HOUSING PROJECT PROCESS GUIDE

A process guide for the following National

Housing Programmes:

Integrated Residential Development Programme

The Upgrading of Informal Settlement Programme
The Rural Subsidy: Communal Land Rights Programme.

September 2009
The greatest possible care has been taken in compiling this guide, and in

ensuring that it is an accurate interpretation of the housing policy. It may

be possible, however, that there are differences in how the housing policy is

applied from province to province, and consequently differences in approach

to those noted here may not be relevant for some provinces. The National

Department of Human Settlements can not take any responsibility for how

the policy is applied from province to province. It is recommended that

provincial differences in approach be determined before using this guide to

embark on a project.

Users of this guide will accordingly use it at their own risk and The National

Department of Housing will not be liable for any damages whatsoever that

may be suffered by any user of this guide arising out of any direct or indirect

reliance placed on the content of this guide.

ABBREVIATIONS

CLARA Communal Land Rights Act, Act 11 of 2004

DFA Development Facilitation Act, Act 67 of 1995

EIA Environmental Impact Assessment

EIAP Environmental Impact Assessment Practitioner

EMP Environmental Management Plan

ESTA Extension of Security of Tenure Act, Act 62 of 1997

GP General Plan

IDP Integrated Development Plan

IPILRA Interim Protection of Informal Land Rights Act, Act 31 of 1991

IRDP Integrated Residential Development Programme

LEFTEA Less Formal Township Establishment Act, Act 113 of 1996

LDO Land Development Objectives

MEC Member of the Executive Committee

NDoHS National Department of Human Settlements

NHBRC National Home Builders Registration Council

PHD Provincial Housing Department

ROD Record of Decision

RSDF Regional Spatial Development Framework

SDF Spatial Development Framework

Housing Project Process Guide

TABLE OF CONTENTS

PART ONE

Introduction 2

Selection of Housing Programme 3

The Housing Code 4

National Housing Policy Context 5

The Three Programmes 6

• The Integrated Residential Development Programme 6
• The Upgrading of Informal Settlements Programme 8
• The Rural Housing Subsidy: Communal Land Rights 10

PART TWO

Flow Charts 13
• Integrated Residential Development Programme 14
• Rural Housing Subsidy: Informal Land Rights 16

Notes on Flow Charts 18

Project Schedule 34

Housing Project Process Guide

1
 INTRODUCTION

The Department of Human Settlements and the National This Housing Project Process Guide is not intended to
Business Initiative produced a Housing Process Guide in replace or repeat information and guidelines in the Housing
1997. During the 12 years since then, tremendous progress Code, but is specifically intended to assist managers at
has been made with delivery, and the National Housing all levels to understand the processes that projects must
Programme and Housing Code has also evolved based on go through to achieve the required end product, the
experience and changing needs. relationships between the processes, the required time
frames and the responsibilities of the various role-players
This Housing Project Process Guide has been developed for and professionals involved.
the three specific programmes which are mostly utilized for
subsidized housing development, namely – Over the past 15 years the Department has found that in
most projects where serious delays or problems occurred,
• The Integrated Residential Development Programme it was due to crucial steps in the development process being
• The Upgrading of Informal Settlements Programme bypassed. As an example, this resulted in situations where
• Rural Housing Subsidies: Communal Land Rights houses were constructed which could not be transferred
Programme to occupants, or stands were serviced without any links to
the municipal bulk services.
The previous guide emphasised the contractual relationships
between parties in addition to the processes to be followed. The Guide is also not intended to detail the processes that
At that stage there was also a focus on social compacts Professionals follow in their work, be it town planning, design
and private developer driven housing developments. The or conveyancing, but to highlight the overall processes that
new Housing Code is comprehensive and includes detailed must be completed at specific stages of a project.
examples of contracts and contractual relationships, as well
as many specific guidelines to assist the developer of any The Guide is also not a comprehensive project management
project. guide, but is a tool for the successful project management
of housing projects, and includes a summary checklist which
A major change since 1997 is that the public sector organs can be used to monitor progress on a project, and can also
have assumed the role of developer of subsidy housing be used as the basis on which progress payments are made.
projects, although the private sector is still involved in the
implementation of the project. The Government has also The terminology used in different provinces and in the
created a Housing Development Agency to inter alia act Development Facilitation Act varies for the various processes
as developer of housing projects or which may assume a to establish development rights and ultimately enable the
developer role. The terminology used is that “Developer” developer to transfer ownership to or protect the rights
means the Government department at provincial or local of individual beneficiaries. These processes include, but are
level that is responsible for implementing the project. not limited to, subdivision, rezoning, establishment of Land
“Contractor” means any private company or individual Development Areas, township establishment and division
contracted by government to fulfil a function on the project of land. This Guide uses the generic terms “township
whether it is managing the project, providing a professional establishment” and “rezoning” to describe these processes.
service (deliver housing goods and/or services) or doing
construction.

