Municipality Housing Sector Plan

1.0 INTRODUCTION

1.1 BACKGROUND

Planning for Housing Development has hitherto involved project identification and listing of projects in Municipal Integrated Development Plans and submission of project specific business plans to the Department of Housing (DOH). This approach to planning for housing development did not take into consideration a number of critical issues that have a direct bearing to housing implementation and the type of settlements that were being created. Amongst others, funding applications and subsequent approvals were made prior to the resolution of land/legal issues, indefinitely delaying projects. Second, the extent to which settlements had access to social services, that is, educational, health and police services amongst others was rarely considered. Third, the institutional capacity of municipalities to both plan and implement housing projects was not considered. Thus, the Housing Sector Plan is formulated to provide a comprehensive 5 year plan for housing development for the Umzumbe Municipality. This Housing Sector Plan is prepared according to guidelines provided by the Provincial Department of Housing.

1.2 LEGISLATIVE FRAMEWORK

Section 26 (2) of the Constitution, Act 108 of 1996 confers the right to housing and prescribes that the state must take reasonable legislative and other measures within its available resources to achieve the progressive realization of this right. The Housing Act No. 107 of 1997 was enacted to provide a legislative framework to effect the right to housing.

The primary aim of government housing development is to contribute towards the alleviation of asset poverty. In the New Human Settlement Plan government clearly articulates its intention to support the development of sustainable human settlements and the development of housing assets. Asset poverty is a result of inadequate access to assets by individuals, households and communities including inadequate shelter (which manifests in badly located low cost and overcrowded dwellings), the inadequate provision of appropriate infrastructure and the inadequate provision of basic services such as health, safety, emergency services and education facilities amongst others.

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Each sphere of government is assigned roles and responsibilities with regard to the implementation of housing development. The powers and functions are set out in Schedule 4 of the Constitution of the Republic of , the Housing Act (Act 107 of 1997) and the Municipal Systems Act (Act 32 of 2000). Outlined below are the roles of the three spheres of government:

National Government: is assigned with the responsibility of developing legislation, policies and procedures and systems to create an enabling environment for the development of housing. Furthermore, it allocates and monitors budgets and performance.

Provincial Government: is assigned with the responsibility to implement or facilitate the implementation of housing development. Within the context of the Housing Act the core functions of the Provincial Departments is to provide low income housing opportunities to assist municipalities in housing development and further build their capacity.

Local Government: Municipalities are tasked with the responsibility to identify land for development and housing beneficiaries. However, municipal activities are guided by the Integrated Development Plans that expect municipalities to take reasonable steps to ensure the provision of adequate housing on a progressive basis by setting out housing delivery goals, identify suitable land for housing development and apply for housing subsidies in their municipal jurisdiction. Thus the primary role of municipalities is to plan for housing development. Thus it is the primary task of local government to develop a housing sector plan that is intended to promote inter-governmental coordination and alignment and further promote integrated development and budget planning. Guided by the Intergovernmental Relations Act Municipalities have in other instance been assigned with the responsibility to implement housing development.

Implementation Experience

While housing implementation is the responsibility of provincial housing departments, municipalities have assumed the implementation role as developer. This has had varying levels of success. Municipalities that have been able to successfully implement housing projects are those that have financial and human resources capacity. Municipalities that do not allocate both financial and human resources to undertake the housing functions argue that housing development is not a municipal function. This has hampered the pace of housing development.

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Through the Integrated Development Plans municipalities are mandated to participate in all development planning activities that take place within their jurisdiction and ensure that they are integrated. Second, the Intergovernmental Relations Act of 2004 and the Municipal Systems Act of 2000 specifies that municipal plans have to be aligned with and compliment the development plans and strategies of other spheres of government. Thus the Department of Housing introduced the Housing Sector Plans to provide a housing focus to Municipal IDPs.

Municipalities have the powers to implement and administer matters such as housing and all others relating to implementation of development projects in their areas. To be able to logically execute housing delivery a municipality has to devise and co-ordinate a strategic Housing Sector Plan. Therefore the Housing Sector Plan is a critical tool that integrates housing development into municipal planning.

1.3 PURPOSE OF THE HOUSING SECTOR PLAN

Against the backdrop of the legislative context for housing development this document outlines a Housing Sector Plan for Umzumbe Municipality that will set out a clear five year plan for housing development with tangible delivery goals. The main reasons for producing a Housing Sector Plan by the Municipality amongst others but not limited to the following: . To ensure effective allocation of limited resources particularly financial and human to competing potential development interventions. . To provide a formal and practical method of prioritizing housing projects and obtaining political consensus for the sequencing of their implementation. . To facilitate greater spatial linkages between the Spatial Development Framework and physical implementation of housing projects. . To deliberately place the housing sector imperatives in the municipal IDP. . To ensure effective subsidy budgeting and cash-flows both at Municipal and Provincial levels.

One of the key and critical experiences of government is that citizens are more aware of their constitutional right to housing. This places pressure on the government and related institutions to deliver on their mandates including housing development.

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The volatile demonstrations witnessed pertaining to perceived lack of service delivery has further exacerbated pressure on government not only to deliver services but to ensure that they are of an acceptable quality. This requires proper planning processes and adequate consultation on the type, nature and form of services undertaken.

Noteworthy is that the development of a Housing Sector Plan is not about the production of a once off-end product but it involves an ongoing, participative process which is both proactive and reactive in an ever-changing environment.

1.4 METHODOLOGY

Two main methodologies have been applied to develop this Housing Sector Plan. Desktop studies were undertaken to obtain baseline information and participatory methodologies that solicit the involvement and participation of stakeholders.

A three staged methodology has been applied to develop this plan.

PHASE 1: LOCAL PLANNING CONTEXT

This phase examines the context for the development of the housing sector plan. Phase 1 considers five areas of examination, that is, . Municipal Spatial context, to determine the location of the municipality in relation to major economic activities. This indicates the extent to which the municipality has access to opportunities. Municipalities that are in close proximity to economic activities tend to have a higher demand for housing opportunities. . Socio Economic Analysis, to determine the level of development in the municipality. This alludes to the extent to which municipal residents require government support for housing. Second, economic opportunities available to residents are examined against the backdrop of government’s policy to develop integrated human settlements.

PHASE 2: HOUSING SITUATION

The purpose of this is to gain an understanding of the state of housing development in Umzumbe. The following key areas of investigation are examined closely:

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. Housing backlog/demand, to determine the number of households in the municipality that do not have adequate shelter. The housing demand is obtained from the municipal housing demand data base. In its absence the census data is used to estimate demand that will later be verified by the municipality before it proceeds to implement housing projects. . Legal status of land, determines the ownership of land identified for housing development and whether it can be obtained within a reasonable period to avoid delays in project implementation. . Quantification of current projects, considers projects that are currently being implemented and the extent to which they contribute to reducing the overall backlog. . Identification of planned projects, the sector plan is a 5 year plan, thus it will identify projects that will be implemented over this period. Their scheduling is influenced by a number of factors, such as budget and land availability amongst others. . Integration, considers the extent to which the housing development is serviced by municipal services and other social services such as schools, health facilities and police stations amongst others.

