Faculty of Engineering and the Built Environment which has led to the growth in informal land and housing

formal land and housing market

Department of Town and Regional Planning and was unregulated.
BBURP1
Applied Land Economics for the Built Environment (ALEB101) The common response was to try and stop people moving to cities
by investing in rural areas, to address rural poverty issues and to try
Trends in housing delivery over time and keep people in rural areas. Also included a period of forced
removals. However, this did not stem the consistent flow of people
In many cities in less developed countries, urban dwellers live in to cities and their need for shelter and services.
housing of poor quality and inadequacies in terms of water,
sanitation, drainage, social services, with their health and lives Between the 1960’s – 1980’s
under constant threat. The reproduction of the urban workforce is A number of policy alternatives were looked at – these can be
dependent on what Castells [1983] has called the production, characterised as policies to reduce costs, reduce standards and
distribution and management of “collective consumption” goods, ultimately to reduce the responsibility of the state to provide
namely land, housing, safe water supply and sanitation, health, housing.
education and public transport.
Examples of this were:
However, the policy around the responsibility of who should deliver a] The promotion of self-help housing – lower the labour costs/
and how it should be delivered of these collective consumption cheaper building processes. Problems associated with this
goods has shifted considerably over the last 50 years. This is within approach are that it was still an expensive process, as management
the context of increased populations in urban areas and thus costs did not go down at the same time as labour costs.
rising needs, and increasingly limited resources.
b] Reducing standards – cheaper building materials and designs,
In the 1950’s – 1960’s alternative technologies eg, brick making, solar energy, starter /
General belief that the state should be responsible for the provision core houses which people could add to.
of housing and services. Governments attempted to deliver low
cost, conventional housing to growing urban populations. c] From the 1980’s – phase of reducing state provision and shift to
what has become known as “enabling shelter strategies”. Eg. the
By the 1970’s promotion of site and service schemes by governments and
Clear that the strategy was failing to provide sufficient units to international donors such as the World Bank. The major problem
meet the housing need, and the question of affordability of urban was access to land – often site and service schemes were located
poor emerging. Poor – building informal settlements and slums,

1
on city outskirts far from jobs, services, amenities and with only
basic services. Development theory and housing delivery over time

Site and service schemes gave way to the promotion of “upgrading”

of existing informal settlements based on the notion that it was
cheaper and easier to provide people with basic services rather
PUBLIC / PRIVATE
than move them against their will. MODERNISATION Design/site planning/infrastructure
1950’s 1970’s
This is the present scenario today with variations on how this
“enablement” occurs, and what the emphasis is on. For eg.
upgrading services, access to housing finance, use of the informal SITE AND SERVICE
sector, promoting skills development, support for small enterprises, Community participation /
BASIC NEEDS
appropriate technology
etc. However, this has failed to keep up with demand. This has 1970’s
resulted in inflated land and housing costs, thus making shelter a
costly expenditure item for the urban poor. The issue of choice is
also important in dealing with the shelter needs of the poor, eg. UPGRADING
access to housing types, rental accommodation etc. STRUCTURAL
ADJUSTMENT /
Linked with the physical delivery of housing, is access to urban NEO LIBERALISM ENABLEMENT
1980’ - current
services. Informal settlements pose an environmental health risk,
linked to the context of poverty. New approaches by city planners
and managers includes providing urban basic services such as water
and sanitation. More recently, a more integrated approach has No. of people
who benefit
emerged which includes health, education and encouraging
entrepreneurial development.

(Ref: N. Hamdi, N. 2003. Planning Africa Conference Proceedings)

2
Reproduction Space: Housing 3. Housing types
• Conventional housing – upper to middle income housing –
A. Shelter Single dwelling single plot, Single-Detached, Stick-Built
• Services Row Houses (Socialized Housing)
• Community and human development Modular Homes duplex, triplex, quadriplex
• Role of the market Apartment Complex
• Housing types Townhouses (Medium-rise)
High-rise Condominium
B. Homeownership Manufactured Housing Pre-fabricated
• Ideological and political considerations Mobile Housing (trailer vans)
• Investment opportunities and potential Converted-use Property
Cooperative Housing Timeshare?
• Security
• Self help “core” housing
C. What do we consider in terms of housing: • Site and service
• Land: infrastructure and shelter, utilities and facilities • In-situ upgrading
• Cost: affordability, optimal investment, accessibility to finance • Rental stock
• Standards: design, density, town planning and development • Social Housing
controls

