Medium Term Strategic Plan 2011/12 to 2013/14
MARCH 2011
Structure of the strategic plan
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Recap of HDA objects and functions
Strategic overview
Legislative and policy mandates
Human settlement sector challenges: role of the HDA
HDA vision, mission and functions
Visionary goals, goal statements and strategic
objectives
• Programme and sub-programmes plans
• Institutional arrangements
• Financial aspects
Objects of the Agency
• Identify, acquire, hold, develop and release state, communal and
privately owned for residential and community purposes and for
the creation of sustainable human settlements
• Project manage housing development services for the purposes
of the creation of sustainable human settlements
• Ensure and monitor that the centrally coordinated planning and
budgeting of all infrastructure required for housing development
• Monitor the provision of all infrastructure required for housing
development
Functions of the Agency
1. Land assembly
• Identification, acquisitions, holding and release of land (state/
private/ communal)
• Processing and preparation of land development (permits/
approvals etc)
2. Project delivery support services to organs of state - provinces and
municipalities
• Informal settlements upgrading
• Project management services in human settlements development
3. Monitoring and facilitation
Vision and Mission of the Agency
Vision:
Sustainable human settlements and communities developed on
land and landed properties made available by the HDA
Mission:
A public development Agency that promotes sustainable
communities by making available well located and appropriately
planned land
Government priority and Outcome 8 alignment
According to the delivery agreement signed by the
Minister of Human Settlements:
• The HDA is directly responsible for the acquisition of
6 250 hectares of well-located and publicly-owned
land and buildings
• Provide project management services relating to:
• Assist in the upgrading of informal settlements
• Emergency housing solutions
• Incomplete (blocked) housing development
projects
Key achievements
Financial performance
• Operating within the grant provided
• Financial policies and procedures in place
• SCM - HDA compliant
• The HDA achieved a clean audit in its first financial year
2009/2010
Key achievements
IGR and Strategy Alignment
Implementation Protocols signed with:
• 5 provinces (Limpopo, Northern Cape, Western Cape, Eastern
Cape and Free State) and
• 3 municipalities (Tshwane, eThekwini and Ekurhuleni)
IGR&SA: Intergovernmental relations
Looking at land with municipal official
Signing IP with Eastern Cape
Meeting with Free State after signing IP
Introducing HDA to municipalities
Signing IP with Western Cape
Introducing HDA to municipalities
HDA Projects & Programmes
Mandated ito
Section 29
Legacy
projects
(N2,
Zanemvula)
Projects in
process
Requests from
organs of state
received to date
New projects
Based on IPs, land
portfolio & mandated
functions
Key achievements
Land Acquisitions and Management
• In excess of 33 000 hectares of well-located state land has been
identified and prioritised. This was submitted to the DPW and
DRD&LR for release - this will meet the target of 6 250 hectares
required as part of Outcome 8
• 75 hectares of land has been purchased in Bela-Bela with
funding provided by Limpopo province
• An Implementation Protocol has been signed with Free State
province and via Servcon eight Transnet-owned properties
(105.5401 hectares) are in transfer and registration stages
• The HDA undertook due diligence and assessment of the
Servcon property portfolio (transfer has not taken place as
anticipated)
• LaPsis and NaHSLI are established and operational
Enhanced Framework for the
Release of State Land to the HDA
Objectives of the Framework
The Framework proposes a seamless and efficient
procedure for the release of state-owned land for human
settlement development in order to overcome:
• Complexities
• Inefficiency
• Long red tape
• Asset management fragmentation
State land release methodology and effective
date
• Release enables HDA to prepare the land
• Secure reservation of land for Human
Settlements
• Accountant General endorses asset transfer
• Release of land may take various forms
Recommended State Land Release Framework
90 properties requested
National Department of Public Works
Land
Vested and Registered Land
a. assesses submitted property by
evaluating the request against other
requests/ interests of other departments
and entities for similar land, if any
b. commission valuation of requested
properties
c. submits request to the relevant
approving authority (Minister or Board) for
decision
Owner
Department/
Entity
Relevant
Ministers
(Completion
within 60
Days from
date of
receipt of
request)
National Department of Public Works Land
Land that is not Vested and Unregistered
Owner
Department
a. confirmation of ownership through vesting
and
and concurrence by the Minister of Rural
Department of
Development and Land Reform
Rural
b. assesses submitted property by evaluating
Development
the request against other requests/ interests
and Land
of other departments and entities for similar
Reform
land, if any c. land survey, subdivision, land
claims confirmation and Provincial Land
Disposal Committee Approval
d. commission valuation of requested
properties e. submits request to the relevant
approving authority (Minister or Board) for
decision
Relevant owner
Minister and
Minister of Rural
Development
and Land
Reform
Completion
within 180
days from the
date of receipt
of request
Rural Development and Land Reform Land
a. Verification of ownership and material encumbrances DRDLR
[National]
1 Week
b. Obtain a community resolution in support of the
transfer of land for purposes of the envisaged
development
c. Valuation of land
30 days
d. Creation of leasehold diagrams or unapproved subdivisional diagrams in the event of un-surveyed stateland in emergency situations.
