The Housing Development Agency Five Year Strategic Plan 2012/13 to 2016/17

Transcription

1 The Housing Development Agency Five Year Strategic Plan 2012/13 to 2016/17

2 TABLE OF CONTENTS FOREWORD BY CHAIRPERSON... 3 SECTION A: STRATEGIC OVERVIEW Establishment of the HDA Classification of the Agency Vision statement Mission Functions Guiding values Five-year written mandate between the Minister and the HDA Board Policy alignment and contextual considerations Outcome 8 alignment General considerations Key achievements of the HDA since its inception (2009) Corporate governance Strategic outcome oriented goals of the HDA Macro performance indicators SECTION B: STRATEGIC OBJECTIVES Programme and sub-programme plans Programme One: Strategic, finance and administration Programme Two: Land Assembly Management Programme Three: Programme and Technical Support Services Programme Four: Intergovernmental Relations and Strategy Alignment Capacity mobilisation approach Risk Resource considerations Funding arrangements relating to the Agency HDA Budget for 2012 to Operational budget Capital budget Section 29 project budgets Programme Operational (Annual) Plans Tables Table one: Table two: Table three: Table four: Table five: Figures Figure one: Figure two: Figure three: Annexures Annexure A: Annexure B: Primary and support roles, functions, products and services Performance areas for the Agency as per the written mandate Service delivery expectations of the Agency as per the written mandate Visionary goals and strategic objectives Macro performance indicators HDA Board and sub-committee structure Organisational structure Assembly and capacity mobilisation approach Five year budget Materiality framework

3 FOREWORD BY CHAIRPERSON The HDA is into its third year of operation and this is its first five year strategic plan for the period 2012/13 to 2016/17. The building blocks that were put in place in year one and two have gone a long way in enabling us to fulfil our targets as set in last year s plan. Our written mandate as per the Act has been concluded with the Minister of Human Settlements and various agreements and implementation protocols have been signed or are in the process of negotiation with the provinces and municipalities. Performance and delivery are now the key focus for our team. The primary focus as we head into year three will be on firming up relationships with the provinces and municipalities and continuing our discussions in order to ensure that all our stakeholders understand the role and responsibilities of the HDA, and more importantly what services we can provide. These relationships are crucial if we are to accelerate the of sustainable human settlements through land assembly, building and property acquisitions, and project support services, the HDA s by-line. Management of the two national priority projects, namely N2 Gateway and Zanemvula, continue, as do refinements to land geo-spatial services (LAPSIS) and the state land and property inventory (NaHSLI), and the framework for the priority housing areas has been submitted to the Department for approval. Although the HDA is on track to deliver on its mandate, some obstacles remain, the absence of a coherent land assembly programme for human settlements that can be funded being one of the main ones. It is of the utmost importance that appropriate and adequate funding is provided to enable the HDA to meet its legislated mandates. On behalf of the Board I am pleased to present the Agency s Five Year Strategic Plan 2012/13 to 2016/17. It is our view that the plan continues to provide a secure basis for sustained growth and delivery. We have ensured that this strategic plan is aligned with Outcome 8 of the Delivery Agreements signed by the National Minister of Human Settlements, and so we have included concrete targets to ensure the creation of sustainable human settlements and improved quality of household life. Mr N Sowazi Chairperson: HDA Board 3 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

4 Official sign-off It is hereby certified that this Strategic Plan: Was developed by the of the Housing Development Agency (HDA) under the guidance of the HDA Board Takes into account all the relevant policies, legislation and other mandates for which the HDA is responsible Accurately reflects the strategic outcome oriented goals and objectives which the HDA will endeavour to achieve over the period 2012/13 to 2016/17 Approved at an HDA Board meeting held on 24 January 2012 Ms Rooksana Moola Chief Financial Officer Signature: Mr Taffy Adler Chief Executive Officer (Accounting Officer) Signature: Mr N Sowazi Chairperson HDA Board Signature: 4 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

