The Presidency
Department of Performance Monitoring and Evaluation
Performance of the Department of Human
Settlements towards the Achievement of
Outcome 8
Presentation to the Human Settlements Portfolio Committee
National Assembly
20 October 2011
Introduction
 The President created the Department of Performance Monitoring and Evaluation in the
Presidency to:

Facilitate the development of plans for the cross cutting priorities or outcomes of
government and monitor and evaluate the implementation of these plans

Monitor the management performance of individual national and provincial
government departments and municipalities, in partnership with the Offices of the
Premier, which will be starting in November 2011

Monitor frontline service delivery in partnership with the Offices of the Premier

Carry out evaluations

Promote good M&E practices in government

Implement interventions to address blockages in delivery, in partnership with
delivery institutions
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The outcomes

Aim is to improve service delivery by:
1.
Introducing whole-of-government planning linked to key outcomes, clearly
linking inputs and activities to outputs and the outcomes
2.
Implementing the constitutional imperative for cooperative governance by
negotiating inter-departmental and inter-governmental delivery agreements for
the outcomes
3.
Increasing strategic focus of government
4.
Making more efficient and effective use of limited resources through
introducing more systematic monitoring and evaluation
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The 12 outcomes
1.
BASIC EDUCATION: Quality basic education
2.
HEALTH: A long and healthy life for all South Africans
3.
SAFETY: All people in South Africa are and feel safe
4.
EMPLOYMENT: Decent employment through inclusive economic growth
5.
SKILLS: Skilled and capable workforce to support an inclusive growth path
6.
ECONOMIC INFRASTRUCTURE: An efficient, competitive and responsive economic
infrastructure network
7.
RURAL DEVELOPMENT: Vibrant, equitable, sustainable rural communities contributing
towards food security for all
8.
INTEGRATED HUMAN SETTLEMENTS: Sustainable human settlements and improved
quality of household life
9.
LOCAL GOVERNMENT: Responsive, accountable, effective and efficient Local Government
system
10.
ENVIRONMENT: Protect and enhance our environmental assets and natural resources
11.
INTERNAL AND EXTERNAL RELATIONS: Create a better South Africa, a better Africa and a
better world
12.
PUBLIC SERVICE: An efficient, effective and development oriented public service and an
empowered, fair and inclusive citizenship
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Delivery Agreements
A Delivery Agreement is a charter between all the key stakeholders who need to work
together to achieve the outcome.

Performance Agreements between President and outcome coordinating Ministers
requested them to work with other key stakeholders to develop detailed Delivery
Agreements for each outcome
 Delivery Agreements describe key activities, sub-outputs, outputs, indicators, and
targets , identify required inputs and clarify roles and responsibilities of each key
body which contributes to the achievement of the outcome

Performance Agreements between President and other Ministers also requested them
to work with the coordinating Ministers on relevant delivery agreements

