Resolving the Service Delivery Backlog at The

View metadata, citation and similar papers at core.ac.uk brought to you by CORE

provided by South East Academic Libraries System (SEALS)

RESOLVING THE SERVICE DELIVERY BACKLOG AT THE

EASTERN CAPE DEPARTMENT OF HUMAN SETTLEMENTS

A treatise submitted in partial fulfilment of the requirements for the Degree of Master of Science in the Built Environment: Project

Management in the Faculty of Engineering, the Built Environment and Information Technology

Zukiswa Hlamandana

Supervisor: Professor W.S. Shakantu

Nelson Mandela Metropolitan University

January 2016 DECLARATION

I, Zukiswa Hlamandana, hereby declare that this is my own work and that it has not been previously submitted to another university or any other institution of higher learning.

Where the work of others has been used, it has been acknowledged.

______

Zukiswa Hlamandana

ACKNOWLEDGEMENTS

To the Almighty - my creator, and the one who was, who is and is to come. You deserve all the glory, honour and adoration. You gave me the strength of mind, motivation and perseverance. You carried me all the way against all odds.

Special thanks to my supervisor Professor Winston Shakantu from Nelson Mandela Metropolitan University - you patiently guided me during my year of study. Your support and patience gave me energy that motivated me to complete my work. May God bless you.

Many thanks to all participants, including: the community of Queenstown and my fellow employees of the Department of Human Settlements in Chris Hani Region, for their openness in expressing their personal opinions and experiences in support of this research.

Special thanks to my mentor, DR. Steven Sena for encouragement, guidance, help and support throughout the study. God bless you.

Special thanks to my parents Ben and Iris Hlamandana for raising me the way you did and my whole family for support, love, understanding and encouragement when I felt like I could not do it. I love you so much guys.

Special thanks to my friends and classmates for their endless love and support, and to my colleagues who stood in for me at work while I was on study leave and my employer for giving me time away to complete this study.

ABSTRACT

The purpose of this study is resolving the service delivery backlog at the Eastern Cape Department of Human Settlements. The problem of service delivery backlogs is not one unique to South Africa but a problem faced by many developing nations. South African government in all spheres still faces a challenge of creating the good life for its citizen, even more on local Municipality as they are government closest to the people and interacts more closely with communities. It is two decades since South Africa became a democratic state and despite promises and efforts to improve service delivery to the public there still exist backlog in service delivery.

In order to address the research problem and to fulfil the research objectives, an in- depth literature study was done on the current state and the role of the Department of Human settlements as well as the current backlog facing the department. Housing process and procedures, challenges, policies, finance, factors influencing housing allocation and delivery were also reviewed. Empirical studies were also performed by means of questionnaires with the community and officials in the Eastern Cape Department of Human Settlements. The literature and empirical study made it possible to identify causes, challenges and impact of service delivery backlog and to recommend possible solutions for resolving service delivery backlogs. These recommendations should be of value to the department and the country as a whole.

In this study research methodology was focused on the research design, target population of study, sampling design and procedures, data collection instrument, data collection procedures, data presentation, analysis and interpretation.

The major findings were identified in the study such as poor workmanship, delays in procurement processes, illegal acts, vandalism, poor planning, finance, project management and quality assurance.

The study also offers recommendations such as revising procurement policy, source more funds from National, employ more qualified staff, involve community and all stakeholders in decision making in order to address the service delivery backlog successfully .All kinds of approaches that the government needs to employ in order to also improve its performance of delivering service to the public in South Africa were determined.

iii

TABLE OF CONTENTS

DECLARATION i

ACKNOWLEDGEMENTS ii

ABSTRACT iv

TABLE OF CONTENTS v

ANNEXURES viii

CHAPTER ONE: INTRODUCTION

1.1 BACKGROUND OF THE STUDY 1

1.2 PROBLEM FORMULATION 3

1.3 RESEARCH QUESTIONS 3

1.4 OBJECTIVES OF THE STUDY 3

1.4.1 Primary objectives 3

1.4.2 Secondary objectives 3

1.5 IMPORTANCE OF THE STUDY 4

1.6 DELIMITATIONS 5

1.7 DEFINITION OF KEY TERMS 5

1.8 ASSUMPTIONS 7

1.9 LIST OF ABBREVIATIONS AND ACRONYMS 7

1.10 ETHICAL CONSIDERATIONS 9

1.11.1 Informed consent 9

1.11.2 Confidentiality 9

1.12 OUTLINE OF STUDY 9

CHAPTER TWO: LITERATURE REVIEW

2.1 INTRODUCTION 11

2.2 SOUTH AFRICA: A COUNTRY OVERVIEW 11

2.2 OVERVIEW OF THE SOUTH AFRICAN HOUSING POLICY 11

2.3 HISTORICAL BACKGROUND TO THE HOUSING PROGRAMME IN THE POST INDEPENDENT SOUTH AFRICA 13

2.4 THE HOUSING NEED AND CURRENT BACKLOG 14

2.5 STATE OF THE DEPARTMENT OF HUMAN SETTLEMENT IN SOUTH AFRICA 15

2.6 THE ROLE OF LOCAL MUNICIPALITIES IN SERVICE DELIVERY 17

2.7 HOUSING DEVELOPMENT PROCESS AND PROCEDURES 19

2.8 ACCESS TO BASIC NEEDS 21

2.8.1 Water Supply 22

2.8.2 Sanitation 22

2.8.3 Electricity 22

2.9 HOUSING ALLOCATION AND DELIVERY IN SOUTH AFRICA 22

2.10 NEW DIRECTION FOR HOUSING POLICY: BREAKING NEW 24 GROUND

2.11 AN OVERVIEW OF THE SOUTH AFRICAN HOUSING POLICY 25

2.12 LEGISLATION AND POLICIES 26

2.13 HUMAN SETTLEMENTS VISION 2030 29

2.13.1 Value of title deed 29

2.13.2 Gap housing 29

2.14 CHALLENGES AND CONSTRAINTS THAT FACE THE NATIONAL HOUSING POLICY 30

2.15 HOUSING SUBSIDIES AND FUNDING 35

2.15.1 Project-linked subsidies 37

2.15.2 Individual subsidies 37

2.15.3 Consolidation subsidies 37

2.15.4 Institutional subsidies 37

2.15.5 Relocation assistance 38

2.15.6 Rural subsidies 38

2.15.7 Peoples housing process 39

2.15.8 Subsidy for people who have disabilities 39

2.15.9 Farm resident subsidies 39

2.16 BUDGET 40

2.17 HOUSING INSTITUTIONS 40

2.17.1 National housing finance corporation 41

2.17.2 National urban reconstruction and housing agency 42

2.17.3 Servcon housing solutions 42

2.17.4 Thubelisha homes 43

2.17.5 Social housing foundation 44

2.17.6 Rural Housing Loan Fund (RHLF) 44

2.17.7 National Home-Builders Registration Council (NHBRC) 44

2.18 SUMMARY 45

CHAPTER THREE: RESEARCH METHODOLOGY 47

3.1 INTRODUCTION 47

3.2 RESEARCH DESIGN 47

3.3 SAMPLING 49

3.3.1 Sampling methods 50

3.3.1.1 Probability methods 50

3.3.1.2 Non-probability methods 50

3.3.2 Advantages of sampling 51

3.4 DATA COLLECTION 51

3.4.1 Questionnaires design and administration 52

3.4.2 Advantages of questionnaires 52

3.4.3 Disadvantages of questionnaires 53

3.5 DATA PRESENTATION, ANALYSIS AND INTERPRETATION 54

3.5.1 Data presentation 54

3.5.2 Data interpretation 54

3.6 SUMMARY 54

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION 55

4.1 INTRODUCTION 55

4.2 DATA FROM THE GENERAL PUBLIC 55

4.3 SERVICE DELIVERY BACKLOG 59

4.3.1 Standard of housing 60

4.3.2 Access to basic needs 62

vii

4.4 DATA FROM THE DOHS EMPLOYEES 63

4.4.1 Background information 63

4.4.2 Challenges faced by the department 63

4.4.3 Impact of backlog on peoples‟ lives 63

4.5 SUMMARY 64

CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS 65

5.1 INTRODUCTION 65

5.2 CONCLUSION 65

5.2.1 Research Findings 66

5.2.1.1 Challenges faced by Department of Human Settlements 67

5.2.1.2 Impact of backlog in people‟s lives 67

5.3 RECOMMENDATIONS 68

5.4 SUMMARY 70

REFERENCES 72

viii

LIST OF FIGURES

Figure 2.1: EC Housing Delivery Expenditure for the 1999/00 to 2007/8 Period 17

Figure 4.1: Age group 56

Figure 4.2: Periods stayed at current residence 57

Figure 4.3: Employment status 58

Figure 4.4: Monthly incomes 59

Figure 4.5: Standard of the house 60

LIST OF TABLES

Table 4.1: Response rate 55

Table 4.2: Gender 56

Table 4.3: Education 57

Table 4.4: Family size 58

Table 4.5: Service delivery backlog 59

Table 4.6: Understanding delivery challenges 61

Table 4.7: Access to basic needs 62

CHAPTER 1

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Provision of houses and basic services to low income groups and the previously disadvantaged population became a priority of South Africa's democratic government in 1994 (Charlton & Kihato, 2006: 254). This led to the development of the housing policy in 1994, which became a framework for the development of the Housing Act of 1997 (Act no. 107 of 1997) aimed at providing adequate housing to poor households and thereby reducing housing backlog (Charlton & Kihato, 2006: 254). A Department of Human Settlements was formulated and mandated with the responsibility to facilitate the creation of sustainable human settlement and to improve the quality of life of households. Its function is to determine, finance, promote, communicate and monitor the implementation of Department of Human Settlements project.

The human settlements sector in the Republic of South Africa (RSA) remains one of the most challenging areas in the social and economic environment (Sexwale, 2012). This mirrors worldwide trends as population explosions continue to create an increasing demand within the property market for well-located land and housing (Sexwale, 2012). Following President Jacob Zuma‟s proclamation in 2009 to change the Department of Housing (DOH) to the Department of Human Settlements (DOHS), the focus has shifted from housing being just a roof over peoples‟ heads, to providing sustainable and integrated human settlements where people can work, pray, play and have access to amenities required for their day-to-day living (South African Consulate General, 2014).

The Department of Human Settlements (DOHS) which was tasked with formulation, implementation and monitoring housing policy, developed a range of primarily numerical benchmarks that it uses to measure its success (Mukorombindo, 2015). In 2004, Breaking New Ground (BNG) was introduced to fast track housing delivery by introducing more effective and responsive housing programmes. The new policy focused on the quality of housing products and the development of sustainable human settlements by introducing a variety of alternative and innovative housing programs (Mukorombindo, 2015).

The key objective of the policy was to eradicate informal settlements by 2014. The Republic of South Africa (RSA) is also a signatory to the United Nations Millennium Development Goals (UNMGD) which targets slum free cities, provides sustainable human settlements, and improved quality of life for households (Mukorombindo, 2015). The housing delivery processes aimed at the needs of the urban poor who suffer from severe capacity problems and cannot draw on the resources located in the traditional housing and property markets (Mukorombindo, 2015).

The Department of Human Settlements still has a long list of citizens waiting to be provided with basic services and is not meeting targets planned in each financial year since the 2004/5 financial year (Mukorombindo, 2015).Furthermore, RSA faces enormous service delivery challenges despite concerted efforts on the part of the government to alleviate the problem (Department of Housing, Eastern Cape Provincial Government, 2010). Many South Africans still live in conditions that do not conform to acceptable standards due to the lack of access to basic services such as adequate housing, water, electricity, and sanitation. South Africa has a rapidly increasing and urbanising society; coupled to this is a large existing and increasing housing backlog, due to very low rates of formal service delivery provision (Department of Housing, Eastern Cape Provincial Government, 2010).

According to the former Minister of Housing, Tokyo Sexwale, the number of people without permanent housing or living in inadequate housing appears to have increased. The Minister further mentioned that, the urban housing backlog in 1995 was approximately 1.5 million units‟. In 2012 the backlog was reported to have increased to 2.3 million units. The situation is deteriorating and needs an urgent attention. This background gives rise to the need to research on the backlog in service delivery at the Department of Human Settlements particularly in the Eastern Cape (EC) and to find solutions to the problems faced by the province and South Africa at large.

This chapter provides the background to the study, study objectives, research questions, motivation and importance of the study. Chapter 2 will link up with this chapter by giving a critical review of literature related to the area of study.

1.2 PROBLEM FORMULATION

The South African Government through the Department of Human Settlements faces massive challenges of backlogs in service delivery. The continued lack of adequate housing and basic services (water, sanitation, and electricity), growing unemployment and a largely unresponsive state, particularly at the local level, have resulted in an increasing number of so-called „service delivery protests‟ in townships and informal settlements across South Africa. Despite the significant progress made in provision of houses and basic services, it appears that the backlog is probably one of the greatest challenges facing the South African government. Previous studies shows that people living in rural areas and informal settlements still require a wide a range of basic services such as health, education, water, sanitation and electricity (Lloyd, Dick & Howells, 2004: 80).

1.3 RESEARCH QUESTIONS

In order to meet the research objectives, the following research questions were addressed:

 Why is there a backlog in service delivery in the Department of Human Settlements in the Eastern Cape?

 How far does the Department go in addressing this problem?

 What are the strategies implemented by the various countries to alleviate the challenge of backlog in service delivery? and,

 What are the relevant strategies that can be implemented by South Africa to address the backlog in service delivery nationwide?

1.4 OBJECTIVES OF THE STUDY

The objectives of the study are divided into two main classes which are primary and secondary objectives.

1.4.1 Primary objectives

1.4.2 Secondary objectives

In order to achieve the primary objective of this study the following secondary objectives were addressed:

 To establish the state of service delivery in the Department of Human Settlements.

 To investigate the causes of backlogs in the service delivery systems in South Africa.

 To investigate the impact of backlogs in service delivery systems in South Africa.

1.5 IMPORTANCE OF THE STUDY

The researcher‟s interest has been prompted as since she started working at the Department of Human Settlements (DOHS), the Department has been seriously committed to the service delivery process. According to the National Intervention Team approved by Cabinet Ministers in April 2008, delivery targets have not been fully achieved because of continuous problems such as poor workmanship, delays in procurement processes, poor municipal planning and bulk infrastructure challenges, and finance, project management and quality assurance (Parliamentary Monitoring Group, 2010). This study should be beneficial to the government of South Africa through the DOHS. The government of South Africa has a challenge of realising the right to adequate housing as well as addressing the devastatingly poor living conditions related to basic services such as water, sanitation and electricity. The Government through the DOHS should also benefit through implementation of findings and recommendations of the study.

The South African Government is bound to face an enormous risk if the challenge of backlog is not addressed as the consequences of backlog in service delivery are physically reflected in overcrowding, squatter settlements and increasing of land

4 invasion in urban areas (New Housing Policy and Strategy in South Africa, 1994) Socially and politically, this backlog gives daily impetus to national, communal and individual security and frustration and contributes significantly to the high levels of criminality and instability prevalent in many communities in South Africa, (New Housing Policy and Strategy in South Africa, 1994) .Hence, this study aims to investigate the backlog of service delivery in the DOHS in South Africa and provide solutions to the challenges before the above mentioned social ills emerge further.

The study could also benefit the academic fraternity since it will pose some academic debate on the backlogs in service delivery in South Africa, better strategies and ways of improving service delivery systems.

1.6 DELIMITATIONS

To get a full representation on the study, it would have been ideal to study the whole of South Africa and bigger towns such as Johannesburg but due to some limitations beyond the control of the researcher the study was limited to the Eastern Cape DOHS. Due to limited scope of the study, and limited distribution facilities, sampling was applied to get a convenient and manageable population size that is cross-sectional representative of the whole population. This study was restricted to a small population of the Chris Hani District Municipality (CHDM) in the Eastern Cape.

1.7 DEFINITION OF KEY TERMS

Definitions for the following terms are given:

 Housing

Refers to more than the tangible structure and includes infrastructure and services that supply the house. This is more than just the concrete structure but also includes other aspects such as the yard, sewage, environment, for example (Charlton, 2004:3).

 House

Charlton (2004:3) explains that “a key role issue is the role that the house plays in supporting livelihoods – through, for example, a prime location in the inner city that reduces commuting time and allows a hawking and vending business to flourish”.

 Service delivery

It means the provision of sustainable services by the municipality to communities as required by the Constitution of the Republic of South Africa, 1996 (Chipu, 2011).

 Waiting list

For the purpose of this study, it is a computerised database system previously used by the Department and individual municipalities to record particulars of households in need of housing assistance (Gauteng Department of Housing, 2009:6).

