MPOFANA LOCAL MUNICIPALITY

Municipal Housing Sector Plan

Final Housing Sector Plan Report

Issue Date: 28 July 2008 Revision No.: 2 Project No.: 9413

Date: 28 July 2008 Document Title: Mpofana Municipal Housing Sector Plan Author: Oscar Fumba Revision Number: 2 Checked by: Kavi Soni Approved: Kavi Soni

Signature: For: SiVEST Town and Regional Planning Division

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 1 of 109 MPOFANA LOCAL MUNICIPALITY

9413

MUNICIPAL HOUSING SECTOR PLAN

FINAL HOUSING SECTOR PLAN REPORT

Contents Page

1. SECTION1: EXECUTIVE SUMMARY 7

1.1 BACKGROUND 9

1.2 PURPOSE OF THE HOUSING SECTOR PLAN 11

1.3 RATIONALE FOR THE PLAN 12

2. SECTION 2: POLICY AND LEGISLATIVE FRAMEWORK 13

2.1 NATIONAL LEGISLATION 13

2.2 PROVINCIAL LEGISLATION 18

2.3 INTERNATIONAL POLICIES 19

2.4 NATIONAL POLICIES 19

2.5 AN OVERVIEW OF KZN PROVINCIAL HOUSING DEVELOPMENT PLAN 21

2.6 GOAL 25

2.7 STRATEGIC OBJECTIVES 25

2.8 KEY RESULT AREAS 25

2.9 STRATEGIES 26

2.10 THE NATIONAL HOUSING CODE 27 MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 2 of 109 2.11 PRIORITY HOUSING ISSUES AND STRATEGIES 28

3. SETTLEMENT PATTERNS ANALYSIS 30

3.1 URBAN AREAS 30

3.2 FARMLANDS 30

4. SECTION 3: CURRENT HOUSING DEMAND WITHIN THE MUNICIPAL AREA 31

4.1 LOCAL CONTEXT 31

4.2 DEMOGRAPHIC CONTEXT 33

4.3 ECONOMICS 36

4.4 SOCIAL CONTEXT 39

4.5 INFRASTRUCTURAL CONTEXT 40

4.6 DEMAND FOR HOUSING 44

5. SECTION 5: LAND INVESTIGATION FOR HOUSING 57

5.1 THE NEGATIVE MAPPING PROCESS 57

5.2 FACTORS INFLUENCING HOUSING DEVELOPMENT AREAS 58

6. SECTION 6: LAND ASSESSMENT FRAMEWORK 62

6.2 NEGATIVE MAPPING AND WINDOW AREAS 62

6.2 CONCLUSION: 63

7. SECTION 7: SPATIAL DEVELOPMENT FRAMEWORK (SDF) 64

7.1 PURPOSE OF THE SPATIAL DEVELOPMENT FRAMEWORK 64

7.2 UNDERLYING PLANNING APPROACHES 65

7.3 OBJECTIVE 66

7.4 ESTABLISHMENT OF STRUCTURE 66

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 3 of 109 7.5 HIERARCHY OF MOVEMENT, ACTIVITY AND LAND USE CORRIDORS 66

7.6 HIERARCHY OF ACTIVITY AND SERVICE CENTRES/NODES 66

7.7 CURRENT STATUS OF THE MPOFANA SPATIAL DEVELOPMENT FRAMEWORKS (SDF) 66

7.8 STRATEGY 67

7.9 PROPOSED SETTLEMENT HIERARCHY 67

7.10 COMMUNITY PRIORITIES 68

8. SECTION 8: MUNICIPAL INSTITUTIONAL ARRANGEMENTS 70

9. SECTION 9: PERFORMANCE INDICATORS: 73

9.1 PRELIMINARY ASSESSMENT 74

9.2 PRE-FEASIBILITY 74

9.3 FEASIBILITY 75

10. SECTION 10: MPOFANA HOUSING ROLL-OUT PLAN 76

11. SECTION 11: CASHFLOW FOR PROJECTS 78

12. SECTION 12: INTEGRATION WITH OTHER SECTORS 79

12.1. REVISED STRATEGIC ISSUES FOR THE IDP REVIEW 2007/08 80

13. SECTION 11: THE SOUTH AFRICAN HOUSING SUBSIDY SCHEME SUBSIDY QUANTUM AMOUNTS FOR THE PERIOD 1 APRIL 2007 TO 31 MARCH 2008 IN RESPECT OF A 40M2 HOUSE ONLY. 84

13.1 PROCEDURES FOR IDENTIFYING AND SECURING LAND FOR DEVELOPMENT 84

14. WHAT ARE HOUSING NORMS AND STANDARDS? 86

14.1 MUNICIPAL SERVICES: 86

14.2 TOP STRUCTURE: 86

15. PROJECT EVALUATION 86

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 4 of 109 16. CONSULTATION PROCESS 87

16.1 ESTABLISHMENT/FORMALIZATION OF PROJECT STEERING COMMITTEE 87

17. CONCLUDING REMARKS 88

Tables Page

Table 1: Priority Housing Issues and Strategies 28 Table 2: Population Grouping 32 Table 3: Population Grouping by Percentage 32 Table 4: (Community Survey, 2007 Basic Results Municipalities – Statistical release P0301.1) 32 Table 5: Percentage of Households using pit Latrine, bucket and no toilet facility by Municipality: Census 2001 and CS 2007 42 Table 6: Type of energy for Heating, Cooking and Lighting: Census 2001 and CS 2007 42

Housing Demand

Table 7: Ward 1 45 Table 8: Ward 2 45 Table 9: Ward 3 45 Table 10: Ward 4 46

Housing Typologies

Table 11: Ward 1 46 Table 12: Ward 2 46 Table 13: Ward 3 47 Table 14: Ward 4 47 Table 15: Urban and Rural Households (Census 2001 47 Table 16: Dwelling Type by Municipality 47 Table 17: Percent of Households Living in Formal and Informal Dwellings by Municipality: Census 2001 and CS 2007 48 Table18: Percentage Distribution of Households by Tenure Status and Municipality: Census 2001 and CS 2007 48 Table 19: Project Linked Subsidies as KZNDoH 51 Table 20: Mpofana Housing Projects in Planning Phases 52 Table 21: Housing Projects submitted to KZN Department of Housing 53 Table 22: Existing Land Reform Projects 53 Table 23: Existing Land Reform Projects and Land Availability 53

Table 24: Housing Need Template 55 Table 25: Number of People per Ward 58 Table 26: Settlement Hierarchy as per Municipal Spatial Development Framework 67 Table 27: Summary of Identified needs per Ward as per The Public Participation Process 68 Table 28: Performance Indicators 73 Table 29: Roll-Out Plan for Approved Projects 76 Table 30: Roll-Out Plan for Projects in Packaging Phase (Conditional Approval) 76 Table 31: Roll-Out Plan for Projects in Initiation Stage 77 Table 32 Cash Flow for Project Linked Subsidy Projects 78 Table 33: Strategic Framework, Strategies and Alignment 80 Table 34: Water 81 MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 5 of 109 Table35: Sanitation 81 Table36: Waste Management 81 Table37: Electricity 82 Table38: Road and Transportation Planning 83 Table 39: The South African Housing Subsidy Scheme subsidy quantum amounts for the period 1 April 2007 to 31 March 2008 in respect of a 40m2 house only. 84 Table 40: Project Steering Committee 87

Graphs Chart 1: Gender Cohorts 35 Chart 2: Gender by Age 35 Chart 3 Employment Status 36 Chart 4: Highest Education Attained by over 20 year Olds 37 Chart 5 Annual Household Incomes 38 Chart 6 Individual Monthly Incomes 38 Chart 7 Industry 39 Chart 8 Sanitation 40 Chart 9 Sources of Water 41 Chart 10 Dominant Energy Source for Lighting 42 Chart 11 Modes of Travel to Work or School 43 Chart 12 Dwelling Type % by Municipality 47 Chart 13 Households by Dwelling Type 48

Figures

Fig 1: Housing Concept 11 Fig.2: Mpofana Local Municipality (KZ 223) 31 Fig.3: Population Density 33 Fig.4: Comparative Age Distribution per Ward 35 Fig.5: Percentage Households with "improved" Toilet Facilities, 2001: Mooi Mpofana [KZ223] 41 Fig.6: Components of housing need 55 Fig.7: Mpofana Municipal Organogram 66 Fig.8: The Turnkey Strategy 67 Fig.9: Procedure for Identifying and Securing Land for Development 77

Appendices

A: Maps B: Advert C: Minutes of Meetings D: Consultation List E: Vrystaat Farm Housing Layout F: Sierra Ranch Development Plan G: Bruntville Hostel Conversion H: Tendele Housing Land Audit Report

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 6 of 109 1. SECTION1: EXECUTIVE SUMMARY

This document provides an analysis of the Current Housing situation within the Mpofana Municipal Area by assessing the demand within the Municipal area, identification of land suitable for housing, identification of planned projects, integration with other Sectors; Spatial Development Plan; and Performance Measurement (Targets). The document also links the housing demand with the plans for delivery especially in terms of water and sanitation in the Municipal area.

The method of analysis that was used to determine the demand include strategic policy analysis which looks into national and provincial policy initiatives to reduce the housing backlogs, census data which assesses the affordability of households to meet their own housing needs by looking at the household size, household income per annum , and the number of traditional dwelling.

The result of the data analysed show of all the households in the area, (which is 9597 households), some 1933 households (or 18% of the total number of households) have ≥ 5 pp/household; 84% of the total number of households) earn between R0 and R76 800 per annum which are clearly eligible for housing subsidies; Some 2641 households which constitutes 27.5% of the total number of households are housed in traditional dwellings which qualifies them as targets for the Rural Housing

The above figures show that there is a high demand for subsidy housing in the study area and that the majority of the households in the Municipality can be assumed to be eligible to attain government subsidy housing.

This report recommends that;

‰ whilst it is 8789 households that are eligible for a housing subsidy, the number of households that are housed in traditional dwellings be considered as the target demand for housing for the next 5 years, namely 4253 households, ‰ for the next 5 years, the housing projects be rolled-out in Wards 4 and 2 respectively. In the following years, wads 1 and 3 should be considered for housing. ‰ In addition, the Housing Development Plan should be reviewed and other Wards, where necessary, should then also again be targeted.

This document also investigates the fact that the information used has limitations. Some of the limitations include:

‰ Some of the census data used to analyse the household eligibility to subsidy housing and to determine the demand for housing in the municipal area is already more than five years old (Census 2001 data).

At the point of departure attention is drawn to the National Housing Code (March 2000: 29UF), which identifies the primary role of the municipality as taking all reasonable and necessary steps,

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 7 of 109 within the framework of national and provincial legislation and policy, to ensure that the inhabitants within its area of jurisdiction have access to adequate housing on a progressive basis. This entails the following:

‰ Initiating, planning, facilitating and co-ordinating appropriate housing development. ‰ Promoting private sector development and playing the role of developer. ‰ Preparing a housing delivery strategy and setting up housing development goals. ‰ Allocating and planning land for housing development. ‰ Creating a financially and socially viable environment for housing delivery. ‰ Facilitating the resolution of conflicts arising from housing delivery initiatives. ‰ Facilitating the provision of bulk services. ‰ Administering national housing programmes. ‰ Expropriating land for housing development.

This plan is aimed at assisting the municipality to fulfil the abovementioned role assigned to it in terms of the National Housing Code.

Finally, it is noted that this plan has been prepared strictly in accordance with the two guideline documents issued by the provincial Department of Housing to municipalities, namely “Housing Planning Template 2003 - 2006” and “The Department of Housing: Strategic Housing Planning Guidelines for Municipalities 2002”. The plan accordingly provides the following:

‰‰‰ an overview of the local context; ‰‰‰ information regarding current housing demand ‰‰‰ identification of land suitable for future housing development ‰‰‰ an overview of the current housing situation; ‰‰‰ information regarding planned projects ‰‰‰ information regarding integration of housing with other sectors ‰‰‰ reference to the Mpofana Integrated Development Plan’s Spatial Development Framework ‰‰‰ a set of performance indicators; ‰‰‰ information regarding housing institutional arrangements and ‰‰‰ a conclusion

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 8 of 109 1.1 Background

SiVEST was appointed by the Mpofana Local Municipality to prepare their Municipal Housing Sector Plan. It is a requirement that the plan should set strategies and timeframes for the development of housing in the area and should also be linked to the Municipal Integrated Development Plan (IDP) as well as the Provincial Housing Plan in order to ensure the alignment of programmes and objectives at all spheres of governance. More specifically, the project aims to identify the current housing demand, assess the rate of development in terms of housing delivery in the municipality and also identify bottlenecks in the process.

In terms of Section 9(1) of the National Housing Act, Act 107 of 1997, every municipality must as part of the municipality’s process of integrated development planning take all reasonable and necessary steps to ensure that the inhabitants within its area of jurisdiction have access to adequate housing on a progressive basis by setting housing delivery goals, identifying suitable land for housing development and planning, facilitating, initiating and co-ordinating housing development in its area of jurisdiction.

In terms of the revised procedures established in Chapter 3 of Part 3 of the National Housing Code, municipalities are responsible for identifying land suitable for housing development and to make applications for housing subsidies. Central to this process is the development of a multi- year Municipal Housing Plan as part of an approved IDP.

A housing sector plan is an important tool to the Department of Housing in the distribution of funding to municipalities and will introduce a new culture of strategic housing planning in the local sphere of government. Also National and Provincial Housing Development Plans need to be informed by Municipal Housing Plans. It is also an important tool in guiding the development activities of other government and private sector organizations.

Municipalities are also required to develop a housing waiting list for the various categories and housing allocation shall be based on such a list. However a housing demand database is preferred over a housing waiting list as the latter has the potential to create expectations among communities.1

Any housing plan should be accompanied by housing related policies to guide the operations of the housing allocation and distribution system and should inform social issues such as how to deal with land invasions and informal settlements.

It is understood that the Mpofana Municipal Housing Plan should have a clear strategic focus, a five-year time horizon and be linked to the Municipal IDP and its relevant sector plans as well as the Provincial Housing Development Plan.

1 Ms X.Z.F. Nyandu, (HOD) KZN Department of Housing, 6 April 2008 MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 9 of 109 It is also understood, from the call for proposals, that the following core elements must form the basis for the development of the Municipal Housing Plan:

1. Current Housing Demand within the Municipal Area 2. Land Identification; 3. Current and Planned Housing Projects 4. Integration with other Sectors; 5. Spatial Development Plan; and 6. Performance Measurement (Targets).

For the purposes of this report HOUSING is defined as a process by means of which access to “a permanent residential structure with secure tenure, ensuring privacy and providing adequate protection against the elements; portable water, adequate sanitary facilities including waste disposal and domestic electricity supply,” for all people is facilitated. (White Paper on Housing).

The National Housing Programme (Department of Housing: Environmental Implementation Plan, 2001), recognises that adequate shelter needs to provide: adequate privacy; adequate space; physical accessibility; adequate security; security of tenure; structural stability and durability; adequate lighting; heating and ventilation; adequate basic infrastructure such as water supply, sanitation, and waste-management facilities; sustainable environmental quality and health related factors, and adequate and accessible location with regard to work and basic facilities. All of these elements need to be available at an affordable cost.

It also refers to an integrated approach to development using the delivery of shelter as the primary focus.

2Housing can be defined as a variety of processes through which habitat, stable and sustainable public and private residential environments are created for variable households and communities. The building of a house is the culmination of many planning processes and legislative requirements that need to be adhered to before the actual housing is constructed.

This includes the undertaking of processes such as Environmental Scoping Study (ESS) and Environmental Impact Assessment. Environmentally (EIA) sound housing implies housing, which, besides technical and affordability requirements, also meets the need for environmental efficiency (Environmentally Sound Low-cost Housing, 2001).

As indicated in the graphical representation in Figure 1 below, housing includes, among others, the development of housing units, service delivery, the upgrading of land tenure rights, social and community development and planning policy issues.

