Presentation to the Portfolio Committee on Higher Education and Training Report on the Ministerial Committee for the Review of Student Housing at South African Universities Department of Higher Education and Training 6 March 2013 Cape Town, Parliament Introduction Introduction Minister appointed a Ministerial committee to investigate student accommodation after he took up office in 2009 and visited a number of universities. The visits confirmed there were serious challenges in the provision of both on and off-campus accommodation. Lack of adequate and affordable student housing forces students to rent sub-standard accommodation off-campus. Between 2005 and 2010, universities reported a total of 39 incidents of student housing-related protests with most of these protests in historically black institutions. The Minister appointed Prof Rensburg to lead the Committee to assess the provision of student accommodation in South African universities. 2 Purpose of the Report To establish the scale of the student accommodation challenges. To offer a well-motivated and justifiable differentiated framework for redressing this student accommodation quandary through establishing a typology of need based on relative access to private sector led provision and historical disadvantage. To provide government with a medium to long term financing framework within a fifteen year timeframe, in order to intervene in this situation. To provide minimum norms and standards for student accommodation, whether on or off campus. 3 Research Methodology Comprehensive questionnaire constructed and distributed to Vice Chancellors of the 22 contact universities. Review of related literature. Site visits covering on and off-campus accommodation across 49 university campuses. Interviewing key stakeholders. Data compilation, review and analysis. 4 Literature Review - Summary of Findings Bulk of student housing research – North America, Europe and Australia. Paucity of student housing research in developing countries. Most students live at home; but demand for student housing outstrips supply. Public funding of higher education is under increasing pressure. Student housing models range from traditional university residences to public-private partnerships (PPPs), city-university partnerships and the re-use of old buildings. Trends emphasize ‘living-learning’ communities, more mixed and flexible housing forms, safety and security, sustainable student housing developments, and greater consideration for the diversity of student housing needs. No legislation in SA (national, provincial or local) pertaining to the accommodation and/or housing in South Africa 5 Student Data 6 Student Data 7 Student Data 8 Student Data NB: Only 5% of 1st year students at SA Universities housed in residence 9 Photos - Site Visits 10 Photos - Site Visits 11 Photos - Site Visits 12 Photos of Site Visits 13 Off campus accommodation at University of Venda (not part of the study) 14 Per Bed Cost Breakdown – R238 602 Included in this cost (p.112 of Report): Consultants and planning costs (feasibility & due diligence, EIA’s etc.) All construction costs All furniture & fittings (student rooms are fully furnished and include soft furnishings and bed linen), heat pumps in place of hot water boilers, motion-control sensors to control lighting in common areas, wireless and fibre-optic network points in each room, six common rooms fitted with flat screen TVs and DSTV, three kitchenettes, six laundry areas fitted with washing machines and tumble driers, six box rooms, biometric access control, electronic fire-monitoring system, rain-water harvesting and onsite water storage to mitigate short period water outages, and landscaping. Three 3-bedroomed wardens’ flats are included. 15 Per Bed Cost Breakdown – R238 602 Additional expenses included unusual platforms & foundations due to slope of site and provision for storage & pumping of water due to inadequate/unreliable municipal water supply. NOT included is the cost of land R238 602 is thus the actual cost of a greenfields, fully furnished and fitted, turnkey development providing 261 beds in 2010 in a small rural town in the Eastern Cape. 16 Site Visit Findings “No student interviewed during the site visits admitted to being hungry, but several recounted stories about fellow students who were starving, stories which were then confirmed by student leaders and student support staff. Given the stigma of poverty, the Committee is of