5 SECTION A: STRATEGIC OVERVIEW 1. Establishment of the HDA The Housing Development Agency (HDA) is a national public agency that promotes sustainable communities by making well-located and appropriately-planned land and buildings available for the of human settlements. As its primary activity, the HDA assembles state, private and communal land and buildings and releases it for. In addition the HDA provides project delivery support services to organs of state at local, provincial and national level. The HDA is established in terms of the Housing Development Agency Act No 23 of Classification of the Agency The HDA Act established the Agency as a juristic person operating as a national public entity which has been classified in terms Schedule 3A of the Public Finance Management Act. The HDA is an agent of the National Department of Human Settlements (NDHS), and thus extends the Department s and the sector s capability with respect to the identification, planning, acquisition, holding and disposal of well-located land and buildings for the of human settlements. It also extends the Department s capability with respect to associated project and services. 3. Vision statement Sustainable human settlements and communities developed on land and landed properties made available by the HDA 4. Mission A public agency that promotes sustainable communities by making available well located and appropriately planned land and landed property that realises integrated human settlements 5. Functions The functions of the HDA are provided in Section 7 (1) of the HDA Act and are listed in table one below. This strategic plan recognises that the core functions of the Agency will be reflected in the strategic vision and the operational philosophy of the Agency in responding to the delivery challenges facing the country s human settlements sector. Accordingly, the HDA is a tactical tool in the hands of government, specifically the NDHS, for accelerated human settlement s. It is a specially created entity and that is expected to assemble the capacity and capability to support the sector in order to deliver its services in a focused and continuous manner. It also supplements and enhances mandates and capacities of provinces and municipalities. The HDA has the following functions, products and services as outlined in S7 of the HDA Act. 5 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

6 Table one: HDA functions as defined by the HDA Act Section 7(1) (a) Develop a plan to be approved by the Minister in consultation with the relevant authorities in the provinces and municipalities 7(1) (b) Develop strategic plans with regard to the identification and acquisition of state, privately and communal owned land which is suitable for residential and community 7(1) (c) Prepare necessary documentation for consideration and approval by the relevant authorities as may be required in terms of any other applicable law 7(1) (d) Monitor progress of the of land and landed property acquired for the purposes of creating sustainable human settlements 7(1) (e) Enhance the capacity of organs of state including skills transfer to enable them to meet the demand for housing delivery 7(1) (f) Ensure that there is collaboration and intergovernmental and integrated alignment for housing services Deliverable/ Service/ Product Strategic plan Land assembly plans Developing medium-term land and building assembly programmes for provinces, municipalities and National Government Statutory and project documentation Preparing approvals for submission Land acquisition status reports Capacity support services and the Municipal Support Programme Developing good practices, templates, documentation and forms to facilitate approval applications Providing and/or enhancing capacity support in land assembly and project preparation and implementation Delivering technical services Collaboration agreements with organisations of state 7(1) (g) Identify, acquire, hold, develop and release state, privately and communal owned land for residential and community 7(1) (h) Undertake such project services as may be necessary, including assistance relating to approvals required for housing Acquisition of identified land, holding and releasing of land Developing medium-term land and building assembly programmes for provinces, municipalities and National Government Projects Developing good practices, templates, documentation and forms to facilitate approval applications Providing and/or enhancing capacity support in land assembly and project preparation and implementation Delivering technical services 6 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

7 Section Deliverable/ Service/ Product Providing contract services Providing project structuring, assembly and packaging services 7(1) (i) Contract with any organ of state for the purposes of acquiring land for residential housing and community for the creation of sustainable human settlement 7(1) (j) Assist organs of state in dealing with housing s that have not been completed within the anticipated project period 7(1) (k) Assist organs of state with the upgrading of informal settlements 7(1) (l) Assist organs of state in respect of emergency housing solutions Land contracts Identifying, acquiring, managing and developing land for human settlements for organs of state Assistance as required and defined in framework for programme Developing good practices, templates, documentation and forms to support approval applications Providing and/or enhancing capacity support in land assembly and project preparation and implementation Delivering technical services Assistance as required and defined in framework for programme Developing good practices, templates, documentation and forms to support approval applications Providing and/or enhancing capacity support in land assembly and project preparation and implementation Delivering technical services Assistance as required and defined in framework for programme Preparing approvals for submission Developing good practices, templates, documentation and forms to support approval applications Providing and/or enhancing capacity support in land assembly and project preparation and implementation Delivering technical services Identifying, acquiring, managing and developing land for human settlements for organs of state Providing contract services Providing project structuring, assembly and packaging services 7(2) (b) Establish compliance and fraud Risk and fraud mitigation measures prevention mechanisms to ensure the integrity of the Agency 7(2) (d) Introduce and manage a land inventory Relevant systems 7 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

