTS IN SOUTH AFRICA 4
1.4.1 Decision-making 5
1.4.2 Provincial and local government roles in housing 5
1.4.3 Programmes and projects 7
1.4.4 Obstacles and constraints 8
1.5 SUMMARY 9
1.6 SELF-EVALUATION QUESTIONS 9
1.7 REFERENCE LIST 9
Learning unit 2 Legislation and policy framework 11
2.1 THE CONSTITUTION, 1996 11
2.2 THE HOUSING WHITE PAPER OF 1994 12
2.2.1 Stabilising the housing environment 12
2.2.2 Mobilising housing credit 12
2.2.3 Providing subsidy assistance 13
2.2.4 Supporting the Enhanced People’s Housing Process (EPHP) 13
2.2.5 Rationalising institutional capacities 13
2.2.6 Facilitating the speedy release and servicing of land 13
2.2.7 Coordinating government investment in development 14
2.3 HOUSING ACT 107 OF 1997 14
2.4 THE COMPREHENSIVE PLAN, 2004 14
2.4.1 Coordinated development (horizontal integration) 15
2.4.2 Accelerated service delivery (vertical integration) 15
2.4.3 From housing to sustainable human settlements 16
2.4.4 Existing and new housing instruments 16
2.4.5 Financial arrangements 16
2.4.6 Job creation and housing 16
2.4.7 Information, communication and awareness building 17
2.4.8 The existing housing instruments 17
2.4.9 Adjusting institutional arrangements within government 18
2.4.10 Building institutions and capacity 18
2.4.11 Enhancing financial arrangements 18
2.4.12 Building awareness and enhancing communication 18
2.4.13 Implementing systems for monitoring and evaluation 18

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CONTENTS

2.5 HOUSING CONSUMERS PROTECTION MEASURES ACT, 1998 18

2.6 HOUSING DEVELOPMENT AGENCY ACT 23 OF 2008 19
2.7 PUBLIC FINANCE MANAGEMENT ACT 1 OF 1999 19
2.8 SOCIAL HOUSING ACT 16 OF 2008 19
2.9 DIVISION OF REVENUE ACT (DORA) 19
2.10 HOME LOAN AND MORTGAGE DISCLOSURE ACT, 2000 19
2.11 ESTATE AGENCY AFFAIRS ACT, 1976 19
2.12 INCLUSIONARY HOUSING BILL 20
2.13 SECTIONAL TITLES SCHEMES MANAGEMENT BILL 20
2.14 COMMUNITY SCHEMES OMBUD SERVICES BILL 20
2.15 ESTATE AGENCY AFFAIRS ACT, 1976 20
2.16 RENTAL HOUSING ACT 50 OF 1999 20
2.17 HUMAN SETTLEMENT VISION FOR 2030 20
2.17.1 Intent of the legislation and policy on human settlements 21
2.18 SELF-EVALUATION QUESTIONS 21
2.19 REFERENCE LIST 21
Learning unit 3 Roleplayers and stakeholders 23
3.1 INTRODUCTION 23
3.2 ORIENTATION AND BACKGROUND 23
3.3 MAJOR ROLEPLAYERS 27
3.3.1 Department of Human Settlements 28
3.3.2 National Home Builders Registration Council (NHBRC) 34
3.3.3 National Housing Finance Corporation (NHFC) 35
3.3.4 National Urban Reconstruction and Housing Agency (NURCHA) 36
3.3.5 Rural Housing Loan Fund (RHLF) 36
3.3.6 Housing Development Agency (HDA) 37
3.3.7 Social Housing Regulatory Authority (SHRA) 39
3.3.8 Estate Agency Affairs Board (EAAB) 40
3.4 FORMS OF INVOLVEMENT 40
3.5 PUBLIC ADMINISTRATION AND HUMAN SETTLEMENTS 43
3.6 SUMMARY 46
3.7 SELF-ASSESSMENT QUESTIONS 46
3.8 REFERENCE LIST 46
Learning unit 4 Funding options for social housing 49
4.1 INTRODUCTION 49
4.2 PRINCIPLES FOR SOCIAL HOUSING FUNDING 50
4.2.1 National norms and standards 51
4.3 AN INTRODUCTION TO HUMAN SETTLEMENTS UPGRADING 52
4.3.1 Breaking New Ground Plan 52
4.3.2 Affordable Rental Housing Programme 53
4.3.3 Finance-linked Individual Subsidy Programme 53
4.4 FUNDING INSTITUTIONS 55
4.4.1 National Home Builders Registration Council 56
4.4.2 National Housing Finance Corporation 56
4.4.3 National Urban Reconstruction and Housing Agency 57
4.4.4 Social Housing Regulatory Authority 57
4.4.5 Housing Development Agency 57
4.4.6 SERVCON Housing Solutions 58
4.4.7 Thubelisha Homes 58

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 Contents

4.5 SOCIAL HOUSING FUNDING THROUGH SUBSIDIES 59

4.5.1 Farm Resident Housing Subsidy Programme 60
4.5.2 Individual Housing Subsidy Programme 61
4.5.3 Institutional Housing Subsidy Programme 62
4.5.4 Rural Subsidy: Communal Land Rights 62
4.5.5 Consolidation Housing Subsidy Programme 63
4.5.6 Other subsidies 63
4.6 SUMMARY 64
4.7 SELF-EVALUATION QUESTIONS 64
4.8 REFERENCE LIST 65
APPENDIX 1: GLOSSARY 68
APPENDIX 2: GLOSSARY IN ISIZULU 69
APPENDIX 3: GLOSSARY IN NORTHERN SOTHO 71

(v)
 ACRONYMS AND ABBREVIATIONS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CRU Community Residential Units
DoH Department of Housing
DHS National Department of Human Settlements
EAAB Estate Agency Affairs Board
FLISP Finance-linked Individual Subsidy Programme
HDA Housing Development Agency
IDP Integrated Development Plan
IMS Information Management System
ISHP Interim Social Housing Programme
MEC Member of Executive Council
NBR National Builders Regulation
NHBRC National Home Builders Registration Council
NHFC National Housing Finance Corporation
NURCHA National Urban Reconstruction and Housing Agency
RHLF Rural Housing Loan Fund
SHI Social Housing Institution
SHIP Social Housing Investment Programme
SHRA Social Housing Regulatory Authority
UK United Kingdom

LIST OF FIGURES
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure 3.1: Informal squatter’s house in Bekkersdal 25
Figure 3.2: Residents’ protests in Bekkersdal, Westonaria 26
Figure 3.3: YouTube-clip illustration 26
Figure 3.4: Organogram of Department of Housing (before 2009) 30
Figure 3.5: Organogram of Department of Human Settlements (since 2009) 31
Figure 3.6: Organogram of NHBRC 35
Figure 3.7: Organogram of the SHRA 39

(vii)
Preface
Welcome to the module PUB1602!
We shall do our best to make your study of this module in HUMAN SETTLEMENTS
MANAGEMENT 1A interesting and rewarding.
It is hoped that the contents will prepare you to understand and master the skills and
processes on the respective public management areas. You will be well on your way to success
if you start studying early in the year and resolve to do your assignments properly. Kindly
refer to the specific module code that you are registered for (PUB1602) in your
communication with the University.
At the end of this module, you should be able to do the following:
● successfully argue and apply the principles, theories and strategies regarding more effective
public human settlements in South Africa
● demonstrate a basic knowledge on the relevant facilitating public housing legislation and
frameworks regarding to, inter alia, location, diversity and complexity of phases, activities
and products involved, community involvement and sustainability
● collect, analyse and critically evaluate information pertaining to public human settlements
in a developing South Africa pertaining to, for example, responsibilities of a house owner
and funding options available
After extensive consideration and discussion, we believe that we have identified the most
important aspects that students would expect to find in an introductory human settlements
management course. Please refer to the table of contents for an overview of the contents of
this study guide.
The purpose of this module is firstly to do research on and be equipped with basic
knowledge on the principles, theories and strategies for strategic, visionary and
transformational public administration and management manifesting in all public policy
executing institutions of the South African government (e. g. the national Department of
Human Settlements, provincial departments and municipalities) in their respective
geographical areas of responsibility. In this quest, you will learn how to apply public
administration and managerial competencies, functions and technology on all three spheres of
government out there. You will also be exposed to the theory of change management and be
equipped to act as an effective change agent to continuously try to transform the day-to-day
service delivery by a public sector institution in its geographical area of jurisdiction.
Secondly, you will be encouraged to apply appropriate strategies for strategic (so-called “big-
picture thinking”), visionary and transformational leadership in public sector institutions or to
use practical examples to supplement or explain the basic subject theory.
Thirdly, this module will provide you with guidelines to better understand the public sector.
The management principles are the same for the public and the private sector; it is only the
environment that differs.
A further rationale of this module is that by reaching the research outcomes, the specific
learning aspects (i.e. acquisition of knowledge, understanding, application, analysis, synthesis
and evaluation) can be emphasised.

(ix)
PREFACE

This module consists of the following study units:

STUDY UNIT 1: INTRODUCTION TO SOCIAL HOUSING IN SOUTH

AFRICA
STUDY UNIT 2: LEGISLATION AND POLICY FRAMEWORK
STUDY UNIT 3: ROLE PLAYERS AND STAKEHOLDERS
STUDY UNIT 4: FUNDING OPTIONS FOR PUBLIC HOUSING

We trust that this study guide will make a significant contribution to your career, and we wish
you every success in your studies!
Lecturer
Public Administration and Management
February 2015

(x)
How to use the study guide
The study guide is merely a guideline to help you navigate through the module. As an
“academic detective par excellence”, you will have to identify more information resources and
read wider than the confinements of the study guide.

HOW TO USE THE STUDY GUIDE

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
● Read the study guide (it will take up less time than you think) to get an overview of what
the module entails and of its contents.
● Again read and research the content of the study guide at the hand of the research and
learning guidance you received in the accompanying tutorial letters.
● Continually keep the research outcomes in mind as they apply to the module and each re-
search unit.
● When you have completed a research unit, refer back to the research outcomes and make
sure you achieved them.
● Ask the responsible lecturer if you do not understand a specific section or concept.
● This study guide has been designed to motivate students to read and to help them learn
and understand. To make this a useful learning aid, we have included the following educa-
tional features in the study guide:

OUTCOMES
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
To direct your studies, each theme and all study units begin with a list of outcomes to show
what you as students should be able to do after studying the study unit. These outcomes are
intended to focus your attention on the main topics of the particular theme or study unit.

QUESTIONS FOR SELF-EVALUATION

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The self-evaluation section at the end of each study unit gives you an idea of the knowledge
that you should have gained in the particular study unit. When you have worked through the
study unit and understand its contents, you should be able to answer the self-evaluation
questions.

DEFINITIONS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Various definitions have been included in the study units.

LEARNING ACTIVITIES
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In working through the study units, you will come across activities to be completed. These
activities are intended to facilitate the learning process and preparation for assignments and
the examination. They focus on the learning objectives and will also help you determine

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HOW TO USE THE STUDY GUIDE

whether you understand the content of the particular study unit and will be able to apply that
knowledge in the practice of human settlements management.

RECOMMENDED READING
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
At the end of each study unit there is a list of recommended reading. You can use some of
these sources if you want to read more about a specific topic. You can also use them to do
your assignments.

SUMMARY OF STUDY UNITS

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In the same way that outcomes show the way ahead, the summaries show you where you are
at present. Each study unit concludes with a summary. Note that the summaries contain only
the essence of that which has been discussed in detail in the text. When you prepare for the
examination, you must focus on this detail in the text, and not on the summaries.

HOW TO RESEARCH THE CONTENTS

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Module registered students will have to comply with a number of prerequisites to complete
the module successfully. When researching the module content you:
● should be acquainted with the contents of the module in order to get an overview of the
module
● should be acquainted with all the outcomes of the module, research unit outcomes and re-
search section outcomes
● should closely follow the instructions that apply to each research unit, (i.e. researching the
research material, the completion of group exercises, the submission of the final assign-
ments, making summaries, drawing mind maps and diagrams, and so on)
● might have to carry out additional searches for information via, for example, the internet,
library databases and data collection interviews, seeing that this is a basic level module

(xii)
Teaching method
The teaching method we follow is one of flexi teaching. This approach assumes that the mere
presentation of knowledge by the lecturer via myUnisa is not enough – the emphasis should
rather fall on the gaining of knowledge through reading, research and intensive memorisation
by you. This implies personal initiative and accompanying support by the facilitator in the
form of do-it-yourself units.

THE LECTURER’S RESPONSIBILITIES

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
With this teaching-learning approach, the responsibilities of the responsible lecturer are to:
● clarify the meaning and aims of the module and research units via this study guide, other
recommended information sources and discussions taking place throughout the semester
● give the necessary background and context that will enable a registered student (you) to
understand certain phenomena
● stimulate your (critical) thinking so that you can evaluate and alter perspectives when
necessary
● provide a conducive atmosphere and guidance for you to solve whatever problems you
might experience with the module content
● guide your academic development and scientific capabilities and skills
● evaluate your work and assist you to correct any misconceptions

THE STUDENT’S RESPONSIBILITIES

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
You are responsible for mastering the learning outcomes specified for each research unit and
the module as a whole. The lecturer is only a guide, as is the study guide! To master the
module material, you need to read wider, do research and intensively study as effectively as
possible.

EVALUATION AND ASSESSMENT

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
During the semester, assessment of your participation in this research and study venture will
be done through the fact that you have to compile and submit assignment answers.
These assignment answers will have to be compiled and submitted in hard copy format or
electronically onto the myUnisa platform before a specific due date. These essay-type
compiled assignment answers will illustrate your ability to apply the principles covered during
the module in a workplace situation.
The research themes of the assignments as well as the due dates and criteria for assessment
are supplied in Tutorial Letter 101 for this module.
Assignment answers are individual tasks and not group activities.
Merely coping of text from other students or from other information sources (for instance
the study guide, text material or directly from the internet) is not allowed – only brief

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TEACHING METHOD

quotations are allowed and then only if acknowledged in the text with correct source
references.
You should reformulate existing text and use your own words own words to explain what
you have read. It is not acceptable to retype existing text and just acknowledge the source in a
footnote – you should be able to relate the idea or concept, without repeating the original
author to the letter.
The aim of the assignment answers, which you must compile, is not the mere reproduction of
existing material, but to ascertain whether you have the ability to integrate existing texts, add
your own interpretation and/or critique of the texts and offer a creative solution to existing
problems.
Be warned: The University now has the Turn-it-in facility to screen all submissions for
possible transgressions. Students who submit copied text guilty of plagiarism will obtain a
mark of zero for their assignment answer and disciplinary steps may be taken by the
responsible faculty and/or the University.
It is also unacceptable to do somebody else’s work, to lend your work to them or to make
your work available to them to copy!

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Getting started
Before we set out on our research and learning adventure, please do the following activity:

ACTIVITY 1: WHY AM I PURSUING THIS STUDY?

As a managing, supervisory and leading public official, you are expected to improve your
basic knowledge and skills with further studies. Often the reason is “because I was told to
do it”, although there can be more positive reasons. The purpose of this activity is to help
you to think why you are really part of this research and study “adventure” and what you
hope to get out of the module.
● Ask yourself “Why am I here?” Write down the answer.
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
● Ask yourself another question:
“How will I know when I have achieved the reason(s) for further studies at Unisa”? Your
answer should be as clear as possible so that it will be very apparent to you when you
have achieved your objectives.
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
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(xv)
Learning unit 1
Introduction to social housing in South Africa Learningunit1

LEARNING OUTCOMES

After you have completed this unit, you should be able to:
● exhibit an ability to identify and explain social housing concepts, principles and pro-
cesses, with the emphasis on the social purpose of providing housing – for example,
supply and demand, affordability, community development, sustainability and location
● demonstrate scope and knowledge on the guiding principles relating to housing ap-
proach production, in terms of social housing
● demonstrate and communicate complex information relative to the implementation of
housing policy
● demonstrate the main areas of social housing and human settlement upgrading to in-
clude an understanding of how to analyse and evaluate different housing tenure
options and mechanisms for social housing

1.1 INTRODUCTION
As compared to other countries that are deeply rooted social democracies, South Africa can
be considered to be a newcomer in implementing a social housing policy. Comparatively, in
the United Kingdom that has a long history of providing social housing, the concept of
affordable housing prevails, as a social undertaking of government to provide decent housing
for all its citizenry. In the case of the UK, social democracies that practise a form of
sustainable socialism cannot deny the reality that housing is not free and that the provision
and stock of housing is subject to supply and demand (Reeves 2005). Comparatively, in South
Africa the government has enshrined the right to housing in the Constitution of the Republic
of South Africa (Act 108 of 1996). Recognising the people’s rights to basic needs, the right to
housing was affirmed by section 26 of the Constitution where it is stated that everyone has
the right to have “access” to adequate housing.
In 1994, while addressing the imbalances and inequities of previous government policies, the
newly elected democratic South African government established the Reconstruction and
Development Programme (RDP). This programme set a new policy agenda for the country,
based on the principles of meeting people’s basic needs on a sustainable basis. The
government also introduced the growth, employment and redistribution (GEAR), macro-
economic strategy, with the aim of strengthening economic growth and increasing and
redistributing employment opportunities in South Africa. Arguably, underlying contradictions
exist between these strategies, as both have to some degree influenced policy development in
South Africa.
In 1996, the current Constitution of South Africa was adopted. The Constitution also engages
with the principles of meeting people’s basic needs. It actually goes further to accord
recognition to the right to basic needs and includes the right to housing. South Africa is just
one of 30 or more countries that have included the right to housing in its Constitution.
Section 26 of the Constitution of the Republic of South Africa, 1996, states that everyone has
the right to have "access to adequate housing". It, therefore, is the government’s duty to

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LEARNING UNIT 1: INTRODUCTION TO SOCIAL HOUSING IN SOUTH AFRICA

implement policies and measures with the available resources to achieve the aims of legislative
rights relative to the provision of housing for those in need.

ACTIVITY 1: SUPPLY AND DEMAND, SOCIAL HOUSING

Refer to Reeves (2005:14–40).

● Contextualising the discussion in terms of South Africa, what does supply and demand
have to do with housing and what is meant by affordability and housing demand and
need?
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................

1.2 THE NATURE OF HOUSING IN SOUTH AFRICA

As a starting point, the development of South Africa’s housing policy commenced with the
establishment of the National Housing Forum or NHF (Hopkins n.d.). Essentially, the NHF
was a multi-party, non-governmental forum comprised stakeholders from business, political
organisations, development and civic organisations. The NHF had the aim of coming to a
consensus on a non-racial housing policy. Discussion centred around two hotly contested
debates. Firstly, there was a debate as to whether housing should be provided by government
or solely by the private housing market. Secondly, there was debate over whether housing
should be provided in the form of fully constructed four-room dwellings or in the form of
partially and incrementally constructed houses (Tissington 2011:58). There are several
challenges that arise from any debate on those two points. Not surprisingly, there is the
question of the role of national government, as mandated by the Constitution. Moreover,
there is the terminology, concepts and principles that shape the debates. Arguably, these serve
to contribute to the dialogue and discourse on the characteristics of the housing market
(Hopkins n.d.:1)
That there is a severe housing shortage goes without question. It has been estimated that
more than 2 million families are in need of adequate housing. Rather than decreasing, the
number of families requiring adequate housing has been increasing by 12% from year to year.
The increase in the need for adequate housing is exacerbated further by the high level of
unemployment in South Africa and the relatively low wage levels that all but make decent
housing a luxury. This, some would argue, substantiates government’s involvement and
intervention. Still, South Africa’s housing policy can be described as fragmented and overly
burdened by pragmatic administrative systems. The role to be played by government in terms
of human settlements upgrading and stakeholder accountability is still evolving. In this case,
the notion of stakeholders extends beyond those families in need of decent affordable
housing. Stakeholders include the builders, banks, environmentalists, architects and urban
planners. Truly, the provision of housing requires cooperation and input from a multiplicity of
disciplines. Much has been done and accomplished in capacitating practitioners in
government and in establishing a cadre of housing professionals to specialise in human
settlement upgrading and urban planning. The Department of Human Settlements and many
universities in South Africa support and have initiated programmes and qualifications in social
housing and human settlements upgrading.