 Housing subsidy

Housing subsidy refers to a once off grant by Government to qualifying beneficiaries for housing purposes. This grant is paid either to a seller of a house, or in new developments, the grant is used for the construction of a house that complies with the minimum technical norms and standards (Department of Human Settlements, 2010:22).

 Municipality

A municipality is an organ of state within the local sphere of government exercising legislative and executive authority within an area determined in terms of the Local Government: Municipal Demarcation Act, 1998 (Act 27 of 1998), which consists of a political structure, administration and community, and functions in accordance with political, statutory and other relationships between its political structures, political office bearers, administration and the community. It has a separate legal personality which excludes liability on the part of its community for the actions of the municipality (Chipu, 2011).

 Services

Services refer to all basic services rendered by the municipality to communities, which include roads and storm-water drainage, water, sanitation, electricity, social and low- cost housing, waste management services, transport systems and recreational facilities (Chipu, 2011).

 Shortage

The amount by which something is less than expected or required or the state of needing something that is absent or unavailable (Tomlinson, 2006:23).

 Sustainable human settlements

Refers to well-managed entities in which economic growth and social development are in balance with the carrying capacity of the natural systems on which they depend for their existence and result in sustainable development, wealth creation, poverty alleviation and equity (Department of Local Government and Housing, 2005a).

 Respondents

The primary participants of the study.

 Community

Refers to a group of people living together in one place (Charlton, 2009:88).

1.8 ASSUMPTIONS

The study is guided by the assumption that the DOHS is confronted by backlogs in delivery of services such as water, sanitation ,electrical and housing ,and that this will have a negative impact on meeting the mission of the DOHS to facilitate the creation of sustainable human settlements and to improve the quality of household life. The lack of adequate housing and basic services (water, sanitation, and electricity), growing unemployment and a largely unresponsive state, particularly at the local level, have resulted in an increasing number of service delivery protests in townships and informal settlements across South Africa.

1.9 LIST OF ABBREVIATIONS AND ACRONYMS

NHF National Housing Forum

SHRA Social Housing Regulatory Authority

RSA Republic of South Africa

UN United Nations

ANC African National Congress

CHDM Chris Hani District Municipality

EC Eastern Cape

HSR Human Sciences Research Council

BNG Break New Ground

DOHS Department of Human Settlements

NDOHS National Department of Human Settlements

UNMGD United Nations Millennium Development Goals

SALDRU South African Labour Development and Research Unit

MDGs Millennium Development Goals

NGO Non-Governmental Organizations

RDP Reconstruction & Development Programme

FLISP Finance Linked Individual Subsidy Programme

NHFC National Housing Finance Corporation

GDP Gross Domestic Product

PIP Performance Implement Plan

PHP The People‟s Housing Project

MTEF Medium Term Expenditure Framework

NURCHA National Urban Reconstruction and Housing Agency

RHLF Rural Housing Loan Fund

SHF Social Housing Foundation

SAHF South African Housing Fund

EC European Commission

PSN Peer Support Network

NHBRC National home-builders registration council

1.10 ETHICAL CONSIDERATIONS

1.10.1 Informed consent

When the questionnaires were administered, the researcher indicated to the participants that their participation and continued participation was voluntary. The language used to construct questionnaires was understandable to all.

1.10.2 Confidentiality

The researcher took reasonable precautions to protect the confidentiality rights of research participants. All information obtained about the participants was treated confidentially.

1.11 OUTLINE OF THE STUDY

Chapter One: Introduction and background of study

In this chapter, the researcher provides an in-depth background to the DOHS including problem formulation, objectives and significance of the study.

Chapter Two: Literature review

Literature was reviewed to explore the country overview, challenges faced by the DOHS, the Departmental analysis of current backlog in service delivery and theories underpinning the study.

Chapter Three: Research methodology

This chapter describes research methods that were used to collect data. Data is analysed in this chapter in the form of questionnaires, the researcher also explained how information was gathered and how interviews and discussions were arranged and conducted.

Chapter Four: Data presentation and analysis

The gathered data were analysed utilising available tools such as Microsoft Office Excel, in the case of numerical or statistical data. This allowed for easy interpretation of the data, from which it was possible to draw conclusions in Chapter Five.

Chapter 5: Conclusions and recommendations

Based on the study conducted and the data collected and analysed, the researcher drew conclusions and made recommendations in Chapter Five.

CHAPTER 2

LITERATURE REVIEW

2.1 INTRODUCTION

According to the South African Government Information Housing (2006:1), access to housing and secure accommodation is an integral part of government‟s commitment to reducing poverty and improving the quality of people‟s lives. According to Statistics South Africa Census of 2001 the communities of South Africa are mostly affected by the high rate of unemployment that is manifested by poverty; hence a large part of the country is characterised by rural areas without employment nodes. As a result of this, the provision of housing and civil engineering services needs to keep pace with households‟ formation (Statistics South Africa, 2014).

According to the RDP White Paper (1994:6), no political democracy can survive and flourish if the majority of its people remain in poverty, without land, without their basic needs being met, and without tangible prospects for a better life. Attacking poverty and deprivation was declared to be the first priority of Government. The Reconstruction and Development Programme (RDP) further mentions that Government Development Programmes are aimed at addressing the huge social backlog that exists with regard to the poorest of the poor, the vast majority of whom are African women. It continues to state that developmental programmes such as the Integrated Rural Development Strategy, various Urban Renewal Initiatives and Land Reform Programmes are crucial to addressing development disparities and are receiving high priority.

2.2 SOUTH AFRICA: A COUNTRY OVERVIEW

The year 1994 ushered in a new era for South Africa. It saw South Africa becoming a democratic country after decades of apartheid rule (Nyamukachi, 2005:2). Apartheid as a government system was discriminatory in nature on racial lines since 1948, the results of which are still felt and can be seen today. The apartheid system was such that Government spending was directed towards the development of white people and white areas. The black people were neglected with little or no spending being allocated to basic services such as housing, roads, infrastructure, water, electricity, health and education. In some respects the current government inherited a first world

11 infrastructure; however it is still faced with issues such as service delivery, unemployment and poverty (Nyamukachi, 2005:3).

South Africa was a country torn by racial divisions as a result of the apartheid system of government that promoted the interests of the minorities at the expense of the majority of its populace (Ile, 2000:16). The South African liberation struggle, like most other liberation struggles, had an underlying class issue with the class struggle being distinctively along racial lines with the majority of the white population being economically stable and the blacks being poor. As a result, in an attempt to attain complete freedom, an intrinsic part of the struggle was to emancipate previously oppressed groups through participatory democracy. One of the aims of the new democracy was to address the class and racial divisions, hence it can be said that the removal of political and socio-economic inequalities was primary and overriding in the South African state (Ile, 2000:16).

While the removal of political inequalities has been attained, the state still faces huge service delivery challenges in its attempt to remove socio-economic inequalities. Ile (2000) further argues that it is important to note that there were huge expectations that the post-apartheid South African Government would ensure that basic services were delivered to millions of South Africans who were previously excluded or who were provided with substandard services. To this end, the new democratic Government committed itself to improving the quality of services, the accessibility, efficiency and accountability of public goods and services to all recipients. While there are pockets of excellence in government delivery, the challenge, twenty-one years after the first democratic election in 1994, still remains: how to best ensure basic services are delivered to millions of South Africans with the aid of an outcome-oriented intergovernmental relations framework.

The problem of service delivery backlogs is not one unique to South Africa but is a problem faced by many developing nations Nyamukachi (2005). The South African Government still faces the challenge of creating a good life for its citizens, with the challenge being more especially felt by the local municipalities as they are closest to the people and interact more closely with communities. Nyamukachi (2005) posits that it has been a decade since South Africa becomes a democratic state and despite

12 promises and efforts to improve service delivery to the public there still exist backlog in service delivery.

2.3 HISTORICAL BACKGROUND TO THE HOUSING PROGRAMME IN THE POST INDEPENDENCE SOUTH AFRICA

The newly elected ANC government‟s commitment to addressing socio-economic inequalities and level the playing field can be traced back to the 1994 Reconstruction and Development Programme (RDP). The RDP was the African National Congress (ANC) government's manifesto for a post-apartheid South Africa and was committed to meeting the basic needs of all South Africans. These basic needs included, among others, water and sanitation, land and jobs. The RDP was also tasked with the restructuring of local government in order to address these needs, as local governments were to become central in overcoming the backlogs (Pillay & Naude, 2006:1). RDP housing was a package involving secure tenure, land, a top structure and the supply of water, sanitation and electricity (Mthembi-Mahanyele, 2002:6).

The government also faced another enormous difficulty in this regard. It was not known at the time how many households suffered from services backlogs; what household incomes were and what levels of services they might afford; whether local government had the capacity to deliver these services as well as knowledge of alternative means of ensuring service delivery (namely, public-private partnerships); and how the capital and operating costs were to be financed).

To redress the housing situation in which the poorest were housed in the least adequate housing located furthest from economic opportunities, the Housing Department embarked on addressing the challenge of „Housing the Nation‟. The Department's main aim has been to address the needs of households most in need and who are inadequately housed, through progressive access to secure tenure (10 Year Review, 2004:16). By the late 1990s, housing specialists had begun raising concerns that the delivery of RDP houses was inadvertently creating unviable, dysfunctional settlements. From about 1999 onwards, therefore, there has been increasing focus by the Department of Housing on the intention to produce 'quality' rather than mere quantity (Charlton & Kihato, 2006:257).

2.4 THE HOUSING NEED AND CURRENT BACKLOG

According to the Department of Local Government and Housing (2005b: 14), „need‟ refers to human needs and requirements. It is vital that the needs of people who reside in space in the urban environment are taken into consideration, especially when decisions are to be made and actions taken. According to the (Department of Local Government and Housing, 2005b:14). “The exact need has to be established in terms of whom, where, what people can afford and whether they want to buy or rent, also taking into consideration the housing list and migration statistics and related issues”

Thus far, in terms of satisfying this „need‟, the National DOHS has produced 2, 4 million houses in the last 12 years (Sisulu, 2007). According to Sisulu (2007) the „backlog barrier‟ has been breached and more houses have been provided than there are people existing in the backlog. The housing backlog has been reduced from 2, 4 million houses and currently stands at 2, 1 million. Sisulu (2007) further states “this is the first time in our history that our backlog has been less than the number of houses produced”. Put differently, we have housed more people than those needing houses.

According to the Department of Housing (2004) “Provision of adequate housing for the homeless and others who are inadequately housed in an attempt to reduce poverty and improve quality of peoples‟ lives, has been a huge challenge to the South African government over the years. Over the years this provision has been challenged and has resulted in an enormous housing backlog with poverty, unemployment, economic stagnation and negative behavior, together with financial constraints making the task even more enormous (Department of Housing, 2004). However, a large number of housing projects have been implemented throughout the country to deliver houses to the poor in order to fulfill a vision for adequate housing for all, as reflected in the National Housing Policy framework. Since 1994, housing in South Africa has undergone fundamental changes and houses have been delivered” However, regardless of the need for housing the poor, South Africa has a major housing backlog (Department of Housing, 2004).

This problem is being addressed by the Comprehensive Housing Policy. The vision of the Government of South Africa, as stated in the National Housing Code (2001), advocates for “sustainable housing and sustainable urban environment”. It is common knowledge that housing is a major component of the urban environment and that better

14 designed houses contribute to the physiological and psychological wellbeing of inhabitants. However, the problem lies in the formation of housing processes that should ensure delivery of „sustainable housing‟ (Kangwa, 2002:5). The South African government should make sure that housing is also the major component of the rural development. People living in small municipalities such as Chris Hani feel neglected; government‟s focus is on urban development which is the major cause of migration. There is less development in the rural areas (Kangwa, 2002:5).

2.5 STATE OF THE DEPARTMENT OF HUMAN SETTLEMENTS IN SOUTH AFRICA

The DOHS determines finances; and promotes, communicates and monitors the implementation of housing and sanitation programs in South Africa. Government has set itself the target of making a positive impact on the quality of life of 500 000 households by 2014 by upgrading informal settlements (South Africa Yearbook 2014/15). The upgrade should provide households with security of tenure and access to essential services in sites that are close to economic and other social amenities. To meet the objective of sustainable human settlements and improved quality of household life, the Department has identified the following areas of priority:

 Accelerated delivery of housing opportunities,

 Access to basic services,

 More efficient land use,

 Improved property, and

 Market (South Africa Yearbook 2014/15).

The National DOHS is responsible for establishing and maintaining a sustainable housing development process. It achieves this by developing policy and strategy, determining delivery goals, monitoring and evaluating the housing sector‟s performance, establishing a national funding framework for housing development and allocating the housing subsidy budget to provincial governments and public entities (South Africa Yearbook 2014/15). It is the responsibility of the provincial governments to promote, coordinate and implement housing programs within the framework of the

15 national housing policy. They approve housing subsidies, projects and provide support to municipalities for housing development. They also evaluate municipal applications for accreditation as housing delivery agents, although very little progress has been made in this regard. The delivery of basic services and provision of infrastructure is the most important element of poverty eradication. This includes services rendered directly to the communities, such as water, sanitation, electricity, waste management, environmental management, roads, housing and community facilities (South Africa Yearbook 2014/15).

The housing terrain in the country is complex, in large part due to the deliberate policy and legislative framework of socio-economic and spatial exclusion and marginalisation created during apartheid, but also due to failures on the part of the post-apartheid government to adequately redress these problems since 1994. As with other socio- economic rights, the legislative and policy framework created by national government around housing is in fact quite progressive (South Africa Yearbook 2014/15). However, implementation to date has been skewed and unable to address the land, housing and basic services needs of millions of poor South Africans who still lack adequate housing and access to water, sanitation and electricity. While the urban and rural spatial divide remains pronounced in respect of access to socio-economic goods and services, the phenomenon of the inadequately housed urban poor is increasing (South Africa Yearbook 2014/15).

The Eastern Cape experienced declining performance in housing delivery and the expenditure as shown on the graph below. Over a three-year period of 2005-2008, the Province lost over R 1 billion due to non-expenditure. (Parlimentary Monitoring Group, 2010).

Figure 2.1 suggests that the services have been improving in the years 2002/03 although in the final year there were many more people on the waiting list than in 2007/08. If it is expenditure on the part of government, it means the government spent more on resettlement in 2002/3 financial year than in 2007/8; this indicates more problems.

Figure 2.1: EC Housing Delivery Expenditure for the 1999/00 to 2007/8 Period

Expenditure in Rands

Source: (Parlimentary Monitoring Group, 2010): Financial periods

2.6 THE ROLE OF LOCAL MUNICIPALITIES IN SERVICE DELIVERY

Municipalities have the most critical role in the housing delivery process, as they are responsible for the provision and ongoing operation of associated bulk and distribution infrastructure and services, such as water, sanitation, roads and (in many cases) electricity. Municipalities also share responsibilities with provinces for the release of land for housing development, land use planning, and land use and building control. They also often act as housing developers. They are required to take all reasonable and necessary steps within the framework of national and provincial housing legislation and policy to ensure that the right to have access to adequate housing is realised on a progressive basis, by creating an enabling environment for housing development in its area of jurisdiction (Treasury, 2009).

In addition, local municipalities are responsible for initiating, planning and facilitating housing development, preparing local housing strategies and setting housing delivery goals, planning and managing land for housing development, providing bulk engineering services where housing developments are taking place and facilitating the resolution of conflicts (Treasury, 2009). In most of the municipalities, there is no unit

17 dedicated for housing service; housing is often undertaken as part of the Planning or Engineering Department, mainly because of capacity constraints (Treasury, 2009).

Tomlinson (1998:1), on the other hand, indicates that the role of municipalities in addressing the housing challenges must be seen in relation to their problems of capacity and sustainability. Nsouli (2000:1) mentions that the development of skills and institutions is critical to the achievement of sustained economic growth and with good governance, the acquired skills can be exploited fully and the institutions can operate effectively. He furthermore states that economic reforms cannot be implemented properly without well-functioning institutions. All spheres of government need to collaborate in implementing government policies and improving the life of the people of South Africa (Nsouli, 2000:1).

A greater role for municipalities in housing delivery could result in faster housing delivery (Treasury, 2009). For municipalities to play a more prominent role in the development of integrated sustainable housing settlements, the planning of the housing function needs to be done at municipal level. This would allow for better and more localised needs analysis; improved land identification, zoning and procurement; facilitate integrated and inclusionary residential areas; improve planning and procurement of public facilities; encourage private investment; and improve the supply of bulk infrastructure and services. It would also leads to greater accountability at local level and widens options for cross-subsidisation and funding (Treasury, 2009).