8 Section and information system 7(3) (a) Declare priority housing areas for residential and community purposes in accordance with integrated plans and provincial spatial frameworks (b) Develop and submit a plan for such priority housing areas as contemplated in subsection 1(a) (c) Implement such measures as may be prescribed to fast-track housing in the declared priority housing areas Deliverable/ Service/ Product National Human Settlements Land Inventory Land and Property Spatial Information System Facilitate approval and declaration of PHDAs Enabling projects in priority housing areas The above functions, products and services are subject to criteria that are defined in S7 (2) of the Act, as follows: 7 (2) (a): ensure that residential and community s are sustainable, viable and appropriately located 7 (2) (c): ensure that job creation is optimised in the process of residential and community 7 (2) (e): ensure that community participation takes place In terms of section 5 of the Act, the Minister may authorise the Agency to perform any additional function that is consistent with the Act. Furthermore the Minister, in consultation with various MECs, may direct the Agency to conclude land assembly and/or project agreements with organs of state that lack the capacity to do so. 6. Guiding values The HDA has defined the following guiding values in its operations: Performance-orientated Excellence Accountability Teamwork These guiding values are supported by the following principles: Respect Trust Care Integrity 8 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

9 7. Five-year written mandate between the Minister and the HDA Board Section 8 of the Housing Development Agency Act, 23 of 2008, requires that a written mandate be concluded between the Minister and the Governing Board of the Agency to inform the operations of the Agency every five years. The written mandate concluded on 14 December 2010 sets out the following performance areas for the Agency: Table two: Performance areas for the Agency as per the written mandate Performance area Performance indicator Identify, acquire, hold, develop and release state, communal and privately owned land for residential and community purposes for the creation of sustainable human settlements Number of hectares of land acquired, assembled and/ or released by the HDA Provide project services in respect of housing s for the purposes of the creation of sustainable human settlements Number of households in informal settlements planned, formalised and upgraded complying with sustainable human settlements criteria Provision of short, medium and long term human settlements planning assistance to provinces and municipalities The number of provinces and municipalities assisted and the number of human settlements plans and project plans prepared by the HDA for approval by provinces and municipalities Provision of programme and project planning assistance and funding facilitation for provision of bulk and link services for the formalisation and upgrading of informal settlements and affordable human settlements The number of programme and project plans prepared and funding applications prepared and submitted to relevant funding authorities to fund and implement the provision of bulk and link services Develop and facilitate the approval of an integrated financial framework for the funding of land acquisition and assembly by the HDA The approval and implementation of a funded land acquisition framework for state and integrated human settlements Secondly, the written mandated outlines the service delivery expectations of the Agency for the five year period are as follows: 9 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

10 Table three: Service delivery expectations of the Agency as per the written mandate Service Delivery Target Identify, acquire, hold, develop and/or prepare and assemble well-located state and public land and/or property for human settlements Develop the land and provide project services falling within the ambit of the National Housing Programme, and the requirements of Provincial and Local Authorities Facilitate the collaboration and integrated intergovernmental alignment between the Agency and the three spheres of government for the facilitation, funding and provision of bulk and link services for human settlement and the programmes implemented by the National Department of Human Settlements Facilitate and provide planning and regulatory support and assistance to provinces and municipalities to declare priority housing areas. The identification, acquisition, holding and release of net hectares of state and public land for human settlement aimed at the low income and affordable housing market segment Facilitation, planning, implementation and of the land acquisition and projects which will contribute to the following national targets for the period 2010/ /14: Releasing ha of well-located public land for low income and affordable housing; Upgrading households in welllocated informal settlements with access to basic services and secure tenure; Supporting the NUSP programme; Improve access to basic services; and Providing at least well-located and affordably priced rental units per annum Facilitate the process of concluding implementation protocols in terms of the Intergovernmental Relations Framework Act that will enable joint planning, funding and provision of bulk and link infrastructure which will contribute towards the national targets for the periods 2010/ /14 Facilitate the approval and declaration of at least one priority housing area in each of the nine provinces by Policy alignment and contextual considerations The HDA must be pro-active in ensuring that its mandate contributes to the delivery on the objectives of government, relating in particular to the Comprehensive Plan for the Development of Sustainable Human Settlements (2004) and Outcome 8, which refers in particular to the creation of sustainable human settlements and improved quality of household life. The HDA s planning is aligned with Outcome 8 and the Medium Term Expenditure Framework. 10 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