2 www.nwpg.gov.za/human health and well-being html MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 10 of 109

Figure 1: Housing Concept

SUSTAINABLE HUMAN SETTLEMENT

SHELTER Community Facilities Poverty Alleviation NATION BUILDING Service Delivery DEVELOPMENT INTEGRATED Job Creation Land Tenure Self Esteem

Policy Legislation Programmes Budget

SOCIAL DEVELOPMENT

1.2 Purpose of the Housing Sector Plan

The Municipal Systems Act 32 of 2000 requires all municipalities to compile Integrated Development Plans (IDPs) that will guide all their planning, budgeting and management decisions. Apart from the legislative requirement to compile IDPs, municipalities are also expected to compile sector plans, which should form part of the IDPs. The following are examples of national legal requirements that demand municipalities to formulate sector plans:

‰‰‰ Water Services Development Plan (WSDP): Department of Water Affairs and Forestry ‰‰‰ Integrated Waste Management Plan (WMP): Department of Water Affairs and Forestry ‰‰‰ Integrated Transport Plan (ITP): Department of Transport ‰‰‰ Land Development Objectives (LDO’s): Department Land Affairs and ‰‰‰ Spatial Development Framework (SDF): Department of Provincial Affairs and Local Government

In addition to these municipalities are also required to incorporate into their planning frameworks; Housing Strategies and Targets, Local Economic Development Plans, Integrated Energy Plans and Integrated Infrastructure Plans. They also are expected to comply with guiding principles of

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 11 of 109 National Environmental Management Act (NEMA), Environmental Management Plans (EMPs), Environmental Implementation Plans (EIPs) and the Development Facilitation Act (DFA).

The Housing Act (No. 107 of 1997) informs the compilation of housing plans. Part IV of the Act specifically requires municipalities to compile housing strategies and targets, as part of their IDPs. The Mpofana Housing Plan is being developed within the context of these legal provisions. It will form part of the Mpofana IDP once completed.

This Housing Plan is intended to be, a guiding document that will help the municipality achieve the objective of providing sustainable housing for its residents. Through this housing plan the municipality will also be able to stimulate the local economy, create an environment for local job creation, and address the needs of its residents.

Planned housing projects will also ensure that integration happens between housing and other service provision such as infrastructure development; roads, transport, health, education and security.

1.3 Rationale for the Plan

To enable the municipality to strategically plan housing development within its area of jurisdiction through a Municipal Housing Plan that sets housing delivery goals and ensures that sustainable housing projects are implemented. The database and related housing policies will ensure the equitable and fair distribution of housing to deserving members of the community.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 12 of 109 2. SECTION 2: POLICY AND LEGISLATIVE FRAMEWORK

This section considers the policy and legislative environment at the National, Provincial levels and Local level.

2.1 National Legislation

• The Constitution

The Constitution of the Republic of South Africa is a legal document which establishes the fundamental rules and principles by which the Republic is governed. It defines the nation's fundamental political principles and establishes the power and duties of each government. With the constitution comes the Bill of Rights which guarantees certain rights. For the purpose of this study it is important to understand the principles and the rights of the people in terms of housing provision within the Republic. Section 26 of the Constitution provides that:

(1) Everyone has the right to have access to adequate housing. (2) The State must take reasonable legislative and other measures within its available resources to achieve the progressive realisation of the right. (3) No one may be evicted from their home or have their home demolished, without an Order of Court made after considering all the relevant circumstances. No legislation may permit arbitrary evictions.

Form the above it is clear that the right to adequate housing is for all the residents of South Africa. With this right comes a responsibility for the State to “take reasonable and legislative and other measures to achieve the progressive realisation of this right”.

For those who can afford to pay for housing; it is the responsibility of the State and its implementing agents to unlock the system, to provide access to housing stock as well as the legislative framework to facilitate self built houses through planning laws and access to finance. Access also implies that it is not only the state that is responsible for the provision of houses but that other agents within society, including individuals themselves, must be enabled by legislative and other measures to provide housing.

The State’s obligation to provide access to adequate housing depends on context and it may differ from province to province, from city to city, from rural to urban areas and from person to person. Some may need access to land and no more, some may need access to land and building materials, some may need access to finance, some may need access to services such as water, sewage, electricity and roads. It is thus important for each agent that is implementing housing provision to clearly define the type of access that is required in a particular circumstance.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 13 of 109

The core principles which come out from Section 26 of the Constitution are:

o That the State must respect, protect, promote and fulfil the rights in the Bill of Rights, especially the right to equality, human dignity and access to information. o There must be legislation, policies and programmes giving effect to section 26, which must, in essence be reasonable within their social, economic and historical context as well as within the availability of resource. o The needs of the most vulnerable in society require special attention such as devising, funding, implementing and supervising measures to provide relief to those in desperate need. o The State must examine legal, administrative, operational and financial barriers to accessing socio-economic rights and where possible, take steps to lower them over time so as to ensure the progressive realisation of the right, i.e. so that a larger number and wider range of people can get access to adequate housing over time. o Responsibilities and tasks must be clearly allocated to different spheres of government and the appropriate financial and human resources must be available. o There must be proper monitoring of progress in implementing housing projects and programmes. o Communities must participate in housing policy, process and programmes.

• National Housing Act The Housing Act; No. 107 of 1997 hereafter referred to as the Housing Act, sets out the housing development guidelines as well as the roles and responsibilities of all spheres of government for housing. The role of the Local Municipality is defined as that of ensuring that; as part of the IDP, Local Municipalities take necessary steps in line with the National and Provincial housing legislation to:

o “Ensure that inhabitants of its area of jurisdiction have access to adequate housing on a progressive basis o Conditions not conducive to the health and safety of the inhabitants of its area of jurisdiction are prevented or removed o Services in respect of water, sanitation, electricity, roads, stormwater, drainage and transportation are provided in the manner which is economically efficient”

Further to this it is the role of Local Government to set housing delivery goals, identify and designate land for housing development; create and maintain the public environment conducive to housing development; initiate, plan, facilitate, promote and enable appropriate housing development in its area of jurisdiction.

Some of the general principles for housing that are applicable to all spheres of governance include:

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 14 of 109 ○ Giving priority to the needs of the people with respect to housing ○ Ensuring that housing development provides a wide choice of housing and tenure options ○ Housing development is in line with the Municipal Integrated Development Plan ○ Promote provision of community and recreational facilities in residential areas ○ Caters for the housing needs of marginalised women and other groups disadvantaged by unfair discrimination”

Based on the above principles, the role of Local Government should be to seek to ensure that its obligations in terms of housing development are met and that the measures used are in line with the principles of co-operative governance.

• Development Facilitation Act

The Development Facilitation Act (No 67 of 1995) hereafter referred to as DFA sets outs guiding principles for spatial planning. The DFA states that:

“Policy, administrative practice and laws should promote efficient and integrated land development in that they:

• promote the integration of the social, economic, institutional and physical aspects of land development; • promote integrated land development in rural and urban areas in support of each other; • promote the availability of residential and employment opportunities in close proximity to or integrated with each other; • optimise the use of existing resources including such resources relating to agriculture, land, minerals, bulk infrastructure, roads, transportation and social facilities; • promote a diverse combination of land uses, also at the level of individual ervens or subdivisions of land; • encourage environmentally sustainable land development practices and processes; • ensure the safe utilisation of land by taking into consideration factors such as geological formations and hazardous undermined areas.”

The contributions of all sectors of the economy is encouraged by the DFA in that it seeks to include participation of all sectors of the community; (government and non-government) so as to maximise the country’s capacity to undertake land development. The DFA also states that members of communities affected by land development should actively participate in the process of land development.

In matters of land tenure; the DFA states as a principle that “land development should result in security of tenure, provide for the widest possible range of tenure alternatives, including individual and communal tenure, and in cases where land development takes the form of upgrading an existing settlement, not deprive beneficial occupiers of homes or land or, where it is necessary for land or homes occupied by them to be utilised for other purposes, their

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 15 of 109 interests in such land or homes should be reasonably accommodated in some other manner.” (DFA: 1995; Chapter 1, Section 3 (k))

• The Municipal Systems Act; No 32 of 2000

The above Act (MSA) gives meaning to the term “developmental government”, where “development” means “sustainable development, and includes integrated social, economic, environmental, spatial, infrastructural, institutional, organisational and human resources upliftment of a community aimed at-

o improving the quality of life of its members with specific reference to the poor and other disadvantaged sections of the community; and o ensuring that development serves present and future generations;”

It is with this understanding that all Municipalities should seek to ensure that the housing needs of its residents are met in order to comply with this developmental approach of the Act.

The Municipal Systems Act also provides that:

A municipality must undertake developmentally oriented planning so as to ensure that it –

(a) strives to achieve the objects of local government as set out in section 152 of the Constitution;

(b) gives effect to its developmental duties as required by section 153 of the Constitution; and

(c) together with other organs of state contributes to the progressive realisation of (certain) fundamental rights.

With this in mind; Chapter 5 of the MSA gives guidance as to the preparation of IDPs by Municipalities. This is a strategic plan for the municipality which aligns the development goals of the municipality with the financial resources that the municipality has. As part of the IDP the municipality should assess the levels of existing development, formulate strategies for development and align its strategies with the financial plan of the Municipality.

The MSA provides that the planning undertaken by a municipality must be aligned with, and complement, the development plans and strategies of other affected municipalities and other organs of state so as to give effect to the principles of co-operative government contained in section 41 of the Constitution.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 16 of 109 Municipalities have a key function to undertake integrated development planning and maintain housing areas. Municipal Housing Development Plans must be used to inform the housing component of the IDP. The focus on land and service delivery through provincial housing programmes has implications for municipalities and their integrated development planning.

• National Environmental Management Act - NEMA

Section 24 of the Constitution authorises the enactment of the National Environmental Management Act 107 of 1998. NEMA recognises that many inhabitants of South Africa live in an environment that is harmful to their health and well-being; that everyone has the right to an environment that is not harmful to his or her health or well-being and that the State must respect, protect, promote and fulfil the social, economic and environmental rights of everyone and strive to meet the basic needs of previously disadvantaged communities.

It indicates that sustainable development requires the integration of social, economic and environmental factors in the planning, implementation and evaluation of decisions to ensure that development serves present and future generations. Also, everyone has the right to have the environment protected, for the benefit of present and future generations, through reasonable legislative and other measures that prevent pollution and ecological degradation; promote conservation; and secure ecologically sustainable development and use of natural resources while promoting justifiable economic and social development. The environment is considered as a functional area of concurrent national and provincial legislative competence, and all spheres of government and all organs of state must co-operate with, consult and support one another.

Based on the above an impact assessment on the environment; socio-economic conditions; and the cultural heritage, of activities that require authorisation or permission by law and which may significantly affect the environment, must be considered, investigated and assessed prior to their implementation. Section 24(2) of NEMA indicates that certain activities may not commence without prior authorisation from the Minister or MEC.

For these activities to take place an investigation of the impact on the environment is required. This investigation will be in the form of some type of environment impact assessment. The new EIA regulations have been drawn up in terms of the Act and these should be used in order to asses the impact of intended development on the environment.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 17 of 109 2.2 Provincial Legislation

• KwaZulu-Natal Housing Act

In a provincial context, the KwaZulu Natal Housing Act (No 132 of 1998) is the most important provincial statute to regulate housing issues in the p[rovince and its local municipalities. This Act sets outs the roles, responsibilities, duties and functions of both the Province and Local Municipalities. In terms of this Act; it is the duty and responsibility of the Local Municipality to:

“(a) take all reasonable and necessary steps to ensure that the inhabitants of its municipal area have access to adequate housing; (b) set sustainable housing delivery goals in respect of its municipal area; (c) Identify and designate land for housing purposes; (d) ensure the economic, efficient and effective provision, operation and maintenance of services in respect of water, sanitation, electricity, roads and stormwater drainage; and (e) regulate health and safety standards relating to housing development. “

It is the function of the municipality to ensure that access to land for housing is accelerated and that the necessary bulk infrastructure and services are planned for and/or is available for the proposed housing development. Further to this the municipality may:

(a) Initiate, plan and execute projects, provided that in such cases where a project forms part of a housing programme for which the municipality is accredited in terms of section 18, the project shall be referred to the Minister for approval; (b) Facilitate and co-ordinate housing development in its municipal area; and (c) Participate in any housing programme by - (i) Promoting a housing development project by a developer; (ii) Entering into a joint venture contract with a developer in respect of a housing development project; (iii) Establishing a separate business entity to execute a housing development project; or (iv) Facilitating participation in the housing process.

The above duties and responsibilities calls for necessary measures to be taken by municipalities to ensure that an environment conducive for housing development exists. The

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 18 of 109 strategies and financial plans of the municipality should reflect it obligation to perform such duties for its inhabitants.

2.3 International Policies

The Millenium Development Goals, adopted by United Nations members is the base document according to which targets for development are set. The target for the plan is that by 2020 the member nations will achieve an improvement in the quality of life of the 100 million slum dwellers. Further to this the document assesses the development goals of the countries by looking at their socio-economic trends and policies that will enable the realization of this goal.

2.4 National Policies

• State of the Nation Vision 2014

In this speech by President Thabo Mbeki, the main elements of the vision are set out. These include:

o Creating work and fighting poverty; o Achieving integrated and sustainable communities; o Aligning Provincial Housing Development Plans with Municipal Housing Development Plans; and o Ensuring sustainable development and reduce the loss of biodiversity.

• National Housing Policy

The Housing White Paper indicates that the national housing vision includes the establishment and maintenance of habitable, stable and sustainable public and private residential environments to ensure viable households and communities in areas allowing convenient access to economic opportunities, and to health, education and social amenities in which all citizens and permanent residents of the Republic will, on a progressive basis, have access to permanent residential structures with secure tenure, ensuring internal and external privacy and providing adequate protection against the elements; and potable water, adequate sanitary facilities and domestic energy supply. This vision, the seven key strategies and the principles and points of departure, form the cornerstones of the national housing policy. It resulted in the publication of the National Housing Code.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 19 of 109 • Breaking New Ground (2004)

The document outlines a plan for achieving sustainable human settlements, to be addressed over the next five years. Sustainable human settlements are: those settlements that provide healthy and secure living environments and where everyone will have access to the services and goods produced by society.

Priority areas of the plan:

1 Increased access to housing: this has meant a change in the subsidy brackets and thus catering for people who earn up to R 7000 pm; 2 Integrated sustainable settlement: enhancing location and design through housing land policy; 3 Accreditation of municipalities in order to assign them to perform some of the housing duties that are currently done by provincial departments; 4 Job creation and alleviation of poverty; 5 Provision of rural housing including the provision of housing for the farm workers.

• Rural Housing Development

Taking into consideration that rural housing development in the province will take place on tribal land; the KZN Provincial Housing Department drafted a policy that guides housing development on rural land. The policy reiterates the need of alignment of housing projects with the municipal IDPs and that integrated planning should be promoted through ensuring that the different government departments that deal with matters of land development are brought into play to discuss housing development issues in rural areas.

The core issue in rural housing is tenure security which should be considered before any housing development takes place. In the case where land rights are vested with Ingonyama Trust or the Department of Land Affairs; a land availability agreement will have to be concluded with these authorities and this will serve as sufficient proof of development rights on the land. The granting of common law long term leases will provide sufficient security of tenure to satisfy the requirements of the housing subsidy scheme.

In areas where “functional security of tenure” exists (i.e. Traditional areas where formal tenure is not possible but where beneficiaries are permitted to live on the land in accordance with the traditional arrangements); informal rights to land must be uncontested in order for Rural Subsidy mechanism to take place.

Whereas the above applies on tribal land, development of housing on land other than tribal land will be regulated by the Less Township Establishment Act, No 113 of 1993; the Development Facilitation Act, No 67 of 1995, the Natal Town Planning Ordinance; No 27 of 1949. MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 20 of 109

For freehold tenure and long term tenure leases tenure options; the institutional subsidy mechanism is the most appropriate to apply. In cases where permission to occupy (PTO) is a common tenure option; the Rural Subsidy Mechanism will be used. This mechanism requires consultation with the Department of Housing and the Department of Land Affairs.

• Municipal Powers and Functions

In summary, the following roles and responsibilities of municipalities in terms of housing development are reiterated:

o Municipalities must ensure the delivery of sustainable, effective and efficient municipal services. o Municipalities must promote social and economic development. o Municipalities must encourage a safe and healthy environment by working with communities in creating environments and human settlements in which all people can lead uplifted and dignified lives. o Municipalities must promote sustainable development which includes integrated social, economic, environmental, spatial, infrastructural, institutional, organisational and human resources upliftment of a community. o Planning undertaken by a municipality must be aligned with, and complement, the strategies of other affected municipalities and other organs of state so as to give effect to the principles of co-operative government. o Participation in all processes and programmes must be ensured and promoted. o Land release procedures must be speeded up. o Local government is a distinctive sphere of government, interdependent, and interrelated with national and provincial spheres of government and therefore the principle of developmental local government is stressed. o Municipalities must exercise their executive and legislative authority within the constitutional system of co-operative government. On the other hand the national and provincial spheres of government must exercise their executive and legislative authority in a manner that does not compromise or impede a municipality's ability or right to exercise its executive and legislative authority. o A culture of accountability, openness and transparency in the public administration or in the exercise of a public power or the performance of a public function must be promoted.

