NGOs and the People s Housing Process in South Africa: the case of Vosloorus Ext.28, Phase One

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NGOs and the People s Housing Process in South Africa: the case of Vosloorus Ext.28, Phase One Presentation by: Mike Makwela Prepared for Community Driven Housing Initiatives Consultative Workshop, National Department of Housing, 15 & 16 November 2007

History of Vosloorus Ext. 28 community and PHP project Vosloorus extension 28, is an informal settlement with 1350 services sites, approximately 25km from the CBD of Boksburg within Ekurhuleni Metro Municipality. Settlement established in early 1990s as IDT site and service scheme, as a result of local SANCO negotiations to identify land for backyard dwellers and homeless people. 1997, a community-based Steering Committee was elected in the community to promote further development in the area, 1 st priority was housing 2000, Planact was approached to support the community in developing housing the community and the then-boksburg local authority supported our involvement

Community demographics Approximately 60% of the community members are unemployed or informally employed, with up to 70% women-headed households Income profile of subsidy beneficiaries (2003): 40 35 30 25 20 15 10 5 0 40 22 18 10 4 0-500 501-750 751-1000 1001-1500 1501-2000

Project steering committee and Planact s role Municipalities had been designated Support Organisations for PHP by the Gauteng Department of Housing, but did not have capacity to manage this role After community decision to go PHP route, Planact taken on as secondary service provider, under contract with Ekurhuleni Planact continued capacity-building for local Steering Committee, but took on larger, facilitating role in establishing onsite Housing Support Centre, obtaining building skills training from Dept of Labour, convening a Project Steering Committee with representation from the municipality, the community, and the provincial Dept. of Housing, and managing payments to HSC staff and local contractors

Key commitments made by community Steering Committee: Skills development and use of local labour, Women s participation (mandatory 30% of contractors and labourers) Oversight of Housing Support Centre-- decisions on hiring/firing, ensuring correct subsidy applications, quality of work by builders Communication with community-- quarterly mass meetings to report progress and beneficiary workshops to ensure those with approved subsidies get involved in the process

Role of municipality Municipality donated building for use as Housing Support Centre Directly paid for foundation contractor and material suppliers Provided a float to Planact to cover payments for local labour and Housing Support Centre; acted as financial administrator Provided technical assistance to meet planning requirements, and certified quality of construction through building inspections

Role of Provincial DoH Approve business plan, subsidy applications, release subsidy finance Some technical assistance on building construction (variable quality) Oversight and monitoring

Project Milestones Business plan approved-nov 2001 DoL construction skills training-july 2002 First batch of subsidies approved-sept. 2002 Housing support centre established-nov 2002 Construction of top structures begins: Jan 2003 First phase 250 units-completed Sept 2003 Completion of total of 674 units by March 2006

Difficulties encountered/overcome After Phase 1, conflict re: project objectives required intervention of ward councillor now taking active role on Steering Committee (ex-officio), with two ward committee members; new community-based elections Length and difficulty of administrative procedures (province and council) Escalating cost of building materials (increases in subsidy amount not keeping pace) Managing material suppliers (who don t live up to commitments) Change in policy re: financial management through one intermediary (ATC) instead of municipality not managing finance efficiently, led to the project collapsing

Impact of project and Planact on community Capacity-building by Planact, training enabled complex processes to be understood and managed by community Skills development/local labour and contractors good quality housing and skills people can use to earn income: opportunities for women and youth Finance running smoothly due to relationship between Planact and municipality (prior to ATC) Partnership relationship between community and local government instead of dependency--community had much decision-making power

Lessons of PHP for Planact Build capacity of the poor to drive their own development/ make choices, trade-offs Need strong, well-capacitated CBO with support from intermediary like Planact communities must choose Need to appropriately provide funds for capacity-building throughout process To achieve a balance between process and product need strict quality control throughout the process Capacitate small contractors, but need to ensure they are accountable Inclusion of women must be conscious priority Getting financial administration right; Planact took financial risks that it can no longer take under new arrangement