UMHLATHUZE MUNICIPALITY

MUNICIPAL COMMUNITY HOUSING PLAN

Prepared by the FIRST HOUSING PLAN CONSORTIUM

Contact: Robert Mann [email protected] First Housing Plan (031) 2020160 Consortium CONTENTS Page 1. EXECUTIVE SUMMARY 1 2. METHODOLOGY 2 3. BACKGROUND 4 3.1 IDP Vision, Principles and Mission 4 3.2 IDP: Housing and Infrastructure 7 3.3 A Comprehensive Plan for the Development of Sustainable Human Settlements, ‘BNG’ strategy 9 3.4 Housing Typologies 12 3.5 Economic Activity 14 3.6 Employment Trends 15 3.7 Population Growth Forecasts 16 3.8 Housing Needs Assessment 16 4. LAND IDENTIFICATION 21 5. INTEGRATION WITH OTHER SECTIONS 25 5.1 Background 25 5.2 District infrastructure planning 26 5.3 Roads 31 5.4 Electricity 31 6. AVAILABILITY OF INFRASTRUCTURE TO RURAL NODES 32 7. HOUSING DELIVERY PLAN 34 7.1 Slums Clearance and Rural development 34 7.2 Low income Greenfield development (Current Projects) 35 7.3 Low income Greenfield development (Planned Projects) 35 7.4 Hostel Upgrades 36 7.5 Middle Income or credit linked Housing 37 7.6 High Income Housing 38 7.7 Relocations 38 7.8 Housing response to HIV/Aids 38 7.9 Summary of Housing priorities 39

8. PERFORMANCE MEASUREMENT 40 8.1 Preliminary assessment 40 8.2 Pre-feasibility 40 8.3 Feasibility 41

9. INSTITUTIONAL ARRANGEMENT 42 10. CASH FLOWS 43 11. PROGRAM 44

TABLES Table 1: Priority List for Housing Projects 2 Table 2: IDP Nodes 9 Table 3: Housing Typologies 13 Table 4: Unemployment statistics 14 Table 5: Calculation of Housing Demand 20 Table 6: Potential land for development 22 Table 7: Total backlogs per local municipality for sanitation supply as at July 2005 28 Table 8: Total backlogs per local municipality for water supply as at July 2005 28 Table 9: Households by water supply (census 2001) 29 Table 10: Households by sanitation supply (census 2001) 30 Table 11: Availability of infrastructure to rural nodes 32 Table 12: Middle income possible housing projects 37 Table 13: Housing priority list 39

GRAPHS Graph 1: Housing Typologies in Umhlathuze 12 Graph 2:% of informal dwellings in Umhlathuze Municipality 18

PLANS Plan 1: Spatial Development Framework 6

APPENDIX 1: CURRENT HOUSING PROJECTS DETAILS 2: PROJECT DEVELOPMENT AREAS PLAN 1 EXECTUVE SUMMARY

The Umhlathuze municipal area is characterised by a shortage of suitably well located land for housing development. However the municipality has identified a number of potential land parcels that have potential for housing development.

The removal of slums and informal settlements is a priority of the Department of Housing, and the census of 2001 identified 5 812 informal dwellings, with 53,22% located in Khoza and 19,48% in Dube, these areas are therefore the areas of greatest need in relation to slums clearance projects. The Slums backlog has therefore been estimated at 5812.

There is a total of 10034 traditional dwellings, within the Municipal boundary, with Dube (27%), Zungu/Madlebe (21%) and Khoza (14%) identified as the areas of greatest need in terms of rural housing. However only 66% of these dwellings are to be added to the Housing need backlog calculation as these are the homesteads below the minimum basic level of services provision (Rural Housing backlog estimation = 6622).

A total of 6 119 “living quarters” were identified (however only 30% of this figure has been added to the social housing backlog figure, as many units are student accommodations) (Total estimated Social Housing backlog = 1836), indicating an urgent need to prioritise the upgrade of hostels, two areas namely Esikaweni and Nseleni have been selected due to the need identified and pilots initiated in these areas. The total estimated housing demand for the Umhlathuze Municipality can be calculated at 14 270.

Based on the housing needs assessment, the DoH’s priority programs and the feasibility for development the following project priority list has been compiled.

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HOUSING PRIORITY LIST Sites Est. Value (R/Mill) Slums clearance – Rural Housing Projects 3700 1. Esikhaweni / Dube Wards 12,13,14,15,16,20 & 22 1500 63 2. Nseleni / Khoza Wards 5,7 & 8 1200 50.4 Rural housing 2000 3. Madlebe Ward 24,25,27, 28 & 29 1000 42 4. Mkhwanazi Ward 10, 11, 18 & 30 1000 42 PLS & Greenfield housing projects 5700 1. Umhlathuze Village P2-5 Ward 9 2000 84 2. Aquadene Ward 2 1000 42 3. Corridor (investigate) Ward 14 1500 63 4. Iniwe (investigate) Ward 29 1200 50.4 Hostel Upgrades 441 Esikhaweni Ward 20 & 21 324 12.6 Nseleni Ward 8 117 4.6 HIV Aids 30 HIV project (location to be determined) 30 1.3 Total 11841 455.3 mill

Table 1: Priority list for housing projects

Programs for implementation and cash flows have been calculated for all of these projects in sections 10 and 11.

2 METHODOLOGY

The Umhlathuze municipal area is characterised by a shortage of suitably well located land for housing development. This has meant that historically the Municipality has not had many housing projects implemented through the Department of Housing (DoH) Subsidy Scheme. However in realizing that the identification of well located land for development is critical, the Municipality has commissioned a number of studies in order to assist in this process. Primarily two documents focus specifically on land assessment and the processes for securing this land namely:

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Umhalthuze Housing Needs Assessment Helgaard Botha Ass Aug 2005 Umhlathuze five year development plan Metaplan Oct 2005

As well as a number of other complimentary documents that will assist in the housing delivery program namely;

Umhlathuze Environmental Services Management Plan Futureworks Nov 2005 Umhlathuze Engineering Geological Study Golder and Ass April 2005

Furthermore a hydrological study and a number of socio economic surveys have been completed which will provide invaluable support information for direct housing project delivery in the future. The Spatial Development Framework is also currently being updated and amended.

The housing sector plan has therefore been based predominantly on the IDP and the information detailed above. While at the same time an assessment of the current housing projects, the pilot hostel program and the municipality’s vision for housing in the area has been incorporated. The plan has been developed in consultation with all the relevant municipal departments and through a close working relationship with the Municipal Housing official (Mr. Siphiwe Thusi) who has shared in our learning experience and has been invaluable through the support he has provided.

Details of the ongoing development of the plan have been communicated through the Housing Forum meetings to service providers, housing officials, relevant departments and councilors and this plan will now been advertised in the local media. It is envisioned that once the housing sector plan process has been completed Mr. Thusi and his development team will be fully competent in managing and updating this plan.

The department of Housings guidelines for the development of the Housing sector plan has been strictly followed ensuring the inclusion of critical sections such as:

Background, IDP linkages, Land identification, Current housing projects, Planned projects

And other relevant sections such as;

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Integration with other sections, Spatial Development Plan, Performance measurement, Housing institutional framework

As well as concluding with a housing delivery plan which includes a priority list of housing projects, a housing delivery program and housing program cash flows.

3 BACKGROUND

3.1 IDP Vision, Principles And Mission

The First Housing Plan consortium was appointed by the Umhlatuze Municipality to compile a Municipal Housing Sector Plan. This plan is to be developed based on the guidelines provided by the Department of Housing KZN. The Integrated Development Plan developed in 2002 outlines the following basic principles, aims and objectives.

3.1.1 The Vision

The vision for the City of uMhlathuze is as follows: “The City of uMhlathuze metropolitan area, as a port city, will offer improved quality of life for all its citizens through sustainable development. It will be a renowned center for:

™ Trade; ™ Tourism and nature-lovers; ™ Coastal recreation; ™ Commerce; ™ Industry; ™ Forestry; and ™ Agriculture.

3.1.2 The principles

The vision is underpinned by the following principles:

™ Sustainable growth and development.

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™ Quality, affordable services. ™ Financial health and fiscal discipline. ™ Transformation and integration. ™ Accountable and transparent local government. ™ Recognition - diversity. ™ Respect - fundamental rights. ™ Equity. ™ Focus on supply side economics and asset management. ™ Safe and secure living environment. ™ Importance of a Metropolitan Open Space System and natural assets.