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 LEARNING UNIT 1: Introduction to social housing in South Africa

If anything, the 1980s were characterised by rent boycotts, non-payment of bonds and service
delivery protests to further the demise of apartheid. With that goal being achieved,
communities and civic movements still view these tactics as mechanisms to deal with poor
service delivery and inadequate housing after more than 20 years of democracy. Constructive
engagement between stakeholders requiring housing and services, the government and the
multiplicity of stakeholders mentioned above is most needed in the so-called “new South
Africa”. More so, the banks, lenders and financiers must give consideration to low-income
families and financing low-cost housing development to reduce the number of families
needing adequate and decent housing. Redlining and discrimination must be prohibited. New
financial instruments must be designed and targeted at low-income consumers. Houses
constructed must be durable and of high quality. Finally, families and households must begin
to save a portion of their income, thereby contributing to the cycle of banking, savings and
economic growth.
It could be easily concluded that South Africa’s housing problem, efforts to upgrade human
settlements and its policy on social housing are results of insufficient land. The provision of
housing in South Africa is, at the least, subject to the identification of land to be used for
distribution and human settlement. More importantly, it is the processes of development and
allocation that have impeded the expeditious provision of houses. The key questions
remaining to be answered are: Do families require houses or do they require land? The answer
is yes to both, but the response and mechanisms to implement solutions are complex, for
example, needs testing and who should get a house first. Also, how is land expropriated to be
given to families to, for example, farm and subsist? Consequently, as a framework for
discussing the characteristics of the housing market, the following should be considered:
● infrastructure, service and housing structure
● the housing needs from province to province
● the special needs of women
● stakeholders as consumers of the stock of housing
● public participation in building and urban planning
● housing as a contributor to the economy
● the stock of existing housing
● affordability
● the absence of a unified housing and administrative system
● the need for qualified housing and human settlements practitioners
● a culture and willingness to pay for housing and services
● mortgage bond facilities to meet the needs of stakeholders
● appropriation and expropriation of land either for urban planning or commercial farming

1.3 DEFINING SOCIAL HOUSING

Before going further, it is now necessary to define and contextualise the concept of social
housing. Reeves (2005:3) stops short in defining social housing as housing provided by local
authorities. The definition is referred to as “stopping short” because it fails to incorporate any
specific type of housing structure or accommodation, thus failing to qualify the specific
nature of the housing provided. In other words, the definition fails to mention or exemplify a

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LEARNING UNIT 1: INTRODUCTION TO SOCIAL HOUSING IN SOUTH AFRICA

specific type of housing facility. For example, in the UK, there would be reference to the
council flat or estate. In the United States, there could be reference to the housing project.
In South Africa, there could be reference, included in a
definition, to RDP housing. Nevertheless, the definition goes
further to expand the definition by including housing provided
by housing associations, registered social landlords, regardless
of the ownership or business structure of such entities.
Importantly, social housing should not be market oriented,
subject to auction or purchase in the marketplace. Social
housing is allocated based on stakeholders’ immediate needs.
Of course, problems do arise when social housing that is
meant not to be marketed, whether overtly or covertly, is
traded, rented, leased or resold contrary to its intended
purpose of providing housing for marginalised families.
Contextualising – in terms of South Africa – the provision of housing has become perverse,
as some but not all, recipients of RDP housing, for example, resort to renting government
housing allocated, thereby generating income and revenue. This is an unintended
consequence of the provision of social housing in South Africa. Conclusively, this and the
quality of constructed social housing are factors to be addressed in order to address the more
than 2 million families that are in need of adequate housing.

ACTIVITY 2: HUMAN SETTLEMENTS UPGRADING

In South Africa, the approach to contextualising the need for housing is to think in terms of
human settlements upgrading.
● What then is the relationship between social housing and human settlements
upgrading?

● Is any discussion a matter of semantics?

● Are the two concepts (social housing and human settlements) mutually exclusive?

● Prepare a three-page essay, expressing your viewpoint on the questions asked.

.................................................................................................................................................

.................................................................................................................................................

.................................................................................................................................................

.................................................................................................................................................

1.4 THE PROFILE OF HUMAN SETTLEMENTS IN SOUTH AFRICA

Chapter 7 of Agenda 21 (1992) focused on three priorities for the creation of sustainable
human settlements (Hirano 2004). Those priority areas were:
● the provision of adequate shelter for all
● capacity building for human settlements management
● promotion of sustainable land use management
As early as 1992, a conscious decision had been made to align South African policy on human
settlements with international efforts to address worldwide housing shortcomings. The newly
elected democratic government of South Africa knew there was a need to address the

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 LEARNING UNIT 1: Introduction to social housing in South Africa

segregated nature of human settlements. Sustainable human settlements guided by the

principles of Agenda 21 would be one of the many deliverables on the ANC’s agenda. A
review of the country’s profile then focused on decision making, the roles of local and
provincial governments, programmes and projects, and obstacles and constraints in achieving
the three Agenda 21 priorities.

1.4.1 Decision-making
Where at one time the National Department of Housing was responsible for housing policy
and legislative framework for the country, the Department of Human Settlements is now
responsible for financing, communicating and monitoring the implementation of housing and
sanitation programmes in South Africa. The Department has the responsibility, more
specifically, for urban development of the constitutional mandate that states that everyone has
the right to access to adequate housing. Critical to implementing a national housing policy is
the National Housing Code (2009) that provides guidelines, norms and standards in the
administration of government’s various housing assistance programmes. Various housing
subsidy instruments and programmes have been put in place to assist low-income households
to access adequate housing. For example, the Integrated Residential Development Programme
(IRDP) provides for the acquisition of land, administration for the use of land for commercial
purposes, for recreational purposes, schools, clinics and the allocation of residential stands for
low-income, middle-income and high-income groups.
The ANC adopted the Reconstruction and Development Programme (RDP) in 1994 as an
integrated socio-economic policy framework for building and distributing houses (Knight
2001). The government has a goal to build 300 000 houses annually and the aim of building a
minimum of one million low-cost houses over five years, as from 1994. Essentially, South
Africa’s current housing policy is rooted in the Housing White Paper (1994).

ACTIVITY 3: HOUSING ACTIVITY BY GOVERNMENT

Investigate the housing activity of the government by asking and answering the following
questions:
● How many housing units have been delivered by the government?

● Is the government achieving its targets?

● How many housing unit have been delivered thus far?

Begin your research by going to:
● http://www.property24.com/articles/affordable-housing-in-south-africa/16400
.................................................................................................................................................

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1.4.2 Provincial and local government roles in housing

In the past, provincial and local governments have been active in housing forums established
by national government. Involvement, however, now extends to an active role in housing
planning by way of Integrated Development Planning (IDP). Integrated development plans

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LEARNING UNIT 1: INTRODUCTION TO SOCIAL HOUSING IN SOUTH AFRICA

are meant to inform local governments’ housing plans to be effected at the grass roots level.
More importantly, the involvement of provincial and local governments requires integration
and coordination between the many stakeholders affected by the need to move away from
segregated settlements (case study). In the case of provincial government, a department of
housing at the provincial level will be one of as many as 12 departments involved in
implementing a Provincial Growth and Development Strategy (PGDS) that spells out the
overall framework and plan for developing the economy and improving services. Inherently,
provincial governments’ role extends to operationalising the provision of basic rights
enshrined in the Constitution – that is, the right to access to adequate housing. For example,
the Provincial Growth and Development Plan (PGDP) for the Eastern Cape provides the
framework that prioritises six pillars: systemic poverty eradication, food security, job creation,
human resource development, infrastructure development and public sector/institutional
transformation (DHLGTA 2007). Furthermore, to operationalise those pillars, the Portfolio
Committee and the legislature, the Executive Committee of the Eastern Cape, some of the
stakeholders referred to earlier, agreed to rationalise one existing department into two –
namely, (1) a housing department and (2) a department of local government and traditional
affairs. The aim was to dedicate focus on key delivery demands and improved performance, in
so far as eradicating informal settlements and establishing viable community areas.
Importantly, it was necessary to do so while trying to ensure that integrated development
plans re-conceptualise human settlements and create social housing. As an action plan, this
exemplifies that each province will employ an approach tailored to the needs of its local
governments (municipalities) and communities.

CASE STUDY
The launch of this prestigious project today demonstrates that our government continues to
fulfil this Constitutional mandate of providing housing to the citizens of our country. And
this democratic government does not just build houses; we also look at achieving other
goals, such as building united, non-racial settlements, to reverse the apartheid legacy of divi-
sions. The building of integrated settlements, where people from different racial groups can
live together, marks a significant shift in South Africa. We want to effectively move away
from the segregated settlements, which were created by apartheid to house people on the
basis of their race and sometimes even on the basis of clan as it happened in what is now
Gauteng. With projects such as Cornubia, the ANC government and all its related agencies
and partners seek to show our people that we have indeed left the days of racial segregation
behind us. If apartheid policy was to divide, then ours is to unite the people across racial
and class lines through sustainable human settlements.
The entire Cornubia development has an estimated construction value of 25 billion rand
over a period of approximately 25 years. The project will include the provision of 28 000
homes catering for a wide range of income levels. A total of 15 000 of these will be subsi-
dised or low income houses. The settlement will also include substantial provisions for
schools, clinics and amenities such as state of the art public transport infrastructure. I have
been informed that two bus rapid transport (BRT) routes linking Cornubia, Umhlanga and
the nearby township of Phoenix are planned. The BRT routes will also link the area to the
Dube Trade Port and the King Shaka International Airport about 7 km north. The private
sector is also catered for as there will be over 100 hectares of land that is set aside for busi-
ness especially office spaces (The Presidency 2014).

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 LEARNING UNIT 1: Introduction to social housing in South Africa

1.4.3 Programmes and projects

The housing subsidy initiated by the Department of Housing (now administered by the
Department of Human Settlements) is prescribed in part 3 of the National Housing Code (2009).
Providing for an individual subsidy, the aim is to stimulate the secondary residential property
market. That is, the aim is to financially support the demand and subsequent repurchases
within the existing stock of houses. The programme is designed to address the so-called
“bottom-end” of the market, thereby providing state assistance to qualifying households to
acquire an existing house or vacant residential stand linked to a housing construction project.
Financial support for an approved mortgage loan is made possible. In some instances, certain
properties are available in the normal secondary housing market or have been developed as
part of projects not necessarily financed through one of the national housing programmes. As
a funding programme, the features and criteria are as follows:
● The individual subsidy is only available to beneficiaries wishing to acquire residential prop-
erties as registered individual owners.
● It is available to beneficiaries who would like to use only the subsidy to acquire an existing
house and also to those where the subsidy is linked to mortgage finance from a financial
institution for the acquisition of an existing house or the acquisition of a serviced site
linked to a house-building contract.
● Non-credit-linked subsidies will be administered on the basis of issuing of guarantees by
the MEC and approved funding will only be released upon the achievement of specific
milestones.
● Credit-linked subsidies will be paid to the financial institution once the subsidy application
has been approved and such funds must be paid into a special interest bearing account by
the financial institution.
● Provincial departments must introduce mechanisms to ensure that subsidies approved for
persons who have acquired unsubsidised sites, apply such subsidies for the construction of
new, the completion of incomplete and/or improvement of existing houses.
● Individual subsidies may also be accessed through the undertaking of small to medium-
sized house construction projects for qualifying beneficiary households.
● The awarding of individual subsidies will be subject to the availability of funds.
The housing code is fairly pragmatic in its approach towards providing financial support to
potential qualified home buyers. The code does go on to discuss interventions for integrated
residential development, rural development and management of the rental stock of housing.
Still, human settlements upgrading and interventions in varying contextual environments
require coordination, integration and cooperation between the three spheres of government.
Reference has already been made to the provincial sphere. At the local level, cooperation is
exemplified in relationships between the Housing Development Agency (HDA) and the
Department of Human Settlements on medium-term strategies and performance plans to
improve service delivery within the human settlements domain (PMG 2001).

ACTIVITY 4: MUNICIPAL-BASED ORGANISATIONS

Refer to PMG (2001).

● How can municipalities benefit from a municipal-based organisation such as the HAD, in
urban planning, the allocation of secondary rental housing and urban renewal?

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LEARNING UNIT 1: INTRODUCTION TO SOCIAL HOUSING IN SOUTH AFRICA

.................................................................................................................................................

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1.4.4 Obstacles and constraints

By this time, it would not be surprising to begin to question whether, in addressing the
fulfilment of the basic right of access to adequate housing, the aim is to upgrade, improve and
even transform human settlements in South Africa, or whether the aim is to provide (social)
housing to marginalised South Africans? The safest response would be that both are
simultaneous aims of the government, but such a response does not suffice without
consideration for the obstacles and constraints towards achieving those aims.
While more than a million houses have been provided by government, more than three
million houses and, in fact, many more houses remain to be provided to marginalised South
Africans. However, the matter goes beyond just providing houses. With many South Africans
living in informal settlements, underdeveloped townships and migrating from rural areas to
urban areas, it calls for an integrated and coordinated policy to address the multifaceted
problem of access to adequate housing (Knight 2001).
In the United Nations Human Settlement Country Profile (Hirano 2004:5), there is an
indication that there is poor alignment of housing and administration of housing projects.
The profile goes further to note that housing recipients do not view houses as being a high-
cost asset of relatively significant value. This may be a result of the low quality and poor
construction by builders. Moreover, participation in financing low cost housing is not a
priority of banks and commercial lenders. Additionally, municipalities underspend budget
allocation for housing due to lack of capacity. Finally, the prevalence of informal settlements,
most likely due to migration from the rural areas to the cities, places a strain on the
infrastructure requirements to sustain static and transient families.
For a more recent snapshot of the obstacles and constraints facing the provision of housing,
the Department of Human Settlements’ (DHS 2013) Annual Report reconfirms several of
those very same challenges from as far back as 2004. Some of the challenges noted in the
DHS Annual Report include:
● diminishing land resources in and around South African urban settings
● limited land in close proximity to city centres
● inability to respond to the need to upgrade infrastructure
● lack of timely enrolment of housing projects
● lengthy procurement practice and administration at the municipal level
● buildings and construction projects non-compliant with OHS codes
● underspending within the Department of Human Settlements’ Special Investigations Unit
● political interference and politicisation of housing and land issues

ACTIVITY 5: HUMAN SETTLEMENTS STRATEGY AND PLANNING

Refer to DHS (2013:41) and write an overview of the Human Settlements’ Strategy and
Planning, while focusing on sub-programmes and strategic objectives.

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 LEARNING UNIT 1: Introduction to social housing in South Africa

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1.5 SUMMARY
Conclusively, local government is expected to take the greatest responsibility for the
management of human settlements within their jurisdictions. This is ever so true, as it relates
to service delivery and managing infrastructure requirements. In so far as the role of national
government is concerned, funding programmes and the trickling down of subsidies from the
highest sphere of government to the lowest sphere of government more or less defines the
role of, say, the Department of Human Settlements. It is the pre-eminent policy-making entity
to which lower government entities must adhere to. The Department is also the custodian of
budget allocations targeted at assuring access to adequate housing.
Essentially, local government municipalities will operationalise the provision of new and
existing housing stock by way of entities such as the Housing Development Agency, the
Johannesburg Development Agency (JDA) and all important capacity building through the
National Association of Social Housing Organisations (NASHO).

1.6 SELF-EVALUATION QUESTIONS

Test your knowledge of and insight into this study unit by answering the following questions:
1. Briefly describe each of the following concepts in relation to human settlements
management:
● Supply and demand
● Affordability
● Community development
● Sustainability
● Location

2. In your own words, describe the guiding principles relating to housing approach
production.
3. Describe the obstacles and constraints that the Department of Human Settlements faces
during the provision of housing.

1.7 REFERENCE LIST

Agenda 21. 1992. Earth Summit 21. Rio de Janeiro: United Nations. Available at: http://un-docu-
ments.net/a21–07.htm (accessed on 24 July 2014).
DHLGTA. 2007. Department of Housing and Local Government and Traditional Affairs Available at:
http://www.treasury.gov.za/documents/provincial %20budget/2007/ (accessed on 25 July
2014).
DHS. 2013. Department of Human Settlements. Annual Report. Available at: http://www.dhs.gov.
za/sites/default/files/annual_reports/DHS_Annual Report_2012-13_FULL_DOCU-
MENT.pdf (accessed on 27 July 2014).
Hirano, S. 2004. Human Settlement Country Profile: South Africa. Available at: http://www.un.org/
esa/agenda21/natlinfo/countr/safrica/human_settlements.pdf (accessed on 24 July 2014).
Hopkins, J (n.d.). Social Housing in South Africa. Durbanville: The Southern African Housing Founda-
tion. Available at: http://www.psdas.gov.hk/content/ doc/2006-1-04/Social%20Housing%

9
LEARNING UNIT 1: INTRODUCTION TO SOCIAL HOUSING IN SOUTH AFRICA

20in%20 South%20Africa%20-%20John%20Hopkins%20-%202006-1-04.pdf.(accessed on
23 July 2014).
Knight, R. 2001. Housing in South Africa. Available at: http://richardknight.homestead.com/.
PMG. 2001. Parliamentary Monitoring Group. Department of Human Settlements & Housing Develop-
ment Agency (HDA) on strategic and performance plans: briefing. Available at: http://www.pmg.org.
za/report/20110309-department- and-housing-development-agency-hda-strategic-plan (ac-
cessed on 26 July 2014).
Reeves, P. 2005. An introduction to social housing. Oxford: Elsevier Butterworth- Heinemann. Available
at: Reeves, P. 2005. An Introduction to Social Housing. Oxford: Elsevier Butterworth-Heineman.
(accessed on 23 July 2014).
South Africa (Republic). 1996. Constitution of the Republic of South Africa. Pretoria: Government
Printer. Available at: http://www.info.gov. za/documents/constitution/1996/96cons2.htm
(accessed on 15 December 2013).
South Africa (Republic). 2009. The National Housing Code. Pretoria: Government Printer. Avail-
able at: http://www.dhs.gov.za/?q=content/national-housing- code-2009
South Africa (Republic). 1994. Department of Housing. White Paper: A New Housing Policy and
Strategy for South Africa. Pretoria: Government Printer. Available at: http://www.dhs.gov.za/
sites/default/files/legislation/Policies_Housing White_Paper.pdf
The Presidency. 2014. Address by President Jacob Zuma at the official opening of the Cornubia Integrated
Housing Project, Ottawa, eThekwini, KwaZulu-Natal. Available at: http://www.gov.za/speeches/
view.php?sid=44882 (accessed on 25 July 2014).
Tissington, K. 2011. A resource guide to housing in South Africa 1994–2010: legislation, policy, pro-
grammes and practice. Johannesburg: Socio-Economic Rights Institute of South Africa.
Available at: http://www. urbanlandmark. org. za/downloads/SERI_Housing_Resource_
Guide_Feb11.pdf (accessed on 23 July 2014).
Transform SA. 2014. SA government passes the 3 million housing mark. Available at: http://www.
transformsa.co.za/tag/gap-housing (accessed on 18 August 2014).
WordPress.Com. 2009. For more than profit: is social enterprise the answer in South Africa? Available
at: http://formorethanprofit.wordpress.com/ (accessed on 18 August 2014).