the view that these stories are merely the tip of the iceberg that is student hunger. It is an indictment on all who live in this country that some of the greatest talents of the next generation, and many of its future leaders, are being suffered to live and learn under such appalling conditions. It is not only that the country’s potential is being squandered; it is literally being starved. This state of affairs cannot be permitted to continue, and it should be the first and most urgent duty of every stakeholder in higher education to ensure that it does not.” (p.52) 17 Analysis of Findings Pervading and recurring motif - the implacable dialectic between the need to keep residence fees as low as possible and the need to provide student housing and accommodation which meets minimum acceptable standards. The mal-distribution of NSFAS funding for student accommodation at a number of universities is the direct cause of much suffering and hardship to students at those institutions. Many students experience hunger on a daily basis. 71 % of students housed in residences received some form of financial assistance. 18 Analysis of Findings Highest percentage of students housed in residences originated from Kwazulu-Natal, followed by the Eastern Cape, and thirdly from SADC region. Campuses are evenly split between those with dining halls and those that are self-catering, poor nutrition and student hunger are prevalent at all universities. Residence staff ratios vary between 1:19 and 1:535, with staff remuneration and training varying just as widely. The lack of sufficient and adequate on-campus housing is resulting in overcrowding, jeopardising students’ academic endeavours and creating significant health and safety risks. 19 Analysis of Findings Based on university estimates, value of the current national maintenance and refurbishment backlog is R2.5 billion. If existing residence stock is to be modernised to render the residences ‘fit-for-purpose’, then a further R1.9 billion is required. In addition to above costs, it is estimated that the current residence bed shortage is approximately 195 815. In these terms, the cost of overcoming this shortage over a period of ten years is estimated at R82.4 billion, or R109.6 billion over fifteen years. (Estimate based on cost of R240 000 per bed; and 50% and 80% targets of student beds on specific campuses, see table 3). 20 Analysis of Findings The private sector is a significant contributor and stakeholder in the provision of accommodation to university students in South Africa, as is the case internationally. It is estimated that the private sector provided for 10% of the estimated full- time contact enrolment at universities in 2010. Condition of leased buildings can only be described as squalid. Private student housing in the country is completely unregulated and leads to exploitation of students. 21 Name of Institution CPUT CUT DUT MUT NMMU RU TUT UCT UFH Name of Campus CPUT CT CPUT Wellington CPUT Mowbray CPUT Bellville CUT DUT Durban DUT Midlands MUT NMMU SS South NMMU SS North NMMU 2 Ave NMMU George RU TUT Pretoria TUT Emalahleni TUT Mbombela TUT Garankuwa TUT Soshanguve UCT UFH Alice No of registered students 2010 (DHET data) 21 497 10 540 12 271 25 236 10 046 21 782 994 7 149 36 993 4 592 10 172 23 610 6 205 Beds per campus 2010 3 048 547 203 2 045 728 1 400 1 211 1 270 1 431 955 171 254 3 503 4 012 198 130 1 478 4 346 5 579 4 006 Beds per University 2010 5 843 Bed capacity as % of 2010 enrolment 18.24% Beds Beds needed to needed to reach reach 50% of 80% of 2010 2010 enrolment enrolment 6 951 6387 728 5.93% 5 408 2 611 10.35% 10 007 1 270 12.64% 2 811 12.34% 6767 8 334 541 3 503 49.00% 72 8 333 10 164 27.48% 2196 3792 5 579 5 089 23.63% 48.25% Table 1 − Bed Shortage & Number of Beds Needed 6 226 958 22 UFH Buffalo City UFS Bloemfontein UFS QwaQwa UJ AP-Kingsway UJ AP-Bunting UJ Doornfontein UJ Soweto UKZN Howard UKZN Medical UKZN Westville UKZN Edgewood 4 343 19 289 3 824 45 509 2 815 34 066 1 083 3 382 1 053 1 111 1 350 1 796 136 1 743 165 2 349 802 4 435 19.19% 4 393 9.09% 1 089 6 263 2006 18 498 2116 6 924 1 865 UKZN Pietermaritzburg 14 103 5 935 5 935 UL Turfloop 3 879 2 748 2 748 UL MEDUNSA 14 497 4 354 4 354 UZ Kwa Dlangeza 6 522 2 233 UNW Mafikeng 4 826 8 096 UNW Potchefstroom 23 120 1 037 UNW Campus 3 41 796 7 650 7 650 UP 5 965 US Stellenbosch 26 418 6 874 909 US Tygerberg 10 280 2 036 2 036 UV 18 031 3 656 3 656 UWC 21 212 3 081 3 081 VUT 29 741 