Housing Leadership Forum
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1 Informal Settlement Upgrading and Backyard Shacks Housing Leadership Forum Steve Topham, NUSP Technical Team, 9 February 2011
2 South Africa: Urbanisation
3 Breaking New Ground : Breaking New Ground new comprehensive plan for sustainable human settlements: New instrument - Upgrading Informal Settlements Programme for incremental insitu upgrading UISP set out in Part 3 National Housing Code BUT widely interpreted as target to eradicate all informal settlements by 2014 N2 Gateway rental units Blikkiesdorp Removal Area
4 Great achievements but running to stand still? 1.5 m 16% of total 9.7m h/hs 2.3 m 2.1 m 17% of total 12.5m h/hs 1994 Backlog: Number of households Subsidised housing units produced 2010 Backlog: Number of households
5 Household formation & informal settlement growth 4.5 persons 3.9 persons Total: 9.7m h/hs Total: 12.5m h/hs Average household size Informal Settlements in South Africa
6 Household formation & informal settlement growth 4.5 persons 3.9 persons Total: 9.7m h/hs Total: 12.5m h/hs Average household size Informal Settlements in South Africa
7 Backyard shack statistics 4.7% 4.1% Backyard Shacks Census 2001; Community Survey estimated rented shacks, of which: are in backyards are in informal settlements But could be over So a highly successful segment of national housing supply but complex, relationship based, livelihoods and income source.
8 Backyard Shack Rentals Income & Expenditure Survey 2006, in SHIFT Shack Rentals in SA, 2008
9 Projected growth in households renting Municipality <R 850 R R Ekurhuleni 46% 31% 12% Joburg 41% 30% 11% Tshwane 42% 35% 12% Cape Town 55% 35% 15% Ethekwini 16% 11% 1% Amatole DM 6% -2% -5% Motheo DM 19% 8% -4% Nelson Mandela 16% 10% 0.4% Umgungundlovu DM 23% 8% -4% SHIFT Shack Rentals in SA, 2008 NB Highest rental demand in low-income bands in Gauteng plus Cape Town, translates to more growth in backyard rentals
10 Municipality Backyard Shacks and IDP Reviews %Total H/holds in Backyard Shacks (2007) IDP stated interventions on backyard shacks Ekurhuleni 9.1 Formalisation of backyard shacks by 2015 Joburg 8.4 Develop comprehensive backyard shack strategy Housing allocation policy must include backyarders Tshwane 7.1 No specific reference to backyarders Cape Town 6.2 Housing Allocation Policy provides for backyarders on housing database to be allocated housing opportunities Provide second service connections Ethekwini * 4.5 No specific reference to backyarders * Ethekwini 2009/10 IDP review
11 Backyard Shacks and IDP Reviews Municipality %Total H/holds in Backyard Shacks IDP references to backyard shacks Buffalo City 4.1 Establish housing needs database, including backyarders Mangaung 3.1 No specific reference to backyarders Nelson Mandela 2.6 No specific reference to backyarders Msunduzi 0.4 No specific reference to backyarders General picture is of response via Housing Database and new unit provision Understanding of importance of rental livelihoods and supporting small-scale landlords less well developed.