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Learning unit 2
Legislation and policy framework Learningunit2

LEARNING OUTCOMES

After you have completed this unit, you should be able to:
● interpret and apply the legislative frameworks and other prerequisites related to hous-
ing, including the Constitution, housing codes and various housing policies
● interpret the rules that apply, resulting from the legislative frameworks on housing
● solve well-defined but unfamiliar problems, using the correct procedures necessary to
fulfil the intent of social housing legislative frameworks
● select and apply central procedures for social housing institutions, funding structures
and infrastructure in place to support social housing in South Africa
● present information by using basic information technology to clarify the nature of imple-
mentation mechanisms and supporting resources for social housing in the country

In this section, we will briefly look at the different pieces of legislation that influence the
profile of human settlements in South Africa.

2.1 THE CONSTITUTION, 1996

The government’s human settlement development mandate
emanates from the Constitution, 1996. According to chapter 2,
section 26
(1) everyone has the right to have access to adequate
housing.
(2) The state must take reasonable legislative and other meas-
ures, within its available resources, to achieve the
progressive realisation of this right.
(3) No one may be evicted from their home, or have their home demolished, without an or-
der of court made after considering all the relevant circumstances. No legislation may
permit arbitrary evictions.

Schedule 4A lists housing as one of the concurrent national and provincial legislative
competences
According to chapter 7, section 156 (4), “[t] he national and provincial governments must
assign to a municipality, by agreement and subject to any conditions, the administration of a
matter listed in Part A of Schedule 4 or part A of Schedule 5 which necessarily relates to local
government, if (a) that matter would most effectively be administered locally; and (b) the
municipality has the capacity to administer it”.
In view of this constitutional mandate, the government has a duty to progressively ensure that
all South Africans have access to secure tenure, housing, basic services, materials, facilities and
legislative, financial, educational and social measures to fulfil its housing obligations.

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LEARNING UNIT 2: LEGISLATION AND POLICY FRAMEWORK

2.2 THE HOUSING WHITE PAPER OF 1994

The country’s housing policy is buttressed in the Housing White Paper of 1994. The
fundamental policy and development principles introduced by the Housing White Paper
remain relevant and guide all developments in respect of housing policy and implementation.
The vision for human settlements as contained in the White Paper entails the establishment
of viable, socially and economically integrated communities, situated in areas allowing
convenient access to economic opportunities, as well as to health, educational and social
amenities in which all South Africans will, on a progressive basis, have access to:
● permanent residential structures with secure tenure ensur-
ing internal and external privacy and providing adequate
protection against the elements
● potable water, adequate sanitary facilities and domestic en-
ergy supply
The vision is underpinned by principles of sustainability, viability, integration, equality,
reconstruction, holistic development and good governance. South Africa’s housing policy and
strategy must contribute to a non-racial, non-sexist, democratic integrated society. The goal is
to improve the quality of living of all South Africans with an emphasis on the poor and those
who cannot independently satisfy their basic housing needs.
The White Paper on Housing, 1994, contains the government’s broad housing policy and
strategy on the basis of seven key strategies, which are as follows:
● stabilising the housing environment
● mobilising housing credit
● providing subsidy assistance
● supporting the Enhanced People’s Housing Process (EPHP)
● rationalising institutional capacities
● facilitating the speedy release and servicing of land
● coordinating government investment in development

2.2.1 Stabilising the housing environment

In order to ensure maximum benefit of state housing expenditure and mobilising private
sector investments, this strategy aims to create a stable and effective public environment, and
to lower the perceived risk in the lower-income housing market by ensuring that the rule of
law is upheld, thus creating a marketplace that is conducive to the provision of credit to the
low-income housing sector.

2.2.2 Mobilising housing credit

The unlocking of private sector housing credit is regarded as a fundamental requirement for
ongoing improvement of the housing circumstances of households who qualify for mortgage
finance. Linked to the unlocking of private sector credit is the requirement for savings by
households. This strategy seeks to promote saving by the lower income housing sector so that
they may contribute towards the improvement of their own housing and, most importantly,
that they may establish creditworthiness in order to gain access to housing finance in the
future.

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 LEARNING UNIT 2: Legislation and policy framework

2.2.3 Providing subsidy assistance

The Housing Subsidy Scheme assists those who cannot independently satisfy their own basic
housing needs. Capital subsidy assistance is granted to low-income households to enable them
to access a minimum standard of accommodation. The strategy to provide subsidy assistance
has resulted in a variety of national housing programmes. The housing subsidy funding is
complimented by various other grants available from government departments other than the
National Department of Human Settlements.

2.2.4 Supporting the Enhanced People’s Housing Process (EPHP)

The EPHP aims to facilitate the establishment or directly establishing a range of institutional,
technical and logistical housing support mechanisms to enable communities to, on a
continuous basis, improve their housing circumstances. It involves the establishment of
institutions and organisations that support communities who are unable to make any
monetary contribution towards their housing needs through savings, or by accessing housing
finance. Communities are supported to build their own housing. Once they have built their
houses, the increased value of their property will enable them to have an asset to leverage
finance in the marketplace.

2.2.5 Rationalising institutional capacities

This strategy envisages the need to create a single transparent housing process and
institutional system. The culmination of the strategy is the Housing Act 107 of 1997, which
has been in effect since 1 April 1998. The Act establishes a new institutional framework and
clearly defines housing roles and responsibilities in the public sector. Capacity building is a key
element for the creation of an enabling environment at national, provincial and municipal
spheres within which the regulators and implementers could fulfil their respective roles. This
entails the introduction of appropriate legal and policy frameworks, the establishment of an
effective and efficient work force, and the installation of appropriate technology, equipment
and systems for monitoring, evaluation and reporting purposes.
The National Capacity Building Programme aims to ensure that provincial departments and
municipalities have the capacity to carry out their housing functions.

2.2.6 Facilitating the speedy release and servicing of land

To meet the ever growing demand for housing and to achieve government’s goals relating to
housing development, land which is appropriate for housing must be speedily released and
serviced. Government has therefore introduced measures to simplify and speed up the
processes of land identification, release and servicing.
The Development Facilitation Act 67 of 1995 is the most comprehensive Act promulgated to
deal with the issue of land release and servicing. The National Department of Human
Settlements’ overall approach to land delivery policy is one of promoting adherence to the
principles for land development as set out in section 3 of the Development Facilitation Act.
The Housing Development Agency (HDA) will facilitate the speedy release of well-located
land for human settlement in pursuance of government’s goal of social, economic and spatial
integration.

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LEARNING UNIT 2: LEGISLATION AND POLICY FRAMEWORK

2.2.7 Coordinating government investment in development

Human settlement creation requires coordinated and integrated action by a range of players in
the public and private sector.
The coordination of state investment in development seeks to maximise the impact of state
investment and careful planning, so that investment in one aspect of development
supplements another. Furthermore, integrated human settlement creation requires public/
private partnerships between developer and housing finance institutions and government.
The implementation of the vision on human settlements is governed by the following
principles, which give effect to the Bill of Rights. The principles as contained in the White
Paper include:
● people-centred development and partnerships
● skills transfer and economic development
● fairness and equity
● choice
● transparency, accountability and monitoring
● sustainability and fiscal affordability

2.3 HOUSING ACT 107 OF 1997

The Housing Act provides for the facilitation of the sus-
tainable housing development process. It lays down general
principles applicable to housing development in all spheres of
government and defines the functions of national, provincial
and local governments in respect of housing development. It
also provides for the establishment of a South African Hous-
ing Development Board, the continued existence of provincial
boards under the name of provincial housing development
boards and the financing of national housing programmes.
Whilst municipalities have a clear mandate to ensure the access of communities to adequate
housing and services, the specific function of executing national and provincial housing
programmes lies with provincial government. The policy intent, however, is to progressively
enable municipalities to manage the full range of housing instruments to allow for better
coordinated and accelerated human settlements delivery. Section 10 of the Act allows for the
administration of national housing programmes by municipalities through accreditation.

2.4 THE COMPREHENSIVE PLAN, 2004

Approved in September 2004 as a framework for the next decade, the Comprehensive Plan is
the government’s medium-term housing programme. It is based on the principles contained
in the 1994 White Paper, such as providing citizens with a permanent residential structure
with secure tenure, potable water, adequate sanitation facilities, and domestic energy supply,
and outlines the strategies to achieve the government’s overall housing aim. The key to
realising the objectives of the Comprehensive Plan is the vigorous engagement and
participation of sector-specific stakeholders, including the Presidency (chapter 9 institutions),
government departments, the private sector and the civil society. The goal is to address the
housing needs of the people, within the context of the broader socio-economic needs,

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 LEARNING UNIT 2: Legislation and policy framework

resulting in sustainable human settlements. The Comprehensive Plan is supplemented by

seven business plans:
● Stimulating the Residential Property Market
● Spatial Restructuring and Sustainable Human Settlements
● Social (Medium-Density) Housing Programme
● Informal Settlement Upgrading Programme
● Institutional Reform and Capacity Building
● Housing Subsidy Funding System Reforms
● Housing and Job Creation
● The Comprehensive Plan for the Creation of Sustainable Human Settlements (Sep-
tember 2004) – envisages the accreditation (and assignment) of municipalities, in particular
the metros, to administer national housing programmes. In order to be accredited (and ul-
timately assigned), municipalities will have to demonstrate their capacity to plan,
implement, and maintain both projects and programmes that are well integrated within
IDPs, and within the three-year rolling capital investment programmes mandated by the
MFMA.
● Accreditation and assignment framework for municipalities to administer national
human settlements programmes – the framework provides for the processes involved
in managing the capacitation of municipalities for the assignment of human settlements
functions to the local sphere of government. The policy intent is to progressively enable
municipalities to manage the full range of housing instruments to allow for better coordi-
nated and accelerated human settlements delivery. Assignment has been emphasised as a
key government priority in support of more effective and efficient human settlements de-
livery. The accreditation, and ultimately the assignment, of municipalities to administer
national housing programmes on behalf of provinces seeks to achieve two interlinked
objectives:

2.4.1 Coordinated development (horizontal integration)

By locating the decision-making authority around the administration of national housing
programmes at the local sphere, municipalities can coordinate decisions that relate to the
broader sustainability of human settlements. Municipalities are a logical site for the effective
alignment of inter-departmental and inter-governmental funding streams. With the authority
to take such decisions, opportunities for the application of innovative planning principles
arise and this contributes to the potential for the development of integrated and sustainable
human settlements within municipal jurisdictions. This is a key emphasis of the
Comprehensive Plan for the Development of Sustainable Human Settlements, “Breaking
New Ground”, as well as the Intergovernmental Relations Framework Act of 2005.

2.4.2 Accelerated service delivery (vertical integration)

The efficiencies associated with certainty in respect of funding allocations, and decentralising
delivery authority to local sphere, should lead to accelerated delivery and improved
expenditure patterns. This should result in a reduced requirement to roll over unspent funds,
as well as more coordinated approach to planning approval and implementation.
The Comprehensive Plan for Housing Delivery seeks to promote the achievement of a non-
racial, integrated society through the development of sustainable human settlements and
quality housing. The objectives of the plan include the following;

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LEARNING UNIT 2: LEGISLATION AND POLICY FRAMEWORK

● accelerating the delivery of housing as a key strategy for poverty alleviation

● utilisation of housing as a major job creation strategy
● ensuring property can be accessed by all as an asset for wealth creation and empowerment
● leveraging growth in the economy
● combating crime, promoting social cohesion and improving quality of life for the poor
● supporting the functioning of the entire single residential property market to reduce duality
within the sector by breaking the barriers between the first economy residential property
boom and the second economy slump
● utilising housing as an instrument for the development of sustainable human settlements,
in support of spatial restructuring
The plan moves away from the commoditised focus of housing delivery towards more
responsive mechanisms, which addresses the multi-dimensional needs of sustainable human
settlements. It seeks to:
● expand the scope of the housing mandate of the Department to encompass the entire resi-
dential housing market
● shift from product uniformity to demand responsiveness
● enhance the role of the private sector
● create linkages between the primary and secondary residential property market

2.4.3 From housing to sustainable human settlements

● progressive informal settlement eradication
● promoting densification and integration
● enhancing spatial planning
● enhancing the location for new housing projects
● supporting urban renewal and inner city regeneration
● developing social and economic infrastructure
● enhancing the housing product

2.4.4 Existing and new housing instruments

● the informal settlement upgrading instrument
● the social (medium-density) housing instrument
● developing a rural housing instrument
● expanding the role of local government
● national and provincial institutional reforms
● promoting inter-governmental and intra-governmental coordination and alignment

2.4.5 Financial arrangements

● restructuring the subsidy instrument
● adjusting beneficiary contributions and criteria
● enhancing funding flows
● addressing fraud, corruption and maladministration

2.4.6 Job creation and housing

Housing delivery also contributes towards alleviating income poverty by providing direct and
indirect jobs within the construction sector.

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 LEARNING UNIT 2: Legislation and policy framework

2.4.7 Information, communication and awareness building

There is a need for inter-related strategies to provide housing-related information to
stakeholders and communities. The information is no longer restricted to communication on
the subsidy, but has been broadened to focus on the broader residential market encompassing
a greater emphasis on community mobilisation.

2.4.8 The existing housing instruments

The informal settlement upgrading instrument

A more responsive housing delivery programme will assist in ensuring the progressive in situ
upgrading of informal settlements. The process will follow an in situ approach.
It will require the support of the Departments of Home Affairs, Basic Education, Public
Works, Cooperative Governance and Traditional Affairs, Water and Environmental Affairs,
and Health.

Enhanced people’s housing process (EPHP)

● introduces a redefinition of the nature, focus and content of PHP to achieve better agree-
ment of the roles and responsibilities and other elements of the programme
● new funding mechanism for PHP
● new and improved institutional support arrangements

Strengthening the social housing instrument

The new social housing instrument focuses on the need to deliver housing with an emphasis
on flexibility and to accommodate mobility of community members. The programme includes
the following:
● Redefining the concept of social (medium-density) housing: It is essential that social hous-
ing typologies be conceptualised broadly to ensure the inclusion of all income groups.
Social housing must be understood to accommodate a range of housing product designs
to meet spatial and affordability requirements. Social housing may accordingly include mul-
ti-level flats or apartments for higher income groups (incorporating beneficiary mixes to
support the principle of integration and cross-subsidisation); cooperative group housing;
transitional housing for destitute households; communal housing with a combination of
family and single room accommodation with shared and community residential units.
● A new funding mechanism for social housing: A new funding mechanism has been devel-
oped where each project will be designed and costed separately around the actual needs.
● Building institutional capacity within the social housing sector: Some social housing institu-
tions will have to be enhanced and further capacited to deliver and manage the housing
stock. To achieve this, a social regulatory authority is being established to administer ac-
creditation processes and undertake monitoring of the development progress of social
housing institutions that wish to apply for capital grants.

Enhancing the rural housing programmes

There is a need to address the urban bias caused by the existing housing programmes. The
Comprehensive Plan aims at:

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LEARNING UNIT 2: LEGISLATION AND POLICY FRAMEWORK

● developing a rural housing programme that deals with a range of rural development issues
such as tenure security and the roles of local administration and governing authorities
● improving the traditional technologies and indigenous knowledge related to housing deliv-
ery and construction
● developing appropriate funding mechanisms
The holistic approach will cater for areas where households only enjoy functional tenure
security and housing provision for farm residents.

2.4.9 Adjusting institutional arrangements within government

● building capacity and expanding the role of municipalities
● transforming national and provincial institutions
● strengthening inter-governmental and intra-governmental coordination

2.4.10 Building institutions and capacity

The Comprehensive Plan recommends capacity building for the following institutions:
● municipalities
● social housing institutions
● PHP institutions
● financial institutions
● communities

2.4.11 Enhancing financial arrangements

● restructuring the subsidy instrument
● adjusting beneficiary contributions and criteria
● improving the flow of funding
● eradicating fraud, corruption and maladministration

2.4.12 Building awareness and enhancing communication

● improving market information and transactional support
● mobilising communities
● strengthening the people’s contract

2.4.13 Implementing systems for monitoring and evaluation

● Monitoring of housing subsidy and expenditure data: A strategy has been developed to im-
prove data input and integration.
● Performance management: A housing sector monitoring, information and reporting sys-
tem based on key performance indicators has been developed.
● Monitoring, Evaluation and Impact Assessment Policy (MEIA): This sets the basis for the
development and implementation of the system within the Department.

2.5 HOUSING CONSUMERS PROTECTION MEASURES ACT, 1998

The Act provides for the establishment of a statutory body for home builders. The National
Builders Council (NHBRC) registers builders engaged in certain categories of housing
construction and regulates the home building industry by formulating and enforcing a code of

18
 LEARNING UNIT 2: Legislation and policy framework

conduct. The implementation of the Act is continuously monitored by the Department (of
Human Settlements).

2.6 HOUSING DEVELOPMENT AGENCY ACT 23 OF 2008

In order to speed up human settlement development, the Act provides for the establishment
of a statutory body to:
● identify land for the development of sustainable human settlements in provinces and
municipalities
● facilitate the acquisition and holding of land and landed properties
● facilitate planning processes
● coordinate funding
The work of the agency and the implementation of the Act is monitored by the Department.

2.7 PUBLIC FINANCE MANAGEMENT ACT 1 OF 1999

The Act provides for the effective management of public funds by public sector officials,
including those in public entities. The Act places a greater implementation responsibility on
managers and makes them more accountable for their performance.

2.8 SOCIAL HOUSING ACT 16 OF 2008

This Act provides for the establishment of the Social Housing Regulatory Authority (SHRA).
The SHRA reports to the Minister of Human Settlements and the Department monitors the
delivery of its statutory mandate. It defines the functions of the national, provincial and local
spheres of government in respect of social housing.

2.9 DIVISION OF REVENUE ACT (DORA)

The Act enforces the compulsory use of the Housing Subsidy System (HSS) as part of the
conditions as gazetted.

2.10 HOME LOAN AND MORTGAGE DISCLOSURE ACT, 2000

The Act provides for the establishment of the Office of Disclosure and the monitoring of
financial institutions that serve the housing credit needs of communities. It requires financial
institutions to disclose information and to identify possible credit needs of communities. The
Act and its regulations have been in operation since 7 July 2007 through a presidential
proclamation.

2.11 ESTATE AGENCY AFFAIRS ACT, 1976

The administration of the Estate Agency Affairs Act of 1976 was taken over by the
Department of Human Settlements from the Department of Trade and Industry in 2012
following a presidential proclamation. The main objectives of the Act are to:
● establish the Estate Agency Affairs Board (EAAB) to regulate the conduct of estate agents
● establish the estate agents fidelity fund
● monitor trends within the real estate industry
● render education and training to estate agents

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LEARNING UNIT 2: LEGISLATION AND POLICY FRAMEWORK

2.12 INCLUSIONARY HOUSING BILL

The Inclusionary Housing Policy has been completed and a bill has been drafted. It will be
submitted to cabinet for in-principle approval.

2.13 SECTIONAL TITLES SCHEMES MANAGEMENT BILL

The bill takes over the housing management provisions of the Sectional Titles Act, which is
administered by the Department of Rural Development and Land Reform.

2.14 COMMUNITY SCHEMES OMBUD SERVICES BILL

The bill is linked to the Sectional Titles Schemes Management Bill and provides for a dispute
resolution mechanism for sectional titles and other residential community schemes.