Complex arrangements for, and poor coordination of housing delivery across the three spheres of government are often cited as a constraint to scaled-up and sustainable human settlements development (Treasury, 2009). The root cause of this problem is the relatively limited powers given to municipalities in housing delivery, despite the significant responsibilities they hold for the provision of infrastructure and the long term management of settlements (Treasury, 2009). This results in fragmented delivery processes and misalignment in the timing and scale of various investments across sectors. Municipalities regularly complain of inadequate notice of roll-out of housing projects, which often conflicts with the priorities identified and financed in their own plans (Treasury, 2009) .

2.7 HOUSING DEVELOPMENT PROCESS AND PROCEDURES

According to the Department Of Housing (2005b) the following steps should be followed when developing housing:

Step One

The Council or Provincial Department of Housing decides on the number of houses to be built, based on a demand list for housing in that area. They select the project that best meets the needs of the beneficiaries and the goals of the department. Qualifying beneficiaries are identified and money is made available for houses to be built.

Step Two

Following these decisions, the municipal manager or senior technical staffs draws up a proposal for housing delivery. Suitable land for housing development is identified and acquired. If the land belongs to the municipality, the process of registering such land may be shorter, but if the land is to be purchased from a private owner, the process may be longer.

Step Three

It is a legal requirement that every development should follow the process of impact assessment on the environment. Environmentalists must be appointed to analyse the area in which the development has to take place. This is to ensure that the environment and its species are not negatively affected as well as checking whether or not the land is suitable for habitation. The appointment of specialists takes about one month and the study to be undertaken could take up to two years.

Step Four

Suitable analysis to determine whether the land is suitable for development may include:

 Producing a general layout for the development,

 Making establishment application,

 Draft an engineering service report,

 Soliciting public notice and comment,

 The handling of objections, if any,

 Approval of application,

 Establishing conditions , and

 Signing of service level agreement between the developer and the municipality

Step Five

When the application is approved, the general layout is drawn and the pegging of plots is made.

Step Six

When an approval from the surveyor-general is received, a register is opened in the Deeds Registry Office and the township is proclaimed in the Provincial Gazette. The general plan is submitted to the surveyor-general‟s office for approval.

Step Seven

The relevant authority (municipality or Department of Housing) invites tenders for developers or contractors to bid for housing development.

Step Eight

The developer draws up a proposal and submits it to the department for consideration and appointment. The appointment process may take two months. When a developer is appointed, he or she applies for a subsidy on behalf of those who may qualify for approval.

Step Nine

Conveyances are appointed to transfer the title deed in the name of the qualifying beneficiaries.

Step Ten

The developer is appointed and houses are constructed. The houses must be completed before or on the deadline laid down in the programme.

Step Eleven

The buildings inspectors monitor the progress of the project on a regular basis and keep the municipality or department informed and certify completed houses.

Step Twelve

Qualifying beneficiaries take occupation of the house. A „Happy Letter‟ is issued and signed (Department of Housing, 2005).

2.8 ACCESS BASIC NEEDS

The dawn of democracy in 1994 created a new dispensation in which access to basic services such as housing, water and sanitation was recognised as a fundamental human right. South Africa inherited high levels of poverty and it continues to be confronted with unequal and often inadequate access to resources, infrastructure and social services Nengwekhulu (2009). As reported by Nengwekhulu (2009), the Bill of Rights enshrined the right to basic services and commanded that the state must take reasonable measures to achieve the progressive realisation of these rights since the inception of democracy and access to housing has been an integral part of the Government‟s commitment to reduce poverty and improve the quality of people‟s lives. South Africa has come a long way in addressing the factors associated with the provision of housing (Nengwekhulu, 2009).

NHF, established by Government in 1992, also highlights the Government‟s commitment of creating a better life for all South Africans; especially the poor through the provision of adequate shelter (Nengwekhulu, 2009). Since the inception of democracy in 1994, the ANC led government has worked tirelessly towards the crafting of legislation and putting policies and programs in place for the realisation of the Freedom Charter. One of the very important priorities contained in the Charter is the provision of proper homes for all those in need.

Even though progress has been made on the provision of housing, the shortage of housing and basic services is a huge step back for the government and development (Charlton, 2009:85). Many people in South Africa do not have access to basic services, such as potable water, sanitation systems and electricity. Furthermore, many

21 neighborhoods are inadequately supplied with social and cultural amenities (Statistics SA, 2001).

2.8.1 Water Supply

Water is a vital human need without which there is disease, hardship and misery. Regardless of whether water is a right or a privilege, it makes fundamental sense for any government to provide water to its citizens (South African Labour Development and Research Unit (SALDRU), 1994)). South Africa is a water scarce country with a highly skewed rainfall distribution pattern that leaves it susceptible to drought. This makes managing the water resource a particularly important issue to the wellbeing of the South African population and economy. Approximately one quarter of all functional urban households in South Africa do not have access to a piped potable water supply (South African Labour Development and Research Unit (SALDRU), 1994)).

2.8.2 Sanitation

An estimated 48 percent of all households do not have access to flush toilets or ventilated improved pit latrines, whilst 16 percent of all households have no access to any type of sanitation system (SALDRU, 1994). An estimated 85 percent of rural households have some form of sanitation system whereas an estimated 49 percent of farm workers are reliant on the veld for this purpose.

2.8.3 Electricity

It is estimated that 46.5 percent of all households are not linked to the electricity supply grid in South Africa (SALDRU, 1994).

2.9 HOUSING ALLOCATION AND DELIVERY IN SOUTH AFRICA

Despite the first ten years‟ achievements in providing shelter to the poor, there are a number of challenges that hamper the provision of housing that has added to the decline in the number of units that have been constructed per annum since 2000 (The Department of Housing, 2004). The Department of Housing (2004:4) has acknowledged six such challenges, which are discussed in the following section .Thereafter, an additional five important barriers, which influence the speed of housing delivery in South Africa, are addressed.

There are challenges identified by the department of Housing that affect housing delivery as quoted in Burgoyne (2008:25):

 Integrated housing environments have not been suitably created. This is because of the poor configuration of housing plans and funding streams at all levels of government, as well as the generally poor quality and peripheral position of low income housing projects,

 Beneficiaries do not view the house provided as an asset because they see the houses being sold at a cost lower than the replacement value, which demonstrates a challenge to the objectives of the housing programme where the housing units are seen as an asset,

 There is inadequate contribution from the financial sector in the financing of low income housing. This is principally owing to the poor repayment record of low income housing beneficiaries,

 There is significant under-spending on budgets for low-income housing by responsible housing departments owing to a lack of capacity, particularly in municipalities, sluggish transfer of state land to municipalities, a lack of collaboration from traditional leaders and the recent implementation of new housing policy measures,

 The constant presence and expansion of informal settlements through increased migration, which have little or no access to services or infrastructure, pose difficulties, and

 A final obstacle is the need to provide housing in the framework of decreasing household sizes. It has been recognised that this factor is partly responsible for the increasing backlog of low income housing, and the associated increase in slum development in South Africa.

2.10 NEW DIRECTION FOR HOUSING POLICY: BREAKING NEW GROUND

At the end of 1994 the government introduced a new strategy with the aim of guiding and directing the development of housing for the next five years (Department of Local Government and Housing, 2005a:8).This strategy was developed to remedy the shortfalls and bridge the gaps from the existing housing strategy. This new strategy introduced was “Breaking New Ground” (BNG). The main objective of the BNG is to “redirect and enhance existing mechanisms to move towards more responsive and effective delivery” and strives to “promote the achievement of a non-racial, integrated society through the development of sustainable housing settlements and quality housing” (Department of Local Government and Housing, 2005a: 8). Specific objectives set out by the BNG plan are numerous, and include accelerating the delivery of housing as a key approach for poverty alleviation and utilising provision of housing as a major job creation strategy (Department of Local Government and Housing, 2005a:8).

The BNG strategy ensures that property can be considered by all as an asset for wealth creation and empowerment, thereby influencing growth in the economy. According to the Department of Local Government and Housing (2005:8a) “crime prevention strategies, promoting social cohesion and improving quality of life for the poor, are also listed as BNG's main objectives, by providing community supporting facilities through housing delivery. Additionally, it aims to make use of housing as a tool for development of sustainable human settlements in support of spatial restructuring, promoting and facilitating an affordable rental and social housing market and upgrading informal settlements” (Department of Local Government and Housing, 2005a). With the implementation of the BNG strategy, the government aims to develop and create sustainable human settlements rather than merely providing housing. This indicates major paradigm shifts in the housing policy that will oversee provision of adequate and proper housing facilities. The Government‟s emphasis on the function of BNG in creating integrated sustainable development, wealth creation and alleviation of poverty, are somewhat optimistic.

BNG, in essence, aims to ensure that present and future residents of such settlements live in a safe and secure environment with sufficient access to economic opportunities, a combination of safe and secure housing and tenure types, reliable basic services and

24 educational, environmental, cultural, health, welfare and police services (Department of Local Government and Housing, 2005a).

2.11 AN OVERVIEW OF THE SOUTH AFRICAN HOUSING POLICY

Section 26 of the Constitution of the Republic of South Africa, 1996, states that “everyone has the right to adequate housing” and that the “state must take reasonable legislative and other measures, within its available resources, to achieve the progressive realization of this right” (South Africa Yearbook 2014/15). The Housing Act (1997) provides for the facilitation of a sustainable housing development process and lays down the roles, responsibilities and functions of the different spheres of government. The National Norms and Standards (2007) outline the minimum physical requirements for standalone dwellings. Each house must have 40 m² of floor space, two bedrooms, a separate bathroom with a toilet, a shower and hand basin, and a combined living area and kitchen. It must also have an electrical board installed that has access to electricity. There are further requirements regarding access to water, sanitation, roads, storm water drains and street lighting (South Africa Yearbook 2014/15).

Government‟s responsibilities are outlined in the Housing Act. National government is responsible for, among other things, determining a housing policy, setting broad national housing delivery goals and monitoring the performance of provincial and local government delivery goals and budgets. It is also required to establish and maintain a national housing data bank and information system. Broadly, provincial government is required to “promote and facilitate the provision of adequate housing in its province within the framework of the national housing policy (South Africa Yearbook 2014/15). It must coordinate housing development in the province and support municipalities in the performance of their duties. Municipalities must ensure that the right to housing is progressively realized in their jurisdiction. They must also identify and designate land for housing and ensure that water, sanitation, electricity, roads, storm water drainage and transport are provided (South Africa Yearbook 2014/15).

Section 26 of the Constitution of the Republic of South Africa, 1996, also enshrines everyone‟s right of access to adequate housing (South Africa Yearbook 2014/15).

Since 1994, the South African state has created a draft of legislation and policy to give effect to this right. Despite this, and notwithstanding the provision of 2.4 million housing units to nearly 11 million people, South Africa still has a housing crisis after 21 years of democracy, with over 2.1 million households lacking adequate housing (and millions more lacking access to basic services) (Tissington, 2011). This is just a safety net for the poorest of the poor, but cannot go on forever. It is generally recognised that the state cannot deliver housing on the scale required at a sustainable rate or within the means of low-income and poor households. The housing delivery processes aimed at the needs of the urban poor “suffer from severe capacity problems and cannot draw on the resources located in the traditional housing and property markets (South Africa Yearbook 2014/15). “Some of the critical issues not yet properly addressed have been the unlocking of well-located land in urban areas for residential development, the connection of bulk infrastructure and services to new housing developments, access to interim services and upgrading for millions of households living in informal settlements and the lack of decent, affordable rental housing for low-income and poor individuals and households in well-located urban areas (Tissington, 2011).

The National Housing Policy is formulated by national government and sets out all government activities in terms of housing. It responds directly to the environment, as well as to the problems and opportunities that occur in this regard (South Africa Yearbook 2014/15). In addition, it is formulated through discussion, negotiation and debate, both within government and between government and communities, individuals, non-governmental organisations, community representative organisations and the private sector. In addition, Government has established a number of institutions, organisations and committees that have a specific focus. The National Housing Policy is established in an extensive range of documents that form part of the law and policy making of South Africa. Some of these documents relate directly to the Housing Policy, while others do not directly address housing issues, but have an influence on how the policy should be implemented (National Housing Code, 2000, Act No. 107 of 1997).

2.12 LEGISLATION AND POLICIES

According to South African legislation “access to housing and secure accommodation is an integral part of the government‟s commitment to reducing poverty and improving the quality of peoples‟ lives (South Africa Yearbook 2014/15).

The Department of Human Settlements determines finances, promotes coordinates, communicates, and monitors implementation of policy for housing and human settlement. Since the launch of the White Paper on Housing in December 1994, housing in South Africa has undergone fundamental changes.

The following legislation, policies and strategies govern the DHS:

 The Sectional Titles Schemes Management Act, 2011 (Act 8 of 2011), which provides for the establishment of bodies corporate to manage and regulate common property in sectional title schemes and the establishment of an advisory council to advise the Minister (South Africa Yearbook 2014/15).

 The Community Schemes Ombud Service Act, 2011 (Act 9 of 2011), which could fundamentally change the lives of people living in high rise flats, inner city buildings, townhouse complexes and other gated communities. The Act establishes an Ombud service to resolve disputes emanating from within community schemes. An increasing number of community schemes are being developed, where there is governance by the community involved, shared financial responsibility, and common land and facilities. The Act is aimed at addressing any problems and disputes among participants involving the control and administration of finances, facilities and behavior (South Africa Yearbook 2014/15).

 The Estate Agency Affairs Act, 1976 (Act 112 of 1976) , the Finance Linked Individual Subsidy Programme (FLISP) and the Mortgage Default Insurance are expected to address challenges associated with the upgrading of slums, access to basic services, accreditation of key municipalities and land acquisition for human settlements. The program of improving property markets remains a major challenge (South Africa Yearbook 2014/15).

 The Housing Act, 1997 (Act 107 of 1997), provides for, among other things, facilitating a sustainable housing development process. For this purpose, it lays down general principles applicable to housing development in all spheres of government; deﬁnes the functions of national, provincial and local government in respect of housing development; and provides for the ﬁnancing of national housing programs (South Africa Yearbook 2014/15) and;

 The Rental Housing Act, 1999 (Act 50 of 1999) , deﬁnes the responsibility of government in respect of the rental housing market. It creates mechanisms to advance the provision of rental housing property and promotes access to adequate housing by working to ensure the proper functioning of the rental housing market. It furthermore provides for the establishment of rental housing tribunals. The Act gives tribunals the power to make rulings, which are deemed to be rulings of a magistrates‟ court in terms of the Magistrates‟ Courts Act, 1993 (Act 120 of 1993) , and which are enforced in terms of the Act. The Act provides for the facilitation of sound relations between tenants and landlords and for this purpose lays down general requirements relating to leases. Among other things, the Act prescribes that: leases may be oral or in writing; tenants can demand a written lease; the landlord must give the tenant a written receipt for all payments received by the landlord from the tenant; the landlord may require that the tenant pay a deposit before moving in; the balance of the deposit and interest must be refunded to the tenant by the landlord not later than 21 days after the expiry of the lease.

 The Rental Housing Amendment Act, 2007 (Act 43 of 2007), among other things, provides for rulings by rental housing tribunals, to expand the provisions pertaining to leases and to extend the period allowed for the filling of vacancies in rental housing tribunals (South Africa Yearbook 2014/15).  The Social Housing Act, 2008 (Act 16 of 2008), aims to establish and promote a sustainable social housing environment. It defines the functions of the national, provincial and local spheres of government in respect of social housing. It provides for the establishment of the Social Housing Regulatory Authority (SHRA) to regulate all social housing institutions obtaining or having obtained public funds, and it allows for the undertaking of approved projects by other delivery agents with the benefit of public money. The DHS has taken steps to assist governance and regulatory processes through the promulgation of the Social Housing Act of 2008 and the establishment of the SHRA. The Act provides for the recognition and accreditation of social housing institutions. Provincial governments are given responsibilities to approve, allocate and administer capital grants, as well as administer the Social Housing Program. Local governments are required to ensure access to land, municipal

infrastructure and services for approved projects in designated restructuring zones. Local governments are also responsible for initiating the identiﬁcation of these restructuring zones. The Act‟s major purpose is the establishment of the SHRA (South African Consulate General, 2014).

