Monday, May 21, 2012

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What is ailing low-cost housing delivery in the EC?

Frederick Kusambiza

Housing delivery in the Eastern Cape is under the microscope, having once again attracted the scrutiny of the national Department of Housing and the media.

A lot has been said by development practitioners over the years regarding the dismal performance of the provincial Housing Department in the delivery of low-cost housing. The intended beneficiaries of these houses have also noted with much frustration the snail’s pace at which attempts are being made to address their plight.

Many intervention strategies, from varied quarters including academicians and development practitioners, have been suggested. Among the many attempted interventions, there have also been various ‘turn-around’ strategies initiated and developed by the provincial department itself.

However, none of these initiatives seem to have been effective, instead attracting criticism over the pace of housing delivery, the quality of the few houses constructed and allocated, the approach used in implementing the housing development process and the concept of the housing subsidy programme in its entirety.

Concerns continue to emerge with continued reports from the media and from the facts being presented. The announcement of the return of R443 million to National Treasury due to under-spending by the provincial Department of Housing earlier this year was yet another indictment to the department’s performance.

Below is a discussion of the key factors that have contributed to the current malaise in housing delivery in the Eastern Cape:

Capacity levels and competence
In 2007 the Department of Public Service Administration announced a worrying rate of vacancy in government institutions nationally and provincially, with the Eastern Cape being one of the departments with serious under-staffing challenges. To its credit, though, it has more recently been trying to recruit new staff.

However, according to the provincial Department of Housing publication Eastern Cape Housing News Volume 1, Issue 2, November 2007 (a journal which urgently needs reviewing before its next publication), the department has increased its human-resource capacity in its offices, mostly with personnel to deal with ‘development research’, a few staff to deal with ‘curbing and mitigating actions’ and none for the ‘implementation of housing development policy’.

The categories referred to here are not mentioned by the department’s journal publication – they are simply used to align the newly filled positions to a logically phased developmental process.

The third category, which is ‘implementation of housing development policy’ in my view, is the capacity that the provincial Department of Housing has been lacking over the years.

This category, from a development point of view, should link provincial government activities to local government. Having this link at full capacity would revitalise the ability of the provincial department to use its allocated budgets as planned. Therefore emphasis should be put on filling positions falling in this category.

Regulations
The regulations required to be fulfilled before low-cost housing development can take place have increased over the past few years.

Examples of these regulations include the increased requirements to get approval from the National Home Builders Registration Council (NHBRC) and the more stringent requirements for conducting environmental impact studies that flow from the new regulations set out by the National Environmental Management Act of 1998.

Some of the studies carried out as a result of these regulations include storm water management studies; 1:50 and 1:100 year flood-line studies; and increased requirements in terms of geo-technical reports needed on the identified site.

As much as these measures are intended to create a sound base to develop sustainable low-cost housing, some of them go way beyond what should be ample for the type and sometimes the size of structure to be constructed.

Often the very bureaucrats responsible for expediting the regulation-enforcement processes do not understand how and when to execute these regulations. This has become a challenge for the responsible local councils – and results in unnecessary delays in the construction of low-cost housing.

Understanding and interpreting the Housing Code
With the inception of the South African Housing Subsidy Programme came the issuing of a Housing Code to be used by all three spheres of government. Through the experience recorded in implementing low-cost housing development, it is doubtful that all the personnel at the provincial Department of Housing and local councils are adequately versed with this Code.

An updated version of the Housing Code, now available to the public, elaborates on the requirements and processes of implementing the development of low-cost housing in South Africa. Holding well-planned workshops to get key bureaucrats in local and provincial government up to speed with the amended Housing Code is essential and should happen periodically.   

Availability of land
The number of new houses that can be built and delivered to beneficiaries depends largely on the availability of land for development. This is true in any province – not just the Eastern Cape.
Regulations set by government in the past should guide local government institutions during the land-acquisition processes. In a Business Times article dated 11 May 2008, the Minister of Housing said local municipalities had not heeded to some of the regulations set out in the past for land acquisition. These included the voluntary moratorium on the sale of municipal land.

Unlike in developed countries, local councils in South Africa no longer acquire housing stock for rental to citizens, but instead sell off stock they might be holding.

It is hoped that Parliament’s approval of the Bill to introduce the Housing Development Agency, a vehicle to help expedite land acquisition for mainly low-cost housing, will make a positive difference. Some NGOs and other stakeholders do, however, feel there are certain issues to be sorted out regarding the agency’s workings.

Lastly, about two and half years ago, the national Housing Minister introduced a new concept in low-cost housing development – Breaking New Ground (BNG) – which involves creating sustainable settlements. The concept, which has yet to be explored fully, deals with considering high-density development in urban areas to avoid sprawling, an integrated housing development approach and the upgrading of existing suitable informal settlements. This is expected to be achieved through urban renewal strategies.  

All the factors mentioned above should certainly contribute to the increased efficiency of performance of the Eastern Cape Department of Housing.

Department management needs to look objectively at its current set-up, work to change the short-comings in the department’s bureaucracy, and seek out partners –  organisations or agencies – within the province who can help enhance the Housing Department’s efforts in housing development.

Local Government Transformer June-July 2008