Media Statement - 19 April 2011
Cape Town - Minister of Human Settlements Tokyo Sexwale unveiled his R22bn budget vote in parliament today (19 April), with great emphasis on accelerated delivery as outlined on Outcome 8. Outcome 8 is the foundation on which Sexwale signed the performance agreement with President Jacob Zuma in 2010.
Among the four outputs of Outcome 8, is the improvement of property market which translates to facilitation of access to 600 000 home loans/bonded units. By November 2010, the Department received overwhelming support in the form of proposals to implement the R1bn Guarantee from many private sector stakeholders. This fund would play an important role in helping access to home loans while providing banks with the guarantee they need.
Through consultation the department opted for the Mortgage Default Insurance (MDI) as its Core Implementation Strategy. It is envisaged that the mortgage insurance product will be available through the banks, as from April 2012.
‘I would therefore urge the National Housing Finance Corporation and the banks to accelerate delivery of affordable houses in terms of the MOU they have concluded’, said Sexwale.
Increasing the accessibility and affordability of home ownership, can help stimulate the construction sector and give birth to the much needed jobs.
‘The material suppliers are well advised to contain the cost of their products and to avoid any form of collusion which promotes anti-competitive practices,’ Sexwale said.
Also important is deracialization of residential space that will be done through two instruments a) the Social Housing Act, and b) the Estate Agency Affairs Act- under discussion between the Ministry of Trade and Industry and Ministry of Human Settlements
Through the Social Housing Act, the department has declared 75 Restructuring Zones in seven provinces, to enable the department to drive inner city development. For the 2011- 2013 MTEF period, R1.2 billion is allocated for restructuring grants through SHRA.
As from 1 April 2011, the national Human Settlements budget is allocated in an 80/20% split. 20% of the budget will be directed from national level on specific national interventions. As a start, the following projects have been identified as National Priority interventions supported from the 20% funding:
- Duncan Village - Buffalo City Eastern Cape.
- Lufereng, Sweetwaters, Khutsong and Diepsloot – Gauteng.
- Cornubia - Ethekwini KZN
- Lephalale around Medupi station - Limpopo
- Drommedaris Drakenstein – Western Cape
The investment being made in all these intervention areas, is to the tune of R886.091 in 2011/12 andR1 billion in the outer year.
For any enquiries please contact:
079 699 5145