e. Obtain PSLDC Recommendation for disposal (and
vesting where applicable)
Minister of Rural
Development and Land
Reform
DRDLR
Minister of Rural
[Provincial] & Development and Land
HDA
Reform
HDA
Minister of Human
Settlements
HDA
Minister of Human
Settlements
DRDLR
[Provincial]
f. Meeting with affected Executive Authorities for
DRDLR
simultaneous approval of disposal1 and signing of
[National]
whatever agreement [land availability agreement for unsurveyed land or in emergency situations; temporary
30 days
30 – 60 days
Minister of Rural
14 days
Development and Land
Reform
Minister of Rural
14 days
Development and Land
Reform
Owner
Record endorsement of the transfer of
Department
asset from Owner departments/ entity to Accountant
hda
General
Relevant
Ministers
Minister of
Finance
Completion
within 21
Days
Release and transfer of land to had
Relevant
Minister
Minister: HS
Two months
Owner
Department/
Entity
HDA
LAM: Identifying land and spatial analysis
• The HDA
undertakes spatial
analysis, to inform
land identification
• Acquisitions,
planning and
programming are
done in
collaboration with
PDHS and
municipalities
LAM: Land assembly (identification & feasibility)
Property Portfolio
Total of 9
properties
4 vacant
land
5
properties
occupied
R105 million
Current Property Portfolio
Area
Description
Property Description
FREE STATE
Size
(±Ha)
Development Purchase Valuation Rates and
Status
Price (m) Price (m) Taxes p/a
Land &
4.886
1.75
R 4.40
R 3 292.20
buildings
Bethlehem
Erf 1816 (DHC Du Plessis club)
Bethlehem
Sub 20 (of ptn 7) of erf 4049 (rest rooms)
0.39
Bloemfontein
Portions of remainder of portion 1 of farm
Bloemfontein 654 (Liquinda),
Bloemfontein
Land &
buildings
0.25
R 0.45
R 3 292.20
40.91 Vacant land
3.6
R 16.30
R 24 776.04
Portion of remainder of erf 2116 (Hamilton
nursery, Tempe Sid B
5.028 Vacant land
1.35
R 6.00
R 18 856.68
Kroonstad
Portions of Erf 5246
48.61 Vacant land
1.5
R 5.50
R 73 685.64
Kroonstad
Erf 4919 (Hostel),
2.065
Land &
buildings
1.41
R 3.30
R 13 428.84
Kroonstad
Portion of remainder of erf 229 (Heckroodt
park recreation club),
1.228
Land &
buildings
0.54
R 2.20
R 0.00
Welkom
Portions of remainder of Welkom 41 (Old
RMT Depot)
2.42
Land &
buildings
0.45
R 1.85
R 3 155.28
Vacant land
65.40
N/a
N/a
76.25
R40.00
R140 486.88
Bela-Bela
TOTAL
LIMPOPO
Portion of portion 170 and portion of
portion 5 of the farm Roodepoort number
72
467
(Erf 1Warmbad Extension 25)
177.537
FREE STATE
Area Description
Erf 1816,
Bethlehem
Property Location
Amenities
Located +- 1km from the Bethlehem CBD Schools, Churches,
along the commissioner street.
Libraries, Taxi rank.
Rent
Receivable
R 1 818.58
Rates
&Taxes
Payable
R 593.71
• Lease Status: Expired. Was fully leased to DHC Du Plessis recreational club by Transnet. Tenant interested to enter
into new lease agreement with HDA.
• Property utilisation status: Used as the sports recreational club.
• Facility Structures: Sports fields (soccer, rugby, actuary, tennis and netball), two sports club houses (tennis and
actuary), toilets, braai area, spectators viewing compound, caretakers house, recreational club (sports bar, 2 halls,
boardrooms and offices)
• Maintenance and Services Requirements: Roof repairs and painting, building structural survey and repairs.
