ID HOUSING POLICY:
Bridging the Divides by Building Sustainable Communities
Challenges
Only 1, 8% of the total government expenditure is dedicated to housing.
One of the biggest problems in the housing sector is mobilizing finance for low cost housing. Those earning slightly more than R3 500 per month battle to get private sector top-up funding. Savings, formal credit and private sector investments have not been mobilized enough to supplement the subsidy of those persons who do qualify for one. The poor are also often the victims of commercial micro-credit and traditional loan schemes.
At this point in time rental housing is very expensive in South Africa, leading to overcrowding in flats and people living in backyard shacks. This issue is not recognized in the Housing White Paper.
People that reside in better-developed areas tend to be very antagonistic toward the development of low cost housing in their areas as they believe it will have a negative impact on the rates base of the area. The housing subsidies also do not cover better areas and this causes a transport problem for many workers.
Beneficiaries and/or local government still aren’t empowered enough, since orientations are made and implemented in a top-down fashion. And it is for this reason that productive, mutually empowering state partnerships between the state and civil society do not feature as they should in housing projects.
Everybody is not benefiting from the housing subsidies as they should because of fraud and corruption.
Some beneficiaries are also forced to sell their houses for extra income due to their inability to maintain their homes.
The Housing backlog is still widening due to rapid urbanization. The number of dwellings classified as "inadequate" (mostly shacks) has grown 20% from 1,5-million in 1996 to 1,8-million in 2001. Housing delivery in South Africa needs to double from the current delivery rate of about 250 000 housing units a year to 500 000 units if the backlog is to be removed.
The government’s new housing policy still puts the focus on quantity and not quality of housing.
ID Solutions
Delivery of houses should be done according to the original housing lists. The ID wants a comprehensive audit of houses already allocated, and people that still are on the waiting lists. Housing waiting lists must be transparent so that communities can monitor the application process.
In some municipalities housing waiting lists are non-existent, and the ID will call for its restoration and a comprehensive audit of the housing need in the particular municipality.
All housing sites must be serviced by government over and above the subsidy, where the subsidy will then be used for the top structure only in order to build a better dwelling. The land must be provided free of charge.
All housing must be energy efficient and have solar water heaters installed so as to reduce the energy costs of the household.
Government should not only build houses, but build communities where there are schools, clinics and other important infrastructure such as proper drainage systems and roads.
On the People’s Housing Process (PHP)
To date, only 10% of all housing delivery has occurred through the PHP. The Independent Democrats wants this programme to be massively expanded.
In this process families are the key decision makers and their skills are seen as the primary resource. Minimum intervention from the state but maximum support is another key feature of this program, along with the fact that families have the maximum choice available.
- PHP ensures that housing delivery takes place in a participatory way.
- The home owner is more conscious of their house as an asset.
Current barriers to this expansion are major policy constraints that include government officials concentrating on the numbers only instead of the development gains that come with the process.
Community trusts should be formed through newly established community institutions or existing NGOs. The trust would then decide which PHP option would work best for its community and obtain the necessary support needed in terms of skills that would be relevant to the project (i.e. builders, accountants, managers, etc.).
On Rental Housing
Rental accommodation can offer the poor a flexible and convenient form of shelter, especially for those who migrate circularly as well as those who cannot bear the costs of living on the outskirts of cities.
The Independent Democrats believe that the government needs to speedily formulate and implement rental housing as a core housing provision measure. With the already gigantic backlog growing bigger by the day it is clear that drastic measures are needed with much more state support. The housing crises have vast social consequences for the South African society and bring about immense developmental challenges, including water and sanitation, environmental challenges, and health challenges.
- Municipalities must target zones for housing that would fit into their Integrated Development Plans. Capital subsidies would have to be obtained from the provincial government and other needed finance would be accessed from the Renewal Debt Program.
- Municipalities would be required to encourage investments into these development zones with planning and rates concessions, and public investment in the environment.
- Subsidies from local authorities would reduce the rents of poor families.
- Hostels must be reconstructed into family units.
On Integrating our communities and Bridging the Divides
It is high time that South Africa follows the global trend of having rich and poor communities living together so that we can bridge the divides and build the sorely needed social cohesion.
