UMZIMKHULU MUNICIPALITY

OCTOBER 2008

MUNICIPAL HOUSING SECTOR PLAN

Prepared by: P.O 2549 The Municipal Manager Hillcrest Umzimkhulu Municipality 3650 169 Main Street 031 765 5162 Umzimkhulu 082 7780 783 039 - 259 0216 Contact: N. Magewu [email protected] TABLE OF CONTENTS………………………………………………………….….(ii)

1.0 INTRODUCTION…………………………………………………………….…1 1.1 BACKGROUND………………………………………………………….……1 1.2 LEGISLATIVE FRAMEWORK…………………………………….………...1 1.2.1 Powers and Function……………………………………….………...4 1.2.2 Implementation Experience……………………………….…………6 1.3 PURPOSE OF THE HOUSING SECTOR PLAN…………….…………….7 1.4 METHODOLOGY………………………………………………….….………..8 2.0 OVERVIEW OF THE PROJECT CONTEXT……………………………….10 2.1 ANALYSIS OF THE SPATIAL CONTEXT……………………….………..10 2.1.1 Spatial Location………………………………………………………10 2.1.2 Settlement Patterns…………………………………………………..11 2.1.3 Major Roads and Economic Linkages……………………………..15 2.2 SOCIO-ECONOMIC ANALYSIS……………………………………………15 2.2.1 Demographic Analysis……………………………………………….16 2.2.2 Economic Analysis…………………………………………………...20 3.0 HOUSING DEMAND ASSESSMENT……………………………………….23 3.1 MEANS OF DETERMING HOUSING DEMAND NEED………………….23 3.2 SPATIAL LOCATION OF HOUSING NEED………………………………24 3.3 NUMERIC EXTENT OF HOUSING NEED…………………………………25

4.0 HOUSING AND SETTLEMENT TYPOLOGIES……………………………26 4.1 SETTLEMENT TYPOLOGIES………………………………………………26 4.2 HOUSING TYPOLOGIES……………………………………………………27 4.2.1 Low Income Housing………………………………………………...27 4.2.2 Middle Income Housing………………….…………………….…….40 4.2.3 High Income Housing………………………………………………..41

5.0 LAND IDENTIFICATION AND EVALUATION….………………………….41 5.1 DEVELOPMENT INFORMANTS…………………………………….42 5.1.1 Socio- Economic Factors and Demographic Profile……………...42 5.1.2 Physical, Topographical and Geotechnical Conditions…………..42

ii 5.1.3 Environmental Protection Areas……………………………………42 5.1.4 Infrastructure………………………………………………………….43

5.2 STRATEGIC SPATIAL LOCATION LOGIC………………………..43 5.2.1 Establish a Hierarchy of Settlements………………………………43 5.3 LAND OWNERSHIP PATTERNS……………………………………46 5.3.1 Current Land Uses ………………………………………………….46 5.3.2 Land Identified for Housing Projects……………………………….46 5.4 LAND IDENTIFIED FOR HOUSING DEVELOPMENT……………47 5.4.1 Spatial Integration of Identified Land……………………………….47 5.4.2 Capacity of Bulk Services……………………………………………49

6.0 PERFORMANCE MEASURES………………………………………………………52

7.0 INSTITUTIONAL FRAMEWORK……….……………………………………54 7.1 OVERALL APPROACH…..…………………………………………..54 7.2 MANAGEMENT STRUCTURE………..……………………………..56 7.2.1 Planning and Housing……………….……………………………….56 7.2.2 Housing Manager…………………….………………………………56 7.2.3 Integrated Planning………………….……………………………….57 7.2.4 Project Management…………………………………………………57 7.2.5 Engineering Services………………….……………………………..57 7.2.6 Support and Administration…………….……………………….…..58 8.0 CONCLUSINS AND RECOMMENDATIONS………………………………………58

9.0 REFERENCES

Table 1: Population Distribution by Municipality Table 2: Typology of Houses Table 3: Employment Status Table 4: Household Income per Month Table 5: Subsidy Quantum Table 6: Current Blocked Projects Table 7: 2008/9 Project List

iii Table 8: 2009/10 Project List Table 9: 2010/11 Project List Table 10: 2011/12 Project List Table 11: 2012/2013 Project List Table 12: 2013/14 Project List Table 13: 2014/15 Project List Table 14: 2015/16 Project List Table 15: 2016/2017 Project List Table 16: 2017/2018 Project List Table 17: Middle Income Table 18: Hierarchy of Settlements

Map 1: Layout Map Map 2: Land Use Map 3: Population Distribution Map 4: Social Facilities Map 5: Land Cover Map 6: Nodes and Corridors Map 7: Housing Projects

iv GLOSARY OF TERMS

BNG Breaking new Ground, New Human Settlement Plan (2005) CBD Central Business District CIDB Construction Industry Development Board CPF Community Policing Forum CPIX Consumer Price Index CS Community Survey DFA Development Facilitation Act (67 of 1995) DOH Department of Housing EPWP Extended Public Works Programme HSP Housing Sector Plan IDP Integrated Development Plan KZN KwaZulu Natal LED Local Economic Development LGHTA Local Government Housing and Traditional Affairs MSA Municipal Structures Act NSDP National Spatial Development Framework PHP People’s Housing Process PLS Project Linked Subsidy SAPS South African Police Service SDF Spatial Development Framework URP Urban Renewal Programme

v UMZIMKHULU MUICIPALITY Housing Sector Plan

1.0 INTRODUCTION

1.1 BACKGROUND

Umzimkhulu Municipality commissioned the review of its Housing Sector Plan, formulated in 2003. Significant institutional changes have since taken place that directly impact on both the municipal policy and planning context. First, the reconfiguration of municipal boundaries resulted in the incorporation of the Umzimkhulu Municipality into KwaZulu Natal in 2006. Therefore, housing development is now guided by the policies and development frameworks of the KwaZulu- mNatal Provincial Department of Housing. In this regard the KZN Department of Housing has formulated guidelines to inform the development of municipal housing sector plans in the province with the fundamental aim to plan for the development of integrated human settlements, systematically plan project expenditure and undertake capacity assessment of municipalities to execute housing development. Furthermore, provision of bulk infrastructure is a district competency which is now the responsibility of the Sisonke District Municipality.

To be able to logically execute housing delivery a municipality has to devise and co-ordinate a strategic Housing Sector Plan (HSP). Therefore the Housing Sector Plan is a critical tool that integrates Housing Development into municipal planning. Similar to other IDP sector plans, the Housing sector plan is a 5 year plan that is subject to annual review. This Housing Sector Plan prepared according to guidelines provided by the KwaZulu Natal Provincial Department of Housing intends to provide proposals for housing development in the municipality.

1.2 LEGISLATIVE FRAMEWORK

This section examines the mandate of the different spheres of government to provide clarity on the roles and responsibilities that are assigned to each sphere of government with regard to housing development. A proper understanding of mandates is important to ensure seamless co- ordination, avoid duplication, interference and confusion. Statutory roles and responsibilities do not substitute the need for ongoing communication between the different spheres of government to assign responsibilities by delegation of powers where capacity exists to carry out such functions.

The mandate of the Umzimkhulu Municipality with respect to housing development derives from the following pieces of legislation

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Section 26 (2) of the Constitution, Act 108 of 1996 confers the right to housing and prescribes that the state must take reasonable legislative and other measures within its available resources to achieve the progressive realization of this right. The Housing Act No. 107 of 1997 was enacted to provide a legislative framework to effect the right to housing. An examination of schedule B of the constitution highlights the limited role of municipalities in housing development. Beyond land and beneficiary identification, the role of the Umzimkhulu Municipality is that of constructive coordination of housing development within its area of jurisdiction. The core powers of implementation can be assigned to the municipality by the provincial government through assignment and delegation of powers.

Furthermore the following areas of the constitution have specific relevance to the assignment and delegation of powers.

. Co-operative Government

Chapter 3 of the Constitution deals with Co-operative Government. Of particular relevance is section 41 (1) which reads as follows:

All spheres of government and organs of state ithin each sphere must….

(f). not assume any power or function except those conferred on them in terms of the constitution. (g). cooperate with one another in mutual trust and good faith by coordinating their actions and legislation with one another.

. Local Government

Issues of the competence of local government are dealt with in Chapter 7 of the Constitution. Of particular relevance is section 152 (1) (b) and (c):

States, the objects of local government are: (b) To ensure the provision of services to communities in a sustainable manner; (c) To promote social and economic development

A further relevant section dealing with the developmental duties of Municipalities is section 153:

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A municipality must; a). Structure and manage its administration, budgeting and planning processes to give priority to the basic need of the community and to promote the social and economic development of the community; and b). Participate in national and provincial development programmes.

The powers and functions of municipalities are clearly outlined in Section 156 (1) and (2) and (4).

In short, the constitution assigns the items listed under part B of schedule 4 and part B of Schedule 5 of the Constitution to municipalities whilst responsibility for the items listed in part A of each of the respective schedules is reserved for national and/or provincial government as the case may be.

These latter responsibilities may however be assigned to the municipality as envisaged under 156 (4) provided the municipality has both the capacity to administer it and that the matter would be more effectively dealt with at local level. Responsibility in these matters is therefore at the discretion of the National and Provincial tiers of government.

. Municipal Structures Act No 117 of 1998, chapter 5, section 83 & 89 further outlines the powers and functions of municipalities

. The Housing Act of 1997 (Act 107 of 1997), states that, municipalities must develop appropriate strategies to facilitate housing development ithin their jurisdiction.

. The New Human Settlement Plan (Breaking New Ground, 2005) clearly articulates the intention of government to develop sustainable human settlements, to contribute towards the alleviation of asset poverty through housing. It concludes that asset poverty is a result of inadequate access to assets by individuals, households and communities including inadequate shelter (which manifests in badly located low cost and overcrowded dwellings), the inadequate provision of appropriate infrastructure and the inadequate provision of basic services such as health, safety, emergency services and education facilities amongst others. Post 1994 housing development has been urban biased. New policy highlights the need to address this through a stronger focus on rural housing instruments. Furthermore rural housing interventions provide government with an opportunity to facilitate the installation of infrastructure in rural areas (Breaking New Ground 2005)

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. The Municipal Systems Act of 1995 compels all municipalities to develop Integrated Development Plans (IDP) that are primary investment tools for all municipalities. With their respective sector plans they are subject to annual reviews. Through the IDP Municipalities are mandated to participate in all development planning activities that take place within their jurisdiction and ensure that they are aligned and informed by the overall government strategic thrust. The functions and powers of Municipalities are further described in chapter 5 of the Local Government Municipal Structures Act no. 11 of 1 as amended. The relevant sections are sections 83 to 89.

. Intergovernmental Relations Act of 2006 and the Municipal Systems Act of 2000 specifies that municipal plans have to be aligned with and compliment the development plans and strategies of other spheres of government.

The mandate and authority of Local Municipalities such as Umzimkhulu to execute the housing mandate is thus fairly complex. These issues have been discussed in some detail in this section in order to illustrate the critical need for proper co-ordination, consultation and delegation amongst the three spheres of government involved in housing development.

In the context of housing development it is noted that the original legislative functions coupled with budgetary controls resides concurrently with National and Provincial Government. Thus additional roles are assigned to municipalities through delegated authority.

1.2.1 Powers and Functions

The purpose of outlining the various competencies of the different spheres of government with respect to housing development is to illustrate the complexity of the interrelationships and the importance of assigning/delegating responsibilities through clear mandates and agreements. Second the assignment of roles and responsibilities has implications for budgeting. Seamless sequencing and scheduling of budgets across the three spheres of government is critical to achieving service delivery objectives. An in depth understanding of the Municipal mandate vis-à- vis the mandate and responsibilities of other spheres of government, organizations and/or role players is essential in order to avoid interference and confusion.