3.1.3 The Mission

The uMhlathuze Municipality has set the following mission for itself:

“We aspire to develop uMhlathuze as the industrial, commercial and administrative center within the natural beauty of the region, providing a range of efficient municipal services thereby ensuring economic development, dynamic investment growth and the improvement of the quality of life for all.”

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Plan 1: Current Spatial Development Framework for Umhlathuze

Page 6 3.2 IDP: Housing and Infrastructure

Housing and infrastructure provision is highlighted in the IDP based on a number of challenges and the potential implementation strategies in order to meet these challenges. The main housing and infrastructure challenges are detailed below.

3.2.1 IDP Challenge 1:

Community upliftment and empowerment of rural areas

Settlement patterns and particularly the physical segregation of areas should be improved to make the area more economically viable.

™ Transportation in the region should be improved. ™ More appropriate standards should be used for the rural areas, e.g. in terms of walking distances to facilities. ™ Stimulating development in all settlements in the area ™ Water provision to farms and rural areas ™ Reasons for ongoing urbanisation should be explored.

3.2.2 IDP Challenge 2:

Economic development and attraction of investment ™ Spin-offs from service delivery and development should be promoted. ™ Economic spin-offs should also create social benefits.

The overall IDP Challenge and Key Issues can be stated as follows:

“From the Situational Analysis and needs identification, it is clear that the communities residing in the rural areas have a lower income and are more severely affected by aspects such as poverty and deprivation, than the urban community. Community upliftment and empowerment programmes should therefore be focused on the rural areas. Economic development, attraction of investment and maintenance of development standards in the urban areas are however essential to ensure the overall growth and development of the City of uMhlathuze.”

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3.2.3 Strategic Development Rationale

The physical segregation and distortion of the area is evident, with Ngwelezane, Esikhawini, Vulindlela and Nseleni forming separate physical entities within the urban area. These areas are however completely reliant on Empangeni and Richards Bay for employment, goods and services. Although Empangeni and Ngwelezane are growing physically closer together, it is not currently possible to integrate Vulindlela, Esikhawini and Nseleni physically with any of the other urban areas. Empangeni and Richards Bay have a strong peripheral dependency, with large tribal areas which have a high population density, situated outside the formal urban areas. In terms of population density, concentration and service demands, large sections of these tribal areas can be classified as emerging urban settlements.

The Strategic Development Rationale for the City of uMhlathuze is therefore to develop the area with a hierarchy of nodes. Nodes will also be established in the rural areas to provide access to social and economic opportunities. Several of the densely populated rural areas can be classified as emerging urban settlements, where the future urban form should be shaped from an early stage to ensure efficiency and enable formalisation and upgrading.

The Strategic Development Rationale 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 emerging urban settlements and identification of nodes in rural areas would provide the directives to shape the future urban form and would determine the priority areas for infrastructure service provision. This would ensure that areas with high population concentrations situated outside the primary nodes in the area, particularly in rural areas, are first in line to benefit from upgrading and new service provision. This approach would also ensure that existing service levels are maintained and pressure on services is alleviated. This requires the cooperation of all levels of government and service providers, to ensure coordinated, focused and integrated efforts towards community upliftment and development.

The following key development objectives are suggested in the IDP: ™ Spatial Development ™ Poverty Alleviation and Gender Equity ™ Local Economic Development ™ Environmental Management ™ Institutional Development

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The IDP further suggest the following main development nodes

DISTRICT NODES PRIMARY NODES TERTIARY NODES

Empangeni Ngwelezane Madlebe Tribal Authority Richards Bay Esikhawini Dube Tribal Authority Vulindlela Khoza Tribal Authority Nseleni Mkhwanazi Tribal Authority Meerensee Felixton Ngwelezane Table 2: IDP Nodes

3.3 A Comprehensive Plan for the Development of Sustainable Human Settlements, ‘BNG’ strategy

The “Breaking New Ground” document was approved by Cabinet and presented to MINMEC on 2 September 2004. This document suggests a number of progressive changes to the delivery of housing in South Africa. Since the documents approval in September 2004 a number of these suggested changes have been incorporated, the following is a summary of the major relevant shifts in housing delivery strategy currently being incorporated based on this document.

The new human settlements plan reinforces the vision of the Department of Housing, to promote the achievement of a non-racial, integrated society through the development of sustainable human settlements and quality housing. Within this broader vision, the Department is committed to meeting the following specific objectives: ™ Accelerating the delivery of housing as a key strategy for poverty alleviation ™ Utilising provision of housing as a major job creation strategy ™ Ensuring property can be accessed by all as an asset for wealth creation and empowerment ™ Leveraging growth in the economy ™ Combating crime, promoting social cohesion and improving quality of life for the poor

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™ Supporting the functioning of the entire single residential property market to reduce duality within the sector by breaking the barriers between the first economy residential property boom and the second economy slump.

Major relevant Changes suggested through this document include:

™ The new human settlements plan moves towards more holistic, integrated, flexible and responsive mechanisms which address the multi-dimensional needs of sustainable human settlements. ™ As part of an approach which envisages that municipalities will play a significantly increased role in the housing process, municipalities must take the lead role in negotiating the location of housing supply to facilitate spatial restructuring. This will also encourage integration between housing delivery, spatial planning, infrastructure provision, Municipal IDP and budgetary coherence. ™ Enhancing Spatial Planning, through greater coordination and alignment of various planning instruments and economic policies, lies at the heart of sustainable human settlements. This requires more than mere coordination between departments but there needs to be a single overarching planning authority and/or instrument to provide macro-level guidance to support the development of sustainable human settlements. ™ The housing chapter of Municipal Integrated Development Plans must be considerably enhanced to include municipal housing needs assessment, the identification, surveying and prioritisation of informal settlements, the identification of well located land for housing, the identification of areas for densification, the linkages between housing and urban renewal and the integration of housing, planning and transportation frameworks, and will link these to a multi year implementation plan. (These suggestions have been incorporated through the Housing Sector Plan and its suggested format) ™ It is important that the programme respond to the capacity needs of communities, ensuring that they are empowered to constructively engage with municipalities in identifying and fulfilling their housing needs. ™ Municipal capacity building is highlighted as critical to the success of the new housing plan. A comprehensive programme for capacity building in the housing sector is suggested. ™ Some changes were suggested to subsidy bands including the collapsing of the 3 subsidy bands below R3500 and the introduction of finance products/instruments to medium income households (earning R3, 500 to R 7,000 p.m.).

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™ Progressive Informal Settlement Eradication is a primary aim of the new policy. Informal settlements must urgently be integrated into the broader urban fabric to overcome spatial, social and economic exclusion. (This aspect had already been recognized by the KwaZulu-Natal Minister of Housing, Mr. Dumisani Makhaye in 2001/2 through the Slums Clearance program, prioritizing the insitu upgrading of informal settlement as the KZN DoH’s primary focus.) ™ Promoting densification and integration of previously excluded groups into the city and the benefits it offers and to ensure the development of more integrated, functional and environmentally sustainable human settlements, towns and cities. One aspect of this process can be achieved through supporting urban renewal and inner city regeneration ™ An overall strategy to facilitate the release of well-located public land to municipalities is being developed, furthermore funding for the acquisition of private land for housing purposes will no longer form part of the housing subsidy. (The responsibility for the acquisition of land for housing development now rests with the Department of Land Affairs) ™ Developing a rural housing programme which is to deal with a comprehensive range of rural housing related issues, such as tenure, livelihood strategies and broader socio-cultural issues. (This policy has now been compressively developed and the initial rural housing projects are now being implemented in KZN) ™ The document also suggested greater use of the ‘social housing instrument’ to facilitate the production of effectively managed institutional housing in the areas where demand for institutional or managed housing, of all types, exists.

In summary the discussion document places greater emphasis on the process of housing delivery (emphasizing planning and engagement), the quality of the housing product (both in terms of location but also in terms of final housing form) and the long-term sustainability of the housing environment (leading to a focus on institutional capacity).

Additionally it should be noted that the Expanded Public Works Programme (EPWP) is aimed at alleviating and reducing unemployment by the provision of work opportunities. The principles/guidelines of the above plan/programme should be taken into account when housing projects are undertaken.

