Chapter 1: Navigating South Africa’s Housing Policy

South Africa’s current housing policy is rooted in the Housing White Paper, published by government in December 1994. This Part of the Housing Code considers housing policy broadly in light of the framework set out by the White Paper. It also addresses briefly, the history that led to these policy choices by government.

The Part is divided into four chapters.

CHAPTER 1: is the introduction. It explains how to find your way through this Part of the Code.

CHAPTER 2: sets out the overall approach to our housing policy. It includes our national housing vision, our basic points of departure and our fundamental principles. These ideas set the tone for our understanding of existing policies and the development of new ones. Everything we do in policy development and by way of implementation must respond to and accommodate the ideas contained in our vision, points of departure and principles.

CHAPTER 3: considers South Africa’s housing policy on the basis of the seven key strategies set out in the White Paper. A brief description of each policy is given, followed by a description of the many detailed strategies, policy enhancements and institutions that have been developed to operationalise the White Paper.

Stabilising the housing environment. Section 3.1 outlines the agreements reached between the Department of Housing and the Association of Mortgage Lenders / Banking Council, namely the Record of Understanding and its subsequent replacement by the “New Deal”. These agreements allowed for the establishment of structures such as the former Mortgage Indemnity Fund, Servcon Housing Solutions, Thubelisha Homes and the National Housing Finance Corporation.

Mobilising credit. Section 3.2 specifically addresses the activities of the National Housing Finance Corporation and Nurcha.
Subsidy assistance. Section 3.3 provides an overview of the Housing Subsidy Scheme, as well as the Discount Benefit Scheme, the Public Sector Hostels Redevelopment Programme, and the policy supporting the people’s housing process.
Supporting the people’s housing process. Section 3.4 describes the approach taken in the delivery of subsidies, in support of the people’s housing process. The role, function, and operations of the People’s Housing Partnership Trust is also described.
Rationalising institutional capacities. Section 3.5 provides a brief overview of the Housing Act, No. 107 of 1997. The capacitation programme for housing officials is then considered as one way of operationalising the Act. The section concludes with a brief discussion on the roles and responsibilities within the housing sector broadly, among government as well as the private and non-governmental sectors, and the communities.
Facilitating the speedy release and servicing of land. Section 3.6 addresses this question by reviewing first, the Development Facilitation Act, No. 67 of 1995 and the concept of Land Development Objectives. This part also considers standards that apply to services, including the “National Norms and Standards in respect of Permanent Residential Dwellings.”
Co-ordinating state investment in development. Section 3.7 reviews the Urban and Rural Development Frameworks as well as the concept of Integrated Development Plans. The section concludes with a brief discussion on how the Department of Housing seeks to ensure co-ordination among the various spheres of government.

CHAPTER 4 concludes the discussion on national housing policy with a consideration of housing in the broader environment. Housing is considered in respect of the institutional framework in which it functions (given the institutions established as part of the seven key strategies) as well as the macro-economic framework (within the context of the GEAR strategy) and the social framework.

Throughout this Part on housing policy, the principles on which each policy is based are emphasized and clearly marked in bold. In this way, the reader can understand not only the policy content of a particular approach, but also the broader intention behind national housing policy. Wherever possible, diagrams are included to further illustrate a particular point or set of ideas.