PHASE 3: HOUSING DELIVERY This phase builds from phase 2 above. It projects annual delivery targets and cash flows to enable the Department of Housing to budget for housing development whereas this enables the municipality to gear up human resources in particular.

PHASE 4: CONSULTATION Consultation with various stakeholders took place throughout the process of developing the Housing Sector Plan. First, interviews were conducted with Local and District Municipality officials particularly to fill in the gaps identified in the secondary sources of information. Second comments from the general public were invited through the local media. Third, it was circulated and presented to the following municipal committees, that is, the Management Executive Committee Infrastructure Standing Committee and the Umzumbe Executive Committee. The plan was presented to council on the 25th of June 2008.

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2.0 OVERVIEW OF THE PROJECT CONTEXT

2.1 SPATIAL CONTEXT

2.1.1 Spatial Location

Umzumbe Municipality (KZ 213) is one of the six local municipalities that form part of the Ugu District Municipalities (DC21) in KwaZuluNatal. The municipality is located South of eThekwini Metropolitan Council and 90 kilometres North West of and is 5866 square kilometre in extent with a coastal strip of 112 kilometres. The boundary of the Umzumbe municipality runs along the coast for approximately twenty kilometres between Mthwalume and rural areas. The municipality is 1260 square kilometres in extent with only 1% being built up/semi- urban area. It is made up of 17 traditional authority areas comprising 19 wards refer to Map 1.

Map 1: Layout Map

The dominant land uses in order of significance are, subsistence farming (24%), grassland (17%), forestry (12%) and sugar cane farming (7%). Almost 60% of the total land area is underdeveloped and harbours significant ecological assets and tourism potential (Map 2).

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Map 2: Land use

2.1.2 Typology of Settlements

Settlements in Umzumbe are dispersed. A concentration of settlements is along the P68 and includes Assisi, KwaDweshula, St Faith and Phungashe. The denser settlements are located near the coastal strip in the Turton/ Nhlangwini. The coastal area of has traditionally been more densely populated. This area is rapidly developing and therefore needs to be spatially restructured and formalised. Hence it is proposed that Mathulini should be established as a township. Agglomeration of service delivery is cost effective in dense settlements, particularly bulk infrastructure. It is therefore proposed that housing development should be encouraged along the nodes, corridors and spines where the municipal population congregates. The dispersed nature of settlements in Umzumbe increases the cost of providing bulk infrastructure.

The municipality is predominantly rural with no urban centre. The majority of the population resides in traditional settlements, constituted of more than half of the municipal population (60%), followed by the population that resides in formal settlements that makes up to about 38% of the residents. The population that lives in informal areas make up 1% of the residents of the municipality.

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Table1: Typology of residential areas and their population spread Residential type Total population Percentage of population Formal 73 627 38% Informal 1 937 1% Traditional 116 254 60% Other 1 937 1% Grand Total 193 756 100%

2.1.3 Major Road and Economic Linkages

The road infrastructure contributes immensely to economic growth and creates economic linkages. The interconnectedness of cities, towns and villages provides an enabling environment for stable and sustainable economic activities. Umzumbe Municipality is located approximately 90km northwest of Port Shepstone and 100km South of . There are two major roads that cut through this municipality, that is, the and P102 (Map 5). The coastal corridor is served by road infrastructure of a very high standard that is, the N2 toll road and the parallel P102. The N2 provides a high-speed access North- South route between metropolitan Durban and the South Coast. The P102 provides a secondary north-south route inland. P102 is generally in a fairly good condition, and operates as an activity corridor linking smaller settlements to one another and the N2.

The other main roads in the municipality provide important east-west connections, linking the coastal belt to the rural hinterland. They include the following roads: . P68, from Assisi to St Faiths to Highflats . P286, from Hibberdene to Msinsini . P73, from P102 (Turton) to Hlokozi to Highflats . P75, from P102 to Umgayi to Braemar

P68 is the busiest east-west route, followed by the P73 and the P75. It is only the portions of these roads in the coastal and commercial farming belt that are surfaced, and the rest of the roads are un-surfaced.

The substantial network of district roads in the municipality is also un-surfaced. Although these gravel roads were originally well constructed, they are often in dire need of maintenance, especially during the summer rainy season. They function as important feeder roads therefore they need to be well maintained.

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Map 3: Wards, Tribal Areas and Road Network

2.2 Socio-Economic Analysis

The municipality experiences high levels of poverty and unemployment. Agriculture is the main economic activity of the Umzumbe Municipality and a major source of income for commercial farmers and the small scale emerging farmers. The sector has been unable to provide new job and business opportunities. Consequently household incomes are low and irregular. Compounding the problem is the fact that the economy is not diversified with a population that has inadequate levels of education and training. Accordingly, a large proportion of the population in the Umzumbe Municipality is very poor (71%) with an unemployment rate of 70% according to Census 2001. Of the estimated 50% of the municipal population that falls within the economically active group, only 9.55% is formally employed.

Agricultural practices in the form of traditional farming are evident and form the subsistence livelihood of the producers and very little of the surplus is traded. Community gardens are very vulnerable to failure especially the ones that are not irrigated. These activities are considered as the basis for future expansion of commercial agriculture.

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The development of housing has for many years in South Africa shaped the spatial form. Failure to align residential places with areas of economic activities resulted in an ineffective spatial form in South Africa. Ideally housing development should be strategically located and fully integrated to both social and economic development opportunities. Directly linked to this is the need to properly plan for a public transport system that creates access. However, in the case of Umzumbe where the municipality has no major economic activities the challenge for the municipality through its local economic development strategy should identify implement-able economic activities to avoid reinforcing the current spatial form of settlements that are pockets of poverty.

The municipality is also impacted by HIV/AIDS. It is estimated that in 2004, 25, 788 people in Umzumbe were affected by HIV/AIDS. The annual growth rate of HIV and infections in Umzumbe is 13.7% per year. The KZN Department of Health, indicates that between 1994 and 2004, there has been a sharp increase from 11.7% to 53.3% of deaths which were AIDS related. This number has substantially increased over the last nine years; there has been a 32.3% annual growth rate in AIDS related deaths. The increase of the HIV/AIDS pandemic has had an impact on the demographic profile of the municipality. It is therefore crucial to consider the linkages between HIV/AIDS and other development interventions. The municipality has identified a project to deal with HIV/AIDS orphans, that is, the Assisi Children Shelter. The municipal population has decreased between 2001 and 2007 by more than 20 000 residents. This can be attributed to two main factors, that is, HIV/Aids and outward migration due to lack of socio-economic opportunities.