11 8.1 Outcome 8 alignment The programmes and projects of the HDA will also service the outcomes required in terms of the delivery agreements signed between the President and the National Minister of Human Settlements, as further elaborated in the various performance agreements signed between the National Minister and the various Provincial MECs. These require the following to be delivered by 2014: Upgrading of units in informal settlements Development of affordable rental housing units as follows: social housing units community residential units institutional subsidy units private sector affordable rental units Acquisition of hectares of well-located public land for housing at 60 units per hectare Access to finance for households in the affordable housing market The HDA is directly responsible for the acquisition of hectares of well-located publiclyowned land and buildings, and will also assist in the upgrading of informal settlements and the of social housing and community residential units. The HDA will also ensure that its activities are aligned with the enhanced Human Settlements Vision General considerations The HDA is operating in an overall environment and sector that is undergoing a transition of strategic focus triggered by the policy shift from Housing to Human Settlements. Funding arrangements relating to the HDA need to be reviewed against the legislative and regulatory provision for funding for a Sec 3(A) entity. 9. Key achievements of the HDA since its inception (2009) Operated within the grant and other funds provided Achieved clean audits since inception Nine Implementation Protocols have been formalised and signed and a further four IPs have been prepared for discussion and finalisation Two Medium Term Operational Plans arising from the implementation protocols have been signed In excess of hectares of land has been identified and this activity is now focusing on the Outcome 8 which requires the release of hectares of public land - the LAM department has identified and verified the land required for this deliverable A Joint Coordinating Committee on State Land Release has been established and several meetings of the Committee resolved many bottlenecks around land release A policy outlining the criteria for identifying land, and a procedure for the transfer of state-owned land to the HDA has been finalised with the relevant state departments - 11 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

12 policy options for compensation of SOEs for land released for human settlements are also being explored with the Department of Public Enterprises In Limpopo the HDA has taken transfer of 72 hectares of land in Bela Bela, acquired on behalf of the Limpopo Department of Local Government and Housing The HDA is gearing up to take transfer in excess of 3000 hectares of land. An agreement was reached for hectares from the Servcon portfolio in the Free State to be transferred to the HDA Approximately hectares of public land have been identified jointly with Municipalities Two Johannesburg inner city buildings/properties acquired and four in Ekurhuleni have been identified for immediate release 309 Transnet properties measuring 812 hectares have been identified and transfer formally requested Two properties measuring 1068 hectares of state land in the Gauteng Province have been approved for release by the Department of Public Works Four properties measuring hectares of state land in the North West Province are awaiting Ministerial approval (Department of Rural Development and Land Reform) 21 provincial properties measuring 147 hectares have been formally requested from the KwaZulu-Natal Public Works Department The spatial analysis systems and capability developed by the HDA - LAPSIS (Land and Property Spatial Information System) and NaHSLI (National Human Settlements Land Inventory) is proving invaluable in support of the Agency s land identification and planning services and its work with the provinces The Draft Priority Housing Development Areas policy framework has been developed for consideration by the NDHS Capital and operational funding has been received for Zanemvula and N2 Gateway and both projects are performing well Additional projects have come on board during the period under review on request from national, provinces and municipalities 10. Corporate governance The governance of the Agency is entrusted to a Governing Board, with the Minister of Human Settlements being the executive authority responsible for the Agency. The Board consists of nine members. Four non-executive members are appointed by the Minister for Human Settlements. A further three non-executive members are each designated by the Ministers for o Public Works, o Rural Development and Land Reform, and o Cooperative Governance and Traditional Affairs respectively Two executive members are the CEO and the CFO. The HDA Board has considered and approved the Board Charter which is compliant with the Department of Human Settlement s Public Entities Framework for Governance. The Board undertakes to align itself with the King 3 Report on Good Governance. The structure of the Board and its sub-committees is illustrated below: 12 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

13 Figure one: HDA Board and sub-committee structure Management of the Agency: In terms of its macro structure, the Agency is managed by the Chief Executive Officer assisted by a senior team, which includes the Chief Financial Officer and general managers. Organisational structure and principles: The Agency s macro-organisational structure reflects the key operational functions as well as the key support capacity for the effective delivery on the Agency s mandate. 13 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

14 Figure two: Organisational structure 14 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

15 11. Strategic outcome oriented goals of the HDA In giving effect to the legislated functions of the Agency and the prevailing needs, priorities and expectations in the human settlement sector, the following goals and strategic objectives direct the work and activities of the Agency. The HDA contributes to the realisation of the human settlement priorities working in collaboration with various other stakeholders. Table four: Visionary goals and strategic objectives Goal One: Land and Property Availability and Release Goal Two: Land and Property Holding Goal Statement: To coordinate the integrated national (public sector) land and landed property inventory to facilitate the release of land for human settlements. Goal Statement: To efficiently and effectively manage land and landed property and release for human settlements Strategic Objectives: 1. Identify land for human settlements 2. Validate and prioritise identified land for acquisition 3. Prepare land for 4. Sector support in land assembly 5. Facilitate the release of public sector land for human settlements 6. Implement land release procedures and/or granting rights in land 7. Acquire (prioritised) land and properties 8. Monitor progress of on land acquired with human settlement funding 9. Establish and NsHSLI 10. Maintain LaPsis 11. Establish spatial analyses and modelling capability Strategic Objectives 1. Manage all fixed properties held by the HDA 2. Land and property revenue and benefits optimisation 3. Land and property maintenance and security Goal Three: Providing technical and programme capability Goal Statement: To ensure there is appropriate, capacity and technical support services for programmes and projects implementation that promote sustainable human settlements Strategic Objectives: 1. Provide programme and project portfolio planning, and implementation support to provinces and municipalities 2. Provide programme support to the informal settlement upgrading programme 15 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