2
Selection of Subsidy Programmes

The Housing Code describes the correct application Many of the problems experienced in the closing-out phase
of the various subsidy programmes. The diagram below of projects can be related to an inappropriate choice of
contextualizes the three programmes covered in this programme. Sometimes this is done due to a perception
Guide with notes on the selection of the correct subsidy that one programme has fewer statutory requirements than
programme. It highlights the differences between the three another, or can be implemented faster. Again, in most cases
programmes in this Guide to ensure that the correct the basic building blocks of the projects remain the same
context of the chosen programmes is fully understood. and the correct programme is usually the one that can be
fully completed in the shortest time frame.
Many of the processes in this document can also be applied
to other Housing Programmes, although the product may
be completely different. The basic building blocks and the
statutory requirements of a housing project remain similar.
Users of this Guide can select applicable components of
the project schedules and checklists and adapt it for their
specific circumstances.

Intervention Category Housing Programme Description

Financial Individual Housing Subsidies These programmes provide subsidies to
individuals to purchase completed or existing
Extended Discount Benefit Scheme
properties, grant funding to Municipalities and/
Social and Economic Facilities or Provinces to deliver services or facilities for
Accreditation of Municipalities professional services to facilitate planning and
delivery.
Operational Capital Budget
Housing Chapters of IDP’s
Rectification of Pre-1994 Housing Stock
Incremental Housing Integrated Residential Development The programme facilitates the structured
Programme Programme upgrading of informal settlements. It applies
People Housing Process to in situ upgrading of informal settlements as
well as where communities are to be relocated
Informal Settlement Upgrading for a variety of reasons. The programme
Programme entails extensive community consultation and
Consolidation Subsidies participation. Emergency basic services provision,
permanent services provision and security of
Emergency Housing Assistance
tenure.
Social and Rental Institutional Subsidies
Housing Programme
Social Housing
Community Residential Units
Rural Housing Rural Subsidy: Informal Land Rights The Rural programme is used to extend the
Programme benefits of the Housing Subsidy Scheme to those
individuals living in areas referred to as “rural”
areas where they enjoy functional security of
tenure as opposed to legal security of tenure.
Only individuals whose informal land rights
are uncontested and who comply with the
qualification criteria will be granted such Rural
subsidies.

Housing Project Process Guide

3
 The Housing Code

The National Housing Code 2009 sets the underlying policy

principles, guidelines and norms and standards which apply
to Government’s various housing assistance programmes
introduced since 1994 and updated.

The purpose of this Guide is to provide an easy-to-

understand overview of the various housing subsidy
instruments available to assist low income households to
access adequate housing.

The detailed description of the policy principles, guidelines,

qualification criteria and norms and standards are available
in the National Housing Code.