The above implies that housing development in particular needs to take into cognizance the development peculiarities presented by the HIV/AIDS pandemic. The direct result of the HIV/Aids pandemic is child headed households that have emerged as a new addition to household profiles. The lack of a housing demand data base means that the extent of need by the different population segments cannot be classified.

2.2.1 Demographic Analysis

Demographic profiles are essential in any development and planning exercise in that they enable government to appropriately plan and allocate funds for development. This demographic overview is based on the 2001 census data of Statistics South Africa. It is now accepted that this data is outdated but is the official government source of statistics. The 2007 Community survey updated economic indicators and global municipal statistics.

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Therefore the 2001 Census data has been used in this study as a generic pointer to the socio-economic conditions in the municipality. It is expected that the demographic profile of the municipality may have considerable changed since the 2001 Census. This section focuses on population sizes, household incomes, gender, age, education and employment profiles. a) Population

The Municipality has a total population of 193 756 individuals. The majority of the population is African comprising of 99.83% of the total population. The minority racial groups constitute of 0.17 % of the total population broken down as follows:

Table 2: Population breakdown by race Race Group No. of individuals % of total population

African 193 368 99,83% White 97 0,05% Coloured 194 0,1% Indian 39 0.02% Total 193 756 100%

To be able to present a clear view of the housing status in the municipality it is important to study the housing situation by ward to juxtapose the level of need against the level of demand and the service delivery impact that the municipality can make in each ward. The most populated areas within Umzumbe Municipality is wards 3 with 13 308 people. The inland wards, which are ward 12, 1, 2 and 16, are least dense, with population densities of 65 to 95 people per square kilometer. Coastal wards that is, ward 19 and 17 have densities of 600 to almost 800 people per square kilometer.

According to the IDP the population distribution patterns are influenced by access to transport. Along the coast there are fast transport routes that allow access to economic opportunities. Therefore housing development along the coast should be encouraged and supported.

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In Umzumbe females constitute the majority of the population, accounting for 55% of the total municipal population, while males account for 45%. The gender difference between males and females is 10%. The higher gender gap is due to the fact that males leave rural areas to work in urban centres outside of the municipality such as eThekwini Metropolitan Area, Port Shepstone and Gauteng. This results in an increase in female vulnerability as females became responsible for household income generation. c) Age

The municipal population is fairly young with 32% of the population that is between the ages of 15-34. This indicates the likelihood of household formations further increasing demand for housing in the municipality. The lack of economic opportunities in the municipality may lead to outward migration in search for economic and social opportunities in bigger urban centres. This is followed by ages 5 to 14 (30%) and by 35 to 64 age group (20%). This trend forces the government and the local municipality to allocate a large percentage of their budget to social development facilities such as schools, child grant, pension and clinics.

Table 3: Age Differentiation Age No of individuals Percentage 0 to 4 23 251 12% 5 to 14 53 127 30% 15 to 34 62 002 32% 35 to 64 38 751 20% Over 65 11 625 6% Total 193 756 100%

Approximately 74% of the total population in Umzumbe Municipality area is below the age of 35. Children, below the pre-school enrolment age (that is, 0-4 years of age), constitute 12% of the population, with those who are at school-going age, including pre- school constitute 30% of the entire Municipal population. Approximately 6% of the total population is over the age of 65 years. This indicates the high levels of dependency on the state which impedes the ability of individuals to save and invest particularly in housing.

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The municipality is comprised of 38 280 households that are evenly spread across 19 municipal wards, in formal, traditional and informal settings. The household profiles are classified according to dwelling type as follows: . 38% ( 14 546) are formal houses or structures, . 60% ( 22 968) are traditional huts, . 1% (383) are informal, . 1% (383) other 53% of these households in the municipality are women headed. This is supported by the census data that recorded a dramatic decrease in male headed families. There is a rise in the number of child headed households since the last census count due to the HIV/AIDS pandemic. This is a new area of planning particularly for housing provision. e) Education Levels

Education levels are always closely linked to availability of skills. Education levels in the Umzumbe Municipality remain low. Only 3% of the population has attained tertiary education, while 23% hold a secondary education qualification and 0.3% of the population have secondary schooling. The majority of the population can be considered illiterate with 28% of the population with a primary education and 32% with no formal schooling. The remaining 11% is an undefined category likely to fall into the infant category of 0 to 4 years.

f) Household Incomes

In 2001, 30% of the households in Umzumbe municipality had no income. At a district level, that is Ugu District Municipality, 27 % of the population had no income while 9.7% of the total population earned between R 1- 400.00 per month while 44% of the employed population earned between R 400.00- R 1 600 per month. Table 3 below illustrates household incomes per income category. The household income levels below are a good indicator of high levels of state dependency in the Municipality and the inability of households to adequately meet their housing needs.

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Table 4: Annual Households income Income Level No. of households Percentage No Income 14 546 38% R1-R 400 3 713 9.7% R401- R 800 10 871 28.4% R 801-R 1 600 5 359 14.0% R1 601 –R 3 200 2 259 5.9% R3 201-R 6 400 995 2.6% R6 401-R 12 800 345 0.9% R12 801 – more 191 0.5% Grand Total 38280 100% Source: Census 2001

The relevance of Table 4 is in that it disaggregates the income categories to smaller units. This reveals that the majority of the working population earns less than R3500 per month which qualifies them for government housing subsidy.

g) Employment Profile

While the levels of income are low coupled with high unemployment rates unlike their urban counterparts who depend largely on government housing subsidy and whatever savings or small loans they are able to muster on their own to meet their housing needs the people of Umzumbe have over the years been constructing their own homes. Only a small proportion of these households are able to access formal loans to improve the aesthetics and or quality of the dwelling that can be erected.

Table 5 below indicates the number of employees per sector. In 2004, 7,498 of Umzumbe residents had formal work. Only 16.6% of the workforce is in highly skilled position, 82% were in semi skilled or unskilled positions. Government Services is the major employer, employing 24.4% of the workforce, followed by Community Services that employ 20.8% of the economically active population. Wholesale and retail trade including tourism employs 14.4%. Manufacturing employs 7%. Agriculture is considered to be the key economic sector; statistics reveal that the sector employs 18.1% of the economically active population.

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Table 5: Employment by Sector

NO SECTOR PERCENTAGE 1 Community Services 1 556 20.8% 2 Manufacturing 525 7% 3 Government Services 1 830 24.4% 4 Agriculture, forestry and fishing 1 357 18.1% 5 Wholesale ,retail catering and 1 080 14.4% accommodation 6 Mining 30 0.4% 7 Construction 337 4.5% 8 Electricity and water 82 1.1% 9 Finance and business services 540 7.2% 10 Transport and communication 165 2.2% TOTAL 7 498 100%

3.0 HOUSING DEMAND ASSESSMENT

3.1 MEANS OF DETERMINING OF HOUSING DEMAND/NEED

It is critical that municipalities assess the extent of their housing need for two critical reasons. First, to establish the extent of the problem for the Municipality to institutionally gear resources to meet the housing challenge. Secondly, to appropriately plan for housing delivery in areas of greatest need to maximise impact.

