SELECT COMMITTEE ON PUBLIC SERVICES
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SELECT COMMITTEE ON PUBLIC SERVICES 1. Servcon’s Role 2. Rightsizing 3. Performance on KPA’s 4. Issues 5. Swamp 6. Towards a New Vision 7. Draining the Swamp 8. Evictions 9. Job Creation and Community Development Project 10. HIV/AIDS 11. Institutional Approach 12. Segmentation Model
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SELECT COMMITTEE ON PUBLIC SERVICES. 1.Servcon’s Role 2.Rightsizing 3.Performance on KPA’s 4.Issues 5.Swamp 6.Towards a New Vision 7.Draining the Swamp 8.Evictions 9.Job Creation and Community Development Project 10.HIV/AIDS 11.Institutional Approach - PowerPoint PPT Presentation
Transcript of SELECT COMMITTEE ON PUBLIC SERVICES
SELECT COMMITTEE ON PUBLIC SERVICES 1. Servcon’s Role2. Rightsizing3. Performance on KPA’s4. Issues5. Swamp6. Towards a New Vision7. Draining the Swamp8. Evictions9. Job Creation and Community Development
Project10. HIV/AIDS11. Institutional Approach12. Segmentation Model
SERVCON PAYMENT NORMALISATION PROGRAMME
PRESENTATION TO SELECT COMMITTEE ON PUBLIC SERVICES IN PARLIAMENT –
CAPE TOWN
“SERVCON IS HERE TO HELP”
JUNE 2002
SERVCON’S ROLE
• Joint venture
* Department of Housing
* Banking Council
• Deals with Banks Repossessed Properties
* Cut off date 31 August 1997
• Rehabilitation programme
* Subsidised rental (13% - less than mortgage)
* Buy back option – instalment sales
* Rightsizing (Thubelisha Homes)
* Aged and disabled
• Twin Focus
* Relief for ex-owners
* Dispose of portfolio over 8 years
RIGHTSIZING
“Assistance to relocate to affordable house”• Targeted at those who cannot afford existing house
* Alternative to eviction
* Affordable interim rental
* Government pays special subsidy (relocation assistance
* Thubelisha procures alternative house
* Client relocates
* House sold back into the market
PERFORMANCE ON KPA’S• Dispose of Properties
* 14 248 (42,8%) Disposed of. (Target 41%) Resale to ex-owner 4800 Other Sales 420 Voluntarily Vacated/Vandalised 1840 Successful Eviction 1189 Other Arrangements 3825 Rightsizing 2174
• Rental Performance* Between 53% to 65% tenants pay
• “Good Book/Bad Book” Split* Good Book 59%* Bad Book 41%
ISSUES
* Payment of subsidies “in situ” in certain circumstances
* Cut of date – access to rightsizing
* New Subsidy rules – issue of contribution
* Resale of vacated properties in possession
* Environment has not “normalised”
* New Lending?
EnvironmentalConditions
Unemployment/ Poverty
PoorCommunityLeadership
THE HOUSING SWAMP
Breakdown of Law and Order / Defiance
Lack of FinancialDiscipline
Lack of Education
And Understand
ing
HIVAIDS
Structural
Defect
Unemployment/ Poverty
THE HOUSING
SWAMP
Breakdown of Law and Order / Defiance
Bridge
Trend Line
Trend Break
NEW
VISION
Towards a New Vision
EnvironmentalConditions
Unemployment/ Poverty
PoorCommunityLeadership
DRAINING THE SWAMP
Breakdown of Law and Order / Defiance
Lack of FinancialDiscipline
Lack of Education
And Understand
ing
HIVAIDS
Structural
Defect
What is needed isA Package of
Measures to address Each issue individually
But also holistically
*Create an enabling environment*Reestablish secondary market*Uplift Communities
Mission
EVICTIONS• Implemented only where:
* Occupant refuses to join* Defaults on agreement* Refuses to relocate
“All Evictions Can Be Prevented”• Status
* 6700 instructed* 2400 carried out* 560 failed (24%)
• Issues* Cooperation from police and sheriffs?* Open resistance and defiance* Evictees move back in* Difficulty to press charges
“People do come forward when evictions are successful”
JOB CREATION/COMMUNITY DEVELOPMENT PROJECTS
“Rebuilding Communities”• Support for Servcon clients trying to improve their financial circumstances• Support activities which will benefit broader community
“SERVCON CLUBS” * Networking
* Skills Training* Needs analysis * Marketing channel * Data base of skills
* Opportunities“Activities” * Computer Training
* Internet Access * Sewing & Knitting * Baking * Recycling * Vegetable Gardening
HIV/AIDS PROJECT
“Growing number of Parentless Households”
Joint venture with AIDS Consortium – USAID Grant
• Education
• Counselling
• Home Based Care
Investigating problem of AIDS (and other) orphans
“INSTITUTIONAL APPROACH TO HOUSING DELIVERY”
• Project to sell Properties in Possession* Old houses – especially occupants rightsized* Institutional Subsidies (R20 300)* New qualifying buyers* 5% Deposit* Instalment sale 10 – 12 years
“Market Potential?”
INSTITUTION APPROACH TO HOUSING
Product Price
Net Price to Beneficiary
Product Type Instalment Approx. Income
Required
R75 000 R55 000 R900 R3500
R60 000 R40 000 R660 R3000
R30 000 R10 000 R165 R1500
R20 000 NIL N/A < R1000
Based on: Interest rate of 15,50% and 10 year term
Institutional subsidies of R20 300