4 464 4 464 WITS 2 776 WSU Mthatha 21 901 686 WSU Mthatha Zama 5 354 1 638 WSU Butterworth 3 000 254 WSU Buffalo City 535 433 107 598 107 598 TOTALS SUBTOTALS TOTAL NUMBER OF BEDS REQUIRED NATIONALLY (OPTION 1) IN 2010 20.33% 10 109 42.08% 70.84% 30.03% 355 27.31% 5347 7244 2985 5 697 18.30% 13 248 26.02% 6 335 19.81% 20.28% 15.01% 15.01% 6188 10769 7 525 10 407 12421 24.45% 1 246 20.10% 126 099 69 716 195 815 23 No meals INSTITUTION UCT WITS UWC RU USB UP UKZN NMMU VUT DUT CPUT UJ MUT UFS UFH TUT NWU UV CUT UL UZ WSU Average 2008 R 18 080 N/P R 17 174 R 16 145 R 15 015 R 14 090 R 11 283 R 14 671 R 10 969 R 10 581 R 9 399 R 8 935 R 9 437 R 9 453 R 6 863 R 7 711 R 9 109 N/P R 6 758 R 6 420 R 6 136 N/P R 10 959 2009 R 21 027 N/P R 20 576 R 18 060 R 16 973 R 15 907 R 12 881 R 16 010 R 12 305 R 11 680 R 10 847 R 9 958 R 10 348 R 9 889 R 7 970 R 8 491 R 8 068 N/P R 7 350 R 6 932 R 6 136 N/P R 12 179 Meals included 2010 R 25 742 R 22 745 R 22 394 R 19 980 R 18 327 R 17 754 R 13 952 R 13 936 R 13 117 R 12 661 R 12 355 R 11 865 R 11 647 R 10 860 R 9 607 R 9 037 R 8 989 R 8 430 R 8 054 R 7 484 R 6 688 R 6 603 R 13 283 08/09 % increase 16.3% 09/10 % increase 22.4% 19.8% 11.9% 13.0% 12.9% 14.2% 9.1% 12.2% 10.4% 15.4% 11.4% 9.7% 4.6% 16.1% 10.1% -11.4% 8.8% 10.6% 8.0% 11.6% 8.3% -13.0% 6.6% 8.4% 13.9% 19.2% 12.6% 9.8% 20.5% 6.4% 11.4% 8.8% 8.0% 0.0% 9.6% 8.0% 9.0% 10.1% 10.1% average increase 2008 19.4% R 28 585 N/P 14.3% N/P 11.2% R 26 905 10.5% R 24 343 12.3% R 23 294 11.2% N/P -1.9% N/P 9.4% N/P 9.4% N/P 14.7% R 14 845 15.3% N/P 11.1% N/P 7.2% N/P 18.3% N/P 8.3% R 19 555 0.0% R 16 405 N/P 9.2% N/P 8.0% N/P 4.5% N/P N/P 10.1% R 21 990 2009 R 32 728 N/P N/P R 30 093 R 27 873 R 26 037 N/P N/P N/P N/P R 16 303 N/P N/P N/P N/P R 24 201 N/P N/P N/P N/P N/P N/P R 26 206 Table 2 − Weighted Average Residence Fee, 2008-2010 2010 R 38 938 R 37 493 N/P R 33 302 R 30 427 R 29 384 N/P R 28 341 N/P N/P R 23 404 N/P N/P N/P N/P R 26 106 N/P N/P N/P N/P N/P N/P R 30 924 24 INSTITUTION UP UCT NWU UV WITS USB UL TUT VUT NMMU UZ RU CUT UKZN UFS DUT UJ UFH UWC MUT CPUT NET TOTAL AVERAGE WSU 2008 R53 341 000 R2 709 000 R13 794 000 R14 216 000 R14 296 000 R12 565 588 R20 759 000 R2 899 000 R2 474 193 R871 322 -R2 328 000 -R1 000 R50 000 R7 294 000 -R5 168 000 -R1 090 000 -R1 408 000 -R4 339 886 -R6 293 938 -R23 548 000 -R20 739 004 R80 353 275 R3 826 346 Not provided 2009 R53 236 000 R6 645 000 R19 157 000 R11 432 000 R4 826 000 R12 337 470 R3 294 000 R9 196 000 R4 761 442 -R3 761 991 -R216 000 R651 000 -R229 000 -R3 687 000 -R2 166 -R426 000 -R11 944 000 -R7 997 293 -R9 841 722 -R8 663 000 -R23 238 083 R55 529 657 R2 644 269 Not provided 2010 R61 449 000 R50 322 000 R19 176 000 R11 895 000 R6 655 000 R475 569 Not provided R8 152 000 R7 400 069 R11 246 750 R4 980 000 R0 R46 000 -R8 231 000 Not provided -R8 263 000 R2 200 000 -R6 029 685 -R11 645 780 Not provided -R34 118 074 R115 709 849 R6 428 325 Not provided TOTAL R168 026 000 R59 676 000 R52 127 000 R37 543 000 R25 777 000 R25 378 627 R24 053 000 R20 247 000 R14 635 704 R8 356 081 R2 436 000 R650 000 -R133 000 -R4 624 000 -R5 170 166 -R9 779 000 -R11 152 000 -R18 366 864 -R27 781 440 -R32 211 000 -R78 095 161 R251 592 781 R11 980 609 Table 3 − Net Surplus/Deficit for Residence System 2008-2010 25 Recommendations Type 1 campuses are those where off-campus accommodation is unsuitable and/or unavailable (e.g. UL Turfloop, UV, UWC, UFH Alice). Located in impoverished areas with a severe shortage of suitable accommodation; such campuses ideally need to be able to accommodate 80% of total student enrolment in on-campus accommodation in the short to medium timeframe, and 100% in the long term. Type 2 campuses are those where limited off-campus accommodation is available and is suitable (e.g. RU, USB). Such campuses ideally should be able to accommodate a minimum of 50% of total student enrolment in on-campus accommodation. 26 Recommendations Type 3 campuses are those where limited off-campus accommodation is available and is suitable, and where land for on-campus accommodation is restricted (e.g. UJ, Wits, UCT). On these campuses, ideally, PPP student accommodation villages, involving partnership between universities, metropolitan councils and private providers, should be encouraged and supported in the short to medium term. 27 Recommendations 1. Residence admission and allocations policies: Comprehensive policy to be rigorously implemented managed and monitored. Strategies and mechanisms need to be developed to increase and support access to university residences by poor and working class students. Strategies and mechanisms to allow all new first year contact students in need of accommodation to be allocated to a residence for their first year. 2. Minimum standards for student housing and accommodation: Minimum standards for the accommodation and housing of students must be developed and made applicable to all providers of student housing, both public and private. 