There are two main ways of determining housing demand/need within municipal areas. The first method uses census statistics. The housing backlog estimates based on census data takes into account both the population residing in informal settlements, and the creation of housing opportunities for those in inadequate formal shelter, such as outhouses, shaky mud structures or under conditions of over-crowding. There are two main limitations to this method, first the census data is now considered outdated. Second, this approach does not specifically address the housing need in tribal areas and farming settlements. In cases like Umzumbe Municipality where the majority of the population resides in tribal areas, household incomes, housing lists and the conditions of their housing structures will inform the extent of backlog.

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The second means of determining housing demand/need is through the analysis of the housing waiting lists. The common shortcomings associated with the housing list include amongst others applicants putting their names down in more than one municipal housing waiting list, while other potential beneficiaries do not placed their names on these lists.

In this instance a hybrid of the census data and proposed housing projects has been used to determine the housing need regardless of the fact that the census data is fairly outdated. The utilisation of this approach to determine the housing need has as its major shortcoming the inability to link the approved subsidy to a beneficiary at the project inception phase. Second, beneficiaries cannot be classified according to income category and differentiated according to gender.

While this approach takes into account the limitations of both the census data and the proposed project to increase the probability of accuracy for the following reasons:

. The housing need statistics should be considered as an interim measure that will provide indicative demand as the municipality needs to institute an administrative process of compiling a housing list. The housing list would be an outcome of a detailed process that will analyse the socio-economic status of individual households to justify the choice of beneficiaries per subsidy instrument.

The number of beneficiaries identified through project identification should be treated as an interim measure while the municipality prepares a housing list. The data derived from the housing list will complement this data.

3.2 SPATIAL LOCATION OF THE HOUSING NEED

The ward with the highest population density is ward 3 constituted of 13308 people followed by the coastal wards that is, ward 19 and 17 with densities of 600 to almost 800 people per square kilometre, while ward 18 is the smallest with a total population of 4487. The inland wards, that is, ward 12, 1 and 16 also have low densities. The North east boundary of the municipality is considered an area of special need with a population of 2500 it is an isolated pocket. The population congregates towards the west side of the municipality where fast transport routes allow access to economic opportunities

There are inherent spatial challenges associated with housing development in the rest of the municipality herewith listed below:

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. Dispersed low density settlement patterns make the cost of installing, operating and maintaining of physical and social infrastructure (roads, water, electricity, clinics, schools and police stations) very high. . Steep river valleys and hilly terrain, which create obstacles to accessibility, and limits the extent of agricultural production. . Weak road and communication linkages exacerbated by hilly topography, with few tarred surfaces and few bridges across rivers. In particular, north-south linkages are very poorly developed within and beyond the sub-region.

Housing interventions in the dispersed parts of the municipality need to be strongly directed towards the installation of infrastructure such as roads, water and sanitation rather to enhance the quality of life.

3.3 NUMERIC EXTENT OF HOUSING NEED

In the absence of the housing list the numerical extent of the housing backlog in the Umzumbe Municipality has been quantified as the sum total of households that earn less than R3500. This data will be updated on completion of the housing list.

The 2001 census claims that 96% of households in the municipality have an income of less than R3 200. Households that earn less than R3500 are eligible for a full government housing subsidy. However, this is no indication that every household that qualifies, will apply for a housing subsidy as they may either be in formal homes or traditional homesteads. The condition of the housing structures for the poorest households is a reflection of their means to provide their own shelter.

Umzumbe Municipality has to date not completed any housing project. This is partly a reflection of the national, provincial and particularly the district trend wherein housing development has focused on the urban and peri-urban areas with no housing development on Ingonyama Land, the area where the majority of the rural population reside. Hence, the policy focus shifted to include rural housing (KZN DOH, 2002 & BNG 2004). Consequently, all the current projects in Umzumbe were approved in 2004.

Outlined in Table 7 and 9 below are the number of both planned and current projects. These add up to 11560 units. They are by no means a reflection of the current backlog. Similarly proposing that 96% of households require housing support mainly because their income is less than R3 500 per month lacks a deeper analysis of the problem.

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Furthermore, this approach to housing development is supply driven and requires the perspective of the beneficiaries. Thus, it is suggested that the municipality needs to develop a housing demand data base to rationally assess housing demand.

It is important to record that the municipality identified the 6060 beneficiaries of the current projects by assessing the condition of their structures and further verified their income. Thus, the units are dispersed across the municipality and not structured per ward. This will inevitable create problems with scheduling of related supporting infrastructure both social and physical as it cannot be installed across the municipality at once. It is therefore proposed that future housing developments should be identified by ward.

3.4 SUBSIDY INSTRUMENTS

Table 6: Subsidy quantum for 40m2 houses in the 2008/2009 financial year

Individual and Project Top Structure Own Contribution Product Price Linked Subsidies Funding only R0 - R1 500 R43 506.00 None R43 506.00 R1 501 - R3 500 R41 027.00 R2 479,00 R43 506.00 Indigent: Aged, Disabled and Health Stricken R0 - R43 506.00 None R43 506.00 R3 500 Institutional Subsidies Institution must add R0 - R3 500 R41 027.00 At least R43 506.00 Capital Consolidation Subsidies R0 - R1 500 R43 506.00 None R43 506.00 R1 501 - R3 500 R41 027.00 R2 479,00 R43 506.00 Indigent: Aged, Disabled and Health Stricken R0 - R43 506.00 None R43 506.00 R3 500 Rural Subsidies R0 - R3 500 R43 506.00 None R43 506.00 People's Housing Process R0 - R3 500 R43 506.00 None R43 506.00 . Municipal engineering services are funded through the infrastructure allocation to the municipalities as a last resort they may also be funded from annual housing funding allocations to Province

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3.5 PROJECTS

Outlined below are municipal projects at three different stages of development, that is, . Current projects - at various stages of implementation . Planned projects - awaiting approval for stage 2 . Future projects – have not been assessed for feasibility

The current projects identified in the four municipal clusters were selected using the condition of the structure and the list of indigents. Therefore, all the current and planned projects are in-situ and do not require the establishment of a township. In line with the identified need to provide shelter for HIV/Aids orphans a children’s shelter has been approved for implementation. The development of the Turton Precinct is expected to create demand for middle income housing, thus the identification as future projects. Demand for other types of housing such as the rental housing has not been established.