16 3. Provide programme support to the emergency housing programme 4. Provide technical support services to identified and targeted projects within provinces and municipalities (including address slow moving projects and/or rectification projects) Goal Four: Organisational Credibility Goal Five: Intergovernmental Collaboration and Alignment Goal Statement: To operate and function as an organisation with a track record of quality, effective delivery and professional service Goal Statement: To foster intergovernmental alignment and collaboration for accelerating sustainable human settlement Strategic Objectives: 1. Develop a responsive organisation that applies effective and compliant systems to the delivery process 2. Build a values-based, sustainable, performance focused organisation Strategic Objectives: 1. Manage the and implementation of the HDA IGR Strategy and Policy Framework 2. Enhance the appreciation of HDA mandate and functions by identified public sector stakeholders 3. Monitor and ensure follow-up and referral of engagements with public sector stakeholders to close outreach 4. Facilitate the conclusion of agreements/contracts with key stakeholders 5. Support the implementation and of agreements concluded with organs of state 6. Facilitate sector IGR coordination and support 7. Ensure intergovernmental programme and strategy alignment 8. Apply the Priority Housing Development Areas Framework 12. Key performance information According to National Treasury guidelines for developing Strategic plans and annual performance plans emphasis should be placed on defining and assessing impacts, outcomes, outputs, activities and inputs as per the diagram on the following page: 16 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

17 13. Macro performance indicators In line with the above framework of National Treasury, with emphasis on the approach to develop outcomes with measurable outputs and optimal activities, the following macro performance indicators for the HDA have been defined. They are deemed to be consistent with that of Sustainable Human Settlements and improved quality of household life (Outcome 8). Refer to table five on the following page. 17 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

18 Table five: Macro performance indicators MACRO INDICATORS DESCRIPTION OF INDICATOR PROGRAMME MOST CLOSELY LINKED TO ACHIEVEMENT INDICATOR TARGETS ESTIMATES 2012/ / / / /17 1) Hectares of publiclyowned land released for human settlements This indicator tracks the publiclyowned land released for human settlements in terms of the delivery agreement Land Assembly Management ha ha ha ha ha 2) Number and extent of properties and/or land acquired by the HDA for human settlements (portions and hectares) This indicator tracks the number and extent of properties and/or land acquired by the HDA Land Assembly Management 5 properties and/or 50 hectares of land 5 properties and/or 50 hectares of land 5 properties and/or 50 hectares of land 5 properties and/or 50 hectares of land 5 properties and/or 50 hectares of land 3) Hectares of properties and/or land managed by the HDA This indicator tracks the extent of properties and/or land managed by the HDA Land Assembly Management ha ha ha ha ha 4) Percentage of HDA land released for human settlement This indicator tracks the extent of HDA-owned land (as per indicator 2 above )released for human settlements by the HDA Land Assembly Management 20% 50% 50% 50% 50% 5) Number of human settlement projects and/or programmes supported This indicator tracks the of human settlements projects and/or programmes through provision of project support services and capacity building support to organs of state Programme and technical support services

19 6) Number of PHDAs determined 7) Number of IGR protocols established, implemented and maintained This indicator tracks the process for pre declaration and declaration of PHDAs with provinces and/or municipalities Facilitate the process of concluding implementation protocols that will enable Joint operational and/ or project planning, Joint funding Prioritisation and recognition of HDA service IGR&SA IGR&SA THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

20 SECTION B: STRATEGIC OBJECTIVES 14. Programme and sub-programme plans The following programmes were developed from the impacts, outcomes, outputs, visionary goals and strategic objectives noted in the previous section. The specific strategic objectives linked to plans to give effect to these goals are found below (18. Operational Plans) Programme One: Strategic, finance and administration The purpose of the programme is to provide overall organisational support services to operate and function as an organisation with a track record of quality, effective delivery and professional service. The strategic, finance and administration programme consists of three broad functional areas as follows: Sub-Programme: Strategic Management Strategic planning, coordination and performance Communications and marketing Sub-Programme: Finance Management accounting and budgeting Finance Financial compliance and reporting Supply chain Risk Sub-Programme: Governance and Corporate Services HR and Records and document Facilities Legal services Information technology Company secretary Communications and marketing Documents and record Facilities 14.2 Programme Two: Land Assembly Management The purpose of the LAM programme is primarily to coordinate the integrated national land and landed property inventory to facilitate the release of land for sustainable human settlements. It has therefore been decided to change the name of the unit to reflect this from Land Acquisitions and Management to Land Assembly Management. The 20 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