2.13 HUMAN SETTLEMENTS VISION 2030

On the Road to 2050, DOHS vision aims to provide houses and services in rural and urban areas. It focuses on the total eradication of backlogs of more than 2, 1 million housing units, which translates to about 12, 5 million people. Under Vision 2030s framework, most South Africans will have affordable access to services and a quality environment; instead of living in isolation on the periphery of cities. The DHS is a key player in the property market. A recent study found that of the six million registered residential properties in the Deeds Registry, 1, 44 million were government subsidised houses. This represents just less than a quarter of registered residential properties and could increase to 35 percent if the backlog in issuing title deeds is overcome (South African Consulate General, 2014).

2.13.1 Value of title deed

The value of a title deed is that it provides the following:

 Protection of rights to a property,

 Asset security, and

 Facilitation of entry of ordinary South Africans as players in both the property as well as the ﬁnancial markets.

What is least understood yet nevertheless, is a major contribution to asset formation by beneﬁciaries is achieved each time government facilitates the acquisition of a house, and it comes with its own land. Housing the poor is an ingredient of the department‟s three-part response to the State‟s Vision 2030 Strategy (South African Consulate General, 2014).

2.13.2 Gap housing

Gap housing is a term that describes the shortfall, or gap in the market between residential units supplied by the State and houses delivered by the private sector (South

Africa Yearbook 2014/15). The gap housing market comprises people who typically earn between R3 500 and R15 000 per month, which is too little to enable them to participate in the private property market, yet too much to qualify for state assistance. Gap housing is another element of the State‟s Vision 2030 Strategy. Gap housing is a policy that addresses the housing aspirations of people such as nurses, fire fighters, educators and members of the armed forces, who earned between R3 000 and R15 000 per month and, therefore, did not qualify for Reconstruction and Development Program houses and did not earn enough to obtain home loans (South African Consulate General, 2014). Nationally, the houses are financially assisted by the National Housing Finance Corporation (NHFC) through an intervention called FLISP, which gives all qualifying beneficiaries the certainty of being granted loans, bonds or mortgages by banks and other financial institutions (South African Consulate General, 2014).

Those in the middle to high income groups could apply for housing bonds. The challenges ahead include removing racial connotations from living spaces, which more than anything else, reﬂects the real evil of apartheid social engineering (South African Consulate General, 2014). Undoing this policy will require time and major resources. As part of its strategy in this regard, the department is obliging banks to give loans to black people who want to buy properties in previously exclusively white areas. It has also been buying up high rise buildings in inner cities, and refurbishing and transforming them from ofﬁce space to rented family units. This form of social housing has become popular with young couples, students and single mothers. Areas close to townships, known as „no-man‟s land‟ that were used as buffer zones to separate black townships from white areas are being eradicated. The land is being used for housing with occupants being moved closer to cities (South African Consulate General, 2014).

2.14 CHALLENGES AND CONSTRAINTS THAT FACE THE NATIONAL HOUSING POLICY

The decline in housing supply, as indicated in the records of the DOHS, has resulted in a huge backlog causing desperation and impatience for those in need of housing. This however, is not the only challenge facing the National Housing Policy. Inadequate resources, complicated bureaucratic and administrative processes and the institutional agenda inherited from the previous government are some of the challenges faced by

30 the provincial and local government housing institutions. These challenges are making it difficult for the local authorities to effectively implement the key goals of the Housing Act (Act 107 of 1997). According to this act the key goals of government, through its agencies are:

 To construct one million houses in five years,

 To establish and maintain habitable, stable, and sustainable public and private residential units,

 To create viable households and communities,

 To ensure that housing developments are both economically and socially sustainable, and

 To promote integrated development, prevent urban sprawl and redress the historically distorted racial and spatial patterns of towns, cities and rural areas”.

Between 1994 and 2004, the South African government invested R27.6 billion in housing. More than 1.6 million houses were delivered, affecting the lives of 6.5 million people (Department of Housing, 2004). Charlton (2004:3) notes that it is widely acknowledged that “South Africa‟s housing programme has led to the delivery of more houses in a shorter period than any other country in the world. In comparison with housing delivery across the world, one must be impressed with what South Africa has achieved”. Despite these achievements, however, the urban housing backlog increased from 1.5 million in 1994 to 2.4 million in 2004. Some of the reasons for this increase in the housing backlog are natural population growth; a trend towards urbanisation and inadequate delivery to address historical backlogs” (Department of Local Government and Housing, 2005b:8).

According to the Department of Local Government and Housing (2005b:8), low levels of delivery are caused mainly by insufficient resource allocation and under-spending owing to capacity constraints. The problem is also exacerbated as the housing policy does not provide a range of options to meet all housing needs; most notably, there are no strategies for the upgrading of informal settlements or for the promotion of affordable rental housing (Department of Local Government and Housing, 2005b:8). Baumann (2003: 86) explains that the distinction between long term „restructuring‟ aspects of

South Africa‟s housing policy and short term „remedial‟ objectives, is based on a dichotomy which is present in South African housing policy. Remedial refers to the sentiment that South Africa‟s housing policy should address a “historically determined backlog in shelter and human settlement conditions with both quantitative and qualitative aspects, which mainly affect Coloured and Black South Africans” (Baumann, 2003:87).

This is opposed to ensuring mere access to housing opportunities for those who may, or those who may not have them under present „market circumstances‟. “South Africa‟s housing backlog is, therefore, understood as related to both economic inequality and to the ongoing impact of intentional residential discrimination under apartheid” (Baumann, 2003:87). South African housing policy does not propose subsidies as the main tool to deliver houses to the poor. Instead, subsidies are viewed as an interim system, which is dependent on the growth of the economy and the „trickle-down‟ of resources to the poor, as well as the revision of housing finance markets (Baumann, 2003:86).

The main force of the non-subsidy aspect of housing policy has been to remodel the institutional framework of the commercial housing and finance markets. This 'remodeling' is grounded on an assumption that eventually everyone will be able to buy a house without requiring direct government assistance (Baumann, 2003:86). The 1994 White Paper on Housing asserts that beneficiaries can be divided into two broad categories (Baumann, 2003:86).

The first refers to those who are able to access extra financial resources for housing above the subsidy through financial systems (commercial or semi-commercial), because of their employment and income status. The policy assumes that this group will increase over time because of macro-economic growth strategies (Baumann, 2003:86). Secondly, Baumann (2003:86) states that those who are unable to participate in housing finance markets are, therefore, totally dependent on the government subsidy, at least until growth in real per capita Gross Domestic Product (GDP) is adequate, which would enable them to move into the first category. Due to past racial policies, there is a significant overlap between those in the second category – by nature, the poorest and least eligible for housing finance – and Black and Coloured urban informal and rural impoverished communities (Baumann, 2003:87). “An income-

32 based subsidy policy targets these South Africans by default, as it were, not because they are Black, but because they are poor” (Baumann, 2003:87).

Some South Africans who were discriminated against under apartheid may benefit from transformations that improve their access to conventional housing finance and markets, while others may not. Baumann (2003:87) concludes that “it is imperative that we know what proportion of the target group for housing policy falls into the remedial category – solely dependent on the subsidy for housing – and how present housing policy affects them”. The original focus of the subsidy program was largely on „the poor‟ (Charlton,2004:5), which is defined in terms of income – those households that earned less than R3 500 per month, divided into three sub-categories. Since “more than half the families in South Africa earn less than R1 500 per month, the bulk of the expenditure has serviced them” (Charlton, 2004:5). “Furthermore, disparities in the property market resulted in a gap in the supply of housing by the market to households with incomes, which range between R3 500 and R7 000”. Income bands have not been adjusted since 1994, leading to the “criticism that many families above the income cut- off of R3 500 per month, are undeniably poor, but are not eligible to receive state housing subsidies” (Charlton, 2004:5).

The Department of Local Government and Housing (2005b:8) states that “a vast majority of people are excluded from the formal housing market – 15 percent of households are able to benefit from the potential asset value of housing through being able to buy and sell property through the formal housing market. The People‟s Housing Project (PHP) approach of assisted self-help housing delivery is capable of providing bigger and better houses and empowering communities, but this has been a small proportion of total delivery owing to a general lack of capacity to provide effective support to communities” (The Department of Local Government and Housing; 2005b:8). The Department of Local Government and Housing (2005b:8) concedes that “there have been several difficulties with housing that have been delivered through the subsidy scheme.

Extensive and acute poverty, coupled with a lack of skills transfer and economic empowerment in housing projects, have resulted in several beneficiaries being unable to afford ongoing costs of housing.” In order to access the maximum subsidy, a household should earn a combined income of less than R1 500 per month. Charlton

(2004:5) poses a question asking how households should pay for the “product itself and its associated costs, including the upfront contributions to the subsidy and the ongoing services and maintenance costs” (The Department of Local Government and Housing, 2005b:8).Baumann (2003:87) explains that “this category of South Africans is poor not only because of „market failure‟. A number of new housing projects are not adequately equipped with all the basic facilities, like in-house bathrooms and toilets.

These projects mainly boast only house structures and the occupants have to finance any additional facilities they need. Essentially, this housing project with its poor location and low residential densities cannot support a wide range of activities and services in a sustainable way. It also tends to accentuate apartheid urban patterns and the existing inequalities” (Baumann: 2003:87). “Additionally, problems are experienced with regard to poor construction quality and urban facilities of several new subsidised housing projects. There are severe affordability problems and high levels of non-payment as relatively high rents and levies are needed in order to cover operational costs and loan repayments although social housing (rental and co-operative housing) projects are often better located and of a better quality than other projects” (Department of Local Government and Housing, 2005b:8). As mentioned, access to well-located land and integration remain fundamental challenges which confront the objective of sustainable human settlement development. Royston (2003:234) states that most housing subsidy projects have been, and continue to be, located on cheap land in peripheral locations, thereby perpetuating existing apartheid spatial patterns and creating new inequities.

A majority of housing projects are developed without sufficient regard for integration, which results in development of mono-functional settlements (Royston, 2003:234). According to Khan (2003:228), “the establishment of viable, socially and economically integrated communities in areas allowing convenient access to a range of amenities and opportunities is without a doubt the main challenge confronting housing policymakers and practitioners alike”. In light of limitations faced by Government in meeting challenges of developing integrated human settlements, more attention should be placed on integrating communities internally – as opposed to externally through creating potentially costly and unproductive connections with established communities. Arduous barriers are encountered in accessing land and developing low-income housing projects on well-located land. Khan (2003:228) also mentioned that “An overwhelming emphasis on delivery of housing units, subsidy level; insistence on

34 minimum sized units; and the recently announced move to allocate more subsidies to less-urbanised areas, challenge prospects for urban restructuring.”

Todes, Pillay and Kronje (2003:271) argue that “if urban restructuring should be taken seriously, there is a need for substantial shifts in the current orientation and implementation of housing policy” .Todes (2003:272) warns though that restrictions on urban restructuring should also be recognised. It is quite clear that the inheritance of peripherally located townships and informal settlements will not vanish. Apart from questions of funding, there are social ties and networks, and significant investments in place. Much greater consideration should be given to the transformation of these areas, which includes finding ways of expanding local economies in these areas, improving transport, and making life more convenient. The housing program is intended to serve broader economic and social development goals rather than merely the delivery of shelter (Charlton, 2004:4).

Housing is an important constituent of the social welfare system, but is also a key component of the economy. Housing policy is regarded as principal mechanism to address the phenomenon of informal settlements because the assumption is that informal settlements materialise as a result of a lack of housing (Marx, 2003:303). Thus, current policy directs attention to different levels of government to devise housing strategies and integrated development plans to meet the goals of integrated, healthier, safer and more vibrant urban areas (Marx, 2003:303). While housing policy sets out to attain this, the Housing Department, according to Marx (2003:304), simply has no resources to manage the construction and provision of health facilities and services, protection services, local government or job creation initiatives. “Thus, not only does housing policy fail because of these structural bureaucratic limitations in its ability to implement its vision, but it also fails to acknowledge the prior question of why there is a lack of housing in the first place”(Marx, 2003:304).

2.15 HOUSING SUBSIDIES AND FUNDING

A housing subsidy is a grant by government to qualifying beneficiaries to be used for housing purposes (Housing Act, Act 107 of 1997). The subsidy is either paid to a seller of a house or, in new developments; it is used to finance the construction of a house that complies with the ministerial minimum norms and standards. The house is then transferred to the qualifying beneficiary. One of the DHS‟s areas of responsibility in the

35 delivery of human settlements relates to the bottom most end of the market, where it provides housing subsidies to the poor. This is where the bulk of the housing backlog exists; affecting mainly those who earn below R3 500 a month.

According to the 1994 White Paper on Housing, high levels of unemployment, relatively low average wage levels and levels of costs in the provision of housing, contribute to a major affordability problem in South Africa (Housing Act, Act 107 of 1997). An ability to contribute to the cost of housing is severely limited in most families in the country. Given constraints that are imposed by a need for fiscal discipline, it is clear that the state will not, in the foreseeable future, be able to provide levels of subsidisation at the lower end of the market which are sufficient to cover the costs of delivering a formal house to every South African in need of housing. It is, therefore, central to Government's approach with regard to provision of housing to utilise a combination of the provision of subsidies within the fiscal abilities of the state to those who are most in need and least able to contribute to the costs of their own housing and, through various mechanisms, mobilising individual savings as well as private/non-State credit in order to supplement subsidy assistance which is provided by the state (Housing Act, Act 107 of 1997).

The Housing Act, (Act 107 of 1997) “places emphasis on the development and improvement of various housing subsidy programmes. Amongst these programmes are rental and social housing subsidies. All of these subsidy programmes, including those linked to projects, are revised to ensure compliance with all the necessary procurement processes, consolidation subsidies, PHP, rural subsidies and institutional subsidies. The housing subsidies have increased by up to 11, 68 percent, according to Department of Housing records, with effect from April 2005 (Housing Act, Act 107 of 1997). This meant that the scope of subsidies provided has seriously been broadened to cater for people with disabilities who receive an additional amount to normal subsidy in order to enable them to make their homes disability-friendly and accessible in accordance to their physical needs. This is an indication of observing and showing respect for the right to dignity and a comfortable living environment for all citizens of the country (Housing Act, Act 107 of 1997).

2.15.1 Project-linked subsidies

A Project-Linked Housing Subsidy is a grant from the government that can be used to buy a house, together with the land on which it stands, in an approved municipal housing project. The applicant can only apply and be awarded this subsidy once and the records are kept at the municipal offices (Housing Act, Act 107 of 1997).

2.15.2 Individual subsidies

Individual housing subsidies are available to low-income households who wish to buy a residential property for the first time. It can be used to buy an existing house, including the property on which the house stands. Successful applicants receive this subsidy only once. It is not a cash pay-out but is paid directly to a financial institution or a conveyance attorney (Housing Act, Act 107 of 1997). The latter option is only available to beneficiaries with access to a housing credit. The new subsidy amount is nearly R160 000.00. The revised subsidy amount is expected to improve beneficiary access to mortgage finance. It is available on a first come first served basis.

2.15.3 Consolidation subsidies

Consolidation subsidies are subsidies paid out on a group basis. This subsidy mechanism gives former beneﬁciaries of serviced stands, ﬁnanced by the previous housing dispensation (including the Independent Development Trust‟s site and service schemes), and the opportunity to acquire houses. A beneficiary needs to be a member or part of a group with a set social contract (agreement) outlining the project goals and how they are going to be achieved. The group should be represented by a Community- Based Organization that will take responsibility for the project (Housing Act, Act 107 of 1997).

2.15.4 Institutional subsidies

Institutional subsidies are given to organisations within the community that must also agree to pay towards the building project. The houses built then belong to the organization, and not individual beneficiaries, for at least four years after completion. An Institutional Subsidy is paid out to an organisation (a registered company, co-operative or association) that must also pay towards a building project (Housing Act, Act 107 of 1997). The houses built in this project belong to the organization for at least four years

37 after completion. After these four years, the house may be sold or transferred to the beneficiary, or the beneficiary can apply for a housing subsidy for another property. The Institutional Subsidy is different from other housing subsidies in that it provides a standard rate for every household earning less than R3 500 per month, and does not necessarily end with the beneficiary owning the property (Housing Act, Act 107 of 1997).

2.15.5 Relocation assistance

Relocation assistance is given to people who are eligible for a housing subsidy but are currently paying home loans and are struggling to afford payments. Relocation assistance provides an alternative option to defaulting borrowers who were three months in arrears on 31 August 1997, and where the option of rehabilitating these mortgage loans is not affordable. This alternative provides an opportunity to obtain affordable housing with the assistance of the housing subsidy. A person who is eligible for relocation assistance must enter into a relocation agreement to relocate to affordable housing (Housing Act, Act 107 of 1997).