Each sphere of government has assigned roles and responsibilities with regard to the implementation of housing development. These powers and functions are examined below to provide clarity on the role that each sphere of government plays.

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The powers and functions are set out in Schedule 4 of the Constitution of the Republic of South Africa, the Housing Act (Act 107 of 1997) and the Municipal Systems Act (Act 32 of 2000). Outlined below are the roles of the three spheres of government:

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

Provincial Government is assigned with the responsibility to implement or facilitate the implementation of housing development. Within the context of the Housing Act, the core functions of the Provincial Departments is to provide low income housing opportunities to assist municipalities in housing development and further build their capacity. The provincial department of housing has budgetary control of the operational budget. Thus municipalities rely on the efficiency and effectiveness of this sphere of government. Consequently, the institutional state of the provincial department has a direct bearing on delivery at local level. In the course of implementing its operational duties the provincial sphere of government would from time to time develop policies responsive to the peculiarities of the province.

Local Government: The essential functions of a Municipality as per Section 152 of the Constitution include the following: . Identification of land for development . Identification and registration of housing beneficiaries

However, municipal activities are guided by the Integrated Development Plans that expect municipalities to take reasonable steps to ensure the provision of adequate housing on a progressive basis by setting out housing delivery goals. Thus the primary role of Local Municipalities is to plan for housing development. Whereas District Municipalities are tasked with the responsibility to provide bulk infrastructure that supports housing development. Second, District Municipalities through assignment or delegation of authority by provincial housing can implement housing development. This is mainly in instances where local municipalities lack capacity.

1.2.2 Implementation Experience

A number of developments have occurred in the policy environment since the formulation of the Housing Act of 1997. The changes result from insights gained over the years in the application of legislation and policy.

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There is a concerted drive by the Department of Housing to accredit metropolitan and district municipalities in the first instance and thereafter local municipalities that can demonstrate sufficient capacity to undertake the housing development function. While housing implementation is the responsibility of provincial housing departments, municipalities have assumed the implementation role as a developer with varying levels of success. In Umzimkhulu the municipal record as a developer of low income housing has had limited success due to a range of interrelated reasons to be discussed in detail in the project section of this report.

Central to the municipality’s shortcoming has een its institutional capacity to both plan and implement housing projects development. In Umzimkhulu this has been characterised by a sound housing sector plan that proposed an institutional structure for its implementation that was not instituted. Consequently, the municipality embarked on an ambitious housing development programme primarily using the People’s Housing Process PHP ithout the adeuate institutional capacity. Municipalities that have been able to successfully implement housing projects are those that have financial and human resources capacity. Municipalities that do not allocate both financial and human resources to undertake the housing functions argue that housing development is not a municipal function. This has hampered the pace of housing development.

Furthermore, the habitability of the settlements was not well considered, that is, the extent to which settlements had access to social services, that is, educational, health and police services was rarely considered. Particularly, the social services plan was rarely aligned to housing development. Consequently, the settlements have become crime hot spots

While the municipality has had a municipal housing sector plan since 2003, projects that were identified for implemented in the 5 year term of the plan still constitute the current and future projects list. Six low cost projects have been initiated since 1994. None of these projects has been completed to date due to a plethora of problems. Reasons attributable to the non- completion of these projects are amongst others, poor project management practices wherein payment as issued on incomplete milestones, failure to meet dead lines. The peoples’ housing process as a subsidy instrument that was preferred by the Eastern Cape Department of Local Government Housing Traditional Affairs with all its good intentions of creating employment opportunities for emerging contractors proved difficult to manage and is largely linked to the incomplete state of these projects and poor workmanship. Some of the surveyed sites have been illegally invaded. Moreover, the transfers of housing units have proved to be even more problematic with some beneficiaries that cannot be traced, while other units are not occupied by the registered beneficiaries.

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Thus this Housing Sector Plan is formulated to provide a comprehensive 5 year plan for housing development for the Umzimkhulu Municipality taking into account the past experience of the municipality in housing development.

1.3 PURPOSE OF THE HOUSING SECTOR PLAN

The question of how the three spheres of government go about planning and working to provide for a more seamless and expanding delivery of public services throughout the country remains a challenge. Part of the challenge, is the ongoing quest by the three spheres of government to find innovative ways to report key planning programmes and project based information in a meaningful manner to one another. Lack in context standards contributes to a current situation where officials in government spend an enormous amount of time trying to report on, manage, interpret and consolidate information to and from multiple government organisations. Similarly the Department of Housing realises that the expected integration of Housing Development into Municipal IDP’s has not taken place. Core to this challenge is that other government departments including housing cannot fund projects that are not reflected in municipal IDPs. In essence this means that there is no mechanism to hold each sphere of government accountable for housing delivery.

This document outlines a Housing Sector Plan for the Umzimkhulu Municipality that will set out a clear five year plan for housing development with tangible delivery goals. The main reasons for producing a Housing Sector Plan by the Municipality amongst others but not limited to the following is:

. To ensure effective allocation of limited resources particularly financial and human to competing potential development interventions. . To promote inter and intra government coordination and alignment. . To provide a formal and practical method of prioritizing housing projects and obtaining political consensus for the sequencing of their implementation. . To facilitate greater spatial linkages between the Spatial Development Framework and physical implementation of projects on the ground. . To deliberately place the housing sector imperatives in the municipal IDP. . To ensure effective subsidy budgeting and cash-flows both at Municipal and Provincial levels.

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

1.4 METHODOLOGY

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

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

PHASE 1: LOCAL PLANNING CONTEXT

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

PHASE 2: HOUSING SITUATION

The purpose of this phase is to gain an understanding of the state of housing development in the municipality. The following key areas of investigation are examined closely that is, . Housing backlog/demand, to determine the number of households in the municipality that do not have adequate shelter. Housing demand is obtained from the municipal housing demand data base. In its absence the census data is used to estimate demand that will later be verified by the municipality before it proceeds to implement housing projects. . Legal status of land, determines the ownership of land identified for housing development and whether it can be obtained within a reasonable period to avoid delays in project implementation.

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. Quantification of current projects, considers projects that are currently being implemented and the extent to which they contribute to reducing the overall backlog. . Identification of planned projects, the sector plan is a 5 year plan, thus it will identify projects that will be implemented over this period. Their scheduling is influenced by a number of factors, such as budget, land availability and provision of bulk infrastructure amongst others. . Integration, considers the extent to which the housing development is serviced by municipal services and other social services such as schools, health facilities and police stations amongst others.

PHASE 3: HOUSING DELIVERY

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

2.0 OVERVIEW OF THE PROJECT CONTEXT

A key underlying principle is that interventions must be underpinned by an appropriate understanding of the local context. This section, takes into account that the municipality has distinct attributes and peculiarities that will inform any forward planning process. This approach acknowledges that settlements are dynamic presenting different opportunities and needs such as the rapid increase of child and women headed households.

2.1 ANALYSIS OF THE SPATIAL CONTEXT

With regard to spatial planning the basic principle is one of acknowledging that the required post- apartheid transformation rests not only in addressing historic imbalances but rests fundamentally in the traditions of planning and development that are being established. The municipal housing plan should begin to make positive advances in the spatial restructuring, economic reorientation and the development of sustainable human settlements. This would lead to an incremental progression towards efficient and equitable settlements. The constitution allows that the right to adequate housing cannot be achieved immediately but must be achieved over time. However the municipality must demonstrate that it has worked effectively as possible to achieve this right. Consequently the municipality would need to devise a scheduled implementation program.

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2.1.1 Spatial Location

Umzimkhulu Local Municipality is one of the five local municipalities that constitute the Sisonke District Municipality (Map 1). It is the most populated municipality of the Sisonke District Municipalities, with a population of 243 242 individuals (Household Survey 2007). Umzimkhulu accounts for 33% of the population of the district, made up of 18 wards.

The municipality covers a total area of 2 436 square kilometre and is predominantly rural characterised by dispersed rural settlements with minimum economic activity in the hinterland save for trading stores and subsistence agriculture. Umzimkhulu is bordered by Ixopo to the North East, Underberg to the North West, Matatiel and Kokstad to the West and Harding to the South. mimkhulu ton is the municipality’s single uran centre that serves as an administrative centre is located along the only main road, that is, R56. The municipality has two smaller nodes that is, Rietvlei and Riverside.

R56 is the main inland connection between KZN and the Eastern Cape. The municipality is spatially disconnected from major centres of economic activity. Furthermore, poor administration over the years as Umzimkhulu was a Transkei homeland island resulting in under-investment in infrastructure resulting in an unattractive and a generally poorly planned CBD.

According to the KwaZulu Natal Provincial Growth and Development Strategy (PGDS) 90% of the province’s Gross Geographic Product (GDP) is produced in two identifiable corridors, that is the north-south corridor along the coast and the western inland corridor along the N3 highway. While the district is bisected by the north south corridor through St Faiths (in Ubuhlebezwe Municipality) is evident that the district itself is not a significant contributor to the provincial economy. According to the National Spatial Development Perspective (NSDP) the district has a low contribution to the Gross Value Added (GVA) of the country. Whilst the PGDSS seeks to ensure that effective development takes place throughout the province, future economic growth is likely to reinforce the existing patterns. This is further reiterated by the National Spatial Development Perspective (NSDP) that advocates the reinforcement of existing corridors and nodes through infrastructure investment. The principles are aimed specifically at focusing government action and investment to avoid the atering can approach and enable government to achieve maximum social and economic impact. Hence, in areas of low or no-economic potential the path of development and poverty reduction should be through a focus on investment in human capital development, that is, education, skills training, social welfare and sound rural planning.

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Consequently, the role of Umzimkhulu Municipality in the provincial and district economy remains constrained by its spatial form and its homeland legacy. While, this maybe the case, this is the only municipality that has recorded a very high growth of population in the Sisonke District. This further exacerbates the level of demand for services particularly housing development in the face of high demand. From a housing development perspective the nodal areas and movement corridors provide an ideal spatial location for housing development.

2.1.2 Settlement Patterns

The Umzimkhulu Local Municipality is predominantly rural. Apart from privately owned land in the urban centre of Umzimkhulu (Title Deeds) there are R293 Townships of Ritvlei, Ibisi and Clydesdale where ownership is through a Deed of Grant. The balance of the land in the municipal area is owned by the state. The bulk of land is held in terms of lesser forms of tenure. Most of the land is held communally or in trust by the Minister of Land Affairs.

Attainment of full rights to tenure requires laborious procedures that centre around application for the release of land to the National Minister of Agriculture and Land Affairs, particularly where formal means of tenure is required. Furthermore, transfer of state land from one sphere of government to another and subsequently to beneficiaries has not been completed in the 5 years that the current projects have been running. This practice delays development projects and the close off of housing projects in particular.

Population densities in the municipality are low. Very few areas of the municipality have population densities of between 500 and 1000 people per square kilometres. While the geographic area that has densities of between 0-5 people per square kilometres is extensive (Map 3).

Ultimately, all government programmes and activities find expression in space. The nature of the space economy of a region/municipality has important implications for meeting the social, economic and environmental objectives of a government. For instance in cases where human settlements are scattered and fragmented over vast distances, servicing becomes expensive, both in terms of initial capital investment and subsequent maintenance. On the other hand well connected settlements, with sufficient densities to enable better public transport, are far more conducive to spatial targeting of investment in nodes along such corridors. The municipality is characterised by three dominant settlement types that reflect the various levels of development within the municipal jurisdiction.