21 programme seeks to make suitable land and landed property available to facilitate the of sustainable human settlements and communities. The LAM programme is structured into four sub-programme areas: Land identification and planning Land and property acquisitions Land and property assets Land geospatial systems 14.3 Programme Three: Programme and Technical Support Services The purpose of this programme is to ensure that there is appropriate, capacity and technical support services for programme and projects that promote sustainable human settlement. It has therefore been decided to change the name of the unit to more adequately reflect this function from Projects and Programmes to Programme and Technical Support Services. The Programme and Technical Support Services (P&TSS) is structured into the following sub-programme area: Programme and project portfolio planning, and implementation support Informal settlement support Emergency housing support Technical support services Section 29 projects 14.4 Programme Four: Intergovernmental Relations and Strategy Alignment The purpose of this programme is to secure key IGR relationships between the different spheres of government to facilitate and accelerate the of human settlements. This programme is also responsible for fostering partnerships with identified sector stakeholders. It will drive and provide support to the other areas of the Agency by facilitating access to stakeholders and concluding agreements that allow LAM and P&TSS to function effectively. IGR & SA will have an agreed strategic focus and operational plan which will be reviewed on a regular basis. The programme is structured into the following sub-programme areas: Intergovernmental strategy, outreach and consultations IGR agreements and contract IGR strategy and programme alignment PHDA facilitation 21 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

22 15. Capacity mobilisation approach In order for the HDA to be able to deliver the defined products and services it is necessary that it has a clear capacity mobilisation approach. The HDA can mobilise capacity speedily as required. This approach is based on demands from various external and internal stakeholders as illustrated below in figure three: Figure three: Assembly and capacity mobilisation approach 16. Risk The HDA reviews its risk assessment on an annual basis. The HDA is in the process of developing a risk policy to be submitted to the Board for approval. The Board through its sub-committees takes overall responsibility for risk in the HDA. Risk registers are in place to monitor risks on an ongoing basis. A Risk Manager has been appointed to manage, consolidate and monitor the systems and processes. The Agency has identified the following key strategic risks over the next five years: # RISK RISK DESCRIPTION MITIGATING ACTION GOAL 1 & 2 1 Inadequate programme and capital budget to acquire well- located land in the human settlement sector Lack of funding to acquire welllocated land in the human settlement sector Preparation of a programme for land acquisitions 2 Slow release of state land Slow release of land to the HDA and other Organs of State Slow land preparation process Delivery agreements JCC processes Intergovernmental collaboration 22 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

23 GOAL 3 3 Limited demand for P&P services Limited demand for project services Lack of understanding of HDA service offering Service offering plan to be communicated with support of IGR&SA 4 Mobilisation of adequate capacity in response to requests Unable to acquire required skill level in specified time frame. Dependency on HR and SCM processes An annual plan for capacity assembly and a plan for ad hoc requests to be put in place 5 Lack of approval and lack of support for PHDA policy No approval and support of identified policies Constant follow-up with NDHS; pre-identification of possible PHDA with provinces GOAL 4 Sustainability of the HDA 6 GOAL 5 Financial sustainability and Organisational sustainability arising from sector expectations and organisational growth Diversifying funding streams Growth plan and business model 7 Misalignment of coordination with key organs of State Lack of coordination of plans, activities and expectations with key organs of state Absence of protocols with key organs of state Secure agreements for collaboration Undertaking joint planning and programming 17. Resource considerations 17.1 Funding arrangements relating to the Agency In terms of section 25 of the HDA Act, the Agency must utilise its funds to defray expenses incurred by it in the performance of its functions. Accordingly, the Act provides for the funds of the Agency to consist of: (a) Money appropriated by Parliament (b) Donations or contributions received by the Agency with the approval of the Minister (c) Interest on investments of the Agency (d) Loans raised by the Agency, subject to section 26 (e) Proceeds from the sale of land (f) Fees for services rendered based on cost recovery (g) Subsidies and grants granted by the organs of state Within the 2012/13 MTEF period, the operating grant of R million has been allocated to the HDA in respect of ordinary Parliamentary appropriation. The Agency only receives interest earned from its funds as held in an ordinary bank account. No capital funding is as yet available to the Agency for land acquisition. In some instances land has been purchased at the request of provinces from provincially availed funds. The HDA five-year budget proposal is attached as Annexure A. 23 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