1. Role of the private sector: Background to new housing policy in SA:

• Linked to supply and demand
• Family life cycle • De Loor Report (1992) – established context of backlogs in
housing and affordability issues
2. Role of the public sector • National Housing Forum – 1993
• Market forces are partially replaced by planning and • 1994 First democratic elections held in south Africa
redistribution of state resources • RDP – Adopted in 1994 (Influenced by elements of the Freedom
• Public housing provision Charter – 1950’s)
• Affordability issues • Botshabelo Summit – established the foundations for the new
• Scale of delivery housing policy

3
• Housing White paper / Urban and Rural Development 5. Rural Housing:
Framework - 1994 2/3 of 17,1 million people who live below the PDL live in rural areas.
• New Constitution – Act 108 of 1996 : Bill of Rights, Housing as a Of the approx. 14,5 million people in rural areas, the greatest
basic human right, concurrent competencies of national, proportion live outside of commercial farming areas in both formal
provincial and local government and informal housing but inadequate access to potable water and
• Gear – 1995 security of tenure ---- these are high priorities.
• Housing Act – 1997 6. Farm worker housing:
• Breaking New Ground - 2004 Aprrox. 1-1,5 million households, approx. 20 140 farm worker
• National Housing Code - 2009 residences

SERVICES
White Paper on Housing Policy – South Africa
1. Water Supply:
(Articulated in the Housing Code: Framework for a National Housing ¼ of all functionally urban households do not have access to
Policy) potable water supply
2. Sanitation:
Some figures (1995): Approx. 48% of all households do not have access to flush toilets
3. Electricity:
1. Urban Formal Housing:
Approx. 46,5% of all households are not linked to electricity supply
Approx. 61% of urban households live in formal housing [formal
grid
housing stock: 3,4 million units]
4. Socio-cultural Amenities
2. Urban Informal Housing:
Aprrox. 1,5 million informal housing units. Includes 620 000 No accurate statistics are available with regard to: schools, health
serviced sites [IDT projects] plus 100 000 unused serviced sites care, sports facilities, cultural and community facilities.
3. Hostels:
Aprrox. 5,2% of households live in private sector, grey sector and OTHER CONSTRAINTS ON RESOLVING THE CRISIS:
public sector hostel accommodation 1. Scale of the Housing Problem:
4. Squatter Housing: Geographic disparities: housing conditions between urban and
Approx. 13,5% of all households [1,06million] live in squatter rural, different urban areas and different provinces
housing nationwide. Approx. 150 000 new squatters added per Low incomes: affect a large proportion of the population
annum
2. Structure of SA human settlements:
• Concentrated need for housing in urban areas

4
• Inefficient and inequitable cities • Land use planning was inappropriate
• Dispersed rural settlement structure • Land invasions
3. Inherited Institutional Framework: • Land title
• Duplication of housing institutions and funding mechanisms
[Racially and geographically] 7. Housing Construction Sector
• Inefficiencies and wastage • Inadequate development framework [DFA and new spatial
• Inability to carry out responsibilities planning legislation should sought out some of the problems]
• Slow process of local government transition • Limited capacity --- human and materials
• Incompatibility of demand and supply
[Insert Annexure A on Legislation administered by the Department 8. Sociological issues
of Housing] • High expectations
• Crime and violence
4. Policy Framework • Lack of consumer protection
• Lack of overall housing policy / strategy of the past has resulted • Poor consumer education
in a breakdown in delivery • Perceptions of housing
• Multiplicity of legislation • Culture of non-payment
• Special needs housing – old age homes, frail care, homeless
5. End -user Finance and subsidies shelters
• Poorly focused use of housing funds under the previous • Circular migration and dual households
government • Hostel accommodation
• Duplicate and poorly targeted subsidies • Single headed households on the increase
• Lack of end-user finance • Cultural and legal impediments of women owning housing
• Traditional tenure systems
6. Land and Planning issues
• Notion that land is not and infinite and cheap resource and that 9. Economic issues
there needed to be a change in approach: • Low rates of growth, declining per capita income, high
• Lack of a coherent policy on land unemployment, unequal distribution of income, etc…
• Land identification processes needed to be established
• Constraints on land assembly for low income housing in [Refer to Annexure B on Housing and the Economy]
particular