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These settlements are sparsely scattered throughout the entire municipal area and are surrounded by communal grazing and arable lands. Settlement densities have a direct correlation to accessibility. Areas that are accessible have higher population densities. Spatially, settlements with low densities are the furthest from main roads and feeder roads.

Levels of services in these settlements are generally low with the majority of the residential structures being self built. Apart form a few trading stores and agricultural activities there is generally no sign of economic activity outside the urbanized areas. Thus rural settlements serve as residential areas with a very limited economic base. Inhabitants are dependent on external sources of income and social welfare grants. The dispersed nature of these settlements has negative implications for the provision of bulk infrastructure. Provision of bulk infrastructure is cost effective where there are high population densities, whereas in low density settlements the cost of providing bulk infrastructure is very high.

Residents in rural settlements have always constructed their own dwellings. Furthermore the post 1994 government housing subsidy system set out requirements that automatically excluded rural areas. The project linked subsidy (PLS) was the preferred subsidy instrument with the following stipulations: . Proclamation of a formal township with a general plan issued by the Surveyor General . Serviced land with onsite water connections and water borne sewerage. . Formal titles had to be issued to beneficiaries

This has resulted to households deserving of housing support unable to access housing support. The introduction of the rural subsidy instrument is a fundamental policy shift facilitating equity. Consequently, government has identified rural housing as a delivery priority (BNG 2005). Housing subsidization can now be awarded in villages that are communally owned.

The municipality has resolved to develop low cost housing outside the urban centre where the majority of the people reside. This decision is further precipitated by the scarcity of land in the CBD. However, the rural areas have no economic base, thus the municipality will further exacerbate the current spatial pattern of isolated residential areas. Second, the implementation of this resolution requires an in-depth understanding of human movement patters, spatial location of demand, opportunities and convenience amongst others.

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To circumvent this problem the municipality should consider settlements that are along the main routes to ensure access to opportunities. The strategic response to the scarcity of land would be to reinforce secondary nodes, formalise peri-urban settlements and redefine the urban edge. b) Peri-Urban and Semi- Urban Settlements

The settlements of Ibisi and Rietvlei are R293 townships of higher settlement density, situated on the R56 main route, classified as semi-urban including Clydesdale. These areas provide opportunities for economies of agglomeration that will result to the provision of higher order services. These are obvious areas of development, however, the level of basic services (social, economic and infrastructure) are minimal to provide a viable option to the village centre. The key advantage of these areas is that land is owned by the state. Thus the following should be the development focus of the municipality in these areas: . Formalization of tenure (tenure upgrade) . Upgrade of services such as bulk infrastructure to be able to install water borne sewerage and in-house connections . Provision of social services c) Urban Settlements

The Umzimkhulu Town is the main urban centre, the administrative and business node of the municipality. Parts of the CBD situated below the 728 contour line depict the water level recorded during the 1954 and 1987 flood. The CBD, particularly the southern part including the settlement of Skoon Plaas located on the bank of the Umzimkhulu River a flood plane is at a risk of flooding. The Department of Local Government and Traditional Affairs commissioned an urban regeneration study. Arising from this study are proposals to relocate the CBD away from the flood plane. Due to the existing investment in the CBD and lack of land a flood prevention study has been commissioned to determine methods to mitigate the flood impact.

The main challenge faced by the municipality with regard to the development of its urban centre is availability of land and the current spatial footprint that reflects ad hoc planning. The Umzimkhulu town has experienced rapid urbanisation over the years. This population influx was not planned for, resulting in land invasions and emergence of informal settlements. Eradication of slums is a provincial priority with a mandate from the MEC of Local Government, Housing and Traditional Affairs (LGHTA) to eradicate slums by 2010.

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The rate of demand for both housing and land for housing development far outpaces the rate of housing development and land release by the municipality. Overall, the municipality has not been able to respond adequately to the range of needs in its urban centre. The municipality is currently implementing an Urban Renewal Project (URP) in the municipality that considers a range of development interventions that support housing development.

The village will however, continue to experience both inward and outward migration due to economic and social influences. In the municipal context it provides better quality of life in relation to its hinterland. On the other hand the municipality has been unable to provide real opportunities for the upwardly mobile young professionals who further migrate to major urban centres or set their homes in major centres and commute to the municipality for employment opportunities. For the sustained development of middle and high income housing reliable infrastructure and well developed social services such as schools and health facilities are the key criterion to determine location decisions.

2.1.3 Major Roads and Economic Linkages

The road infrastructure contributes immensely to economic growth and creates economic linkages. The interconnectedness of cities, towns and villages provides an enabling environment for stable and sustainable economic activities. Umzimkhulu Municipality is spatially disconnected with the N2 located on the South border of the municipality, while R56 is the main link into the provinces of KwaZulu-Natal and the Eastern Cape. R56 is currently being upgraded to facilitate mobility and provide a viable option to the N2 that cuts through the South Coast. Furthermore there is a rail link that connects Pietermaritzburg with Riverside, Singisi, Kokstad and Matatiel Consequently, freight movement into the municipality is constrained by access.

The total road network length is 1200km. The substantial network of district roads in the municipality is un-surfaced. These roads are inaccessible during the rainy season while in most instances access to some villages is through the use of bakkies. The municipality has embarked on an extensive road rehabilitation and upgrade programme. The gravel roads that have already been rehabilitated require consistent maintenance, especially during the summer rainy season. Access roads function as important feeder roads therefore they need to be well maintained.

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2.2 SOCIO-ECONOMIC ANALYSIS

Notwithstanding its large population the contribution of the municipality to the district and provincial GDP is very marginal. While the Sisonke District Municipality is one of the underdeveloped districts in the province it has a well developed agricultural sector, with the third largest agricultural output in the province. This is largely due to the developed commercial agricultural sector in the former natal municipalities. Umzimkhulu on the other hand remained a subsistence producer. As a homeland its key role was to provide cheap labour for the manufacturing and mining sectors of the former white South Africa. Consequently, the local population largely relied on remittances from migrant labourers and government services.

The municipality experiences high levels of poverty and unemployment. Government services are the major employer in the municipality, followed by transport services, retail and agriculture. The local economy is unable to provide new jobs and business opportunities. Consequently household incomes are low and irregular. Compounding the problem is the fact that the economy is not diversified with a population that has inadequate levels of education and training. Accordingly, a large proportion of the population in the Umzimkhulu Municipality is very poor with more than 77% of households that earn less than R9 600 per annum and live below the poverty line and only 10,2% of the population is employed.

Agricultural practices in the form of traditional farming are evident and form the subsistence livelihood of the producers and very little of the surplus is traded. Both crop and livestock farming is practised. Commercial agriculture is mainly in the form of forestry. The Local Economic Development Strategy of the municipality identifies agriculture as on of the key economic sectors with growth potential. These activities are considered as the basis for future expansion of commercial agriculture. This remains to be seen as vast tracks of land that were once used for subsistence farming lie barren. Second, the barriers to entry to commercial farming are high.

The development of housing shapes the spatial form. Failure to align residential places with areas of economic activities results in an inefficient spatial form. Ideally housing development should be strategically located and fully integrated to both social and economic development opportunities. Directly linked to this is the need to properly plan for a public transport system that creates access. However, in the case of Umzimkhulu where the municipality has no major economic activities the challenge for the municipality is to identify through its local economic development strategy socio-economic activities that will result in the improvement of the quality of life of local residents.

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2.2.1 Demographic Analysis

Demographic profiles provide an informed basis to undertake any development planning exercise in that they enable government to plan according to need and appropriately allocate funds for development. This demographic overview is based on the Community Survey of 2007 conducted by Statistics South Africa. This demographic overview is based on both the 2001 census data of Statistics South Africa and the 2007 Community Survey.

While it is accepted that the census data is now outdated it is however the only official government source of statistics that is used in parallel with the 2007 Community Survey. The 2007 Community Survey only updated economic indicators and global municipal statistics it does not disaggregate demographic information by wards, income and settlement types amongst others. Thus, this information is drawn from the 2001 Census data. It is expected that the demographic profile of the municipality may have considerable changed since the 2001 Census. Thus this information is used as generic indicators.

This section considers the population, household income, gender, age, education and employment profiles. a) Overall Population

The estimated municipal population based on the 2007 Survey is 243 242 people compared to the 2001 Census count of 174 338. Between 2001 and 2007 the population has grown by 28,3%. The municipality has the largest population in the district, followed by Ingwe Local Municipality, while KwaSani has the smallest population with less that 14 500 residents. Furthermore, only Umzimkhulu and Ingwe municipalities experienced population growth between 2001 and 2007 with the other municipalities experiencing significant decline, up to 20% in Ubuhlebezwe. This rapid increase in population poses further development challenges to a municipality that is characterised by underdevelopment.

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Municipality 2001 2002 2003 2004 2005 2006 2007

Umzimkhulu 174 337 178 190 182 128 186 153 190 267 194 472 243 242

Ubuhlebezwe 101 959 104 212 106 515 108 869 111 275 113 734 80 905

Greater Kokstad 56 285 57 529 58 800 60 099 61 427 62 785 46 724

KwaSani 15 309 15 993 16 346 16 707 17 076 14 281 15 647

Ingwe 107 558 109 935 112 365 114 848 117 386 119 980 114 116

TOTAL 455 448 465 513 475 801 486 315 498 002 509 008 499 268

Table 1: Population distribution by municipality

The minority racial groups constitute 1% of the total population while black Africans are the predominant population constituting 99% of the population. Outlined below is the breakdown in population according to the official racial groups as follows: White 0.01% Indian 0.3% Coloured 0.60% African 99% b) Gender Distribution

The municipal population is predominantly female with 57% of the total population being female. While it is generally accepted in South Africa that there are more females than males, the gender disparity in Umzimkhulu exceeds the normal variance of about 2% by 6% which points to internal factors within the municipality. The high levels of illiteracy, lack of employment opportunities and the historic role of the municipality as a labour reserve has seen significant migration of both skilled and unskilled labour to major urban centres of the country. Consequently the majority of households are female headed and live in poverty.

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The municipal population is young with the majority of the municipal population (62%) between the ages of 5 and 34. 32% of the municipal population is between the ages of 5-14. This reflects a high dependency ratio on the state for social services. With the high level of unemployment it is evident that this group is dependent on welfare grants.

The 15-34 age group constitute 30% of the population. This is a clear indication that there is a likelihood of new household formation. This is an economically active group that exerts pressure on the municipality to create employment opportunities. Life expectancy is fairly low. Only 6% of the total population is above 65%. Life expectancy is has a direct correlation with levels of education and poverty. e) Household profiles

According to the 2001 Census data there are 36 246 houses in Umzimkhulu made up traditional houses in rural villages, formal houses in urban and peri-urban areas informal housing and other forms of houses presumed to be informal dwellings. The 2007 Community Survey records a 17% (7 299 units) increase in the number of households to 43 545 that are unevenly spread across the 18 municipal wards.

The 17% growth on the number of households has been uniformly projected on the 2001 data. Inevitable this will not be precise as the growth in each segment may vary. Table 2 below illustrates the type of housing in the municipality by typology. However, as an overall indicator it serves the purposes of this exercise wherein the interest of the municipality is to ascertain where the highest level of demand is located. This information can be supplemented cadastral information.