New National Treasury guidelines for strategic plans indicate that departments’
strategic plans and APPs must reflect their commitments to delivery agreements – will
be monitored by the Auditor General and should also be monitored by Parliament
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Department of Human Settlements role in relation to the
Outcomes
Outcome 8:
Integrated human settlements: sustainable human settlements
and improved quality of household life
•
Output 1: Accelerated delivery of housing opportunities
•
Output 2: Access to basic services
•
Output 3: Land assembly and effective utilisation
•
Output 4: Improved affordable property market
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Overall progress against the outcomes
Output 1: Accelerated delivery of housing opportunities
Colour
Code
1.1 Upgrading of 400 000 households in informal settlements with access to secure tenure and
basic services
1.2 Implementation of the National Upgrading Support Programme for informal settlements
1.3 Provision of 80 000 well- located rental accommodation units by 2014
1.4 Accreditation of 27 municipalities to perform the housing function
Output 2: Access to basic services
2.1 Household access to basic water should be 100% by 2014
2.2 Household access to basic sanitation should be 100% by 2014
2.3 Household access to refuge removal should be 75% by 2014
2.4 Household access to electricity should be 92% by 2014
Sub outputs which are on track and require no major interventions
Sub outputs which are either proceeding slower than targeted or which face impediments
requiring intervention
Sub outputs which are either substantially behind timelines or which face impediments which
will require urgent intervention at the Ministerial or Cabinet level
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Output 3: Land assembly and effective utilisation
Colour
Code
3.1 Release of 6250 ha of land vested nationally or provincially for human settlements development
3.2 In creased urban densities to 60units/ha
3.3 An approved land use management framework
Output 4: Improved affordable property market – 600 000 housing finance opportunities created
4.1 Establishment and implementation of a Mortgage Insurance Guarantee Scheme to deliver 36% (215
000) of the 600 000 housing finance opportunities
4.2 Revised Finance-lined Individual Subsidy Programme (FLISP) to responsive to the challenges in the
affordable (Gap) market
4.3 Formulation of a policy position regarding the introduction of a long term fixed interest rate
instrument
4.4 134 841 Mortgage and non mortgage loans delivered to the target market – amounting to 22% of
the 600 000 housing finance opportunities
4.5 NURCHA to issue loans to facilitate construction finance of 6686 units within the affordable housing
market (1.1% of the 600 000 housing finance opportunities)
4.6 Housing finance opportunities contributed by sector stakeholders to together with the FLISP
initiative provide for the remaining 41% of the 600 000 housing finance opportunities
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Progress on Outcome 8 Output 1: Accelerated delivery of housing opportunities
Sub-output
Targets
Progress reported
up to March 2011
1.1 Upgrading
of households
in informal
settlements
Upgrading of 400 000
households in
informal settlements
with access to secure
tenure and basic
services by 2014
A total of 52 383
serviced sites were
delivered in
2010/2011,
exceeding the annual
target and
representing 13.1%
of the 2014 target
Good progress has been made with exceeding the initially low target of 20 000
households in the first financial year. The targets are progressively higher over the
outer years.
In addition 55 008
households were
provided with top
structures
A Programme Management Unit to support informal settlement upgrading is in the
process of being established in the NDHS, and is to be encouraged. A Task Team on
Informal Settlement Upgrading has also been established which will also assist in
rationalising the efforts of several agencies (including non governmental) so as to
optimise programme rollout.
2010/2011 target:
Upgrading of 20 000
households in
informal settlements
with access to secure
tenure and basic
services
In first quarter of
2011/12 financial
year a further 19 708
serviced sites were
delivered
DPME comments
However, these targets could be at risk if provincial budgetary commitments are not
made to mach the higher targets in the outer years.
Meeting the targets in 2014 would also require direct management and dedicated
technical support for provinces and municipalities by the NDHS.
Furthermore, reaching planning/agreements on the funding alignment (between
Urban Settlement Development Grant and Human Settlement Development Grant),
and targets for informal settlement upgrading between provinces and municipalities
are critical. There is also need to align support for the upgrading of informal
settlements with municipal development plans.
Lastly the mapping and categorisation of all informal settlements in the 49 priority
municipalities (with the largest informal settlement backlogs) should be completed to
improve the spatial understanding of the state of settlements, how upgrading will be
staged, financed and managed.
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Sub-output
1.2 Implementation
of the National
Upgrading Support
Programme for
Informal Settlements
Targets
49 municipalities to be
supported by the NUSP
programme
Progress reported up to March 2011
NUSP has interacted with 40 of the 49
municipalities
Gauteng and Northern Cape have
9 Provincial NUSP structures agreed to establish provincial NUSP
established by end of
structures
2011/12
DPME comments
Good progress has been made by the NUSP programme
in engaging 40 municipalities with capacity building
support frameworks and establishing the 2 provincial
NUSP structures within the 2010/2011 financial year.
However, the agreement with Cities Alliance and World
Bank to provide technical expertise lapsed on June 2011.
This requires that the National Department of Human
Settlements (NDHS) establish new contracts with the
NUSP core team to ensure programme scale up.
Furthermore the NDHS should ensure that sufficient
funding is available for the roll out of the programme.
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Sub-output
1.3 Provision of 80
000 well located
rental
accommodation
units by 2014:
•24 312 Social
Housing Units
•20 000 Communal
Residential Units
•8 497 Institutional
Subsidy units
•26 600 Private
rental units
Targets
Targets for 2010/11:
(1) 2917 Social Housing Units
(2) 3000 Communal
Residential Units
(3) 513 Institutional Units
Progress reported up to March
2011
DPME comments
1)A total of 2918 Social Housing Units The Department has met the targets for the 2010/11 financial
were delivered
year.
2)A total of 5168 Communal
Residential Units were delivered