A discount benefit scheme promotes home ownership among tenants of publicly-owned rental housing, both municipal and provincial. Through this scheme, the buyers can receive a discount on the selling price of the property. The buyer also does not pay any transfer costs. Some of the municipalities in the country have transferred most of their housing stock to the tenants who are using this scheme (Housing Act, Act 107 of 1997).

2.15.6 Rural subsidies

This housing subsidy is available to beneficiaries who enjoy only functional tenure rights regarding the land that they occupy. In rural areas, many people don't have legal rights over their land but they do have functional security of tenure. For example, tenure granted in terms of the laws and customs of tribes, the custom, usage or administrative practice in a particular area or community or beneficial occupation of State land for a continuous period of not less than five years. These kinds of tenure are protected under the Protection of Informal Land Rights Act while land reform processes are implemented. However, people who don't have legal tenure are not able to access subsidies under the Housing Subsidy Scheme so a special subsidy has been developed (Housing Act, Act 107 of 1997).

2.15.7 Peoples housing process

Peoples Housing Process is a low-income housing delivery approach, which promotes involvement of the beneficiaries in the development of their own houses. The Peoples Housing Process provides training and technical assistance to families that own undeveloped, serviced property and want to get a housing subsidy to build their own homes. By contributing their labour rather than paying someone else to do the work, these families can then use their housing subsidy and personal contributions to build bigger or better houses for less money (Housing Act, Act 107 of 1997).

2.15.8 Subsidy for people who have disabilities

People with disabilities who qualify for a housing subsidy receive additional amounts to improve their houses with special additions such as paving and ramps to their doors, grab rails in bathrooms, and visible door bells for the deaf. People who are disabled or health-stricken are entitled to a full housing subsidy (Individual, Project-Linked or Relocation Assistance) without having to pay a contribution, even if their household budget is more than R1 500 but less than R3 500. In other words, they get a dispensation to not have to pay a contribution. The disabled and health-stricken are also entitled to a variance amount over and above the subsidy amount to cover the cost of special structures, for example, a wheelchair ramp for the walking disabled (Housing Act, Act 107 of 1997).

2.15.9 Farm resident subsidies

The housing-subsidy programme for farm residents addresses the wide variety of housing needs of people working and residing on farms by providing a ﬂexible package of housing models to suit the local context. In most instances, the programme will be applied where farm residents are required to reside close to their employment obligations and where the farm land is distant from the nearest town, rendering the settlement of the farm residents in town impracticable. Farm residents play an important role in all aspects of their housing solutions with regard to the selection of options, the design and implementation phase, as well as the ongoing management of the housing stock (Housing Act, Act 107 of 1997).

2.16 BUDGET

The department‟s 2013/14 budget was hiked by R2, 9 billion to R28, 1 billion. The allocation was expected to be increased to R32, 7 billion in 2015/16. The conditional grant to provinces totaled R53, 7 billion over the Medium Term Expenditure Framework (MTEF) period. The Urban Settlements Development Grants to municipalities received about R30 billion in the MTEF period (South African Consulate General, 2014).

2.17 HOUSING INSTITUTIONS

With regard to housing development, the government has established various national institutions to facilitate the specific housing and housing-related needs of the market, in addition to the role provincial governments and municipalities play. It is a reality that a large number of households in South Africa are currently excluded from access to housing credit through the formal banking sector due to a number of reasons (Housing Act, Act 107 of 1997). Through the housing subsidy scheme, the lower income households, for which housing credit is not a viable option, is provided with a housing unit. The upper income bracket of the subsidy scheme requires end-user finance to access a housing product. Because of this there is a large number of the South African population who are under- or un-served as a result of:

 The conventional banking sector being unable to service them due to structural incompatibilities,

 Insufficient capacity in the emerging, increasingly successful but inadequately funded specialized lending sector, and

 Insufficient focus by Government and the private sector on alternative tenure forms.

Following intensive local and international research, the National Department of Human Settlements concluded that four mutually comprehensive and supportive approaches should be adopted in order to assist the under- and un-served portion of the population to access housing. These are (Department of Housing, 1994):

 Government initiative aimed at facilitating and encouraging the formal banking sector to increase lending to the lower end of the housing market,

 Proactive steps to foster growth and development of the emerging alternative lending sector,

 A major initiative to stimulate the provision of housing under a variety of tenure options, and

 Mechanisms to substantially promote and expand the amount of personal savings mobilised in the housing process in order to assist in the achievement of the above objectives, Government created a number of housing support institutions, with various roles and functions. All institutions are required to report quarterly to the Department in terms of the Public Finance Management Act. Quarterly and annual reports must be submitted to the National Department of Human Settlements. The Annual reports are tabled in Parliament, (Housing development agency Act, Act 2 of 2008). These institutions include the National Housing Finance Corporation (NHFC), the National Urban Reconstruction and Housing Agency (NURCHA), Servcon Housing Solutions, Thubelisha Homes, the Social Housing Foundation (SHF), the South African Housing Fund (SAHF), the PHP and the Rural Housing Loan Fund (RHLF) (Department of Housing, 2004). These institutions are discussed here under.

2.17.1 National housing finance corporation

The NHFC was established as a result of a cabinet decision in May 1996, as envisaged in the White Paper on Housing, to search for new and better ways to mobilise finance for housing, from sources outside the state, in partnership with the broadest range of organizations. The NHFC‟s business plan revolves around creating housing opportunities for low and moderate income families through innovative housing finance solutions and partnerships.

This is to be achieved through (as stipulated in the Department of Housing records,

1996):

 Funding intermediaries to promote broader access to housing,

 Building adequate and sustainable capacity within organizations which it funds,

 Partnering organizations to pioneer new finance and housing delivery, and

 Specialisation in identifying, assessing, pricing, monitoring and managing risks associated with the placement of wholesale funds with retail intermediaries (Department of Housing, 1996).

2.17.2 National urban reconstruction and housing agency

Nurcha, a Section 21 Company, was established in 1995 and financed primarily by the South African Government and the Open Society Institute of New York. Additional finance has been raised at different times from the Swedish, United States and Norwegian Governments and through the Future Growth Fund, Overseas Private Investors Corporation, Shared Interest and Rand Merchant Bank and other South African Financial Institutions. The National Urban Reconstruction and Housing Agency lends money to small/emerging contractors that are involved in subsidy housing. In order to assist contractors and developers who are unable to access bridging finance from a bank, the National Urban Reconstruction and Housing Agency has developed innovative finance programmes and has entered into agreements with financial intermediaries who ensure an appropriate flow of finance to projects. Applicants who require this form of funding are normally contractors who also require financial- management support (Department of Housing, 1995).

2.17.3 Servcon housing solutions

Servcon was established in 1994 as a 50-50 joint venture between the Department of Housing (representing government) and the Council of South African Banks (presently the Banking Association of South Africa). When the agreement was renewed in 1998, Servcon was mandated with provision of exclusive management services in respect of its designated portfolio

Servcon‟s current activities include:

 Enhancing the normalisation/regularisation of provincial housing department‟s low income housing portfolios, and

 Acquiring and holding suitably located state owned land and/or landed property for integrated human settlement development.

2.17.4 Thubelisha homes

Thubelisha Homes, a section 21 company, was established in June 1998 as a special purpose financial vehicle to create housing stock for clients of Servcon Housing Solutions. As a result of the agreement between government and the banks to subsidise the transfer of properties to all of the remaining Servcon clients, the relocation programme has been effectively discontinued. Accordingly, Thubelisha mandate has been reviewed in line with the objectives of the department‟s comprehensive housing plan. Thubelisha has been repositioned to provide provinces and municipalities with technical assistance to unblock stalled housing projects and prepare fast-tracked housing projects to respond to emergency housing circumstances. Thubelisha does assists government‟s housing plan in the following key areas:

 Informal settlements,

 Social and community facilities,

 Social (medium-density) housing,

 Job creation,

 Appropriate technology, and

 Delivery-enhancing interventions.

2.17.5 Social Housing Foundation

The Social Housing Foundation (SHF) is a section 21 Company which was established in 1997 by the National Department of Housing. The organisation was established as a national institution and is formally mandated by the National Department of Housing to develop and build capacity for social housing institutions, and to develop a policy framework for the social housing sector through the Housing Amendment Act, (Act no.20 of 1999). Strategic objectives of the SHF are:

 Policy support,

 Monitoring and evaluation,

 Social housing institution support,

 Sector development,

 Government support, and

 Sector communication and knowledge management.

There has been evident growth shown by the SHF and the social housing sector in recent years. By March 2004, there were 83 SHIs in South Africa. The most significant agreement relating to social housing is the one between the European Commission (EC) and the South African Government where the EC has pledged 20 million Euros (about R200 million) for social housing over the next five years ending 2009 (Department of Housing, 2004).

The EC programme was strengthened with a considerable amount of work conducted around building internal staff capacity, systems, procedures and manuals of the SHF. Three SHIs were successful in applying for grant funding for capacity-building and development, and plans for a number of additional institutions are in the pipeline. In 2005/06 government awarded a grant of R18 118 000 to the SHF (Housing Amendment Act, 1999) (Act no.20 of 1999).

2.17.6 Rural Housing Loan Fund (RHLF)

The RHLF was established in 1996 by the South African Government following a grant of about R150 million from the German Government (Housing Act, Act 107 of 1997). The RHLF's core business is providing loans, through intermediaries, to low income households for incremental housing purposes. Incremental housing is a people driven process; and RHLF's core business is to empower low income families in rural areas to access credit that enables them to unleash the potential of their self-help, savings and local ingenuity to build and improve their shelter over time. The Rural Housing Loan Fund has channeled funds to homeowners in dozens of rural areas in all nine provinces in South Africa through 20 medium and small retail lenders. The RHLF has set up a Peer Support Network (PSN) to support capacity building and loyalty to the RHLF mission among intermediaries. This unique approach to development finance seeks to institutionalize peer interaction among non-competitive start-ups (Housing Act, Act 107 of 1997).

2.17.7 National Home-Builders Registration Council (NHBRC)

The National Home Builders Registration Council (NHBRC) is a section 21 company established in terms of the Housing Consumers Protection Measures Act (1998). Its purpose is to provide housing consumers with warranty protection against defects in new homes, and to provide protection against any failure of builders to comply with their obligations in terms of the act. The Housing Consumer Protection Measures Act 1998 (Act 95 of 1998) extends the NHBRC home warranty scheme to government housing subsidy schemes. The warranty scheme has been implemented in three phases, since the approval of the Act by Parliament in October 1998.

The first phase of the Act came into effect on the 4th June 1999. At this point the Council assumed powers of a statutory body and began consultation processes necessary to implement the second and third phases. The second phase of the Act came into effect on 1 December 1999. At this point, the NHBRC received statutory powers to operate effectively in the home building market with exception of subsidy only projects. This phase made it obligatory for all builders operating in the mortgage bond market to be registered. During this phase, extensive consultation took place with regards to Ministerial Regulations, NHBRC Regulations, technical standards and financial implications (Housing Act, Act 107 of 1997).

The third phase was implemented with effect from 1 April 2002 and the Warranty Scheme now applies to all housing subsidy financed houses constructed as part of approved projects. The Warranty Scheme does apply to existing housing stock purchased by beneficiaries through individual subsidies. It furthermore does not apply to institutional housing subsidy programmes where existing buildings are converted and upgraded. The Warranty Scheme ensures that all new homes built from the 1st April 2002 under the government subsidy scheme are fit for habitation, build in a workmanlike manner, comply with the NHBRC technical requirements, carry a one year roof leak warranty from the home builder and carry a five-year major structural defects warranty from the homebuilder which is supported by the NHBRC fund. The NHBRC generates most of its funding through registration fees (Housing Act, Act 107 of 1997).

2.18 SUMMARY

In this chapter an investigation into the backlog in service delivery in South Africa and its impact was reported on. Furthermore, housing policies, finance institutions and their role, role of municipalities, problems and constraints faced by DOHS were reviewed. The literature review has revealed the state of the DOHS, and issues of basic needs in RSA. It has also highlighted the Government‟s commitment to creating a better life for all South Africans, especially the poor through the provision of adequate shelter.

Since the inception of democracy in 1994, the ANC led government has worked tirelessly towards the crafting of legislation and putting policies and programs in place for the realisation of the Freedom Charter. One of the very important priorities contained in the Charter, is the provision of proper homes with all services including water, electricity and sanitation for all those in need. Even though progress has been made in accelerating service delivery, the backlog is still a huge step back for the Government and development within South Africa (Charlton, 2009:85).

It is a two decade since South Africa became a democratic state and despite promises and efforts to improve service delivery to the public a backlogs still exists. The DOHS has been tasked with bringing service delivery to the public such as provision of housing with basic services (water, sanitation and electricity). There are a lot of people who live in conditions that do not conform to accepted standards. To this end the department still struggles to meet service delivery targets set, as a result some of the budget allocated to the department is being taken away due to non-expenditure. The Department has seemed to be seriously committed to the service delivery process but delivery targets were not fully achieved because of continuous problems such as poor workmanship, delays in procurement, poor municipal planning and bulk infrastructure challenges, finance, project management and quality assurance.

CHAPTER 3

RESEARCH METHODOLOGY

3.1 INTRODUCTION

Having explored the theoretical aspects of the study in chapter two, the researcher had to follow certain procedures that ensured a thorough analysis of the problem as laid out. This chapter provides the research methodology, which outlines the methods employed by the researcher to gather in-depth knowledge about the phenomenon under study. In this chapter, the research methods employed and when the study was conducted, are explained and their choice justified.

Borg, Gall and Gall (2003:93) define research methodology as the systematic and logical study of the principles guiding research. It is concerned with how the researcher established knowledge about the study and how to convince others that the knowledge is correct. Leedy and Ormrod (2001:152) argue that research methodology controls the study, dictates the acquisition of data, arranges them in logical relationships, sets up a means of refining the raw data, contrives an approach so that the meaning that lies below the surface of those data become manifest, and finally issues a conclusion or series of conclusions that lead to an expansion of knowledge.

In this study research methodology is focused on the research design, target population of study, sampling design and procedures, data collection instrument, data collection procedures, data presentation, analysis and interpretation. The research methodology adopted in this chapter serves as a working plan which provided guidance to obtaining answers to or solutions of the housing service delivery backlog faced by the South African Government.

3.2 RESEARCH DESIGN

According to Leedy and Ormrod (2001:155), research design is a framework used as a guide in collecting and analysing data. There are many research designs available for the purpose of any research. The choice depends on the nature of the study, population under study and even expertise of the researcher. All the designs are concerned with systematic collection, presentation and analysis of data. The function of research design is to help the researcher obtain clear and meaningful answers to problems.

The research design that was employed by the researcher in this study is the descriptive survey design. Borg, Gall and Gall (2003) define a survey as an attempt to obtain data (facts and opinions) about the current conditions and state of things. A descriptive survey is one which summaries the status of some phenomena of interest as they currently occur. A descriptive sample survey collects information from a sample of the study population and relates the attributes to the rest of the population (Neuman, 2003). Since the data is collected from a sample with similar attributes to that of the population, the results can then be generalised to the total population within calculable margin of error.

The researcher selected the survey design because of the following advantages:

 Surveys have the general capacity to describe the characteristics of a large population. The study becomes feasible by carefully choosing a sample and administering standardised questionnaires. The sample chosen from the population represents those who were not chosen but had the opportunity to be part of the sample (Neuman, 2003).

 Standardised questionnaires have a potent strength with regards to measurement. The researcher seeks or asks the same questions to all subjects and has to impute the same intent to all respondents giving particular responses (Neuman, 2003).

However, the survey design has some disadvantages such as:

 Surveys often appear superficial in their coverage of complex topics. Researchers tend to design questions that maybe minimally appropriate to a number of respondents (Neuman, 2003).

 A survey design seldom addresses the context of social life, although questionnaires can provide information, the survey researcher can seldom develop the feeling for the total life situation in which the respondents are thinking and acting as does participant observation. To overcome these, the researchers first educated the sample about the boundaries of the research and made easy to understand questionnaires (Neuman, 2003).

The researcher selected the survey design because it is easy to administer and understand on the part of the respondents. A survey design is based on the assumption that if the researcher follows certain procedures, it is possible to make inferences about a large group of elements by studying a relatively small number selected from that group.

3.3 SAMPLING

Ideally the researcher would have liked to study the entire population to give more weight to the findings. However, the researcher was unable to study the entire national population of South Africa and settled for a sample. Borg, Gall and Gall (2003) defined population as the entire set of objectives and events or group of people, which is the subject of research and about which the researcher wants to determine some characteristics. In this study, the population comprised of the people of Chris Hani District Municipality and employees of Department of Human Settlements in Eastern Cape. The population size is Eighty (80) people; consist of Thirty (30) employees and Fifty (50) community members.

