Delivery Agreement

Sustainable human settlements and improved quality of household life

The Free State Department for Human Settlements entered into a service delivery agreement for Outcome 8 in May 2010. The delivery agreement, based on the Outcome’s 4 outputs and related targets, is signed nationally by all 9 provinces to ascertain a focused,coherent and integrated delivery approach to human settlements in the country. On of the 12 national Outcomes, Outcome 8 focuses on the delivery of comprehensive and sustainable human settlements.All of government has a stake in the 12 Outcomes, a primary focus and a partnership contribution stake.  A key characteristic of this agreement therefore is that it is intergovernmental, interdepartmental and places emphasis on partnership,integrated planning and implementation; and overall coordination of government effort in providing for its citizens and ensuring an economically and socially stable country.

Sustainable human Settlements and improved quality of household life are defined by:

  • Access to adequate accommodation that is suitable, relevant, appropriately located, affordable and fiscally sustainable
  • Access to basic services (water, sanitation, refuse removal and electricity)
  • Security of tenure irrespective of ownership or rental, formal or informal structures
  • Access to social services and economic opportunity within reasonable distance.

The Outcome 8 Delivery Agreement states that, for various reasons, this outcome is of critical importance:

Firstly, it is a requirement of the Constitution and Bill of Rights. Secondly, it is core to human dignity and social stability and is a key enabler of health, education and social cohesion outcomes. Lastly, with good planning, it can also serve as a catalyst for economic development and job creation. Ultimately,the outcomes of the national effort on human settlements must be seen in the context of social development and transformation as well as meeting the objectives of rolling back under-development. This outcome is implemented through the following outputs which serve as pillars for a coherent approach to a delivery of sustainable human settlements in an integrated manner. The department spent the whole of the financial year planning for, and implementing these to achieving its outputs. This was a multiple goal, parallel processes and targeted process working towards these outputs:

Output 1: Accelerated delivery of housing opportunities

This output is about groundwork for delivery of housing opportunities and takes into account infrastructure development, consultation with municipalities about developed and developing land, township registers, and development of alternative housing opportunities like community residential units and continuing with construction process of current projects to address backlog.

Output 2: Access to basic municipal services in newly formalized human settlements

Progress was made with planning for and installation of basic services in various areas in the provinces. The services targeted at the newly developed areas include electricity, sanitation, potable water, water and sewer reticulation and streets.These were services initially provided exclusively by local government and the Department of Cooperative Governance and Traditional Affairs through the Municipal Infrastructure Grant (MIG).

Output 3: More efficient land utilization

This output seeks to ensure availability of well located and suitable land parcels for human settlements purposes. This process of land development and optimisation will be used to address issues of spatial disparities and densification. Well located public land has been identified and negotiations regarding these parcels of land have been held with the relevant department and state owned enterprises. Interaction with the National Department of Human Settlements’ Housing Development Agency (HDA) has taken place, and a Protocol agreement will be signed for HDA to assist acquisition.

Output 4: Supply of affordable housing finance

Government has identified a problem experienced by people who earn salaries above the R3 500 limit to qualify for a fully subsidised government house, and do not earn sufficiently to get a bonded house. This group, identified as the gap market, is now being considered for Finance Linked individual subsidy for income bracket of between R3501 to R9000) subsidy.