2.15 ESTATE AGENCY AFFAIRS ACT, 1976

The main objectives of the Act are to:
● establish the Estate Agency Affairs Board (EAAB) to regulate the conduct of estate agents
● establish the estate agents fidelity fun
● monitor trends within the real estate industry
● render education and training to estate agents

2.16 RENTAL HOUSING ACT 50 OF 1999

The Act defines the responsibilities of government with regard to the rental housing market.
It creates mechanisms and promotes access to advance the provision of rental housing
property. It also promotes access to adequate housing by working to ensure proper
functioning of the rental housing market. It provides for the facilitation of sound relations
between tenants and landlords and it sets out general principles relating to leases.

ACTIVITY 1: LEGISLATION AND POLICY FRAMEWORK

In your words, describe the necessity to regulate the social housing environment in South
Africa?

.................................................................................................................................................

.................................................................................................................................................

.................................................................................................................................................

.................................................................................................................................................

2.17 HUMAN SETTLEMENT VISION FOR 2030

As the name suggests, the human settlements vision is a section of the National Development
Plan (NDP), which sets out South Africa’s vision with regard to human settlements. It spells
out the desired level in terms of human settlements that the country seeks to achieve in the
specified time frames.

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 LEARNING UNIT 2: Legislation and policy framework

2.17.1 Intent of the legislation and policy on human settlements

Since 1994, important socio-economic, demographic and policy shifts have occurred, which
necessitated the introduction of new, innovative and needs-oriented strategies to achieve the
creation of sustainable human settlements. The Comprehensive Plan, with its emphasis on
sustainable human settlements, reinforces the vision of the National Department to promote
the achievement of a non-racial, integrated society through the development of sustainable
human settlements and quality housing. The goals of the policy and policy development of
human settlements include the following:
● accelerating the delivery of housing as a key strategy for poverty alleviation
● utilising the provision of housing as a major job creation strategy
● ensuring that land and housing can be accessed by all as an asset for wealth creation and
empowerment
● leveraging growth in the economy
● combating crime, promoting social cohesion and improving the quality of life for the poor
● supporting the functioning of the entire single residential property market to reduce duality
within the sector, by breaking the barriers between the first economy residential property
boom and the second economy’s property slump
● using housing delivery as an instrument for the development of sustainable human settle-
ments, in support of spatial restructuring

2.18 SELF-EVALUATION QUESTIONS

Test your knowledge of and insight into this study unit by stating the purpose or the reason
for its origination of the most important pieces of legislation that influence the human
settlements management environment in South Africa:

NAME OF ACT PURPOSE

Housing Act 107 of 1997
Housing Consumers Protection Measures Act,
1998
Housing Development Agency Act 23 of 2008
Public Finance Management Act 1 of 1999
Social Housing Act 16 of 2008
Estate Agency Affairs Act, 1976
Home Loan and Mortgage Disclosure Act, 2000

2.19 REFERENCE LIST

CSIR. 2000. Guidelines for human settlement planning and design. Pretoria: CSIR.
The Presidency. 1995. Development Facilitation framework (Act No 67 of 1995). Pretoria: Govern-
ment Printers.
South Africa (Republic) (RSA). 1996. Constitution of the Republic of South Africa, Pretoria: Gov-
ernment Printers.

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LEARNING UNIT 2: LEGISLATION AND POLICY FRAMEWORK

South Africa (Republic) (RSA). 1999. Public Finance Management Act. (Act No 1 of 1999) as
amended by Act 29 of 1999. Pretoria: Government Printer.
The Presidency. 2005. Intergovernmental Framework Act (No 15 of 2005). Pretoria: Government
Printer.
South Africa (Republic). 1998. White Paper on Local Government. Pretoria. Government Printer.
Department of Housing. 2004. “Breaking New Ground” – A Comprehensive Plan for the Development of
Sustainable Human Settlements. Pretoria: Department of Housing.
South Africa (Republic). 2013. National Department of Human Settlements Vote 31, Annual Report
for the year ended 31 March 2013. Available at: http://www.dhs.gov.za/ (accessed on 05 July
2014).
South Africa (Republic). 2013. National Department of Human Settlements Vote 31, Annual Report
for the year ended 31 March 2013. Available at: http://www.dhs.gov.za/ (accessed on 05 July
2014).

22
Learning unit 3
Roleplayers and stakeholders Learningunit3

LEARNING OUTCOMES

After you have completed this unit, you should be able to:
● understand the overall and holistic structure involved in facilitating and regulating public
human settlements in the developing South Africa
● identify concepts that apply to approach in terms of long-term commitment, meaningful
stakeholder participation and individual responsibility
● critically analyse and synthesise information, in order to differentiate between potential
products, in terms of residential accommodation, tenure options, subsidised affordable
housing and suitable location
● describe the correct procedures on how to evaluate performance against given criteria
through the use of models for social institutions and subsequent evaluation of social in-
stitutions against social purpose and strategic intent
● present and communicate how social housing relates to a cognitive area encompass-
ing governance structures of legally allowed social institutions in South Africa, in terms
of approach and products
● identify the concepts that may be used to define government structures, recognise limi-
tation in powers and responsibilities of roleplayers, and determine the level of
beneficiary participation in associated public management structures

3.1 INTRODUCTION
From the aforementioned two study units in this module, you have now determined that our
approach to this very interesting field of study (the locus) is a holistic one and very pragmatic
so that you as a public administrator (or potential one) can identify the essential theoretical
aspects of concern regarding effective public management of human settlements (the focus),
understand it thoroughly with insight, and to apply (make it happen) in your own work and
living environments.
In this last study unit of module PUB1602, we will assist you in identifying some structural
and organisational aspects (tools) that might help to bring about a positive change in
especially the public housing part of your public sector environment.

3.2 ORIENTATION AND BACKGROUND

The Constitution of the Republic of South Africa (1996) and all the subservient local
government sphere legislation define post-1994 local government as “developmental” in
nature, involving integrated development planning. This requires municipalities to coordinate
all development activities within their geographically demarcated municipal areas of
jurisdiction (Pycroft 1996:151). We therefore find that the White Paper on local government
accordingly requires that municipalities develop mechanisms and organisational arrangements
to facilitate effective delivery of public services by municipalities in their geographical
responsibility municipal areas and the facilitation of effective citizen participation in for
example, municipal public policy formulation and implementation. These citizens might
previously have been ignored, neglected and not identified and are now, for the first time in

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LEARNING UNIT 3: ROLEPLAYERS AND STAKEHOLDERS

their lives, allowed to participate in a holistic and integrated quest towards developmental
municipal management by government and participating partners and stakeholders; the focus
being upon the complex process of effective, efficient and economic public policy-making
and implementation – in other words, the realisation of co-operative governance par
excellence.
With reference to the facilitation of improved public housing and its supportive bulk
infrastructure services (e. g. stormwater management, potable water supply and the
management of sewer and refuse), the South African government, through the continuous re-
demarcation of municipalities’ geographical areas of responsibility, tries to, inter alia, facilitate
the effective growing of local economies and the maintenance as well as improvement of the
provisioning of an increased number of diverse and more complex basic municipal services
by all the involved service providers to new geographical areas encompassing millions of
citizens.
In order to familiarise ourselves with the historical developments of the current public
housing policy in the developing South Africa, we can thoroughly read (with insight and
continuous application in our own real worlds) the following compilation by the Department
of Human Settlements as presented on their internet website:
“The formulation of South Africa’s Housing Policy commenced prior to the democratic
elections, with the formation of the National Housing Forum. This forum was a multi-party
non-governmental negotiating body comprising 19 members from business, the community,
government, development organisations and political parties outside the government at the
time. At these negotiations the foundation for the new government's Housing policy was
developed and agreed to. This culminated in the achievement of the broad housing sector
convention also referred to as the Housing Accord that concluded into the White Paper on
Housing 1994. The Government of National Unity in 1994 made use of these negotiations
and investigations when it formulated South Africa’s National Housing Policy.
In October 1994 a National Housing Accord was signed by a range of stakeholders
representing the homeless, government, communities and civil society, the financial sector,
emerging contractors, the established construction industry, building material suppliers,
employers, developers and the international community. This accord set down the beginning
of the common vision that forms the essence of South Africa’s National Housing Policy.
Most importantly, it comprised an agreement that all of these stakeholders would work
together to achieve the vision encapsulated in the Accord.
The National Housing Accord was soon followed by the Housing White Paper which was
promulgated in December 1994. The White Paper sets out the framework for the National
Housing Policy. All policies, programmes and guidelines which followed, fell within the
framework set out in the White Paper.
The promulgation of the Housing Act, 1997 [Act No. 107 of 1997] [the Housing Act]
legislated and extended the provisions set out in the Housing White Paper and gave legal
foundation to the implementation of Government's Housing Programme. The Housing Act
aligns the National Housing Policy with the Constitution of South Africa and clarifies the
roles and responsibilities of the three spheres of government: national, provincial and
municipal. In addition, the Housing Act lays down administrative procedures for the
development of the National Housing Policy (DHS 2014: Online).

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 LEARNING UNIT 3: Roleplayers and stakeholders

It is important to note that part and parcel of the implementation of the public housing (with
security of tenure [roof over one’s head]) legislation in the developing South Africa goes the
provisioning of basic “essential services”, which, inter alia, include the management of storm
water, provisioning of suitable roads, wash and potable water, sanitation, as well as effective
refuse removal and a healthy environment. All of these functions are a lot more diverse and
complex than what they seem like and will be addressed in detail in the more advanced
modules of your learning adventure.
If one looks at the nature and extent of housing in, for example, the Bekkersdal Township
(Westonaria Local Municipality, Gauteng Province), one is confronted with people having to
stay in houses looking like the one depicted in the following figure:

FIGURE 3.1
Informal squatter’s house in Bekkersdal

Source: Author’s private collection

No wonder that thousands of residents of the area now feel that they have waited too long for
the government and have experienced enough, as they call it, “sloppy basic service delivery by
their responsible local government authority” and are acting and behaving as follows:

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LEARNING UNIT 3: ROLEPLAYERS AND STAKEHOLDERS

FIGURE 3.2
Residents’ protests in Bekkersdal, Westonaria

Source: Author’s private collection

For us as students, researchers, “academic detectives” and peaceful activists, it is most of the
time very difficult to stay objective and try to listen to both sides of the roleplayers and
stakeholders involved in the protests when we want to determine some of the root causes for
this unfortunate status of our physical and human changed environment.
Also look at the following YouTube clip illustrating the dissatisfaction of the Bekkersdal
residents with the level of their sub-standard basic services rendering in their living area:

FIGURE 3.3
YouTube-clip illustration

Source: http://www.youtube.com/watch?v=B4ADqeCpnaA

Phago (2010: v) four years ago already identified the following as possible reasons for the
aforementioned dissatisfaction of citizens regarding sub-standard public housing in their
respective municipal areas:

26
 LEARNING UNIT 3: Roleplayers and stakeholders

● not involving the communities themselves in the compilation of public policies and the im-
plementation of it
● poor administrative capacities
● shortage of suitable land for housing development
● housing affordability problems
● lack of sound inter-governmental relation systems
It furthermore is no secret that the South African society in which we all live today is
characterised by extreme disparities in wealth, income and access to basic resources. This,
unfortunately, leads to inter alia, the establishment of informal settlements right next to highly
developed and most of the time wealthy suburbs; two different worlds forced to get by in
harmony side by side.
Recent history has also registered that the current ANC-led government since 1994 inherited
a housing backlog of at least 2,5 million houses. About 2 million houses were built during the
period 1994 to 2005. The current shortage of suitable accommodative houses is still 2,5
million! (Knight 2001: Online). This might be a result of incorrect and carelessly executed
censuses, unmonitored influx from the rural areas and unmonitored and unregulated
immigration of foreigners to the developed areas of the country.
In the next section, we will look closer at the place and role of the major roleplayers in South
Africa’s public housing environment.

3.3 MAJOR ROLEPLAYERS

Post-apartheid South Africa came about during the first all-race elections held from 26 to 29
April 1994. The ANC-led government constructed and has facilitated an ambitious plan to try
and redress the imbalances of the past, especially on the housing front.
The Republic of South Africa Constitution Act of 1996 (hereafter Constitution) identified an
entirely “new set of rights” for the country’s citizens. These relate to inter alia, the rights to
health-care services, food and water, social security and social assistance contained in section
27, education in section 29 and housing in section 26(1). The Constitution (section 26[1]) is
very clear, regarding housing, on everyone’s “right to have access to adequate housing” and
section 26(2) expands on the aforementioned by allocating the State the responsibility to “take
reasonable legislative and other measures, within its available resources, to achieve the
progressive realisation of this right”. This ought to realise on all three spheres of government:
Schedule 4A instructs the national and provincial legislatures and executive institutions “with
the responsibility for housing the nation”, whereas Schedule 4B instructs the subservient
municipalities “to see to building regulations, electricity and gas reticulation, storm water
management, and water and sanitation services” (RSA 1996).
Public housing policy creation and implementation at the national government sphere of the
developing South Africa are not focused on the segregation of low-income settlements, low-
density sprawl and deepening urban poverty anymore. Revised housing policy and
programmes like “Breaking New Ground” now realise according to a holistic approach
including the community as a whole. Reacting and capacitated municipalities now first
investigate the feasibility of in situ upgrading before relocation is seen as the only way forward.
It makes available funding for immediate provision of, inter alia, basic municipal services such
as sanitation and potable water, community empowerment, and in the last instance, will also
render assistance if the last option of relocation to a safer and more sustainable area realises.

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LEARNING UNIT 3: ROLEPLAYERS AND STAKEHOLDERS

This is most of the time due to some geotechnical challenges, such as undermining, dolomitic
soils and rock and being located immediately downstream of a pollution source such as a
sewage works.
The newly structured national government sphere, the Department of Housing, acted quick
to propose a transformed public housing policy for the country and its citizens: the White
Paper on Housing of 1994. This paved the way for the current Housing Act passed by
Parliament in 1997. In 2000, the Department published a re-capitulatory document called the
National Housing Code – all of the aforementioned aimed at the construction of a framework
whereby sustainable and suitable housing can be facilitated for everyone living in this
developing country.
In the next section, we will look closer at the place and role of the Department of Housing
(DoH) in the developing South Africa.

3.3.1 Department of Human Settlements

Following President Jacob Zuma's proclamation in 2009 to change the name of the
Department of Housing to the Department of Human Settlements, the focus shifted from
housing being just a roof over people's heads, to providing sustainable and integrated human
settlements where people can work, pray, play and have access to amenities required for their
day-to-day living (DHS 2014:Online).
The ANC-led government has set itself the target of making a positive impact on the quality
of life of 500 000 households by 2014 by upgrading informal settlements. The upgrade will
provide households with security of tenure and access to essential services in sites that are
close to economic and other social amenities. The major institutional tool will be the
Department of Human Settlements (DHS).
The Department is structured and promulgated as public policy implementing institution to
determine finances (and other resources), and to promote, communicate and monitor the
implementation of public housing AND (author’s own emphasis) sanitation programmes in
South Africa. To meet its objectives of sustainable human settlements and improved quality of
household life, the Department has identified the following areas of priority:
● accelerated delivery of housing opportunities
● access to basic services
● more efficient land use
● an improved property market (DHS 2014:Online)
The aforementioned departmental goals through the Constitution are based upon the
following:
● accountability
● fairness and equity
● choice, quality and affordability
● sustainability
● innovation
● adherence to Batho Pele principles

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 LEARNING UNIT 3: Roleplayers and stakeholders

The ANC-led government’s approach to addressing the housing challenge in a positive

manner entails the following three phases:
● In the first phase, the government devotes resources to service a suitable portion of land
with housing-related infrastructure – previously unoccupied (greenfield development) or
already occupied by the target community (brownfield development).
● In the next phase, informally housed families, and whenever possible, an entire community,
are entitled either to relocate their informal dwelling to their new serviced-and-secured
plots or keep it where it is, or maybe nearby to allow for a better layout of the site, and
benefit from the infrastructural improvements and security of tenure provided to their set-
tlement (in situ upgrading).
● In the third and last phase of formalisation (consolidation), subsidised houses are finally
put up to replace the informal top structures of those families who are eligible for housing
subsidies (Cortemiglia 2006:86).
See the following figure for an organogram utilised by the pre-2009 Department of Housing
in trying to facilitate the aforementioned phases of formalisation in the development-oriented
South Africa:

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LEARNING UNIT 3: ROLEPLAYERS AND STAKEHOLDERS

FIGURE 3.4
Organogram of Department of Housing (before 2009)

Source: Adapted by Nealer from DPSA, 2013

Then some changes were brought about in 2009 when the current Department of Human
Settlements was established according to the following organogram:

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 LEARNING UNIT 3: Roleplayers and stakeholders

FIGURE 3.5
Organogram of Department of Human Settlements (since 2009)

Source: Adapted by Nealer from DPSA, 2014

From the two organograms in figures 4 and 5 originating from the two different time and
government eras, one can see that the new transformed loci (places) and foci (focuses) of the
South African government in the public housing sector have necessitated a changed
(hopefully strengthened) organisational structure with the provision of “new” or transformed
services and functions. This has also been brought about, inter alia, by the more sophisticated
needs of millions more citizens in the developing South Africa; many of whom were
previously (or may still be) disadvantaged regarding experiencing of 21st-century basic
housing services for a sustainable livelihood.

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LEARNING UNIT 3: ROLEPLAYERS AND STAKEHOLDERS

After a quick (and maybe too superficial) browse-over and interpretation of the two
organograms, the following major changes (differences) were identified:
● In comparison to the previous Department of Housing’s five branches, the current De-
partment of Human Settlements structurally now makes provision for six branches or
programmes with DDGs “in charge”.
● The previously named branch, called “Program management and implementation” has
been renamed the “Program and Project Management Unit (PMU)”. The branch has a re-
gional office in every province (“on the doorstep of all citizens throughout the country”)
to make provision for the following essential Human Settlements (HS) functions:
– Project planning and delivery by means of the basics of the Project Management Body
of Knowledge (PMBOK) principles.
– Emphasis on programme monitoring, reporting and evaluation services. Hopefully, the
public managers and “big-picture thinkers” of the Department will also look at meas-
ures or tools with which to improve challenges and shortcomings in the national,
provincial, as well as local quests to more effective, efficient, economic, equal, ethical
and environmentally sensitive HS in the developing South Africa.
– The nature and extent of service delivery now are up-front and major drivers in the
public management in and by the Department.
– Sanitation services since 2009 for the 1st time ever came “onto the radar screen” as
part of the provisioning of public housing. Together with this, the importance of a ho-
listic approach in developing a township hopefully was followed. Issues like the
underlying rock and soil types (taking into account the dangers of unstable dolomite),
mining and geohydrology (being located upstream or downstream of a pollution source
like sewerage works) were addressed.
– The importance of effective EIAs was also taken into account to facilitate the construc-
tion of sustainable and safe “roofs over our heads”.
– The responsibility of the management of the country’s sanitation systems and chal-
lenges since August 2014, after six years has been handed over to the newly structured
Department of Water and Sanitation (previously the Department of Water Affairs).
– The branch also makes provision for a directorate responsible for risk management in
the human settlements sector.

ACTIVITY 1: REASONS FOR CHANGE

● Why do you think did the country’s macro-planners in the Cabinet decide to affect this
change?
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................

● In the Branch Corporate services, the importance of an in-house information manage-

ment system (IMS) as well as information technology services as planning and
management tools is acknowledged as essential and special provision has been made for it
in the HS organogram. This also brought forth the establishment of a library and informa-
tion services directorate.
● The Branch HS delivery framework now also makes provision for a directorate responsi-
ble for sectoral transformation programmes specifically.