2.5 An Overview of KZN Provincial Housing Development Plan3

2.5.1 Land and Legal Issues

These issues more often than not present as obstacles to speedy housing delivery. The need to strengthen capacity to deal with land - legal obstacles has been recognised. There has been

3 THE KWAZULU-NATAL PROVINCIAL HOUSING DEVELOPMENT PLAN: 2002/3…2004/5 MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 21 of 109 movement in terms of bolstering internal capacity coupled with the use of external capacity to deal with land – legal complexities. Land identification and the speedy release of land for housing projects have been listed as strategies to deal with priority housing issues.

2.5.2 Sustainability of Housing Projects

The need for housing projects to be sustainable given the substantial State investment therein has been recognised. Housing projects will have to be well located in terms of economic opportunities, transport networks and other infrastructure.

Housing projects should not be located on the periphery but integrated with existing and established settlements. The need for integrated development cannot be over - emphasised and is considered vital for the sustainability of housing projects, hence the need to integrate planning for housing with the Municipalities’ IDP process.

Housing as with any other land use, has to comply with a range of planning and development - related legislation before a Provincial Housing Authority approves of a housing project.

Housing development in terms of the Housing Programme is subject to the requirements of existing urban development legislation and procedures including Environmental Impact Assessments. The Republic of South Africa subscribes to the United Nation’s Agenda 21 principles and therefore at all levels of development planning; environmental considerations are taken into account before a housing project is approved.

2.5.3 Rural Housing Development

In the past rural areas have been neglected when housing development was done. This has led to the current imbalance in housing provision between rural and urban communities.

Rural housing development has been identified as a priority housing issue. This is aimed at striking equilibrium between urban and rural housing and eradicating urban bias. Rural housing development as a focal housing issue aligns the Province with the integrated rural development strategy (IRDS) as contained in the President’s State of the Nation Address. Rural housing development is part of the campaign against poverty. It will also contribute to reducing the services backlog in rural areas.

2.5.4 Move to Municipal-Driven Housing Development

In the past, housing projects were identified and packaged by building contractors, who were doing it for profits more than anything else. Municipalities were never part of the process and the then KZN- Provincial Housing Board had no means of ensuring that the quality that was delivered was equal to the tax payer’s money that was put in the project.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 22 of 109 With the new Municipal Systems Act, no development within any municipal area is undertaken without involving that municipality and must be in line with the Integrated Development Plans of that municipality. This will lead to more use of the People’s Housing Process in the future housing developments.

2.5.5 Impact of HIV/ AIDS on Housing Delivery and Housing Beneficiaries

The impact of aids on housing beneficiaries cannot be ignored. To this end, an Aids Policy has been formulated. Two special projects, namely Lily of the Valley and God’s Golden Acre were initiated to provide relief for aids orphans.

The concept of home-based care is also being investigated. It is clear that planning will have to take into account the impact of HIV Aids on housing beneficiaries and formulate appropriate strategies. There is a need to provide easy access for weak HIV/ Aids patients.

In effect homes have to be designed around the needs of wheelchair patients. It also means that municipalities, as developers, have to pay more attention to roads and access to the homes themselves. Planning will have to be integrated so as align housing delivery with other service provision in projects if these special needs are to be addressed.

More clinics are going to have to be built and public transport improved to make it easier for HIV patients to get medical help. As developers and as a society we have no option but to increase densities in order to bring down the costs of services such as water, sewage and roads and to make public transport viable once again.

2.5.6 Current Cost of Service Provision and the move towards Densification

Given the current urbanisation trends, there has been a move towards densification to accommodate the escalating costs of service provision in low cost housing. There is also a need for inner city revitalisation. The Department has a task of striking a balance between supplying a starter home on a site that will allow the beneficiary enough space for future extension of his/ her house, while at the same time taking into account the escalating costs involved in servicing bigger sites.

2.5.7 Illegal Sale of Properties

This is of concern to the Department of Housing as beneficiaries have disposed of their properties for nominal amounts and in doing so, placed themselves again in a position of need. As a preventative measure, the pre-emptive right clause has been reintroduced by way of legislation (Provincial Housing Amendment Act, Act 8 of 2000. Again the Department will have, through its capacity building programmes, assist municipalities in educating their homeless residents about the dangers of this practice.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 23 of 109 2.5.8 Consumer Protection

The Housing Consumers Protection Measures Act, No 95 of 1998, effected the conversion of the self regulatory National Home Builders Registration Council (NHBRC) into a statutory body. This Act came into operation on 1 June 1999.

The aim of this process is to extend protection to owners of new homes built by registered homebuilders. The Act increases the powers and jurisdiction of the NHBRC by making it a statutory body. Its primary mandate is to regulate the activities of practitioners who are involved in the business of homebuilding so that over time, quality standards in South Africa’s homebuilding sector improve.

The Provincial Department of Housing aims to ensure that quality standards in South Africa’s home building sector improve.

2.5.9 Lack of Reliable Data on Housing Demand

The lack of reliable data in terms of housing backlogs across the Province is an issue of note as current data should be used as a basis to plan. However, the lack of data should not in any way hinder planning processes. For the sake of uniformity, data sources such as Statistics South Africa should be used as far as possible as it is considered the only credible statistical data source in South Africa. It is anticipated that the IDP process that is currently running as well as the population census exercise that has just been completed, will yield more reliable data for future planning which will assist in reviewing and updating related interventions.

2.5.10 Capacity to Maximise Housing Delivery

In order to maximise housing delivery and ensure that budget projections are adhered to, it is considered vital for human resource capacity within the spheres of provincial and local government be bolstered. Land-legal, project management and facilitation capacity is also considered pivotal to the delivery of housing.

2.5.11 Viability of the Savings Scheme

The Department is currently encouraging housing beneficiaries to save in order to improve on the quality and size of the product they receive. The viability of this approach needs to be looked at against the background of rampant unemployment in the country. There is therefore a need for economic conditions to improve as this will impact positively on the ability of the prospective housing beneficiaries to save, which could yield positive results for savings scheme to be implemented.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 24 of 109 2.5.12 Need for Integration of Low Cost Housing

The general perception from communities in especially in big towns and cities is that low cost housing development ought not to take place in peripheral locations and ought to be integrated with existing, established settlements and mainstream development.

The supporters of peripheralisation argue that low cost housing negatively affects property values of the neighbouring up-market properties. The Province needs to take a bold step to support municipalities in their effort to educate their “elite” residents, who view low cost housing as something that has to be kept as far away as possible to up-market residential areas and the planning and infrastructure challenges relate to how such integration may be achieved.

2.6 Goal

To facilitate the creation of an enabling environment for housing delivery in the KwaZulu-Natal Province by ensuring that integrated and sustainable housing development takes place while providing shelter for all the homeless citizens of the Province

2.7 Strategic Objectives

In order to achieve the above strategy, the KwaZulu-Natal Department of Housing has identified the following objectives:

™ To finalise existing housing projects ™ To extend rural / urban housing development ™ To rehabilitate slums and upgrade/ relocate informal settlements ™ To undertake hostel redevelopment programmes ™ To move into rental housing ™ To continue with special projects e.g. Aids Projects & Human Settlement ™ Redevelopment Projects ™ To administer and finalise old business ™ To develop capacity building and empowerment programmes to address skills gaps ™ To forge strategic partnerships with key role players in housing sector

2.8 Ke y Result Areas

The Department has identified the following Key Result Areas:

2.8.1 Efficiently management of all housing projects by determining the:

‰‰‰ Number of housing projects closed out within twelve months of project completion; ‰‰‰ Number of properties transferred (in terms of old business)

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 25 of 109

2.8.2 To extend to rural/ urban housing development

2.8.3 Clearing up of slums in towns and cities, this can be measured in terms of:

‰‰‰ Number of slums projects approved per financial year ‰‰‰ Number of subsidies approved per financial year ‰‰‰ Number of subsidies finalized per financial year

2.8.4 Development of new urban/ rural housing projects per financial year, which can be measured by:

‰‰‰ Number of subsidies approved per subsidy instrument; ‰‰‰ Number of sites serviced; and ‰‰‰ Number of sites transferred ‰‰‰ Number of top structures built ‰‰‰ Percentage of budget spent.

2.8.5 Development of capacity building and empowerment programmes per financial year to be measured by:

‰‰‰ Number of capacity building programmes organized; ‰‰‰ Number of participants in each programme; ‰‰‰ Number of previously disadvantaged individuals/institutions and emerging contractors ‰‰‰ awarded contracts by the Department; ‰‰‰ Number of jobs created ‰‰‰ Number of communities trained. ‰‰‰ Number of municipalities capacitated.

2.8.6 Interaction and consultation with key role players in housing sector

‰‰‰ Number of consultative meetings/workshops held with stakeholders; and ‰‰‰ Number of joint ventures/partnership agreements initiated and finalized.

2.9 St ra tegies

The strategies that will be employed by the Department of Housing to achieve its stated goals are linked to the priority housing issues and objectives as mentioned in the Strategic Planning Process Template. The strategies are broadly stated hereunder but more details can be found in the Strategic Planning Process Template.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 26 of 109 2.10 The National Housing Code

The National Housing Code sets out the Housing Policy for South Africa and contains the overall vision for Housing in South Africa and the way in which the vision should be implemented. Seven (7) strategies have been identified in the Housing Code. These strategies are integral to the housing policy:

● Stabilising the housing environment in order to ensure maximum benefit of State housing expenditure and facilitate the mobilisation of private sector investment. ● Mobilising housing credit and private savings (whether by individuals or collectively) at scale, on a sustainable basis and simultaneously ensuring adequate protection for consumers. ● Providing subsidy assistance to disadvantaged households to assist them to gain access to housing. ● Supporting the people’s housing process entailing a support programme to assist people who wish to build or organise the building of their homes themselves. ● Rationalising institutional capacities in the housing sector within a sustainable long term institutional framework. ● Facilitating speedy release and servicing of land. ● Co-ordinating and integrating public sector investment and intervention on a multi- functional basis.

In line with these strategies; the government has set up various mechanisms that are aimed at ensuring that the housing of the country is implemented.

In addition to the above, other legal related issues will also be investigated at this stage, i.e. municipal powers and functions in the housing development process as well as tenure constraints on development.

The Subsidy Scheme:

The subsidy scheme offers a lump sum ‘capital subsidies’ to those lower income households that earn less than R3 500 per month. These subsidies are designed to accommodate social demands, the enormous existing backlogs and fiscal constraints. In addition, they also aim to minimize housing and financial sector market distortions. The subsidy provided is determined by the applicant’s income. There are eight different subsidy forms, as defined by the Department of Housing:

Institutional Subsidies: available to qualifying institutions to enable them to create affordable housing stock for persons who qualify for housing subsidies

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 27 of 109 Consolidation Subsidies: designed to afford previous beneficiaries of serviced stands, financed by the previous housing dispensation [including the Independent Development Trust's site and service schemes], the opportunity to acquire houses.

Rural Subsidies: available to beneficiaries who only enjoy functional tenure rights to the land they occupy - this land belongs to the State and is governed by traditional authorities. People’s Housing Process (PHP): aims to support households who wish to enhance their housing subsidies by building or arranging the building of their own homes themselves.

Emergency Programme: aims to assist people in crisis or desperate situations. Additional subsidy amounts are also available for people with walking or hearing disabilities and these subsidies would enable modifications to be done to their houses.

Informal Settlement Upgrading Programme: shacks in informal settlements get demolished and replaced by RDP houses.

Fast Tracking Programme: aims to fast-track projects that might be hindered by inter- departmental processes.

Public Sector Hostels Redevelopment Programme: aims to make state hostel more family- friendly; now a worker’s whole family can stay with him in an upgraded family hostel unit.

2.11 Priority Housing Issues and Strategies

The following programmes tabulated hereunder are deemed to be applicable to the Mpofana Municipality viz. the Slum Clearance/Informal Settlement Upgrade Programme, the Rural Housing Programme and the Hostel Redevelopment Programme, the rationale for this assertion is premised on Provincial Minister of Housing having identified 9 priority programmes for the Department for the 2005/2006 financial year.

Table 1: Priority Housing Issues and Strategies PRIORITY HOUSING ISSUES STRATEGIES 1 Finalisation of Existing Housing Projects • Speed up close out of projects and signing of Subsidy Agreements • Strengthen capacity to deal with land legal problems

2.Removal of slums / informal settlements • Accelerate provision of funding for slum clearance projects • Identify well located land for relocation of slums

3. Extension of rural / new urban housing • Increase proportion of budget for rural housing development development

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 28 of 109 • Further promote the Peoples Housing Process • Identify well located land for new urban housing projects to ensure sustainability

4. Hostel Redevelopment Programs • Ensure participation of hostel communities in redevelopment programs • Ensure empowerment and capacity building of hostel communities • Develop plans for the conversion of hostels into family units

5. Rental Housing • Support and monitor institutions set up to manage institutional housing • Support rental housing projects on well located land using the institutional subsidy

6. Special Projects • Continue to identify and implement special projects especially around the Aids pandemic

7. Resettlement Programs • Provide adequate funding for these programmes and facilitate the speedy release of land for Greenfield projects to resettle excess families from hostel redevelopment and slum clearance projects

8. Finalisation of Old Business • To continue to market the Extended Benefit Scheme • Expedite the upgrading / sale of flats • Continue to engage with municipalities on the transfer of assets

9. Implementation of Capacity Building • Continue with programs to address skills gaps Programs and identify staff for specific training in accordance with current functions • Identify relevant training courses / seminars up to date with latest technologies

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 29 of 109 3. SETTLEMENT PATTERNS ANALYSIS4

This section provides a brief analysis of the settlements that exist within the Municipality Area. The spatial context was divided into three forms. i.e. urban areas, traditional authority areas and farmlands. The settlements pattern analysis could be explained as follows:

Urban Areas: relatively higher densities (which include flats, duplexes and cluster houses etc.), upper income housing, middle-income housing, low cost housing, traditional settlements and informal settlements.

Traditional Authority Areas: traditional settlements, transitional residential and informal settlements which are predominantly dispersed rural settlements. Farmlands (commercial agricultural areas): rural farming households, transitional residential and informal settlements which are predominantly agricultural.

The Mpofana Local Municipality comprises of the urban areas (i.e. Mooi River and Rosetta) and it is largely surrounded by the farmlands. The settlements that exist within this local municipality can be classified as follows:

3.1 Urban Areas

Most upper income settlements are located within the towns of Mooi River and Rosetta. Middle income/affordable housing also exists in both of these urban areas with low cost housing are located within Bruntville, adjacent Mooi River

3.2 Farmlands

Due to the nature of settlement, a substantial amount of the population resides on farms. Some Upper income housing exists within the farmlands, in the form of small holdings (and not exactly as settlements). Most traditional settlements exist on the eastern side of the Mpofana Local Municipal area.

The settlement pattern within the Mpofana Local Municipality has not undergone major changes (especially in the urban areas). In farmlands there appear to be no major changes in settlement patterns, nevertheless new settlement trends may diversify the existing patterns which include the agri-village housing project proposal (i.e. in Middelrus) and low-cost housing within the commercial farms e.g. Vrystaat Housing Project.

4 Land Assessment for Housing Development Study: 2nd Draft Analysis Report 2005 MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 30 of 109 4. SECTION 3: CURRENT HOUSING DEMAND WITHIN THE MUNICIPAL AREA

4.1 Local Context

Mpofana is located approximately 40km west of Pietermaritzburg and falls within the uMgungundlovu District in the Midlands area of KwaZulu-Natal. It is bounded by three municipalities, namely, Umtshezi in the north, uMngeni in the south, uMshwathi in the east, and Mbabazane in the west.