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3.4 Housing Typologies1

The 2001 census shows that the City of uMhlathuze, which encompasses an area of 796 sq. km (compared to Durban 2 297 sq. km) had a population of 289 186, which was housed in a total of 67 106 dwellings.

Of the total of 67 106 dwellings, by far the largest number of dwelling, 37 799 dwellings were houses or brick structures on a separate stand or yard, whilst 10 034 dwellings were traditional dwellings/huts/structures made of traditional materials, and 7 727 were flats in blocks of flats.

There were 4 321 informal dwellings/shacks not in back yards, but in informal /squatter settlements, whilst 2 568 dwellings were in town house/cluster house complexes, and 1 873 were houses/flats/rooms in a back yards. A further 1 263 dwellings were rooms/flatlets not in backyards but on shared properties and 1 225 informal dwellings/shacks in back yards. Caravans and tents accounted for 266 dwellings and boats 30.

Housing Types

60.00 50.00 40.00

% 30.00 20.00 10.00 0.00 Other dwelling flats yard stand Traditional Informal Room on a on Room in back yard back in on a separate duplex, triplex Shack in back Town simplex,Town Brick structure Brick Flat in block of dwelling/shack shared property House/flat/room

Graph 1: Housing Typologies in Umhlathuze

1The following sections have been drawn from the uMhlathuze Housing Needs Assessment, Helgard Botha Ass, Sep 2005. Page 12

DISTRIBUTION/GEOGRAPHY BY DWELLING NO. GEOGRAPHICA FORMAL TRADITIONAL INFORMAL BACKYARD SHARED PROPERTY TENT/CARAVAN/BOA TOTAL L AREA No % No % No. % No. % No. % No. % 1 Dube 8286 17% 2695 27% 855 20% 488 16% 345 27% 42 14% 12711 2 Richards Bay 9945 21% 628 6% 63 1% 366 12% 87 7% 78 26% 11167

3 Zungu/Madlebe 6697 14% 2110 21% 259 6% 811 26% 136 11% 33 11% 10046

4 Esikhawini 7051 15% 78 1% 30 1% 133 4% 31 2% 15 5% 7338 5 Khoza 2342 5% 1401 14% 2660 62% 507 16% 138 11% 77 26% 7125 6 Nkwanazi 3149 7% 1259 13% 361 8% 369 12% 217 17% 15 5% 5370 7 Mkhwanazi 1971 4% 1457 15% 39 1% 90 3% 9 1% 0 0% 3566 8 Empangeni 3290 7% 36 0% 6 0% 152 5% 45 4% 9 3% 3538 9 uMhlathuze 1963 4% 47 0% 15 0% 72 2% 224 18% 6 2% 2327 10 Nseleni 2182 5% 18 0% 6 0% 77 2% 0 0% 6 2% 2289 11 Benjani 554 1% 275 3% 27 1% 15 0% 0 0% 0 0% 871 12 Vulindlela 595 1% 30 0% 0 0% 15 0% 31 2% 15 5% 686 13 Umlalazi Nature 51 0% 0 0% 0 0% 3 0% 0 0% 0 0% 54 Reserve 14 Kwambonambi F. 18 0% 0 0% 0 0% 0 0% 0 0% 0 0% 18 R. Totals 48094 100.00% 10034 100.00% 4321 100.00% 3098 100.00% 1263 100.00% 296 100.00% 67106 71.67% 14.95% 6.44% 4.62% 1.88% 0.44%

Table 3: Housing Typologies

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Dube has the largest number of traditional dwellings with 2 695 (27%), followed by Zungu/Madlebe with 2 110 (21%), Mkhwanazi 1 457 (15%), Khoza 1401 (14%) and Nkwanazi 1259 (13%). Khoza with 2 660 (62%) has the largest number of informal dwellings/shacks in informal settlements, followed by Dube with 855 (20%) and Nkwanazi 361 (8%).

3.5 Economic Activity

In the universe of all persons in uMhlathuze in 2001, aged 15-65 i.e. a total of 186 319 persons, 67 390 (36.17%) were employed and 46 065 (24.72%) unemployed. The balance of 72 864/ (39.11%) were defined as not economically active. Therefore of the economically active population of 113 455, unemployment as per the official definition, stood at 40.69%. Unemployment amongst Africans was the highest at 47.41%. The foregoing is summarised in Table 4 below:

African % Coloured % Indian % White % Total %

Employed 49 434 52,6 941 79,0 4 014 91,6 13 001 93,6 67 390 59,4

Unemployed 44 562 47,4 250 21,0 370 8,4 883 6,4 46 065 40,6

Sub-total 93 996 100,0 1 191 100,0 4 384 100,0 13 884 100,0 113 455 100,0

Not economically 63 913 40,5 515 30,2 2 469 36,0 5 967 30,1 72 864 39,1 active 1

Total 157 909 1 706 6 863 19 851 186 319

Table 4: Unemployment statistics

Note 1: % expressed as % of total of population group e.g. 63 913 as a % of 157 909. Of the approximately 67 400 persons employed in uMhlathuze in 2001, a total of 31 541 (46.8%) earned R1 600 per month or less, 45 055 (66.85%) earned R3 200 per month or less and only 3 584 (5.32%) earned R12 801 per month or more. Whereas 46,8% of total employed earned R1 600 per month or less, of the African income earners 58.95% earned R1 600 per month or less, the figure for Coloured income earners was 23.13%, Indians 16.90% and Whites 11.56%.

With the housing subsidy eligibility set between R0-R1500 (highest subsidy = R36 528) and R1500- R3 500 (Full subsidy with beneficiary contribution R2479) per month as well as, from the 1st of April 2006 a

Page 14 credit linked option for income earners between R3500-R7000 , it is clear that the majority of households in uMhlathuze will qualify for a housing subsidy, with a very high percentage being eligible for the maximum available subsidy.

3.6 Employment Trends

Since the development of the port in 1976, the main driver of economic growth has been the port itself, and the major heavy industry that it has attracted. The port handles about 87million tonnes a year, representing 51% of South Africans seaborne trade, and transport storage and communications accounted for employment of 4 365 (6.48%) in 2001, and manufacturing employment of 10 089 (14.97%). Importantly, whilst manufacturing ranked second in terms of employment, after community, social and personal services at 13789 (20.46%), transport/storage and communications only ranked seventh.

Employment in wholesale and retail trade at 9 146 (13,57%) could well surpass manufacturing in the short-term, and financial, insurance, real estate and business services with 5 300 employees (7,86%), like wholesale and retail trade, will benefit from the planned new projects and expansion of existing plants/facilities.

Recognising these trends and in anticipation of future growth in the non-manufacturing sectors of the economy, provision has been made for the C.B.D. of Richards Bay to expand both to the north and south. The proposed northern expansion is 90510 hectares, and the southern expansions 192070 hectares (total 28,2580 hectares). A realistically achievable F.A.R./P.A.R. would probably not exceed say 1,0 in the medium term, yielding 282 580 m² of floor space. At say 1 worker/employee per 25 m² - 30 m², across a wide spectrum of uses, including shops, offices and service industry, this expansion can provide employment for about 9 500 – 11500 people – a very significant number.

However not all of the employees will be “new” employees, and that there may be a movement of some firms from the industrial areas for example, easy access to the CBD and the provision of affordable housing within and close to the C.B.D. will be key challenges.

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3.7 Population Growth Forecasts

Important to the future demand for housing is the projected growth of population, and over the next decade this will be greatly influenced by the aids pandemic, with very high H.I.V. infection rates, especially in KwaZulu Natal, and the deaths resulting from opportunistic diseases such as T.B., which is prevalent amongst those with weakened immune systems.

On a national basis, the population is expected to increase but at declining growth rates, from approximately 1.53% in 2001, to 0.6% in 2005 and only 0.1% in 2007, at which point the population begins to decline each year, with the population in 2015, projected at 46 599 840, some 885 529 less than the 2005 estimate of 47 485 369. With the highest incidence of H.I.V. infections the decline in population of KwaZulu Natal will be proportionately higher.

Infection rates in KwaZulu Natal, are projected to peak this year at 19.2% (compared with national at 16.2% in 2006 ), and aids deaths peak in 2009 at 194 690 (25.6% of the national total of 760 174 for that year). By 2010 accumulative aids deaths, for KwaZulu Natal are projected at 1 141 060, and in that year life expectancy is projected at only 37 years, a decline of 22 years from 59 in 2000. The national figure is projected at 41 in 2010, a decline of 15 years from 56 in 2000.

