Presentation to the Human Settlement Portfolio Committee

Cape Town, 12th June 2009

 The Housing Development Agency (HDA) has been established to facilitate and expedite the development of large scale integrated, sustainable human settlements with all required socio-economic physical infrastructure.

MANDATE

The HDA will achieve its mandate by: • Ensuring the Availability of Land

• Effectively Structuring Projects

• Ensuring Appropriate Government Funding Flows

• Promoting an appropriate policy and regulatory framework

 

METHODOLOGY

 

LAND

HDA will ensure the availability of land for developments through:

• The establishment of an intergovernmental land inventory and information management system for human settlement planning and development

• Acquiring, and/or facilitating the acquisition and release of strategically situated land and buildings for development

• Supervising and monitoring the development of land

HDA will facilitate the effective structuring of projects and oversee their implementation through:

• Facilitation of the required capacity, technical skills and expertise at provincial and local government spheres in order to plan and implement such projects/programmes

• Coordination of land release, planning and funding for acceleration of the development of large scale human settlement developments and/or programmes

• Facilitation of the planning process to ensure proclamation of land for integrated human settlement

PROJECT MANAGEMENT

HDA will attempt to ensure appropriate government funding flows and subsidies for:

• Land and building acquisition• Planning and proclamation process• Bulk and internal infrastructure development• Social infrastructure development• Top structures

FUNDING

HDA will promote an appropriate policy and regulatory framework which will encourage and enable the planning and implementation of large scale, sustainable human settlement developments through cooperative inter-governmental arrangements and the active participation of the private sector.

POLICY AND REGULATION

• September 2008: Act promulgated• September 2008: Project team to drive establishment appointed

with both departmental and external members• March 2009: Official Launch

Four pilot projects announced covering a potential 100,00 Units with a total investment of

approximately R7 billionCEO appointed and commences part time employmentIntergovernmental Protocols negotiated with

KZN/ Ethekwini; Northern Cape Province; Limpopo Province and Lephalale Local Authority; Gauteng

and City of JohannesburgAgreement to transfer land and buildings from Servcon to HDA. Four buildings will be

transferred to Johannesburg Housing Company

THE FIRST HUNDRED DAYS

• March 2009: Treasury approves HDA as a section 3A public entity• April 2009: 10 member Board gazetted

CFO commences full time employment; bank accounts opened; NDoHS transfers first tranche of operational funding; R972 million Capital Funding for pilot

projects approved to provinces; Land Sale Agreement concluded with Western Cape Department of Public Works and Land Availability Agreement concluded with Western Cape Department of Local Government and Housing

• May 2009: CEO commences full time employment• June 2009: General Managers for Intergovernmental Relations

and for Projects and Programmes commence full time employment; Discussions commence on arrangements

for take over of the N2 Gateway and Zanemvula Projects from Thubelisha Homes as of 1st August 2009.

THE FIRST HUNDRED DAYS CONT:

HDA currently has rights to 161 parcels of land totalling approximately 5000 hectares. The land is subject to an audit, valuation and feasibility study.

LAND ACQUISITION

OPERATIONAL GRANT

SUMMARISED INCOME STATEMENT: 2009/2010 – 2011/2012

Description March 2010R

March 2011R

March 2010R

Revenue 57 500 000.00 81 593 999.00 104 100 000.00Grants: National Government 49 650 000.00 69 300 000.00 89 100 000.00Interest Income 7 850 000.00 12 293 999.00 15 000 000.00

Expenditure 57 500 000.00 81 593 999.00 104 100 000.00

Planning & Liaison 9 121 200.00 13 708 336.00 14 474 155.00Project Management 16 780 000.00 24 969 000.00 44 411 007.00

Office Costs 11 978 800.00 13 418 333.00 14387 589.00Salaries & Emoluments 19 620 000.00 29 498 330.00 30 827 249.00

NET (SURPLUS)/DEFICIT 0.00 0.00 0.00

• Acquisition of State Owned Land

• Market Value vs Historic Cost

• Coordination with other state departments, especially around bulk servicing

• Funding Flows

• Creation of Priority Development Areas

ISSUES

Thank You