The estimated population according to statistical data from census 2001 was 36 820, However a Community Survey, 2007 Basic Results for Municipalities – Statistical release depict a significant decrease in population figures in a six year period with a population estimate of 31 518. (Refer to table 4 below).

The erstwhile Mooi River TLC including the areas of Bruntville and Rosetta serves as the primary administrative, economic / commercial and social hub of the Municipal context. The peripheral areas included in Mpofana during the delimitation of new municipal boundary are rural in nature and sparsely populated and the predominant land use is agriculture.

The Mpofana Municipal boundary covers an area of approximately 181 000 hectares. The N3 National Route linking Durban and Gauteng stretches through the municipal area. Mpofana benefits from its strategic location, which has easy access to rail, and road infrastructure.

The road network linking Mpofana to the outlying Drakensberg areas provides the municipality with a competitive advantage in terms of tourism. In Mpofana Municipality, there are a number of small towns that are relatively highly developed. The electrified railway line from Durban to Johannesburg passes through Mooi River, which is the Municipality’s administrative centre.

The town is situated in an area mostly devoted to cattle, dairy and stud farming, and the growing of potatoes and cash crops. The town has one of the largest textile mills in the country, holds monthly Farmers Association stock sales, and is a popular destination for holidaymakers.

However, Mpofana Municipality is an emerging and growing Municipal entity of which large parts, especially the rural areas, are severely underdeveloped. The Municipality therefore has many challenges ahead of it.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 31 of 109 Figure 2: Mpofana Local Municipality (KZ 223)

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 32 of 109 4.2 Demographic Context

Mpofana Municipality is divided into four wards which covers an area of approximately 181 000 hectares and these are:

Ward 1 (Mooi River) can be described as primarily a formal urban area with denser development Ward 2 is made up of a town area (Rosetta) and peripheral rural settlements (Dabulamanzi, Kamberg and Tendele) Ward 3 is predominantly made up of urban area Bruntville and Ward 4 is predominantly rural in nature and consists of areas such as Rietvlei, Middelrus and parts of Muden (See Appendix A) for the Ward Demarcation Map)

4.2.1 Population and Household Profile

Table 2: Population Grouping Population African Coloured Asian White Total Group Census 1996 20 932 206 720 2 936 24 794 Census 2001 33 184 213 797 2 662 36 820

Table 3: Population Grouping by Percentage Population African Coloured Asian White Group Census 1996 84.4% 0.83% 2.93% 11.84% Census 2001 90% 0.57% 2.2% 7.23%

The above charts depict the African population as being the overwhelming majority in the Mpofana municipal Area. Population figures per se are considered to be of relative rather than of absolute value. No two sources give the same population figures, especially in regard to African townships and settlements.

Table 4 provides the estimated population and households in Census 2001 and CS 2007. The figures reflect the changes that have occurred since 2001. The number of households in each municipality has been used to calculate the percentages that are presented throughout this report and subsequently utilised to profile the performance of the municipality

Table 4: (Community Survey, 2007 Basic Results Municipalities – Statistical release P0301.1) Estimated Population and Households in Census 2001and Community Survey (CS) 2007 Persons Households KZN 223: Mpofana Local Municipality Census 2001 CS2007 Census 2001 CS2007 36 820 31 518 9597 7801

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 33 of 109 The Community Survey depicts a decrease in population figures in a six year period. This could be attributed to various scenarios, e.g. immigration, high mortality rate as a consequence of contributory causes of poor health such as general lack of proper sanitation, low levels of health education and a high incidence of tuberculosis and HIV infection. The overall population therefore for the purposes of this report is 31 518.

Figure 3: Population Density

(http://www.demarcation.org.za/municprofiles2003/index.asp)

The graphic above seeks to demonstrate the spatial distribution of the total population within the municipal area. It is evident that the urban areas of Mooi River and Bruntville have the highest population densities.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 34 of 109 4.2.2 Gender Cohorts

Chart 1:

GENDER COHORTS GENDER COHORTS 19028, 19028, 52% 52%

17792, 17792, 48% 48%

Male Female Male Female

In terms of gender there appears to be marginally more males than females. The Census data states that the gender ratio is 98 males to 100 males. The average gender distribution is therefore 48% females and 52% males.

4.2.3 Gender by Age Chart 2:

AGE COHORTS AGE COHORTS 13% 2% 5% 13% 2% 5% 11% 11% 18% 18% 21% 21% 10% 5% 2% 13% 10% 5% 2% 13% Males - 0 to 4 Males - 5 to 14 Males - 15 to 34 Males - 0 to 4 Males - 5 to 14 Males - 15 to 34 Males - 35 to 64 Males - Over 65 Females - 0 to 4 Males - 35 to 64 Males - Over 65 Females - 0 to 4 Females - 5 to 14 Females - 15 to 34 Females - 35 to 64 Females - 5 to 14 Females - 15 to 34 Females - 35 to 64 Females - Over 65 Females - Over 65

The above chart illustrates a relatively youthful population. The majority of the population is between the ages 15 to 34 which constitutes 37% of the population.

Although this scenario might be considered favourable it does however present a considerable strain in respect of future demand for employment opportunities as well as additional infrastructural and social resources

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 35 of 109 Figure 4: Comparative Age Distribution per Ward

Age distribution in all wards favours children and young adult sectors of the population In wards 1, 2 and 4 children constitute more than 40% of each ward total population whilst 37% of ward 3 total population falls within the same category. The young adult (20-39 years) sector constitutes more than 20% of each ward population with ward 3 having 30%

4.3 Economics

The socio-economic characteristics of the population concerned constitute one of the most important elements to be considered in any planning and development process. The South African community is heterogeneous in nature and equally diverse in its aspirations and urban needs. It is therefore necessary to establish a socio-economic profile of the community in order to have a better understanding of the local situation. The purpose of this section therefore is to provide an analysis of the socio-economic and economic situation of Mpofana Local Municipality.

4.3.1 Employment Status

Chart 3:

EMPLOYMENT STATUS EMPLOYMENT STATUS

29% 29% 40% 40%

31% 31%

Employed Unemployed Not Economically Active Employed Unemployed Not Economically Active The current employment status reaffirms the need for economic regeneration with a 31% unemployment rate and

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 36 of 109 4.3.2 Highest Education Attained by Over 20 year Olds

Chart 4:

Highest Education Attained by Over 20 year Olds Highest Education Attained by Over 20 year Olds

5% 15% 5% 15% 26% 26%

25% 25% 22% 7% 22% 7% No Schooling Some Primary Complete Primary No Schooling Some Primary Complete Primary Secondary Grade 12 Higher Secondary Grade 12 Higher

The literacy rate of 5% (grade 12 and above) and the high unemployment rate could be ascribed to the lack of tertiary education and therefore the lack of reasonable skills/capacity to make a contribution to the economic generation of the area. This trend is further exacerbated by the high dependency ratio of 6 per individual. (Census 2001).

For the purposes of this report it is assumed that economically inactive population are viz, pre- school, School, not seeking work and pensioners. The high number of potentially economically active persons creates a growing labour pool.

The constant availability of labour is an essential element in economic growth, which is considered as being an important development opportunity for establishing a more balanced urban area and local economic base.

Furthermore the high unemployment rate has a direct impact on the affordability of municipal services and therefore adversely affects the Municipality’s cash flow situation. The high unemployment rate also suggests that economic growth and job creation must be considered as one of the key strategic issues for the Municipality5

The high levels of unemployment are possibly attributed to: the perpetuation of informal living conditions, little opportunity for self-improvement, low levels of social and physical mobility, social deviations in an effort to survive, the perpetuation of an unstable community comprising mass poverty and an increasing burden on the state to assist the impoverished sector of the community with state funds.

5 Mpofana IDP review Report 2007/08 MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 37 of 109

4.3.3 Annual Household Income

Chart 5:

ANNUAL HOUSHOLD INCOME

ANNUAL HOUSHOLD22% INCOME 22% 11% 11% 18% 18%

26% 11% 26% 11% 2% 4% 6% 4% 6% None R1 - 2%4800 R4801 - 9600 R9601None - 19200 R19201R1 - 4800 - 38400 R38401R4801 -- 768009600 R76801R9601 -- 15360019200 R153601R19201 -- 30720038400 R307201R38401 -- 61440076800 R614401R76801 -- 1228800153600 R1228801R153601 -- 2457600307200 OverR307201 R2457600 - 614400 R614401 - 1228800 R1228801 - 2457600 Over R2457600

Household income is an important aspect in any strategy involved in community development, because it is a major source for the generation of development capital. The total annual income per household is shown in the chart above.

Based on the data 26% of households do not receive any form of income whilst 51% of the population receive an annual income of in the region of R1 to R19 200 which is about R1 600 monthly income (just above the United Nations Poverty Datum Line of R1500). This scenario will determine the type of housing and level of services to deliver within the households’ affordability range.

4.3.4 Individual Monthly Income

Chart 6

INDIVIDUAL MONTHLY INCOME INDIVIDUAL MONTHLY INCOME 69% 69% 8% 8%

12% 12%

0% 5% 0% 0% 0% 5% 0% 2% 3% 0%0% 0% 1%2% 3% 0% 0% 1% None R1 - 400 R401 - 800 R801 - 1600 None R1 - 400 R401 - 800 R801 - 1600 R1601 - 3200 R3201 - 6400 R6401 - 12800 R12801 - 25600 R1601 - 3200 R3201 - 6400 R6401 - 12800 R12801 - 25600 R25601 - 51200 R51201 - 102400 R102401 - 204800 Over R204801 R25601 - 51200 R51201 - 102400 R102401 - 204800 Over R204801

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 38 of 109 Individual Monthly Income depicts 69% of individuals in the municipal area (i.e.35 552 people) receive no form of income whilst 28% have an income of less than R 3 200 per month.

4.3.5 Industry

Chart 7:

INDUSTRY INDUSTRY 4274, 44% 4274, 44%

1190, 13% 1292, 14% 1190, 13% 1292, 14% 441, 5% 351, 4% 441, 5% 351, 4% 34, 0% 287, 3% 34, 0% 287, 3%624, 7% 597, 6% 327, 3% 50, 1% 327, 3% 624, 7% 50, 1% 597, 6% Agriculture/Forestry/Fishing Community/Social/Personal ConstructionAgriculture/Forestry/Fishing Electricity/Gas/WaterCommunity/Social/Personal Financial/Insurance/RealConstruction Estate/Business ManufacturingElectricity/Gas/Water Mining/QuarryingFinancial/Insurance/Real Estate/Business OtherManufacturing PrivateMining/Quarrying Households Transport/Storage/CommunicationOther UndeterminedPrivate Households Wholesale/RetailTransport/Storage/Communication Undetermined Wholesale/Retail

Generally, most formal employment opportunities lie in the urban nodes and specifically in Mooi River, which is the primary administrative centre in the Municipality. The rural areas are characterised by low-income population having to survive on informal trading, subsistence agricultural production and in some instances spin off’s from tourism.

Mpofana Municipality has a diversified economy with reliance on a range of economic sectors, notably Community/Social/Personal and Wholesale/Retail which constitutes 14% and13% respectively.

4.4 Social Context

The current employment rate is believed to be around 50%, which implies that half of the Municipality’s population is not formally employed. This has consequences in that poverty is associated with effects on general health through a general lack of proper sanitation, low levels of health education and a high incidence of tuberculosis and HIV infection etc.

The general level of education in Mpofana is low with less than 80% of the Municipality’s inhabitants have completed matriculation, 20% of which have received no school education at all.

Although there are a number of schools distributed around the Municipality, most lack basic services and have high pupil-to-teacher ratios. There are no schools for children with special needs.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 39 of 109 There are some public sports facilities within the Municipality area which unfortunately are characterised as in poor condition. There are some good private facilities, for example those offered by the Mooi River Country Club, which has a golf course, bowling greens, and tennis and squash courts.

4.5 Infrastructural Context

The provision of services at both the rural and urban component of the municipality varies with urban areas enjoying better levels of services.

4.5.1 Source of Water

The tables below provide an indication of the types and levels of services that are available for the communities of the entire municipal area.

Chart 8:

SOURCESSOURCES OFOF WATERWATER

3022,3022, 30%30%

110,110, 1%1% 3775,3775, 39%39% 11,11, 0%0% 1185,1185, 12%12% 415, 4% 415, 4% 401,401, 4%4% 46,46, 0%0% 452,452, 5%5% 235,235, 2%2% 305,305, 3%3% PipedPiped waterwater insideinside dwellingdwelling PipedPiped waterwater insideinside yardyard PipedPiped water water onon communitycommunity stand:stand: distanacedistanace lessless than than 200m 200m fromfrom dwelling dwelling PipedPiped water water onon communitycommunity stand:stand: distanacedistanace greatergreater thanthan 200m200m from from dwellingdwelling BoreholeBorehole SpringSpring Rain-waterRain-water tanktank Dam/pool/stagnantDam/pool/stagnant waterwater River/streamRiver/stream WaterWater vendorvendor OtherOther The data depicts that 69% of the households already have water within their properties. Nevertheless, 22% of the households are dependant on untreated water, which presents a potential health hazard.

A large proportion of the population has in house access to water supply whilst the number of households receiving piped water within 200 metres is almost the same percentage.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 40 of 109 4.5.2 Sanitation

The Chart below illustrate that half the population does not have access to flushed latrines.

Chart 9:

SANITATION SANITATION 42% 42% 20% 20%

6% 6% 8% 18% 4% 2% 8% 18% 4% 2% Flush Toilet Flush septic tank ChemicalFlush Toilet toilet VIPFlush septic tank PitChemical latrine toilet BucketVIP latrine NonePit latrine Bucket latrine None

Figure 5: Percentage Households with "improved" Toilet Facilities, 2001: Mooi Mpofana [KZ223]

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 41 of 109

Table 5: Percentage of Households using pit Latrine, bucket and no toilet facility by Municipality: Census 2001 and CS 2007

Pit Latrines Bucket Toilet System No Toilet

KZN 223: Mpofana Census CS 2007 Census CS 2007 Census CS 2007 Local Municipality 2001 2001 2001

22,2 16,1 5,6 0,2 20,0 9,0

Source: (Community Survey, 2007 Basic Results Municipalities – Statistical release P0301.1)

4.5.3 Dominant Energy Source for Lighting

Chart 10:

Sources of Energy for Lighting Sources of Energy for Lighting

33, 0% 33, 0% 4297, 46, 0% 4297, 46, 0% 45% 45%

5124, 5124, 67, 1% 54% 67, 1% 54%

29, 0% 29, 0%

Electricity Gas Paraffin Candles Solar Other Electricity Gas Paraffin Candles Solar Other

The predominant sources of lighting are electricity (54%) and candles (45%). Other sources include paraffin, solar and other forms of lighting.

Table 6: Type of energy for Heating, Cooking and Lighting: Census 2001 and CS 2007 Municipality Lighting Cooking Heating KZN 223: Census CS Census CS Census CS Mpofana Local 2001 2007 2001 2007 2001 2007 Municipality 53,4 71,9 35,6 55,9 32,6 46,7 Source: (Community Survey, 2007 Basic Results Municipalities – Statistical release P0301.1)

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 42 of 109

4.5.4 Modes of Travel to Work or School

Chart 11:

MODES OF TRAVEL TO WORK OR SCHOOL MODES OF TRAVEL TO WORK OR SCHOOL 13973, 38% 13973, 38% 134, 0% 134, 0% 340, 1% 340, 1% 512, 1% 512, 1% 17896, 49% 1033, 3% 17896, 49% 1033, 3% 1839, 5% 51, 0% 1839, 5% 51, 0% 936, 3% 107, 0% 936, 3% 107, 0% Bicycle Bus Car Driver Car Passenger Bicycle Bus Car Driver Car Passenger Minibus/Taxi Motorcycle Train NA FootMinibus/Taxi OtherMotorcycle Train NA Foot Other It is quite a large proportion (87%) of people do not have access to any form of mode of travel. The remainder makes use of other modes of travel as depicted above.

The above-mentioned could be ascribed to the sparsely populated rural nature of the Municipal area as well as severely topographical conditions coupled with inadequate maintenance of existing roads, particularly in the rural periphery.

This has implications for the delivery of future housing – which should be located in close proximity to existing work opportunities and education facilities.

The implications for housing in relation to the abovementioned demographic profile in the Mpofana Local Municipal Area are as follows:

‰‰‰ The highest population densities are in the urban areas where the numerical demand for housing is likely to be the highest.