The foregoing analysis leads us to conclude that the probability is that there will be very limited, if any, “natural” population growth in uMhlathuze between now and 2015, with a slow recovery in growth thereafter. Migration from other areas will however continue, but this rate of migration is very difficult to estimate. 3.8 Housing Needs Assessment

3.8.1 Introduction

In uMhlathuze housing needs vary greatly across a wide spectrum of housing developments, from the formal up-market suburbs of Richards Bay, to the informal housing/shack development and traditional homes found largely in the tribal authority areas. It is however in these rural/tribal authority areas that the greatest needs exist, and after the finalisation of existing housing projects, the removal of slums and informal settlements and rural housing development are the next two priorities in terms of the Provincial

Page 16 and National Departments of Housing. The question of land tenure is therefore a major challenge in uMhlathuze.

Much of the land within the City of uMhlathuze not readily developable due to limitations such as private land ownership, lack of suitable infrastructure, environmentally sensitive wetlands, geotechnical and environmental considerations, however there is an urgent need to give careful consideration to the process of urban densification and the identification of well located land for development.

With work opportunities in the C.B.D.’s of both Richards Bay and Empangeni likely to increase significantly in coming years, as employment in industries, other than manufacturing, such as financial, insurance, real estate and business services and wholesale and retail trade grow , there will be an increasing need for housing within or close to the C.B.D.’s.

Although great strides have been made in recent years, in the provision and planning of essential services in the tribal authority areas, there are often no or inadequate sanitation facilities, long distances to water supplies, limited electrification and no municipal refuse disposal systems in these areas. (See infrastructure shortages section 3.2.2)

3.8.2 Slums clearance

The analysis of the census data undertaken quantifies and identifies the locations of the immediate need for housing. A total of 5 812 informal dwellings/shacks including 1225 back yard shacks and 266 caravans/tents being used as dwellings are identified. Of these 4321 are informal dwellings not in back yards or caravans and tents i.e. in informal settlements. This data clearly indicates that the most pressing housing need, in terms of slum clearance, is to be found in Khoza with a total of 2660 (62%) informal dwellings (excluding shacks, tents or caravans). Dube follows with 855 (20%), then Nkwanazi with 361 (8%), and finally Zungu/Madlebe with 259 (6%) of informal dwellings.

Having determined that Khoza is the area of greatest need, in terms of slums clearance, one is able to focus on affordability and the need for subsidies. Census data indicates that over 90% of the labour force (persons 15-65 years ) in the tribal authority areas are unemployed and earned no income or R1 600 per month or less. The formal township figures being Esikhawini, 70,27%, Nseleni 84,62%, Zungu/Madlebe 86,99% (which includes Ngwelezane), and Vulindlela 87,74%, which can be compared with Empangeni at 43,79%, and the combined Richards Bay at 52,92%.

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% of informal dwellings in informal settlements in the Umhlathuze Municipality

6% 1% 3% Khoza 8% Dube Nkwanazi Zungu/Madlebe 20% 62% Richards Bay Other

Graph 2: % of informal dwellings in Umhlathuze Municipality

Khoza with a population of 24 164, and a labour force of 15 311, is the area of greatest need, and of its labour force, 67,59% are unemployed or report no income, and a total of 93,87% have no income or earn R1 600 per month or less.

Dube has a population of 52 238, has a labour force of 31 433, with 21 663 unemployed or reporting no income, and a total of 92,7 % reporting no income or an income of R1600 per month or less. Therefore the housing backlog in terms of slums clearance is calculated at 5812.

3.8.3 Rural Housing

Dube has the largest number of traditional dwellings with 2 695 (27%), followed by Zungu/Madlebe with 2 110 (21%), Mkhwanazi 1 457 (15%), Khoza 1401 (14%) and Nkwanazi 1259 (13%).

Whilst many of the 10 034 traditional dwellings offer more than adequate housing, often in idyllic settings, the reality is that many of these traditional dwellings do not provide satisfactory shelter, compounded by the absence of basic services and amenities. Based the infrastructure backlogs determine in the district infrastructure master plan 66% of these households are below the acceptable Page 18

RDP minimum standard in 2004/5. This therefore indicates that the backlog or need for rural housing can be calculated at 6622 housing units.

3.8.4 Social Housing/Hostels

There are 6 119 “living quarters” and whilst these are not considered housing units for purposes of the census, they should be considered when assessing housing needs.

The largest number are to be found in Vulindlela, namely 1854, outnumbering the other types of housing by a ratio of 2.7:1,0 However an inspection of these units in Vulindlela indicates that many of these living quarters have been developed to cater for the needs of students studying at the University, and are probably suitable for the intended use. The next significant number of “living quarters” is the 1 510 within uMhlathuze, the vast central area encompassing the port and extending inland beyond Empangeni, north-eastwards to Khoza and to the south-west to Felixton.

The Esikhawini Hostels Socio-Economic Survey of 2003, shows 1402 individual “quarters” with a population of 4 709 ( head of household 1 477, dependents 1 563, spouses 129, lodgers 1 540). According to the survey 87% of respondents regard the hostels as their permanent residence. However due to the large number of living quarters catering for students it is estimated that only 30% of the total figure should be included in the social housing backlog estimations. Therefore the housing backlog in terms of Social Housing or Hostels can be estimated at (6119 x 30%) = 1836.

3.8.5 Middle income housing

The large gap between middle income housing prices in the townships and those in Richards Bay/Empangeni, makes it difficult for the majority of African middle income earners to move to Richards Bay and Empangeni, should they wish to do so, and a significant proportion of their needs should be provided for within the townships, where the pressure on land and house prices is far less, with sites seldom selling for more than R35 000, and attractive houses for more than R250 000, about one half the price in Richards Bay/Empangeni.

With the Employment Equity Act and Black Economic Empowerment increasingly coming to the fore, demand for middle income housing (and upper income) from this quarter will increase significantly and must be catered for.

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This need for middle income housing in Richards Bay and Empangeni, which has grown significantly in recent years, is in part due to the fact that Africans are entering this market in increasing numbers, and now reportedly constitute roughly one-third of the market.

3.8.6 Upper income housing

The demand for upper income housing in Richards Bay can be met by a number of planned projects including the proposed golf-course estate and Meerensee infill sites, whilst in Empangeni there is not significantly high demand at the upper levels. Furthermore with much of the land surrounding the town in private ownership, this demand should be supplied by the private sector.

3.8.7 Summary of Housing Needs and Priorities

The removal of slums and informal settlements is a priority of the Department of Housing, and the census of 2001 identified 5 812 informal dwellings/shacks including caravans/tents being used as dwellings, with 53,22% located in Khoza and 19,48% in Dube.

A total of 10 034 traditional dwellings/huts/structures made of traditional materials within the Municipal boundary, and taking into consideration that the rural housing policy and subsidies cater for the development of “formal” structures in the tribal authority areas, a programme of development should be implemented. However only 66% of this figure will be added to the housing backlog calculation based on those dwellings that are currently below the minimum acceptable basic service level (6622).

A total of 1836 “ living quarters” specifically related to a social housing need were identified, the presence of living quarters in general is indicative of a need for social housing. Therefore the upgrading of the hostels and the conversion of some to flats for sale or rent should be prioritized. Therefore the total estimated housing demand for the Umhlathuze Municipality can be calculated at 14270.

Slums Clearance Rural Hostels Total 1. Khoza 53% 1. Dube 27% 1. Esikhaweni 76% 2. Dube 20% 2. Zungu/Madlebe 21% 2. Nseleni 16% Est. Backlog 5812 6622 1836 14270

Table 5: Calculation of Housing Demand

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4 LAND IDENTIFICATION

One of the primary issues facing the uMhlathuze Municipality is the identification of suitably located land for development. The Municipality has recognized this need through focusing much of its capacity to the investigation of land that is suitable for housing development. The identification of land is a priority of the “Umhlathuze five year development plan” completed in October 2005 by Metplan (Richards Bay) Inc.

This plan lays out a development approach to the securing of land for low medium and high income housing. Based on this plan and discussion with the municipal housing officials the following areas for development have been suggested.

The Department of Land Affairs is currently looking to identify land, in the municipal area, to be included in the land reform program. The department have been liaising with the Municipality to assist in the process of identifying such land for development, however no suitable land has been identified as yet.