Bailey (1999) defines a sample as a subset of the population of study and sampling is a process by which the study subjects or objects are chosen from a larger population. The Survey Research Center of the Institute of Social Research of the University of Michigan cited Leedy and Ormrod (2005) as saying that sampling is a process of choosing from a much larger population, a group about which we wish to make general statements so that the selected part would represent the whole group. Borg, Gall and Gall (2003) share the same view with the institute and define sampling as a way of selecting a given number of subjects from a defined population as a representative of that population.

A number of factors are considered when determining the size of the sample, though the basic rule would say that the larger the sample the better. Borg, Gall and Gall (2003) further argue that sample size depends largely on the degree to which the sample population approximates the qualities and characteristics of the general population. In this study the researcher applied the purposive sampling method.

3.3.1 Sampling methods

Sampling methods can be classified into two major classes which are those that yield probability samples and those that yield non-probability samples.

3.3.1.1 Probability sampling

In probability sampling, the probability of selections of each respondent is known. The probabilities are known because the individuals are chosen by chance Borg, Gall and Gall (2003) .The probability sampling methods are:

 Random sampling,

 Systematic sampling,

 Stratified random sampling, and

 Cluster sampling.

In the random sampling method each person in the universe/population of study has an equal opportunity of being chosen for the sample and every collection of persons of the same size has an equal probability of becoming the actual sample. All that is required to conduct a random sample after an adequate sampling frame is constructed of is to select persons without showing bias for any personal characteristics Borg, Gall and Gall (2003).

3.3.1.2 Non-probability sampling

In non-probability sampling, the probability of selection is not known; individuals are selected not by chance but other means Borg, Gall and Gall (2003). The researcher has no way of forecasting or guaranteeing that each element of the population will be represented in the sample. The non-probability sampling methods are:

 Convenience sampling,

 Quota sampling,

 Purposive sampling, and

 Snowball sampling.

This study used purposive sampling which is an acceptable kind of sampling for special situations. Purposive sampling was selected because the research problem required well-informed members of the population; hence officials from the Department were selected to provide information on related issues, management of housing programmes and challenges they were experiencing (Louis and Lawrence, 1994:198). People or other units are selected for a particular purpose.

3.3.2 Advantages of sampling

Sampling has some advantages over other methods such as observation. The advantages of sampling are as follows (Louis and Lawrence, 1994:198):

 If done with care, sampling can be highly accurate,

 In a survey unlike in observation or document study, the research is conducted at a single point in time so that the opinions of all respondents are comparable,

 If a total population is to be observed it is difficult to conduct interviews in a period of time without using an enormous number of interviewers, and

 Problems of record keeping are much greater if an entire population is used and more paper work simply provides an opportunity for error and temptation for laxity in procedures.

3.4 DATA COLLECTION

Data collection procedures refer to the procedure that the researcher used employed in gathering data from the respondents. There are two forms of data collection and these are primary and secondary data collection techniques. Leedy and Ormrod (2005) identified data as the information that lies closest to the source of the ultimate truth underlying the phenomena. For the purpose of this study primary data was collected from the sample survey whilst secondary data was collected from books and trade journals and the worldwide web (internet).

In an attempt to address the objectives of this study, questionnaires were used as the data collection instrument. This study is a quantitative study that utilised the questionnaire to gather primary data from respondents and library research to gather secondary data from books and professional journals.

3.4.1 Questionnaires, design and administration

Leedy and Ormrod (2010:189) define questionnaires as written forms of papers on which questions are asked and information about a research study is gathered. In this study the questionnaire was divided into three sections with section A covering some introductory questions that solicited general personal data about the respondents these questions are very important as they set the respondent on by giving personal data like sex and age groups, however, they were not asked specific questions such as the respondent‟s name.

Section B and C provided some multiple choice questions with provided answers from which respondents would choose answers. Some questions covered the opinions of the respondents as they were left to write what they thought of the questions asked; there was enough space provided for the respondents‟ answers. There was great care in the construction of the questionnaires to avoid double barreled questions, jargon and leading questions so that there would be no elements of bias on the part of the researcher. The questionnaires were self-administered in the sense that respondents were made to read and answer the questions contained in the questionnaires all by themselves. The questionnaire had both open-ended questions and close-ended questions.

3.4.2 Advantages of questionnaires

The researcher selected the questionnaire because of the following advantages over other techniques such as observation:

 In close-ended questions, respondents are offered a set of answers from which they are asked to choose the one that most closely represents their views. One of their strengths is that the respondents do not waste time thinking what to write, as answers are provided Leedy and Ormrod (2010:189).

 The questionnaire is cheap in terms of preparation, construction and administering. The questionnaire is free from interview bias. In interviews the interviewee sometimes gives answers that are meant to please the interviewer who is in front of them.

 With questionnaires the respondent is alone and more likely to give objective responses.

 Questionnaires guarantee anonymity. In this study, no names were written on the questionnaires and as a result under these conditions respondents responded fearlessly as no one will know who said what.

 The close-ended questionnaire provides answers that are easy to collect tabulate and analyse.

 The questionnaire technique was chosen since it is widely viewed as the most attractive method of quantitative data collection Leedy and Ormrod (2010:189).

3.4.3 Disadvantages of the questionnaire

In realising the advantages of questionnaires over other techniques such as observation, the researchers were also aware of shortcomings of using questionnaires in a study over other techniques such as observation Leedy and Ormrod (2010:189). The major ones being:

 Questionnaires have a low rate of return - respondents may not bother to return the questionnaires after completing them. To overcome this shortcoming, the researcher mailed follow-up reminders to respondents and in some cases delivered some of the questionnaires by hand to respondents within manageable distances and then collects them by hand after an agreed period. In the researcher‟s view this should motivate respondents to fill in all the questionnaires and meet collection deadline.

 Failure by respondents to comprehend the questions - the researcher made it easy to understand questions for all levels of respondents by making the questions clear.

 Danger of non-response to certain questions - the researcher educated the respondents on the requirements of the questionnaires.

3.5 DATA PRESENTATION, ANALYSIS AND INTERPRETATION

Data analysis is the process of developing answers to questions through the examination and interpretation of data. The basic steps in the analytic process consist of identifying issues, determining the availability of suitable data, deciding on which methods are appropriate for answering the questions of interest, applying the methods and evaluating, summarizing and communicating the results.

3.5.1 Data presentation

In this study, data is presented with the aid of tables, graphs and pie charts. These techniques allowed the researcher to summarise and express both quantitatively and qualitatively the strengths of relationships. The careful classification, organization and combination of field notes (questionnaires) required patient checking and cross checking and the application of systematic techniques.

3.5.2 Data interpretation

Interpretation simply means that after the data have been accumulated and processed, arranged into categories, converted to graphical presentation, analysed statistically or by any other means of manipulation, there must finally be a discovery of the meaning of the data items .In this study data was interpreted manually with the help of tables, graphs and pie charts generated through the help of computer programmes such as Microsoft Office Excel 2013 and Microsoft Office Word 2013.

3.6 SUMMARY

This chapter outlined the methods of research that were used to gather data, namely: research design, population of study and sampling, data collection procedures that was used to collect data in the study, data presentation, analysis and interpretation. The next chapter links up with this chapter by looking at the findings, conclusions and recommendations that are generated from the study.

CHAPTER 4

DATA PRESENTATION AND ANALYSIS

4.1 INTRODUCTION

This chapter makes a presentation of data collected from the field for the study. Detailed analysis of data using frequency tables, pie charts and bar graphs is presented.

Two sets of questionnaires were used to gather data in this study. The first set of 30 questionnaires was used to gather data from employees from DOHS. The second set of 50 questionnaires was used to gather data from the public in the province. Out of the 30 questionnaires distributed to the employees of the Department, 25 questionnaires were completed and returned representing 83 percent response rate, whilst for the 50 sent to the public 30 questionnaires were completed and returned representing 60 percent of the response rate. Data from the general public was analysed quantitatively and was considered first, whilst that from employees is analysed qualitatively and considered second.

4.2 DATA FROM THE GENERAL PUBLIC

Table 4.1 shows that the response rate for the general public was 60 percent. The sample was large and response rate was high, yielding valid results. Fifty (50) questionnaires were distributed to the general public and Thirty (30) questionnaires were completed and returned.

Table 4.1: Response rate

Data collection method Target Response Response Rate

Questionnaire 50 30 60%

The results of Table 4.2 shows that 40 percent of respondends were male and 20 percent of the respondents were female. According to these figures, it can be interpreted that all gender (male and female) were adequately represented in the study. This helps to generalise the findings without prejudicing gender issues.

Table 4.2: Gender

Gender Frequency Percent (%)

Male 20 40

Female 10 20

The results in the Figure 4.1indicate that 3(10%) were in the 18-20 age group, 6(20%) respondents were in the group of 21-30 years of age, 11(37%) respondents were in the group of 31-40 years of age, 8(27%) respondents were in the group of 21-50 years of age and 2(6.67%) respondents were in the group of 51-60 years of age .There was no respondent within the age group of 60 yeas+.

Figure 4.1: Age group

18-20 21-30 31-40 41-50 51-60 60+

Table 4.3 shows that those respondents with higher levels of education understand the problems at hand and can more easily understand the questionnaire.

Table 4.3: Education level

Education level Number

Below Grade 9 5

High School 10

Certificate Or Special Course 10

University Degree Or Diploma 5

Postgraduate Degree -

Figure 4.2: Periods stayed at current residence

0 Under 5 Yrs 6-10 Yrs 11-15 Yrs 16-20 Yrs 20+ Yrs

The information shown on the line graph in Figure 4.2 indicates that most of the respondents have spent some significant periods at the same residence. The majority of the respondents have spent between six and over 20 years at the current residence, meaning that these people can be relied upon to judge the type of services they received from the Department.

Table 4.4 shows that the participants have families with members between one and ten with the majority of them (20) having four to six members in their families. This can be interpreted to mean that all the respondents contacted have families that they look after, and as such they are interested parties as far as service delivery by the Department is concerned.

Table 4.4: Family size

1-3 Members 6

4-6 Members 20

7-10 Members 4

11 and above -

Figure 4.3: Employment status

Self Employed Unemployed Employed Permanent Contract/Temporary Casual Employment

According to the findings in Figure 4.3, ten respondents representing 33 percent of the respondents were permanently employed, eight (27 percent) were on contract employment. The majority had work experience that makes them competent to buy or pay instalments for cheaper housing facilities

The pie chart in Figure 4.4 shows that respondents representing 15 (50 percent) have income an of R0-R500, five (16.67 percent) have an income of R501-R950, two (6.67 percent) have an income of R951-R2500, three (10 percent) have an income of R2501- R4000 and 5 (16.67 percent) have an income of R4001+.This can be interpreted that the majority of respondents cannot afford to buy houses and pay for basic services, they are relying on service delivery from government.

Figure 4.4: Monthly incomes

R0-R500 R501-R950 R951-R2500 R2501-R4000 R4001+

4.3 SERVICE DELIVERY BACKLOG

In order to investigate the backlog in service delivery in South Africa a number of questions in the questionnaire were used to address the areas of concern. After recording, the various questions were analysed with the help of the SPSS software. The questionnaire was divided into two main sections in this category, namely: sections B and C. Section B measured the service delivery backlog whilst section C measured the access to basic needs.

Table 4.5: Service delivery backlog

DWELLING TYPE

Formal House 2

RDP House 8

Informal Dwelling (Shack) 5

Flat in the backyard 5

Rent 10

The frequency Table 4.5 shows that the majority (ten) and (eight) of the respondents live in rented and RDP dwellings respectively. Five each indicate that they live in flats in the backyard and informal dwellings while only two respondents lived in formal dwellings. These statistics show that the majority of the respondents who live in

59 informal dwellings, flats in the backyard and rented dwellings do not own houses; hence, there are backlogs in the delivery of houses and services from the Department.

4.3.1 Standard of housing

Respondents were asked to rate the standard of houses they lived in. Four categories namely: good, below standard, poor and not sure, were used to measure the standard.

Figure: 4.5: Standard of the house

2(7%) 2(7%)

8 (27%) Good Below Standard 18 (60%) Poor Not Sure

The information in Figure 4.5 shows that the majority (26) representing 87 percent of the response rate indicated that the dwellings are of poor and below standard. However, two (7 percent) were not sure or could not rate their dwellings, and another two (7 percent) felt their dwellings were of a good standard. This can be interpreted that the general public feels that the dwellings are of poor and below standards.

Based on the information in Table 4.6, it can be seen that there are some challenges faced by the Department in the provision of services. All the respondents indicated that they were aware of what service backlogs were and all concurred that there are some service delivery backlogs in their various areas of dwelling. The majority (ten each) agreed and strongly agreed, respectively, that every citizen has the right to adequate housing and basic services. However, four disagreed to the notion and six were very sure of the issue. Twenty-two respondents were in agreement that the RDP programme has improved the lives of many people in the province. On the other hand, only three

60 respondents disagreed and five were not sure whether the RDP programme has improved the lives of many people in the province.

Table 4.6: Understanding delivery challenges

Strongly Disagree Not Agree Strongly disagree sure agree

I know what service delivery is about 10 20

There are service delivery backlogs in - - - 10 20 my area

There are problems and challenges in - - - 10 20 the provision of services

Every citizen has a right to adequate - 4 6 10 10 housing and basic services

The RDP programme improved lives of - 3 5 10 12 many citizens

Government is attempting or solving the 5 20 1 4 - backlog of service delivery

There is illegal selling of dwelling units - - 5 15 10

There is vandalism of units - - 5 15 10

There is illegal occupation of units 2 8 5 10 5

The department encounters corruption 2 4 3 13 8 practises

Citizens contribute to service delivery 10 15 1 4 - backlogs

The majority of 20 and five disagreed and strongly disagreed, respectively, that the government is doing something to solve the problems of service delivery backlogs. Only four felt the government was doing something in this regard whilst one was not sure. There was a general feeling that there is illegal selling of dwelling units in the province, with 10 and 15 agreeing and strongly agreeing, respectively, while five were not sure. The same numbers felt there is vandalism to infrastructure in the province.

There were some mixed feelings with regard to illegal occupation of units by the public. Fifteen (15) were in agreement whilst ten were in disagreement with five not being sure that there is illegal occupation of dwelling units. The majority (21) agreed and strongly agreed that there is corruption in the Department with regard to allocation of dwelling units, six disagreed and strongly disagreed whilst three were not sure. Ten and 15 disagreed and strongly disagreed, respectively, that citizens contribute to service delivery backlogs, whilst one and four were not sure and agreed, respectively.

4.3.2 Access to basic needs

Three questions were used to test the respondents‟ accessibility to basic needs in the municipality. The response is as shown in the Table 4.7.

Table 4.7: Access to basic needs

Strongly Disagree Not Agree Strongly disagree sure agree

There is satisfaction with regard to the 25 5 - - - quality of service delivery in the Eastern Cape

There is insufficient of basic needs such - - - 4 26 as electricity, water supply and sanitation

The service delivery is slow - - - 2 28

Table 4.7 depicts sentiments by the respondents on access to basic needs. All the respondents disagreed and strongly disagreed that there is satisfaction with the service delivery system in the province. Twenty-five (25) and five strongly disagreed and agreed, respectively, that there is satisfaction with service delivery systems in the province. All the respondents 26 and four strongly agreed and agreed that there is an insufficient basic need such as electricity, water and sanitation in the province. All the correspondents concurred that service delivery in the province is very slow.

4.4 DATA FROM THE DEPARTMENT OF HUMAN SETTLEMENT EMPLOYEES

This section was aimed at gathering data from employees from the DOHS on the challenges faced by the Department in service delivery to the public. The questionnaire was aimed at senior personnel who are in the policy-making and decision making positions such as inspectors, supervisors, quality controllers and managers. All the data is this section was analysed qualitatively.

4.4.1 Challenges faced by the department

All the respondents agreed that the department is facing some challenges in trying to meet the service requirements of their people. Some of the most commonly faced challenges are:

 Long supply chain management system,

 Procurement systems,

 Vandalism to already existing infrastructures,

 Ever rising informal settlements, and

 Economical challenges.

4.4.2 Impact of backlog on peoples‟ lives

All the respondents agreed that the backlog in service delivery has some negative impact on the lives of people. Some of the impacts include:

 Lack of decent accommodation as people live in informal settlements (shacks),

 Lack of clean water and sewage thereby lacking proper sanitation,

 Lack of refuse collection thereby causing health hazards, and

The respondents felt that the department is doing something in a bid to address the service backlog. The Department is trying to fast track the supply chain management system and the procurement procedures. The Department is also bidding for more funds from the national budget. The respondents also indicated that the Department

63 has no adequate resources to meet the goals. The major resources mentioned are land, mechanical equipment and financial resources.