‰‰‰ Average household size is a relatively low with the majority of wards recording a less than five persons per household in the region (80%), possibly an indication of the degree to which a major portion of the housing backlog has been addressed to date in the urban areas of the municipal area.

‰‰‰ 40% of the labour force is employed which has serious implications for the sustainability of housing projects into the future and the ability of household heads to pay for municipal rates and services.

‰‰‰ There is an extremely high proportion of individuals in the municipal area who have low monthly income levels of R1600 (94% of individuals), 69% of which do not receive any form

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 43 of 109 of income. This, accompanied by a high proportion of households who fall into the low annual income bracket of R76 800 (i.e. 94% of households), again emphasizing the inability of households to afford municipal services.

‰‰‰ 15% of persons have some form of disability. Their special needs will need to be taken into consideration undertaking housing projects in future.

‰‰‰ Some 69% of households live in a dwelling comprising four rooms or less. Support needs to be provided to enable households to upgrade and extend their existing houses.

‰‰‰ Almost all residents of the Municipal area (99%) are South African decent citizens.

4.6 Demand for Housing

In order to quantify the demand for housing, agreement has to be reached on what is considered to be a housing backlog. There are differing opinions in this regard. One of the schools of though articulates that a ratio of more than 5 people per household is considered overcrowding and indicative of a backlog.

Other sources are of the opinion that any housing structure that is not formal (constructed of brick and mortar) is a backlog.

The Constitution of South African details the right of access to adequate housing when considering backlogs. The following criteria are used to clarify what adequate housing means:

‰ Legal security of tenure: Is fundamental to the right of access to adequate housing and protects people against arbitrary evictions, harassment and other threats. ‰ Affordability: The amount a person or family pays for housing should not compromise the attainment of other basic needs. ‰ Availability of services, materials, facilities and infrastructure: An adequate house contains facilities essential for health, security, comfort and nutrition. ‰ Habitability: Inhabitants must be ensured adequate space and protection against the weather and disease. ‰ Accessibility: Disadvantaged groups should be assured some degree of priority consideration in housing. ‰ Location: Adequate housing must be situated so as to facilitate access to employment opportunities, health care services, schools and other social facilities. ‰ Cultural adequacy: Building materials and design must enable the expression of cultural identity and diversity without compromising modern technological facilities.

As an alternative to the housing waiting list prepared for Municipalities, a census base was opted as more scientific and reliable to ascertain the demand for housing.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 44 of 109 The information contained hereunder was derived from the Demarcation Board website with regard to household occupancy levels, dwelling types and annual household income. It should be noted that the data that is used is already five years old; a full census will only be implemented in 2011.

The following figures show per ward, the household densities and annual household income. This will be used to determine the demand for housing based on overcrowding and eligibility for housing subsidies. It should be noted that for households to qualify for subsidy of some sort it needs to have a monthly household income of less than R7000 per month or R84 000 per annum.

Table 7: Ward 1 No of households: 2 588 Household Size: 1-5 pp/household = 2274 (88%) 5 pp/household = 314 (12%) Annually Household Income: R0-R76 800 = 2366 (91%) ≥ R76 800 = 25 (9%)

Table 8: Ward 2 No of households: 3 967 Household Size: 1-5 pp/household = 3156 (80%) ≥5 pp/household = 811 (20%) Annually Household Income: R0-R76 800 = 3628(91%) ≥ R76 800 = 339 (9%)

Table 9: Ward 3 No of households: 1 920 Household Size: 1-5 pp/household = 1580 (82%) ≥5 pp/household = 340 (18%) Annually Household Income: R0-R76 800 = 1831 (95%) ≥ R76 800 = 90 (5%)

Table 10: Ward 4 No of households: 2 018 Household Size: 1-5 pp/household = 1370 (67%) ≥5 pp/household = 468 (33%) Annually Household Income: R0-R76 800 = 1964 (97%) ≥ R76 800 = 56 (3%)

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 45 of 109

In the case of the Mpofana Municipality, the calculation of housing demand is not straightforward exercise. As noted previously, housing demand can be determined using different criteria which will ultimately result in different findings. This is demonstrated below:

‰‰‰ Household Size: Some 1933 households (or 18% of the total number of households) have ≥ 5 pp/household;

‰‰‰ Income per Annum: some 8789 households (or 84% of the total number of households) earn between R0 and R76 800 per annum.

‰‰‰ Informal Dwellings: Some 2641 households (or 27.5% of the total number of households) are housed in traditional dwellings.

Based on the housing subsidy provisions in terms of the South African Housing Subsidy Scheme, one of the key determinants for subsidy qualification is persons earning less than R3500 per month, not owning a property and not having previously received a subsidy. On this basis, it is concluded that there are possibly 8789 households eligible for subsidies.

The following tables depict the different housing typologies per ward in the study area as per the 2001 census.

Table 11: Ward 1 Households 1996 2001 % change Formal 766 2328 203.92 Informal 29 126 334.48 Traditional 48 72 20.00 Other 3 0 -100.00 Total households 877 2526 188.3

Table 12: Ward 2 Households 1996 2001 % change Formal 1087 1986 82.70 Informal 47 36 -23.40 Traditional 193 546 182.90 Other 1 30 2,900.00 Total households 1087 1986 82.70

Table 13: Ward 3 Households 1996 2001 % change Formal 645 1380 113.95 Informal 25 0 -100.00 Traditional 5 21 320.00 Other 0 3 - Total households 697 1404 101.43

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 46 of 109

Table 14: Ward 4 Households 1996 2001 % change Formal 557 1179 111.67 Informal 8 96 1,100.00 Traditional 1004 1743 73.61 Other 14 54 285.71 Total households 1597 3072 92.36

Table 15: Urban and Rural Households (Census 2001) No. of Urban No. of Rural Total No. of Households Households Households 4036 5561 9597

Table 16: Dwelling Type by Municipality Households 1996 2001 Formal 3055 6870 Informal 109 258 Traditional 1250 2383 Other 18 86 Total households 4432 9597

Chart 12: Dwelling Type % by Municipality DWELLING TYPE DWELLING TYPE 2383, 2383, 86, 1% 25% 86, 1% 25%

258, 258, 3% 3% 6870, 6870, 71% 71% Formal Informal Traditional Other Formal Informal Traditional Other

There are a total of 9597 households in Mpofana Municipal Area, 29% of which predominantly reside in either informal, traditional other forms of housing/structures. The chart above depicts that 71% of households have access to formal housing structures.

Table 17: Percent of Households Living in Formal and Informal Dwellings by Municipality: Census 2001 and CS 2007 Municipality Formal Informal Census 2001 CS 2007 Census 2001 CS 2007 KZN 223: Mpofana Local Municipality 71,6 65,6 2,7 1,0 Source: (Community Survey, 2007 Basic Results Municipalities – Statistical release P0301.1)

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 47 of 109 Chart 13:

HOUSEHOLDS BY DWELLING TYPE House or brick structure on a HOUSEHOLDS BY DWELLING TYPE separateHouse or stand brick or structure yard on a Traditionalseparate dwelling/hut/structurestand or yard madeTraditional of traditional dwelling/hut/structure materials made of traditional materials 59% Flat in blocks of flats 59% Flat in blocks of flats Town/cluster/semi=detached houseTown/cluster/semi=detached (simplex; duplex; triplex) House/flat/roomhouse (simplex; in duplex; back yard triplex) House/flat/room in back yard 23% Informal dwelling/shack in back 23% yardInformal dwelling/shack in back yard 1% Informal dwelling/shack NOT in 1% backInformal yard dwelling/shack NOT in back yard 0% Room/flatlet not in back yard but 0% onRoom/flatlet shared property not in back yard but 9% 2% Caravanon shared or tent property 9% 2% Caravan or tent 0% 1% 0% 1% 2% 2% 1% Private ship/boat 1% 2% 2% Private ship/boat Not applicable (institution) Not applicable (institution)

4.6.1 Tenure Status by Municipality

Table18: Percentage Distribution of Households by Tenure Status and Municipality: Census 2001 and CS 2007 Municipality Census 2001 CS 2007 Owned Owned Rented Occupied Total Owned Owned Rented Occupie Other Total KZN 223 Mpofana and Full but yet Rent- and but not d Local Municipality Paid Off Paid Off Free Fully yet Paid Paid Off Off Percentage 35,4 6,6 18,2 39,9 100,00 47,2 7,5 18,1 25,2 2,0 100,00 Source: (Community Survey, 2007 Basic Results Municipalities – Statistical Release P0301.1

The table above seeks to demonstrate comparative household tenure status within Mpofana Local Municipality from 2001 to 2007. To this end the following can be deduced.

‰‰‰ The percentage of households who enjoy a real right in respect of ownership has increased by 11,8 from 2001 to 2007.

‰‰‰ The number of households with partial ownership i.e. owned but not yet paid off has had a marginal increase in the similar timeframe (0,9%).

‰‰‰ A number of households renting has remained relatively constant over the past six years. The implications thereof are as follows;

OOO The need for the Municipality to consider a Rental Housing Programme to ensure the diversification of housing options to meet the various needs of the department’s clients. MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 48 of 109

OOO This could be done through the acceleration of the Rental Housing Programme. This programme, which caters for mobile people who are in urban areas for work related reasons, will complement the Slums Clearance Programme.

OOO The department will also need to engage the private sector, especially the banking sector, to partner in the service of housing delivery by providing loans for people in the lower income group to acquire rental units.

‰‰‰ Households who enjoy limited real right entitlement to reside i.e. occupied rent-free are depicted in the table above to constitute 40% of the total number of households. This could be attributed to the current land tenure status within the Municipal area, furthermore the municipal area is predominantly rural in nature, and hence most households occupy land that is held in communal ownership where no rent is required.

4.6.2 Rural Housing

The tables above demonstrate a dual demographic structure which has likely informed the spatial organisation of the Municipality’s Spatial Development Framework. The predominant ward in terms of households residing in Traditional housing is Ward 4 constituting 1743(73%) followed by Ward 2 consisting of 546 (23%). (Refer to Settlement Plan and Population Distribution Plan attached hereto as AppendixA)

These areas are characterized by the low level of basic services and are relatively far removed from the major employment centres. These areas have a low level of employment hence a high level of poverty.

The remainder of Wards constitutes less that 4% and that could be attributed to the formal nature of the respective settlements as Ward 1 and 2 are primarily formal urban areas with denser developments with a more established settlement structure, hence given the primary nodal status in the Municipal area’s Spatial Development Framework.

The obvious deduction in relation to housing need based on housing types is that Ward 4 and Ward 2 respectively, should be given priority in terms of rural housing provision.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 49 of 109 4.6.3 Slums clearance of Informal Dwellings

Informal and backyard shack statistics provides an indication of the number of informal dwellings and therefore the requirement for slums clearance type projects. The tables above summarises the number of informal dwellings in the Mpofana area.

The predominant number of informal dwellings are to be found in ward 1 constituting 126 (49%), a significant 334.48% increase within a six year period followed by ward 4 and 2 with 96 (37%) and 36 (14%) respectively. According to available statistical data no informal dwellings were recorded in Ward 3 which is predominantly made up of an urban area of Bruntville.

The above statistical data could be ascribed to the following:

ƒ Ward1 (Mooi River) is given the Primary Nodal status in the Municipal Spatial Framework and described as primarily a formal urban area with denser development. It is therefore on that basis that the assumption is made that the trend is the inclination is for people to move to the urban area to seek employment opportunities. ƒ Ward 2 is made up of a town of Rosetta and peripheral rural settlements i.e. Dubulamanzi, Kamberg and Tendele. ƒ Ward 3 is predominantly made up of urban area Bruntville, and ƒ Ward 4 is predominantly rural in nature and consist of areas such Ritvlei, Middelrus and parts of Muden.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 50 of 109 4.6.4 Project Linked Subsidies

The Table below shows that only one project has been approved by the KZN Department of Housing in respect of Project Linked Subsidies (PLS) i.e. Craigeburn. Other projects submitted by the Mpofana Municipality to the Department, have a conditional approval and the remainder are in the stage of preparation.

Table 19: Project Linked Subsidies as per KZNDoH

INLAND REGIONAL OFFICE

MPOFANA MUNICIPALITY

Name of Ref. No. Date of Instrument Total Value of No. of Annual Projected Cashflow Project Initial Project Subsidies Approval 2007/08 2008/09 2009/10 2010/11

CURRENT Craigeburn K04090006 21/5/2007 PLS R 46,729,600 850 R 0 R 7,664,645 R 8,342,576 R 8,926,556 TOTAL R 46,729,600 850 R 0 R 7,664,645 R 8,342,576 R 8,926,556 CONDITIONAL

Phumlas K04080009 22/11/2007 PLS R 25,382,546 400 R 0 R 6,844,576 R 8,926,556 R 9,551,414 Vrystaat Farm K05050004 22/11/2007 PLS R 6,148,400. 100 R 0 R 3,796,750 R 2,231,650 R 0 Sierra Ranch 2007/06/12 PLS R 7,041,060. 120 R 0 R 3,796,750 R 3,124,310 R 0 TOTAL R 13,189,460. 620 R 0 R 14,438,076 R 14,282,516 R 9,551,414 PREPARATION

Bruntville Hostel PLS slum R 6,234,400 100 R 0 R 1,711,100 R 4,633,300 R 0 Beth Shemite K05120001 Institutional R 7,509,292 120 R 0 R 2,033,332 R 5,355,960 R 0 Aids Orphan

TOTAL R 13,743,692 220 R 0.00 R 3,744,432 R 9,989,260. R 0.00 Source: (Mr T. Chetty: KZN Department of Housing, 30 January 2008)

Of the projects that are currently underway, the Mpofana Local Municipality has no completed housing projects; however, table 14 above seeks to provide details in relation to the current approved Project Linked Subsidies (PLS) amount to a total of 1690 subsidies are to be rolled out in the next 4 years.

The table below details other housing related projects that are in the planning phases in liaison with the Department of Housing to achieve alignment with the Department’s Breaking New Ground Strategy with the view to fulfil the Municipality’s mandate from its constituency to:

‰ provide access to basic housing, ‰ facilitate removal of slums and informal settlement, ‰ ensure finalization of existing housing projects, and

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 51 of 109 ‰ ensure extension of housing to rural areas.

Table 20: Mpofana Housing Projects in Planning Phases

Source: (Mpofana IDP Review Report 07/08)

Table 21: Housing Projects submitted to KZN Department of Housing (Linked to Section 7, pg76-77) APPROVED(Active) PROJECTS: (signed by NO. OF UNITS MEC) 1. Craigeburn Housing Project 850 Total 850

PLANNED PROJECTS 1. Phumlas (In-Situ upgrade 400 2. Vrystaat Farm Housing: Doornkloof (8.8ha) 100 Refer to Appendix E 3. Sierra Ranch Housing Project 120 (Refer to Appendix F) 4. Townview (Re-habilitation) 1 423 5. Gamewood Housing Development 300 6. Bruntville Hostel Conversion 100 (Refer to Appendix G) 7. Beth Shemite Aids Orphanage 120 8. Rosetta Housing Project 120 9. Tendele Housing Project 250 Refer to Appendix H (Land Audit Report) 10. Highover Housing Project 40 Total 2973 Source: (Mr R. Pandara KZN Department of Housing 05 March 2008) MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 52 of 109

4.6.5 Existing Land Reform Projects

A number of land reform projects have been previously initiated in the Mpofana Municipality. To date a number of these projects have not been finalised leaving the people settled in these areas without access to basic services. According to DLA funding has been allocated for these projects, but the location and progress in spending the funding is not known.

The projects referred to are hereunder tabulated as follows:

Table 22: Existing Land Reform Projects Name of Project Number of Households Corriesrus 14 Springfield 13 Onverwagt 46 Goudina 25 Bellevue 49 Middelrus Share Equity 25 Waterfall View 42 Highover Estate 59 Total 273 Source: (Devplan.kzntl.gov.za/Municipal/IDPs/ Mpofana final project list)

The following table seeks to demonstrate land availability in relation to Land Reform Projects.