5
National Housing Strategy and social amenities. All South African’s will have access on a
progressive basis to :
• Initial policy focus was on addressing backlogs and setting
targets (from 1995 budget – housing comprised 1% of the • A permanent residential structure with secure tenure
National Budget ---- increased to 3% by 2002, and is currently at • Potable water, adequate sanitary facilities [waste disposal], and
?% of the national budget) domestic electricity supply
• Approx. 45 – 55% of households in need of housing are unable
to afford or access credit. They are dependent on limited National Housing Goal:
resources and state capital subsidies
• State can assist in the form of a limited one off capital subsidy To increase the share of the total state budget to 5% to deliver
[presently R28 000 on a sliding scale. For those earning housing at a rate of 350 000 units per annum, within a 5-year period
between R0 – R1 500, and those earning between R1 500 – R3 to reach a target of 1 million houses in 5 years.
500 provided they contribute through sweat equity]
Housing Policy
• The fundamental challenge is economic growth and
employment [takes time]. There are also fiscal constraints. 1. Sovereignty of the Constitution → Provincial governments
• Housing policy and delivery systems can contribute to Schedule 6 Rights
employment creation and economic growth, but it cannot be 2. Housing a basic human right
the prime drivers of such growth 3. Role of the state --- redress imbalance of the past
• No single formula for solving SA's housing problem → requires 4. People cantered development:
a diversity of resources, innovation, energy and initiatives of  Encourage and support initiatives emerging from
individuals, communities, the state and the private sector, i.e. a communities
multi-faceted approach.  Appropriate institutional frameworks to drive the
• The state will assist at access to financing level [the subsidy] process
thereafter it is up to the individual to top up. 5. Freedom of choice
6. Non-discrimination
7. Housing and economic empowerment
National Housing Vision • Support local initiatives
• SMME’s
• Partnerships
• To establish viable, socially and integrated communities with
access to economic opportunities as well as health, education

6
Financing  National legislation in parallel to provincial laws as an
• National Housing Finance Corporation [former RDP bank] alternative [more appropriate method of land delivery]
• Personal savings
• Subsidies Government:
• Institutional arrangements --- rationalizing government 1. National Ministry and the Department of Housing
statutory and parastatal frameworks to stop leakages and 2. Provincial Government
wastage of resources 3. Category A, B and C municipalities
4. National Housing Board [Advisory - stakeholders]
Subsidies include: 5. Provincial Housing Boards
 Ownership subsidies
 Collective ownership subsidies Private Sector:
 Social housing subsidies  Suppliers of materials
 Rental subsidies  Construction sector
 Consolidation subsidies [site and service schemes]  Financial sector
 Employers
Qualification criteria for subsidies:
 Be a South African citizen. Community and Civil Society:
 Be contractually capable.  Civics
 Be married or habitually cohabit with a partner.  NGO's / CBO's
 Be single and have financial dependants.
 Earn less than R7 000.00 per month per household. RECENT ADDITIONS TO POLICY FOCUS IN HOUSING:
 Be a first time government subsidy recipient.
 Be a first time home owner. Recent policy announcements [from August 2004] include a shift in
 Single Military Veterans without financial dependant. focus from merely dealing with housing and services backlogs in
 Single aged persons without financial dependant. settlements on the periphery of cities, to one that begins to address
and change the settlement patters inherited from apartheid
Delivery: planning. There is also a major shift from a supply side to a demand
 National uniform norms and standards in relation to land driven approach articulated through the Breaking New Ground
developments policy, and a stronger focus on national planning in establishing
norms and criteria for future human settlement patterns in South
Africa.