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POTENTIAL LAND FOR DEVELOPMENT

Land Est. Property description, Potential issues? Bulks No of Extent & (est. Value), Sites ownership

Low Income

Umhlatuze Village 3000 State land. Na Transfer of dev rights to Municipality OK Phasing 2-5 Aquadene/Birdswood ex 1000 750Ha. Na Well farmed forest land may be difficult to Na acquire Esikhaweni / Vulindlela 800 Mix of private and state High Agri value, Bulks to be extended, private Sanitation capacity needs Corr ownership. Na ownership upgrade Gobandlovu/ 1000 Private Ownership, Na Private Ownership Sanitation capacity needs Esikhaweni Infill upgrade Iniwe 1500 Private Ownership, Na Private Ownership Na

Medium Income Aquadene Corr 572 Por 13 (of 1) of Erf 11488, EIA and bulk sanitation to be upgraded Sanitation bulk network to 20 Ha, Council be upgraded Intingwe 400 Na Na Na

Hillview Phase 2 230 Por 7,10 of Erf 7955, 26Ha, EIA, DFA approval and poss Clayey soils OK Council Wild-en-Weide ex 1719 Rem Erf 11494 & 11497, Private land availability for development is 326 Ha, (R8-10 Mill) doubtful Birdswood ex 69 Erf 8511, 8512, 8552, EIA still to be undertaken OK 22 Ha (R1 mill), Council

Page 22 Ngwelezane Phase 2 170 Na None OK

Wild-en Vilde – 50 12Ha, Council NA Na Brackenham buffer Emphangeni 100 1/4709 Na OK

High Income

Mzingazi Golf Es 178 Lot 5333, 7437& rem Erf 629 NA OK 17Ha Mzingazi 180 Por Rem Erf 533, Council Environmentally sensitive area requires EIA Further investigation req

Lighthouse Node 130 (R4.7 Mill)19ha, Council EIA to be completed OK

Meerense, Dune route 100 Erf 7438, Council, 37Ha (not all Environmentally sensitive, public opposition OK Loodvislyn developable) Two Mile Node 70 9.4 Ha (R2.35 mill), Council EIA and re-Zoning OK

Meerensee, Krewel 70-100 Erf 7429, (R2.5 Mill) 10 Ha, Dept Accessing land from Dept of Edu OK Kring Junction of Education, Soetwater Node 70 Por 115 of Erf 5333, 10.75 Ha EIA and rezoning application OK (R2.7 Mill), Council Marina Na Na EIA Na

Canal Node 400 56 Ha (R14 Mill) OK

Water Works Nodes Na 10 Ha EIA, environmentally sensitive area OK

Honey Farm Na 280 Ha EIA, Dev only in 2-3 years OK

Empangeni Airport Na Rem Erf 197 No12418, Por Farm NA Na North Wiltan Park Meerensee 5 385 Rem 5333 143Ha, Council Township est., DFA, poss public opposition Require new electrical sub

Page 23 est. R28 mill

Meerense retirement 195 Lease 39 of Erf 5333, 6.7 Ha, EIA and rezoning OK? Village Council Empangeni/ Nyala Park 30-35 3Ha,Erf 1937, Dept of ReZoning, acquiring land from Dept of OK Education?, Education Empangeni/ Richem 31 Erf 3169, 6.4 Ha, Dept of ReZoning, acquiring land from Dept of OK Education Education Empangeni CBD 45 Por 2 of Erf 8911 and por 2 Erf Na OK 37, 11.4 Ha, Gov

Table 6: Potential Land for development

Page 24 5 INTEGRATION WITH OTHER SECTIONS

5.1 Background

Integrated development is multi-faceted or multi-sectoral and therefore truly answers to the specific needs and circumstances of communities. It is thus critical that the distinction is clearly understood between integration at the broad IDP level and integration at the project level.

Project level integration is concerned mainly with ensuring that development at the community or project occurs in a manner that is holistic, multi-sectoral, appropriate and sustainable. This means ensuring that housing is accompanied, not only by the necessary water road, water and sanitation infrastructure, but also by other forms of development such as: ™ agricultural and economic development (e.g.: support to de-facto micro enterprises), ™ the provision of appropriate social facilities such as those relating to education and primary health care, ™ assistance to special needs groups (e.g.: those infected or affected by HIV / AIDS, orphans and vulnerable children, the aged etc).

At a planning level an integrated approach should ensure the appropriate prioritization of projects and their co-ordination with their associated supporting departments to maximise development impact which will most effectively gear up local community initiative and energy, thereby reducing dependency in the long run.

Page 25

Therefore the delivery of projects must be coordinated between departments. This integration can happen at a town planning stage through the establishment of education, health, economic development areas. However it is the responsibility of the Municipal housing official to ensure that all of the departments are aware of the proposed developments and that funding is coordinated to ensure maximum development benefits. At a basic level this plan should ensure that MIG funding is correctly coordinated with the proposed delivery of housing over the next five years.

In order to improve cross-sectoral integration service provider forums (SPF’s) were established in the mid-1990s. Initially these forums were established at a provincial level and later in the regions and districts. This initiative represented a breakthrough in translating the principles of integrated development into a workable form. The aim of SPF’s was to improve coordination among major service provider departments and to find synergies by working co-operatively.

These were non-statutory arrangements intended to promote co-ordination in the delivery of services in the KZN regions (later called districts). But by time the IDP process was fully underway in 2001, the district SPF’s had all experienced teething problems, some weathering these better than others. Many had degenerated into little more than “talk-shops” characterized by inconsistent attendance2 .However it is hoped that the existing housing forum should where necessary include relevant service departments to ensure better integration on housing projects in the Municipality.

5.2 District infrastructure planning

The infrastructural backlog has been identified during the Uthungulu District IDP process and is outlined below to provide an overview of the municipal infrastructure needs.

According to the IDP the current level of services provided in the rural areas is well below the accepted planning standards and the installation of services in the past was sporadic and ineffective. The overall objective in the provision of infrastructure, both physical and social, is in addressing the current backlogs to provide for balanced growth in an equitable manner with the emphasis being on accessibility to basic services which need to be provided in a sustainable and affordable manner to the Mbonambi Municipal community.

2 Robinson, P, Methods of achieving integration in development planning: Early experiences from South African municipalities, P12 Page 26

5.2.1 Service Level Policy

The following information forms the basis of the uThungulu District Municipal strategy, which has been drawn from the district’s Water Services Development Plan, updated in 2005, defining target levels of service to be achieved by the end of the 2006/2007 year in respect of the various services:

Water

™ To provide at least 90% of the population with water at a volume of 5litres /capita/day within a 1000m walking distance as a first objective and as a secondary objective ™ To provide at least 35% of the population with water to the RDP level of service being 25 litres /capita/day within a 200m walking distance.

Sanitation

™ To provide basic health hygiene to at least 90% of the population ™ To provide at least 25% of the population with sanitation facilities at least in the form of a VIP latrine.

Short Term Supply

To reach the first objective of the UDM water supply policy of providing at least 90% of the population with water at a volume of 5 /capita/day within a 1000m walking distance by the end of the 2006/07 budget year, the settlements with no formal water supply will be provided with a borehole and a hand pump.

Long Term Supply

To reach the second objective of the UDM water supply policy of providing at least 35% of the population with water to the RDP level of service by the end of the 2006/07-budget year, existing projects were expanded or new projects initiated.

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5.2.2 Water and Sanitation service backlogs

The overall estimated backlogs for sanitation and water supply in the Uthungulu District, per local municipality, are provided below.

Table 7: Total backlogs per local municipality for sanitation supply as at July 2005

Table 8: Total backlogs per local municipality for water supply as at July 2005

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5.2.3 Water supply

A large number of households within the Umhlathuze rural areas have no access to potable water supply. It has been estimated that currently 65.6% of households within these areas are below the accepted RDP standards for water supply. In the traditional areas inadequate water supply is the main cause of diseases, as many households have to make use natural water systems such as rivers and streams.