• Estimated Maintenance and Services Costs: R100 000.00
25
Free State: Bethlehem
LIMPOPO
Area Description
Portion of portion 170
and portion of portion 5
of the farm Roodepoort
number 467; Erf1,
Warmbad Extension 25.
Bela-Bela
Property Location
Located along the Robertsons street +-2km
from Bela-bela CBD. Property is adjacent to
Sparpark township.
• Development Status: Vacant land
• Lease Status: No lease.
• Property utilisation status: Illegal settlements.
• Facility Structures: Vacant. Vegetation is trees, grass and shrubs.
• Maintenance and Services Requirements: Fire breaks.
• Estimated Maintenance and Services Costs: R 10 000.00
Amenities
Churches and
schools
Rent
Receivable
R 0.00
Rates &
Taxes
Payable
N/a
28
Limpopo: Bela Bela
Key achievements
Projects and Programmes
• N2 Gateway and Zanemvula projects stabilised and on
track – business and funding plans were developed and
presented to the respective provinces and the signing of
these agreements was concluded in 2010
• Draft policy for the Priority Housing Development Areas
(PHDA) is being developed
• Project and planning support provided to Cornubia,
Ekurhuleni, NDHS, Northern Cape province
P&P: N2 Gateway Human Settlement
Development Project
• The N2 Gateway (Cape Town) is a national priority project
involving the building of:
• fully-subsidised
• rental
• affordable bonded homes
• Seeks to create sustainable communities in designated
precincts along the N2 highway
• Aims to provide 120 000 people with 23 000 homes
• Phase 1 is nearing completion and will deliver approximately
15 000 houses. Approximately 7 000 houses built to date
Role of the HDA
The HDA was appointed in June 2009 as an implementing
agent and overall project manager to provide the following
services:
• Contract management and oversight
• Project design, feasibility and approval processing
• Project costs and budgets management
• Community liaison and communications
• Funding applications
N2 Gateway
• Moving beneficiaries
into houses in Delft
• Erecting TRAs
• Completed houses
Delft 7-9
• Building Joe Slovo
P&P: Zanemvula Informal Settlement Upgrading
and Human Settlement Project
• Zanemvula (Nelson Mandela Bay Metro) is one of government’s
flagship mega projects and aims to:
• deliver approx 10 557 houses (2 664 to date)
• in-situ upgrade 1 565 units (subject to Metro replanning)
• rectification phase one 460 (380 to date) and phase two
aims to rectify 2 500
• provide rental housing opportunities to subsidy nonqualifiers
• The project is driven by the Eastern Cape province with the HDA
as its implementing agent
Role of the HDA
The HDA is the implementing agent with overall project management
responsibility, including:
• Construction management
• Procurement and tender processes
• Establishment of site characteristics
• Project design, feasibility and approval processing
• Project costs and budgets
• Health and safety
• Communications and beneficiary management
• Submission of plans for statutory approvals
• Funding applications
Zanemvula
• Plans for Soweto-on-Sea
multi-purpose community
centre
• Building houses in Chatty
• Rectification of houses at
Soweto-on-Sea
• Party for pensioners
• Building multi-purpose
community centre
P&P: Cornubia - Mixed Use & Housing Project
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Cornubia is situated between Phoenix/Ottawa and Umhlanga
R5 billion development (mixed-use, mixed-income)
1 200 Ha of land of which 750 Ha will be developed
50 000 houses will be developed: 19 313 subsidised (by 2017)
eThekwini Metro and Tongaat Hulett signed a Cooperation and
Alignment Agreement in 2008 for release of the land
• An Implementation Protocol entered with Metro/ HDA/ KZN
PDHS
• HDA supports the project management function of the Metro
and land acquisition for the project
.
Cornubia
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The land
The location
Development plans
Constructing the bridge
A vision of the future
Key achievements
Organisational development
• Board and Board Subcommittees of the HDA in place
• Executive Management Team in place with key departments
operational
• Policies and procedures that govern the HDA operating
environment are in place
• Implementation of the strategy linked to performance
management
• Written mandate concluded between the Minister and the Board
Key statutory and regulatory challenges
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•
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Misalignment between the fiscal arrangements and the mandate
of the Agency
In some cases, sector role players view the HDA as a private
sector service provider/ consultant, which adversely impacts on
its ability to provide support in line with its legislated functions and
mandate.
More effort is needed to appropriately position the mandate, role
and functions of the HDA within the sector in order to expedite
achievement of the objects and functions of the Agency
Visionary goals and strategic objectives
Macro performance indicators
HDA Programmes
Programme 1: Strategic Management, Finance and Administration
Provides overall organisational support services to operate and function as
an organisation with a track record of quality, effective delivery and
professional service.