7
The policy reforms announced include: - Enhanced role of the private sector
- Improved construction capacity
1. Breaking New Ground -The collapsing of the subsidy bands
2. The National Housing Code - The provision of housing finance
3. Inclusionary housing policy - The provision of project management and other support
4. Draft Farm-worker Housing policy - Stimulation of employer-assisted housing
5. Policy on Urban Greening (and Food and Trees for - Improved linkage of the primary & secondary residential property
Africa) market
6. Policy on Children with Special Housing Needs
(pending)  by 2014, greater involvement on the part of the private sector
through the financial services charter, 20% “Social
Responsibility Deal”
Breaking New Ground (BNG) has the following guiding principles:
Poverty alleviation  building quality houses- a shift from RDP type of housing,
Combating of crime allowing owners of state subsidized housing to sell off their
Fostering social cohesion houses in 5 years – an attempt to develop a “housing market” at
Establishment of a single residential property market the lower end of the housing market.
Support job creation
Support asset creation  The national department has also developed policy guidelines
Leveraging economic growth for social housing (2003),
 A change to the single subsidy system, and introducing a three-
tier subsidy for different income groups, redefining the role of  the national Housing Programme for Housing Sections of
the housing department to include a broader view of the Integrated Development Plans (2006) for the integration of
residential market, focusing on rental and rent-to-buy options housing with IDP’s.
for beneficiaries, and eradicating informal settlements from SA
cities through the Plan for Human Settlement to eradicated  The approach relating to inclusionary housing is new in South
informal settlements, Africa and aims to provide the department with a set of
instruments to make the urban environment more inclusionary,
 To establish improved residential property markets through: with the objective of creating more integrated neighbourhoods
- the expansion of the scope of the housing mandate both in terms of race and class, and should contribute to the
- Shift from product uniformity to demand responsiveness supply of affordable housing, amongst others.

8
 Emergency housing to deal with natural disasters The Breaking New Ground Policy identifies sustainable human
settlements as:
 Linkages to the National Spatial Development Perspective
(NSDP) which identifies the following elements: “well-managed entities in which economic growth and social
development are in balance with the carrying capacity of the
The construction of new spatial urban and rural forms to include natural systems on which they depend for their existence and result
the following: in sustainable development, wealth creation, poverty alleviation
and equity”.
 well connected settlements,
 higher densities to achieve the necessary scale economies The following potential criteria for sustainable settlement are
relating to transport and services, identified by the BNG:
o Development of longer term plans for development beyond
 more efficient use of infrastructure and bulk services,
housing
 finding well-located land for new settlements, o Effective use of existing policy and process
 identifying infill areas in existing cities and towns to achieve o Effectiveness in promoting new policies or practices
higher densities and intensity of land use, o Interface with urban renewal & inner city regeneration
 to achieve racial and social integration by promoting mixed programmes
income areas, o Durable linkages between the housing programme and spatial
planning
 and to support better access to economic opportunities through
o Holistic development
mixed land use,
o Overcoming the legacy of apartheid spatial and socio-economic
 for the objective of creating viable, and sustainable human exclusion
settlements that incorporate the concepts of home, work, o Integration between race and income groups
leisure, sport, neighbourhood development, social interaction, o Effective leveraging of financial resources for housing and urban
access to social services, a safe environment in which to raise development
families and in which these activities can take place. o Unblocking of delivery bottlenecks
o Building capacity
o Partnerships between the state and other stakeholders
o Responsiveness to the true needs of the community
o Shift from product uniformity to demand responsiveness
o Inclusion of products for several markets

9
o The provision of project management and other support • Restoring dignity to0 military veterans through decent housing
o Success in obtaining well-located land for housing projects • Accelerated housing delivery in rural areas
o Appropriate densification
• Accelerating the hostel redevelopment and upgrade
o Development of social and economic infrastructure
programme
o Transport infrastructure geared to compaction and integration
o Energy efficiency and environmental sustainability • Creating rental / social housing opportunities
o Alternatives to individual ownership • Building the capacity of housing stakeholders (especially
o Improved quantitative & qualitative provision of education, municipalities)
social facilities, amenities • Promotion of homeownership
o Developing life enhancing environments, such as safe and
• Provision of housing for vulnerable groups including those
usable public spaces
o Mitigation of informal settlements affected by HIV/AIDS
o Progressive eradication of informal settlements • Ensuring the provision of incremental housing, and
o Densification and integration • Implementing the Financial Services Market Programme. 1
o Enhanced spatial planning
o Enhancement of the location of new housing projects KZN Sustainable Human Development Strategy must aim to ensure
o Supporting to urban renewal and inner city regeneration integrated planning, spatial restructuring and a service delivery
o Development of social and economic infrastructure approach to be adopted by all Departments.
o Enhancement of the housing product
The objectives of the KZN SHS include:
At a KNZ provincial level, the following elements support the
principles contained in the BNG policy: • To have a single point of reference for KZN Provincial
Departments to use in their integrated planning, spatial
The 2008 – 2011 Annual Performance Plan of the KZN Department
restructuring and service delivery processes in the creation
of Housing confirms the following strategic focus areas in which a
sustainable human settlement strategy is framed: of sustainable human settlements;
• To ensure sustainable resource use and management;
• Eradication of slums in Kwa-Zulu Natal by 2014 • To ensure the management of polarities;
• Strengthening governance and service delivery
• Ensuring job creation through housing delivery 1
KZN Housing Annual Performance Plans