It was indicated that the Department involves all stakeholders in the service provision process. Stakeholders consulted include; municipalities, beneficiaries, contractors and housing cooperatives. On performance and quality assurance the Department develop Performance Implement Plan (PIP) to measure actual performance against planned performance, housing projects report regularly, they carry out regular on-site meetings, regular inspections, technical meetings and the resident engineer is always on site on a daily basis.

The respondents were not aware of any corrupt activities in the Department claiming that there is good corporate governance in the Department. However, they indicated that there is vandalism to infrastructure since it takes too long for Eskom or municipalities to electrify the units after occupation and also some of the beneficiaries cannot be found to occupy the houses. In order to improve the housing delivery process in the province, the respondents felt there is need to; improve the supply chain system, speed up the signing of contracts, reduce the turnaround time for appointment of contractors and employ more technical staff.

4.4 SUMMARY

This chapter has focused on the instrument that was used to collect data for the study. Questionnaires were utilized as means to collect data for the study. Data was collected and analysed to establish the challenges faced by the DOHS and the impact of service delivery backlogs on people‟s lives. The respondents were willing to give all the information that was required. It became clear that the DOHS is faced with enormous challenge of delivering services .Challenges faced by DOHS such as long supply chain management system, vandalism to already existing infrastructures, poor quality of units ,shortage of staff, ever increasing informal settlements and insufficient funding. The next chapter will deal with the conclusion and recommendations of the report.

CHAPTER 5

CONCLUSIONS AND RECOMMENDATIONS

5.1 INTRODUCTION

This chapter marks the research conclusion, all objectives were met. Current service delivery backlogs in the province were confirmed by the study, and expected solutions were also proffered by the study through inputs from the respondents. This chapter will make conclusion and recommendations on resolving the service delivery backlog found to be prevalent at the Eastern Cape Department of Human Settlements.

5.2 CONCLUSIONS This section addresses all the research objectives and the research questions. The South African Constitution, 1996 enshrines the right of everyone to have access to adequate housing and makes it incumbent upon the State to take reasonable legislative and other measures within its available resources to achieve the progressive realisation of this right. Department of Human Settlements exists to ensure the provision of services to the local community in a sustainable manner. Failure to perform this duty creates difficulties for the community and undermines the work of the state in ensuring that basic services are delivered for all, irrespective of race, colour and creed.

The study sought to explore the problems and challenges confronting the Department of Human Settlements and the service delivery impact thereof in order to attempt to propose ways and means of bringing a resolve to the backlog faced by the Department. The study met the research objectives. In order to meet the research objectives the following research questions were addressed through input from respondents:

 Why is there a backlog in service delivery in Department of Human Settlements in the Eastern Cape?  How far does the Department go in addressing this problem?  What are the strategies implemented by the various countries to alleviate the challenge of backlog in service delivery? and,  What are the relevant strategies that can be implemented by South Africa to address the backlog in service delivery nationwide?

5.2 .1 Research Findings Based on the data analysis and interpretation in the previous chapter, the findings of this study are divided into two main classes covering challenges faced by the department and the impact of the service delivery backlogs on the lives of the public.

5.2.1.1 Challenges Faced By The Department From the observed findings of this investigation, It was found that the department is faced with a variety of challenges, some of which are as follows:  Lack of adequate qualified technical professionals and an inability to keep them within the Department. The Provincial Department of Human Settlements has been operating without some essential technical professionals such as qualified Town Planners and Land Surveyors. The contributions of these professional are very essential in the built environment delivery chain. The lack of such professionals within the system has contributed to the stalling and in some cases, very poor implementation of projects.  Long Supply chain management system. The Department of Human Settlements is unable to speed up the signing of contracts and reduce the turnaround time for appointment of contractors to deliver services due to lengthy procurement systems.  Vandalism to already existing infrastructures-The Department of Human settlement has experienced vandalism to completed units that are not yet occupied by the beneficiaries. The reason for vacant units is due to beneficiaries who have moved to big cities, as they have been on waiting list for a very long time.  Insufficient funding. The equitable share allocated for Department of Human Settlements is insufficient to carry the allocated conditional grant. The main reason for Insufficient funding is that some of the funds allocated to the Department have to be shifted in rectification programme to rectify most of the completed units and existing services that were poorly built due to bad workmanship by contractors, lack of supervision in construction and project management and use of inferior construction materials in the Eastern Cape .Most

of these projects were implemented by Municipalities as Peoples Housing Project (PHP).  There is significant under-spending on budgets for service delivery by responsible departments owing to a lack of capacity, slow procurement systems, non-performance of service providers , sluggish transfer of state land to municipalities, a lack of collaboration from traditional leaders.

 Inability of contractors to deliver adequately has resulted to rectification and blocked projects. Many of the projects implemented over the years by the province are of poor and sub-standard quality and include many projects, which are currently blocked. These blocked projects and houses of sub-standard quality are a point of major concern among members of the communities.  Ever increasing informal settlements, this is due to the result of increase in population, slow delivery of services and due to high rate of unemployment. The constant presence and expansion of informal settlements through increased migration, which have little or no access to services or infrastructure, pose difficulties.  Complicated bureaucratic and administrative processes and the institutional agenda inherited from the previous government are some of the challenges faced by the provincial and local government housing institutions.  Fraud and corruption - puts a lot of strain on the government‟s capacity to adequate service delivery. Like many other countries internationally, South Africa is not immune to acts of corruption. Amongst other service delivery essentials, housing has been hugely affected by corruption throughout the country.  Illegal selling of units. Beneficiaries do not view the house provided as an asset because there is a high rate illegal selling of units or renting out and move back to informal settlements.

5.2.2 IMPACT OF BACKLOG ON PEOPLE’S LIVES It was also found out that, the backlog in service delivery has some negative impacts on the lives of people and these include:

 Lack of decent accommodation as people live in informal settlements (shacks),  Lack of clean water and sewage thereby lacking proper sanitation,

 Lack of refuse collection thereby causing health hazards.

5.3 RECOMMENDATIONS

Based on the findings and conclusions of this study management of the Department of Human Settlements should consider the following recommendations to resolve service delivery backlogs and to improve the service delivery process:

 Supply Chain Review of the procurement system should be undertaken by the Provincial Department. The current system involves competition on price whereas the housing subsidy quantum is fixed. This environment creates problems as service provider‟s under-price in order to win the tender but end up not performing or providing sub-standard work, this is particularly evident in the number of blocked projects and rectification projects in the Province. The Provincial Department is also currently limited in its ability to procure building contractors on an overall and ad-hoc basis timeously due to the requirement in the current procurement policy stating that all contracts above R5 million should be referred to the Provincial Treasury “Interim Bid Adjudication Committee” for evaluation. Thus the Eastern Cape Provincial Departments of Human Settlements and Treasury should amend the supply chain management policy where bidding is adjudicated based on functionality rather than price and functionality adjudicated by the Department of Human Settlements to speed up the signing of contracts and reduce the turnaround time for appointment of contractors to deliver services and decrease backlog.

 Employ More Technical and Qualified Staff Recommended the review of the organisational structure of the department to strengthen the regions and fill vacant posts. Department to develop a mentorship programme for the department to ensure that technical staffs obtain professional status within the Councils. This must entail ensuring that adequately qualified personnel, employed exclusively on merit, are contracted to staff the various sections of the department in order to ensure improvement in overall efficiency and effectiveness of the Department. The province is still relying on a partly outsourced project management system as its internal capacity require improvements, in particular in the area of scarce skills (town-planning, land surveyor, project managers and engineers, etc.).

 Institutional arrangement The Department should enter into service level agreements with all municipalities that had been allocated housing projects. The agreement will clearly stipulate the obligations of these two spheres of government in the implementation of a particular project. A service level agreement should be a prerequisite to the appointment of a contractor to commence with the project. Municipalities should be responsible for close monitoring of the housing projects and be given authority to recommend and disapprove activities taking place in any housing project within their jurisdiction.

A greater role for municipalities in housing delivery could result in faster service delivery. For municipalities to play a more prominent role in the development of integrated sustainable housing settlements, the planning of the housing function needs to be done at municipal level. All spheres of government need to collaborate in implementing government policies and improve the life of the people of South Africa. More attention should be focused on building a clear intergovernmental relations unit that fully understands its role and works hard to synchronize and harmonize relations within the Department and with other spheres of government. This will foster good working relations and enabling cooperation and harnessing assistance when necessary, avoiding conflicts and political interference that delay and frustrate the much needed service delivery.

 Housing consumer education The Department should ensure that a community education programme is implemented in order to capacitate communities on housing delivery issues. It is believed that if communities are capacitated, the level of participation would be high. They would be able to give their views on taking part in decision-making where they would be able to set their quality standards and ensure that those quality standards are maintained.

 Strengthening community involvement in decision making

Empowering people through participation in developmental projects will create a society in which the once poor majority will emerge out of their poverty and transform themselves into citizens with rights and responsibilities like everyone else.

 Corruption It is critical and imperative to formulate and rollout a robust local Anti-Corruption Strategy that coalesces with that of the provincial government. This is necessary, because corruption and maladministration have the potential of eating away at any gains that may be made or may have been made by the government at the local sphere of government and seriously blunt attempts towards service delivery. Additionally, it will go a long way in developing trust for the leadership and inspire confidence from the public.

 Bid for more funds from the national budget

5.4 SUMMARY

The conclusions and recommendations serve to underline the fact that with determination and purposeful action a way forward can be found to resolve service delivery backlog at the Eastern Cape Department of Human Settlements. The Department of Human Settlements needs to select and consider the findings and recommendations of this study to resolve service delivery backlog in a sustainable manner and to improve its performance. To provide services for communities, especially for the low-income group, is one of the basic responsibilities of each sphere of government. It is a basic task of the Department to deliver services in the urban and rural areas of its provinces. Thus, the government and the officials who are involved in the provision of service delivery have the responsibility to perform their tasks successfully, as well as the related institutions. As mentioned in the preceding chapters, housing including basic services (water, sanitation, and electricity) is the human right and the most important indicators of a person‟s standard of living or social wellbeing. Department of Human Settlements faces massive challenge of backlog in service delivery. The continued lack of adequate housing and basic services has resulted in an increasing number of informal settlements across South Africa. Despite the significant progress made in provision of houses and basic services, it appears that the backlog is probably one of the greatest challenges facing South African government.

These factors cause challenges and backlogs in the provision service delivery. The researcher has sought to investigate challenges, causes and impact of backlogs in service delivery by a study of the literature and by an empirical survey .The impact of

70 national policy and financial support were reviewed. Consequences of backlog in service delivery are physically reflected in overcrowding, squatter settlements and increasing of land invasion in urban areas. Socially and politically, this backlog gives daily impetus to national, communal and individual security and frustration and contributes significantly to the high levels of criminality and instability prevalent in many communities in South Africa.

REFERENCES

10 Year Review: Social Clusters. 2004. Government Digest.

Address by the Minister of Human Settlements, Tokyo Sexwale, on the occasion of the Human Settlements Budget Vote, National Assembly, Cape Town. Available online: http://www.gov.za/address-minister-human-settlements-tokyo-sexwale-occasion- human-settlements-budget-vote-national, 2012. [Accessed on 12 may 2015]

Baumann, T. 2003. Housing policy and poverty in South Africa. In: F. Kahn & P. Thring, (Eds) Housing Policy and Practice in Post-Apartheid South Africa (Heinemann).

Bailey, K.D. 1999. Methods of social research. New York: The Free Press.

Borg, W. R., Gall, M. D. & Gall, J. P. 2003. Educational research: An introduction (7th Edition). White Plains, New York: Longman.

Burgoyne, M. L. 2008. Factors affecting housing delivery in South Africa: A case study of the Fisantekraal housing development project. Thesis (MPhil (Sociology and Social Anthropology) University of Stellenbosch, 2008.

Charlton, S. 2004. An overview of the housing policy and debates, particularly in relation to Women (or vulnerable groupings) [Online]. Research report for Centre for the Study of Violence and Reconciliation. Available at: http://www.csvr.org.za/docs/g ender/overviewofhousing.pdf. [Accessed on 13 June 2015].

Charlton, S. 2009. Housing for the nation, the city and the household competing: Rationalities as a constraint to reform. Development Southern Africa, 26(2), pp.55-85.

Charlton, S & Kihato, C. 2006. Reaching the poor: An analysis of the influences on the evolution of South Africa's housing programme. In U. Pillay, R. Tomlinson, & J. du Toit, (editors) Democracy and delivery: Urban policy in South Africa, Cape Town: HSRC Press, pp.252-282.

Chipu S. T.L (2011), Institutional Capacity of Local Municipalities in the Delivery of Services to Communities: A Case Study of the Polokwane Municipality in Limpopo Province. Degree of Masters of Development Programme .University of Limpopo.

Department of Housing, 1994. A new national housing policy and strategy for South Africa 1994: Housing white paper [Online]. Available at: http://www.dhs.gov.za/sites/def ault/files/legislation/Policies_Housing_White_Pap er.pdf. [Accessed on 10 September 2015].

Department of Housing, 1995. SERVCON. Available at: http://www.housing.gov.za [Accessed on :11 September 2014]

National Development of Housing, 2000. National Housing Code. Pretoria: National Department of Housing.

Department of Housing, 1994. The South African White Paper. Pretoria: Department of Housing.

Department of Housing. 2004. South Africa's progress report. Presented at the Commission for Sustainable Development, Twelfth Session. Available at: http://www.inf o.gov.za/otherdocs/2004/csd.pdf(09 August 2007) [Accessed on 2 February 2015].

Department of Housing, 2010. Eastern Cape Provincial Government (2010) Draft Social Housing Policy: Towards an enabling social housing environment in South Africa Revised Draft, Jun 2003 [Online]. Available at: https://www.dwa.gov.za/dir_ws/wspd/Us erControls/DownloadImportFiles=.aspx?FileID=28. [Accessed on 14 July 2014].

Department of Housing, (undated). Sustainable human settlement planning: A resource book on housing chapters. Pretoria: Department of Housing.

Department of Local Government and Housing, 2005a. Breaking new ground: A comprehensive plan for the development of sustainable Human Settlements. Pretoria: Government Printer.

Department of Local Government and Housing. 2005b. Draft discussion paper to inform the development and of a strategy and implementation plan in the Western Cape for “Breaking new ground”: A comprehensive plan for the development of sustainable human settlements. Pretoria: Government Printer.

Gauteng Department of Housing. 2009. Housing Demand Database and Allocation Policy. Pretoria: Government Printer.

Ile, I. U. 2000. Strengthening intergovernmental relations for improved service delivery in South Africa: issues for consideration. Journal of US-China Public Administration, (pp.16).

Kangwa, K. C. 2002. Towards sustainable low income housing: Comparing the developer driven housing programme with people’s housing process in Ivory Park, Johannesburg. A research report submitted to the Faculty of Engineering and Built Environment, University of Witwatersrand, Johannesburg.

Khan, F. 2003. Land, services and spatial restructuring. In: F. Kahn & P. Thring, Housing Policy and Practice In Post-Apartheid South Africa. Cape Town: Heinemann.

Khan, F. & Ambert, C. 2003. Section one: Mapping the terrain. In: F. Kahn & P. Thring, Housing Policy and Practice in Post Apartheid South Africa. Cape Town: Heinemann.

Leedy, P. D. and Ormrod, J. E. 2010. Practical research: planning and design. (9th Edition) New Jersey: Pearson Educational International.

Leedy, P. D. and Ormrod, J. E. 2005. Practical research: planning and design. (8th Edition) New Jersey: Pearson Educational International.

Leedy, P. D. and Ormrod, J. E. 2001. Practical research: planning and design. (7th Edition) New Jersey: Pearson Educational International.

Lloyd, P. J. Dick, A & Howells, M. 2004. The energy profile of a rural community. Journal of Energy in Southern Africa, 15(3), pp.80-87.

Marx, C. 2003. Supporting informal settlements. In: F. Kahn, & P. Thring, Housing Policy and Practice in Post-Apartheid South Africa. Cape Town: Heinemann.

Mthembi-Mahanyele, S. 2002. Sustainable African cities. Key note address to the Round Table WSSD Crowne Plaza.

Mukorombindo, Y . 2015. Eastern Cape Department of Human Settlements Budget Analysis 2014/15 [Online]. Available at: http://www.academia.edu /5307936/EASTERN_CAPE_DEPARTMENT_OF_HUMAN_SETTLEMENTS- BUDGET_ANALYSIS [Accessed on 10 July 2014].