Table 7: Current projects Rural Subsidy Ward Project No. Projected Approval Completion Implementation Complete Name of value Date Date subs

5, 7, 12, 13 Umzumbe 1000 R48 486 100.00 16/07/2005 06/ 2010 887 0 & 14 Cluster B Cluster D 1000 R43 300 750.00 20/02/2005 06/2010 1000 0 Umthwalume Mission Reserve 10,16,17,18 Umzumbe 1000 R48 486 100.00 16/11/2004 06/2010 1000 0 &19 Cluster A 1,2,3 & 6 Umzumbe 1000 R48 486 100.00 16/11/2004 06/2010 190 0 Cluster C

There are four active projects in Umzumbe Municipality. All the projects are in the planning phase with implementation scheduled to commence in the 2008/2009 financial year. All the projects are rural projects. Table 7 above illustrates that project progress has been very slow. Projects that were approved between 2004 and 2005 are still at stage 1 of implementation, with only cluster 2 that is at stage 2. This has largely been due to capacity constraints.

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Table 8: Cash Flow Projection (Implementation Schedule)

Annual Projected Cash Flow

Project name Projected Cost 2007/08 2008/09 2009/10 2010/2011 2011/2012 Expenditure to date

Umzumbe Cluster B R48 486 100.00 - R2 909 166.00 R22 788 467.00 R22 788 467.00 - R1 236 270.00

Umthwalume Reserve R43 300 750.00 R1 385 624.00 R16 533 760.00 R22 788 467.00 R7 612 317.00 - R1 394 000.00

Umzumbe Cluster A R48 486 100.00 R0.00 R5 818 332.00 R21 333 884.00 R21 333 884.00 - R1 394 000.00

Umzumbe Cluster C R48 486 100.00 R0.00 R0.00 R0.00 R22 788 467.00 - R265 735.00

Umzumbe Cluster D R0.00 R0.00 R0.00 R0.00 R0.00 - R216 000.00

Total R188 759 050.00 R1 385 624.00 R25 261 258.00 R66 910 818.00 R74 523 135.00 - R4 506 005.00

N.B: That the cash flow projection is informed by the proposed completion dates of the projects as reflected on Table 7 above.

This table presents the projected cost and cash flow projections of all the projects that are being currently implemented.

Table: 9 Planned Projects Project Name No. of subs Subsidy Project value Approval Date Instrument 2008/9

Enhlangwini 1000 Rural subsidy R49 631 600.00 01/09/2004 Assisi Children Shelter 60 Institutional subsidy R2 992 806.00

There are two planned projects financed through the institutional subsidy that are already packaged. Project implementation is expected to commence in the 2008/2009 financial year for the planned projects. It is scheduled that the projects will be completed in the 2010/2011 financial year.

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Map 4: Housing projects

Table 10: Future Projects Project Name No. of Subs Subsidy Instrument Turton (Mathulini) 500 Middle Income Umgayi 500 Rural Subsidy Sipofu 500 Rural Subsidy Mthwalume 500 Rural Subsidy Assissi 500 Rural Subsidy Morrison Post 500 Rural Subsidy Dweshula 500 Rural Subsidy St Faith 500 Rural Subsidy Ndwebu 500 Rural Subsidy Qoloqolo 500 Rural Subsidy Phungashe 500 Rural Subsidy

The identification of future projects is informed by two spatial criteria that is the location of settlements along corridors or nodes. Consequently the proposed future projects are either in dense settlements, have access to both economic and social facilities. Second, clustering of settlements along the nodes and corridors will result in reduced costs of providing infrastructure.

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Map 5: Spatial Structuring Elements

4.0 LAND IDENTIFICATION

4.1 LAND OWNERSHIP PATTERNS

There are three main types of land ownership arrangements in the municipality:

. Traditional land: this is the dominant form of land tenure in the municipality, and is reinforced by the legislation, including the Ingonyama Trust Amendment Act and the Interim Protection of Informal Land Rights Act. Land is held in trust by the traditional authorities (Amakhosi) on behalf of the community, and community members are allocated rights in terms of Zulu indigenous law to occupy and use land for the building of a homestead (umuzi), limited cropping (for subsistence purposes) and grazing. In traditional areas, the nature and extent of development is regulated by the traditional authorities.

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. State land: most of the state land in the municipality is registered with the Department of Land Affairs, and comprises land purchased by the state from farmers in the 1960s to incorporate into the former homelands. Through Power of Attorney arrangements, the Departments of Agriculture, Traditional and Local Government Affairs have promoted on-going agricultural use. Many of these parcels of land are in the process of being disposed of as land reform projects as they represent opportunities for tenure reform and land redistribution to promote the productive use of land and access to land for housing.

. Freehold land: there are several parcels of privately-owned land in the municipality, but they only represent a small proportion of the total land area. The landowners are individual farmers, commercial consortia and churches (mission land).

Map 6: Land Ownership

4.2 CURRENT LAND USES

Agriculture is the main economic activity in Umzumbe municipality. The dominant commercial agricultural activities are forestry plantations and sugar cane cultivation. Some of the high potential agricultural land is under cultivation by commercial farmers, which are privately owned by individuals or large companies.

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Large-scale commercial farming operations are limited to pockets within the northern and eastern parts of the municipality. These farms provide seasonal and permanent employment opportunities to nearby rural communities. Some small scale commercial farming units have been established with the support from the Department of Agriculture and the rural development agency, LIMA. Small grower schemes have been established in conjunction with SAPPI and Illovo Sugar. Most of the tribal land is used for residential purposes and subsistence farming. Densities vary with inland settlements sparsely populated while coastal settlements tend to be densely populated.

4.3 LAND IDENTIFIED FOR HOUSING PROJECTS

This section presents the legal status of the land that has been identified for housing development. In line with the land ownership patterns in the municipality the majority of the land in Umzumbe Municipality is held under communal ownership through tribal authorities. Therefore the possible land reform programme that could be undertaken is tenure reform wherein the settlement would be established as a township with formal tenure. However, all the current projects are an in-situ upgrade wherein the municipality identified households with houses that in a state of disrepair and were proved to be low income earners through the indigent data base. Thus there are no proposals to upgrade tenure. The less formal means of tenure have implications for investment in property. Housing development amongst others is intended to contribute towards the eradication of asset poverty. With less formal means of tenure this cannot be achieved.

4.4 INTEGRATION OF IDENTIFIED LAND

4.4.1 Land Reform

The Department of Land Affairs is undertaking a number of land reform initiatives within the municipality to provide land-based opportunities to previously disadvantaged rural communities. It offers several mechanisms to facilitate land restitution, land redistribution, and land tenure reform in particular to support the emergence of black farmers. It offers the following grants:

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. Land Redistribution and Agricultural Development (LRAD) Grant, which allows black South Africans to gain access to land specifically for agricultural purposes or to foster and improve agricultural development on existing land. The grant should cover land acquisition, land improvements, agricultural infrastructure investments, capital assets, short-term agricultural inputs and lease options, on a sliding scale between R20 000 and R100 000 according to the participant’s contribution.

. Planning Grant, which provides LRAD applicants with financial assistance for project planning.