10
 • To move towards a "demand driven and supply negotiated" The Provincial Department of Housing’s strategic objectives
approach to service delivery; demonstrate a strong alignment with the KZN Provincial priorities.
• Creation of an enabling environment for citizens to engage
with government;
Weaknesses of the National Housing Policy:
• To ensure a developmental strategy instead of a welfare
strategy; 1.NATIONAL BUDGET:
• Restructuring of the apartheid settlement patterns. 2 Is housing one of the national priorities/ or one of many competing
priorities?

The specific objectives of the KZN SHS strategy will: 2.HOUSING LINKED TO THE ECONOMY:
At the level of the economy, there is a perception of housing being
• Support the economic corridors and nodes provided for in a lead sector --- with multiplier effects. This is not happening
the PSEDS because of the increasing issue of poverty and disparity between
rich and poor. I.e. the income gap is widening.
• Identify the relevant stakeholders and their roles in the
implementation of the strategy
3.MEETING BACKLOGS:
• Facilitate the re-direction of public and private sector In terms of meeting backlogs, the current policy is only beginning to
economic opportunities and investment patterns make an impact on the legacies of the past. However, the spatial
• Ensure sustainable resource use and management form and location of new developments resembles the past
• Ensure integrated planning and service delivery by all KZN practices of housing delivery.
Provincial Departments, Municipalities and other relevant
4.THE ROLE OF THE STATE VS THE MARKET:
stakeholders Has the NHP shifted the responsibility of the state to the
• Recommend the development of a legal framework to market? The need to understand the supply side vs. demand
ensure compliance by all relevant stakeholders.3
3
Cabinet Cluster Terms of Reference for Sustainable Human Settlement for
KwaZulu-Natal (2007)
2
Cabinet Cluster Terms of Reference for Sustainable Human Settlement for
KwaZulu-Natal (2007)

11
driven / negotiated approach to housing delivery. What opportunities does the new housing policy
framework provide?
5.MEETING EXPECTATIONS:
Does the NHP meet the expectations of people and is it likely 1. The development of a new housing market
to within present budgets?  Provides access to credit
 Provides access to other economic opportunities
6.LINKAGES TO URBANISATION AND FUTURE  Investment opportunities
CONCEPTIONS OF CITIES:
1ST World vs. 3rd World conceptions of urbanisation → 2. Downstream industries are kept alive
densification, compactness, fixing the urban edge vs. sprawl  For consumer goods such as fridge's, stoves, furniture
and the apartheid city etc.
 Financial sector including insurance, banking, micro
7.DEFINITION OF HOUSING: lenders etc…
As a formal structure --- limitations, linked to the question of  Service sector including electricians, plumbers, builders,
affordability, supply of services, ability to pay for services, etc…
poverty.
3. Potential for employment creation, development of SMME
8.RURAL HOUSING: sector
Linked to the question of tenure and the powers of chiefs.  Development of small business
 Capacity building
9.BUREACRACY:
Capacity of officials and the need for training e.g. housing 4. Sociological aspects
service centres  Sense of "place"
Red tape  Community spirit
Corruption  Citizenship
 Development capacity enhanced
 Democratic principles enhanced through participatory
practice

12
Quantifying the current backlog and challenges: empowerment of communities, setting up co-operatives which
provides employment, the potential for micro-enterprises to
 The housing backlog remains at approximately 2,2 million new develop are also present, developing a new housing 'market',
housing with 204 000 units required every year. supporting downstream industries, etc….
 However in the last 25 years just over 2 million houses have
been built. Chapter 8 of NDP (2012) identifies the following:

