Deepening access to adequate housing, developing livable neighbourhoods in urban and rural areas and redressing the apartheid spatial development emerged as key themes that shaped robust deliberations at the inaugural meeting between Minister Mmamoloko Kubayi and Provincial MECs of Human Settlements (MINMEC) in the 7th Administration.
The meeting convened on Friday and attended by Metropolitan municipalities MMCs and the South African Local Government Association, received various reports including on sector performance on human settlements grants in provinces and municipalities, and mapped the way forward towards achievable sector priorities over the next five years.
SECTOR PERFOMANCE ON GRANTS
The Provinces and Metros performance report on their allocated Human Settlements grants for the period ending 30 June 2024 was tabled. The City of Tshwane and eThekwini Metropolitan Municipalities were commended for doing well in terms of performance on their allocated funds towards the development of sustainable and integrated human settlements that enable improved quality of household life.
As one of the four largest conditional grants provided by the Department, the Urban Settlements Development Grant (USDG), supplements the capital revenues of metropolitan municipalities in ensuring they implement infrastructure projects that promote equitable, integrated, productive, inclusive and sustainable urban development. More particularly, it expands and fast-tracks the provision of bulk infrastructure which enables the implementation of major housing projects and provision of basic services for poor communities. Overall, Metros spent 85% of the R7.6 billion USDG allocated in the last financial year.
The Department’s constant monitoring of Provinces’ and Metros’ performance of their allocated conditional grants is crucial, not only to measure performance, but also to ensure compliance and the correct use of the funds to meet targets - in line with grant conditions and approved Business Plans. The Minister indicated that poor grant expenditure performance will not be tolerated in the 7th Administration.
MEDIUM TERM DEVELOPMENT PLAN SECTOR TARGETS
The MINMEC deliberated on progress in developing a five-year human settlements sector strategy that will be the foundation upon which the seventh administration will anchor its human settlements development programmes. Central to the strategy will be the drive to create liveable neighbourhoods in both rural and urban areas and achieve spatial transformation - while increasing access to adequate housing through various programmes. Of high importance for the MINMEC was to ensure that the framework directly addresses the lived realities of communities on the ground.
The report outlined how the sector can adopt a district-wide based approach by coordinating district or metropolitan municipalities to develop one plan to implement human settlements infrastructure programmes and catalytic projects in areas identified for spatial transformation. Some of the core principles outlined expanded from the upgrading of informal settlements with focus on in-situ in habitable areas or relocations where such settlements are situated on critical infrastructure and in dangerous areas, to the provision of security of tenure and basic services, the provision of serviced sites and housing units in special circumstance and increasing access to affordable housing for various income groups that qualify for government support, as well as amplified title deeds rollout for low-income households.
Together with the transformation of the sector as pillars, all these focused principles required improved intergovernmental planning and coordination for human settlements development, while leveraging public sector investment to crowd-in private sector participation and even adapting to climate resilience infrastructure, as part of disaster response. The emphasis for the five-year framework, also speaks to improving the management of available housing stock and using them to contribute to the renewal of inner cities.
Significantly, the Department has started engagements with Treasury to see how best to earmark funds from human settlements grants to attract more investment by private sector to partner in human settlements projects.
Meanwhile, the Minister emphasized the need for a much firmer approach in dealing with the illegal occupation of land, reminding the participants that the Preventions of Illegal Eviction from Occupation of Land Act (PIE Act) is now confirmed to reside within Human Settlements.
“As we jack up system, and fast-track the pace in achieving desired outcomes, we can’t allow runaway informal settlements, it is unsustainable. These must be contained. We must prioritise our efforts in a way that makes sense because as the sector cannot be seen to be neglecting backroom dwellers in many townships and incentivizing illegal land occupants. We need to move quickly in dealing with informal settlements and put people where they are safe and create sustainable human settlements,” said Minister Kubayi.
RENT TO OWN PROPERTIES
The MINMEC discussed the rent-to-own model as an area needing attention, particularly in dealing with the pre-1994 housing stock. A deadline for March 2025 has been set for provinces to devolve these properties or rental stock and give titles to citizens - allowing them security of tenure and the freedom to refurbish these on their own. The future sustainability of CRUs was also in question, considering maintenance issues, further exasperated by the zero-collection rate. Provinces and metros are expected to make their written inputs with specific timelines into the plan by next week.
EMERGENCY HOUSING PROGRAMME
The MINMEC noted the progress on the Department’s Emergency Housing Interventions in various provinces that were affected by disasters. Since April 2023, the Western Cape has been dominated by fires resulting in provision of building materials, whereas the Eastern Cape and KwaZulu Natal provinces have a high number of destroyed mud houses that warranted the construction of Transitional Residential Units (TRUs). In total, 1483 TRUs were provided by the Department to families in the last financial year, while the National Home Builders Registration Council (NHBRC) has concluded structural assessments in 7 provinces.
To fast-track and increase the impact of the response, it was agreed that a review of the current response will be conducted such that the other spheres of government play a greater role under the leadership of the national department. This will be complemented by the utilisation of the DDM to strengthen coordination amongst the three spheres of government to service the communities more effectively.
Meanwhile, the Department has commenced with the process of appointing service providers repairing partially damaged formal houses in affected provinces as the team finalises the Emergency Housing Framework, that will incorporate the eradication of mud houses and asbestos roofs, as pronounced in the Minister’s 17th July Budget Speech. To minimise the high spend on emergencies, the sectors priorities in the next five years require emphasis on disaster preventative measures and how they will be funded.
Concerned about poor performing provinces and municipalities, the Minister said the seventh Administration must bring renewed hope to communities, urging the sector to consider permanent solutions for housing and sanitation. There was consensus that old informal settlements must be prioritised. The Minister has previously written letters requesting provinces to prioritise informal settlements established before 2005 that had been upgraded in-situ or relocated out of disaster-prone zones.
METRO BUSINESS PLANS
The MINMEC received feedback on the outcomes on assessments done on this financial year’s business plans for metros on the grants, aimed at upgrading informal settlements in partnership with communities. Almost all business plans were approved, with exceptions. The Minister had until recently turned back certain business plans which did not align to Ministerial priorities. The City of Cape Town for example, was directed to respond to informal settlements pressures of reblocking and bulk infrastructure provision for relocations of communities from danger zones.
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