Key targets:
• Effective governance structure
• Clean audit
• Effective and compliant policy framework
• Effective, efficient and compliant operational structure
• Effective performance management system
HDA Programmes
Programme 2: Land Acquisitions and Management
Coordinates the identification of suitable land and landed property and facilitate
its acquisition and/or release for human settlements development. Manages
acquired property as well as undertake spatial analysis and provide geo-spatial
services
Key targets:
• 36 000 hectares of public land identified for acquisition
• 6 000 hectares of private land identified for development
• 220 development feasibility assessments
• 6 000 hectares of public land released for human settlements purposes
• 9 250 hectares of urban public land released to HDA
HDA programmes
Programme 3: Projects and Programmes
Manages projects and programmes aimed at promoting sustainable human
settlement development through various capacity and project support services to
sector stakeholders.
Key targets:
• Provide capacity support in 9 provinces to achieve human settlement targets
• Provide capacity support in 9 provinces/municipalities to achieve informal
settlement upgrading targets
• Define blocked project assistance and support framework, and emergency
housing and support framework for provinces
• Provide technical support to 20 targeted projects
• Approval of PHDA framework and regulations
HDA programmes
Programme 4: Intergovernmental Relations & Strategy Alignment
Secure key IGR relationships between the different spheres of government to
facilitate and accelerate the development of human settlements, as well as
fostering partnerships with identified sector stakeholders, concluding agreements
that allow HDA to function effectively.
Key targets:
• Approved IGR policy framework
• Outreach initiatives to improve appreciation of HDA role, mandate and functions
• Agreements and partnerships negotiated and concluded with stakeholders
• Facilitate strategy alignment with organs of state
• Facilitate HDA’s participation in fiscal planning process to ensure HDA funding
Organisation functional structure
Funding options and status thereof
Funding options as per the HDA Act
Status
Money appropriated by Parliament
Currently only operating expenditure:
• 2011/ 2012 - R89.1 million
• 2012/ 2013 - R93.55 million
Donations or contributions received by the Agency with the Nil
approval of the Minister;
Interest on investments of the Agency
Minimal interest in
operational funding
earned
on unspent
Loans raised by the Agency, subject to section 26
Nil
Proceeds from the sale of land
Nil
Fees for services rendered based on cost recovery
Nil
Subsidies and grants granted by the organs of State
Limited to cost recovery on S29 projects and
grants from Provinces
In order to enable the HDA to fully perform its legislated functions, the quantum of
the monies (including subsidies and grants) available to the Agency needs review
Implications of different funding scenarios
Scenario
Impact
No capital funding is provided by The HDA cannot achieve its (Land)
mandate and will only be able to provide
the NDHS
minimal support to provinces and
municipalities
Provinces allocate capital
funding
The impact will be limited to the provinces
where funding is provided. The strategic
impact will therefore be defined by the
provinces
Capital funding is provided by
the NDHS
The HDA will be able to fulfil its mandate
and make a strategic impact in proportion
to the capital at its disposal
Budget
The current MTEF allocation for 2011/12 is R89.1 million increasing to R93.55 million in
2012/13. It is considered that in the light of the legislated functions that the Agency is to
fulfil, the current MTEF allocation is inadequate and would require review. Should the
HDA be sufficiently capitalised to achieve its mandate, the operational requirement would
increase.
The HDA is not (yet) recovering its operational costs from the Eastern Cape PDHS. The
total budgeted amounts for projects are as follows:
Project
Funded 2011/12
budget
R
Total 2012/13
budget
R
Total 2013/14
budget
R
Total 2014/15
budget
R
Zanemvula
8 675 410
9 239 312
TBA
TBA
N2 Gateway
16 435 012
17 503 288
TBA
TBA
Consolidated statement of financial
position
Consolidated statement of financial
performance
DESCRIPTION
TOTAL
2012
BUDGET
R
TOTAL
2013
BUDGET
R
TOTAL
2014
BUDGET
R
REVENUE
Grants: National Government
Other Income
117 563 164
89 100 000
28 463 164
124 004 303
93 555 000
30 449 303
132 555 888
100 103 850
32 452 038
EXPENDITURE
117 563 164
124 004 303
132 555 888
Administrative Costs
35 756 743
34 740 638
37 100 823
Operational costs
19 936 979
22 261 016
23 407 081
Salaries & related costs
61 869 442
67 002 650
72 047 984
NET (SURPLUS)/ DEFICIT
(0)
(0)
(0)
Thank you