More recent (2010) policy shifts include: Between 1994-2010- 3 million subsidised housing units built, access
to basic services has expanded – 97 % of households have access to
o improving effectiveness of local government, infrastructure and water and almost 75% have access to sanitation and electricity.
human settlements through IGR and making local government
work, also performance contracts However, daily challenges of access to adequate housing, reliable
o upgrading well located informal settlement, provide proper electricity, safe water, accessible public transport and dignified
services and land tenure to at least 500 000 households by 2014 sanitation facilities, especially for poor rural, and peri-urban
(125 000 to be upgraded annually over 4 year period through communities.
the National Upgrading Support Programme)
o setting aside 6 000 ha of well located land for low income and Underlying causes: affordable services for poor households, poorly
affordable housing managed municipalities, insufficient “bulk services” capacity.
o Developing comprehensive rural development programme
o The use of EPWP to address joblessness amongst most NDP critique: post 1994 housing delivery model has produced a
vulnerable dependent and inactive citizenry, passive recipients of government
o Decent sustainable human settlements delivery (debatable), many are not finding own solutions,
o Affordable rental housing partnerships etc to improve neighbourhoods, etc.
o Affordable housing finance – allocation of R1 billion
o Land assembly for human settlements The housing capital subsidy programme has benefitted many
households, but current housing backlog is now greater that it was
Whilst the ministry of housing has delivered many houses, more so in 1994. One of the unintended consequences is that it has
than the previous government, the quality of housing is poor. reinforced apartheid geography, focused mainly on individual
Opportunities do exist, such as building community capacity and houses, ignored public spaces, built on cheapest land, usually in
developing new skills, promoting community spirit, citizenship, worst location, uniform housing developments, insufficient choice
communal saving schemes that by-pass banks and financial charges,

13
in relation to housing and tenure types to support the needs of Recent Policy initiatives
different households (supply driven vs demand).
2014/15 Two main criteria for human settlement proposed –
Master Spatial Plan integration and impact. Spatial prioritisation in terms
NDP reinforces the BNG and Outcomes 8 policy direction, but for Human of investment areas, intervention areas and areas of
suggests further shifts: Settlements deficiency (conditions of deprivation exist)
(MSP:HS)
O The need to deal with deficiencies in the implementation
2011/ updated 2016 First comprehensively planned multi-modal, integrated
system and produce viable human settlements National Transport and sustainable framework for providing transport,
O Need to review the capital subsidy instrument for achieving Master Plan infrastructure and services
(NATMAP)
the objectives of human settlement 2015 Integrated Seen as ‘New Deal” for cities and town, using growth
O Need to develop better instruments and mechanisms for Urban Development model of compact, connected and co-ordinated, with
informal settlement regularisation Framework (IUDF) key objective – spatial transformation. Focus on cities
and towns with strategic goals of spatial integration,
O Affordable inner city housing as part of broader urban inclusion and access, sustainable economic growth and
renewal strategy needs better focus, as opposed to easier development and shared governance. Identifies 9 policy
levers to achieve vision
option of “greenfield” approach 2014/15 Built Instrument from National Treasury to support spatial
O A more flexible approach to financing and regulation in Environment coordination of multiple infrastructure grants for
relation to household mobility needs to be addressed. Performance Plan metro municipalities for the purpose of creating integrated
(National Treasury) cities to achieve impact
Integrated Energy Provides a framework for energy mix and sustainable use
In addition the NDP speaks to overarching normative principles for Plan and 2011 of resources
Integrated Resource Purpose is to secure sustainable provision of energy or
spatial development that include: Plan: 2010-2030 socio-economic development
o spatial justice, National Spatial This is supported through a set of five spatial
o spatial sustainability, Development development frames to inform and direct all future
Framework infrastructure investment and spending. They
o spatial resilience, encompass:
o spatial quality and NSDF 2050 Urban Regions,
Cluster and Development Corridors;
o spatial efficiency. Productive Rural Regions and Rural Development
Anchors;
National Ecological Infrastructure System;
National Connectivity Infrastructure Networks; and
National Social Service Infrastructure System

14
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