Households by Access to Water

Piped water Piped water on on community community stand: stand: Piped water distance less distance inside Piped water than 200m greater than Rain-water Dam/pool/st Water Ward dwelling inside yard from dwe 200m from Borehole Spring tank agnant water River/stream vendor Other Totals 1 1877 277 240 253 11 21 6 5 45 35 77 2848 2 2747 827 30 51 9 0 0 0 0 0 29 3695 3 1925 262 37 135 0 0 0 0 3 4 0 2369 4 1788 882 28 50 0 3 0 0 0 0 29 2784 5 24 191 228 467 4 5 48 4 193 0 156 1325 6 82 1100 804 1336 78 228 10 162 166 11 357 4340 7 351 516 528 1273 5 0 4 0 3 3 82 2772 8 1211 418 6 18 0 0 0 0 0 3 3 1667 9 1225 458 17 78 0 0 0 6 0 0 12 1805 10 11 91 15 65 38 167 18 11 1110 17 123 1676 11 3134947201710105668344981 12 174 1567 164 52 3 3 0 0 5 0 99 2079 13 60 1890 319 433 190 79 97 147 207 5 189 3629 14 614 2576 139 81 13 9 23 3 3 8 202 3685 15 26430198174181833188111951117 16 36520298389004060762668 17 1156251105300003031493 18 44189017280155215112083892597 19 1237 1241 98 50 0 0 0 3 4 0 29 2681 20 1222194359100000031565 21 74070931500000061494 22 201 2406 177 171 7 0 4 8 5 7 103 3111 23 556 600 50 84 0 0 0 33 61 0 9 1416 24 11 189 542 674 3 0 3 4 8 0 14 1472 25 39 779 902 730 5 15 3 3 0 3 103 2607 26 1805284196430300372214 27 1524 618 89 128 0 0 0 0 0 0 9 2395 28 389 615 274 187 101 6 6 3 36 0 19 1664 29 22 57 522 912 25 3 4 0 190 0 31 1795 30 461 432 39 95 7 334 4 3 219 0 22 1646 21890 23792 5817 7936 555 960 295 529 3224 147 1980 67590 32.39% 35.20% 8.61% 11.74% 0.82% 1.42% 0.44% 0.78% 4.77% 0.22% 2.93%

Table 9: Households by water supply (census 2001)

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5.2.4 Sanitation

The historical provision of sanitation within the area of the District Municipality has being supplied on an un-coordinated and ad-hoc basis. This service is normally supplied by the individual households itself as aqua/ privy or pit latrine, which is suitable throughout the scattered and sparsely populated areas.

Households by Sanitation

Flush toilet Pit latrine (connected Flush toilet with Pit latrine to sewerage (with septic Chemical ventilation without Bucket Ward system) tank) toilet (VIP) ventilation latrine None Totals 1 2167 27 134 246 131 13 129 2847 2 2979 121 414 9 150 0 23 3696 32282395600302362 4 1998 21 670 34 20 5 35 2783 5 18 9 11 501 490 17 273 1319 6 157 102 298 1149 2087 20 523 4336 7 713 42 98 101 1209 27 573 2763 8163840000151657 9 1407 85 0 76 85 6 137 1796 10 30 7 6 551 709 171 193 1667 11 5 5 83 86 486 3 303 971 12 100 146 405 434 871 25 90 2071 13 138 72 333 300 2008 81 684 3616 14 1028 90 460 356 1543 111 84 3672 15 33 16 206 81 476 10 280 1102 16 698 149 507 851 358 22 68 2653 17145100740101472 18 111 128 310 98 1147 10 774 2578 19 1602 52 8 343 523 13 124 2665 2015273303061542 2114448033671471 22 551 253 326 297 1329 21 310 3087 23 875 67 9 147 132 3 162 1395 24 15 17 102 647 363 15 289 1448 25 84 73 526 935 465 28 468 2579 262054760930392181 27 1914 73 177 14 132 7 55 2372 28 846 16 70 193 348 4 160 1637 29 19 50 256 533 757 18 134 1767 30 621 14 8 66 705 5 197 1616 28505 1765 5425 8073 16537 641 6175 67121 42.47% 2.63% 8.08% 12.03% 24.64% 0.95% 9.20%

Table 10: Households by sanitation supply (census 2001)

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The lack of proper sanitation facilities within the tribal areas can adversely affect the quality of the underground water system. In these areas only 9.7 % of households have access to flush sanitation facilities, while 40.3% of the households have no access to sanitation facilities.

5.3 Roads

The Department of Transport has established Road Transportation Forums, which prioritise the provision thereof in terms of the needs expressed by the community. An assessment of the location of the proposed development nodes have indicated an adequate all weather access to each of these. The nodes are further located on bus routes, which enhances the development potential thereof. The identified development nodes are located on district roads and it is proposed that these roads been maintained to improve their quality. Each housing project within the traditional areas will have to evaluate the current condition of the roads provided in that area to determine if any roads upgrades are required.

5.4 Electricity

The Eskom coverage indicates than an adequate supply is available to most of the identified development nodes. However there are deficiencies in the electrification grid in portions of the Mbonambi tribal area.

An analysis of the usage of electricity based on information obtained from the 2001 census indicates that while just over 50% of the population in the area have electricity 46% still use candles as there main source of light.

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6 AVAILABILITY OF INFRASTRUCTURE TO RURAL NODES

No. Rural Node Status Quo and Project proposed Comment 1 Nseleni/ o Pipe from Mandlazini Reservoirs to augment supply to No problems Khoza Nseleni reservoir was completed during December 2004. anticipated with the o A new 10Ml reservoir has been built in Nseleni. supply of water and o Sewerage treatment plant capacity is 3Ml/day. The current sanitation to new inflow is 0,9Ml/day. Refurbishment of the plan will take place. housing projects. There is capacity. 2 Esikhawini/ o Water pipeline from Forest Reservoirs near Esikhawini No problems Dube towards the east to supply informal areas north of Esikhawini anticipated with the and west of Lake Cubu. Project should be completed during supply of water and Jan/Feb 2007 – MIG funding application has been submitted. sanitation to new o Increase the capacity of the Cubu Reservoir by an additional housing projects. 9 Ml on the budget for 05/06 and completion during 06/07. There is capacity. o Additional 20 megalitre reservoir at the Esikhawini Reservoir to make storage 60 Ml in the same time frame as above. o Esikhawini purification works to be upgraded – planning for it during 05/06 and completion during 07/08. o 6. Construction of rising main for Esikhawini sewerage also to happen during the same timeframes as no. 5 above. 3 Ngwelezane o MIG project to increase pipe sizes for reticulation in Madlebe. No problems th (Madlebe) Site handover was on the 19 of April. Project should be anticipated with the complete by December 2005. supply of water and sanitation to new housing projects. There is capacity.

Table 11: Availability of infrastructure to rural nodes

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Notes:

™ The size of the sewerage treatment plant at Esikhawini is 12Ml/day (current inflow approximately 9Ml/day) and the Vulindlela plant has capacity of 2,8Ml/day (current inflow approximately 1,4Ml/day). ™ Ngwelezane is supplied from a WTW in the Mhlathuze River and water is stored in reservoirs are on the edge of town. The WTW provide 8 Ml and Ngwelezane town only uses about 4 Ml/day. The Madlebe area to the north of Ngwelezane uses on average 2 Ml/day. There is thus a spare capacity of about 2 Ml/day. ™ Ngwelezane has sewerage treatment plant has capacity for 5,8Ml/day and the current inflow is about 2,5Ml/day. ™ In general, the capacity of existing treatment plants can be expanded. ™ Nseleni supplied by Mandlazini Reservoirs (47,5Ml). The source of the Mandlazini Reservoirs is the Mzingazi Lake. ™ Dependant on the location of the proposed housing project, some bulk infrastructure may be required to service the housing project. This required bulk infrastructure will be financed by MIG. ™ Mzingazi areas have good reticulation and a 300 line feeds the Mbonambi TA and passes through the area. Source is the WW at Lake Mzingazi. ™ Mzingazi WTW also being improved. Mechanical and electrical improvements will increase the capacity to 65Ml/day opposed to the existing 45 Ml/day. ™ It is noted that the private forest area, between Esikhawini and Vulindlela can be serviced should the need arise.

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7 HOUSING DELIVERY PLAN

Based on the IDP, the Housing Needs Assessment and the uMhlathuze five year development plan the following plan has been developed.

7.1 Slums Clearance and Rural development

There are no current projects in this category

Proposed projects

Priority 1: Khoza Priority 2: Dube Priority 3: Madlebe Priority 4: Mkhwanazi

The areas of Khoza, Dube and Madlebe have been identified as the areas of greatest need for development. These areas have also been identified as both primary nodes of development through Ngwelezane, Esikhaweni and Nseleni and then directly identified as tertiary nodes for development in the IDP. The area surrounding Nseleni on the boundary of Khoza traditional area and the area surrounding Esikhawini on the boundary of the Dube traditional area can be classified as informal or slum settlements.

