TO
ALL HEADS OF THE DEPARTMENT OF HUMAN SETTLEMENTS
FROM DIRECTOR GENERAL OF THE NATIONAL DEPARTMENT
DATE 1 JULY 2015

PURPOSE
1.
To advise Provinces and Municipalities regarding the identification and acquisition of suitable and well located land for Human Settlement
Development
BACKGROUND
2.
Government has identified the need to create a framework for coordinating land identification and acquisition processes in order to facilitate the achievement of the goal of integrated sustainable human settlements.
3.
The lack of a framework is regarded as the main contributing factor in creating unintended consequences and imposing high costs on households and the economy.
4.
The Minister of Human Settlement has instructed the National
Department to develop this practice note given that she acknowledges the myriad of South African policies and legislative frameworks that serve as strategic guidelines in the identification and acquisition of well-located land in the Republic of South Africa.
DISCUSSION
The objective of the Practice note is:
5.
To ensure that Provinces and Municipalities coordinate the activities of land identification and acquisition that remain fragmented across
Provinces and Municipalities
6.
To facilitate the process of the identification and acquisition of well located land and eliminate the acquisition of land at exorbitant prices that are done outside the mandate of the HDA.
7.
To improve coordination with various sector departments that are expected to contribute to a coherent land acquisition programme that seeks to enhance the delivery of sustainable human settlements including the Land Reform Programme of South Africa
8.
To eliminate the practice of disposing suitable and well located municipal land and expectation that the Department and Housing
Development Agency will later acquire such land for human settlements development.
9.
To channel the allocations for land acquisition that is available through
Provinces and Metropolitan municipalities through the other sources of revenue including grants such as HSDG & USDG
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10.
To assist government to make measurable progress towards breaking apartheid spatial patterns.
11.
To grant an option of a first right of refusal to the Department in instances where public and municipal land that is well located and suitable for human settlements is being disposed by government.
12.
To provide defined parameters that will be used for the identification and acquisition of land that is suitable for human settlements.
GUIDING PRINCIPLES
The following guiding principles shall be binding:
13.
Planning: There shall be planning for land acquisition in all Provinces and municipalities. This implies all spheres must ensure that planning is done at a community, municipal level, regional, provincial and national level. All plans shall translate into a Joint Multiyear Provincial and Municipal Land Acquisition Plan that will be formulated into a
National Multiyear Land Acquisition Plan and approved by the Minister of Human Settlements. All plans must show alignment and linkages with the RSDF and SDF and assessment including spatial information available in terms of geotechnical circumstances, water resources, etc.
14.
Negotiations: The Human Settlements shall be offered a first right of acquisition to Public and Municipal Land before a sale agreement is concluded. The process of acquisition of land for human settlements development must be fair, transparent, and equitable and be in line with the procurement legislation and procedures.
15.
Valuations: Land when it is being transferred or disposed must be given an appropriate value to ensure transparency and avoid prejudice to all affected stakeholders.
16.
Value for money: There must be value for money achieved with every land transaction that is processed. No unsuitable land should be acquired. At least commissioning two independent valuations will assist in ensuring value for money.
17.
Consultation: Communities must be engaged regarding suitability of certain land portions identified and to be acquired. All unsuitable land must be mapped after consultation with relevant professional bodies.
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18.
Ring fencing : All public and municipal land that is suitable for the provision of sustainable human settlements must be ring fenced accordingly. Public and municipal land custodians must first offer suitably located land for human settlement purposes to the
Department of human settlements prior to disposing such land assets in an open market.
19.
Land Rehabilitation: The Department shall use its available means and resources to rehabilitate suitable and well located land that is identified for human settlements.
20.
Cooperative Governance: In instances where there is competing public land for public use, such must be dealt with within the intergovernmental framework.
21.
Partnership with the Private Sector : The Department shall ensure that partnerships are formed to ensure that the private sector is afforded suitable incentives within government to enable the development of sustainable human settlements.
PARAMETERS FOR LAND IDENTIFICATION
22.