4
National Housing Policy Context

The South African Constitution, 1996 enshrines the right of While retaining the basic principles of the Housing
everyone to have access to adequate housing and makes it White Paper, the Comprehensive Plan shifts the focus to
encumbent upon the State to take reasonable legislative and improving the quality of housing and housing environments
other measures within its available resources to achieve the by integrating communities and settlements through a
progressive realisation of this right. holistic development orientation. It also sets new minimum
standards for housing products improving privacy and
In response to this Constitutional imperative, Government sustainability by providing for the development of a range
has in terms of the Housing Act, 1997 (Act No 107 of of social and economic facilities in human settlements.
1997) introduced a variety of programmes which provide The Comprehensive Plan also focuses on the upgrading of
poor households access to housing opportunities. The informal settlements in order to meet the Government’s
policy principles set out in the White Paper on Housing commitment towards achieving the Millennium Goal of the
aim to provide poor households with houses as well as United Nations to improve the lives of 100 million slum
basic services such as potable water and sanitation on an dwellers worldwide.
equitable basis.
In order to support the implementation of the
The limited resources available from the fiscus however Comprehensive Plan, housing departments in all spheres of
necessitate the prioritisation of the most vulnerable groups Government, as well as Housing Support Institutions have
as well as the provision of housing, security and comfort to been extensively restructured.
all over time.
Likewise, the National Housing Code of the year 2000 has
Ten years after the introduction of the housing programme been substantially revised.The National Housing Code 2009
in 1994, a comprehensive review was undertaken of the is aimed at simplifying the implementation of housing projects
outcomes of the programme and the changes in the socio- by being less prescriptive while providing clear guidelines.
economic context in the country. This lead to the approval The rest of this document contains a broad overview of the
of the Comprehensive Plan for the Creation of Sustainable programmes in the National Housing Code.
Human Settlement commonly referred to as “Breaking New
Ground” or “BNG”, by Cabinet in September 2004. It is important to note that in respect to all programmes
which are not contained in the Housing Code, 2009 the
rules of the National Housing Code, 2000 will apply.

Housing Project Process Guide

5
 The Three Programmes

Integrated Residential Development Who will be assisted?

Programme (IRDP)
This Programme will assist people who:
What is the programme about? • Lawfully resides in SouthAfrica (i.e.citizen) of the Republic
of South Africa or in possession of a permanent
One of the key lessons learnt in the review of the outcomes residence permit. Certified copies of the relevant
of housing programmes since 1994 is that, owing to a variety documents must be submitted with the application).
of reasons, low income settlements continued to be located • Legally competent to contract (i.e. over 18 years of age
on the urban periphery without the provision of social and or legally married or legally divorced or declared
economic amenities and by and large constituted “housing competent by a court of law and sound of mind);
subsidised beneficiary islands”. • Neither the applicant nor his or her spouse has
previously benefited from government assistance;
Hence a new Programme has been introduced to facilitate • Has not owned fixed residential property; and
the development of integrated human settlements in well- • Has previously owned fixed residential property, such
located areas that provide convenient access to urban a person may only qualify for the purchase of a vacant
amenities, including places of employment. The Programme serviced site.
also aims at creating social cohesion.
In addition to the above the following criteria must
The Integrated Residential Development Programme (IRDP) also be satisfied:
provides for the acquisition of land, servicing of stands for • Persons must be married or habitually cohabit;
a variety of land uses including commercial, recreational, • Single persons must have financial dependants;
schools and clinics, as well as residential stands for both • Single persons without financial dependants such as the
low, middle and high income groups. The land use and aged, military veterans, etc. may be assisted;
income group mix will be based on local planning and needs • Households must earn a monthly income in the range as
assessment. annually announced; and
• Persons who have benefited form the Land Restitution
The IRDP can be undertaken in phases or in one single phase. Programme may also be assisted.
The first phase could provide serviced stands, whereas
the second phase provides for housing construction for In addition, the programme also makes provision
qualifying low income beneficiaries and the sale of stands to for the creation of non-residential stands such as:
persons who for various reasons, don’t qualify for subsidies, • Institutional stands e.g. police stations, schools and
and/or the disposal of other stands such as commercial clinics;
uses. • Business and commercial stands;
• Stands for non-profitable community services e.g.
churches and crèches/nursery schools; and
• Stands for public use e.g. parks and community facilities
etc.
Special conditions apply to the sale and transferring of these
stands.

6
The Three Programmes

Important considerations applications.

Plans for projects undertaken with the scope of the IRDP

must be based on approved housing chapters of Municipal
Integrated Development Plans and priorities and reservation
of funds for project development agreed to between the
MEC and the Mayors in terms of the multi – year housing
plan developed as part of an approved IDP.

All procurement processes must occur within the prescripts

of relevant legislation and in a fair, equitable, transparent and
competitive manner.To support and ensure compliance with
procurement, three contracting strategies or a combination
thereof are proposed in this Guide.