The Department also provides several services to expedite the above land reform process: facilitation, training and capacity-building and dispute resolution services. The current land reform initiatives being undertaken by the Department of Land Affairs include the following processes:

. Land claims applications within the municipality have been lodged with the Land Claims Commission, requesting that the land in question be returned to them or to obtain fair compensation. However, there is a serious backlog of these cases and it will take time before they are finalized. Individual claims have been made on private land and state land. . The Msikazi cluster has been identified as a land redistribution project. It is a low potential agricultural project, and there are possibilities that a sugar cane growing venture will be initiated with the current landowner. It is hoped that it will be linked to the proposed eco-tourism project. . Franklands: this current land reform project involves ten small-scale sugar cane farmers who have been leasing pockets of land, amounting to approximately 25 ha. The Department of Land Affairs is finalising arrangements to sell the land to the lessee farmers. Alternative land uses have been the subject of workshops between the Department and the farmers. . Franklands settlement: this is a relatively high-density formal development with low levels of services, adjoining the Franklands farming area. Preliminary investigations have already been undertaken by the Department of Traditional and Local Government Affairs, with whom the Power of Attorney for this farm resides.

The largest portion of land in Umzumbe is state owned. Apart from the extent of state land in the municipality, many of these areas have high agricultural, conservation and/or tourism potential.

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Clearly this land represents a significant opportunity for productive economic enterprises, and appropriate development should be promoted. The following parcels of state land have been identified:

. Friedenau/Umgayi cluster . Umzumbe cluster . Assisi cluster . Odeke cluster . Hlokozi cluster . Ndwebu cluster . St Faiths cluster . Mzimkulu river valley.

Besides the above state land that has been identified, there are other parcels of state land that are currently occupied or settled which can be used for housing development. The state can dispose this land for housing development purposes. It has been suggested by DLA that a land use audit need to be conducted to determine the status of this land and the possibility of utilizing it for housing development.

The Mariannhill Diocese has donated church land to the Ugu District Municipality for land reform projects. This land includes all the Church’s rural properties that are settled by tenants and utilised by communities. These land parcels include the following within the Umzumbe municipality:

. Assisi Mission (100.5 ha) Approximately 67 households are settled on this land. Most moved onto the land in the early 1990s, after they were driven away by faction- fighting and violence in Mawuleni, Mabheleni and KwaQwabe. . St Joseph Mission (436 ha) Approximately 30 households are settled on this land. The church hopes to subdivide the extensive mission station property, donate land to the tenants, and enter into agricultural joint ventures. . St Joachim Mission (355 ha). The land has been leased on a long-term contract to a commercial farmer. Two tenant families reside on the land. . Maria Trost Mission (319.3 ha). Approximately sixteen households are settled on this land. The church is prepared to allow further settlement after local area planning has been undertaken.

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. Oetting Mission (336.7 ha) A quarter of the land is settled by nine households. It is suggested that neighbouring communities could benefit from the remaining land, either through lease for agricultural purposes or by using the forest products and joint ventures may be possible.

The above identified church land offers opportunities for residential (Assisi, Maria Trost) and income-related opportunities (St Joseph, St Joachim and Oetting) for rural communities. They should be initiated as land reform projects, or linked to related land reform project in the surrounding areas. Land tenure issues still bedevil the extent of land reform opportunities on Ingonyama Trust land. Communal land is held under traditional tenure while ownership is vested in the Ingonyama Trust Board. Tenure upgrading and the development rights that freehold title conveys have long been regarded with some suspicion in traditional areas. However, the Ingonyama Trust Board has developed procedures to assist tenure upgrading and development implementation within the traditional areas, which particularly relate to large-scale agricultural or tourism projects requiring substantial private sector investment.

4.4.2 Spatial Integration of Identified Land

From a housing point of view, the key issue is to promote the social, economic and spatial integration of the municipality. The description of land uses in the municipality clearly outlines the spatial configuration of the municipality. The ideal outcome is to change the spatial footprint of the municipality. However the municipality can neither socially nor economically afford to drastically change long-established settlement patterns. The strategic response to spatial integration particularly to the tribal settlements in the periphery encompasses two major planning interventions, that is, . To ensure access to social and economic services. . To promote mixed use that includes economic activities based on skills that already exist in the community.

Housing development provides a platform for the delivery of other basic services such as electricity, water, road infrastructure amongst others. Furthermore it is critical that the identified land for housing development promotes spatial integration and access to social services (with basic amenities, sports and recreation, clinics, libraries, shopping malls, cemeteries, schools and other social services), economic (access to employment opportunities, trade and industry).

Prepared by Footprints Development Professionals 27 Umzumbe Municipality Housing Sector Plan a) Access to Social Services

Health Facilities

There are insufficient health facilities in the municipality and the limited facilities are inadequate to meet the health care needs of residents. Most of the health facilities are concentrated close to the coastal corridor, and consequently an under-provision in less accessible areas in the rural hinterland. There are no hospitals in the municipality hence, households within the municipality access hospitals within the district (at Port Shepstone, Murchison, Assisi and ) and specialist health services (SANTA Centre). There are 25 clinics in the municipality, thus there is one clinic per 3000 households. Thus, there is apparently a significant oversupply of clinics in the municipality but access is hindered by poor infrastructure. The municipality is also serviced by mobile clinics that usually visit designated points once or twice a month. The area is also serviced by community health workers, who have been trained in HIV/AIDS and trauma counselling at the Ntlangwini training centre at and GJ Crookes Hospital.

Educational Facilities

There are a sufficient number of school facilities in the municipality. In terms of accepted planning standards, it would appear that there is a significant supply of schools in the municipality, and only a few schools are needed in some wards to meet the current demand. Additional primary schools are needed in Wards 5 and 11. Similarly, additional secondary schools are needed in Wards 1, 6, 14 and 16.

Recreational Facilities

There is a limited range of recreational facilities in Umzumbe. Playing fields are generally attached to schools, and arrangements have to be made with schools to permit other members of the community to use them.

Postal services

In most parts of the rural areas, postal services are generally provided by cluster boxes rather than individual post boxes. Very few cluster box postal facilities are available in the municipality.

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Safety and security

Safety and security services are provided by two systems:

. Tribal courts, which generally deal with civil cases, and

. Three police stations and the formal justice mechanisms, which become involved in criminal proceedings (especially violence and faction-fighting).

There are three South African Police Services police stations in the Umzumbe municipality, at Msinsini, KwaDweshula and St Faiths, which are located along the major transport corridors. Community Policing Forums have been set up throughout the municipality by the SAPS, in an attempt to minimize crime with the support and participation of the communities (crime prevention through partnerships). There is a main office of the Magistrate’s Court at Umzumbe, and 9 tribal courts. They are situated in the KwaCele, Bhekani, Nhlangwini, Qwabe, Ndelu, KwaHlongwa, Nyavini and Izimpehtu Zendlovu traditional authority areas (in Wards 3, 4, 5, 8, 9, 13 and 14).