HOUSING TYPOLOGY NUMBER % Traditional houses 35 271 81% Formal houses 6 967 16% Informal houses 870 2% Other form of housing 435 1% Total 43 545 100 Table 2: Typology of houses

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There is a direct correlation between levels of education and quality of life. High levels of illiteracy result in high dependency on the state to provide basic needs of an individuals i.e. education, shelter and food. Levels of education in the municipality are low with only 4% of the population that has attained tertiary education while 7% of the population has attained grade 12. 22% of the population has no formal education while 40% only obtained primary education with 27% that has obtained some secondary education. The ability of individuals to learn new skills through training to enable them to participate in the economy is limited by their levels of education. Consequently household incomes are low. 80% of the employed earn below R76 800 per annum.

Diagram 1: Levels of education

2.2.2 Economic Analysis a) Employment Status

There is a direct correlation between the levels of employment and levels of education. The analysis of the demographic profile of the municipality clearly reflects the low levels of economic activity in the municipality and the resultant low incomes. Table 2 below illustrates that only 10% of the municipal population has full employment, while 5% has seasonal employment, while the unemployed make 22% of the municipal population. More than 10% of the population is dependent of state welfare in the form of pensions, disability grants and child grants.

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Status Number % Employed 24 324 10% Unemployed 53 513 22% Scholar/student 58 378 24% Homemaker or housewife 34 053 14% Pensioner 12 162 5% Unable to work due to disability or illness 12 162 5% Seasonal worker 2 432 1% Chooses not to work 19 459 8% Could not find work 29 189 12% Total 243 242 100 Table 3: Employment status b) Household incomes

Levels of income in the municipality are low coupled with high levels of unemployment as illustrated by table 2 above. 52% of households in the municipality have no income. The majority of the population (87%) earns less than R1600 per month which is classified as indigent according to the indigent policy of the Umzimkhulu Municipality. 93% of households in the municipality earn below R3 200 per month. In terms of government legislation households that earn below R3 500 per month qualify for full government housing subsidy. The levels of income in the municipality reflect the high probability of dependency on government support and the inability of households to adequately meet their housing needs.

The municipality is implementing a number of economic development strategies to stimulate the local economy to enable it provide employment to its residents. However, it is evident that the low levels of education and skills remain the primary constraints to the achievement of growth and development in the municipality.

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Income Range Percentage Number No Income 52% 126 486 R1-R400 17% 41 351 R401-R800 11% 26 757 R801-R1600 7% 17 026 R1 601-R3 200 6% 14 594 R3 201-R6 400 4% 9 729 R6 401- R12 800 2% 4 865 R12 801- R25 600 1% 2 432 R25 601- R51 200 0% 0 R51 201- R102 400 0% 0 R102 401- R204 800 0% 0 R204 801 0% 243 242 Table 4: Household income per month b) Key Economic Sectors

The municipal Gross Domestic Product (GDP) was recorded at R667.9 million in 2004. The three main contributors to the municipal GDP together making up 64% are: . Forestry . Wholesale and retail . Community services

Commercial forestry makes up the most of the income generated in the municipality. Singisi Forest is the biggest forest plantation with species used for furniture making, building materials, chemicals and cosmetics. Other plantations grow gum and wattle trees.

Other forms of agriculture are mainly practiced on a subsistence basis. While the Sisonke District Municipality has the third largest agricultural output in the KwaZulu Natal Province Umaimkhulu Municipality has a significantly low output. This is due to the practice of subsistence farming in the former homeland municipality whose sole objective was to provide cheap labour for the former RSA economy. Thus its agricultural potential remains dormant with large tracks of land lying bare while the locals have very limited agricultural skills. Furthermore, entry into the agricultural sector is limited by the high cost of the factors of production such as equipment.

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The second largest employment sector is community services which includes public administration, education, health and social work amongst others. The third largest employment sector is trade which includes wholesale and retail trade, repair of motor vehicles, personal and household goods, accommodation establishments that to a large extent fall within a category of the formal economy.

Furthermore, the municipality has a substantial informal economy that is growing. The activities of this sector range from people selling on tables on the street pavements, mobile vendors and the Transido Complex in the CBD. Whereas the tourism sector is a considered a sunset sector in the municipality. It is currently underdeveloped and further constrained by levels of infrastructure development and underdeveloped tourism products that do not provide a coherent tourism experience.

Overall the municipal economy experiences lower growth rates than the provincial economy. The GDP per capita of Umzimkhulu is still less than a sixth of the KwaZulu Natal average. The municipal economy performs poorly in relation to the national indicators. The percentage of people who live in poverty is substantially higher than the national average.

3.0 HOUSING DEMAND ASSESSMENT

3.1 MEANS OF DETERMINING HOUSING DEMAND/NEED

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

There are two main ways of determining housing demand/need within municipal areas. The first method uses census statistics. The housing backlog estimates based on census data takes into account both the population residing in informal settlements, and the creation of housing opportunities for those in inadequate formal shelter, such as outhouses or under conditions of over-crowding. There are two main limitations to this method, first the data is now considered outdated. Second, this approach does not take into account the housing need in tribal areas and farming settlements.

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The second means of determining housing demand/need is through the analysis of the housing waiting lists. Housing lists are also not devoid of shortcomings. Amongst others this includes applicants putting their names down in more than one municipal housing waiting list, while other potential beneficiaries have not placed their names on these lists. In this instance a housing waiting list has been compiled by the municipality. This reflects the levels of demand for housing support. The data base is a useful planning tool for the municipality to quantify the extent of housing need in the municipality.

The list of beneficiaries on the data base should be used to allocate houses to beneficiaries. It is important to note that the data base is no promise to applicants that they will be guaranteed a subsidy. Ideally, it should be viewed as a planning, reporting and prioritizing tool. Housing demand remains a moving target impacted upon by urbanization, population growth, phenomenon of households becoming smaller. The key role of the municipality is to determine demand and negotiate supply.

In July 2008 there were 14 00 beneficiaries on the municipal housing waiting list. Of the 14 000 beneficiaries on the waiting list 11 600 have applied for low cost housing whereas 3 400 are for middle income housing. While the housing list is a useful tool to gauge the extent of housing need in the municipality it is currently . It is not linked to the national Housing Subsidy System to verify whether the applicants qualify. . It is captured using Microsoft Excel that does not allow provide for income, gender and spatial representation of the information.

Fuelling the demand for housing is the 28,3% growth in population between 2001 and 2007. There are a number of factors that are attributed to the increasing demand for housing support: . The rural urban migration resulting in an increased demand for urban housing. This has seen an increase in a number of informal settlements. As part of the slums clearance programme these receive government priority. . The pace of housing development has been relatively slow thus demand for housing opportunities far outweigh the supply. . Reduction in household sizes and new household formations

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3.2 SPATIAL LOCATION OF THE HOUSING NEED

In this housing sector plan it can be concluded with certainty that housing need is widespread across the municipal areas. Based on this assertion this section, only attempts to determine which areas have the highest number of people in need.

In terms of the municipal housing list, ward 16 and 17 have the highest number of registered applicants. Ward 16 is constituted of the lower parts of Mvubukazi next to the Mvumbukazi River, Mbiweni, Nyenyezi and the urban centre (Sisulu, Majalidini, White City, Sisulu and Skoonplaas. Ward 16 has the highest population densities in the municipality with densities ranging from 500 to 1000 people per square metre. Furthermore, the highest number of informal units is found in the urban centre particularly in Skoonplaas and Sisulu. Ward 17 is made up of the peri-urban centres of Clydesdale, Ebuta Farm and Fountain. These areas have population densities of ranging from 250 to 1000 people per square kilometre.

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

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

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3.3 NUMERIC EXTENT OF HOUSIG NEED

Three information sets have been used in this plan to determine the numeric extent of housing need in the Umzimkhulu Municipality. . Greatest need based on poverty: this utilizes census information on household income. Based on the census household income information, 93% of the households in the municipality qualify for housing support based on their income status that is less than R 32 00 per month which qualifies them for a full government housing subsidy. While this income segment may attempt to construct their own shelter, it often does not meet the engineering norms and standards to be classified as safe shelter.

. Greatest need based on type of dwelling: census data on dwelling type provides a means to determine the extent of need. This provides a cursory indicator of housing backlog. According to information on housing typology 84% of households are not housed in formal dwellings. 81% of the households are housed in traditional dwellings. While traditional dwellings offer more than adequate housing in idyllic setting, the reality is that many of the traditional dwellings do not provide satisfactory shelter, compounded by the absence of basic services and amenities. The New Human Settlement Plan, Breaking New Ground argues that rural housing development should be considered as a tool to bring services to rural areas. In a municipality where 45% of the population has no access to piped water, 35% of the population has less than adequate sanitation facilities by RDP standards, while 21% of households have no electricity. Thus rural housing seems a relevant tool to deliver services in areas of greatest need, that is, the tribal areas of the municipality. 2% of the households live in informal settlements. Eradication of slums is a provincial priority. Only 16% of the municipal residents live in formal housing. Based on this analysis, 84 % of the municipal population is in need of housing support, that is 36 576 households. 3730 units are currently being constructed by the municipality.

Furthermore, there will be residents who qualify in terms of legislation but reside in formal dwellings. The focus is on those who live in less than adequate shelter. Prioritization program needs to take this factor into consideration, as there are a limited number of subsidies per municipality. Therefore, housing projects need to be delivered primarily in areas of greatest need. Thus is can be assumed that these two dwelling types constitute the means to quantify the demand that will be addressed by this housing sector plan.

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. Greatest need based on the housing list: the municipality has an active housing waiting list, in this it is recorded that 14 000 beneficiaries are registered for housing support. Of the 14 000 beneficiaries on the waiting list 11 600 have applied for low cost housing whereas 3400 are for middle income housing. While the housing list can be classified as the most accurate means of determining the extent of need at face value. In a municipality like Umzimkhulu where levels of illiteracy are high the probability of households that are in need not registered on the data base are high. Second, housing registration education has not taken place in the municipality. Third, housing development focused in urban and peri-urban settlement, thus rural residents may not be aware of their qualifying status for housing support.

. Greatest need based on project list: The municipality has a list of project intended for implementation. There are two categories of these projects that is, planned projects and future projects making up a total of 13821 units. This list includes both low income and middle income housing. This figure is slightly lower than the list of registered beneficiaries.

These three information sets clearly reflect a high demand for housing support in the municipality and thus the proposed projects are intended to respond to this demand.

4.0 HOUSING AND SETTLEMENT TYPOLOGIES

In Umzimkhulu housing needs vary greatly across a wide spectrum of housing needs from low income to high income. The different housing related legislation, guidelines and policy documents across the whole housing spectrum must be taken into account to provide an aligned housing plan for the for the municipality. The municipal housing list clearly reflects a demand for both low income and middle income housing opportunities. Fundamentally, government intervention in the housing market is directed at the shelter needs of indigents. While indigent support constitutes a significant portion of the Umzimkhulu Municipality, the municipality has taken holistic approach to incorporate other housing typologies.

4.1 SETTLEMENT TYPOLOGIES

Within the Umzimkhulu municipal area four types of housing patterns can be identified; . Urban Formal housing that exists on land where services and infrastructure are available. Progressive densification and infill can be accommodated as services have been upgraded. These types of housing development is urban based and covers the spectrum of high, middle and low income groups.

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Houses are solid built with bricks and solid roofing and normally secure. Examples of opportunities for densification still exist in Emajaridini where the original properties are more than 2 000 square metres in extent. While some residents have done subdivisions many of these properties are in their original state. The municipality is encouraged to approve these subdivisions to increase densities. Furthermore, there is land originally zoned as commonage provides opportunities for infill. The commonages are a logical geographical point for the expansion of the municipality. Poor enforcement of municipal by-laws over the years has resulted in the erection of illegal structures.