12 One response Gauteng Backyard Rental Programme Upgrade and formalise informal backyard rental Subsidised unit (two rooms, wet core, R25K) plus formal landlord-tenant contracts Rollout units including Orlando, Alex, Mamelodi, Rents raised, poorer tenants displaced Number of rental units reduced (another reason why rents increased) Contracts largely remained verbal Conclusion programme didn t recognise complex and sensitive relationships and nature of market
13 Informal settlements
14 Current context and impacts Poor GDP growth (<6%) not keeping pace with population growth Poverty still 40% real unemployment Decrease in revenue collection by SARS down by R65bn in FY09/10 pressure on dept budgets For DHS this means fewer homebuilding projects (Minister s speech, 17 Sep 09) Increasing number and frequency of community protests slow rate of delivery, lack of voice, xenophobia
15 Informal settlements eradicated by 2014? 1.1 million households in informal settlements 2008 estimate (growing at 2-6% pa across different councils) Full RDP package (40m2 top structure, 250m2 stand plus 30% for roads and amenities) would need: ha, plus bulk and connector infrastructure R84bn - 70% of projected national housing budget Current rate of UISP spend means would take to 2037 to meet 2014 target
16 National Upgrading Support Programme
17 NUSP Assessment Findings There are examples of good practice, but Little awareness and use of UISP and Part 3 NHC at sub-national level Sectoral coordination is weak Implementation - eradicate rather than upgrade, emphasis on top structures and full services No real information on communities, & how upgrading can strengthen livelihood strategies Little community-based participation Layouts are monotonous, low density & usually located at urban peripheries Service levels often inappropriate, entail high future costs to municipalities
18 Incremental Upgrade Package Services: emergency; basic; full service level taking account of sustainability, operations and maintenance costs to municipality Tenure: recognition of informal settlement; interim tenure; rental; leasehold; freehold Social & Community Facilities: co-location in settlement or easy access for public Human-centred & environmentally sustainable planning layout safe, good quality neighbourhoods, upgradeable, maximum use of renewable resources Community-based participation processes Crowd in support programmes (eg skills, business support, health & hygiene education)
19 National Delivery Agreement
20 Delivery Agreement Performance Agreement between President & National Minister May 2010 April 2014 Delivery agreement (operation of Performance Agreement) accepted by PCC May 2010, and approved by MINMEC households in well-located informal settlements to receive basic services and secure tenure by 2014 Provide ha of public land for low-income housing Accreditation of 6 metro and 21 large town councils Establish NUSP and publish upgrading Resource Kit Provide public & private rental units Facilitate provision of gap market units
21 Upgrade households: provincial targets Province Informal Settlement Households Share of National Target Estimated Cost: R000 Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total Budget to be secured from National Human Settlement Grant allocation provided from NDHS to provinces
22 National Upgrading Support Programme: objectives Promote incremental upgrading as a major complementary housing programme, in line with Part 3 NHC (where possible, in-situ) Support Delivery Agreement target to improve basic infrastructure, services and land tenure for informal settlement households by 2014 Improve programmatic approach to upgrading, strengthening coordination with other sectors and partners Strengthen capacity of government and professional practitioners to implement community-based incremental upgrading
23 NUSP elements National Upgrading Support Programme Unit Policy Refinement Network & Forum Guidance & Tools Technical Assistance Promoting Part 3 NHC Monitoring & Evaluation Upgrading Forum Partnerships (eg DCOG, DBSA, NDPG, ULM, 2E Project Resource Kit Research Information circulation Targeted TA at subnational level Guidance to prof & technical teams Implementation of good practice Programme roll-out at scale towards objective targets
24 NUSP and Delivery Agreement progress NUSP roll-out programme to 49 municipalities (across all provinces, about 75% of all informal settlement households) by March 2011 Under construction NUSP Resource Kit and Capacity Building Programme being developed Political buy-in secured through National Deputy Minister as champion, MECs signed Delivery Agreements November 2010 Provinces submitting project plans against Delivery Agreement targets, looking to set up NUSP structures
25 NUSP and Delivery Agreement progress Discussions with 15 agencies and partners about their role in NUSP including HDA, NURCHA, NDPG Alignment with Accreditation process include other municipalities in NUSP, use of NUSP to identify potential accreditation candidates Discussions with community structures, NGOs and CBOs on participation Inclusion of NUSP within Delivery Agreement Programme Management Unit Technical challenges of next stage project identification (provincial and municipal), project-level SHS transformation plans, technical assistance at scale
26 Resources to support implementation subject to national budget processes Major commitments by NDHS and National Treasury: Re-directing Human Settlement Development Grant provincial allocations towards Delivery Agreement priorities Informal settlement upgrading including within National Priority Programmes (Minister s 20% reservation in HSDG) Creation of new Urban Settlements Development Grant (MIG Cities replaced, plus contribution from HSDG) Allocation for NUSP from NDHS operations budget
27 Thank You
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