24 In order to operate within the operating grant allocated to the HDA, the staff establishment of 90 has been frozen at 61 posts for the next five years. If the HDA is to fully perform its legislated functions, the quantum of the monies appropriated to the Agency would need to be reviewed, as well as the available grants and/ or subsidies. There is an urgent need for the HDA s land acquisition function to be funded directly and explicitly through either significantly increasing the quantum of funds appropriated to the Agency or a predetermined share of the Integrated Housing and Human Settlements Development Grant (IHHSD). In the event that the IHHSD is made available to the Agency, the Agency would be obliged to spend its portion of the grant equitably across provinces. For all practical and forward planning considerations, the scenario wherein the Agency is fully dependent on provinces making unpredictable and discretionary allocations and/or transfers to the HDA should t be avoided HDA Budget for 2012 to Operational budget The MTEF allocation for 2012/13 is R million increasing to R million in 2013/14. The estimated budget allocation for the five years is as follows: Year one Year two Year three Year four Year five Year 2012/ / / / /17 MTEF allocation R R R R R It is considered that in the light of the legislated functions that the Agency is to fulfil, the current MTEF allocation is inadequate and would require review for the next five year period Capital budget There is currently no capital grant allocation confirmed for the HDA for land acquisition for privately-owned land. The HDA therefore focuses on releasing state-owned land. To date the HDA has submitted proposals for funds to support the purchase of SOE land (R315 million). Purchases are done on the basis of provincially availed funds. The HDA policy is that in the event that there are savings, the Agency uses these savings for land purchases Section 29 project budgets The budgets for the S29 projects that are currently being managed by the HDA are included in Annexure A. 24 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

25 18 Programme Operational (Annual) Plans PROGRAMME 1: Strategic Management, Finance and Administration Sub-Programme: Strategic Management Programme Strategic Goal: Organisational credibility Strategic Objective Measurable Objective (Strategic Activities) Performance Measure/Indicator STRATEGIC PLANNING, COORDINATION AND PERFORMANCE Develop a responsive Develop and update five year organisation that strategic plans and annual applies effective and performance plans compliant systems to the delivery process Build a values-based sustainable performance focused organisation Manage and report on organisational performance Approved five year strategic plan Approved annual performance plans Assessment reports submitted 2012/13 Target 2013/14 Target 2014/15 Target 2015/16 Target 2016/17 Target Plan approved by Board in January 2013 Plan approved by Board in January 2013 Quarterly, annual and performance reports produced and submitted to NDHS Plan approved by Board in January 2014 Plan approved by Board in January 2014 Quarterly, annual and performance reports produced and submitted to NDHS Plan approved by Board in January 2015 Plan approved by Board in January 2015 Quarterly, annual and performance reports produced and submitted to NDHS Plan approved by Board in January 2016 Plan approved by Board in January 2016 Quarterly, annual and performance reports produced and submitted to NDHS Plan approved by Board in January 2017 Plan approved by Board in January 2017 Quarterly, annual and performance reports produced and submitted to NDHS Develop and implement organisational values and a code of conduct COMMUNICATIONS AND MARKETING Develop a responsive Develop, manage and implement organisation that an organisational marketing and applies effective and communications strategy compliant systems to the delivery process Provide Communications and Marketing support to internal departments An approved organisational values and code of conduct document Approved marketing and communications strategy and plan Organisational values defined code of conduct developed and approved marketing and communications strategy and plan Organisational values implemented code of conduct complied with marketing and communications strategy and plan Programme of support Delivery on request Delivery on request Organisational values implemented code of conduct complied with marketing and communications strategy and plan Delivery on request Organisational values implemented code of conduct complied with marketing and communications strategy and plan Delivery on request Organisational values implemented code of conduct complied with marketing and communications strategy and plan Delivery on request 25 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