. Peri-urban or rural based settlements, housing was provided on an agricultural based area and subsistence economic activities were prevalent. However, the subsistence livelihoods diminished to a very marginal scale over the years. While not at the same level as in the urban core basic services are provided in the urban. These settlements must be prioritized for formalization and service upgrade.

. Tribal based settlements in the former Transkei communities were relocated from sparse rural settlements to densely populated rural settlements as part of the trust system with a demarcation of commonages, farming fields. These settlements have both formal, semi- formal and traditional homesteads.

. Informal settlements they take place in on an unplanned basis close to serviced areas. Notably two significant settlements emerged on an informal basis, that is, the Sisulu and border settlements. Services are being installed and the process of formalization instituted. The major challenge faced by the municipality is with regard to the spatial planning of these settlements as their emergence was ad hoc with no consideration of spatial location rationale. Backyard shacks are also common.

4.2 HOUSING TYPOLOGIES

At an executive meeting of the 30th of July the municipal executive committee mandated that housing development in the municipality moves beyond its constitutional obligation of developing low cost housing to include other housing typologies such as rental stock, middle and high income housing. This section outlines the various housing development projects and proposals of the municipality.

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4.2.1 Low Income Housing

Provision of low cost housing is a mandatory function of government that derives from the constitution as outlined in Section 1 of this report that deals with the legislative framework. The population segment targeted by low cost housing ranges from households that have no income to those that earn R3 500 per month. Inevitable the highest demand is in this income segment comes from indigents and further dependent on government support for basic services. Furthermore in terms of the Municipal Property Rates Act, properties that are valued at less than R150 000 are exempted from municipal rates. This means that there is no direct revenue income for the municipality. a) Subsidy Instrument

This section outlines the subsidy instruments and quantum utilized to provide low income housing as outlined in by the government gazette. It shows the extent to which government provides financial support utilizing various subsidy instruments. Gauging by the high levels of unemployment in the municipality coupled with very low levels of income it is fairly evident that the majority of residents that require housing opportunities require a full subsidy. This section illustrates the government subsidy instruments for low income housing.

Individual and Project Top Structure Own Contribution Product Price Linked Subsidies Funding only R0 - R1 500 R43 506.00 None R43 506.00 R1 501 - R3 500 R41 027.00 R2 479,00 R43 506.00 Indigent: Aged, Disabled and Health Stricken R0 - R43 506.00 None R43 506.00 R3 500 Institutional Subsidies Institution must add At least R43 R0 - R3 500 R41 027.00 Capital 506.00 Consolidation Subsidies R0 - R1 500 R43 506.00 None R43 506.00 R1 501 - R3 500 R41 027.00 R2 479,00 R43 506.00 Indigent: Aged, Disabled and Health Stricken R0 - R43 506.00 None R43 506.00 R3 500 Rural Subsidies R0 - R3 500 R43 506.00 None R43 506.00 People's Housing Process R0 - R3 500 R43 506.00 None R43 506.00

Table 5: Subsidy quantum for 40m2 houses in the 2008/2009 financial year

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The subsidy instruments operate as follows: . Project Linked Subsidy, is the subsidy instrument that is allocated to beneficiaries that have outright tenure rights, or the housing development will result in full tenure being conferred to the beneficiaries. This subsidy instrument favours urban settlements. The subsidy instrument is contractor driven.

. Institutional Subsidy is a subsidy that is intended for institutions that provide welfare services to the marginalised sectors of the economy such as the aged or children. The institutional subsidy is set at R41 027 per annum for the 2008/9 financial year.

. Consolidation Subsidy is awarded to beneficiaries that benefited from the previous government support. It is supposed to be a top-up subsidy. Beneficiaries that earn less than R1 500 per month are eligible for a full government subsidy, whereas those who earn between R1 501 and R 3 500.

. Rural Subsidies are intended for rural beneficiaries who have less formal means of tenure. The requirement for project approval is a social-compact agreement with the owners of land.

. T i is based on the community based approach to housing development wherein emerging local contractors are appointed to develop housing through the extended public works programme. b) Low Income Projects

While the municipality has had a municipal housing sector plan since 2003, projects that were identified for implemented in the 5 year term of the plan still constitute the current and future projects list. Six low cost projects have been initiated since 1994. None of these projects has been completed to date due to a plethora of problems. Reasons attributable to the non- completion of these projects are amongst others, poor project management practices wherein payment was issued on incomplete milestones, failure to meet dead lines, municipal capacity to manage PHP projects. The peoples’ housing process as a susidy instrument that as preferred by the Eastern Cape Department of Local Government Housing Traditional Affairs with all its good intentions of creating employment opportunities for emerging contractors proved difficult to manage and is largely linked to the incomplete state of these projects and poor workmanship. Some of the surveyed sites have been illegally invaded. Moreover, the transfers of housing units have proved to be even more problematic with some beneficiaries that cannot be traced, while other units are not occupied by the registered beneficiaries.

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This section of the report considers the status of projects in the Umzimkhulu municipality post 1994. It presents the extent to which the housing backlog has been met.

The housing demand assessment section of this report clearly highlighted the extent of the backlog with the highest demand recorded in the low cost segment. The backlog reflects the national and provincial trend wherein housing development has focused on urban and peri-urban areas with no housing development on tribal land where the majority of the population resides. To ameliorate this trend the policy focus of the KwaZulu-Natal Provincial. Housing Department shifted in 2002 and subsequently the national policy (BNG 2004) to include rural housing. c) Current Projects

Current projects in this exercise include blocked or defective projects. Annexure 1 provides a detailed report for each project summarized hereunder. There is currently no active low income housing project in the municipality as all projects have been blocked to allow the Department of Housing to undertake further investigations to identify resources required to complete these projects. It is critical that these projects are reinitiated and completed as a matter of urgency before new projects are initiated. A project status report prepared by the Eastern Cape Department of Local Government, Housing and Traditional Affairs clearly shows four categories of problems with regard to these blocked projects: . Water and Sanitation, the water and sanitation connection for all the projects is incomplete whereas payments have been effected. Consequently beneficiaries refuse to sign happy letters . Land Transfer, there are delays in the transfer of land from the national government to the municipality for the purposes of title deed handover to beneficiaries. . Land Invasions, sites approved on the Surveyor General’s map have een invaded in Clydesdale resulting in a shortage of sites for approved beneficiaries. . Structural Defects, the quality of the workmanship on some of the units is of poor standard. Furthermore there are units that have been affected by a tornado in Riverside

The Sisonke District Municipality passed a resolution at its 1 October Executive Council Committee Meeting to proceed with the implementation of water and sanitation connections. A parallel process of seeking additional funding for the top structure is in place.

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Project Name No of Subs Approved Completed Constructed Project cost Variance Expenditure as at Remaining budget beneficiaries transfers units March 07 Clydesdale 900 898 529 501 R22, 220, 000 R3 817 665.00 R18 341 658.00 R8 698007.00 Ibisi 636 634 None 560 R15 040 379.00 R2 155 362.00 R16 731 255.00 R464 486.00 Riverside Phase 1 500 499 None 470 R9 205 650.00 R1 286 387.00 R9 835 256.00 R656 781.00 Riverside Phase 2 500 472 None 337 R11 860 00.00 R2 006 500.00 R11 141 325.00 R2 725 175.00 Ext 5&6 709 705 278 667 R12 916 225.00 R2 003 211.00 R14 431 146.00 R488 290.00 Umzimkhulu Villages 235 230 141 N/A R4 770 500.00 R2 440 986.00 R3 439 800.00 R3 771 686.00 Table 6: Current Blocked Projects, PHP

Outlined in table 6 above, are the 6 blocked projects and their status on March 30 2007. Annexure 1 of this report provides a detailed status report that needs to be read with this summary report. Consequently, for the financial year commencing on 1 April 2007 to date there has been no construction activity on all the projects. Thus, with the approval of the water and sanitation budgets by the SDM it is critical that these projects become classified as priority projects.

A comprehensive report that quantifies additional financial resources required to complete these projects is currently being prepared by the KZN Department of Local Government, Traditional Affairs and Housing and will be made available to the municipality before the end of October. The intention of the Department is to ensure that these projects are implemented in the 2009/10 financial year.

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The municipality has a lengthy list of planned projects. These projects have been scheduled in order of priority over a 5 year period in line with the duration of this plan at a meeting convened on 3 September 2008. These projects have not been assessed for feasibility. Thus, on the year of commencement it is envisaged that they will undergo pre-feasibility assessment. Consequently, cash flow projections of these projects have not been done.

Table 7: 2008/9 Project List No Project Area Ward No of Subsidy Units Instrument Mvubukazi 9 500 Rural Mabandla 500 Rural Khiliva 500 Rural Roodevaal 350 Rural Extension 9 & 10 16 100 PLS Skoon Plaas 16 50 PLS

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Table 8: Project list 2009/10 No Project Area Ward No of Subsidy units Instrument 1 Rooiport (15), Tsawule (100), Goso (60), 1 475 Rural Lucingweni (150) Lukhasini 150 2 Edgerton (210), Mzintlanga (298) 2 508 Rural 3 Mncweba, Bomvini 3 Rural 4 Donstsumlenzana (180), Mt Sheba (100) St 4 240 Rural Augustine (60) 5 Lukhanyeni 5 350 Rural 6 Matsheni 6 500 Rural 7 Gudlintaba (250), Nqgokozweni (250) 7 500 Rural 8 Senti (100), Fourteen (100), Polanyoni 8 450 Rural (100), Dresini (100), Mnceba (50) 9 Chancele Phase 1 9 500 Rural 10 Kroomdraai, Nkampini, Ntshongo, Juta 10 Rural 11 Ethembeni (200), Ethafeni (170) 11 370 Rural 12 Nxaphanxapheni (150), Rietvlei (150), 12 450 PLS Mbuzweni (150) 13 Teekloof (230), Farm (350) 13 580 Rural 15 Roodeval (100), Memeka (100), Deepdale 14 400 Rural (100) Dovedale (100) 15 Summerfield 15 490 Rural 16 Ntlambamasoka (500), Mankofu (200) 16 700 Rural 17 New Clydesdale (362) 17 362 PLS 18 Esikhulu (500) 18 500 Rural

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Table 9: Project List 2010/11 No Project Area Ward No of Subsidy units Instrument 1 Ndawana No. 1 (300), Ziqalabeni (180) 1 480 Rural 2 Corinth Phase 1 (500) 2 500 Rural 3 Ntsikeni 3 Rural 4 Mkangala (300) 4 300 Rural 5 Sidadeni (350), Syria (150) 5 500 Rural 6 Matsheni Phase 2 (200), Mafabela (300) 6 500 Rural 7 St Barnabas 7 350 Rural 8 Ngunjini (500) 8 500 Rural 9 Nolangeni (250), Lundini (150), 9 500 Rural Trust (100) 10 Mpola, Gaybrook, KwaFile, Klipspruit 10 Rural 11 KwaMeyi Phase 1 (500) 11 500 Rural 12 Mbulumaba (80), Tshaka (80), 12 320 Rural Mbumbane (80), Masamani (80) 13 Matsheni Phase 1 (500) 13 500 Rural 15 Sphahleni (200), Lukhetheni (150), 14 450 Rural Mantuzeleni (100) 15 Angus Farm 15 500 Rural 16 Old Clydesdale (300) 17 300 Rural 17 Esikhulu Phase 2 (100), 18 450 Rural Paninkukhu (300), Zimbongolweni (50)