Therefore the proposal is to firstly implement two projects based on a dual or mixed methodology which caters for both the requirement for Rural housing and the upgrading of the existing slum settlements. These project will comprise an insitu upgrade of the informal settlement where possible3 linked to a rural development initiative in the surrounding traditional authority area.

It is suggested that due to the advanced stage of packaging the Dube upgrade and rural development project be implemented first and thereafter the Khoza upgrade and rural development project should be packaged.

3 Many of the houses in these informal settlement have been formalized and represent a significant investment on the part of the ‘owner’ however they fall directly in the main road reserve of under power lines where no development is possible. Page 34

It should be noted however that much of the high density residential development surrounding the Esikhawini Urban Area, especially that on its northern, north-eastern and eastern boundaries is on land identified as “No development recommended” in terms of the Geotechnical Development Zones for the City of uMhlathuze, prepared by Golder Associates and dated January 2005. It is recommended that the geotechnical no development areas in this area be further investigated.

At Nseleni, land on the western boundary of the township is not recommended for development. Both these no development areas need to be investigated further as part of the project feasibility studies for the suggested projects.

Finally a third rural housing initiative should be packaged in Madlebe.

7.2 Low Income Greenfield development (Current Projects, see also Appendix 1)

7.2.1 Umhlathuze Village Phase 1(1191) K19990054

The first phase of the Umhlathuze village of 1191 sites is approximately 40 % complete. 4

7.2.2 IDT project (250) K19990040

Approximately 50 (20%) of the 250 sites have been consolidated in the IDT project.

7.3 Low income Greenfield development (Planned Projects)

7.3.1 Umhlathuze Village Phase 2-5

The development of the next phases of the Umhlathuze village project will provide approximately 3000 new sites. The development of these well located sites just outside Empangeni area is crucial for the implementation of the other programs namely the Hostel upgrades and the insitu upgrades of Dube and Khoza informal settlements. These sites should have a pre-allocated no of sites for relocation from the parallel slums clearance and hostel upgrade projects. The exact amount of relocations can only be

4 The mini project comprising of 18 adjoining two roomed housing units, in Ngwelezane should also be noted Page 35 determined through a number of socio-economic surveys to be carried out during the feasibility stages of the suggested projects.

7.3.2 Aquadene

Approximately 1000 low income housing sites should be available from the +- 2000 available sites in the Aquadene development, the remainder being allocated to middle income or credit link bond housing development. This project is well advanced with the land secured by the DoH, the town planning at an advanced stage and conditions of establishment already approved for a portion of the development. Furthermore agreement has now been reached with the community on the proposed development.

7.3.3 Iniwe and Corridor

Investigations are currently underway to identify further parcels of land for development. Current areas of relevance and potential for low to middle income housing include the Corridor farm between Esikhaweni and Vulindlela and Iniwe. These properties may be able to yield 1500 (Iniwe, 280 Ha) and 1200 sites (Corridor 220 Ha) of both low and middle income housing opportunities.

Investigations into the availability of and suitability of these two sites should be implemented as a matter of urgency. 7.4 Hostel Upgrades

7.4.1 Esikhawini hostel upgrade (360 units)

A pilot project for the upgrading of 36 families in the Esikhawini hostel has been completed and this can now be extended to include the full 360 families in the project. Finance for the whole project has already being secured. Relocations from this project should be accommodated in either the Umhlathuze village phases 2-5 or on the two land parcels corridor and Iniwe farm.

7.4.2 Khoza Hostel upgrade (117 units)

The initial packaging of the Khoza hostel upgrade is now well underway. The project has been packaged based on R80 000 of funding secured from the DoH. However one of the primary concerns for this project is the availability of sites for relocating excess families from this project.

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Apart from potential relocations to the other low income housing project such as the Umhlathuze village’s phased 2 and 3, a piece of wooded farm area owned by Sappi in the immediate vicinity may be a potential for settling the relocated families from the project. Relocations from this project should be accommodated in either the Umhlathuze village phases 2-5 or on the land parcels to the south of the Nseleni settlement.

7.5 Middle Income or credit linked Housing

A number of potential projects in the middle income range (R3500-R7000+) have been identified. While many of these projects will cater for income earners above the minimum R7000 required for the DoH’s credit linked subsidy option, options for the inclusion of subsidy beneficiaries on the credit linked scheme should be investigated on a project by project basis.

These potential projects may be drawn from the following possibilities; however the feasibility each project will have to be evaluated before any definite estimates on the number of units to be produced is finalized.

Project Est. Sites Potential issues/Comments Aquadene 1000 Project feasibility and planning underway

Aquadene Corr 572 EIA and bulk sanitation to be upgraded Sinkniti 400 Potential for development to be investigated Hillview Phase 2 230 EIA and DFA approval required, poss clayey soils Wild-en-Weide ex 1719 Access to private land may be difficult

Birdswood ex 69 EIA required Ngwelezane Phase 2 170 Potential for development to be investigated Wild-en Vilde –Brackenham buffer 50 Potential for development to be investigated Emphangeni Erf 1/4709 100 Potential for development to be investigated

TOTAL pot mid- income sites 4310

Table 12: Middle income possible housing projects

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7.6 High Income Housing

It is estimated that the number of potential developments in the high income housing range is sufficient to meet the demand for housing in this range. It is also envisages that most of these development will be completed through the private sector developers.

Potential high income developments have been identified in table 1, in section 2.

7.7 Relocations

It is critical that housing projects are not delayed due to the lack of alternative sites for relocations. Therefore a careful analysis of projects in existing settlements should be carried out to estimate the number of relocations required in the planned projects. Until this evaluation has been carried out at least 25% of all partial or full Greenfield developments should be allocated for relocations. Thereafter all new Greenfield projects should have a separate number of relocation allocations based on a careful analysis of the surrounding projects to allow for overflow from other projects.

7.8 Housing Response To HIV/Aids

The KwaZulu – Natal Department of Local Government and Housing, in its document “ Aids : Provision Of Housing ”, states that 1 in 3 people (should read adults) in KwaZulu Natal are infected with HIV, and by 2010 there will be 750 000 AIDS orphans in the Province ( it is estimated that by 2008 there will be 1,5 million children headed households in South Africa). The document submits that the Province can assist with the alleviation of the crisis caused by AIDS by providing funding for the victims of the disease on one of the following bases:

• Through the establishment of cluster homes or children’s villages for AIDS orphans; • Through the provision of transitional housing for adults and children who are suddenly faced with having no bread winner as a result of death because of AIDS; • By the provision of facilities for home based care where families are prepared to assist by looking after victims of AIDS, whether persons with AIDS or AIDS orphans.

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It is the last of these bases (home based care) that currently finds favor, and where appropriate, the Council should access the necessary funds in line with the Province’s guidelines.

It is suggested that the Municipality as a matter of urgency package and implement a HIV based project. This project should be initiated though an established social welfare NGO.

7.9 Summary of Housing priorities

The following table provides a priority list for the delivery of housing projects in the Umhlathuze Municipality. It is however important to note that this list is drawn from current available information on the projects in question and that depending on new information which may come to light, this list may be amended on a yearly basis (with sufficient justification to the DoH). Furthermore this list of projects is divided into a number of sections i.e. Slums clearance, rural housing, PLS etc. and therefore HOUSING PRIORITY LIST Sites Est. Value (R/Mill) Slums clearance – Rural Housing Projects 3700 1. Esikhaweni / Dube Wards 12,13,14,15,16,20 & 22 1500 63 2. Nseleni / Khoza Wards 5,7 & 8 1200 50.4 Rural housing 2000 3. Madlebe Ward 24,25,27, 28 & 29 1000 42 4. Mkhwanazi Ward 10, 11, 18 & 30 1000 42 PLS & Greenfield housing projects 5700 1. Umhlathuze Village P2-5 Ward 9 2000 84 2. Aquadene Ward 2 1000 42 3. Corridor (investigate) Ward 14 1500 63 4. Iniwe (investigate) Ward 29 1200 50.4 Hostel Upgrades 441 Esikhaweni Ward 20 & 21 324 12.6 Nseleni Ward 8 117 4.6 HIV Aids 30 HIV project (location to be determined) 30 1.3 Total 11841 455.3 mill

Table 13: Housing priority list

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Note: ™ The number of sites indicated is a rough estimate that will have to be updated during the feasibility and packaging phase of the projects. ™ Not all of the projects will be completed with in the 5 year horizon ™ Packaging and evaluation should commence on Corridor and Iniwe as soon as possible ™ It is expected that packaging on the third and fourth rural projects, Madlebe and Mkhwanazi will only commence in 2007.