National Department of Housing, 2000. The User Friendly Guide to the National Housing Code. Pretoria: Department of Housing.

Neuman, W. L. 2003. Social research methods: Qualitative and quantitative approaches. Boston: Allyn and Bacon.

Nengwekhulu, R. 2009. Public service delivery challenges facing South African public service. Journal of Public Administration, 44(2), pp.341-363.

The National Norms and Standards, 2007 Available at:http://www.dhs.gov.za/sites/defa ult/files/documents/national_housing_2009/2_Technical_General_Guidelines/1%20Vol %202%20Part%203%20Technical%20and%20General%20Guidelines.pdf.Accesed on [11 November 2014]

Nsouli, S. M. 2000. Capacity building in Africa: The role of international financial institutions. Finance and Development Quarterly Magazine, 2005/2/28.

Nyamukachi, P. M. 2005. Options for urban service delivery in South Africa with special reference to the Tshwane Metropolitan Municipality. Dissertation, University of Pretoria, Pretoria.

Parlimentary Monitoring Group, 2010. Eastern Cape Department of Human Settlements Intervention Close-Out Report; Harry Gwala Informal Settlements; Report on North West Housing Corporation; and Joe Slovo Constitutional Court Progress Report: Department of Human Settlements: Briefing on progress [Online]. Available at:http://www.pmg.org.za/report/20100602-department-update-committee- progress-made-following-eastern-cape[Accessed on 20 October 2014].

Pillay, A & Naude, W. A. 2006. Upgrading informal settlements in South Africa: Policy, rhetoric and what residents really value. Habitat International, 30(4), pp.872-885.

Pillay, U. Tomlison, R. & du Toit, J. 2006. Democracy and delivery: Urban policy in South Africa. Cape Town: HSRC Press.

Republic of South Africa. 2006. South African Government Information Housing. Pretoria: Government Communication and Information System.

Republic of South Africa. 1996. Constitution of Republic of South Africa Act, act No. 108 of 1996. Cape Town: Government Printers.

Republic of South Africa. 1994. The White Paper on RDP . Pretoria: Government

Printers.

Republic of South Africa. 1994. New Housing Policy Strategy for South Africa. Pretoria: Government Printers.

Royston, L. 2003. On the outskirts: Access to well-located land and integration in post- apartheid human settlement development. In: F. Kahn, & P. Thring, Housing Policy and Practice in Post-Apartheid South Africa. (Heinemann).

SALDRU, 1994. “South Africans Rich and Poor”, South African Labour and Development Research Unit, University of Cape Town [Online]. Available at: http://saldru.com.uct.ac.za/bitstream/handle/11090/615/2013_99.pdf?sequence=1

[Accessed on 26 October 2014].

Sisulu, L. 2007. Speech at the occasion of the Budget Vote 2007/08 for the Department of Housing, National Assembly, Cape Town. Available at: http://www.info.gov.za/speech es/2007/07060816451002.htm (30 June 2007).[Accessed on 11 February 2015]

Sisulu, L. 2004. Matthew Goniwe Annual Lecture [Online]. Available at: http://www.info.gov.za/speeches/2004/040816.htm. [Accessed on August 6, 2015].

South African Consulate General, 2014. South Africa Year Book 2012/2013 [Online]. Available at: http://www.southafricanewyork.net/consulate/Yearbook%25202013/ 13%2520Human%2520Settlement [Accessed on 15 July 2014].

South African government. (1996). the Constitution (Act 108 of 1996). Pretoria: Government Printer

South Africa Yearbook 2014/15 .Human Settlements. Available at http://www.gcis.gov.za/sites/www.gcis.gov.za/files/docs/resourcecentre/yearbook/Huma n%20Settlements2015.pdf. [Accessed on 11 June 2015].

Statistics South Africa, 2001. Descriptive-South Africa by province and municipality. Polokwane: Statistics South Africa GIS.

Statistics South Africa, 2014. South Africa in transition: Selected findings from the October household survey of 1999 and changes that have occurred between 1995 and 1999 (2001) [Online]. Available at: http://www.gov.za/documents/south-africa-transition-selected-findings-october- household-survey-1999-and-changes-have [Accessed 2 August 2014].

Statistics South Africa, 2014. Household service delivery statistics [Online]. Available at: http://beta2.statssa.gov.za/?page_id=739&id=2 [Accessed October 27 2015]. .

The Constitution of the Republic of South Africa, Act 108 of 1996. Pretoria: Government Printers.

The Development Facilitation Act of the Republic of South Africa, Act 67 of 1995. Pretoria: Government Printers.

The Housing Act of the Republic of South Africa, No. 107, 1997. Pretoria: Government Printers.

Tissington, K. 2011. A resource guide to housing in South Africa 1994-2010 [Online]. Available at: http://www.serisa.org/images/stories/SERI_Housing_Resource_ Guide_Feb11.pdf [Accessed on October 20, 2014,

Todes, A., Pillay, C. & Kronje, A. 2003. Urban restructuring and land availability. In: F. Kahn, & P. Thring, Housing Policy and Practice in Post-Apartheid South Africa. Cape Town: Heinemann.

Todes, A. 2003. Housing, integrated urban development and the compact city debate. In A. Harrison, et al. (Eds.), Confronting fragmentation: Housing and urban development in a democratic society (pp.109-121). Cape Town, RSA: University of Cape Town Press.

Tomlinson. M. R. 2006. From quantity to quality: Restructuring South Africa‟s housing policy ten years after.

Treasury 2009. Human settlement [Online]. Available at:http://www.treasury.gov.za/publ ications/igfr/2009/prov/06.%20Chapter%206%20-%20Human%20Settlements.pdf chapter 6 [Accessed on October 21 2014].

APPENDIX 1

Nelson Mandela Metropolitan University

Department of Construction Management

Faculty: Engineering, the Built Environment &

Information Technology

North Campus

The Regional Director

Chris Hani Region

Department of Human Settlements

Queenstown

5320

Dear Sir

REQUEST FOR PERMISSION TO UNDERTAKE RESEARCH

I am currently registered for the Masters in Science: Project Management at the Nelson Mandela Metropolitan University. My research topic is: AN INVESTIGATION INTO THE BACKLOG IN SERVICE DELIVERY IN SOUTH AFRICA: CASE STUDY OF THE DEPARTMENT OF HUMAN SETTLEMENT IN EASTERN CAPE.

I hereby request permission from the Department to undertake my research in some of your employees of Department of Human Settlements in Chris Hani Region. Participation of the respondents will be voluntary with the option of withdrawing at any stage of the process. There will be no consequences for anyone who does not wish to

78 participate. An informed consent will be requested before the respondents participate in the research. Confidentiality will be ensured. The information received will be utilized in such a way that respondents cannot be identified. The final report will not include identifying information. Questionnaires will be used to collect data from the participants. Respondents will be informed that they are not obliged to answer all the questions. If they feel uncomfortable about certain questions they need not answer them.

By participating, the respondents will contribute investigation into the backlog in service delivery in South Africa through Department of Human Settlements.

Yours faithfully

…………………......

Miss Zukiswa Hlamandana

APPENDIX 2 Nelson Mandela Metropolitan University

Department of Construction Management

Faculty: Engineering, the Built Environment &

Information Technology

North Campus

Participant

Department of Human Settlements

Chris Hani Region Queenstown 5320

Dear Sir/Madam

INVITATION TO PARTICIPATE IN THE STUDY

As an employee of DOHS in the Eastern Cape I request that you participate in this research by answering the questions. Participation is voluntary with the option of withdrawing at any stage of the process. There will be no consequences for anyone who does not wish to participate. Confidentiality is ensured. The information received will be utilized in such a way that you cannot be identified. The final report will not

80 include identifying information. You are not obliged to answer all the questions. If you feel uncomfortable to answer certain questions you may not answer them.

By participating, the respondents will contribute investigation into the backlog in service delivery in South Africa through Department of Human Settlements.

Yours faithfully

…………………......

Miss Zukiswa Hlamandana

APPENDIX 3 Nelson Mandela Metropolitan University

Department of Construction Management

Faculty: Engineering, the Built Environment &

Information Technology

North Campus

The Manager Chris Hani District Municipality Queenstown 5139

Dear Sir/Madam

REQUEST FOR PERMISSION TO UNDERTAKE RESEARCH

I hereby request permission from the Municipality to undertake my research in community of CHDM. Participation of the respondents will be voluntary with the option of withdrawing at any stage of the process. There will be no consequences for anyone who does not wish to participate. An informed consent will be requested before the respondents participate in the research. Confidentiality will be ensured. The information

82 received will be utilized in such a way that respondents cannot be identified. The final report will not include identifying information. Questionnaires will be used to collect data from the members of the community. Respondents will be informed that they are not obliged to answer all the questions. If they feel uncomfortable about certain questions they need not answer them.

By participating, the respondents will contribute investigation into the backlog in service delivery in South Africa through Department of Human Settlements.

Yours faithfully

…………………...... Miss Zukiswa Hlamandana

APPENDIX 4

Nelson Mandela Metropolitan University

Department of Construction Management

Faculty: Engineering, the Built Environment &

Information Technology

North Campus

Participant Chris Hani District Municipality Queenstown 5139

Dear Sir/Madam

INVITATION TO PARTICIPATE IN THE STUDY

As a member of the community I request that you participate in this research by answering the questions. Participation is voluntary with the option of withdrawing at any stage of the process. There will be no consequences for anyone who does not wish to participate. Confidentiality is ensured. The information received will be utilized in such a way that you cannot be identified. The final report will not include identifying

84 information. You are not obliged to answer all the questions. If you feel uncomfortable to answer certain questions you may not answer them.

By participating, the respondents will contribute investigation into the backlog in service delivery in South Africa through Department of Human Settlements.

Yours faithfully

…………………...... Miss Zukiswa Hlamandana

APPENDIX 5

QUESTIONNAIRE TO THE GENERAL PUBLIC

Title: AN INVESTIGATION INTO THE BACKLOG IN SERVICE DELIVERY IN SOUTH AFRICA: CASE STUDY OF THE DEPARTMENT OF HUMAN SETTLEMENT IN EASTERN CAPE

The primary objective of this study is to investigate the backlog of service delivery in the

Department of Human Settlements in South Africa and provide solutions to the challenges faced by the department, to establish the status quo of service delivery in the Department, to investigate the causes of backlogs in the service delivery systems in

South Africa and to investigate the impact of backlogs in service delivery systems in

South Africa.

Your responses will be treated in confidence and the data will be presented in a way that your identity cannot be established.

Date completed...... (To be completed by participant)

1. SECTION A–BIOGRAPHICAL INFORMATION

Please mark the applicable block with an “X”

1.1 Gender 1.1.1 Male 1.1.2 Female

1.2 What is your marital status?

......

1.3 Age Group 1.3.1 Under 20 1.3.2 21-30 1.3.3 31-40 1.3.4 41-50 1.3.5 51-60 1.3.6 60 plus

1.4 Home language 1.4.1 Afrikaans 1.4.2 English 1.4.3 IsiXhosa 1.4.4 Other

1.5 What is your highest level of Education?

…………………………………………………………………………………………………… …………………………………………………………………………………………………… ………………….

1.6 How long have you been living here?

1.7 Family size 1.7.1 1-3 1.7.2 4-6 1.7.3 7-10 1.7.4 11 and above

1.8 Employment status 1.8.1 Self-employed 1.8.2 Unemployed 1.8.3 Employed permanent 1.8.4 Contract/ temporary 1.8.5 Casual employment

1.9 Monthly Income 1.9.1 R0 - R500 1.9.2 R501–R950 1.9.3 R951–R2500 1.9.4 R2501–R4000 1.9.5 R4001- R5500 and above

2. SECTION B –SERVICE DELIVERY BACKLOG

Please show your opinion by marking an “X” in the appropriate box.

2.1 Dwelling type 2.1.1 Formal House 2.1.2 RDP house 2.1.3 Informal dwelling (shack) 2.1.4 Flat in the backyard 2.1.5 Rent

2.2 How do you feel about the standard of the house you live in?

2.2.1 Good standard 2.2.2 Below standard 2.2.3 Not sure

Please indicate to what extent you agree or disagree with each statement by placing an X in the appropriate box. Legend: 1 = strongly disagree; 2 = disagree; 3 = undecided; 4 = agree; 5 = strongly agree

2.3 My understanding of service Strongly disagree undecided Agree Strongly delivery challenges disagree agree 2.3.1 I know what service 1 2 3 4 5 delivery is about?

2.3.2 There are service delivery 1 2 3 4 5 backlogs in my area. 2.3.3 There are problems and 1 2 3 4 5 challenges in provision of service delivery. 2.3.4 Every citizen has a right to 1 2 3 4 5 adequate housing and basic services. 2.3.5 RDP programme changed 1 2 3 4 5 life of the citizens 2.3.6 Government is 1 2 3 4 5 attempting or solving the backlog of service delivery

2.3.7 There is illegal selling of 1 2 3 4 5 units 2.3.8 There is vandalism of units 1 2 3 4 5 2.3.9 There is illegal occupation 1 2 3 4 5 of units 2.3.10 Department encounter 1 2 3 4 5 corruption practices 2.3.11 Citizens contributes to 1 2 3 4 5 service delivery backlogs

3. SECTION C-ACCESS TO BASIC NEEDS Please indicate to what extent you agree or disagree with each statement by placing an X in the appropriate box. Legend: 1 = strongly disagree; 2 = disagree; 3 = undecided; 4 = agree; 5 = strongly agree

3.1 Basic Needs Strongly disagree undecided Agree Strongly disagree agree 3.1.1 There is satisfaction with 1 2 3 4 5 regard to the quality of service delivery in Eastern Cape. 3.1.2 There is lack of basic needs 1 2 3 4 5 like electricity, water supply and sanitation. 3.1.3 The service delivery is slow 1 2 3 4 5

THANK YOU FOR YOUR CO-OPERATION

APPENDIX 6

QUESTIONNAIRE TO THE DEPARTMENT OF HUMAN SETTLEMENT EMPLOYEES

Title: AN INVESTIGATION INTO THE BACKLOG IN SERVICE DELIVERY IN SOUTH AFRICA: CASE STUDY OF THE DEPARTMENT OF HUMAN SETTLEMENT IN EASTERN CAPE

The primary objective of this study is to investigate the backlog of service delivery in the Department of Human Settlements in South Africa and provide solutions to the challenges faced by the department, to establish the status quo of service delivery in the Department, to investigate the causes of backlogs in the service delivery systems in South Africa and to investigate the impact of backlogs in service delivery systems in South Africa.

Your responses will be treated in confidence and the data will be presented in a way that your identity cannot be established.

Date completed...... (To be completed by participant)

Background Information: 1. What is your position within this Department? ...... 2. What are your responsibilities in the process of service delivery? …………………………………………………………………………………………………….. …………………………………………………………………………………………………… …………………………………………………………………………………………………… …………………………………………………………………………………………………… …………………………………………………………………………………………………… ……….……………………………………………………………………………………………

…………………………………………………………………………………………………… ……………………………………………………………………………………………………

Challenges faced by the Department and Municipality in service delivery (Officials):

1. In your own opinion do you think the Department of Human Settlements has backlog in service delivery? ......

2. What are the challenges faced by the Department of Human Settlements in addressing service delivery backlog? ......

3. How do you think the service delivery backlog impact on people‟s lives? ...... 4. How far does the department go in addressing service delivery backlogs? ...... 5. Do you have the necessary resources and equipment in place to ensure that you achieve your annual goal of delivering services to people? ......

......

6.What specific measures are currently in place to improve the implementation of Housing projects?...... 7. Do you involve all stakeholders such as municipalities, beneficiaries etc., in housing projects planning? If No, Why? ......

8. Does the Department have a system for monitoring actual performance against the standards and targets for housing? Please substantiate …………………………………………………………………………………………………… …………………………………………………………………………………………………… ……………………………………………………………………………………………………

9. Is progress on housing projects reported regularly to different structures such as the Legislature and Local Municipalities? ......

10. How do you manage your projects to ensure completion in time? ...... 11. How do you ensure quality control in your projects?

...... 12. Are you experiencing illegal selling of units? ...... 13. Do you have any illegal occupation or vandalism of units? (Explain) …………………………………………………………………………………………………… …………………………………………………………………………………………………… ……………………………………………………………………………………………………

14. Does the municipality or the province encounter corruption practices? ......

15. In your opinion, what can be done to improve the housing delivery process in the Province? ......

THANK YOU FOR YOUR CO-OPERATION