Map 7: Social Services

Prepared by Footprints Development Professionals 29 Umzumbe Municipality Housing Sector Plan b) Access to Employment Opportunities

The road network that links the rural areas with urban centres is insufficient. The economic opportunities are limited to the agricultural sector that spreads throughout the municipal area. The road and communication network in the form of provincial and national roads further links the municipality to economic opportunities in the major centres of Durban and Port Shepstone. Thus, a good road network is critical to the future development of the municipality as opportunities within its boundaries are limited. The creation of alternative sources of employment and the diversification of the local economy will create economic opportunities within the municipality. This is critical as the majority of the population is unskilled with low levels of education. c) Access to Energy

The majority of the total population in the rural hinterland of Umzumbe does not have household electricity connections. Households use a combination of firewood, paraffin, candles and batteries – and electricity if available - as domestic energy sources. According to the 2007 Community Survey 46% of the population uses electricity as their source of light. However it is important to note that there are no power lines in the central wards of the municipality (Map 8). Wood is the predominant fuel, although burning it can cause fire hazards and health problems. Its collection presents problems as there is a scarcity of wood and households have to travel long distances to obtain it.

Paraffin is also an expensive fuel, and is regarded as less desirable because of its highly flammable properties and the fire hazard associated with it.

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Map 8: Electricity Grid d) Water and Sanitation

Water and sanitation are a district competence. Ugu District Municipality is both a Water Service Authority, as provided by the Water Services Act, as well as a service provider for water and sanitation services. Umzumbe experiences huge water and sanitation backlogs. The sanitation backlog is estimated at 72%, while the water backlog is 60%. 24 360 pit latrines are planned to be constructed between 2006 and 2009.

The current and planned housing projects have been incorporated into the Ugu District IDP and the Water Services Plan. Included in the Municipal Infrastructure Grant (MIG) project priority list for the implementation period 2006/2009 are the following projects:

 Ndelu  Nyavini  Qwabe  Qoloqolo  Mathulini

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The remainder of the projects will be implemented between 2009 and 2012. Thus, it is planned that the sanitation backlog will be eliminated by 2012. The Ugu District Municipality has determined that a minimum level service for sanitation is based on the RDP minimum standard level that is a ventilated improved privy (VIP) for each household. Due to the dispersed nature of settlements it was also resolved that high density settlements will be serviced by on site low flush sanitation, while low density settlements will be provided with VIP.

Wards 10, 16, 18 and 19 are serviced by portable water purchased in bulk by Ugu from Umngeni water. The inland wards are serviced by water extracted from rivers treated at reservoirs and distributed to communities via stand pipes, communal taps, yard connections, boreholes and water tanks. The groundwater potential around the municipality is low and boreholes are unable to cope with the drought conditions.

On the other side, the Municipal Infrastructure Grant (MIG) cannot deal with the water supply backlog and water projections for the Umzumbe municipality shows that in 2011/2012 there will be large areas of the municipality with no access to portable water.

Map 9: Water and sanitation e) Roads Infrastructure and Access to Transport

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Poor road infrastructure exists in all 19 wards of this municipality. Access to transport is a critical issue especially for household that reside in rural areas. The municipality has been unable to construct many access roads due to capacity and equipment shortages. Besides, deficit of equipment and capacity, the Department of Transport has not aligned its programmes with municipality priorities. This has resulted in the implementation of projects that fall outside of the IDP strategic objectives.

The municipality has identified few access roads to be constructed. The IDP prioritized projects are as follows:- Cluster A. Access Roads . Mpande, Vezisizwe, Malinga, Mpisane ,Mpelazwe Cluster B. . Qhamuka, KwaFoxini(Ntabazwe), Tate (Gebers) Cluster C . Bhekameva, Ndangeni, Chibini, Dunuse, Sosibo Cluster D . D 939 Link (Isivivane), D 939. Zisukumele

The above priority areas were prioritized as per housing projects and in areas with agricultural projects and community facilities.

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5. 0 PERFORMANCE MEASURES

Table 11: Performance Targets

Strategic Activity Measurement Start Output Budget Responsibility Objective Date

Quantify Installation of Operational data Nov 08 Installed R400 000.00 Umzumbe/DOH Backlog Demand Data base software Base programme Municipal official Competent trained to municipal operate data official base Beneficiary Backlog registration quantified & analysed Capacity Identify training Skills base of the Sep 08 Capacity to R100 000.00 Umzumbe building of needs Housing carry out municipal Department housing officials function Reduce Feasibility Feasibility of July 09 5500 units R550 000.00 DOH/ housing assessment future projects assessed by Umzumbe backlog of future projects assessed June 2012

Implementation Construction of June 08 400 units per R17 402 400 DOH/Umzumbe of current and 40 units per annum planned projects month Completion of June 08 Completion Umzumbe/DOH Stage 1 of stage 1 by June 09 Approval of June 09 Completion Umzumbe/DOH Stage 2 of stage 2 Construction of June 2010 Completion Umzumbe/DOH 40 units per of 400 units month per annum per project

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While it is easy to establish annual targets by picking up an acceptable final performance level and dividing expected targets evenly on the years between, such straight line thinking about progress is often inconsistent with the way that development programs really work. More often than not, no real progress in terms of measurable impacts or results is evident during the start up period. In Umzumbe projects were approved as far back as 2004 however no single project has been completed

Second, projects are often delayed by capacity constraints of municipalities to manage projects. Set out above are the performance targets of Umzumbe Municipality with regard to housing development.

6.0 INSTITUTIONAL FRAMEWORK

6.1 OVERALL APPROACH

This section of the report sets out the institutional mechanism that will enable the Umzumbe Municipality to implement housing. The institutional structure is critical for the Umzumbe Municipality in that, the municipality currently has no institutional structure and systems to manage the planning and implementation of housing. It must be recognised that the institutional framework for the housing unit must relate to the municipal operational strategy.

There are a range of interventions and related disciplines required to bring about viable human settlements. The institutional framework has been conceptualised to provide the Municipality with the means to focus, coordinate and channel investment in a holistic manner. The institutional framework is designed to ensure co-ordination between line functions in both the Municipality and all spheres of government and must promote the long term sustainability and operational viability of the housing interventions undertaken in the municipal area. More importantly the structure needs to have the necessary authority and status to do so.

Outlined below are the institutional conditions for the housing unit to effectively deliver its mandate.

. Governance: refers to how the housing unit makes decisions, oversees its obligations and ensures internal accountability.