However, budgets have not yet been secured to meet the 2014
targets for social housing, putting the 2014 targets at risk.
3)A total of 569 Institutional units
were delivered
There needs to be policy and programme adjustments to bring
the communal residential units and institutional subsidy
programmes under the Social Housing Regulatory Authority’s
ambit of responsibility. This is necessary to ensure regulatory
oversight.
In first quarter of 2011/12 an
additional 1411 social housing units,
1342 communal residential units and
49 institutional units were delivered. The Department also needs to complete a policy framework for
private rental, including backyard rental housing.
Furthermore, the Department has to develop a clearer
monitoring model to understand the contribution of the private
sector to the target rental market.
DPME is encouraged by the Department’s process to establish a
programme management unit and a rental housing task team.
This will draw all the role players into a joint effort to achieve
the overall target.
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Sub-output
1.4 Accreditation
of 27
municipalities to
perform the
housing function
Targets
Accredit 6 metros to level 3
by 2014
Accredit 21 additional
municipalities to level 2 by
2014
Progress reported up to March
2011
6 Metropolitan Municipalities and 2
District Municipalities received their
level 2 accreditation certificates in
March 2011
In the first quarter of the 2011/12
financial year 5 municipalities have
been assessed by the Municipal
Capacity and Compliance Panel and a
further 11 have been scheduled for
assessment
DPME comments
Given the accreditation of 6 municipalities in 2010/11 to level 2
as well as the recent assessment processes carried out it is likely
that the 2014 targets will be met.
However , the Department needs to resolve issues related to
human resources, systems (Housing Subsidy System) and
related budgets from provinces to municipalities in order to
confidently allow for the accreditation targets to be met.
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Progress on Outcome 8 Output 2: Improved access to basic services
Sub Output
2.1 to 2.4 Improved
access to basic
services
Target
• Household access to
basic water should be
100% by 2014
• Household access to
basic sanitation should
be 100% by 2014
• Household access to
refuge removal should
by 75% by 2014
• Household access to
electricity should be
92% by 2014 –
2010/2011 target
(provide electricity to
150 000 households)
Progress: Up to March 2011
• 95% of households have
access to basic water
• 82% of households have
access to basic sanitation
• 71.3 % of households have
access to refuge removal
•
Out of targeted 150 000
households 143 524 were
electrified
DPME Comments
It needs to be noted that the Department of Co-operative
Governance is co-ordinating these sub-outputs. Other line
departments are, however, responsible for implementing
the programmes to realise the targets.
It appears that good progress has been made against the
targets set for 2014.
However, the reported progress is against particular
departmental norms. Different departments are using
different definitions (norms and standards) to measure
access to basic services. This means that there may be
different calculations of the extent of the backlogs and the
progress made to date.
There is a need for this to be addressed by the relevant
departments. The Sustainable Human Settlements and Basic
Services Task Team that has met on more than one occasion,
but has had limited success in addressing these matters.
The July Cabinet Lekgotla decisions regarding need for more
co-ordinated and accelerated infrastructure delivery in
priority areas will hopefully reshape the programme and
activities of the Sustainable Human Settlements and Basic
Services Task Team. But for this to occur the Joint Work
Programme of the Task Team will have to be reviewed.
The report requested by the South African Human Rights
Commission on the national state of sanitation will also
assist in determining a common baseline for the rolling out
of sanitation programmes.
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Progress on Outcome 8: Output 3: Land assembly and effective utilisation
Sub output
Target
3.1 Release of Release of 6250
land vested
hectares of land by
nationally or
2014
provincially for
human
settlements
development
3.2 Promote
Increase densities to
increased
on average
urban densities 60units/hectare by
2014
Progress up to March 2011
DPME Comments
The Housing Development Agency (HDA) has
acquired 309 properties (812,8 ha) including
548 ha from Transnet
While there has been progress in identifying and
acquiring properties, there is concern that the
Department of Public Works and other associated public
land holding agencies are not prioritising the processing
An additional 12 000 ha has been indentified for of land identified with HDA quickly enough.
release to the HDA in 2011/2012.
(A total of 4 944.5 ha of private and public land
has been acquired by Provincial Departments of
Human Settlements. This has not been clearly
disaggregated between public and private land).
The Department should disaggregate the land acquired
by provincial departments into that acquired from public
land holdings and that acquired from private land
holdings.
There is furthermore a need for the HDA to conclude
technical support arrangements with provinces and
municipalities for the obtaining of land and the
finalisation of the land financing agreements amongst
government departments.
The 548 ha acquired from Transnet by the
A policy framework setting out the density preHousing Development Agency (HDA) is from
conditions for land released especially in metros and
Transnet’s non core properties located at
secondary cities still needs to be finalised by the
railway station precincts. It is anticipated that Department. A monitoring mechanism to measure the
this land will be developed based on medium to density performances has to be developed and put in
high densities.
place.
The current density performances of well located BNG
type mixed income projects will have to be evaluated.
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Sub output
Target
3.3 An
Approved Land Use
approved land Management Act
use
management Human Settlements
policy regarding LUM
framework
Progress up to March 2011
DPME Comments
The Department provided comments in the
Spatial Planning and Land Use Management Bill
released for public comments by the
Department of Rural Development and Land
Reform (DRDLR)
Whilst the DRLDR is responsible for preparing the
legislation and regulations, a policy position by the NDHS
responding to the new policy framework and regulations
should be developed.
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Progress on Outcome 8: Output 4: Improved affordable property market
Sub-output
4.1 Development and
implementation of a
Mortgage Default