Table 23: Existing Land Reform Projects and Land Availability Project Name Property Description Hectares Beneficiaries

Highover Estate Portion 4 of the farm Effort No 2 no 5452 57.1436 33

Doornkloof/ Middelrus Remainder of Portion 9 of 4 and Portion 1 of the farm 236.6904 28 Doornkloof no 1318

Rocky Drift Portion 9 of the farm Winterhoek no 986,Portion 1 & 4753.0054 232 Remainder of the Farm Tevrede no 13537,Portion 2 of the farm Scheepers Hoek no 2116, Portion 1 of the farm Elsdale no 2198, the farm Erskine no 2200, Portion 1 & Remainder of Lot H Muden no 13588, Farm Burgers no 16071,Remainder of Portion 1 and remainder of the farm Shenfield Common no 2203

Springfield Stud Portion 6 of the farm Luton no 12289 20.7985 13

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 53 of 109

Thulisa Community Portion 2 of 1 of the farm Waterfall View 337.5435 42

Balmoral/Onverwagt Portion 7& 9( OF 1) of the farm Balmoral no 13347 192.0371 46

Bloemendal Portion 15 (of 12) of the farm Bloemendal no 1144 144.3599 43

Goudina/ Brandvlei Remainder of Portion 7 (of 1) and Portion 8(of 7) of the 559.2173 93 farm Goudina no 1373

Goudina Portion 10 & remainder of the farm Goudina no 1373 861.0940 84

Goudina/Masithuthuke Portion 2 (of 1) of Goudina no 1373 335.4138 25

Aarocha Remainder of Portion 1 of the farm Shandon no 14004 361.6933 1

Waterval Remainder of Portion 10 of the farm Ripley no 2211 397.2880 40

Oakwood Portion 1 and Portion 8 of the Farm Barkston Ash no 388.6309 30 15533 and remainder of Portion 14 of farm Ripley no 2211 Waterval UYS The Farm Waterval no 18006 345.1401 44

Rensburg Remainder of Portion 1 and remainder of portion 2 (of1) of 694.3754 47 the Farm Rensburg no 1022 and remainder of portion 3 of the farm Middleburg no 1989

Hallmark Remainder of the Farm Rondebosch no 2167 184.2327 87

Source: (Sizile Mthalane: Department of Land Affairs – Inland Region)

4.6.6 Housing need

A more differentiated indicator of the need for housing was constructed to create a better understanding of different kinds of need for housing that will enable more focussed investment responses.

Housing need can be defined as the need for development of housing based on existing spatial patterns of need for housing (the lowest monthly household income groups) and indicators of population trends that could influence these localities of existing housing need. The final aggregated index of housing need is calculated using several spatial analysis procedures in a model that incorporates the indicators of existing housing need and population trends.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 54 of 109 Figure 6: Components of housing need

Source: (www.housing.gov.za/documents/doc.htm

4.6.7 Summary of Housing Need Indicators

The purpose of this template is to establish a comparative picture of housing need in terms of backlog, housing eligibility and urban-rural ratio situation within the Municipality, which will influence the allocation of housing funds to the Municipality, through the housing need indicators:

Table 24: Housing Need Template SUMMARY OF HOUSING NEED INDICATORS

Ref. Indicator Measure Score 1. Level of overcrowding Average household size 4

2. Physical adequacy of Number of existing inadequate dwellings 2641 (27.5%) existing dwelling Short term population Average annual population growth 3. growth trends rate1996-2001 11.17

Eligible household Number of processed housing subsidy 4. applications applications 1690

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 55 of 109 Supply of subsidized Number of houses under construction or 5. housing completed N/A

Constitutional eligibility Number of households earning < R3 500 6. 51%

Degree of urbanisation Urban/Rural population 7. 1:2

The estimated demand for the entire municipal area, as advised by Mr Theo Chetty from the Department of Housing (Coastal Region) was calculated as follows:

‰‰‰ 8789 households less (1690+1423) 5676 households. The yield of the Townview Rehabilitation Project (1423 subsidies) were deducted for the backlog.

In summary, for the purposes of this report, it is proposed that, whilst it is acknowledged that 9597 households are eligible for a housing subsidy, the number of households that are housed in informal and traditional dwellings be considered as the target demand for housing for the next 5 years, namely 4253 households.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 56 of 109 5. SECTION 5: LAND INVESTIGATION FOR HOUSING

5.1 The Negative Mapping Process6

Negative mapping ;is a process which is undertaken in a Geographical Information System (GIS) or computer mapping package, whereby areas within the study area are assessed in terms of their applicability for development, in this instance for housing. Areas identified as unsuitable are demarcated or `blocked out’, resulting in the formation of `window area’ or large areas within which potentially suitable land parcels may be identified.

The results of the negative mapping process is dependent on the availability and accuracy of digital data for the study area and the negative mapping should be considered a dynamic process which is refined throughout the project, as more detailed and accurate information becomes available. However, the initial negative mapping is a useful tool in order to focus investigations, especially in a project of his nature where the study area is very large.

The negative mapping is based on suitability criteria, which have been formulated for the assessment of land parcels. The negative mapping is based on the non-negotiable criteria, which have been agreed for; the project i.e. where housing development should not be contemplated. Once the initial `window areas’ have been identified, these areas will further be investigated to identify potential land parcels for housing development. The identified land parcels will then be assessed and ranked according to weighted criteria, which may be positive or negative criteria.

The CSIR has developed an eHouse Planning Support System – A tool for longer term housing strategy formulation (CSIR, January 2004) as part of a research project to ensure sustainable low income housing development, which has been applied in support of various Housing Development Plans for Gauteng Housing. eHouse consists of both non-spatial and spatial components. The non-spatial components consist of housing demand, target setting, land requirements and amenity requirements, while the spatial component is made up of land availability, land suitability and the allocation modules.

There is a specific layer in eHouse referred to as non-available land, which are areas that are not available for development. The non-negotiable criterion used to exclude land in eHouse is as follows:

o Protected Nature Reserves; o Agricultural Areas of high environmental importance; o Ecological areas of high environmental importance; o Heritage areas of high environmental importance; o Water bodies and wetlands;

6 Umgungundlovu Land Assessment for Housing Development Study: 2nd Draft Analysis Report MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 57 of 109 o Industrial sites and non-compliant zones forming a buffer of adjacent land; o Strategic transport, rail and electricity servitudes;

It is proposed for the purposes of this Housing Sector Plan that the following additional criteria is used to exclude land for consideration for housing development in the UMDM.

™ Agricultural Potential; ™ Biodiversity Value; ™ Heritage Value; ™ Water Bodies and wetlands ™ Topography

5.2 Factors Influencing Housing Development Areas

5.2.1 Dense Settlements/Population Density Classification

Ward 2 has the largest number of households with 3967 households, with Wards 1, 4 and 3, having the second, third and fourth highest, respectively. The household and population criteria suggest that housing development should take place where there is a concentration of people or households.

It is considered that the settlements with the highest number of households should be where development should first be focused. A concentration of development makes scarce resources accessible to a maximum number of people. This could contribute towards financially feasible development and will allow for the economies of scale with regards to service provision.

In addition, population density also plays a significant role in determining where housing development could occur. In this regard, population densities per Ward are tabulated hereunder as follows:

Table 25: Number of People per Ward Wards Number of People Ward 1 8 185 Ward 2 12 001 Ward 3 6 532 Ward 4 10 103

7In order to prevent sprawl, inefficient and haphazard development, the hierarchical structure established by activity corridors and nodes, should also inform the creation of a hierarchy of settlement areas in terms of function, density, level of service provision, type of development etc. This is however also influenced by topographic conditions, geotechnical and environmental

7 Mpofana Municipality Spatial Development Framework,2003 MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 58 of 109 issues and the desire to create unique environments.

The Mpofana Local Municipality’s SDF further envisages a hierarchy of settlement areas including urban development within and around the primary node of Mooi River, peri-urban / semi-rural development in and around the secondary nodes of Middelrus, Rietvlei and Tendele.

5.2.2 Accessibility Factors

Potential Housing Development is influenced by a number of factors, of which accessibility to land, employment opportunities, road infrastructure, community and other facilities, development nodes and bulk service infrastructure (particularly water) are critically important.

A series of Maps are attached hereto as Appendix A

a) Accessibility to Land

Three types or land ownership prevails in the study area i.e. privately owned land; state land and land that is vested under Ingonyama Trust. 95% of the settlements in the study area are located on Privately Owned Land. This means that due procedures that relates to acquisition of land will need to be followed should a decision be made to proclaim these area as townships before housing development take place.

b) Accessibility to Road Infrastructure

Mpofana is relatively well serviced with road infrastructure (see “Access to Road Network Map”). Access to road infrastructure is very good throughout the Municipal area. However some parts of the municipality have a significant number of smaller settlements which are relatively isolated in respect of access to higher order roads, i.e. main roads and district roads. These settlements are serviced by poorly maintained community access roads.

It is, however, in general noted that the majority of settlements, particularly those serving a 1 000 and more people, are located along main access routes.

c) Accessibility to Community and Other Facilities

Mpofana Municipality has a backlog in terms of the number of community and other facilities (see “Access to Community Facilities” Map).

● Schools are well distributed throughout the traditionally settled areas. ● Only 5 Health facilities have been identified in the municipal area. These are located along main routes and in close proximity to larger and denser settled MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 59 of 109 areas such as Mooi River, Bruntville and Rosetta respectively ● There are only a small number of pension payout points (i.e. 5) and these seem to be poorly distributed in some cases. ● It would appear that the traditionally settled areas are limited to schools and Payout Point in terms of facility provision.

d) Accessibility to Development Nodes

Accessibility to the following development nodes is relatively good:

¾ Mooi River/Bruntville; ¾ Rosetta;

However, it should be noted that whilst access to Middelrus and Rietvlei is fairly good, there are no significant settlements or population in the surrounds of.

The Primary node is has a central location, and it should be noted that the secondary nodes are all located in the south-western and north-eastern portions of the municipality.

Accessibility to the Tendele development nodes is relatively poor:

e) Accessibility to Bulk Infrastructure (particularly Water)

The infrastructure and services plan indicates on one bulk pipeline running along the Mooi River and the rest of the municipality, particularly in traditional settlements, water services are limited to boreholes.

5.2.3 Unsuitable Areas for Housing Development

It is proposed that the following areas be excluded as possible suitable housing development sites:

‰‰‰ In areas where residential development is adjacent to high potential agricultural land or where residential settlement has already taken place on such land, careful in-situ settlement and agricultural planning should take place and communal agricultural activities should be promoted in order to fully optimize the agricultural potential in the area. No further residential settlement should be encouraged.

‰‰‰ Areas that are further than 20 minutes travel time, by public and other transport, from main roads;

‰‰‰ Areas that are further than 20 minutes travel time, by public and other transport, from

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 60 of 109 development nodes;

‰‰‰ Areas that are further than 20 minutes travel time, by public and other transport, from facilities and other areas;

‰‰‰ Environmentally Sensitive Areas - No Housing Development should be permitted to take place on all wetlands, reserves and conservation areas as well as all areas with an Irreplacebility Index > 0.8; and

‰‰‰ Slope Characteristics – exclude all areas with gradient >33% due to the higher cost implications (cutting and filling of platforms for top structures, upgrading road networks, etc.).

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 61 of 109 6. SECTION 6: LAND ASSESSMENT FRAMEWORK8

It should be noted that land for potential housing development has been identified through a desktop study only and the necessary “ground truthing” and environmental studies will, of course, need to be undertaken – once the various areas have been studied in greater detail and confirmed for housing development purposes.

In accordance with the Municipality’s Spatial Development Framework, the nodal areas have been targeted for low cost housing projects. It should be noted that information regarding the number of individuals requiring affordable housing is not available, as municipalities have not kept waiting lists for this category of individuals.

Furthermore, the Department of Housing has recently introduced a subsidy mechanism which will cater for this group of individuals and the specific details of the mechanism have not been determined as yet. Hence, land parcels for the affordable and high-income groups will be those window areas that were identified as being not sensitive or unsuitable during the negative mapping exercise.

6.2 Negative Mapping and Window Areas9

A major part of the municipal area has water resources traversing it, hence the floodlines must be taken into consideration should development be undertaken. The eastern part of the municipal area contains areas of high biodiversity value, areas of heritage significance, protected areas and unprotected areas of environmental significance.

There are areas in the remainder of the municipality, which contain patches of areas with high biodiversity value and slopes with a less than 1:20 gradient. The municipality contains a number of windows areas, which can be considered for development purposes.

The window areas, which are opportune for low–cost housing development, include those that surround Mooi River, Rosetta and the two tertiary nodes (that are in the western part of Mooi River). The SDF considered these areas as opportunity zones (in Mooi River some of these window areas are zoned as opportunity zones while the rest are considered as the urban zones).

There are also window areas within the tertiary nodes such as Tendele, Rietvlei and Middelrus and these areas have an emerging farmer focus. Most window areas are to the north-east of Mooi River (i.e. between the Mooi River and Middelrus nodes, along the municipal boundary) and these are considered by the SDF to be Emerging Farmer Focus zones.

8Umgungundlovu Land Assessment for Housing Development Study: Phase 3: Framework Report 9 (Refer to Preferred Housing Development Window areas Map) MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 62 of 109 6.2 CONCLUSION:

With reference to the above, window areas that surround the Mooi River and Rosetta nodes provide good opportunity for low–cost housing development. The municipality should also ensure that the municipal low cost housing waiting lists be updated so that the need for this type of housing can be accurately quantified. The municipality also identified the need for affordable housing. In this regard the municipality will need to formulate an affordable housing waiting list so as to able to quantify the need.

Based on the above, “Potential Low Cost Housing Development Areas” and “Potential Housing Development Areas” (which could accommodate a range of housing developments, including rural, affordable and upper income housing developments) have been identified spatially in the Mpofana Municipal Area.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 63 of 109 7. SECTION 7: SPATIAL DEVELOPMENT FRAMEWORK (SDF)

The primary aim of the spatial development framework (SDF) is to create a competent local spatial structure. The SDF promote improved systems of access, link settlements, guide investment and create an overall system of opportunity.

7.1 Purpose of the Spatial Development Framework

The SDF provides spatial guidance for development by providing a broad indication of where different types of development should take place within the municipal area. The Mpofana SDF (Mpofana IDP Review, 200/2008) stated that the purpose of the SDF was to:

• provide an overall spatial reflection of the development ultimately envisaged in the development vision; • relate the broad vision statement and broad principles and approaches established to the realities on the ground; • facilitate the spatial integration of physical, economic, social and institutional development; • reflect the spatial restructuring of the municipality where necessary; • provide guidance to the prioritisation of projects and indicate the location of project where appropriate; • provide guidance to the future more detailed LUMS; and • create opportunities for a better understanding of the intentions of the IDP.

The planning principles and approaches underlying the SDF (Mpofana IDP Review, 2007/2008) are as follows:

• Integration: Integration in terms of various scales of planning (local, district, regional); development sectors (e.g. physical, social and economic); and development components (e.g. residential, commercial and environmental). • Establishment of Efficient Development: Promotion of efficiency in terms of location, accessibility, density, integration and uniqueness. • Sustainable Development: Establishment of sustainable development not only in terms of environmental considerations, but equally with regard to economic, social and institutional sustainability. • Development as a Continuous Process: Development that takes the form of a continuous process consisting of a series of actions and reactions – with planning facilitating the structuring of development rather than fixing land uses.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 64 of 109 The SDF (Mpofana IDP, 2008) noted that:

• the main access to the municipal area was via the N3 and R103; • other main external access opportunities were in the form of the R74 in the north-east and a series of provincial roads at the foot of the Drakensberg in the west; • east-west linkages within Mpofana were in the form of a series of secondary access corridors, linking Mooi River to the local secondary centres and the range of development opportunities within the municipality; • urban development was concentrated in and around Mooi River, with peri-urban and semi-rural development being primarily encouraged in and around the secondary centres of Middelrus, Rietvlei/Craigieburn and Tendele; • there was a system of protected river valleys, which linked a series of environmental resources and activities, and which provided appropriate access and linkages to Mooi River; • there were a series of tourism opportunities in the form of Mooi River as the central gateway for the municipality and the various opportunities of the Drakensberg and its foothills, the various environmentally sensitive areas, nature reserves and conservancies, the Craigieburn Dam and the Mooi River Falls; • much of the remainder of the municipality was seen as an agricultural and tourism opportunity zone.

Mooi River/Bruntville (as the administrative and economic centre of the municipal area) was identified as the primary node in the SDF. It is situated on both the external access corridor (the N3) and the primary corridor in the municipality (the R103).

