A Dialogue On Partnerships For Affordable Housing And Infrastructure

Development

31th May 2012Cape Town

ContextContext Need Basis of Quantification

Number of Households

Households needing services

HH in formal houses who do not have universal access to services:

2,848,961

HH< R10,000pm (basic level of service) 2,693,395

HH> R10,000pm (high level of service) 155,566

Households needing access to housing (including services)

Total additional housing : 3,029,693

All HH in informal settlements, backyard dwellings and hostels 2,504,550

20% of HH in formal rental who purchase a new house (trade up) 525,143

Households needing access to secondary market transactions *

* Based on 2% churn per year

Total secondary transactions supported: 1,593,512

20% of HH in traditional and owned 1,438,392

4% of HH in formal rental 105,028

2% of HH in informal settlements, backyard rental and hostels 50,092

ContextContext

%% R0-R3,500R0-R3,500 R3,500-R7,000R3,500-R7,000 R7,000-R10,000R7,000-R10,000 R10,000-R15,000R10,000-R15,000 R15,000-R20,000R15,000-R20,000 R20,000+R20,000+ TotalTotal

A: Formal - owned2,595,398 880,882 415,107 522,558 308,920 1,026,420 5,749,285

21.0% 7.1% 3.4% 4.2% 2.5% 8.3% 46.4%

B: Formal - rented, plus Room/Flatlet not in backyard

1,380,830 433,093 224,180 228,985 103,018 255,611 2,625,717

11.2% 3.5% 1.8% 1.8% 0.8% 2.1% 21.2%

C: Informal settlement - regardless of whether it is owned or rented

903,349 192,439 61,254 24,060 9,991 11,664 1,202,757

7.3% 1.6% 0.5% 0.2% 0.1% 0.1% 9.7%

D: Backward dwelling - regardless of whether it is owned or rented

626,984 166,507 69,820 38,885 14,330 28,803 945,329

5.1% 1.3% 0.6% 0.3% 0.1% 0.2% 7.6%

E: Traditional dwelling - regardless of whether it is owned or rented

1,133,113 210,203 37,341 20,298 17,998 23,722 1,442,675

9.2% 1.7% 0.3% 0.2% 0.1% 0.2% 11.7%

F: Hostel181,202 108,658 53,512 7,598 1,986 3,508 356,464

1.5% 0.9% 0.4% 0.1% 0.0% 0.0% 2.9%

G: Other33,582 9,704 5,300 3,295 1,165 3,483 56,529

0.3% 0.1% 0.0% 0.0% 0.0% 0.0% 0.5%

Total 6,854,458 2,001,486 866,514 845,679 457,408 1,353,211 12,378,756

55.4% 16.2% 7.0% 6.8% 3.7% 10.9% 100.0%

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Integrated Infrastructure &Affordable Housing

Project Management

Land ID &Acquisition

DealStructuring

ProjectPackaging

Marketing& sales

RelationshipManagement

Project Finance Property Finance

Home LoansPublic Sector

• Bulk & Link Services• Social Amenities

• Mortgage finance• Instalment sales

State RelationshipsPolicy and subsidies

• Bridging loans•Term finance• Internal reticulation• House construction• Commercial

Current Initiatives Current Initiatives • Establishment of the Human Settlements Department

– Proposed Consolidation of the Development Finance Institutions in the Human Settlements Department

– Review of the Finance Linked Subsidy Programme

– Proposed introduction of a Default Insurance Programme

– Impact & Performance Evaluations & Policy Review

• Establishment of improved Development Finance Institutions within the scope of the state to finance infrastructure – IDC and DBSA initiatives

• Establishment of the Presidential Infrastructure Coordinating Commission

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Current Initiatives Current Initiatives

• Draft National Development Plan released by the National Planning Commission.

• Establishment of the Urban Settlements Development Grant to allow for bulk, link, development of serviced stands and informal settlement upgrading.

• The introduction of the “Each One, Settle One” Programme.

• “Improving the Property Market” is a key output of the Minister included in the Delivery Agreement signed with the President.

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Points of Dialogue Points of Dialogue • What is we want to address…”access to adequate housing and infrastructure in respect of

affordable housing”

• Are we addressing economic growth, household access, infrastructure development or all of the above

• Do we know what the individual requires – location, price, choice, affordability

• Demand and supply led initiatives – Striking a balance

• What does each of the stakeholders contribute and take out of implementation of the programmes.

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Points of Dialogue Points of Dialogue

• Is the current development model relevant….”individual affordable housing sectors in integrated projects”…

• Why is affordable housing not form of informal settlements upgrading programmes…Inclusion and investment in infrastructure and its catalytic effect…

• The operational costs related to housing and human settlements infrastructure does not receive attention – Cosmo City, Tsustumani Village and Olivienhoutsbosch are good practice examples to review…

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Points of Dialogue Points of Dialogue Affordable Housing

• Requires a societal response – role of state, private sector, individual and community.

• The State has a role and we need to review the current role in order to ensure that we address the required developmental need, priorities within the resource capabilities.

• Who does what – land release, planning, funding and implementation

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Thank You

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