28 Recommendations 3. Private student housing and accommodation: Given the dire shortage of suitable student accommodation, public-private partnerships in the form of student villages, particularly in the metropolitan areas, should be explored further. Mechanisms designed to foster and enhance cooperation between all stakeholders involved in the provision of student housing and accommodation need to be established, under the auspices of the DHET. 4.Residence management and administration: Residence staff to resident student ratios should not normally exceed 1:150 in the case of wardens, house parents, residence managers or the equivalent, and 1:100 in the case of student sub-wardens or the equivalent. 29 Recommendations All universities should establish a board, council or similar body which represents all residences and oversees residence life. Improving the professionalism, compensation and training of university housing staff is an urgent priority. All complaints and allegations of maladministration, corruption and nepotism must be rigorously investigated by the DHET and strict action taken against offenders. 5. Role of residences in the academic project Research needs to be conducted to explore ways in which the social and cultural milieu in residence systems impacts upon the ability of black working class students to succeed academically. 30 Recommendations Research needs to be conducted to explore the broad and complex relationship between student housing and academic success. Residences must become an integral part of the academic project and promoted as sites of academic endeavour. 6. Financing of student housing and funding of student accommodation The complete separation of the residence budget and management accounts from the university budget and management accounts is needed. Residence management accounts should be submitted on a quarterly basis to the University Council, and annual financial reporting must be standardised. 31 Recommendations A ‘wealth tax’ mechanism should be explored as a way of increasing residence access to disadvantaged students. An investigation into universities’ use of reserves for priorities such as student housing should be undertaken. An annual fixed national NSFAS residence fee for student board and lodging which meets minimum standards (including a minimum of two balanced meals per day) should be set at R30 500 for 2011. Residences must become an integral part of the academic project and promoted as sites of academic endeavour. Once the state has indicated what proportion of this target it is able to fund, the private sector should be invited to meet the remaining bed capacity target, in accord with minimum standards for the provision of student housing. 32 Recommendations Residence bed capacities to accommodate 80% of full time contact student enrolment on campuses where off-campus accommodation is unsuitable and/or unavailable, and 50% of full time contact student enrolment on campuses where limited off-campus accommodation is available and is suitable, should be targeted. 7. Condition of residence infrastructure All universities are to conduct a professional quantity surveyor-led assessment of their residence infrastructure. National minimum standards and service level agreement guidelines for the maintenance and refurbishment of residence infrastructure should be established. 33 Recommendations Modular residence construction methodologies should be fully researched. 8. Future planning All universities should develop a multi-year strategic plan (including a financial plan) for residence maintenance and refurbishment. Those who are accountable for university student housing should be part of the planning process. The Chief Housing Officer should report directly to a member of the senior management team of the university. 