Only 1, 8% of the total government expenditure is dedicated to housing.
One of the biggest problems in the housing sector is mobilizing finance for low cost housing. Those earning slightly more than R3 500 per month battle to get private sector top-up funding. Savings, formal credit and private sector investments have not been mobilized enough to supplement the subsidy of those persons who do qualify for one. The poor are also often the victims of commercial micro-credit and traditional loan schemes.
At this point in time rental housing is very expensive in South Africa, leading to overcrowding in flats and people living in backyard shacks. This issue is not recognized in the Housing White Paper.
People that reside in better-developed areas tend to be very antagonistic toward the development of low cost housing in their areas as they believe it will have a negative impact on the rates base of the area. The housing subsidies also do not cover better areas and this causes a transport problem for many workers.
Beneficiaries and/or local government still aren’t empowered enough, since orientations are made and implemented in a top-down fashion. And it is for this reason that productive, mutually empowering state partnerships between the state and civil society do not feature as they should in housing projects.
Everybody is not benefiting from the housing subsidies as they should because of fraud and corruption.
Some beneficiaries are also forced to sell their houses for extra income due to their inability to maintain their homes.
The Housing backlog is still widening due to rapid urbanization. The number of dwellings classified as "inadequate" (mostly shacks) has grown 20% from 1,5-million in 1996 to 1,8-million in 2001. Housing delivery in South Africa needs to double from the current delivery rate of about 250 000 housing units a year to 500 000 units if the backlog is to be removed.
The government’s new housing policy still puts the focus on quantity and not quality of housing.
ID Solutions
Delivery of houses should be done according to the original housing lists. The ID wants a comprehensive audit of houses already allocated, and people that still are on the waiting lists. Housing waiting lists must be transparent so that communities can monitor the application process.
In some municipalities housing waiting lists are non-existent, and the ID will call for its restoration and a comprehensive audit of the housing need in the particular municipality.
All housing sites must be serviced by government over and above the subsidy, where the subsidy will then be used for the top structure only in order to build a better dwelling. The land must be provided free of charge.
All housing must be energy efficient and have solar water heaters installed so as to reduce the energy costs of the household.
Government should not only build houses, but build communities where there are schools, clinics and other important infrastructure such as proper drainage systems and roads.
On the People’s Housing Process (PHP)
To date, only 10% of all housing delivery has occurred through the PHP. The Independent Democrats wants this programme to be massively expanded.
In this process families are the key decision makers and their skills are seen as the primary resource. Minimum intervention from the state but maximum support is another key feature of this program, along with the fact that families have the maximum choice available.
- PHP ensures that housing delivery takes place in a participatory way.
- The home owner is more conscious of their house as an asset.
Current barriers to this expansion are major policy constraints that include government officials concentrating on the numbers only instead of the development gains that come with the process.
Community trusts should be formed through newly established community institutions or existing NGOs. The trust would then decide which PHP option would work best for its community and obtain the necessary support needed in terms of skills that would be relevant to the project (i.e. builders, accountants, managers, etc.).
On Rental Housing
Rental accommodation can offer the poor a flexible and convenient form of shelter, especially for those who migrate circularly as well as those who cannot bear the costs of living on the outskirts of cities.
The Independent Democrats believe that the government needs to speedily formulate and implement rental housing as a core housing provision measure. With the already gigantic backlog growing bigger by the day it is clear that drastic measures are needed with much more state support. The housing crises have vast social consequences for the South African society and bring about immense developmental challenges, including water and sanitation, environmental challenges, and health challenges.
- Municipalities must target zones for housing that would fit into their Integrated Development Plans. Capital subsidies would have to be obtained from the provincial government and other needed finance would be accessed from the Renewal Debt Program.
- Municipalities would be required to encourage investments into these development zones with planning and rates concessions, and public investment in the environment.
- Subsidies from local authorities would reduce the rents of poor families.
- Hostels must be reconstructed into family units.
On Integrating our communities and Bridging the Divides
It is high time that South Africa follows the global trend of having rich and poor communities living together so that we can bridge the divides and build the sorely needed social cohesion.