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 LEARNING UNIT 3: Roleplayers and stakeholders

● The previous programme called Monitoring and evaluation has now been renamed the
Branch: Chief of operations with a new focus on enterprises architecture’s establishment,
enablement, monitoring, reporting and control. The function of the Office of Disclosure
has now been relocated to the branch of the CFO in the Directorate of Housing Equity.
The Branch: Chief financial officer now only makes provision for the “basics” of
public finance in that it accommodates the homes equity, entities oversight, funds
management, basic financial administration, SPM, budgeting and inputs for organisation
transformation; an improvement on the purpose and functions managed by the previous
organisational accommodation in the Department. Aspects regarding inter-governmental
relations and strategic planning have now been relocated to the new Branch: HS strategy
and planning.
● The newly structured Branch: HS strategy and planning now more sensibly takes care
of HS planning (the big picture), some basic research issues, inter-governmental relations
and the need for it to foster effective stakeholder relations and hopefully improved cooper-
ative governance (COG) in the final instance.
Let us hope that the Department understands all the dynamics of facilitation of effective
COG and that it cannot do all on its own, but that it needs effective partnerships,
communication, utilisation of each other’s strengths and covering for each other’s weaknesses!

ACTIVITY 2: ORGANISATIONAL STRUCTURES

● Can you, in addition to the abovementioned changes, identify and expand on some more
differences between the two organisational structures?
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................

The Department's support institutions play an important role in enhancing the norms and
standards of housing, as well as making housing more accessible to all South Africans. They
also facilitate the specific housing and housing-related needs of the market, in addition to the
role provincial governments and municipalities play. The institutions are the following:
● National Home-Builders Registration Council (NHBRC)
● National Housing Finance Corporation (NHFC)
● National Urban Reconstruction and Housing Agency (NURCHA)
● Rural Housing Loan Fund (RHLF)
● Housing Development Agency (HAD)
● Social Housing Regulatory Authority (SHRA)
● In 2012, the Estate Agency Affairs Board (EAAB), which used to fall under the Depart-
ment of Trade and Industry, was also transferred to the Department of Human
Settlements (South Africa Government Online 2014:Online).
● See the People’s Housing Process (PHP) – a legislative provision contained in chapter 8 of
part 3 of the National Housing Code.
In the subsequent sub-sections, we will familiarise ourselves with the “vitals” of these support
institutions as vehicles towards more effective public human settlements in the developing
South Africa.

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LEARNING UNIT 3: ROLEPLAYERS AND STAKEHOLDERS

3.3.2 National Home Builders Registration Council (NHBRC)

The NHBRC is a regulator body of the home building industry. The minister of the
Department of Human Settlements is responsible for the appointment of council members
for a period of three years in office. Its major goal is to assist and protect housing consumers
who have been exposed to building contractors who build and deliver housing units of sub-
standard design, workmanship and poor quality material.
As a regulatory body, the scope and mandate of the NHBRC is governed by The Housing
Consumers Protection Measures Act 95 of 1998. The Act states that the NHBRC’s role is the
following:
● represents the interests of housing consumers by providing warranty protection against de-
fects in new homes
● regulates the home building industry
● provides protection to housing consumers in respect of the failure of home builders to
comply with their obligations in terms of the Act
● establishes and promotes ethical and technical standards in the home building industry
● improves structural quality in the industry
● promotes housing consumer rights and provides housing consumer information
● communicates with and assists home builders to register in terms of the Act
● assists home builders, through training and inspection, to achieve and to maintain satisfac-
tory technical standards of home building
Source: NHBRC 2014:Online

The NHBRC also operates in terms of a council charter, which has been developed in
consultation with the shareholder (Minister of the Department of Human Settlements). The
charter makes provision for the roles and responsibilities of the council as the accounting
authority, vis-à-vis NHBRC management roles and responsibilities.
The council’s focus on risk management is one of its organisational themes ensuring that
governance systems and their effectiveness are given priority. In terms of section 5 of the
Housing Consumers Protection Measures Act (1998), the council is empowered to establish
committees and to delegate some of its functions to these committees and the CEO. These
delegations are done under established terms of reference for each committee that, in turn,
reports to the council on a quarterly basis. The following committees have been established
by the council to ensure effective governance in the business of the NHBRC:

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 LEARNING UNIT 3: Roleplayers and stakeholders

FIGURE 3.6
Organogram of NHBRC

Source: NHBRC 2014:Online

3.3.3 National Housing Finance Corporation (NHFC)

The NHFC is one of several development finance institutions (DFIs) created by the South
African government to sustainably improve on the socio-economic challenges of the country.
The developmental financial focus of the NHFC is specifically about finding workable models
on affordable housing finance for the low-income to middle-income beneficiary target market.
The agency defines its end-beneficiary target market as any South African household with a
monthly income that is between R1 500 and R15 000, namely, the low-income to middle-
income market. This market sector is mostly able to contribute towards its housing costs, but
finds it hard to access bank-funded housing finance.
The NHFC was established in 1996 by the then National Department of Housing (NDoH),
to offer housing finance, project facilitation and technical assistance to private and public
entities ensuring availability of housing stock for the target market. As a means of sustaining
its funding programs, the NHFC searches for better ways to mobilise finance for affordable
housing from sources outside the state in partnership with the broadest range of organisations.
The NHFC, in the affordable housing finance market sector, adopts a role of innovator, financier
and facilitator to ensure viable housing finance solutions; growth of sustainable human
settlements; and mobilisation of relevant partnerships, through enhanced insights and
knowledge gained.
The corporation is a registered public company and has been granted the necessary
exemption in terms of the Banks Act. As a national public entity, the NHFC adheres to the
regulatory framework of the Public Finance Management Act (PFMA). Visit the internet
address at http://www. nhfc. co. za/content. asp? level1ID= 1&level2ID=1&level3ID=1 for
some more information on the place and role of the NHFC.
Since 1996, the NHFC has been developing and testing various mechanisms, to not only
mobilise but also broaden access to housing finance for the "unbankable" majority, that is, the
working poor of South Africa. However, given the great divide that persists between those
that have access to credit and those that do not, the housing backlog continues to grow.
Research undertaken by the NHFC suggests that the greater percentages of households
applying to accredited lenders are employed, and have both the means and willingness to
access and service housing credit. This end-beneficiary housing market essentially requires

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LEARNING UNIT 3: ROLEPLAYERS AND STAKEHOLDERS

access to a diversity of products and a variety of channels. To create a robust sustainable

housing finance market in South Africa, partnerships at the development, wholesale and retail
levels are needed to provide innovative and affordable housing finance products and varied
housing stock options. The NHFC is quite clear that the combined efforts of the public and
private sectors remain critical if the demands are to be met; and constantly seeks mutually
beneficial partnerships.

3.3.4 National Urban Reconstruction and Housing Agency (NURCHA)

This supportive institution is an innovative development finance company that provides
bridging finance and construction support services to contractors and developers. The
Agency finances and supports the construction of subsidy and affordable housing,
infrastructure and community facilities, as well as the provision of account administration and
project and programme management services to local and provincial authorities.
NURCHA is characterised by the following:
● It is funded by the South African government in partnership with the Soros Foundation,
various overseas donors and other commercial lenders.
● It is a government institution that is committed to the development of sustainable human
settlements and building successful construction enterprises.
● It initiates programmes and takes considered risks to ensure a sustainable flow of finance
for the construction of low-income and affordable housing, community facilities and
infrastructure.
● Since inception in April 2013, NURCHA has financed projects worth over R17 billion, re-
sulting in 275 000 houses built for both the affordable and subsidy housing markets.
● It contributes to growth of the smaller, mainly black-owned construction companies,
which enable the contractors to build up a track record of success, credit and banking his-
tory enabling them to move on to other and more varied funding programmes within
NURCHA.
Source: NURCHA 2014:Online

3.3.5 Rural Housing Loan Fund (RHLF)

The RHLF is a Section 21 Company, ”Associated Not for Gain”, which was established in
1996 by the then National Department of Housing in South Africa, with initial grant funding
from the German development bank, the “Kreditanstalt für Wiederaufbau” (KFW). The
company was set up as a wholesale development finance institution with the mandate of
enabling low-income earners to access small loans that they could afford to repay. Borrowers
use these loans to incrementally improve their housing conditions. As a wholesale finance
institution, the RHLF facilitates housing microloans through intermediary or retail housing
finance lenders (RHLF 2010:Online).
The primary objective of the fund is to improve the basic living standards of low- income
rural people through the provision of funding to qualified intermediaries. Low incomes,
informal employment and relatively remote rural regions disqualify end users from dealing
with major commercial banks. The RHLF approved retail lenders, on the other hand, know
their communities and their markets well. They are able to lend to low-income country people,
keeping bad debts and arrears under control.

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 LEARNING UNIT 3: Roleplayers and stakeholders

The RHLF is one of the few organisations able to lend to people living on communal land
and informal settlements, because the house is not used as collateral. Housing finance
organisations are conspicuous by their absence from most rural areas. In this market,
transaction costs and credit risks are high.
Through its 37 retail lending clients since inception, the RHLF has funded housing
improvements for the rural poor. Typically, the final borrowers earn less than R9 800. The
average loan size is R4 600. About 55% of ultimate borrowers are female. The amounts seem
too small to render real improvements in housing, but most final borrowers have resources of
their own and gather many of their own building materials before they apply for a loan. A
little money, therefore, goes a surprisingly long way. Many homeowners pay off loans and
then take further credit to extend their houses one loan at a time. The borrowers themselves,
or very small-scale builders in the communities, undertake virtually all building. RHLF
publishes guidance on home building and improvement and the retail lenders help borrowers
to get the most out of their building rands (RHLF 2010:Online).

3.3.6 Housing Development Agency (HDA)

This national public development agency was established through the Housing Development
Agency Act 23 of 2008. The Housing Development Agency (HDA) promotes sustainable
communities by making well-located land and buildings available for the development of
housing and human settlements. As an organ of state, the HDA is accountable through its
Board to the Minister of the Department of Human Settlements.
The HDA Board is appointed by the Minister of the Department of Human Settlements and
includes appointees representing the Ministries of Co-operative Governance and Traditional
Affairs, Public Works, and Rural Development and Land Reform. The Board is responsible
for the governance of the Agency, in particular overseeing the financial health, and ensuring
that its mandate is affected.
The HDA was established to address the land acquisition and assembly process so as to
accelerate housing delivery and human settlement development. The two main objective of
the Agency as spelt out in section 7 of the Act are the following:
● identifying, acquiring, holding, developing and releasing well-located land and buildings
● providing project management support and housing development services
In order to achieve these objectives, the Agency must:
● ensure that residential and community developments are sustainable, viable and appropri-
ately located
● ensure that job creation is optimised in the process of residential and community
development
● introduce and manage a land inventory and information system
● ensure that community participation takes place (HDA 2014:Online)
As an example, the land planning and assembly programme of the Board is primarily aimed at
designing and coordinating strategies and support programmes that facilitate the release of
integrated land and landed property for sustainable human settlements development. The
programme also seeks to offer geo-spatial information services through research and
innovative solutions to national, regional and local partners. It also provides a monitoring and
evaluation function for sector programmes as requested and conducts a due diligence
function. The programme is structured into four areas of operation:

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LEARNING UNIT 3: ROLEPLAYERS AND STAKEHOLDERS

● land assembly strategy and support

● land geo-spatial information services
● knowledge and best practice services
● monitoring and evaluation
Source: HDA 2014:Online

Land assembly strategy and support

● providing guidance on a national sector-wide land assembly strategy
● designing land assembly response mechanisms in support of national targets and
programmes
● providing forward planning support including declaration of priority housing development
areas
● conducting due diligence on the HDA’s land acquisition programme

Land geo-spatial information services

● establishing a land and housing programme information database with a specific focus on
linkages of spatial and non-spatial data sets
● identifying, analysing and prioritising well-located suitable land that can be released
● researching and designing enhanced land analysis tools for accelerated land identification
criteria for integrated human settlements

Knowledge and best practice services

● developing analytical and support tools to improve the ability to implement the national
sector-wide land assembly strategy
● researching and developing approaches to development planning and land management in-
struments with partnerships

Monitoring and evaluation

● monitoring the implementation of national, provincial and local programmes with a speci-
fic focus on linkages of spatial and non-spatial data
● monitoring and evaluating programmes continually to improve sector support
Also falling within the ambit of the land planning and assembly programme are the
geographic and spatial information systems as required by section 7 (2) (d) of the HDA Act.
The HDA has developed an online system – the land and property spatial information system
(LaPSIS) – to perform this inventory function. LaPSIS is a government-driven engine that
stores all land and landed property data including a cadastre (a register) of ownership, title
documents, deeds, administrative boundaries and points of interest in South Africa.
LaPSIS is used to identify, verify, manage and monitor state, communal and private land,
thereby facilitating the acquisition, holding, development and release of this land for
residential and community purposes. The system offers sophisticated queries as well as
graphic and alphanumeric display capabilities. The implementation of the system allows the
Agency to detect all gaps in the land identification and acquisition process.

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 LEARNING UNIT 3: Roleplayers and stakeholders

LaPSIS also handles the generation of reports, thus establishing itself as an intelligent
reference system supporting strategic planning and guiding decision-making processes at
national level (HDA 2014: Online).

3.3.7 Social Housing Regulatory Authority (SHRA)

This authority was established in August 2010 by the Minister of the Department of Human
Settlements in terms of the Social Housing Act 16 of 2008. The SHRA is classified as a public
entity in terms of Schedule 3A of the Public Finance Management Act 1 of 1999 (PFMA). Its
mission is to regulate and invest to deliver affordable rental homes and renew communities.
The following functions of SHRA are identified:
● promoting the development and awareness of social housing by providing an enabling en-
vironment for the growth and development of the social housing sector
● providing advice and support to the Department of Human Settlements in its develop-
ment of public policy for the social housing sector and facilitate national social housing
programmes
● providing best practice information and research on the status of the social housing sector
● supporting provincial governments with the approval of project applications by social
housing institutions
● providing assistance, when requested, with the process of the designation of restructuring
zones
● entering into agreements with provincial governments and the National Housing Finance
Corporation to ensure the coordinated exercise of powers
Source: SHRA 2010:Online

FIGURE 3.7
Organogram of the SHRA

Source: SHRA, 2010:Online

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LEARNING UNIT 3: ROLEPLAYERS AND STAKEHOLDERS

The SHRA is the current custodian of social housing in South Africa. The purpose of social
housing is to contribute to the national priority of restructuring South African society in order
to address structural, economic, social and spatial dysfunctionalities; therefore contributing to
government’s vision of sustainable human settlements. Social housing contributes to widening
the range of housing options available to the poor.
The Social Housing Investment Programme was established through this Act and the SHRA
is responsible for the implementation thereof. To this end, the Regulatory Authority
developed the social housing regulations based on the Act. The programme consists of
different investment categories, being:
● capital investment in respect of social housing projects
● institutional investment in respect of institutional development and accreditation, project
packaging and risk management

3.3.8 Estate Agency Affairs Board (EAAB)

The EAAB was established in 1976 in terms of the Estate Agency Affairs Act 112 of 1976
with the mandate to regulate and control certain activities of estate agents in the public
interest. It regulates the estate agency profession through ensuring that all persons carrying
out the activities of an estate agent as a service to the public are registered with the EAAB. A
Fidelity Fund Certificate, which is to be renewed each year, is issued as evidence of such
registration and confirmation that such person is legally entitled to carry out the activities of
an estate agent.
The Board, which has been reporting to the Minister of the Department of Trade and
Industry since 1976, was transferred to the Department of Human Settlements on 17 May
2012 by Proclamation of the President of the Republic of South Africa (EAAB no date:
Online).
Unfortunately, the identification of the macro need for and facilitation of high-level
integration and cooperative governance between the various roleplayers and stakeholders are
not going well so far: “[T]he creation of sterile housing environments attests to a failure to
implement the stated intentions of housing policy to promote integrated development and
coordinate state investment to achieve holistic living environments” (Zack & Charlton
2003:61).
In the next section, we will try to identify some tools and “vehicles” with which we all
together can strengthen each other’s hands and try to cover for the shortcomings.
Remember, we are all together in this South African society and we owe it to each other to
work together and bring about a real feeling and realisation of “SIMUNYE” (we are one)!

3.4 FORMS OF INVOLVEMENT

Given the many and varied challenges regarding the public management of informal
settlements in a developing South Africa, it is essential that there be proper decentralisation to
and specialisation of the local government sphere institutions so as to pool and coordinate the
necessary expertise. In particular, it is advisable that there be in place an organisational unit or
an agency in charge of planning, coordinating, communicating and implementing local
government responses to the diverse range of physical, social, economic and environmental
challenges pertaining to informal settlements – including the responsibility of defining,

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 LEARNING UNIT 3: Roleplayers and stakeholders

promoting and managing mechanisms of public involvement. Such a unit should be

responsible for, inter alia, the following aspects:
● to build awareness among its personnel – both senior managers and front-line staff –
about participative governance principles and practices and to adopt appropriate incentives
(and penalties) for the staff to apply what they are taught
● to build awareness among residents of informal settlements about the participation op-
tions made available to them by the municipality
● to define the practical mechanics of participation, that is, to identify appropriate forms of
involvement to provide informally housed communities with the opportunity to interact
with the government in one way or another, depending on the ultimate desired goal of the
participation process
Source: Cortemiglia 2006:172–174

As a result, the following three relevant forms of involvement have been singled out:
O mb u d sm an ( p u bl ic p r o t e c t o r )
This office is appointed by the President of the Republic of South Africa and is charged
with the broad responsibility of investigating any Act or omission on the part of govern-
ment agencies and officials (both elected and non-elected) in any sphere of government
that results in prejudice to a citizen (Cortemiglia 2006:176).
P u bl ic m eet in g s
To ensure that a non-mediated information-flow between government and informally
housed communities occurs promptly and lasts over time, a public meeting or, better, a
regular series of public meetings are needed where both informally housed individuals
and relevant municipal officials have the opportunity to speak out and make clear what
they care about would probably fill the bill (Cortemiglia 2006:179).
Residents’ Committee
The establishment of “such committee may be the vehicle to consolidate a two-way com-
munication flow between the local government sphere municipality and an informally
housed community at the same time as it may serve to ensure the representativeness of
the participation process” (Cortemiglia 2006:181).