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Table 10: Project List 2011/12 No Project Area Ward No of Subsidy units Instrument 1 Mangeni (200), Delamzi (300) 1 500 Rural 2 Corinth Phase 2 (508) 2 508 Rural 3 Malenge 3 Rural 4 Nomarhanjana (350), Magqagqeni (300) 4 650 Rural 5 Gwijendlini (275), Ndabayilali (275) 5 500 Rural 6 Magcakini Phase 1 6 500 Rural 7 Nazareth Phase 1 (500) 7 500 Rural 8 Mahawini (500) 9 500 Rural 9 Ngqumarheni 10 Rural 10 KwaMeyi Phase 2 (100), 11 460 Rural KwaMathathane 360) 11 Rawuka (50), Mahlomane (80) 12 130 Rural 12 Ntlabeni Phase 1 (500) 13 500 Rural 13 Mnqumeni (200), Ndlovini (50), 14 700 Rural Nhlangwini (50), Nkapha (150), Tshali (150), Mtshazo (100) 15 Longkloof (268), Ngceni (240) 15 508 Rural 15 Strangers Rest (160) 17 160 Rural

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Table 11: Project List 2012/13 No Project Area Ward No of Subsidy units Instrument 1 Sangweni (10), Ndawana No.2 (200), 1 390 Rural Mthintwa (180) 2 Enyanisweni Phase 1(400) 2 400 Rural 3 Matshitshi, Skhewini 3 Rural 4 Marhewini (200), Nkukhwini (80) 4 280 Rural 5 Antioch (330), Ngwangwane (320) 5 650 Rural 6 Magcakini Phase 2 (150), 6 450 Rural Ndzombane (300) 7 Nazareth Phase 2 (500) 7 500 Rural 8 Mbumbulwana Phase 1 (500): Goxe (150) 9 500 Rural Jabula (200), Cebe (150) 9 Readsdale 10 Rural 10 KwaJames (405) 11 405 Rural

11 Matsheni Phase 2 (50), 13 350 Rural Ntlabeni Phase 2 (300) 12 Ndayindum(70), Ndideni(50), Dresini (300) 14 650 Rural Mabhisana (80), Plazini (200) 13 Gloucester (400), Vukuzimele (115) 15 515 Rural 14 Gijima (220) 17 220 Rural 15 Mvolozana (400), Mthaleni (150) 18 550 Rural

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Table 12: Project List 2013/14 No Project Area Ward No of Subsidy units Instrument 1 Khayeka (300), Bhuqwini (180) 1 480 Rural 2 Enyanisweni Phase 2 (112) 2 112 Rural 3 Deda, Noziyingili 3 Rural 4 Nongingqa (400), Masamini (60) 4 460 Rural 5 Thonjeni (600) 5 600 Rural 6 Diphini (300), Top (150) 6 450 Rural 7 Maduna (200), Marwaqa (150), 7 500 Rural Sayimane (150) 8 Mambulwini Phase 1 (500) 9 500 Rural 9 Ncambele, Njunga, Raloti 10 Rural 10 Esihlontlweni (320) 11 405 Rural 11 Mfundweni Phase 1 (500) 13 650 Rural 12 Thornbush (128), Bombo (380) 15 508 Rural 13 Highlands (360) 17 360 Rural 14 Mmisa (250), Ntlangwini (250) 18 500 Rural

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Table 13: Project List 2014/15 No Project Area Ward No of Subsidy units Instrument 1 Matshahlolo (300) 1 300 Rural 2 Sidikideni Phase 1 (500) 2 500 Rural 3 Deda, Noziyingili 3 Rural 4 Nongingqa (400), Masamini (60) 4 460 Rural 5 Thonjeni (600) 5 600 Rural 6 Diphini (300), Top (150) 6 450 Rural 7 Maduna (200), Marwaqa (150), 7 500 Rural Sayimane (150) 8 Mambulwini Phase 1 (500) 9 500 Rural 9 Ncambele, Njunga, Raloti 10 Rural 10 Esihlontlweni (320) 11 405 Rural 11 Mfundweni Phase 1 (500) 13 650 Rural 12 Thornbush (128), Bombo (380) 15 508 Rural 13 Highlands (360) 17 360 Rural 14 Mmisa (250), Ntlangwini (250) 18 500 Rural

Table 14: Project List 2015/16 No Project Area Ward No of Subsidy units Instrument 1 Sidikideni Phase 2 (112), Luphongolo (323) 2 445 Rural 3 Nongidi 5 350 Rural 4 St Paul Phase 2 (200), Gudlintaba (280) 6 480 Rural 5 Mbumbulwana Phase 2 (200), 9 500 Rural Mambulwini Phase 2 (300) 6 Kokshill Pase 1 (700) 13 700 Rural 7 Moyeni (101) Chamto (158) 15 209 Rural 8 Hopewell (410) 17 Rural 9 Bontrand (300), Magwala 9200) 18 Rural

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Table 15: Project List 2016/17 No Project Area Ward No of Subsidy units Instrument 1 Moyeni Phase 1 (500) 6 500 Rural 3 Kokshill Phase 2 (700) 13 700 Rural 4 Nkungwini (105), Mastela (120), 15 405 Rural Kroemhoek (180) 5 Manyenya (250), Machunwini (350) 18 600 Rural Mambulwini Phase 2 (300)

Table 16: Project List 2017/18 No Project Area Ward No of Subsidy units Instrument 1 Moyeni Phase 2 (100), Cacatho (400) 6 500 Rural 3 Kokshill Phase 2 (700) 13 700 Rural 4 Phumamuncu (221) 15 221 Rural 5 Moyeni Phase 2 (100), Cacatho (400) 6 500 Rural

e) Delivery Mechanism

It has been noted elsewhere in this report that the PHP was the preferred subsidy instrument in the municipality informed by the need to create employment opportunities. While this commitment remains it has to be balanced with the need to deliver quality housing in the municipality. Second, through its procurement policy the municipality undertakes to spend 75% of its procurement budget locally. It therefore means that local contractors that are CIDB (Construction Industry Board) accredited. Should it be established that there is insufficient local capacity the municipality and the DOH will need to consider innovative procurement that will to as much as possible ensure local spending and skills transfer.

It is an established fact that the construction costs and the high level of construction activity in the country has resulted in loss of interest in the construction of low cost housing by established contractors. Consequently, economies of credited. Similarly, problems associated the use of emerging contractors are well documented. It is therefore important that project implementation is closely monitored. The institutional framework stresses the importance of monitoring and proposed suitable personnel.

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4.2.2 Middle Income

The municipality is currently implementing 1 middle income housing project. There is demand for an additional 3000 units according to the municipal housing list. Areas of Nyenyezi, Ebuta, and KwaMabholidi have been identified for middle income housing. Government partly subsidises middle income housing for people who earn between R3 500 to R7 500.

The current economic conditions have caused basic housing to be unaffordable to many South Africans. Some of the factors that have contributed to this economic crisis are as follows: . Constantly rising interest rates (current prime rates of 15,5%) . High inflation rate Consumer Price Index (CPIX) of 10% . Inflation on construction material, higher than CPIX with the boom in the construction sector . Global economic factors, collapse of the USA financial sector, increase in oil and food price

Government’s direct intervention in the property market has been to ensure provision of shelter for low income earners and lower middle class. The assumption is that the property market will provide for the middle class and high income earners. However, the property market can no longer cater for the housing needs of the working class. Consequently, this class is being eroded down to low income category while they do not qualify for full government support.

In Umzimkhulu levels of income are very low. The highest income in 2001 was R25 600. Only 3% (about 6000 households) of the municipal population could afford its housing. This is the population category that is the main source of residential rates income. Hence it is important for the municipality to develop models of rolling out middle income housing. The municipality can enter into creative partnerships with the private sector to develop this housing segment. A common example of a PPP that is structured to roll out middle income housing is through land sale agreements, wherein the municipality provides at a nominal fee to ensure the implementation of its proposal by the private sector. a) Subsidy Instrument

Middle Income Subsidy is awarded to beneficiaries who earn between R3500 and R7 500 per month. The individual contribution varies according to the affordability of the household.

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The private sector is the key player in the financing and implementation of middle income housing with the municipality being the enabler. c) Projects

The project scheduling has been informed by the following rationale: . The need to have the land transferred from national government to the municipality. . To allow the municipality to enter into a land sale agreement with a developer.

Table 17: Middle Income No Project Area Ward No of Year Plan Units 1 Mbizweni 16 500 2011/2012 2 Majalidini Extension 16 500 2012/2013 3 Border (behind Total Garage) 17 300 2013/14 4 KwaMabholodi 17 500 2013/2014 5 Border 17 500 2013/14 6 Border Rental Flats 17 30 2013/14

4.2.3 High Income

Housing opportunities for high income earners are provided through market mechanism. In this instance the role of the municipality identify and zone land for high income housing development. Considering the land ownership patterns that result in the scarcity of land the municipality can intervene in the market through sale of land either to individuals or developers through public auction.

5.0 LAND IDENTIFICATION AND EVALUATION

Housing development can serve as a catalyst to socio-economic development of the Umzimkhulu municipal area if the spatial positioning of housing projects is carefully considered. The development of housing at the correct/best position will enhance the municipal spatial form and lead to the optimization of developable land, bulk infrastructure, social services and create economies of agglomeration for further development of emerging nodes.

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The key development indicators/informants that need to be taken into account when identifying land for housing development are discussed comprehensively hereunder. These indicators are used in this plan to ensure integration with the Spatial Development Frameworks (SDF) of the municipality and the district while rooted in the spatial principles of the PGDS and the NSDP.

5.1 DEVELOPMENT INFORMANTS

5.1.1 Socio Economic Factors and Demographic Profile

Socio-economic factors and the demographic make up of the municipality determine the extent of need for shelter and their location choices. Human settlements tend to congregate in areas where services such as schools, security, health facilities and employment are prevalent. The converse of this is that the probability to providing social services is higher in more populated settlements where there are economies of agglomeration. Due to the historic inequality and forced settlement programmes of the previous government, these patterns were distorted. Map 3 shows the population densities in the municipality. An overlay of the map of social services clearly shows that the settlements that have higher population densities have a high concentration of social services.

5.1.2 Physical, Topographical and Geotechnical Conditions

Environmentally sensitive areas with regard to topography, geology and geomorphology indicate a non-developable area. From a town planning perspective on a slope that is higher than 1:3 are not conducive for development. Map 2 shows that the municipality has vast areas that are steep. Pre-feasibility assessments will determine whether these areas are too steep to be developed. Steep slopes increase the cost of development as the cost of infrastructure layout is higher on steep slopes.

5.1.3 Environmental Protection Areas

Map 6 shows areas of eco-tourism and conservation. Similarly, areas on flood planes are classified as un-developable land as they are prone to disaster.

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5.1.4 Infrastructure

Areas with high levels of infrastructure tend to have a higher concentration of people. This is illustrated by the high demand for housing in the urban centre. The intention of the municipality to develop housing for all income categories in the municipality it is critical that the municipality recognises that infrastructure and socio-economic conditions are the two most critical factors that are used to choose location. Education and health services rank the highest on social services. For the high income residents the quality of these services is even more critical.

5.2 STRATEGIC SPATIAL LOCATION LOGIC

In order to optimize the impact of the Umzimkhulu Municipal Housing Plan certain principles are established for adoption by the municipality. These principles will also lead to the implementation of the strategies set out in the Municipal IDP and other related government strategy and policy documents. These ill also form the municipality’s development ojectives that can e reached through housing development.

5.2.1 Establish a Hierarchy of Settlements

One of the objectives of developing a Housing Sector Plan is to improve the spatial structure and definition of functions within the municipal area, as well as to provide development opportunities in the urban core and the surrounding rural areas as a vehicle to sustainable settlement.