8 PERFORMANCE MEASUREMENT

In order for the housing sector plan to be practical and useful it must be effectively and accurately monitored. A suggested method of monitoring and evaluation of housing projects at packaging or feasibility stage can be drawn from PPT’s DOH project packaging course. The information from this course is available to housing officials within the municipality who have already completed the course.

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

8.1 Preliminary assessment

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

8.2 Pre-feasibility

It is in this stage that project preparation starts in earnest and significant project budget is required. It entails careful assessment of the project basics (e.g.: land availability, site suitability etc) by a team of specialists. The project concept and rough capital and operating budgets are produced. Key risks are eliminated, quantified or referred to the feasibility phase for resolution. The risks clarified in this stage

Page 40 form the basis for the projects success or failure. This stage equates to the conditional approval stage in relation to the DoH’s process detailed in Chapter 3A of the Housing Code.

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

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

8.3 Feasibility

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

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

™ Land assembly / land agreements ™ Further social facilitation ™ Socio-survey ™ Social compact ™ Preliminary town planning layout (Settlement plan required for rural housing projects) ™ Preliminary engineering design and costs (of less importance in rural housing projects) ™ Top-structure delivery i. Designs and cost estimates ii. PHP plan if required

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9 INSTITUTIONAL ARRANGEMENT

The current institution preferred arrangement for housing delivery in the municipality is based on the turnkey strategy, as outlined in Ch 3a of the housing code, though the use of independent Implementing agents (IAs). However a number of problems relating to this strategy have arisen both within the municipality and the province, usually because of the appointment of inexperienced or unscrupulous IAs. This has culminated in the DoH requiring a tri-partite agreement between the IA or Project Manager, the DoH and the Municipality.

While this tri-partite agreement will go a long way in alleviating a number of the current institutional problems experienced, it is still vital that the municipality looks at ways of increasing internal capacity in order to manage the delivery of housing projects internally in the future.

Due to the dynamic nature of policies relating to housing delivery in the province, it is vitally important that the relevant municipal housing official engages with the DoH before any institutional arrangements for the delivery of housing projects is finalised. This will ensure that the housing institutional arrangements are current and relevant at the time of project delivery.

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10 CASH FLOW

UMHLATHUZE PROJECT CASH FLOW Mill 2006/7 2007/8 2008/9 2009/10 20011/12 Total 1 July- 31 1 July- 31 1 July- 31 1 July- 31 1 July- 31 Sites Value June June June June June Current Projects Umhlathuze Village 1191 28.8 14.4 14.4 28.8 IDT Project 50 1.3 0.65 0.65 1.3 Planned Projects Rural/Slums Esikhaweni / Dube 1500 63 2.4 20.2 20.2 20.2 63 Nseleni / Khoza 1200 50.4 1.92 16.16 16.16 34.2 Madlebe 1000 42 1.6 13.47 15.1 Mkhwanazi 1000 42 1.6 1.6 PLS 0 Umhlathuze Village P2-5 2000 84 16.8 16.8 16.8 50.4 Aquadene 1000 42 8.4 8.4 8.4 8.4 33.6 Corridor 1500 63 0.2 0.2 Iniwe 1200 50.4 0.2 10.08 10.08 10.08 30.4 Hostel Upgrades 0 Esikhaweni 324 12.6 3.2 3.2 3.2 3.2 12.6 Nseleni 117 4.6 1.1 1.1 1.1 1.1 4.6 HIV/Aids 30 1.3 0.3 0.3 0.63

TOTALS 12112 485.4 15.1 30.5 61.7 77.9 91.3 276.5

Page 43 11 PROGRAM

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Page 45

APPENDIX 1:

CURRENT HOUSING PROJECTS DETAILS

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CAPITAL PROJECTS: HOUSING

PROJECT NO.1

PROJECT DESCRIPTION: UMHLATHUZE HOUSING PROJECT (K 1999 0054 PHASE ONE)

PROJECT MANAGER : INFRASERV/ DEZZO HOLDINGS

CONTACT PERSON : TONY JONES (DEZZO), JOSH VALOO (UMHLATHUZE)

PROJECT PHASES/ACTIVITIES TOTAL TARGET PROGRESS/ COMPLETION BUDGET DATES PERFOMANCE BY

PHASE 1 R38m 17/11/2006 100% J. Valoo

Construction of services and top structures- 1191. - Enlisting of applicants from J-223, J464 & J1169 Hostels 25/02/2006 100% complete - Construction of top structures and infrastructure services 17/11/2006 40% complete

PHASE 2 N/A 0% complete J. Valoo

Packaging and approval of application. 30/06/2006 0% complete - Procurement of services (Project Manager + DOH) 31/03/2006 0% complete - Formal appointment 30/04/2006 0% complete

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PROJECT NO. 2

PROJECT DESCRIPTION : ESIKHAWINI HOSTEL UPGRADE PROGRAMME

PROJECT MANAGER : Bvi CONSULTING ENGINEERS

CONTACT PERSON : DAVID LUTHULI (UM), RODNEY FOX (BVI)

PROJECT PHASES/ACTIVITIES TOTAL TARGET DATE PROGRESS/ COMPLETION BUDGET PERFOMANCE BY

PILOT PROJECT R11, 96m 30/10/2005 98%complete D. Luthuli

Refurbishment of J464 Flat 75% complete - Re-allocation of tenants 18/12/2005 75% complete - Signing of Lease Agreements 18/12/2005 Underway - Snag listing 30/03/2006 75% complete - Finalize allocations 30/03/2006 0% complete - Fencing and security 30/03/2006

PHASE 1 30/06/2007 100% D. Luthuli

Refurbishment of Madala and Sokesimbone Flats - Call for Tenders 30/05/2006 0% complete - Adjudication of Tenders and Appointment 30/04/2006 0% complete

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PROJECT NO. 3

PROJECT DESCRIPTION : NSELENI HOSTEL UPGRADE PROGRAMME (Packaging)

PROJECT MANAGER : UMHLATHUZE MUNICIPALITY

CONTACT PERSON : DAVID LUTHULI

PROJECT PHASES/ACTIVITIES TOTAL TARGET PROGRESS/ COMPLETION BUDGET DATE PERFOMANCE BY

PHASE 1 R80 000 (P1) 30/05/2006 100% D. Luthuli

- Secure Funds from KZN- DOH 31/03/2006 100% complete - Socio Economic Survey 30/06/2006 0% complete - Structural Surveys & Assessments 30/06/2006 0% complete - Secure alternative land for the displaced tenants 30/11/2006 0% complete

PHASE 2 D. Luthuli

REFURBISHMENT OF UNITS 30/11/2007

- Call for Tenders for Refurbishment N/a - Adjudication of Tenders and Appointments N/a

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PROJECT NO. 4

PROJECT DESCRIPTION : LAND PROCUREMENT

PROJECT MANAGER : UMHLATHUZE MUNICIPALITY

CONTACT PERSON : S’PHIWE THUSI

PROJECT PHASES/ACTIVITIES TOTAL TARGET PROGRESS COMPLETION BUDGET DATE BY

Liaise with various Stake Holders, Estate Agents etc to acquire land R5m 30/06/2006 30% complete S. Thusi for housing development

Page 50 PROJECT NO. 5

PROJECT DESCRIPTION : IDT HOUSING CONSOLIDATION PROJECT K19990040

PROJECT MANAGER : RURAL DEVELOPMENT SPECIALISTS

CONTACT PERSON : JOSH VALOO

PROJECT PHASES/ ACTIVITIES TOTAL TARGET DATE PROGRESS COMPLETION BUDGET BY

PEOPLE’S HOUSING PROCESS R1.3m 30/11/2006 100% J. Valoo

31/04/2006 0% complete - Set up Site offices and Community Support Centre 31/03/2006 0% complete (RDS) - Schedule monthly meetings with the beneficiary community , the Community Based Partner (Bambisanani) and the Developer (RDS)

Page 51 APPENDIX 2:

PROJECT DEVELOPMENT AREAS PLAN

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