In order for the aforementioned to realise in the “real human settlements world out there”,
one of the most important factors is security of tenure, that is, the right of settlers over the
house and land they occupy (Cortemiglia 2006:42). The reason being that despite the fact that
most shack dwellers would be eager to upgrade their houses, lack or uncertainty of tenure
rights leave them unprepared to invest in something that might one day be demolished, to say
nothing of the fact that governments offer housing subsidies only to applicants who meet
qualifying criteria, one of which is usually the demonstration of the legal tenure of their plot.
With reference to the bare necessities “big 5” of basic service needs, the United Nations
Conference on Human Settlements (UNCHS) in 1996 identified the following that everyone,
everywhere, should have access to:
● clean water
● waste management
● energy, telecommunications and transportation
● streets and open spaces
● health-care centres, schools, police precincts and other social or recreational facilities

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LEARNING UNIT 3: ROLEPLAYERS AND STAKEHOLDERS

Sadly, these are most of the time deficient or absent in areas of informal settlements, thus
causing problems to residents and even the neighbouring areas.
Some municipalities and developers of townships in its geographical demarcated
responsibility areas also do not realise that the following more feasible and logical order of
investigations and services construction should be followed in establishing an area for human
settlements (formalisation):
● First and foremost, carry out an effective environmental impact assessment (EIA) in
the identified and demarcated geographical area. This will determine, survey and report
about, inter alia, the typical geology (dominant rock, soil and foundations), geo-hydrology
(location of water divides in creating surface and groundwater catchments [e.g. not utilising
borehole water immediately downstream of a sewage works]), surface and underground
mining, land use (e.g. dust and fertiliser pollution by neighbouring farmer), land claims and
ownership in the human settlement area (e.g. a township).
● Secondly, establish the exact location of streets and open spaces with their provisioning
for collecting and transport of stormwater and sewage (sanitation system).
● Only now, after the aforementioned phases of formalisation with its subsequent supply of
bulk services have realised, can one identify and construct the necessary infrastructure in-
volved with the sustainable sourcing, transport, collection, purification, storage, costing
and reticulation of clean and safe water for use and consumption in the newly estab-
lished township.
● The next phase will involve the demarcation, surveying and establishing of the formalised
municipal stands in the township (e.g. property register).
● Subsequently, attention can be given to the management of refuse (i.e. collection, trans-
port and processing) in the area.
● The new township area will now be accessible to plan for and furnish with electricity, tel-
ecommunications and public transportation facilities.
● Now, the actual construction and building of the houses can take place.
● Hopefully, the macro-planners of the area would have given urgent attention to the plan-
ning for and construction of schools, health-care centres, police precincts and other
social or recreational facilities.
● Lastly, the residents of the new township can be handed the keys to the front door of their
new houses; the WOW moment for every house owner!
A public-private partnership (PPP) is another way in which involvement by various
stakeholders can be facilitated. It usually tries to facilitate the rendering of public services
traditionally provided by the public sector, and it is a method of procuring public services and
infrastructure by combining the best of public and private sectors with an emphasis on value
for money and delivery of quality public services. Fourie (2006:926) asserts that in a contract
between a government institution and a private entity, the private entity assumes all the risk.
The government institution then becomes the monitor and regulator of service delivery, but it
is no longer an administrator of the service.
So, it seems like a holistic public administration and management approach is necessary
between various roleplayers, stakeholders, interested and influential parties to work together
in synchronisation through effective COG and a simunye approach; not on individual islands
or pillars of pockets of excellence! So, all governmental institutions at all three spheres (e. g.
municipalities), private sector and civil society should work together!

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 LEARNING UNIT 3: Roleplayers and stakeholders

ACTIVITY 3: IMPROVING SOUTH AFRICA

● Please watch the following 17 minute long YouTube clip Pop-up houses improve South
African slums: Andreas Keller at TEDxWWF regarding human settlements at the follow-
ing address: https://www.youtube. com/watch?v=p_YgOQp2uVM.

● After witnessing the appalling quality of life for people in the slum areas of South Africa,
Andreas Keller – co-creator of iShack – questioned how he could help. His solution in-
volved harnessing solar power to help build a brighter future for those living in energy
poverty. Andreas shares his touching story of how his idea is fostering a renewed hope
in creating a more sustainable future for slums.

● What are the most important challenges identified by Keller in the presentation?
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
● What are the new solutions Keller came up with in the clip?
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
● Can you identify a human settlements area near the place where you work or stay that
might benefit from the same type of creative shack upgrading?
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................

3.5 PUBLIC ADMINISTRATION AND HUMAN SETTLEMENTS

We are sure that you by now have been acquainted with the basics of the subject discipline
Public Administration and Management? If not, please revisit your PUB1601 module to
ensure that you understand that in the Department of Public Administration and
Management at Unisa, we are trying to capacitate you as potential or current public sector
official with, inter alia, the following knowledge and management skills:
Public administration is what government does. It exists within a political environment, and it
is this political context that makes it “public.” Public administration is about implementation
of the public interest. It is also about doing collectively what cannot be done as well
individually. It, furthermore, is law put into action in the form of statutes, regulations,
ordinances, codes, and so on. With reference to management in a community sense, it is seen
as action (s) by the people responsible for running the public bureaucracy (Definition n. d.:
Online).
For the purpose of this module and as primary recommendation for the way forward in the
facilitation of public human settlements in South Africa, we want to re- emphasise the
following sequential aspects of importance (the first three should be addressed prior to the
now well-known six “coat hangers”) when you have to start functioning (for example, launch

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LEARNING UNIT 3: ROLEPLAYERS AND STAKEHOLDERS

and lead a public housing project in a previously disadvantaged geographical area) on the
terrain of human settlements in a developing South Africa:

Public policy-making and implementation

We are of the opinion that, before you venture into a project, you first of all should do a
thorough literature study of, inter alia, legislation, policies, and development and public
administration and management strategies to see where they all originate from and who the
primary roleplayers and stakeholders are. Knowledge of this will then help you to identify
SMART (specific, measurable, achievable, realistic and timeous) ways of implementing the
public policies and/or strategies in an effective, efficient, economic, equal, ethical and
environmentally sensitive manner. In the process, close attention would hopefully also been
given to the place and role of the community members (residents of the municipal area).

Basic environmental information (e.g. EIA and geo-hydrology)

Subsequently to the aforementioned phase, a basic environmental information (EIA) survey
should be carried out. Issues such as, inter alia, the surface water catchment region with its
water divides, the flow of rivers, watercourses and springs, the occurrence of groundwater
aquifers, the dominant geology (rock types) and resulting soil types (e.g. potential danger of
high-risk dolomite), land use (e.g. farmers and industries), undermining of areas, the location
of identified human settlement areas downstream of a pollution source (e.g. sewage works or
a graveyard) and existing settlement areas with infrastructure should be identified, demarcated,
surveyed and the effects thereof determined.

Planning
Only after the aforementioned two phases have been completed and exhausted to their fullest
can the first phase of public administration and management – planning – realise. As you
already know, this phase with all its diverse and complex activities is defined as “…
comprehensive future- and result-oriented action(s) by means of processes of human thought
to control (govern) and maintain valuable resources for the social, environmental, political
and economic benefit of all” (Diedericks 2013:28).
As a capacitated public sector official, one should also try to utilise the basics of the PMBOK
(Project & Programme Management Body of Knowledge) in one’s quest to plan and schedule
all future activities, due dates, responsible persons, costs and quality measurement standards.

Structuring (organising)
The second phase of public administration and management usually entails the organisational
structuring of service rendering institutions according to specific organograms (schematic
illustration). See figures 4 and 5 for examples of the previous and current organogram of the
Department of Human Settlements. From this form of depiction, one can determine the
nature and extent of delegation of authority, location of responsibilities, the reporting and
giving account channels, as well as the downward, upwards and diagonal communication
channels and patterns in the day-to-day functioning of the institution. Together with the
facilitation of effective communication goes the provision for and utilisation of the “latest”
most effective information communication technology (ICT).

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 LEARNING UNIT 3: Roleplayers and stakeholders

Financing and human resources

Subsequently, the financing (money and budget provisioning) as well as human resource (the
worker and his or her placement, training and wellness, motivation and leading) issues can be
addressed together or one after the other.

Procedures and methods

Because of the aforementioned financing and HR activities being executed by human beings
and not by machines (e.g. “one-eyed” monsters in the form of computers and ICT systems),
the need for aligned and similar work procedures and methods in and by a specific
organisational unit arises.

Control
In the last instance, the effective, efficient and economic execution of public policies all come
together after continuous monitoring, reporting, evaluation and customisation (modification)
of all subordinate and integrated activities and actions towards the achievement of common
goals set in and by the institution as a whole.
This modus operandi is proposed in order to set the tone for and facilitate effective, efficient,
economic, equal, ethical and environmentally sensitive public service rendering through the
organising of cooperative governance between various roleplayers, stakeholders and involved
service providers.
As another recommendation to improve the nature and extent of human settlements in South
Africa, the place and role of cooperative governance should be identified as a “new vehicle”
towards more effective sustainable development. In this new approach, there is a shift away
from the narrow focus of governance to a broader focus, which includes the process by
which governments are selected, monitored and replaced; the capacity of the government to
effectively formulate and implement sound public policies; and the respect of citizens and the
state for the institutions that govern economic, social and environmental interactions among
them. Because of the fact that government cannot do everything themselves anymore, in a
broader focus, a wider range of governance mechanisms is used regarding growing positions
and roles of associations and partnerships that reflect the dynamic and interactive nature of
coordination and integration. This should surely also facilitate a more accommodating
environment for trans-disciplinary research and synergised outcomes.
An important key to the aforementioned objectives of cooperative governance is the
existence of effective organisational arrangements (internal and external) of which two-way
communication is first and foremost. This should lead to higher levels of visibility,
transparency, access and willingness of all actors and stakeholders to become involved,
committed and to participate in a more active manner towards holistic and synergised group
attempts at public service delivery and sustainable development per se. On, for example, the
terrain of potable water (drinking water) supply, these types of arrangements will benefit the
government’s aim to bring about effective integrated water resources management (IWRM)
in all geographical areas; the basic strategies that were determined at the World Summit in Rio
de Janeiro in 1992. It identifies water as a finite and vulnerable resource and calls for all to
work together in a participatory approach to emphasise the important role(s) that women play
in water management, which now has a social and economic value and which should be
managed in an equitable, efficient and sustainable manner (GWP 2012:Online).

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3.6 SUMMARY
Study unit 3 focuses on the place and roles of important roleplayers and vehicles toward more
effective facilitation of public human settlements in South Africa, which cannot be seen in
isolation but rather as part of a much broader and integrated public policy effort towards the
constitutional vision of a country without people living in shacks, huts or other inadequate
accommodation. In fact, chapter 4 of part 1 of the National Housing Code establishes that
housing can only operate within an institutional (e. g. governmental institutions at all three
spheres), macro-economic (e.g. growing the economy), and broad social (e.g. enhancement of
place and role of women) framework (Cortemiglia 2006:91– 92). Attention should also be
allocated to the nature and extent of the physical (natural and human-changed) environment
in the governmental quest!

3.7 SELF-ASSESSMENT QUESTIONS

Test your knowledge of and insight into this study unit by answering the following questions:
1. Describe the overall and holistic structure involved in facilitating and regulating public
human settlements in the developing South Africa. (15)
2. Describe the nature and extent of effective stakeholder representation and participation
in the following:
a. The development and facilitation of a public housing project such as the relocation
of Bekkersdal
b. Informal settlement residents of the dangerous undermined and dolomite area near
Westonaria (25)
3. Write short explanatory notes on the nature of residential accommodation, tenure op-
tions, subsidised affordable housing and suitable location as products of effective human
settlements policy in South Africa. (25)

3.8 REFERENCE LIST

Cortemiglia, A. 2006. Involving informally housed communities in shaping local government policies aimed
at poverty alleviation: a South African perspective. PhD of Literature and Philosophy, UNISA.
DEFINITION. No date. Definition of public administration. Available at: http://wps.ablongman.
com/wps/media/objects/270/276644/IM.doc (accessed on 11 August 2014).
Department of Housing (DoH). 2000. National Housing Code. Pretoria: DoH.
Department Human Settlements. 2014. Historical development. Available at: http://www.dhs.gov.
za/ (accessed on 18 April 2014).
Department of Public Service Administration (DPSA). 2013. Organogram prior to 2009. Preto-
ria: DPSA.
Department of Public Service Administration (DPSA). 2014. Organogram since 2009. Pretoria:
DPSA.
Diedericks, M. 2013. A proposed water sector plan for the Dr Kenneth Kaunda District Municipality.
Potchefstroom: NWU (DPhil).

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Estate Agency Affairs Board (EAAB). No date. Homepage. Available at: http://www.eaab.org.
za/ (accessed on 15 July 2014).
Fourie, D. 2006. Analysis of the utilisation of public private partnerships in public financial
management. Journal of Public Administration, Vol 41, I No 4.1:925–935.
Gardner, D. 2003. Getting South Africans under shelter: an overview of the South African housing sector.
Published under Housing Finance Resource Programme funded by an Urban Institute Pro-
gramme of the USAID. Johannesburg: Wits Press.
Global Water Partnership (GWP). 2012. IWRM. Available at: http://www.gwp. org/en/The-
Challenge/What-is-IW RM/IW RM-Principles/(accessed on 27 May 2014).
Housing Development Agency (HDA). 2014. Who we are. Available at: http://www. thehda.co.
za/content/page/who-we-are (accessed on 21 July 2014).
Keller, A. 2014. Pop-up houses improve South African slums. Available at: https://www. youtube.
com/watch?v=p_YgOQp2uVM(accessed on 27 June 2014).
Knight, R. 2001. Housing in South Africa. Available at: http://richardknight. homestead. com/
files/sisahousing.htm(accessed on 5 August 2014).
National Home Builders Registration Council (NHBRC). 2013. About us.Available at: http://
www.nhbrc.org.za/index.php/about (accessed on 21 April 2014).
National Housing Finance Corporation (NHFC). 2014. Who are we? Available at: http://www.
nhfc.co.za/ (accessed on 16 June 2014).
National Urban Reconstruction and Housing Agency (NURCHA). No date. Home page.Avail-
able at: http://www.nurcha.co.za/about/about-us.html (accessed on 3 July 2014).
Nealer, EJ, Naude, M & Bain, E. 2013. Assignment writing: the smart way!Potchefstroom: Ivyline
Technologies.
Phago, KG. 2010. Effects of the development and implementation of the national Public Housing policy in
South Africa with specific reference to the Gauteng Province. Pretoria: UNISA (DAdmin).
Pycroft, C. 1996. Local government in the New South Africa. Public Administration and Develop-
ment, 16:233–245.
Republic of South Africa (RSA). 1994. White Paper on Housing: a New Housing Policy and Strategy
for South Africa. Pretoria: Government Printers.
Republic of South Africa (RSA). 1996. Constitution of the Republic of South Africa, Act 108
of 1996. Pretoria: Government Printers.
Republic of South Africa (RSA). 1997. Housing Act, Act 107 of 1997. Pretoria: Government
Printers.
Republic of South Africa (RSA). 2000. National Housing Code. Pretoria: Government Printers.
Rural Housing Loan Fund (RHLF). 2010. Home page. Available at: http://www.rhlf.co.za/
(accessed on 8 July 2014).
Social Housing Regulatory Authority (SHRA). 2010. Available at: http://www. shra. org. za/
about-us/legislative-mandate (accessed on 22 July 2014).

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South Africa Government Online. 2014. Housing. Available at: http://www.gov.za/node/82

(accessed on 9 May 2014).
Thubelisha Homes. 2005. Thubelisha Homes: your key to a new beginning, we make difference in people's
lives.Johannesburg: Thubelisha.
United Nations Conference on Human Settlements (UNCHS). 1996. NGLS Handbook.Avail-
able at: http://www.un-ngls.org/orf/documents/publications.en/ngls.handbook/a13unchs.
htm (accessed on 4 August 2014).
Van der Waldt, G (ed), Khalo, T, Nealer, EJ, Phutiagae, K, Van der Walt, C, Van Niekerk, D &
Venter, A. 2014. Municipal management: serving the people. Claremont: Juta and Company Ltd.
Zack, T & Charlton, S. 2003. Better off, but ... beneficiaries' perceptions of the government's Housing Sub-
sidy Scheme.Johannesburg: Housing Finance Resource Programme.

48
Learning unit 4
Funding options for social housing Learningunit4

LEARNING OUTCOMES

After you have completed this unit, you should be able to:
● discuss the principles and values for funding and financing in the social housing sector
● explain the purpose of the following funding programmes:
− The Breaking New Ground Plan
− Affordable Rental Housing programme
− Community Residential Unit Programme
− Finance Linked Individual Subsidy Programme

● describe the purpose of the following funding institutions:

− National Home Builders Registration Council
− National Housing Finance Corporation
− National Urban Reconstruction and Housing Agency
− Social Housing Regulatory Authority
− Housing Development Agency
− SERVCON Housing Solutions
− Thubelisha Homes

● identify and describe the following social housing subsidies:

− Farm resident Subsidy
− Individual Housing Subsidy
− Institutional Housing Subsidy
− Rural Subsidy: Communal Land Rights
− Consolidation Housing Subsidy
− Subsidies for People With Disabilities
− Enhanced Extended Discount Benefit Scheme

4.1 INTRODUCTION
The formulation of South Africa's social housing funding initiatives commenced before the
democratic elections in 1994 with the founding of the National Housing Forum in 1992. This
forum was a multi-party, non-governmental negotiating body comprising 19 members from
the private business sector, the community, government, development organisations and
selected political parties. The emphasis of all activities and responsibilities of the National
Housing Forum was on shelter provision for the poor. The forum’s objectives were, among
others, to address historical imbalances in respect of social housing with particular focus on
disadvantaged communities, and to facilitate access to commercial services, such as subsidies
and a variety of other housing funding options (Tomlinson 2001:8).
Following President Jacob Zuma’s proclamation in 2009 to change the National Department
of Housing (DoH) to the Department of Human Settlements (DHS), the focus shifted from
housing being just a roof over people’s heads, to providing sustainable human settlements
where people can work, play and have access to services required for their day to day living.
Between 1994 and June 2010, government built over 2,7 million homes for South Africans. In
2010, government spend close to R15 billion on housing through the provision of housing

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LEARNING UNIT 4: FUNDING OPTIONS FOR SOCIAL HOUSING

grants. Government also upgraded many of the informal settlements through funding and
financing programmes to improve the conditions of those living there (Burger 2011:294).
During 2013 and 2014, the government continued to support and find better solutions for
concerns about affordability through affordable renting and other funding programmes, such
as the:
● Comprehensive Housing Plan for the Development of Integrated Sustainable Human
Settlements
● Affordable Rental Housing Programme
● Community Residential Unit Programme
● Finance-linked Individual Subsidy Programme
All houses constructed or upgraded though the government’s funding programmes have to
comply with a set of minimum standards, as adopted by the Minister of Housing in 1999
(Department of Human Settlements 2014a:1). The principles for funding and financing social
housing, as well as the national norms and standards will be described in the following
sections, before we will give attention to leading funding and financing programmes.

4.2 PRINCIPLES FOR SOCIAL HOUSING FUNDING

Funding and financing in the housing sector is not just about building houses for the poor; it
is also about providing good quality and affordable rental accommodation, urban
restructuring, and creating sustainable human settlements. For these reasons, the human
settlements sector in South Africa is based on an outcomes approach that focuses on
achieving real improvements in the life of all South Africans within the legislative framework
described in the previous study unit (Social Housing Regulatory Authority 2010).
The government’s outcomes approach with regard to the
funding and financing of human settlements, is mainly based
on the principles of:
● community decision-making
● community contributions
● public and private partnerships
Underlying values to the above-mentioned principles are:
● the understanding of and responsiveness to the needs of
vulnerable groups such as women, the youth, the elderly,
disabled persons and children
● encouragement of communities to actively contribute and
participate in the housing development process
● assessing partnerships between the community and various non-government organisations
as a critical component in the transfer of skills and expertise to the community
The following table summarises the key outputs in the housing sector, as published on the
official website of the DHS, http://www. dhs. gov. za, as accessed on 21 May 2014
(Department of Human Settlements 2014b):

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 LEARNING UNIT 4: Funding options for social housing

OUTPUT
OUTPUT 1 ● Accelerated delivery of housing opportunities
OUTPUT 2 ● Access to basic services
OUTPUT 3 ● Efficient utilisation of land for human settlements development
OUTPUT 4 ● Improved property market

4.2.1 National norms and standards

In 1999, the Minister of Housing introduced the national
norms and standards for the construction of stand-alone
houses. The national norms and standards are in line with the
National Builders Regulation (NBR) and the rules of the
National Home Builders Registration Council (NHBRC). All
houses constructed through social housing funding must
comply with minimum norms and standards, such as sanitation,
storm water drainage, and water (Department of Human
Settlements 2014a:1).
All houses built by contractors must register with the NHBRC
to activate a five-year warranty against structural failure of the house. NHBRC inspections are
designed to mitigate building risks for the consumers and to protect them against poor
workmanship during construction. In cases where a NHBRC inspector identifies a deviation
from its building guidelines, a non-compliance certificate will be issued to the builder. The
builder will be obligated to rectify such non-compliance within a given time frame. If the
builder is then unable or unwilling to rectify it, the NHBRC has the mandate to stop
construction and undertake disciplinary action against the builder (National Home Builders
Registration Council 2013).