The SDF also provides a “spatial vision” (including an urban design map) of the Mooi River/Bruntville node. Rosetta, Tendele, Rietvlei/Craigieburn and Middelrus were identified as secondary nodes in the SDF, linked by a number of secondary corridors.

The SDF map also identified the following: urban areas, a river corridor system, an agriculture and tourism opportunity zone; tourism opportunity areas, conservancies, nature reserves, environmentally sensitive areas, a gateway area (Mooi River/Bruntville) and an area of emerging farmer focus (Tendele).

7.2 Underlying Planning Approaches

The following provides an overview of planning principles and approaches underlying the Mpofana Spatial Development Framework.

The spatial framework will be based on the notion of integration both in terms of integration of various scales of planning, e.g. local, district, regional planning etc, integrating various development sectors, e.g. physical, economic, social etc, and integrating the various development components with each other, e.g. residential, commercial, environmental etc.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 65 of 109 7.3 Objective

The objective of the Nodal development strategy is to provide infrastructure, both physical and social, addressing the backlogs and to ensure balance growth in an equitable manner with the emphasis being on accessibility to basic services which need to be provided in a sustainable and affordable manner to the residents within the Mpofana Municipal area.

7.4 Establishment of Structure

The establishment of settlement structure and structuring settlement is intended to facilitate the integration of the components of the municipality, its functions and facilities, create a clear and understandable system, contributing to uniqueness and place-making, efficiency and development co-ordination. The development structure represents the backbone of the municipality around which activities and land uses will change over time.

7.4.1 Focus on Movement

One of the most obvious structuring elements is represented by the movement system. It makes developments accessible providing internal and external linkage contributing therefore to physical integration. Various levels of movement systems are easily accessible by the residents constituting therefore appropriate locations for the relevant levels of facilities, activities, densities, place-making efforts etc.

7.5 Hierarchy of Movement, Activity and Land Use Corridors

Thus the existing hierarchy of movement systems, including national, regional, district and local access roads, should be utilised to inform the location of national, regional, district etc level activities and development opportunities, thereby contributing to the creation of a functional activity and land use structure.

7.6 Hierarchy of Activity and Service Centres/Nodes

Similarly the intersection of national, regional, district and local linkages, providing a higher level of accessibility and visibility, has in the past and will continue to inform the location of the relevant hierarchy of centres of activity and support service.

7.7 Current Status of the Mpofana Spatial Development Frameworks (SDF)

The Mpofana Spatial Development Frameworks (SDF) was developed during the initial Integrated Development Plan (IDP) process and it has never been reviewed ever since. The Mpofana Municipality is currently in the process of developing and finalizing its Land Use Management System (LUMS), which will inform the Spatial Development Frameworks to a large extent.

Financial constraints within the Municipality have also played a major role in the non-review of the Spatial Development Frameworks (SDF) with the current IDP review. The Umgungundlovu MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 66 of 109 District Municipality is currently finalizing the process of the District SDF review which encompasses the reviews of all local municipalities that fall within the district. (See attached under the appendices, the current SDF map of the Mpofana municipal area and the revised SDF from the District SDF Review.)

7.8 Strategy

7.8.1 Primary Nodes (Administrative and Service Nodes):

It is envisaged that a relatively high level of water, sanitation, electricity, municipal roads, storm- water and refuse removal service be provided. Social infrastructure and services such as telecommunication and postal services, community halls, sport and recreational facilities, education facilities, health facilities and emergency call points be provided and finally the provision of business opportunities, safety and security, police service and government offices to ensure local economic development.

7.8.2 Secondary Nodes (Rural Development Nodes):

It is foreseen that an intermediate level of services such as all weather access roads, potable water supply, electricity, refuse removal, postal service, cemeteries, police service, community hall, education facilities, health facilities, recreation and sport facilities, bus/taxi stops, markets, pension payout points and public phones be provided, in sparsely populated area only the minimum level of water and sanitation should be provided.

7.9 Proposed Settlement Hierarchy

Table 26: Settlement Hierarchy as per Municipal Spatial Development Framework

CATEGORY SETTLEMENT

Primary Administrative and Service Mooi River and Bruntville Centres

Rural Centres Rosetta, Tendele, Rietvlei, Middelrus

Scattered Settlement and Scarcely The remainder of the area. Populated Areas Source: (Municipal Integrated Development Plan 2007/08)

In summary, the spatial distribution of the development nodes and the inherent function of each of these nodes in terms of the hierarchical order are of prime importance in determining a strategy in respect of service provision within the municipal area.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 67 of 109 Development nodes have been identified, initially on the basis of population density where people have naturally clustered together, and thus requires a more intense level of services than in rural scattered areas, and furthermore on the basis of the spatial distribution of these nodes so as to ensure a uniform distribution of the various nodes throughout the municipal area for ease of access by the community at large.

The current distribution of the population within the municipal area is characterized by settlement clusters which have been informally established in specific locations for various reasons.

7.10 Community Priorities

The following issues were identified by communities for each ward during the IDP process. The table below contains the relevant housing development related issues drawn from the general community needs within the Municipal area.

Relevant priority issues identified by the community in relation to integrated housing developments and their associated standards are provided hereunder.

Table 27: Summary of Identified Needs per Ward as per the Public Participation Process STRATEGIC WARD 1 WARD 2 AREAS

INFRASTRUCTURE ○ Upgrade and maintenance of CBD and ○ Provision of low cost housing & Bruntville roads ○ Provision of water and sanitation SERVICES ○ Upgrade of water infrastructure ○ Provision of electricity ○ Provision of waterborne sanitation for ○ Provision/upgrade of roads Pennindale ○ Repair of water pump at Rondebosch farm ○ Speed Humps

SOCIAL & ○ Community hall ECONOMIC ○ Sports Infrastructure DEVELOPMENT ○ Identification and securing of land ○ Clinics

STRATEGIC WARD 3 WARD 4 AREAS

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 68 of 109

INFRASTRUCTURE ○ Speed Humps ○ Identification and purchase of land & SERVICES ○ Cleaning and maintenance of roads ○ Provision of cemetery for Craigieburn ○ Identification of dumping sites Housing project ○ Upgrade of Gwala Park roads ○ Upgrade of roads ( D508, D509,D774 ○ Provision of sanitation for Mbizimbelwe ○ Multi purpose centre for Middelrus & Centre Birdspruit ○ Public toilets ○ Provision of low cost housing for Muden ,Rockydrift and Birdspruit ○ Community Hall for Muden and Rockydrfit ○ Provision of water and sanitation – borehole for Cebolesizwe and Muden ○ Provision of bridges for Muden and Cebolesizwe ○ Schools & Creches for Middelrus and Muden

SOCIAL & ○ Development/ Revival of cooperatives ○ Cellphone network coverage ECONOMIC programme ○ Sports Infrastructure DEVELOPMENT ○ Small to medium business infrastructure ○ ID campaign ○ Identification of land for commonage ○ Computer Centre for Rockydrift

Source: (Mpofana IDP Review Report 07-08)

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 69 of 109 8. SECTION 8: MUNICIPAL INSTITUTIONAL ARRANGEMENTS

As is common in most local municipalities in KwaZulu-Natal, the Mpofana Municipality does not have a dedicated housing department. The housing functions falls under the auspices of the Technical Services Department and the responsible official is the Manager of Social, Economic and Planning Department, Ms BN Sithole. She is currently assisted in this regard by only one official from the Technical Department.

● The existing institutional arrangements will need to improve; hence this necessitates the need to expand its in-house capacity to administer the housing function.

● A greater level of communication and alignment between the Department of Housing, Department of Land Affairs and the Municipality will need to be established or enhanced.

Figure 7: Mpofana Municipal Organogram

Municipal Manager M.A. Madlala

Corporate Social, Economic Finance Technical Services Services & Department Department Planning Mr. G. Gcaba Department Mr. S. Sithole Mr. B. Sosibo Ms. B. Sithole

Income Expenditure Section Section Human Support Resources Services

Economic Social Planning YAC Water and Gardens Electricity Development Services Services Sanitation and Parks

Source: (Mpofana IDP Review 2008/09)

The above organogram shows that there position of a Housing manager is still vacant. The function is currently performed by the Manager Social, Economic and planning Department, Ms B. Sithole.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 70 of 109 In future, this position will need to be filled so that a dedicated official can attend to housing matters in the Municipality. Mpofana Municipality has already identified its housing projects. The Turnkey Strategy which is illustrated below; is most suited to the Municipality as the appointed Implementing agents will enhance the capacity of the municipal Housing official to be appointed.

Figure 8: The Turnkey Strategy

MPOFANA MUNICIPAL TECHNICAL SERVICES

COMMUNITY HOUSING SERVICES

Manager Housing

Implementing Implementing Implementing Implementing Agent: Proj.1 Agent: Proj. 2 Agent: Proj. 3 Agent: Proj.4

Appointment of a Professional Team on each Project

The following are some of the key the functions to be performed at an administrative level:

Functions emanating from national and provincial housing policy, legislation and programmes. These functions are:

to manage, monitor and evaluate the implementation of the Housing Sector Plan ensure integrated development of housing projects and coordinate implementation with relevant departments.

Property and land administration functions. These functions include the following:

maintain and update erven data and administer transfer of properties

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 71 of 109 manage area of jurisdiction data and alterations

Housing technical support functions. These functions include the following:

establish and maintain a database of inspection reports and to compile reports on projects inspections.

Line functions. These functions include the following:

efficient utilization of financial, physical and human resources. provide policy advise on housing issues and keep up to date with legislative change

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 72 of 109 9. SECTION 9: PERFORMANCE INDICATORS:

The Mpofana Municipality is in the process of establishing a Performance Management System (in accordance with Chapter 6 of the Municipal Systems Act No.32 of 2000) as part of the IDP 2007/08 Review process. The following performance indicators will need to be incorporated into the system in due course:

The purpose of this template is to enable the Mpofana Municipality to demonstrate the preparation of their multi-year housing plans in accordance with a strategic planning process so that budgets and business plans flow from and are linked to a strategic planning process rather than prepared in some ad hoc manner.

Table 28: Performance Indicators

PRIORITY STRATEGIES PERFORMANCE ASSUMPTIONS PROGRAMMES INDICATOR

Finalization of existing 1. Determine status of Number of housing units Some of the reasons why projects existing projects. constructed per annum. projects have been blocked/stalled are 2. Identify projects which beyond the control of the have been municipality e.g. Inflation, stalled/blocked and find land-legal problems, solutions to problems. social issues, delays, etc.

Removal of 1. Identify slum areas. Number of slum areas Depends on whether slums/informal cleared. funding from DoH is settlements 2. Determine number of available to initiate families requiring Number of housing units projects. houses. constructed per annum.

Rural Housing 1. In-situ upgrades. Number of in-situ projects Depends on whether Development initiated. funding from DoH is 2. Implement Greenfield available to initiate projects. Number of Greenfield projects. Depends on Projects initiated. whether Land is made available by Amakhosi.

Upgrading of Hostel 1. Determine status of Number of units Programme will be project. converted to family units. completed within planned timeframe provided there 2. Ensure completion of are no factors beyond the project control of the municipality.

Development of new 1. Determine number of Number of housing units Depends on whether Urban Housing houses required. constructed per annum. funding from DoH is available to initiate 2. Source funding from projects. DoH for projects.

3. Implement Greenfield projects.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 73 of 109 10In order for the housing sector plan to be practical and useful it must be effectively and accurately monitored. A suggested method of monitoring and evaluation of housing projects at packaging or feasibility stage can be drawn from PPT’s DOH project packaging course. The information from this course is available to housing officials within the municipality who have already completed the course.

Therefore projects in the packaging or feasibility stage should be monitored based on the required information collected in the Preliminary Assessment, Pre-feasibility, and Feasibility stages, as outlined below.

9.1 Preliminary assessment

This stage involves a lightweight upfront project assessment which is mainly desktop, and usually requires a site visit where relevant stakeholders can also be met. Risks and opportunities are identified before commencing with full scale and costly pre-feasibility. It is in this stage that the rough budget and scope for pre-feasibility and feasibility are defined. Information collected in this stage should form the basis for motivating for the release of preparation funding.

9.2 Pre-feasibility

It is in this stage that project preparation starts in earnest and significant project budget is required. It entails careful assessment of the project basics (e.g.: land availability, site suitability etc) by a team of specialists. The project concept and rough capital and operating budgets are produced. Key risks are eliminated, quantified or referred to the feasibility phase for resolution. The risks clarified in this stage form the basis for the projects success or failure. This stage equates to the conditional approval stage in relation to the DoH’s process detailed in Chapter 3A of the Housing Code.

The main project risks clarified in this stage are as follows:

‰‰‰ Land Audit ‰‰‰ Initial social facilitation (community and other stakeholder support) ‰‰‰ Environmental Scoping Report (preliminary) ‰‰‰ Assessment of Bulk Services (of less importance in rural housing projects) ‰‰‰ Preliminary Geotech (of less importance in rural housing projects) ‰‰‰ Planning issues - site constraints and yield (of less importance in rural housing projects)

10 Umhlathuze Municipality: Municipal Community Housing Sector Plan HP Rev. 16 Final MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 74 of 109 9.3 Feasibility

It is in this stage that more detailed work by project team takes place. The focus is to resolve outstanding risks (from the previous stage) and to finalise the project concept, design and cost parameters. Information clarified in this evaluation results in a final applications to the DoH for full project approval through the PLS application form.

The main project activities carried out in this stage are as follows:

1. Land assembly / land agreements 2. Further social facilitation 3. Socio-survey 4. Social compact 5. Preliminary town planning layout (Settlement plan required for rural housing projects) 6. Preliminary engineering design and costs (of less importance in rural housing projects) 7. Top-structure delivery 8. Designs and cost estimates 9. PHP plan if required

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 75 of 109 10. SECTION 10: MPOFANA HOUSING ROLL-OUT PLAN

The following Housing Roll-Out, based on activities such as packaging, detailed design and implementation, is proposed for the following Housing Projects:

Table 29: Roll-Out Plan for Approved Projects Task Name 2008 2009 2010 2011 2012

CURRENT PROJECTS Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Creigeburn Housing Project (PLS) ref Detailed Design Implementation

Table 30: Roll-Out Plan for Projects in Packaging Phase (Conditional Approval) Task Name 2008 2009 2010 2011 2012

PROJECTS IN PACKAGING PHASE

Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3

Phumlas (In-Situ upgrade) Packaging Detailed Design Implementation Vrystaat Farm Housing: Doornkloof (8.8ha) Packaging Detailed Design Implementation Sierra Ranch Housing Project Packaging Detailed Design Implementation

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 76 of 109 Bruntville Hostel Conversion Packaging Detailed Design Implementation Townview (Re-habilitation) ref Detailed Design Implementation

Table 31: Roll-Out Plan for Projects in Initiation Stage Task Name 2008 2009 2010 2011 2012

PROJECTS IN INITIATION STAGE

Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Beth Shemite Aids Orphanage Packaging Highover Housing Project Packaging Rosetta Housing Project Packaging Tendele Housing Project Packaging Detailed Design Implementation

It is not possible or even desirable at this juncture, to propose a Roll-Out Plan for the remaining proposed Housing Projects since these have not yet been evaluated nor approved by the KZN Department of Housing. The projects approval is not guaranteed and hence false expectations should not, at this stage, be created.

N.B: Although only three projects are on the roll-out plan, it is critical for implementing agents not to loose momentum as they might get approval in time to from the Department of Housing. As it is the norm with the Department, the earlier the projects are packaged, the more likely for them to get approval.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 77 of 109

11. SECTION 11: CASHFLOW FOR PROJECTS

The table depicted hereunder provided by The KZN Department of Housing’s Inland Regional Office shows the cash flow for the six Project Linked Subsidy projects, for the next five years.