How to access the programme

Municipalities will assume the role of a developer. Where

a municipality does not have the required capacity to fulfil
this role, the Provincial Government may assume the role of
developer.The developer will submit a project application to
the MEC making use of pro forma procurement documents,
agreements, and/or contracts when applying for a project
and the implementation thereof.

Who are the role players and decision makers?

The municipality assumes the role of the developer

and applies for funding from the MEC. The municipality
undertakes all planning and project activities. The MEC
reserves and distributes funds and assesses and adjudicates
various aspects of the project process and approves project

Housing Project Process Guide

7
 The Three Programmes

Upgrading of Informal Settlements Who will be assisted?

Programme (UISP)
This Programme will benefit all persons living
in informal settlements who meet the following
What is the programme about? criteria:
• Households that comply with the Housing Subsidy
Informal Settlements are common to most developing Scheme qualification criteria;
countries which undergo a process of rapid urbanisation • In order not to exclude any community members,
and have limited resources to address the housing needs of households with a monthly income exceeding the
all its citizens and in particular the poor who flock to cities maximum income or qualifying for housing subsidies
in search of a “better life and future” for their families. as approved by MINMEC, are also included subject to
certain conditions;
Hence the Programme for the Upgrading of Informal • Households headed by minors, who are not competent
Settlements is one of the most important programmes of to contract, may benefit with assistance the from the
Government which seeks to improve the living conditions Department of Social Development;
of millions of poor people by providing secure tenure and • Persons without dependants; and
access to emergency services as well as basic services and • Persons who are not first-time home owners.
housing.
Applications for the following people may be
Experience has shown that access to basic services, considered on a case-by-case basis:
secure tenure and a house provides a platform/foundation • Persons who have previously received housing
to households to improve their social and economic assistance and who previously owned and/or currently
circumstances. own a residential property; and
• Immigrants whose residence status is uncertain on
One of the basic tenets of the programme is that beneficiary the conditions and under guidance prescribed by the
communities must be involved in all aspects of the project Department of Home Affairs.
cycle throughout to ensure that existing fragile community
survival networks are not compromised and to empower
communities to take charge of their own settlements
design standards and housing solutions. All members of the
community, also those that do not qualify for subsidies, are
included.

The Programme therefore aims to bring about social

cohesion, stability and security in integrated developments,
create jobs and economic growth for communities which
did not previously have access to land and business services,
formal housing and social and economic facilities and
amenities.

8
The Three Programmes

Social and economic facilities and amenities to enhance

the sustainability of the upgraded settlement may also be
provided through the special Programme which provides
funding for such amenities.

How to access the programme

Municipalities will identify informal settlements to be

upgraded within their areas of jurisdiction, and apply to the
Provincial Housing Departments for funding for projects
under this Programme. This will be undertaken in close
collaboration with the relevant communities.

Project funding will be based on the number of persons

that qualify for assistance and funding may include funds to
facilitate community participation and empowerment.

The Programme also provides funding for project

management purposes.

Who are the role players and decision makers?

Important considerations
The projects will be undertaken on the basis of a
This Programme will be used for the in situ upgrading partnership of co-operative governance between the
of informal settlements. As a last resort, in exceptional relevant municipality, the Provincial Housing Department,
circumstances (e.g. where the terrain is not suitable for the National Department of Housing, the Department of
human settlement owing to flooding, shallow undermining Social Development (in respect of households headed by
etc,), residents may be relocated and resettled. This minors) and the Department of Home Affairs (in respect of
Programme will finance the creation of serviced stands only. establishing residence status of immigrants).
Beneficiaries may apply for housing construction assistance
through the other National Housing Programmes. Municipalities will fulfil the developer role.

This Programme may be undertaken in three phases, The Provincial Housing Departments can assist a municipality
focusing on community participation, planning, emergency if the municipality lacks capacity, and can assume the role
services, basic services and housing construction as part of of developer if the municipality cannot meet the project
a final phase. commitments.