ACTIVITY 1: PRINCIPLES FOR SOCIAL HOUSING FUNDING

Study the section on the principles for social housing funding carefully before doing the
following knowledge assessment.
● What is meant by an outcomes approach?
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
● Write down the principles on which the government based its approach with regard to
the funding and financing of human settlements.
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
● In your own words, briefly describe the underlying values to the principles on which the
government based its approach for funding human settlements.
...........................................................................................................................................
...........................................................................................................................................

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LEARNING UNIT 4: FUNDING OPTIONS FOR SOCIAL HOUSING

...........................................................................................................................................
...........................................................................................................................................

4.3 AN INTRODUCTION TO HUMAN SETTLEMENTS UPGRADING

The government is relying on a range of funding options, for
example, individual and institutional subsidies, and subsidies
for people with disabilities; as well as on the establishment of
public housing funding institutions, to build and upgrade
sustainable human settlements. Before we explain essential
social housing funding institutions and options, we will first
look at the following funding programmes implemented by the
DHS that will be briefly explained in this section. These
include the:
Comprehensive Housing Plan for the Development of
Integrated Sustainable Human Settlements
● Affordable Rental Housing Programme
● Community Residential Unit Programme
● Finance-linked Individual Subsidy Programme
The Comprehensive Plan for Sustainable Development of Human Settlements was adopted
in August 2004.

4.3.1 Breaking New Ground Plan

The Comprehensive Plan for Sustainable Development of Human Settlements, also known as
the Breaking New Ground Plan, was adopted by the DoH after approval by Cabinet to
address challenges relating to changing and growing housing demands (Department of
Housing 2004:7). By introducing the Breaking New Ground Plan, government aimed to:
● break the barriers between the formal housing market and the informal market
● move beyond the dominant production of single houses on single plots in distant locations
● emphasise the role of housing delivery in poverty alleviation through access to subsidised
property
● encourage stronger relationships with key stakeholders in the private and non-governmen-
tal sector
● eradicate informal settlements in South Africa in the shortest possible time
With regard to the provision of housing finance, the Breaking New Ground Plan promotes
the development of low-cost housing, medium-density accommodation and rental housing.
The plan incorporates the following principles:
● integration of subsidised, rental and bonded housing
● provision of facilities such as schools, clinics and engineering services
● combination of different housing densities and types, ranging from single-stand units to
double-storey units and row houses
In addition to the above, the Breaking New Ground Plan also introduced the following
support to financial institutions (Department of Housing 2004:9):
● Mechanisms to overcome down-payment obstacles

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 LEARNING UNIT 4: Funding options for social housing

● Expansion of subsidies to medium-income households that earn R3 500,00 to R7 000,00

per month
● Funding for social housing
– Funding for social housing institutions (SHIs) through public-private partnerships
● New product development
– Mortgage loan products linked to savings and insurance products
● Lending transparency
– The establishment of the Office of Disclosure under the Home Loan and Mortgage
Disclosure Act 63 of 2000

4.3.2 Affordable Rental Housing Programme

People in the low-income sector in South Africa struggle to access the limited number of
affordable rental opportunities provided by the formal market, mainly because many job
seekers in urban areas require rental accommodation. This results in an increased demand for
affordable and well-located rental accommodation. The National Rental Housing Strategy,
which was approved in 2008, addresses the challenge to rapidly increase sustainable and
affordable rental housing by providing rental housing for the poor who may live in:
● rental accommodation that is being built to accommodate low-income households
● municipal housing stock used as rental accommodation
● public sector hostels
Rental housing subsidies offer choice, mobility and opportunities to households who do not
qualify for ownership subsidy.
The Community Residential Unit Programme that will be discussed in the following section,
forms part of the Affordable Rental Housing Programme of the DHS (Department of
Human Settlements 2014c:353).

Community Residential Unit Programme

The Community Residential Unit (CRU) Programme aims to facilitate the provision of secure,
stable rental tenure for lower income individuals and households through grants for
municipalities and provincial departments that own and administer rental units, such as
hostels (Department of Human Settlements 2014c:353). The CRU Programme covers:
● public hostels owned by provincial housing departments and municipalities
● hostels that have both private and public ownership
● public housing stock that cannot be transferred and has to be managed as rental
accommodation
● post-1994 public residential accommodation owned by provincial housing departments
and municipalities
● neglected and dysfunctional buildings

4.3.3 Finance-linked Individual Subsidy Programme

It will become clear that the focus of the government’s housing policy is focused on the
poorest citizens of South Africa. However, funding is also available for low-income and
middle-income citizens through the Finance-linked Individual Subsidy Programme (FLISP)

53
LEARNING UNIT 4: FUNDING OPTIONS FOR SOCIAL HOUSING

that addresses the gap market that is regarded by banks as high risk. The FLISP Programme
target public servants and private sector workers who are first-time home owners. This
programme reduces the initial mortgage amount, makes monthly repayments to banks more
affordable. The FLISP Programme also supplements shortfalls between qualifying amounts
and purchase prices (Finance-linked Individual Subsidy Programme 2014).
The following pictures show the “Our Pride” human settlement in Cape Town, Western Cape,
developed by finance-linked individual subsidy projects, better known as FLISP (Department
of Human Settlements 2014a).

ACTIVITY 2: HUMAN SETTLEMENTS UPGRADING

Study the section on human settlements upgrading carefully before doing the following
activity.
● Write down the purpose of each of the following plans, programmes or strategies as you
understand them.

● Try not to look at the descriptions provided in the study guide while doing this activity.

PLAN/STRATEGY PURPOSE/DESCRIPTION
Breaking New Ground
Plan
Community Residential
Unit Programme
National Rental Housing
Strategy
Finance-linked Individual
Subsidy Programme

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 LEARNING UNIT 4: Funding options for social housing

GENERAL FUNDING REQUIREMENTS FOR SOCIAL HOUSING

Who qualifies?
To qualify for funding, an applicant must be:
● a South African citizen
● a first-time home owner
● contractually capable
● married or habitually live together with a partner
● single and have financial dependants
● a first-time government subsidy recipient
Affordability
Generally, the following documents must accompany an application for funding:
● South African ID or passport
● copy of the offer to purchase
● proof of current residential address
● most recent salary slip, or banking statements for the last 3 to six months
● a letter from an employer
Where to apply for housing subsidy
● provincial Departments of Human Settlements
● local municipalities
(Finance-linked Individual Subsidy Programme 2014)

We will briefly describe the most important housing institutions responsible for funding and
financing social housing in the following section. In-depth analyses of these and other
funding institutions will be investigated during your second and third year of human
settlements studies.

4.4 FUNDING INSTITUTIONS

The DHS established a number of housing institutions including the National Home Builders
Registration Council, National Housing Finance Corporation, National Urban Reconstruction
and Housing Agency, Social Housing Regulatory Authority, Housing Development Agency,
SERVCON Housing Solutions and the Thubelisha Homes Project.
General functions of these funding entities are briefly listed in the following table (Moss
2003:6):

CORE FUNCTIONS OF FUNDING ENTITIES

FINANCIAL ● Funding
MANAGEMENT ● Financial administration and reporting
● Cash and cash flow management
● Investment management
PROPERTY ● Letting and tenant relations
MANAGEMENT ● Rental administration
● Maintenance and default management

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LEARNING UNIT 4: FUNDING OPTIONS FOR SOCIAL HOUSING

PROPERTY ● Financial feasibility assessment

DEVELOPMENT ● Project assembly
● Project management and quality control
STRATEGIC ● Organisational leadership
MANAGEMENT ● Risk management
● Public relations and positioning of the organisation

Refer to the previous study unit for more detail on the guiding principles and structures of
SHIs.

4.4.1 National Home Builders Registration Council

The NHBRC was established in 1998 as a regulatory body for the home building industry in
terms of the Housing Consumers Protection Measures Act 95 of 1998, as amended.
According to NHBRC, its mandate is to protect house-building consumers and to ensure that
the building industry standards and regulations are followed (National Home Builders
Registration Council 2013).
The NHBRC protects housing consumers against contractors
who deliver housing units of substandard design, do bad work
or use poor quality building materials (Owner Building 2012).
In short, the NHBRC is responsible for:
● capacitating housing consumers about their rights, duties
and obligations
● providing customer care services to all stakeholders in the
home-building industry
● promoting quality and innovative construction in the home-building industry
● promoting and maintaining ethical standards in the home-building industry.

4.4.2 National Housing Finance Corporation

The National Housing Finance Corporation (NHFC) is a
finance institution established in 1996 by the DoH to fund and
facilitate the development of affordable housing. The NHFC
has to search for new and better ways to mobilise housing
funding and financing programmes (National Housing Finance
Corporation (NHFC) 2003).
The NHFC is one of several development finance institutions
created by the South African government to improve the socio-economic challenges of the
country.
According to the Department of Human Settlements (2011d:55), the NHFC is mandated to
develop and provide:
● bridging finance for SHIs
● improved access to loan funding for SHIs
● access to guarantees for loan funding from private sector financial institutions

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 LEARNING UNIT 4: Funding options for social housing

4.4.3 National Urban Reconstruction and Housing Agency

The National Urban Reconstruction and Housing Agency (NURCHA) was established in
terms of section 3(4)(h) of the Housing Act 107 of 1997. NURCHA’s mandate is to maximise
options for financing the construction of housing (Department of Human Settlements
2014c:82). NURCHA must facilitate the flow of finance from financial institutions to low-
income housing developers by providing bridging finance to contractors (National Urban
Reconstruction and Housing Agency 2014).
The objectives of NURCHA are:
● providing programme management and support services to municipalities
● setting up and implementing programme management units in the construction sector
● deploying systems, models and tools to clients that can assist them to manage the delivery
of housing and infrastructure projects
The NURCHA’s mandate is to broaden and deepen access to affordable housing finance.

4.4.4 Social Housing Regulatory Authority

The Social Housing Regulatory Authority (SHRA) was established in August 2010 by the
Minister of Human Settlements in terms of the Social Housing Act 16 of 2008. The SHRA
contributes to the government’s vision of sustainable human settlements by addressing
structural, economic, social and spatial dysfunctionalities in the social housing sector (Social
Housing Regulatory Authority 2010).
The SHRA is responsible for:
● implementing the Social Housing Investment Programme (SHIP)
● providing an enabling environment for the growth of the social housing sector
● providing advice and support to the DHS in its development of social housing policy
● supporting provincial governments with the approval of applications by SHIs
● providing assistance with the designation of restructuring zones
● entering into agreements with provincial governments and the NHFS

Interim Social Housing Programme

The Interim Social Housing Programme (ISHP) existed from 2006 until 2010 when the
SHRA was established. The following three funding cycles were implemented over the period
of four years (Social Housing Regulatory Authority 2010):

ISHP FUNDING CYCLES

YEAR DESCRIPTION
2007 The first funding cycle comprised the following four projects:
2008 This cycle also comprised four projects:
2009 This funding cycle was more ambitious than the first two cycles because it
comprises nine projects managed by four SHIs:

4.4.5 Housing Development Agency

The Housing Development Agency (HDA) was established in 2009 with the sole mission of
fast-tracking the acquisition and release of private and publicly owned land for human

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LEARNING UNIT 4: FUNDING OPTIONS FOR SOCIAL HOUSING

settlement developments, and is accountable to the Minister of Human Settlements (Housing

Development Agency 2014). The HDA also provides expert project management services for
a variety of projects aimed at the development of human settlements (Department of Human
Settlements 2014c:83–84).

4.4.6 SERVCON Housing Solutions

SERVCON Housing Solutions was established in 1995 as a result of a joint venture between
the DoH and the Banking Council. SERVCON Housing Solutions was established in terms
of the Companies Act 61 of 1973 to provide management services with respect of pre-
identified properties on which bond repayments had ceased. SERVCON’s aim was to manage
the properties that had to be repossessed by the banks. As part of their responsibilities,
SERVCON staff visited these households to offer funding and financial options, such as
restructuring home loans. By the end of March 2000, SERVCON had completed two years of
its mandate (Sally Roe Merrill 2001:58).
In 2006, the shareholders represented by the Banking Council and the DoH parted in terms
of the agreement. However, during 2010 and 2011, SERVCON Housing Solutions continued
with the implementation of a closure plan as approved by its executive authority (Department
of Human Settlements 2014c:349–350).

4.4.7 Thubelisha Homes

The Thubelisha Homes project was established as a non-profit project to create housing stock
for the above-discussed SERVCON Housing Solutions agreement. The Thubelisha Homes
project started operating in July 2009. During 2009 and 2010, Thubelisha Homes began to
implement a close-out plan as the SERVCON Housing Solutions agreement ended in 2006.
The project management function was then transferred to the HDA. However, the
Thubelisha Homes project continued reconciling outstanding contracts during 2010 and 2011.
Outstanding legal matters were resolved and annual reports were compiled and submitted to
the relevant authorities (Department of Human Settlements 2014c:354).
In addition to housing institutions adopted by government, the South African government
also introduced subsidised housing to grant its citizens access to affordable houses. The most
important housing subsidies, as a method to upgrade the living conditions of poor people,
will be explained in the following section.

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 LEARNING UNIT 4: Funding options for social housing

ACTIVITY 3: FUNDING INSTITUTIONS

Link the following words or phrases to the applicable funding institution listed in the table
below:

● Substantiate your selection or link by providing a reason in the motivation column:

FUNDING INSTITUTION DESCRIPTIVE MOTIVATION

WORDS/PHRASE
National Home Builders Regis-
tration Council
National Housing finance
Corporation
National Urban Reconstruction
and Housing Agency
Social Housing Regulatory
Authority
Housing Development Agency
SERVCON Housing Solutions

4.5 SOCIAL HOUSING FUNDING THROUGH SUBSIDIES

Housing subsidies as funding method provide secure tenure and access to basic services and
housing to qualifying beneficiaries. Subsidies are used to finance the construction and
upgrading of houses that comply with the minimum standards and norms described in
paragraph 4.2.1 in “National norms and standards”. Houses are only transferred to the qualifying
beneficiaries after the subsidy is paid to the seller of the house (Department of Human
Settlements 2014b).

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LEARNING UNIT 4: FUNDING OPTIONS FOR SOCIAL HOUSING

In South Africa, the following prominent housing subsidies exist:

● farm resident subsidies
● an individual subsidy
● an institutional subsidy
● a consolidation subsidy
● subsidies for people with disabilities
● a discount benefit scheme
● rural subsidies
Beneficiaries of these subsidies listed above are requested to participate in all aspects of the
project, including the governance, planning, construction and maintenance of these houses.
We will briefly discuss the above-mentioned subsidies in the following sub-sections.

4.5.1 Farm Resident Housing Subsidy Programme

The National Department of Human Settlements and municipalities are responsible to
provide basic services to existing rural settlements, despite the following challenges:
● rural settlements built on farms, that is, on private property
● tension between commercial farmers and land rights legislation that benefits farm
residents
● farm workers living in dreadful conditions and are uninformed of their rights
● the affordability of farm workers to pay the cost of municipal rates and service charges
● rural municipalities that are often not in a position to effectively cope with planning and
service delivery demands
As solution to these challenges, a Farm Resident Housing Subsidy Programme was
introduced as a way to address the housing needs of people who are working and residing on
farms. In most instances, the programme is applied where farm residents are required to
reside close to their employment obligations and where the farm land is far from the nearest
town (Department of Human Settlements 2014b).
According to the DHS (Department of Human Settlements 2011a:21–23), the farm resident
housing subsidy aims to promote the development of sustainable human settlements by:
● catering for a variety of farm residents housing needs across the country
● empowering farm residents to participate in the provision of their own housing needs
● upgrading existing farm resident housing and improving tenure security
● providing secure tenure to farm workers
● promoting a healthy and safe living environment
● promoting access to social services and economic opportunities
● using local labour in developing and maintaining farm resident settlements
● encouraging sustainable spatial settlement patterns
● discouraging the development of farm residents housing that places an additional service
delivery burden on municipalities
The Farm Resident Housing Subsidy has been approved by the Minister of Housing in terms
of the provisions of section 3 of the Housing Act 107 of 1997.

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 LEARNING UNIT 4: Funding options for social housing

Policy principles for the Farm Resident Housing Subsidy

Funding available under the Farm Resident Housing Subsidy Programme is primarily used for
the upgrading of existing services and housing stock, and the building of new houses.
Applications for this subsidy are considered in the context of provincial and local planning
frameworks, for example provincial development plans and municipal Integrated
Development Plans (IDPs) (Department of Human Settlements 2011a:22). The following
aspects are taken into account when an application is considered:
● Areas where …
– workers, owing to the nature of the farming activity, are housed near to their place of
employment.
– commuting from the nearest town is not viable due to security issues.
In cases where the transfer of housing ownership to farm workers are not feasible,
consideration is given to rental housing arrangements through instruments such as the
Institutional Housing Subsidy Programme (refer to paragraph 5.3 under “Institutional Housing
Subsidy Programme”).

RURAL HOUSING LOAN FUND

Long before the Farm Worker Housing Subsidy has been adopted in 2011, the Rural Hous-
ing Loan Fund (RHLF) was set up in 1996 by the DoH. The Farm Worker Housing Subsidy,
as a finance institution, has been mandated to enable low-income rural earners to access af-
fordable small loans. The RHLF facilitates microloans through housing finance lenders to
individual borrowers throughout rural areas in South Africa (Rural Housing Loan Fund
2010).

The Rural Housing Subsidy Programme only applies in areas of communal tenure, and
requires that tenure rights be confirmed through processes prescribed by the Minister of
Rural Development and Land Reform.

4.5.2 Individual Housing Subsidy Programme

The Individual Housing Subsidy Programme provides access to State assistance where
households wish to acquire existing houses through approved mortgage loans. These
properties are generally available in the secondary housing market. In addition to credit-linked
subsidies, non-credit-linked subsidy applications are considered when applicants want to
purchase existing residential properties.
Persons who have acquired vacant stands without State assistance and who need assistance
with the construction of a house may also apply for an individual subsidy. Individual subsidies
are available to qualifying households on a first come first serve basis and may be credit linked
or non-credit linked (Department of Human Settlements 2014b).

Policy principles for an individual subsidy

The Individual Housing Subsidy Programme incorporates the following principles
(Department of Human Settlements 2011b:13):
● Individual subsidies are available to beneficiaries wishing to acquire residential properties
as registered owners.

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LEARNING UNIT 4: FUNDING OPTIONS FOR SOCIAL HOUSING

● Individual subsidies are, in addition to qualifying households, also used by small to me-
dium-sized house construction projects.
● Credit-linked subsidies are paid to the financial institution once the subsidy application has
been approved.
● Non-credit-linked subsidies are administered by the provincial Members of Executive
Councils (MECs).
● The awarding of individual subsidies is subject to the availability of funds.