Table 32: Cash Flow for Project Linked Subsidy Projects INLAND REGIONAL OFFICE

MPOFANA MUNICIPALITY

Name of Ref. No. Date of Instrument Total Value of No. of Annual Projected Cashflow Project Initial Project Subsidies Approval 2007/08 2008/09 2009/10 2010/11

CURRENT

Craigeburn K04090006 21/5/2007 PLS R 46,729,600 850 R 0 R 7,664,645 R 8,342,576 R 8,926,556 TOTAL R 46,729,600 850 R 0 R 7,664,645 R 8,342,576 R 8,926,556 CONDITIONAL

Phumlas K04080009 22/11/2007 PLS R 25,382,546 400 R 0 R 6,844,576 R 8,926,556 R 9,551,414 Vrystaat Farm K05050004 22/11/2007 PLS R 6,148,400. 100 R 0 R 3,796,750 R 2,231,650 R 0 Sierra Ranch 2007/06/12 PLS R 7,041,060. 120 R 0 R 3,796,750 R 3,124,310 R 0 TOTAL R 13,189,460. 620 R 0 R 14,438,076 R 14,282,516 R 9,551,414 PREPARATION

Bruntville Hostel PLS slum R 6,234,400 100 R 0 R 1,711,100 R 4,633,300 R 0 Beth Shemite K05120001 Institutional R 7,509,292 120 R 0 R 2,033,332 R 5,355,960 R 0 Aids Orphan

TOTAL R 13,743,692 220 R 0.00 R 3,744,432 R 9,989,260. R 0.00 Source: (Mr T. Chetty: KZN Department of Housing, 30 January 2008)

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 78 of 109 12. SECTION 12: INTEGRATION WITH OTHER SECTORS

In order to provide “total living environments”, it is vital that the delivery of housing occur in conjunction with other services and facilities (including, basic infrastructure, health, education, sports, etc.) the housing proposals set out in this Municipal Housing Plan are all in accordance with the Mpofana IDP and associated Spatial Development Framework Sector Plan.

As the IDP is the core document guiding all decision-making in, and with respect to, the municipal area, service providers responsible for the delivery of services and facilities integral to the creation of “total living environments” will be able to plan and budget for the provision of such services and facilities in an informed manner.

With reference to the primary node of the municipality, it is noted that all of the land that has been identified for housing purposes is well located with respect to existing community and social services and facilities. In regard to the housing proposals in the rural areas of the municipality, the delivery of rural residential opportunities is to be targeted at the identified service satellites.

As it has been shown through out this document, an integrated approach to housing development is not just about bricks and mortar. A holistic approach to housing development will take into consideration inter alia:

Provision of municipal infrastructure and services; Access to social services and economic opportunities; and Alignment of housing plan with other Municipal plans strategies such as the Integrated Development Plan, Spatial Development Frameworks and Land Use Management.

Therefore the delivery of projects must be coordinated between departments. This proposed integration is an on going process which should inform municipal planning at large and it will require communication amongst the various Municipal Departments and other service providers to ensure that integrated human settlements are developed.

Once the municipal housing official has been appointed, their role will be to ensure that all of the departments are aware of the proposed developments and that funding is coordinated to ensure maximum development benefits. At a basic level this plan should ensure that MIG funding is correctly coordinated with the proposed delivery of housing over the next five years.

Although this plan does give an indication of the level of services and facilities available in the different communities of Mpofana Local Municipality, it is hoped that further coordination of relevant sector departments such as education, economic development, social services health etc. will be cultivated so as to ensure that the proposed projects in this plan are implemented in an integrated and sustainable manor.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 79 of 109

12.1. Revised Strategic Issues for the IDP REVIEW 2007/08

12.1.1 Infrastructure and Services

Table 33: Strategic Framework, Strategies and Alignment STRATEGIC RESPONSIBLE OBJECTIVES ALIGNMENT STRATEGIES ISSUES DEPARTMENT Access to ● To provide potable water to all Households ● Ensure service level agreements are Technical Services ● To ensure rollout of free basic water signed Water ● Liaison with the UMDM and between Municipal Departments

Sanitation ● To provide basic sanitation services to all households ● Liaising and providing input to the UMDM Technical Services ● To revamp/upgrade the water and sanitation systems PMU for sanitation provision ● Ensure service level agreements are signed ● Monitor the implementation to ensure the backlog is addressed

Cemetery and ● To ensure provision of cemeteries and crematoria for ● Liaise with DM and Line Departments for Technical Services Crematoria both urban and rural areas the identification and development of ● To develop database for the provision of cemeteries new cemeteries

Waste ● To ensure provision of basic waste management ● Liaise with DM for the upgrade of the Technical Services Management infrastructure existing land fill site ● To prepare local waste management implementation ● Develop policy for rural waste collection plan ● Allocation and management of refuse ● To provide access to refuse removal to all rural removal resources and factor increment households cost into operational budget ● Liaise with DAEA to establish a Forum to develop and implement rural waste management, health, and environmental programme

Transportation ● To formulate together with the Department of ● Liaise with the Department of Transport for Technical Services Planning Transport a structured process for the upgrading of the identification and upgrade provincial road networks within the Local Municipality roads network. ● To ensure linkages to access roads

Access to ● To provide basic electricity to all people ● Liaise with Eskom and NER Technical Services electricity ● To formulate the grid and non grid supply networks in the Local Municipality ● To review LM electrification plan

Disaster ● To facilitate the prevention and reduction of risks of ● Liaison with the Disaster Management Technical Services Management disasters. Team at UMDM

Housing ● To provide access to basic housing. ● Liaison with the Department of Housing Technical Services ● To facilitate removal of slums and informal settlements through think tanks ● To ensure finalization of existing housing projects ● Alignment with the Dept. of Housing’s ● To ensure extension of housing to rural areas Breaking New Ground Strategy

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 80 of 109

12.2 Five-Year Capital and Operational Programme (MTEF)11

12.2.1 Infrastructure and Services

Table 34: Water

Table35: Sanitation

Table36: Waste Management

11 MPOFANA IDP REVIEW REPORT 07-08 MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 81 of 109 Table37: Electricity Project Progress/ Total Funding Required and Sources Responsible Name Start Date Project Person 2007/08 2008/09 2009/10 2010/11 Cost Upgrade of Already Electricity initiated and to R16 000 000.00 R 10000 000.00 R6000 000.00 Completed - network & be finalized by (DME) substation June 2007 Cable fault Planning R 71 000.00 R 71 000.00 Completed - - finder phase Own Funds Own Funds Technical Rockydrift Business TBD TBD - - - Electrification planning Eskom Services Muden Business TBD TBD - - - Manager Electrification planning Eskom Mpofana Implementation 7,300 000.00 R7,300 000.00 Electrification - - - phase UMDM UMDM

REDS Business R150 000 R150 000 - - - Preparation planning Own funds Own funds

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 82 of 109 Table38: Road and Transportation Planning

PROGRE TOTAL RESPON FUNDS REQUIRED AND SOURACE PROJECT NAME START PROJECT SIBLE

DATE COST PERSON 2007/08 2008/09 2009/10 2010/11 Upgrade/consolidation R 5,800 000 of Mooi River Taxi January 2007 R 3,1 m – DM R 2,7 m – DOH Completed - million Rank Road Upgrade: Gwala Business R 3,577 000.00 R 3,577 000.00 Completed - - Park planning MIG MIG Upgrade of CBD roads January 2007 5,6 million 5,6 million - - - (Phase 1) UMDM UMDM Armcor Barrier N3 Planning R 12 000.00 R 12 000.00 - - - Bruntville phase Own Funds Own Funds Regravelling of D568 Planning R1,200 000.00 R1,200 000.00 - - - phase DOT DOT Technical Regravelling of P 174 Planning R 300 000.00 R 15,000.000.0 R1,200 000.00 R 19, 200000.00 - phase DOT UMDM UMDM Services Manager Upgrade of D371 Planning R 2 000 000.00 R 2,500 000.00 R1,200 000.00 R 5,700000.00 - Rockydrift road – 4km phase UMDM UMDM UMDM Development of a Local Planning Public Transportation TBD TBD - - - Plan phase Own funds Own funds

Alterations & additions to the RTI testing Planning R1,127 286.00 - R42,534.00 - - station in Mooi River phase DOT DOT

Planning R 1,600 000.00 Mooi River Bridge 1,600 000.00 - - - phase UMDM

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 83 of 109 13. SECTION 11: THE SOUTH AFRICAN HOUSING SUBSIDY SCHEME SUBSIDY QUANTUM AMOUNTS FOR THE PERIOD 1 APRIL 2007 TO 31 MARCH 2008 IN RESPECT OF A 40M2 HOUSE ONLY.12

Table 39: Subsidy Amounts Individual and Project Top Structure Own Contribution Product Price Linked Subsidies Funding only

R0 - R1 500 R38 984,00 None R38 984,00 R1 501 - R3 500 R36 505,00 R2 479,00 R38 984,00 Indigent: Aged, Disabled R38 984,00 None R38 984,00 and Health Stricken R0 - R3 500 Institutional Subsidies

R0 - R3 500 R36 505,00 Institution must add At least R38 984,00 Capital Consolidation Subsidies

R0 - R1 500 R38 984,00 None R46 484,00 * R1 501 - R3 500 R36 505,00 R2 479,00 R46 484,00 * Indigent: Aged, Disabled R38 984,00 None R46 484,00 * and Health Stricken R0 - R3 500 Rural Subsidies

R0 - R3 500 R38 984,00 None R38 984,00 People's Housing Process R0 - R3 500 R38 984,00 None R38 984,00

* Product Price = R38 984,00 PLUS serviced stand previously acquired at R7 500,00 = R46 484,00

Municipal engineering services are to be funded from other Government resources but as a last resort option may also be funded from the annual housing funding allocations to Provinces

13.1 Procedures for Identifying and Securing Land for Development

The procedures are set out below with reference to Figure 9

12 www.houzing.co.za MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 84 of 109 Figure 9: Procedure for Identifying and Securing Land for Development

1 MEC's RECEIVE PROVINCIAL SUBSIDY ALLOCATION FROM NATIONAL HOUSING FUND

2 MUNICIPALITIES APPLY FOR RESERVATION OF SUBSIDIES I.T.O. APPROVED IDP'S

3 MEC'S RESERVE SUBSIDIES PER MUNICIPALITY & CALL FOR PROJECT DESCRIPTIONS

4 APPLICANTS CALL FOR LAND AVAILABILITY PROPOSALS

5 ADJUDICATION OF PROPOSALS IN RELATION TO IDP'S & SELECTION OF PRIORITY LAND

6 APPLICANTS SECURE LAND, PREPARE PROJECT DESCRIPTIONS & ACQUISITION AGREEMENTS

7 MEC's ADJUDICATE, MAKE CONDITIONAL APPROVAL OF SUBSIDIES AGAINST SELECTED LAND PARCELS & PROJECT DESCRIPTIONS & DETERMINE SUBSIDY VARIATION FORMULA FOR PROJECT

8 9 NO NHBRC IN-PRINCIPLE MEC REVIEWS REASONS AND TAKES ENROLMENT? REMEDIAL ACTION

YES

10 DEVELOPER PREPARES FEASIBILITY REPORT

12 11 NON-COMPLIANT MEC REVIEWS REASONS AND TAKES ASSESSMENT OF FEASIBILITY REPORT AND SUBMISSION TO MEC REMEDIAL ACTION OR TERMINATES PROJECT COMPLIANT

13 NO NHBRC PROJECT ENROLEMENT

YES

CONTRACT STRATEGY: TURNKEY 14 MEC CONFIRMS SUBSIDY IN PROJECT AGREEMENT WITH DEVELOPER & CONCLUDES MEMORANDUM OF UNDERSTANDING CONTRACT STRATEGY: TRADITIONAL WITH RELEVANT PARTIES PRE-PLANNED

15 CONTRACT STRATEGY: DEVELOPMENT CONTRACT DEVELOPER SECURES LAND I.T.O. LAND ACQUISITION AGREEMENT

MPOFANA LOC AL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 85 of 109 14. WHAT ARE HOUSING NORMS AND STANDARDS?

This section, briefly, explains national norms and standards in respect of housing development. The Housing Act, 1997 requires the Minister to determine national norms and standards.

The purpose of national norms and standards is to ensure that beneficiaries are provided with a housing product that is of optimal size and quality, within the limits of housing subsidy.

Norms and standards for housing development define two aspects:

● Municipal services to be subsidised through a subsidy for housing. ● A minimum size of top structure, as well as specific standards for its construction.

14.1 Municipal services:

● Land acquisition and township establishment. ● Water (single-metered stand pipe per erf). ● Sanitation (VIP per erf). ● Roads (access to erf with graded road). ● Storm-water (lined open channel). ● Street lighting (high-mast security lighting).

14.2 Top structure:

● 40m2 (gross floor area).

It is important to note that norms and standards:

● Apply to all subsidy bands. ● Are not mandatory in respect of dwellings and or projects developed in terms of the Rural Housing Subsidy mechanism. ● Are not mandatory in projects that constitute in situ upgrading of informal settlements.

15. PROJECT EVALUATION

This section should evaluate and analyse all the projects as identified by the appointed Implementing Agents in the Municipal area. This will be based on the application packages submitted by the Implementing Agents to the Department of Housing.

The Project Evaluation Information, which provides the geotechnical report, environmental assessment reports, social impact assessment is of particularly importance since absence of this

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 86 of 109 information, the approved and planned housing projects cannot be evaluated in terms of suitability and feasibility.

16. CONSULTATION PROCESS

16.1 Establishment/formalization of Project Steering Committee

A project steering committee was formed with the responsibility of overseeing and guiding the process and vetting the final product.

The PSC composition of the included the following:

Table 40: Project Steering Committee NAME ORGANISATION REPRESENTING EMAIL Oscar fumba SiVEST Service Provider [email protected] kavi soni SiVEST Service Provider [email protected] Mrs Bongani Sithole Mpofana municipality Social, Economic and [email protected] Planning Department Bheki Sosibo Mpofana municipality Technical Services [email protected] Sandile Makhaye Mpofana municipality Social, Economic and [email protected] Planning Department Sindisiwe Mpungose Mpofana municipality Social, Economic and [email protected] Planning Department Petros Mkhize KZN Department of housing Planning [email protected] Vamisile Mkhwanazi KZN Department of housing Planning [email protected] Theo Chetty KZN Department of housing Planning [email protected] Mandisa Khomo Umgungundlovu DC Town Planning 082 886 0209

It was advised that the following should be the role and responsibilities of the PSC and everyone in attendance was in agreement.

1. Attend Meetings 2. Provide Input on various stages of the project 3. Oversee the Project 4. Approve Payment

Notes of the meetings held are attached herein as appendix C.

16.2 Level of consultation for the Housing Plan

An advert for Public comment attached herein as appendix B was placed in the Ilanga Newspaper on the 5th of June 2008

Efforts to illicit comments from the District Municipality were unsuccessful.

A consultation list is attached hereto as appendix D.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 87 of 109 16.3 Comments received

No comments were received from the public.

Comments on the Final Draft Housing Sector Plan from Mr Theo Chetty from the Coastal Region KZNDoH who has been instrumental in the formulation of this housing plan have duly been incorporated herein.

Comments from Mr Petros Mkhize from the Inland Region KZNDoH also provided valuable input.

Comment from the Mpofana Local Municipality who shall herein be referred to as the `Client’ were acknowledged and duly incorporated herein.

17. CONCLUDING REMARKS

This Housing Development Sector Plan will form the basis of monitoring and evaluation to ensure the effective implementation process. Furthermore the success of this Housing Sector Plan will depend on the realization of the targets/objectives and the indicators will serve as the yard stick to measure progress.

It is advised that this Plan is reviewable to accommodate changes and cater for other wards notwithstanding the fact that housing delivery goals must be realistic. The Municipal housing coordinator / officer should be accountable for the administrative implementation of the Housing Sector Plan as well as reporting back to council.

MPOFANA LOCAL MUNICIPALITY prepared by: SiVEST 9413: Municipal Housing Sector Plan Revision No.2 28 July 2008 Page 88 of 109

Appendix A MAPS

Appendix B NEWSPAPER ADVERT

Appendix C MINUTES OF MEETINGS

Appendix D CONSULTATION LIST

Appendix E VRYSTAAT FARM HOUSING LAYOUT

Appendix F SIERRA RANCH DEVELOPMENT PLAN

Appendix G BRUNTVILLE HOSTEL CONVERSION LOCALITY PLAN

Appendix H TENDELE HOUSING PROJECT: LAND AUDIT REPORT

SiVEST Town and Regional Planning Division 4 Pencarrow Crescent, La Lucia Ridge Office Estate Umhlanga Rocks. 4320. South Africa PO Box1899, Umhlanga Rocks.4320. South Africa

Tel + 27 31 5811500 Fax +27 31 566 2371 Email [email protected] www.sivest.co.za

Contact Person: Kavi Soni Cell No.:082 903 9824 Email: [email protected]