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. Authority: how the housing unit is empowered to act, through either founding documents, mandates or the municipal institutional structures. . Compliance: is the municipal ability to meet contractual and legal obligations i.e. the community and other spheres of government. . Competence: the ability of the housing unit to assemble and mobilise resources . Relationships: how the program interact with a variety of stakeholders

6.2 MANAGEMENT STRUCTURE

It is important that the housing management structure relates to the operational structure of the Municipality. Therefore the structure outlined below reflects the technical input required to deliver housing services in the Municipality. The position of the Housing Manager is mandatory to enable the Municipality to co- ordinate all the technical inputs required to deliver housing services. However, the planning and engineering are the critical technical inputs that support the Housing Manager to carry out his/her functions. It is proposed that the housing unit breaks its functions into the four components listed below. This will enable the Housing Manager to define and assign the functions that have to be co-coordinated for effective housing delivery.

6.2.1 Planning – Planning Department

It is important to note that this input will be provided by the Municipal Planning Unit considering the size of the municipality. The planning component is has responsibility to undertake the following tasks: . Strategic planning input to the housing unit as it relates to the implementation of all strategic planning projects and initiatives such as rural housing, vacant land audit, housing plan, housing spatial plan, special intervention projects etc. . Ensure that identified projects conform to the Integrated Development Plan (IDP) and the Spatial Development Framework. . Support coordinated and sustainable housing development.

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Figure 1: Housing Institutional Structure

Municipal Manager

Director Technical Services

Housing Manager Support & Administration

Housing Officer Building Planning Engineering Inspector

6.2.2 Housing Manager & Officer

The main tasks of the projects unit are to: . Plan and implement low income shelter opportunities . Ensure that infrastructure services are provided . Monitor quality of units implemented . Provide housing opportunities and full tenure . Manage implementation (project management)

6.2.3 Housing Engineering – Technical Services Department

Technical services manager will coordinate the implementation of all the engineering input including the functions of the District Municipality.

6.2.4 Support and Administration – Dedicated Resource to Housing Manager

The role of support and administration is to: . Identify and develop a list of beneficiaries . Undertake sales administration

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6.2.5 Building Inspector

The role of the building inspector is to undertake the following:

. Examine all construction work at its various stages buildings (roads, sewer and water systems, dams, bridges, and other structures to ensure that their construction, alteration, or repair complies with building codes and ordinances, zoning regulations, and contract specifications.

. Inspect the structural quality and general safety of buildings.

6.3 CAPACITY BUILDING

In the process of developing this plan an iterative process of learning took place. The municipality has appointed a Housing Manager that is competent to implement and review this plan. In the course of developing the plan it became apparent that the housing function in has been neglected in the municipality. Consequently an institutional structure as proposed in section 6 above is currently being implemented to roll out housing development.

Second, it has been established that the municipality does not have a practical method of identifying and prioritizing housing need. The installation of a housing demand data base has been identified as one of the initial projects to determine the extent of demand by realistically quantifying the backlog.

Identification of training needs of both the staff and beneficiaries will be undertaken to ensure that there is adequate capacity. The Department of Housing and its key stakeholders offers a range of training from project management, beneficiary education and data base management amongst others.

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7.0 CONCLUSIONS AND RECOMMENDATIONS

The Housing Sector Plan is a summary of the housing planning undertaken by the municipality and should be used together with the IDP. The HSP should be reviewed annually as part of the IDP process that will guide the planning and implementation of housing projects in the Umzumbe Municipality. The main reasons for producing a Housing Sector Plan by the Municipality are to: . To identify a 'Housing Voice' in the municipality . Ensure effective allocation of limited resources particularly financial and human to competing potential development interventions . Provide a formal and practical method of prioritizing housing projects and obtaining political consensus for the sequencing of their implementation . Facilitate greater spatial linkages between the Spatial Development Framework and physical implementation of projects on the ground. . Deliberately place the housing sector imperatives in the IDP . Ensure effective subsidy budgeting and cash-flows both at Municipal and Provincial levels.

Based on the information presented in this report and its findings the following conclusions and their respective recommendations are drawn. 1. Umzumbe Municipality is home to a population of 193 756 residents who are predominantly African spread across 19 municipal wards that make up 17 tribal authorities. The dispersed nature of settlements results in spatial disconnectedness from social and economic activities. Consequently, delivery of both social and bulk services is costly. Dense settlements are found near the coastal strip and along major roads. It is recommended that future housing development should be in the dense settlements where provision of services is more cost effective.

2. In this plan the housing backlog is estimated at 96% of the municipal population. This is informed by the percentage of households that earn less than R3500 a month. This assertion is supply driven and is devoid of the demand variables that factor in the needs of the beneficiaries. Consequently housing demand cannot be classified according to gender, product type and income amongst others. It is therefore proposed that a Housing Demand Data Base needs to be installed to ascertain the levels and type of need in the municipality.

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3. The Umzumbe Municipality has not completed a housing development project since 1994 whereas some projects were approved as early as 1997. Consequently the municipality needs to demonstrate visibility of progress with regard to housing development monitored against the performance targets set out in section 6 of this document. Furthermore the municipality needs to put strategies in place to when problems in projects are encountered.

4. The levels of employment are very low with an undiversified economic sector. As a result thereof conditions under which families live are severe. The single contributors to underdevelopment in the municipality are the high levels of poverty coupled with low levels of education. Unless the municipality considers development strategies that will create a vibrant local economy the high levels of state dependency due to the inability of households to adequately meet their basic needs will continue into the future.

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REFERENCES

Department of Housing, Guidelines on Housing Sector Plans, 2006

The Constitution of the Republic of South Africa, Act 108 1996

The Development Facilitation Act, (Act 67 of 1995)

The New Housing Settlement Plan, breaking New Ground, 2005

The Housing Act, (Act 107 of 1997)

Local Government Municipal Systems Act (Act No. 32 of 2000)

Local Government Municipal Structures Act, (Act No.117 of 1998)

Municipal Spatial Development Framework (2004)

Project Preparation Trust, July 2006 Municipal Housing Sector Plan Manual

Statistics South Africa, Census 2001

Statistics South Africa, Community Survey 2007

Umzumbe Local Municipality, Turton Precinct Business Plan, 2007

Umzumbe Local Municipality IDP 2008/2009

Umzumbe Local Economic Development Plan, 2005

Ugu District Municipality, Ugu District Municipality 2007/2011 IDP

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STAKEHOLDER CONSULTATION

PARTICIPANTS IN THE PREPARATION OF THE HOUSING SECTOR PLAN

Individuals are listed in terms of surname. All individuals are listed whether they participated in providing information or met with the consultants.

Name Organisation Topic Chuma Mqoboli Umzumbe Local Municipality Housing Musa Mbhele Umzumbe Munucipality Housing Nhlanhla Ngcobo Umzumbe Local Municipality Housing Nhlanhla Ngcobo Ugu District Municipality GIS Thembi Bhengu Umzumbe Local Municipality Planning Tandaza Ntikinca Department of Housing Strategic Neermala Naidoo Department of Housing Strategic Robert Mann Project Preparation Trust Strategic Penny Sibisi Ugu District Municipality Planning

Umzumbe Executive Committee 25 June 2008

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