Emnambithi Ladysmith Municipality

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Executive Summary for the Real Estate & Housing Component within the Governance and Transformation Department of the Emnambithi/Ladysmith Municipality

PREAMBLE:

The Land and Housing Section is governed by the Executive Manager Mr RG Reddy. The primary function of this department is to ensure that the community has access to land and housing.

B. ADMINISTRATIVE REPORT

1. 1. Land Disposal Policy

Section 14 of the MFMA required that a Land Disposal Policy be adopted by Council. This section was able to draft a policy, which was approved by Council. The Asset Transfer Regulations, which were promulgated in September 2008, set out specific time frames, policies and procedures to be followed in the disposal of land. Councillors were workshopped on the Land disposal Policy and the Asset Transfer Regulations in May 2009

2.Housing Allocation Policy

The Section drafted a policy in terms of current legislation which was approved by Support Services Portfolio committee and Exco. This policy ensures that Councillors and implementing agents do not allocate any houses or land within any project.

3. Emergency Housing Policy

The section finalized a draft of Emergency Housing Policy which was approved by the Support Services Portfolio Committee, Exco and Council.

Further to the above an application was submitted to the Department of Human Settlements for funding assistance to restore the houses of families which were affected by a storm on 3 December 2008. due to the urgency of the situation Amawele Joint Ventures were appointed by the Department of Human Settlements to restore 610 houses. To date houses have been completed. A further application to assist 1200 houses has been submitted to the Department of Human Settlements a response is awaited.

4. Municipal Housing Sector Plan

The Department of Housing made available R100 000.00 for the development of a Municipal Housing Sector Plan. Messrs Footprints Professionals were appointed as the service provider. The final housing sector Plan was approved by council and payment effected to the service provider.

5. Consumer Education

Housing Consumer Education programme aimed at addressing the lack of education on housing related issues. It is intended to empower housing consumers to understand their rights and responsibilities in terms of housing as well as the different types of subsidies offered by government. Ms T Njoko has been tasked to provide the necessary consumer education to the community. An appliction was submitted to the Department of Human Settlements for funding to provide refreshments to the beneficiaries during the training, a response is awaited.

The section in response to the Provincial Department of Human Settlements Capacity Building Programme is in the process of conducting Housing Consumer Education Programmes as follows:

1. Roosboom	150 Beneficiaries
2. Burford	200 Beneficiaries
3. Van Reenen	100 Beneficiaries
4. Driefontein	200 Beneficiaries
5. Besters	200 Beneficiaries
6. Ezakheni C	120 Beneficiaries
7. Ezakheni E	75 Beneficiaries
8. Colenso	55 Beneficiaries
9. Steadville	70 Beneficiaries
10. Pieters	30 Beneficiaries
11. St. Chads	120 Beneficiaries
12. Umbulwane	110 Bneficiaries

6.Social Housing

A workshop was presented by an official from SALGA held on Wednesday 15 July 2009 which was attended by councilors, municipal officials from neighboring towns and our local municipality. The workshop dealt with the following aspects, Planning, policy development, implementation, monitoring and evaluation of the project. The different rental options were also highlighted, community rental units, Social housing, institutional subsidy, transitional housing, communal housing and private rental.

7. Affordable Housing

In terms of creative Housing Development, the section has engaged with the National Housing Department of Housing and is embarking on making land available for affordable housing, whereby the 4 major Banking Institutions would be able to undertake housing for the income earners of R 3501.00- R 7 500.00 per month, in terms of the Credit Linked Subsidy mechanism. To date two advertisements were placed in the newspaper calling for banks to tender but the responses have not been positive.

8. Housing Development

With the limited resources, the section has delivered the following number of houses, however the key issue is the provision of water, sanitation and secure tenure to the these beneficiaries. There may be questions raised on the quality of housing which is being looked at and should be improved by the appointment project monitors for each project. The National Department of Human Settlements is aware of the poor quality of housing and to this end have now legislated that the entire subsidy amount must be used for the top structure whilst municipalities must fund the infrastructure costs from alternate funding.

Brief summary of Housing, Water, Sanitation and Tenure provided in this period

Detail	Number	Value
Ezakheni B & C Sections	87	R 4 524 000.00
Ezakheni C Section	40	R1560 000.00
Steadville area E	40	R2 080 000.00
St. Chads Urban	245	R12 740 000.00
St. Chads Rural	120	R 6 240.000.00

Steadville Area J	82	R4 264 000.00

Total	741	R31 378 000.00

A total of 541 transfers were effected during the year under review.

Social and Economic Amenities

The Department of Housing appointed Messrs Singatha Afrika to construct social amenities within the St. Chads and Roosboom Housing projects consisting of the following: a Community hall, Crèche, Business Center and an Activities Room. Construction of the facility commenced in May 2008. The developer has indicated that a sports facility will be constructed next to the amenities.

10. Driefontein Thusong Service Centre

The Department of Local Government & Traditional Affairs was mandated by the Provincial Cabinet to establish a functional and sustainable Multi-Purpose Centre in September 2005, in an effort to bring critical government services to the under resourced sections of a society. Government provided an amount of R 1 135 887.00 and the centre was completed during 2007. The centre comprises of 10 offices (280 m²), 1 workshop (270m²) and ablution (24m²). We are engaged with Government organizations to occupy the offices in order to bring Government closer to the people. An amount of R 500 000.00 was approved by the Department of Housing for the appointment of Centre Manager as well as maintenance of the centre. A new Service counter is in the process of being constructed by council.

