Human Settlements
With regard to the directive sent in the week of 9 November by Minister Lindiwe Sisulu of the national Department of Human Settlements instructing provincial governments to downscale their respective delivery of housing projects:
- (a)(i) On how many sites in the province have budget cuts by the national Department of Human Settlements had an impact and (ii) what are the relevant details of these sites, (b)(i) on which housing opportunities and sites will the aforementioned directive have an impact and (ii) in what ways, (c) what impact does the additional processes for the national approval of housing projects have on the timeline for the delivery of housing opportunities led by the provincial government and/or the provinces municipalities and (d) what is the projected shortfall in housing opportunities for (i) the City of Cape Town and (ii) all other parts of the province for the next financial year;
- whether he has responded to this directive; if so, what are the details of his response, including any alternative proposals made by the Western Cape Government?
[1][a][i] My department is currently in the process of finalising its 2021/22 Human Settlement Development Grant [HSDG] Business Plan for submission to the National Department on the 7th February 2021. The figures presented below are provisional until gazetted by the National Department.
The reduction in targets, as a result of the directive and budget cuts etc., from the 1st to the 2nd draft of the 2021/22 Business Plan is from 5650 planned sites to 3221 sites [reduced by 2429 sites]; and from 8566 to 8513 units [reduced by 53 units], as demonstrated in the table below:
|
|
Number of Sites |
Number of Units |
Allocations |
|
HSDG |
5 650 > 3 221 |
8 566 > 8 513 |
R 1 577 433 |
|
Total |
3 221 |
8 513 |
R 1 577 433 |
[ii] The relevant details of sites and units per programme are as follows:
|
2nd Draft 2021/22 Business Plan |
|||
|
HSDG Sites and Units per Programme |
|||
|
Programme |
Sites |
Units |
Funding R '000 |
|
FLISP |
0 |
1146 |
52 650 |
|
INDIVIDUAL SUBSIDY |
20 |
138 |
17 360 |
|
IRDP |
3201 |
6325 |
1 196 642 |
|
MILITARY |
0 |
30 |
7 000 |
|
PHP |
0 |
874 |
115 692 |
|
LAND |
0 |
0 |
2 500 |
|
NHBRC/OPSCAP/Security |
0 |
0 |
185 589 |
|
Grand Total |
3221 |
8513 |
1 577 433 |
[b][i][ii][c] The directive from the National Department will impact all projects which have been in the pre-planning, planning and packaging stages since all projects currently in implementation, with contractual commitments, will continue as is to completion.
The projects that are yet to commence with implementation will be impacted through the amendment of general plans, design typologies and site development plans etc. to accommodate the new directives of increased site provision and densification.
This may have a financial impact, as well as possible time delays should the National Department be required to approve the funding application for each new top structure project.
[d][i][ii] The projected delivery of housing opportunities for the City of Cape Town region in the 2020/21 financial year is 2560 opportunities while the projected total for the 2021/22 financial year is 2120 opportunities. This represents a decrease in 440 housing opportunities. The table below depicts the projected shortfalls for each Region from this financial year to next:
|
Region |
2020/21 Housing Opportunities |
2021/22 Housing Opportunities |
Difference of Housing Opportunities |
|
Cape Winelands |
2 202 |
1 426 |
-776 |
|
Central Karoo |
- |
- |
- |
|
City of Cape Town |
2 560 |
2 120 |
-440 |
|
Departmental |
2 265 |
2 510 |
245 |
|
Garden Route |
4 445 |
2 576 |
-1869 |
|
Overberg |
1 005 |
1 415 |
410 |
|
West Coast |
1 020 |
1 357 |
337 |
|
Other |
728 |
330 |
-398 |
|
Grand Total |
14 225 |
11 734 |
-2491 |
[2] We can confirm that my department immediately responded to the National directive letter seeking further clarity on technical matters, definitions and implications of the new directives, to which the National Department also responded.
At present, my department is currently engaging with the City of Cape Town and all municipalities to discuss the budget implications of the new approach as well as possible alternative accommodation options [budget permitting] which are being costed at present. My department intends to table these counter-proposals at the next Technical MinMec meeting in order to engage the National Department on budgetary aspects.