4.5.3 Institutional Housing Subsidy Programme

By now, you should have noticed that government is committed to the objective of
materialising the right of every South African citizen to adequate housing. One of the
methods to reach the government’s objectives, is the Institutional Housing Subsidy
Programme that allows organisations to access subsidies to provide housing on a collective
basis. This subsidy programme enables housing institutions to create affordable housing for
beneficiaries to live in subsidised residential properties (Moss 2003:4).
Institutional subsidies are specifically targeted at housing institutions that will provide tenure
arrangements alternative to immediate ownership, for example, rental, instalment sale or
cooperative tenure arrangements, to qualifying subsidy beneficiaries. The main objective of
institutional subsidies is to provide capital to housing institutions for the provision and
maintenance of affordable rental housing. Generally, tenants are actively involved in the
administration and management of the rental stock, and they may apply for ownership should
they wish to do so (Department of Human Settlements 2011c:10).

Policy principles for an institutional subsidy

The policy principles for institutional subsidies are as follows:
● Subsidies are allocated to approved and accredited housing institutions to develop and
manage rental housing stock.
● Housing units developed with the capital provided through this programme may not be
disposed of. When qualifying beneficiaries vacate their units, they must be replaced by oth-
er qualifying beneficiaries.
● To ensure the focus on affordable rental housing, housing institutions may not conduct
any business activity other than the provision of rental housing.

4.5.4 Rural Subsidy: Communal Land Rights

The Rural Subsidy Programme is available to beneficiaries who only enjoy functional tenure
rights to the land they occupy. This land is normally in rural areas and belongs to the State.
Generally, the land is governed by traditional authorities. Rural subsidies are only available on
a project basis and beneficiaries are supported by implementing agents (Department of
Human Settlements 2014b).
It is a prerequisite for the allocation of subsidies under this programme that a beneficiary
community member provides proof of uncontested land tenure rights (Department of
Human Settlements 2011e:32).

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 LEARNING UNIT 4: Funding options for social housing

Beneficiaries of rural subsidies have the right to decide how to use their subsidies, that is:
● for service provision
● building of houses
● building a combination of houses

4.5.5 Consolidation Housing Subsidy Programme

Before 1994, a number of households already received serviced sites in terms of state housing
schemes. The Consolidation Housing Subsidy Programme is available to beneficiaries who
have already received assistance through government to acquire a serviced residential site
under the pre-1994 housing scheme (Department of Human Settlements 2011e:35).

4.5.6 Other subsidies

The main features of two more types of subsidies are briefly described in the following table:

HOUSING SUBSIDIES
SUBSIDIES FOR According to the Department of Human Settlements, 2014a, peo-
PEOPLE WITH ple with disabilities who qualify for a housing subsidy receive
DISABILITIES additional amounts to improve their houses with special additions,
such as:
● paving and ramps to their doors
● grab rails in bathrooms
● visible door bells for the deaf
ENHANCED The policy framework and implementation guidelines for the En-
EXTENDED hanced Extended Discount Benefit Scheme were formulated to
DISCOUNT administer the transfer of pre-1994 housing stock to qualifying oc-
BENEFIT cupants (Department of Human Settlements 2011e:37).
SCHEME This scheme promotes home ownership among tenants of state fi-
nanced rental stock, including formal housing and serviced sites.
The scheme is only available to beneficiaries who took occupation
of such rented houses before 15 March 1991 (Department of Hu-
man Settlements 2014b).

ACTIVITY 4: FUNDING OPTIONS

Read the section about social housing funding through subsidies. Then complete the
activity below.

Use the table below to:

● identify the description in column 2 that best describes the term in column 1

● write down, in the third column, the letter that corresponds with the appropriate term:

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LEARNING UNIT 4: FUNDING OPTIONS FOR SOCIAL HOUSING

COLUMN 1 COLUMN 2 COLUMN

(E.G. A2
OR B7)
A Rural Housing Loan Fund 1 Addresses the housing needs of
people who are working and re-
siding on farms.
B Enhanced Extended Dis- 2 Allows organisations to access
count Benefit Scheme subsidies to provide housing on
a collective basis.
C Rural Subsidy 3 Available to improve houses with
special additions, such as and
ramps to doors.
D Consolidation Housing 4 Non-credit-linked subsidy appli-
Subsidy cations are considered.
E Farm Resident Housing 5 Facilities micro-loans to individu-
Subsidy al borrowers throughout rural
areas in South Africa.
F Institutional Housing 6 Available to benefisiaries who
Subsidy have received assistance under
the pre-1994 housing scheme.
G Individual Housing Subsidy 7 Available to beneficiaries who
only enjoy functional tenure
rights to the land they occupy.
H Subsidies for People With 8 Administer the transfer of pre-
Disabilities 1994 housing stock to qualifying
occupants.

4.6 SUMMARY
What funding options are available for social housing? In this study unit, we saw that the
government made a variety of funding options available through subsidies to individuals,
households and SHIs, such as:
● Farm Resident Subsidy
● Individual Housing Subsidy
● Institutional Housing Subsidy
● Rural Subsidy: Communal Land Rights
● Consolidation Housing Subsidy
● Subsidies for People With Disabilities
● Enhanced Extended Discount Benefit Scheme
It appears, however, that the government is also involved in different funding institutions.

4.7 SELF-EVALUATION QUESTIONS

Test your knowledge of and insight into this study unit by answering the following questions:
1. Name the principles and underlying values for social housing funding.
2. Describe the aim of the Breaking New Ground Plan.
3. What support is provided to financial institutions by the Breaking New Ground Plan?
4. Briefly describe the challenge relating to affordable rental housing in urban areas.

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 LEARNING UNIT 4: Funding options for social housing

5. What types of property is covered by the Community Residential Unit (CRU)

programme?
6. What is meant by the acronym FLSIP?
7. List the responsibilities of the NHBRC.
8. Describe the mandate of the National Housing Finance Corporation.
9. What are the objectives of the National Urban Reconstruction and Housing Agency
(NURCHA)?
10. Explain in a paragraph the aim and responsibilities of SERVCON Housing Solutions.
11. Describe the purpose of each of the following housing subsidies:
● farm resident subsidies
● individual subsidies
● institutional subsidies
● consolidation subsidies
● subsidies for people with disabilities
● a discount benefit scheme
● rural subsidies

12. Explain the current challenges in existing rural settlements.

13. What policy principles are incorporated in the Individual Housing Subsidy Programme?
14. What type of housing institutions are specifically targeted through institutional
subsidies?
15. Who may benefit from the following programmes:
● Rural Subsidy
● Consolidation Housing Subsidy

16. List the main features of the following subsidies:

● Subsidies for People with Disabilities
● Enhanced Extended Discount Benefit Scheme

4.8 REFERENCE LIST

Burger, D. 2011, "Government Communication and Information System", South Africa Yearbook
2010/2011.
Department of Housing. 2004. Breaking new ground: a comprehensive plan for the development of sus-
tainable human settlements. Policy document. Republic of South Africa, Pretoria.
Department of Human Settlements 2014a. Human settlements: programmes and subsidies (Homepage
of Department of Human Settlements). Available at: http://www.dhs.gov.za/sites/default/files/
documents/publications/ human_settlements_programmes_and_subsidies. pdf (accessed
on 28 March 2014).
Department of Human Settlements 2014b. Recent projects (Homepage of Department of Hu-
man Settlements). Available at: http://www.dhs.gov.za (accessed on 12 May 2014).
Department of Human Settlements 2014c, Vote 31, Annual Report for the year ended 31 March
2013 (RP165/2013). Government Printers, Pretoria.
Department of Human Settlements 2011a. National Housing Code: Farm Resident Subsidies
[Homepage of Department of Human Settlements]. Available at: http://www.dhs.gov.za/
sites/default/files/documents/national_ housing_2009/5_Rural_Interventions/3%20Vol%
205%20Farm%20Resident%20Subsidies.pdf (accessed on 16 May 2014).

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LEARNING UNIT 4: FUNDING OPTIONS FOR SOCIAL HOUSING

Department of Human Settlements 2011b. National Housing Code: Individual Subsidy (Homepage
of Department of Human Settlements). Available at: http://www.dhs.gov.za/sites/default/
files/documents/national_ housing_2009/3_Financial_Interventions/3% 20% 20Vol %
203%20Part%203%20Individual%20Subsidies.pdf (accessed on 16 May 2014).
Department of Human Settlements 2011c. National Housing Code: Institutional Subsidy (Home-
page of Department of Human Settlements). Available at: http://www. dhs. gov. za/sites/
default/files/documents/national_ housing_2009/6_Social_Rental_Interventions/2%
20Vol%206%20Institutional%20Subsidies.pdf (accessed on 16 May 2014).
Department of Human Settlements 2011d. National Housing Code: Part 3, Social Housing Policy
(Homepage of Department of Human Settlements). Available at: http://www.dhs.gov.za/
sites/default/files/documents/national_housing_2009/6_Social_Rental_Interventions/3%
20Vol%206%20Social%20Housing%20Policy.pdf (accessed on 15 May 2014).
Department of Human Settlements 2011e. Simplified guide to the National Housing Code (Guide
document edn). Department of Human Settlements, Pretoria.
Estate Agency Affairs Board. 2014. Strategic objectives (Homepage of EAAB). Available at:
http://www.eaab.org.za/about_us/strategic_objectives (accessed on 9 May 2014).
Finance Linked Individual Subsidy Programme. 2014. How do I qualify? (Homepage of FLISP).
Available at: http://www.flisp.co.za/index.php/how-to-start/how-do-i- qualify (accessed on
18 March 2014).
Housing Development Agency. 2014. What is the HDA? (Homepage of had). Available at:
http://www.thehda.co.za/ (accessed on 8 May 2014).
Moss, V. 2003. Understanding the reasons to the causes of defaults in the social housing sec-
tor of South Africa. Housing Finance International, vol 18, no 1:20–26.
National Home Builders Registration Council. 2013. Services rendered by the NHBRC (Home-
page of NHBRC). Available at: http://www.nhbrc.org.za/ (accessed on 18 March 2014).
National Housing Finance Corporation (NHFC). 2003. Funding programs (Homepage of
NHFC). Available at: http://www.nhfc.co.za/ (accessed on 20 March 2014).
National Urban Reconstruction and Housing Agency. 2014. Construction finance and programme
management (Homepage of NURCHA). Available at: http://www.nurcha.co.za/ (accessed on
12 May 2014).
Owner Building. 2012. National Home Builders Registration Council (NHBRC) (Homepage of
Owner Building). Available at: http://www. ownerbuilding. co. za/nhbrc/ (accessed on 12
May 2014).
Rural Housing Loan Fund. 2010. Our objectives (Homepage of RHLF). Available at: http://
www.rhlf.co.za/our_objectives.php (accessed on 12 May 2014).
Sally Roe Merrill. 2001. Low- and moderate-income housing finance in South Africa: making
progress in a troubled environment, Housing Finance International, vol 15, no 3:51–64.
Social Housing Regulatory Authority. 2010. Investment programmes and funded projects (Homepage
of SHRA). Available at: http://www.shra.org.za/ (accessed on 15 May 2014).

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 LEARNING UNIT 4: Funding options for social housing

Tomlinson, MR. 2001. New housing delivery model: the presidential job summit housing pilot
project, Housing Finance International, vol 16, no 2:24–29.

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APPENDIX 1: GLOSSARY
Housing institution is a legal entity formed with the aim of acquiring, develop-
ing and holding immovable property stock for occupation
by subsidy beneficiaries
Social housing means housing provided by local authorities, local govern-
ment and housing associations
Human settlements
Enhanced People’s Housing is a strategy by which communities are supported to build
Process (ePHP) their own houses and it involves the establishment of in-
stitutions and organisations that support communities
who are unable to make any monetary contribution to-
wards their housing needs through savings, or by
accessing housing finance
Innovation means developing new ways or methods of tackling the
human settlements challenges
Housing demand is a market-driven concept which relates to the type and
number of houses that households will choose to occupy
based on their ability to pay and also on preference
Informal settlements are areas where housing units have been constructed in an
urban or peri-urban setting without official or legal appro-
val from relevant authorities
Sustainability means the capacity or ability of an intervention to be
maintained
Public participation is the voluntary involvement of people in making and im-
plementing all decisions directly affecting their lives and
this also entails the activities undertaken by communities
with or without outside assistance, to improve their living
conditions
Affordability in terms of housing relates to the financial ability of peo-
ple to access adequate housing

68
APPENDIX 2: GLOSSARY IN
ISIZULU
Housing institution is a legal entity formed with the aim of acquiring, develop-
ing and holding immovable property stock for occupation
by subsidy beneficiaries
Isikhungo sezindlu yisikhungo sangokomthetho esakhiwe ngenhloso yokuthi
sithole, sithuthukise futhi sikwazi ukubamba izindlu ukuze
zigcine zitholwe yilabo abayizindlalifa zokuthi bazithole
Social housing means housing provided by local authorities, local govern-
ment and housing associations
Izindlu zomphakathi kusho izindlu ezihlinzekwa umasipala, uhulumeni wezin-
dawo kanye nezinhlangano zezezindlu
Human settlements
Ukuhlaliswa kwabantu
Enhanced People’s Housing is a strategy by which communities are supported to build
Process (ePHP) their own houses and it involves the establishment of in-
stitutions and organisations that support communities
who are unable to make any monetary contribution to-
wards their housing needs through savings, or by
accessing housing finance
Uhlelo olwaziwa ngokuthi yicebo lapho khona imiphakathi itholwa ukwesekwa kho-
yi-Enhanced People’s Hous- na ukuze ikwazi ukuzakhela izindlu zayo kanti lokhu
ing Process (ePHP) kufaka phakathi ukusungulwa kwezikhungo kanye nezinh-
langano ezeseka imiphakathi esuke ingakwazi
ukuzikhokhela yona ngesingayo ukuthi izakhele izindlu
zayo ngokuthatha izimali ebizongile noma ngokuthi yebo-
lekwe imali yokuthenga imizi
Innovation of tackling the human settlements challenges
Ukuqala kabusha kusho ukusungula izindlela ezintsha zokubhekana nezinse-
lelo zezindawo zokuhlaliswa kwabantu
Housing demand is a market-driven concept which relates to the type and
number of houses that households will choose to occupy
based on their ability to pay and also on preference
Isidingo sezindlu yitemu eliphushwa yizimakethe kanti limayelana nohlobo
kanye nenani lezindlu eliyokhethwa ngabantu ukuthi bah-
lale kuzo kuye ngamandla abo okukwazi ukuzikhokhela
kanye nokuzikhetha kwabo
Informal settlements are areas where housing units have been constructed in an
urban or peri-urban setting without official or legal appro-
val from relevant authorities

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APPENDIX 2: GLOSSARY IN ISIZULU

Imijondolo/imikhukhu kusho izindawo lapho kwakhiwe khona izindawo zokuhla-

la abantu, imvamisa kuba sendaweni yasedolobheni noma
eduze nedolobha, kanti lokhu imvamisa kwenziwa nga-
phandle kwemvume evela kubantu abaphethe kuleyo
ndawo
Sustainability means the capacity or ability of an intervention to be
maintained
Ukugcineka kusho amandla noma ukukwazi ukuqhubeka nokugcina
uhlelo lokungenelela lusebenza lungamile
Public participation is the voluntary involvement of people in making and im-
plementing all decisions directly affecting their lives and
this also entails the activities undertaken by communities
with or without outside assistance, to improve their living
conditions
Ukubambaiqhaza kusho ukuhlanganyela kwabantu ngokuzithandela nango-
komphakathi kuzikhethela kwabo ekwenzeni kanye nasekufezekiseni
zonke izinqumo ezithinta ngqo izimpilo zabo kanti lokhu
kuphinda kufake phakathi imisebenzi eyenziwe yimiphaka-
thi ngosizo lwangaphandle ngisho noma bengalutholanga,
kodwa konke kwenzelwa ukwenza ngcono izimo abaphila
ngaphansi kwazo
Affordability in terms of housing relates to the financial ability of peo-
ple to access adequate housing
Ukukwazi ukukhona maqondana nodaba lwezindlu lokhu kusho amandla ezezi-
mali okukwazi kwabantu ukuthola izindlu ezanele

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APPENDIX 3: GLOSSARY IN
NORTHERN SOTHO
Housing institution is a legal entity formed with the aim of acquiring, develop-
ing and holding immovable property stock for occupation
by subsidy beneficiaries
Institušene ya mafelo a ke mokgatlo wo o lego molaong wo o hlotšwego ka mai-
bodulo kemišetšo a go fihlelela, go hlabolla le go boloka thuo ya
phahlo yeo e sa šuthišegego go ba bodulo bja baomogedi
bao ba hweditšego thušo
Social housing means housing provided by local authorities, local govern-
ment and housing associations
Bodulo bjo bo fiwago batho e hlaloša gore bodulo bjo bo fiwago ke pušo ya gae, mmu-
ba meputso ya fase šo wa tikologong le mekgatlo ya mafelo a bodulo
Human settlements
Mafelo a bodulo bja batho
Enhanced People’s Housing is a strategy by which communities are supported to build
Process (ePHP) their own houses and it involves the establishment of in-
stitutions and organisations that support communities
who are unable to make any monetary contribution to-
wards their housing needs through savings, or by
accessing housing finance
Tshepedišo ye e godišitšwe- ke leano leo ka lona ditšhaba di thušwago go ikagela dintlo
go ya mafelo a bodulo bja tša bona gape e akaretša tlhagišo ya diinstitušene le mek-
batho gatlo yeo e thekgago ditšhaba tšeo di sa kgonego go dira
ditseka tša ditšhelete go dinyakwa tša bona tša dintlo ka
tšhelete ye e bolokilwego, goba go fihlelela kadimo ya
tšhelete ya go reka ntlo
Innovation means developing new ways or methods of tackling the
human settlements challenges
Thomišo e hlaloša tlhagišo ya ditsela goba mekgwa ye meswa ya go
itebanya le ditlhohlo tša mafelo a bodulo bja batho
Housing demand is a market-driven concept which relates to the type and
number of houses that households will choose to occupy
based on their ability to pay and also on preference
Nyako ya mafelo a bodulo ke kgopolo ye e hlohleleditšwego ke mebaraka ye e sepele-
lanago le mohuta le palo ya dintlo tšeo ba lapa ba ka
kgethago go dula go tšona go ya ka bokgoni bja bona bja
go lefela gape le go ya ka kgetho

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APPENDIX 3: GLOSSARY IN NORTHERN SOTHO

Informal settlements are areas where housing units have been constructed in an
urban or peri-urban setting without official or legal appro-
val from relevant authorities
Dintlo tše di agilwego ntle le ke tikologo yeo dintlo di hlomilwego tikologong ya ditoro-
tumelelo ya molao pong goba tša ka ntle ga toropo ntle le tumelelo ya
semmušo goba ya semolao go tšwa dipušong tša maleba
Sustainability means the capacity or ability of an intervention to be
maintained
Tšwetšopele e hlaloša maatla goba bokgoni bja gore tsenogare e lotwe
Public participation is the voluntary involvement of people in making and im-
plementing all decisions directly affecting their lives and
this also entails the activities undertaken by communities
with or without outside assistance, to improve their living
conditions
Kgathotema ya setšhaba kgathotema ya batho ka boithaopo go direng le go phe-
thagatša diphetho ka moka thwi tšeo di amago bophelo
bja bona gape seo se hlola ditiro tšeo di phethagatšwago
ke ditšhaba ka goba ka ntle le thušo ya go tšwa ka ntle, go
kaonafatša dikemo tša bona tša go phela.
Affordability in terms of housing relates to the financial ability of peo-
ple to access adequate housing
Rekegago go ya ka mafelo a bodulo e sepelelana le bokgoni bja
batho go ka kgona go lefela lefelo la bodulo le le lekanego

72