Watersmeet Thusong Centre

The center has been constructed. A defects list has been submitted to the Department of Public works for rectification whereafeter the handing over of the facility to council will be done. The following Government departments are currently occupying the offices :

Department of Welfare
Department of Agriculture
Department of Health
Post Office
SAPS
The Library

The primary function of the above centres is to bring to bring services closer to the people.

11. SALE OF STAFF HOUSES

90% of all staff houses have been sold to the staff at market value to the tune of R192 000.00

12.Sale of Staff Flats : Harrismith Road

The opening of the Township Register has been finalized. A legal opinion on the sale of the flats was received from the Shepstone and Wylie. The matter has since been referred to Exco to determine the way forward.

13.Bulk Transfers

150 properties transfers were lodged in deeds office for registration, 75 titles have been received. 23 transfers were queried by SARS regarding payment of the transfer duty. 32 title deed were given to the beneficiaries at the Agra Cresent Library.

14.Enhanced Extended Discount Benefit Scheme

The transfer of old housing stock to the beneficiaries was initially undertaken by the Department of Settlements through their consultants, Comhousing. They finalised 75% of the transfers. The Department of Human Settlements has since made funding in the amount of R300 000.00 available to finalize the balance of the transfers. The administrative process is being finalized whereafter the transfers will be effected. Ten job creation workers were appointed by council to visit each beneficiary and complete the necessary documentation. To date 200 have been completed and R9034.00 was paid to the field workers.

15. 11 Cemetery Road

The above building was leased from Ithala by the Municipality for Local Economic Development. This section is currently finalizing service level agreements with the SMME’s that are in operation at the center.

16 Encumbrances on Properties

These encumbrances are outstanding purchase prices. The Department of Interior through the Erstwhile Ezakheni Town Council transferred the properties to the owners even though the purchase price balances were outstanding to the Department of Housing (Government). These balances were endorsed on the deed of grant. Since the incorporation of Ezakheni into the Emnambithi Municipality these encumbrances are being paid to the Municipality. The Municipalities finance section is not aware of these encumbrances. As a matter of fact the Real Estate and Housing component only has current files of section’s A,B,D and E were the balances are indicated. The authenticity of the cards cannot be confirmed. The information in respect of Section C is not available as the offices were burnt down.

Upon request from the attorney the balances are issued for payment. On receipt of the payment the Municipal Manager can sign the consent to remove the encumbrance.

An application was submitted to the Department of Human settlements to include these properties in the R7500 EEDBS which will result in the amount owing in respect of the Encumbrances being offset. A response is awaited.

17. Review Of Lease Agreements/ Caretaker ships

The Municipal finance management Act took effect on 1 July 2004 and the act requires that property be sold or let at market related prices. In pursuance of legislation the section met with all persons who currently have lease/caretakership agreements to advise them that the municipality is require to review their agreements and charge market related rentals. There are approximately 150 lease agreements in operation at this point in time. Council resolved that the nominal rental be maintained at R100 per annum for caretakership agreements until the policy on the public open space systems is finalized, noting that caretakership agreements benefit both the council and the caretaker. Lease agreements have been submitted to the Legal Section for review.

18. LAND SALES

Rose Park Development

Two developers viz Melki and Dezzo were awarded development rights through Land Availability Agreements in order to stimulate development of the area, which was lying vacant for a number of years with council’s investment not recovering any returns in terms of rates and services. The land is being sold at an average cost of R 35 000.00. Dezzo have sold 45 erven to date. Dezzo requested an extension of time to the land availability agreement and were granted an extension from 1/10/08 to 30/09/09. To date they have disposed of three additional erven to the value of R75000.00. Melki have built 6 show houses to date. Their application for extension of time was not acceded to and they have been requested to transfer the six properties onto their name. Council intention is to dispose of 46 properties in four portions to Developers through a Land Availability Agreement in terms of the Asset Transfer Regulations.

Cove Crescent Development

The Council saw the need to develop a further 76 Erven in Cove Crescent for the Upper Income Earners at a cost of approximately R 11 000 000.00. A total of 37 erven have been sold to date.

AUCTIONS HELD FOR COVE CRESENT PROPERTIES

DATE	ERVEN OFFERRED	ERVEN SOLD	AMOUNT RECEIVED
04/09/08	33	5	R1 150 000.00
22/06/09	26	NIL

Other Land

The following auctions were held during the year under review:

DATE	ERVEN OFFERED	ERVEN SOLD	AMOUNT RECEIVED
11/09/08	8 (EZAKHENI)	NIL	NIL
18/09/08	25 (STEADVILLE)	3	R37800.00
25/09/08	14 (COLENSO)	NIL	NIL
22/06/09	13 (STEADVILLE)	3	R49440.00
11/09/08	8 (EZAKHENI)	NIL	NIL

Nkanyezi Hostel

The hostel is 80% complete. A further R205 000.00 was sourced form the Department of Human Settlements. The funding was utilized to purchase material to complete the hostel. A service provider is being sourced to complete the outstanding work at the hostel.

Steadville Hostel

The department of Human settlements has advised that funding is available for the conversion of the hostel into community rental units. An advertisement is being prepared calling for potential Implementing agents to undertake the project. Meetings have been held with the occupants of the hostel informing of the upgrade and their responsibilities in terms of payment of services/rental. Fresh lease agreements have been prepared and will be signed by the occupants.

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Executive Summary for the Real Estate & Housing Component within the Governance and Transformation Department of the Emnambithi/Ladysmith Municipality