34 DHET’s Response to the Report Funding available for university infrastructure over 3 years amounts to R6 billion across a number of categories. Student housing allocation is R1.690 billion. Historically disadvantaged institutions/campuses allocation is R1.443 billion (85%) Historically advantaged institutions allocation is R247.3 million (15%). Approach is to provide funding for new residences and for refurbishments of old residences. Low residency fees by Category A universities limits their ability to access private funding. Government has to provide funding for infrastructure to ensure that residency fees remain affordable to poor and middle class students. 35 DHET’s Response to the Report The DHET has engaged with the PIC/DBSA to offer preferential rates and viable options to universities: Category A: Universities with limited on and off campus accommodation and a relatively weak balance sheet (off balance sheet lending). Category B: Universities with limited on and off campus accommodation and a better balance sheet but pose low risk for funders (can cede part of their investments). Category C: Universities with a good balance sheet and can access funding at preferential rates (in some cases they cede their investment as security). 36 DHET’s Response to the Report The Department hosted a workshop with all universities on 17 August 2012. Recommendations were presented and different options around financing explored (PIC, DBSA and ABSA). Universities invited to present their comments on or before 21 September 2012. Intention is to Gazette the Minimum Norms and Standards for the sector. Establishment of a departmental project management Unit and building capacity within DHET . Compel universities to make provision for maintenance on an ongoing basis for infrastructure. Systematic mapping of the system. 37 Priority Infrastructure Categories/Projects Student Housing Historically Disadvantaged Institutions’ backlogs Disability funding for increased access Engineering Cooperative projects Health Sciences Life and Physical Sciences Well Founded Laboratories Teacher Education African Languages, Humanities and Social Sciences ICT Project management at universities 38 Total Allocation per University University CPUT UCT CUT DUT UFH UFS UJ UKZN LIMPOPO MUT NMMU NWU UP RU UNISA SU TUT VUT VENDA WSU UWC WITS ZULULAND Total Allocation 2012/13 – 2014/15 R'000 238 847 174 316 255 950 361 525 377 268 208 394 110 155 244 019 370 170 228 988 195 515 211 373 88 130 169 626 87 130 158 080 379 452 295 635 305 279 421 851 187 138 155 672 376 278 5 600 791 M&E Internal 5 000 ICT 184 209 * (to be adjusted) Medunsa 210 000 Grand Total over 3 years 6 000 000 39 Student Housing Allocations - Per University University FC7A Student Housing in HDI universities Final DHET Allocation University Contribution Priority projects total cost R'000 R'000 R'000 Cape Peninsula University of Technology 50 375 26 125 76 500 Central University of Technology (Welkom) 60 389 13 044 73 433 Durban University of Technology 115 439 5 604 121 043 University of Fort Hare 120 000 17 825 137 825 University of the Free State ( QwaQwa) 45 189 22 000 67 189 University of Johannesburg (Soweto) 50 000 27 900 77 900 University of KwaZulu-Natal (Westville) 80 000 33 191 113 191 180 000 33 173 213 173 Mangosuthu University of Technology 84 936 11 161 96 097 North West University (Mafikeng) 67 000 10 000 77 000 118 082 13 120 131 202 48 811 6 535 55 346 University of Venda 132 994 14 777 147 771 Walter Sisulu University 120 123 0 120 123 20 000 0 20 000 119 300 16 000 135 300 1 412 638 250 455 1 663 093 University of Limpopo Tshwane University of Technology (Garankuwa) Vaal University of Technology ( Sebokeng) University of the Western Cape University of Zululand Total 40 Student Housing Allocations - continued University FC7B Student Housing in non- HDI universities Final DHET Allocation University Contribution Priority projects total cost R'000 R'000 R'000 University of Cape Town 21 000 223 600 244 600 Central University of Technology (Bloemfontein) 30 100 13 644 43 744 University of the Free State (Bloemfontein) 10 000 42 500 52 500 Nelson Mandela Metropolitan University 20 500 7 036 27 536 7 545 0 7 545 0 27 391 27 391 Rhodes University 30 946 5 883 36 829 Stellenbosch University 29 750 57 750 87 500 Tshwane University of Technology (Pretoria West) 16 082 1 800 17 882 Vaal University of Technology (Vanderbijl) 68 213 9 802 78 015 5 000 32 000 37 000 239 136 421 406 660 542 North West University (Vaal) University of Pretoria (allocation made from NSF) University of the Witwatersrand Total 41 Thank You