26 PROGRAMME 1: Strategic Management, Finance and Administration Sub-Programme: Finance Programme Strategic Goal: Organisational credibility Strategic Objective Measurable Objective (Strategic Activities) Performance Measure/ Indicator 2012/13 Target 2013/14 Target 2014/15 Target 2015/16 Target 2016/17 Target MANAGEMENT ACCOUNTING AND BUDGETING Develop a Develop, maintain and responsive implement appropriate budget organisation that policy and procedures applies effective Prepare and submit effective and compliant financial and systems to the reporting delivery process Prepare and submit effective and accurate budgets Implement a budget framework in line with NT and NDHS Develop a strategy and plan to define the diversification of Agency funding sources and to ensure adequate of received funds Approved budget policy and ongoing monitoring Approved monthly reports on financial accounts Budget policy reviewed and approved Reporting and submission of approved and effective financial accounts Budget policy reviewed and approved Reporting and submission of approved and effective financial accounts Budget policy reviewed and approved Reporting and submission of approved and effective financial accounts Budget policy reviewed and approved Reporting and submission of approved and effective financial accounts Budget policy reviewed and approved Reporting and submission of approved and effective financial accounts Approved budget Budget approved Budget approved Budget approved Budget approved Budget approved Approved budget framework that is in line with NT and NDHS Approved plan Ensure participation in fiscal planning process Develop funding plan for the MTEF Ensure participation in fiscal planning process Develop funding plan for the MTEF Ensure participation in fiscal planning process Develop funding plan for the MTEF Ensure participation in fiscal planning process Develop funding plan for the MTEF Ensure participation in fiscal planning process Develop funding plan for the MTEF FINANCE Develop a responsive organisation that applies effective and compliant systems to the delivery process Develop, maintain and implement appropriate financial policies and procedures Implement sound financial control systems, iaw. GRAP Ensure adequate control over HDA assets Ensure adequate control over Grants Approved financial policies and on-going monitoring Sound financial control system Updated and complete asset register Accountability reports iro grant received Financial policies reviewed and approved Compliant financial statements submitted Updated and complete asset register Accountability reports prepared on all grants received Financial policies reviewed and approved Compliant financial statements submitted Updated and complete asset register Accountability reports prepared on all grants received Financial policies reviewed and approved Compliant financial statements submitted Updated and complete asset register Accountability reports prepared on all grants received Financial policies reviewed and approved Compliant financial statements submitted Updated and complete asset register Accountability reports prepared on all grants received Financial policies reviewed and approved Compliant financial statements submitted Updated and complete asset register Accountability reports prepared on all grants received FINANCIAL COMPLIANCE AND REPORTING 26 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17

27 Develop a responsive organisation that applies effective and compliant systems to the delivery process Provide assistance to Board regarding compliance duties - re PFMA Manage financial compliance in order to avoid wasteful and fruitless expenditure Manage the preparation and approval of financial statements, audits and annual reports Develop, implement and maintain appropriate corporate governance and structures, policies and processes Internal audit plan developed and implemented Implement and maintain appropriate corporate governance Inputs provided to Board on PFMA duties Policy approved and implemented Approved financial statements, audit and annual reports Sound corporate governance report, approved structures and approved policies Internal audit conducted in line with the programme auditors recommendations Board resolutions are PFMA compliant Implement and report on approved financial policies and ensure adherence to policies Financial statements, audit and annual reports submitted Achieve unqualified audit report Internal audit reports submitted Unqualified audit report Board resolutions are PFMA compliant Implement and report on approved financial policies and ensure adherence to policies Financial statements, audit and annual reports submitted Achieve unqualified audit report Internal audit reports submitted Internal and external audit recommendations implementated Board resolutions are PFMA compliant Implement and report on approved financial policies and ensure adherence to policies Financial statements, audit and annual reports submitted Achieve unqualified audit report Internal audit reports submitted Internal and external audit recommendations implementated Board resolutions are PFMA compliant Implement and report on approved financial policies and ensure adherence to policies Financial statements, audit and annual reports submitted Achieve unqualified audit report Internal audit reports submitted Internal and external audit recommendations implementated Board resolutions are PFMA compliant Implement and report on approved financial policies and ensure adherence to policies Financial statements, audit and annual reports submitted Achieve unqualified audit report Internal audit reports submitted Internal and external audit recommendations implementated SUPPLY CHAIN MANAGEMENT Develop a Develop, maintain and responsive implement appropriate organisation that procurement policies and applies effective process and compliant systems to the delivery process Implement and maintain appropriate corporate governance Develop, manage and maintain the supplier database Approved SCM policy and ongoing monitoring Approved procurement practices implemented in line with approved SCM policy Procurement plan Training on new NT circulars, directives, policies Supplier database up to date SCM policy reviewed and approved Procurement practices approved and implemented Procurement plan submitted and implemented Training as necessary Up to date supplier database SCM policy reviewed and approved Procurement practices approved and implemented Procurement plan submitted and implemented Training as necessary Up to date supplier database SCM policy reviewed and approved Procurement practices approved and implemented Procurement plan submitted and implemented Training as necessary Up to date supplier database SCM policy reviewed and approved Procurement practices approved and implemented Procurement plan submitted and implemented Training as necessary Up to date supplier database SCM policy reviewed and approved Procurement practices approved and implemented Procurement plan submitted and implemented Training as necessary Up to date supplier database 27 THE HOUSING DEVELOPMENT AGENCY Five year strategic plan 2012/13 to 2016/17