The land identified shall be strategically located and assist South Africa to achieve spatial integration. The following parameters are to enable the identification:
 Land parcels shall have access to social amenities, economic opportunities and employment centres
 Land parcels so identified shall promote economic integration.
 Land so identified shall reflect key historical, social and economic linkages.
 Land shall promote existing survival strategies of targeted community and with minimum possible impact of relocation.
 Land shall have existing transportation networks or at least have planned transportation networks within a five-year timeframe.
 Land shall have envisaged and or planned commercial and industrial developments envisaged within a five-year horizon.
 Land shall have available infrastructure – physical and natural resources.
 Land shall be suitable in terms of geotechnical circumstances.
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 The land that is at the periphery shall be used for its most excellent use.
 The land so identified shall promote the progressive upgrading of informal settlements.
 Land shall combat urban sprawl by promoting higher densities of development and mixed uses in strategic locations;
 Land shall enhance economic security and promote optimal use of infrastructure in new and existing human settlements;
 Land shall incorporate ecologically sensitive settlement design alternatives; and
 Land shall promote a wider range of affordable tenure options in well-located areas.
Key Considerations before disposal of suitable Land for Human Settlements
20.
The following considerations must be made:
 All stakeholders shall consult the National Department and or offer the portion of well located that is suitable for human settlements before it is actually disposed in an open market.
 All offers shall be made in writing and contain valuation certificates and or at least clear details of a property description, size, location, GIS coordinates, ownership details and value.
 The Department and the Housing Development Agency shall prepare a register of such land
21.
NDHS shall:
 Provide a Master Plan for Human Settlement Development that will direct the acquisition of suitable land for human settlement development.
 Disburse the annual grant funding allocations for land acquisitions for human settlement development.
 Prepare a National Multi Year Land Acquisition Plan for Human
Settlements
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 Support Provinces and Municipalities to package provincial and municipal multiyear land acquisition plans for Human
Settlements.
 Receive public written offers on land that is suitably located that can be utilized for human settlement prior to disposing such land assets in the open market.
 Support the coordination and release of public land held nationally for human settlements development.
 Lead the development and review of the approach to land identification , acquisition and design other suitable policy frameworks.
 Monitor the implementation of the practice note.
 Support provinces and municipalities in identifying and acquiring well located and suitable land.
 Consult the Council of Valuers which shall assist the Department and the HDA in achieving value for money when such parcels are procured.
 Evaluate plans and portions of land that are acquired or to be acquired (i.e. well located and strategically located and the impact of acquisition in achieving the land related targets)Assess the performance of the Housing Development Agency in respect of releasing well-located land, rezoned land and releasing land for new developments targeting the poor and lower middle income households)
 Provide an enabling environment for the Hosuing Agency and
Provinces to do its functions.
 The National Department shall set up a Joint Evaluation Task
Team whose objective shall be to: o Review land identification and plans of both provinces and municipalities against the Master Spatial Plan.
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o Engage with Provinces and Municipalities regarding intentions to dispose land. o Collate national information and provide a benchmark on land acquisition. o Monitor the land acquisition transactions in the residential Property market and the reports of the HDA as reflected by the Provinces and, Municipalities o Identify challenges and recommend remedial action where feasible. o Report regularly through the HDA to MinMec and
Technical MinMec regarding progress made in transforming human settlements through land transactions.
SANCTIONS
22.
It is anticipated that there may be disputes in relation to the first right to purchase the land suitable for human settlements. Such disputes shall be resolved through the Minister of Human Settlements in
Consultation with the Provincial Executive. The Minister shall partner with the Minister of COGTA, DRDLR and the Presidency to table regular reports on disputes to the President.
Conclusion
23.
It is the intention of the National Department shall ensure an oversight compliance monitoring through a Joint Evaluation Task team that will monitor the achievement of objectives of this practice note. The Department shall ensure that the land acquisition and potential land disposal reports serve as standing items in the agenda of the Mintop and MinMec Forum.
ISSUED BY
..............................
M. TSHANGANA
ACTING DIRECTOR GENERAL
DATE
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