Insurance Scheme
(MDI)
4.2 Revised FinanceLinked Individual
Subsidy Programme
(FLISP) to respond to
the challenges in the
affordable market
Targets
Develop and implement
the Mortgage Default
Insurance Scheme to
contribute 36% (215 000)
of the targeted 600 000
housing finance
opportunities by 2014
Revised Finance Linked
Individual Subsidy
Programme
To deliver a contribution
towards the delivery of
600 000 housing finance
opportunities by 2014
Progress as reported up to end of March
2011
Approvals from the National Housing Finance
Corporation (NHFC) Board and stakeholders
have been attained.
DPME comments
Not withstanding progress in the
development of the MDI we are concerned
that the level of progress may not allow the
2014 target to be achieved.
Meetings with key stakeholders were initiated
and first round of consultative/advisory forums Banks still have to agree that they will use
the programme to address the affordable
completed.
housing finance challenges and the
Commercial Banks have confirmed their interest administrative arrangements and schedules
for the use of the instrument have to be
in the initiative.
agreed upon.
Final approvals are needed from the National
Treasury and Minister of Finance. Requests for
these approvals have been submitted.
Application for Financial Service Board approval
and South African Reserve Bank recognition to
receive attention in next months
The revised FLISP policy was still in the process Despite progress in revising the programme
it still has to be launched.
of being finalised in 2010/2011.
However, the revised FLISP policy was
approved in July 2011 and is in the process of
being prepared for inclusion in the Housing
Code.
Take up with the banks still has to be
negotiated and programme scheduling and
administrative arrangements agreed upon.
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Sub-output
4.3 Formulation
of a policy
position regarding
the introduction
of a long term
fixed interest rate
instrument
4.4 134 841
mortgage and non
mortgage loans
delivered to the
target market by
the DFIs (22%
contribution
towards the 600
000 housing
finance
opportunities)
Targets
Policy position in place by 2014
Progress reported up to March 2011
DPME comments
No progress has been made as this initiative is dependant Given that the policy will not be
on the success of the Mortgage Default Insurance Scheme concluded by 2014 this will impact
negatively towards achieving the target.
We believe an early policy review
should be undertaken in anticipation in
developing a fully fledged instrument.
•1929 mortgage loans granted by • 709 mortgage loans were granted by the NHFC in
the National Housing Finance
2010/2011. In the first quarter of 2011/12 the NHFC
Corporation (NHFC) by 2014
delivered an additional 795 mortgage loans, (77% of 2014
target has been delivered)
•40 591 incremental loans
granted by the National Housing •1613 incremental loans were granted by the NHFC in
Finance Corporation (NHFC) by 2010/2011. In the first quarter of 2011/2012 3771
2014
incremental loans were granted (13% of 2014 target has
been delivered
•39 332 housing units
contributed by wholesale
•3545 housing units – were contributed by wholesale
funding by the NHFC by 2014
funding by the NHFC in 2010/2011. In the first quarter of
2011/12, a further 7176 units from whole sale funding
•12 837 housing units leveraged were provided (27% of 2014 target has been delivered)
with other funders by the NHFC
by 2014
•1460 housing units were leveraged with other funders by
the NHFC in 2010/2011. In the first quarter of 2011/12 a
•40152 Incremental loans
further 2214 units leveraged with other funders have
granted by the Rural Housing
been provided (28% of the 2014 target has been
Loan Fund (RHLF) by 2014
delivered).
We were initially concerned about
performance based on the 2010/11
progress reports. However significant
progress in the first quarter of 2011/12
indicates that the Development Finance
Institutions (DFIs) could be on target to
realise the 2014 targets.
The rationalisation of the DFI’s into a
single entity and identifying the
stronger programmes should afford
further sector impetus and will support
a concerted engagement with the
banks.
The role of the DFI’s in providing
support to provinces and municipalities
to frame and package integrated
projects should be strengthened.
•40 289 incremental loans were granted by RHLF in
2010/2011. The RHLF delivered an additional 8801
incremental loans in the first quarter of 2011/2012. (The
2014 target has already been exceeded by 8938 loans)
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Sub-output
4.5 National
Urban
Reconstruction
and Housing
Agency
(NURCHA) to
issue loans to
facilitate
construction
finance within
the affordable
housing market
Targets
Progress reported up to
March 2011
Construction finance The National Urban Reconstruction
loans issued for the
and Housing Agency (NURCHA) has
construction of 6686 issued 14 loans amounting to 3051
affordable housing
units in 2010/2011
units by 2014
Due to its recapitalisation (R350
million) and the additional
investment from a private investor
(Cadiz) of R125 million ,it’s
performance has started to improve
in the 2011/2012 financial year.
DPME comments
Due to the recent recapitalisation process great progress has been made with regards
to this sub-output.
However , care should be taken with the DFI rationalisation to ensure that it does not
disrupt this programme.
In the first quarter of 2011/2012
NURCHA issued 5 loans involving
1139 units to developers
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Sub-output
4.6 Housing
finance
opportunities
contributed by
sector
stakeholders
Targets
Housing finance
opportunities
contributed by sector
stakeholders to
together with the
FLISP initiative provide
for the remaining 41%
of the 600 000
housing finance
opportunities
Progress reported up to March
2011
DPME comments
The Department is not adequately monitoring and reporting the progress of banks
making loan finance available in the affordable housing market.
The process of rationalising the Development Finance Institutions’ (DFIs) needs to
include a focus on putting in place arrangements to enable private sector participation.
The NDHS needs to use the Home Loan and Mortgage Disclosure Act as well as existing
reports of financial institutions to come to grips with the current trading performances in
the gap market.
Engagement with public, private, social, community and labour stakeholders should be
arranged to occur in parallel to the ongoing process to rationalise the DFIs.
A more direct engagement with the Private Finance Sector regarding the affordable
housing targets may need to be asserted.
This sub-output is important as all the other initiatives of output 4 still leaves up to 41%
of the target to deliver 600 000 housing finance opportunities unresolved.
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Conclusions

