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City of Cape Town Department of Human Settlement Budget

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April 2, 2012

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City of Cape Town Department of Human Settlement Budget

THE WESTERN Cape Department of Human Settlement says it will make sure that the 500 000 people waiting for their houses will have a dignified wait while their houses are being built. Delivering the Western Cape Department of human settlement budget speech, Mr Bonginkosi Madikizela, MEC of Human Settlements said, “to ensure better human settlements delivery, we have taken important steps to work more effectively and better together with all stakeholders within the complex regulatory environment and long time frames, including the appointment of Professional Resource Teams and establishment of a Portfolio Management Unit, which I will address later.”

The province’s Urban Settlement Development Grant (USDG) was created at the beginning of the 2011/12 financial year by top-slicing 20%, or R502.2 million of the Human Settlement Development Grant and combining it with the Municipal Infrastructure Grant for Cities. This equates to approximately 5 000 less serviced sites and 5 000 less houses per year, which is roughly the difference between the 2008/2009 targets and the 2010/2011 targets. This grant is disbursed directly to the City of Cape Town. This is the main reason the HSDG for this year is R1.638 billion, and not R2.141 billion, as was projected in previous Medium Term Expenditures (MTEFs). Other departmental programs within its mandate included:

• R58 m for individual subsidies.

• R34 m for the Extended Enhanced Discount Benefit Scheme, in which housing loans to individuals are discounted or written off.

• R11 m for land purchase outside the City of Cape Town. R15 m to the National Home Builders Registration Council to assure the quality of homes delivered. The servicing of sites in the city is now funded by the USDG. So, in addition to the 10 656 sites, the department will fund from the HSDG, predominantly outside of the metro, the City will service a further approximately 6 000 sites under the USDG in 2012/13 and over 9 000 sites in 2013/14.  In addition, the City will also provide access to basic services on a shared basis to about 2 000 backyarder families and 4 000 informal settlement households under the USDG in 2012/13. In this budget year the departments spent, amongst others, R181 million on upgrading Community Rental Units in the City of Cape Town and R37 million on basic services provision.

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