The absence of a policy and legislative framework has been identified as a main hindrance in the development of human settlements, says the draft white paper on human settlements gazetted by human settlements minister Mmamoloko Kubayi this week.
The document deals with the problems of subsidised housing, land availability, upgrading of informal settlements, affordable rental housing, financing options and governance arrangements among other things.
It proposes a consolidated Human Settlements Act to replace the existing Housing Act. The proposed act will aim to progressively realise the constitutionally enshrined right to adequate housing. It will detail the role of municipalities in the provision of housing and provide for the expropriation of privately owned land and buildings where the land is underutilised and is well located for the development of human settlements.
The proposed legislation will also significantly relax the restriction on the voluntary and involuntary sale of state-subsidised housing.
The aim of the draft white paper is to incrementally realise the right to adequate housing for poor households and low-income to medium income households.
The document addresses the disparity between the subsidy amount provided by the government housing subsidy scheme and the actual costs of housing which it says presents a significant challenge in housing delivery that has resulted in fewer subsidised housing units being delivered.
“Government is committed to allocating adequate funding, streamlining administrative processes, and implementing transparent criteria for subsidy allocation,” the draft white paper says.
The government will explore simpler and affordable approaches to provide legal security of tenure, particularly for low-income households in both urban and rural areas. Efforts to curb unlawful occupation of land will also be undertaken.
The draft white paper reiterates government's commitment to developing mechanisms to increase access to affordable well-located land, including through the rapid release of public land, and zoning. Furthermore, the government will continue to explore, when feasible and justifiable, expropriation of land for human settlement development.
Government, it says, will also prioritise the renewal and (re) development of inner cities and the development of areas in which the vast majority of black South Africans are settled, such as in former townships, informal settlements, inner CBD buildings, and backyard shacks.
Also to be explored is the feasibility of extending the mandate of the Housing Development Agency so it can directly support municipalities to develop their land assembly strategies as well as acquiring land and buildings.
Other measures to be explored include the development and exploration of a quicker, simplified, and less costly process of registration and transfer of land for poor households. This will include registration and transfer of government-subsidised housing and security of tenure in rural land ownership.
Mechanisms will shall be developed to curb the prevalence of unlawful occupation of land.
The document also deals with the upgrading of informal settlements which it estimates to number over 3 200 across the country. The aim would be to transform them into inclusive, liveable and sustainable neighbourhoods that have adequate services and security of tenure.
Greater resources will be shifted to support informal settlements upgrading on condition that they are in suitable areas which are close to jobs or economic activities.
“Given the resource and capacity constraints, it is considered appropriate to prioritise security of tenure and provision of infrastructure in informal settlements,” the paper says.
The demand for affordable rental housing is expected to continue unabated as the population increases and urbanises. Government will ensure an availability of a range of differentiated rental housing products to suit affordability. It will develop a comprehensive legislative, policy and programme framework to realise the potential of the rental housing market.
The draft white paper notes that the delivery of affordable housing in formal townships is persistently weak in relation to the need and demand. “Far too many households struggle to access adequate housing for ownership primarily due to the unavailability of houses within their affordability range. Government will develop an affordable housing policy that ensures that the selling price is affordable to the household so that the cost of constructing the house is made reasonable and the cost of taking out a home loan is made reasonable.
“Primarily, land for construction must be affordable and available. ‘First mover’ incentives (for example, exemption from capital gains tax) can be offered to holders of large and suitably located land parcels.”
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