The Delivery Agreements provide for sector -wide engagement processes for coproduction of human settlement development. The Department should use these
more to ensure that targets are met.

DPME and DHS are jointly initiating an evaluation of Outcome 8 interventions :
• Informal Settlements Upgrading;
• Rental/Social housing;
•
Mixed Income with Affordable Housing Loans
So as to:
•
Revise plans to produce more equitable and efficient spatial outcomes
•
Reconceptualise policy and programme environment
•
Reframe fiscal flows
•
Rationalise/build institutional capabilities
•
Frame IGR performance agreements
•
Make recommendations for improving programme management and oversight
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Drawing on the NPC’s Material Conditions Diagnostic for a
Sustainable Human Settlement Vision
A network of matured well established cities is positive for a redirected human
settlements programmatic approach
 However our cities and towns are spatially inefficient and unequal and there is inertia
in spatial form

 Costs of inefficiency on economy and households (>20% of household expenditure)
Migration patterns are complex making planning for human settlement development
challenging
 Urban informal settlements are the primary locations for where the urban and rural
meet

 Because they will continue play this role we need to focus on the management and upgrading
of these settlements
New entrants into cities in the pursuit of work opportunities often require other
housing support options i.e. rental programmes
 At the lower end there is still a total reliance on the subsidy programme
 The policy shift towards a sustainable human settlement approach needs to be
complemented by more detailed work on costs, institutional capacities, and funding
arrangements. This then has to be developed into appropriate support programmes.

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Thank you
Go to http://www.thepresidency.gov.za/dpme.asp for PME documents
including narrative guide to outcomes approach, outcomes documents
and delivery agreement guide
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