Human Settlements
With regard to the Western Cape Asset Finance Reserve for Human Settlements:
(1) (a) How much funding is available in the reserve fund, as at the latest date for which information is available, (b) what is the application process for municipalities when applying for this funding, (c) what limitations apply to this fund and (d) what are the details of the limitations;
(2) whether the Department has identified any particular local municipalities and projects that this fund will assist; if so, (a) what are the relevant details and (b) how will it provide the relevant support;
(3) whether the fund will be used for job creation initiatives; if so, (a) for which initiatives and (b) what are the details and/or examples of this;
(4) whether his Department has already outlined these initiatives; if so, what are the proposed (a) deadlines and (b) targets of these initiatives?
(1)(a) R62,439m.
(b) The municipalities must complete a Project Initiation Document (PID) as per all other human settlement projects.
(c ) Currently the only funding that comes available is excess own revenue.
(d) Excess own revenue is revenue collected more than the revenue budget of the department – currently R70m. This is in contravention of the Housing Code that stipulates that all revenue derived from investment in human settlement projects must be allocated to a special funds created for human settlement projects. The Department is in discussions with the Provincial Treasury to allocate more Provincial Equitable Share funding to make up for the shortfall of R68m to fund the operations of the Department (only R2m not linked to infrastructure returns).
(2)(a) No, the project applications are being assessed.
(b) My department will provide the necessary support as per other human settlements projects.
(3)(a) Yes, job creation initiatives, including developing business/industrial hubs, construction opportunities, training initiatives.
(b) Local contractors and labour, skills development in respect of construction disciplines.
(4)(a)(b) Job creation initiatives forms part of the application document and therefor (a) and (b) can only be answered when the projects are approved, and construction programmes are available.