The Strategic Spatial Location logic puts forward an incremental development approach, where the upgrading of existing services and provision of new services are focused in specific areas according to settlement and nodal classification. The formalization of emerging urban settlements/ peri-urban settlements of Clydesdale, Rietvlei Emfundweni and Ibisi and the strengthening of existing and emerging rural nodes such Riverside.

This would ensure that areas with high population densities situated outside the primary node, particularly in rural areas are first in line to benefit from upgrading and new service provision. The increased population densities would minimise the cost of providing bulk infrastructure. Implementation of this approach requires the cooperation of all levels of government and service providers, to ensure alignment in service delivery.

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mimkhulu is the main uran centre, ithin hich the municipality’s major commercial, residential and community facilities are based. The area around the town has witnessed significant growth over the years and has the highest demand for housing development in terms of the municipal housing list. It is connected to its hinterland by a gravel road network. The high volume network is being tarred. The initiation of the urban renewal programme that will result in the renewal of the municipal urban node will build this primary node into a strong central base for the primary and higher order services for the entire municipal area. The Umzimkhulu town is being developed as the economic heart of the municipal area and the head office for social and economic service, with satellite offices and service points in the lower order node to create linkages.

Based on the spatial principles set out in the SDF the following settlement hierarchy is proposed;

Settlement Name Hierarchical Functional Classification Functions Provided Classification Umzimkhulu Primary Node . Urban core Provides higher order . Major service centre services . Economic heart Clydesdale Emerging nodes . Residential . Residential Ibisi . Social & community Rietvlei services e.g. Riverside education, health, Mountain home pension payout points, recreation, informal trading areas . Basic retail facilities for daily needs Settlements on Densification of . Residential . Residential R56 and tertiary settlements along . Social & community roads corridors services Table 18: Settlement Hierarchy

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The peri-urban settlements of Clydesdale, Rietvlei and Clydesdale have reached high population densities can be classified as emerging urban settlements in terms of their densities, concentrations and housing types and the opportunities to diversify activities. The concentration of population places pressure on the number and availability of social services in these areas as well as well as the need for basic engineering services.

The densification and development of these areas occurs without considerations for future land needs and spatial organisation. The reinforcement of these nodes through the provision of social and economic infrastructure is constrained by the land allocation policies that have not made provision for other forms of development save for residential purposes and commonages. The provision of social infrastructure and services to these areas is a high priority. These emerging nodes should be the focus point for the provision of water, sanitation, electricity, roads, transport and services and telecommunication infrastructure. Thus the authorities in these settlements need to be capacitated in spatial planning principles to enable them to make sound decisions. Furthermore, to address this problem these settlements need to be formalized to create order. Development Framework Plans have to be developed for these areas that will form the physical and social premise upon which future development and investment of the area can be based. c) Densification of settlements along corridors

It has been observed in the municipality that there is a significant densification of settlements that are located along the main roads. This is attributable to the need for access to services and economic opportunities while the residents are able to engage in rural livelihood activities. The emerging nodal areas of Clydesdale, Ibisi, Emfundweni and Rietvlei are classical examples of settlements that can now be classified as peri-urban and ready for formalisation. They are all located along R56 the main corridor in the municipality. Similarly settlements such as Mfulamhle and Nazareth that are along access roads to the urban centre have high population densities. This trend needs to be encouraged as it substantially reduces the cost of development and improves access to socio-economic opportunities.

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5.3 LAND OWNERSHIP PATTERNS

5.3.1 Current Land Uses

In line with agriculture being the main economic activity in the municipality forest plantations are dominant land use followed by residential use in the form of rural settlements. Map 2 clearly demonstrates that the majority of the land lies dormant classified as steep and degraded. Most of the land in the municipality is owned by the state through tribal ownership and title held by the national Minister of Land Affairs. The developed parts of the urban centre are privately owned Tribal land is situated in the municipal and mainly used for residential purposes and subsistence farming. Consequently, transfer of land from national government is critical to achieve the municipal housing development objectives.

5.3.2 Land Identified for Housing Projects

This section presents the legal status of the land that has been identified for housing development. The information presented below clearly shows that all the land for housing development is state owned either through tribal ownership or is held in trust by the Minister on Land Affairs.

Clydesdale

Clydesdale is situated on Farm 165 Clydesdale. The Farm was transferred to the municipality by the Department of Land Affairs.

Ibisi

Ibisi is situated on Farm 162 Khululwa owned by the Department of Land Affairs. Application for its release has been made to the Minister of Land Affairs.

Riverside Phase 1

Riverside Phase 1 is situated on Portion 7 of Farm Riverside No.60 owned by the Department of Land Affairs. Application for its release has been made to the Minister of Land Affairs.

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Riverside Phase 2

Riverside Phase 1 is situated on Portion 7 of Farm Riverside No.60 owned by the Department of Land Affairs. Application for its release has been made to the Minister of Land Affairs.

Umzimkhulu Extension 5 & 6

The land has been transferred to the municipality.

Umzimkhulu Villages

These are located in traditional areas.

5.4 LAND IDENTIFIED FOR HOUSING DEVELOPEMENT

5.4.1 Spatial Integration of Identified Land

From a housing point of view, the key issue is to promote the social, economic and spatial integration of the municipality. The description of land uses in the municipality clearly outlines the spatial configuration of the municipality. In Umzimkhulu Municipality, intensity, diversity and priority of housing project investment should increase according to the spatial logic presented in this document, that is, along transport corridors nodal developments. The ideal outcome is to change the spatial footprint of the municipality. However the municipality can neither socially nor economically afford to drastically change long-established settlement patterns. The strategic response to spatial integration particularly to the tribal settlements in the periphery encompasses two major planning interventions, that is,

. To ensure access to social and economic services. . To promote mixed use that includes economic activities based on skills that already exist in the community.

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

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a) Access to Economic Opportunities

There is an underdeveloped road network that links the rural areas with urban centres. Economic opportunities are limited to the agricultural sector in the areas designated for forestry and the CBD. The limited provincial and national road network further limits access to a diverse range of economic opportunities in the major centres of Durban and Pietermaritzburg. Thus, a good road network is critical to the future development of the Municipality as opportunities within the boundaries of the Municipality are limited. The creation of alternative sources of employment and the diversification of the agricultural sector will create economic opportunities within the Municipality. This is critical as the majority of the population is unskilled with low levels of education. b) Access to Social Services

Health

mimkhulu has three 3 hospitals, that is, itvlei, St Margaret’s and mimkhulu Hospital (Psychiatric Hospital). These three hospitals are supported by primary health care facilities in the form of clinics. There are 15 built clinics in the municipality. In total there are 56 clinics in the municipality thus there is 1 clinic to 4244 residents. However most of them lack basic infrastructure services such as piped water, electricity, telephone and facsimile facilities. The 41 mobile clinics provide a health service once a week to the most remote parts of the municipality. However, the quality of service in these facilities is inadequate. Map 4 shows the spatial distribution of health facilities across the municipality.

Education

Education facilities, in the form of primary, secondary and high schools are widely distributed in the municipality. However, the quality of education and the number of students who complete formal of education remains one of the major challenges to the development of the municipality that currently records very low levels of education. Furthermore, the entire Sisonke District has no tertiary education facilities. The search for education opportunities which later become employment opportunities is one of the key triggers of outward migration of the educated from the municipality. In the first instance the improvement in the quality of education in the municipality is critical in retaining professionals and high income earners.

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Safety

Access to the sparsely distributed police services is further limited by the poor road infrastructure and limited resources for the police source to perform its function. There are security concerns in the municipality particularly linked with the abuse of alcohol. The following have been recommended to beef up security in the municipality. . Tightening up relationships between the South African Police Service (SAPS) and Community Policing Forums (CPFs) . Provide a communication system between SAPS and the CPFs . Street controls and by laws on taverns and shebeens (alcohol, drug abuse, fire-arms, knives) . Law enforcement on illegal trading

Recreational facilities

There are limited recreational facilities in the municipality. However, the municipality has received funding for the development of recreational infrastructure which will see significant improvement in the quality and distribution of these services in the municipal area.

Cemeteries

Few of the tribal areas have spatially designated cemeteries, with most communities practicing on site burial. Two major problems are associated with on site burial . Contamination of land . Limits future land development

5.4.2 Capacity of Bulk Services

There is no doubt that access to basic engineering services improves the quality of life of households. The planning for the provision of bulk services through the Municipal Infrastructure Grant (MIG) should at the district level seek alignment with the housing projects, particularly to address the acute water and sanitation backlogs. Identified of projects that are listed in the District Water and Sanitation Plan should be informed by the priority municipal housing projects identified in this plan. The projects have been discussed with the district municipality. However, a formal commitment needs to be obtained from the District considering the fact that the blockages in the current projects are the result of the lack of provision of water and sanitation.

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Water in the municipality is mainly drawn from natural sources such as streams, rivers and fountains. These water sources are not treated exposing users to water borne diseases. According to the 2007 Community Survey only 40.2% of households in the municipality have access to piped water a 5% increase from 2001 distributed as follows:

 7.5% with piped water inside dwelling  6.9% with piped water inside yard  25.7% piped water from access point outside the yard b) Sanitation

On site sanitation if appropriately implemented, where the geotechnical conditions are suitable, that is, there is no danger of ground water contamination can be in the form of VIP toilet, sceptic tanks and soak-way system. These are acceptable levels of service.

Rural areas under the jurisdiction of Umzimkhulu use pit latrines in the main with very few areas that use septic tanks. A main sewer line has been installed within the Umzimkhulu CBD and surroundings which provides water borne sanitation to these residents. According to the 2007 Community Survey there has been a 17.5 % decrease of households using pit latrines from 84% to 66.5%. Similarly, the bucket toilet system has been reduced to 0.4% while households with no toilets have been reduced from 7.6% to 7.1%. Thus, it can be deduced that 26% of the households have access to water borne sanitation. .

A Draft Protocol to Manage the Potential Groundwater Contamination from on site sanitation has been developed as a precursor for the development of a Sanitation Plan for the SDM. Consequently, there is no backlog information for sanitation in the SDM.

The lack of national guidelines partially contributes to the lack of backlog information. While the aim of the Municipality is to meet backlogs by 2010, planned housing developments offer the municipality an opportunity to consider the implementation of sanitation.

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While there has been a significant increase in the number of households that utilise electricity between 2001 and 2007, it is clear that more than 40% of households do not have access to electricity. According to the 2007 Community Survey electricity use by households was classified as follows: . 53,7% for lighting, . 18,2 for cooking . 7.1% for heating The statistics provided by the ESKOM distribution unit will be considered more accurate for the purposes of this study as ESKOM undertakes a comprehensive analysis in formulating its distribution plan. According the Electricity Service Delivery Plan 58.6% of the municipal households have not been electrified. d) Road Infrastructure and Access to Transport Facilities

The municipality is putting considerable resources and effort to rehabilitate roads in the municipality. The section on spatial analysis in this report clearly illustrates that the spatial location and the state of the road network limits access to the municipality.

Only R56 is tarred which is the main connector to the municipality with the remainder of the 1200 km road network being gravel. It is estimated that 45% of access roads become unusable during the rainy season. Taxis, buses and bakkies are the main form of public transport. These are unregulated. The following access roads have been completed: . Ward 16, Clydesdale . Ward 12, Nxaphanxapheni . Ward 6, Makholweni . Ward 4, Mount Sheba

Listed below are roads that are under construction: . Ward 14, Umtshazo . Ward 12, Mbulumba, Manxiweni . Ward 11, Vierkant . Ward 11, Esihlonhlweni . Ward 9, Cabazi . Ward 1, Goso

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5.4.3 Institutional Integration

Integration on institutional level is of utmost importance for the success of housing delivery. Within the municipality integration of all sector inputs is critical for the development of integrated human settlements. Second, officials must be capacitated in all aspects of housing service delivery, that is, financial programs, environmental issues and socio-economic status and programs. Third integration between the local authority and the district municipality should be strengthened especially with regard to coordination and alignment of MIG funding for housing development. Furthermore, integration between the municipality and the provincial government departments is critical for the alignment of projects and programs.

6. 0 PERFORMANCE MEASURES

While it is easy to establish annual targets by picking up an acceptable final performance level and dividing expected targets evenly on the years between, such straight line thinking about progress is often inconsistent with the way that development programs really work. More often than not, no real progress in terms of measurable impacts or results is evident during the start up period. This is the current experience in Umzimkulu wherein projects have been blocked while the KZN Department of Local Government, Housing and Traditional Affairs quantifies additional funding to complete projects handed over from the Eastern Cape. These projects were already running behind schedule and further riddled with administrative and quality problems. These have been characterised by amongst others capacity constraints of the municipality to manage projects particularly, emerging contractors that often had limited capacity and often failed to complete projects.

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Strategic Activity Measurement Start Output Budget Responsibility Objective Date

Develop Adopt unit Operational unit July Appointment R850 000 Umzimkhulu institutional structure 09 of qualified capacity staff Identify training Skills base of Oct Capacity to R100 000 Umzimkhulu Capacity needs the housing 09 carry out building of department housing municipal function officials Quantify Installation of Operational data Nov Installed R400 000 DOH/ Backlog Demand Data base 08 software Umzimkhulu Base programme Municipal official Nov Competent Municipal trained to operate 08 municipal official official data base trained to operate data base Beneficiary Nov Backlog Beneficiary Umzimkhulu registration 08 quantified & registration analysed Develop Unblock Commence Mar Completion of DOH/ sustainable blocked projects implementation 09 six blocked Umzimkhulu settlements projects Implementation Approval of Mar of planned phase 1 09 projects Approval of Mar phase 2 2010 Construction of 60 units per month Develop Enter into PPP PPP agreement Feb Signed PPP R150 000 Umzimkhulu mixed signed 09 income housing Table 19: Performance Measures

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Set out in Table 7 above are the performance targets of Umzimkhulu Municipality with regard to housing development. These performance targets clearly demonstrate the critical activities over the next five years that the municipality needs to undertake to deliver on housing development. The strategies and projects must lead the municipality to achieve its vision within the framework of its legal obligations, the context of key stakeholders, the principles of the development rational and the current reality in which the municipality finds itself.

6.0 INSTITUTIONAL FRAMEWORK

6.1 OVERALL APPROACH

This section of the report sets out the institutional mechanism that will enable the municipality to undertake housing development. It is important to note that the 2003 Municipal Housing Sector Plan had set out a comprehensive institutional structure that was not implemented by the municipality. This institutional structure is informed by the scope of housing development in the municipality. To a large extent it mirrors the previous structure.

The implementation of this institutional structure is critical as the municipality is currently experiencing problems with regard to the implementation and completion of housing projects. This is attributable to the institutional structure and system to manage the planning and implementation of housing development. It must be recognised that the institutional framework for the housing unit must relate to the municipal operational strategy.

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

Outlined below are the institutional conditions for the housing unit to effectively deliver its mandate. . Governance: refers to how the housing unit makes decisions, oversees its obligations and ensures internal accountability. . Authority: how the housing unit is empowered to act, through either founding documents, mandates or the municipal institutional structures.

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. Compliance: is the municipal ability to meet contractual and legal obligations i.e. the community and other spheres of government. . Competence: the ability of the housing unit to assemble and mobilise resources . Relationships: how the program interact with a variety of stakeholders

Figure 1: Housing Institutional Structure

Umzimkhulu Municipal Council

Strategic Planning & Housing Standing Committee

Municipal Manager

Planning & Housing Support & Manager Administration

Housing Manager

Integrated Project Engineering Planning Management Services

Building Inspector

Clerk of Works X 3

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6.2 MANAGEMENT STRUCTURE

It is important that the housing management structure relates to the operational structure of the Municipality. Therefore the structure outlined above reflects the technical input required to deliver housing services in the Municipality. The position of the Housing Manager is mandatory to enable the municipality to co-ordinate all the technical inputs required to deliver housing services. Due to the size of the municipality the technical input could be provided by line departments. These will include planning, project management and engineering which are the critical technical inputs that support the Housing Manager to carry out his/her functions.

In the view of the extent of housing development and capacity constraints that face the municipality it is proposed that the municipality sets up a fully fledged housing unit. Figure 1 illustrates the proposed structure detailed herewith above. The housing unit breaks its functions into components listed below to enable the municipality to define and assign the functions that have to be co-coordinated for effective housing delivery.

The institutional structure needs to address two capacity building issues: . The capacity of the institution and . The capacity of individuals within the institution.

6.2.1 Planning & Housing Manager

The Planning and Housing Manager has an oversight responsibility for the housing function. She is the technical champion that lobbies all stakeholders for technical and financial support for housing development in the municipality. The position of the Planning and Housing Manager is an executive appointment providing oversight to the following functions in the municipality, housing, planning and local economic development. Hence, her responsibilities do not enable her to undertake the daily operational functions of the housing unit.

6.2.2 Housing Manager

The Housing Manager is assigned with the operational responsibilities of the unit. This is a leadership position that requires financial and human resources planning for effective housing delivery. The primary responsibility of the Housing Manager is to implement housing delivery according to the Municipal Housing Sector Plan to achieve sustainable human settlements. The manager coordinates the following inputs: . Housing administration

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. Planning function . Project management . Engineering

6.2.3 Integrated Planning

The planning component is has responsibility to undertake the following tasks: . Strategic planning input to the housing unit as it relates to the implementation of all housing projects and initiatives such as rural housing, vacant land audit, development of housing plan, provide land use management input (identification of appropriate land for housing development) etc. . Ensure that identified projects conform to the Integrated Development Plan (IDP) and the Spatial Development Framework. . Support coordinated and sustainable housing development.

6.2.4 Project Management

The main task of the project manager is to plan for and manage the construction of the units: . Plan and implement low shelter opportunities. . Alignment of Municipal Infrastructure Grant (MIG) funding and housing development schedule. . Monitor quality of units implemented. . Provide housing opportunities and full tenure

Critical to incorporate into the project management function is the support function of the Building Inspector and the Clerk of works. This is informed by the realization that most of the structural defects in housing projects are due to a lack of an early warning system. Thus the Building Inspector and Clerk of works provide ongoing monitoring of the construction process to ensure that there is adherence to norms and standards.

6.2.5 Engineering Services

This functional component is tasked with the responsibility for the construction and provision of engineering infrastructure in the housing developments. It is critical to note that water and sanitation is the district competence. The municipal engineering services unit is responsible for coordinating all the engineering inputs, that is, road infrastructure (municipal function), electricity (Eskom), water and sanitation (district function).

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6.2.6 Support and Administration

The role of support and administration is to:

. Identify and develop a list of beneficiaries . Undertake sales administration . Maintains, preserves and keep record of all town plans . Attends to correspondence from the general public

7.0 CONCLUSIONS AND RECOMMENDATIONS

The objective of the report was to develop a Housing Sector Plan that will guide the planning and implementation of housing development in Umzimkhulu Municipality. The main reasons for producing a Housing Sector Plan by the Municipality are to: . Ensure effective allocation of limited resources particularly financial and human to competing potential development interventions . Provide a formal and practical method of prioritizing housing projects and obtaining political consensus for the sequencing of their implementation . Facilitate greater spatial linkages between the Spatial Development Framework and physical implementation of projects on the ground. . Deliberately place the housing sector imperatives in the IDP . Ensure effective subsidy budgeting and cash-flows both at Municipal and Provincial levels.

Based on the information and findings reported the following conclusions and their respective recommendations are drawn.

1. The Umzimkhulu Municipality is home to approximately 243 242 people. The municipality has recorded a 28% in population between 2001 and 2007. This exacerbates pressure on a municipality that is experiencing high levels of housing backlog. It is critical for the municipality to create capacity to undertake the housing function efficiently.

2. The major economic sector is agriculture which has low wages (minimum wage of R850.00).The conditions under which families live in the Municipality are severe. These conditions include high levels of poverty, poor access to services and social infrastructure. The single contributors to underdevelopment in the Municipality are the high levels of poverty coupled with low levels of education.

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3. Unless the Municipality considers economic development strategies that will create a vibrant local economy the high levels of state dependency and the inability of households to adequately meet their basic needs including housing will continue into the future. Second the spatial location of projects should focus on increasing access to opportunities, thus the proposals to locate on nodes and corridors.

4. Umzimkhulu Municipality has a housing waiting list that is used to quantify the need for housing development. The more than 14 000 beneficiaries on the list have not been verified for qualification through the national system. To ensure the accuracy of the housing waiting list it needs to be linked the municipal housing list to the National Housing Subsidy System (HSS).

5. Housing Development in the Municipality has been hampered by a number of interrelated factors, particularly project management capacity and the capacity of emerging contractors that were. Consequently, the municipality has not successfully completed a housing project. Furthermore, project linked subsidies that were contractor driven had been the preferred subsidy form which automatically precluded rural residents who have no outright tenure rights. However, the majority of the population resides in the tribal areas and this study has established that they have the greatest housing need. Therefore, it is recommended that the Municipality should prioritise Tribal Areas wherein the tenure arrangements can be overcome through the application of the rural subsidy. This will contribute towards the reduction of the housing backlog while focusing on the areas that have the greatest need.

5. There is limited land in the urban centre for further development. There are a number of peri-urban settlements in the municipality that offer a viable alternative to the CBD. These settlements will be able to achieve this objective if they are formalized with tenure and services upgraded.

6. The regeneration of the CBD offers immediate opportunities for the development of a diversified housing market that will attract both middle income and high income earners. Thus the municipality needs to consider public private partnerships to roll out middle and high income housing opportunities that will enable it to generate revenue on property tax while encouraging more business development in the area.

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REFERENCES

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

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

Municipal Spatial Development Framework (2004)

Project Preparation Trust, July 2006 Municipal Housing Sector Plan Manual

Project Reports, Eastern Cape Department of Housing

Sisonke District Municipality, Integrated Development Plan 2008/09

Sisonke District Municipality, Draft Local Economic Development Plan 2008

Sisonke District Municipality, Water & Sanitation Plan

Statistics South Africa, Census 2001

Statistics South Africa, Community Survey 2007

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

The Development Facilitation Act, (Act 67 of 1995)

The Housing Act, (Act 107 of 1997)

Umzimkhulu Local Municipality, Urban Renewal Implementation Plan

Umzimkhulu Local Municipality IDP 2008/2009

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STAKEHOLDER CONSULTATION

PARTICIPANTS IN THE PREPARATION OF THE HOUSING SECTOR PLAN

Mrs. T. Mfazwe Manager Planning & Housing Umzimkhulu Municipality Mrs. F. Mkize Housing Officer Umzimkhulu Municipality Ms. M. Hlatshwayo Distribution Officer Eskom, Ms. N. Naidoo Assistant Manager DOH Mr. S. Kheswa Consultant Local Government Mr J. Foley Manager Projects DOH

Umzimkhulu Municipality Executive Committee 30 July 2008 Umzimkhulu Planning and Housing Portfolio Committee 18 August 2008 Project Prioritization Workshop 2 September 2008 Umzimkhulu Planning and Housing Portfolio Committee

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