Housing Project Process Guide

9
 The Three Programmes

Rural Housing Subsidy: Communal Land the rules or custom of that community. It is a pre-requisite

Rights for the allocation of subsidies under the Programme

that a beneficiary community member provides proof of
uncontested land tenure rights and qualifies for a new order

What is the programme about? tenure right on the portion of land allocated to him or her.

Owing to the difficulty of defining rural and urban areas, the The housing subsidy may be utilised for the development of

conventional wisdom tends to view human settlements on a internal municipal residential services where no alternative

continuum from major metropolitan urban agglomerations funds are available, house building, upgrading of existing

through various secondary settlements, to small towns and services where no alternative funding is available, the

down to widely dispersed homesteads in remote areas. upgrading of existing housing structures or any combination
of the said options.

All are regarded as interdependent and fulfil different

functions. The various housing subsidy instruments need to This Programme adheres to the objective of the

cater for all these diverse circumstances. Bearing in mind Comprehensive Plan for the Creation of Sustainable Human

the policy principle of tenure security, the various subsidy Settlements for a needs-orientated rural development

instruments provide for assistance in all types of settlements programme that caters for traditional technologies,

along the continuum where freehold or rental tenure can appropriate funding mechanisms, and addressing the

be achieved. important issues of tenure security, livelihood strategies and

the broader socio-cultural matters.

However in areas of communal tenure (e.g. where the

Minister of Rural Development & Land Reform holds land
in trust for communities) and where traditional leaders Who will be assisted?
allocate land for settlement to households or persons,
freehold tenure can in most cases not be easily secured. The Programme will assist people who:

Hence, it was necessary to develop a programme to assist • Lawfully reside in South Africa (i.e. citizen of the Republic

households in areas with communal tenure to access of South Africa or in possession of a permanent residence

housing subsidies. permit. Certified copies of the relevant documents must

be submitted with the application);

The Rural Housing Programme only applies in areas of • Are legally competent to contract (i.e. over 18 years

communal tenure and requires that tenure rights first be of age or legally married or legally divorced or declared

confirmed through the processes prescribed by the Minister competent by a court of law and sound of mind);

of Rural Development & Land Reform. Furthermore, • Are neither the applicant nor his or her spouse has

subsidies are only available on a project basis but can be previously benefited from government assistance; and

flexibly applied to meet real needs. • Has not owned fixed residential property.

The Programme thus deals with the rules for housing Certain conditions apply to the following groups:

subsidies for housing development on communal land • Persons who are married or habitually cohabiting;

registered in the name of the State and which will be held • Single persons with financial dependants;

by community members/traditional authority subject to • Single persons without financial dependants;

10
The Three Programmes

• Households with a monthly income in the range as How to access the programme
annually announced;
• Persons who have benefited form the Land Restitution Funding under this Programme will only be available within
Programme; the context of an approved housing development project
• Persons classified as Military Veterans as confirmed by and may not be accessed on an individual basis. The housing
the SANDF; and subsidies allocated to beneficiaries under this Programme
• Persons in polygamous unions may apply for a rural are awarded to persons who enjoy informal land rights
subsidy. In such cases, where available, applicants must protected by the provisions of the relevant legislation.
submit affidavits from the traditional leaders or the Subsidies under this Programme will only be approved if no
person who performed the marriage. other form of subsidy can be applied. It is a pre-requisite for
project approval that the beneficiary community members
must participate in all aspects of the housing development
Important considerations that is planned and will be undertaken.

If a community has a recognized traditional council, the

powers and duties of the Land Administration Committee Who are the role players and decision makers?
of the community is exercised and performed by the
traditional council. Persons who qualify for new order A traditional council must in terms of the Traditional
tenure rights will qualify for housing subsidies under this Leadership and Governance Framework Act, 2003 (Act No
Programme. 41 of 2003), co-operate with any relevant municipal ward
committee and must meet at least once a year with its
Benefits of the Programme will extend to persons who traditional community to give account of its activities and
wish to obtain a housing subsidy and who have uncontested finances.
old order rights. Documentary proof of the rights granted
to him/her must be provided with an application and in There are five role-players within this Programme
the case of the lack thereof it should include an affidavit namely:
providing details of the rights held in respect of the land and • National Department of Rural Development & Land
confirmation of the fact that the land has been occupied for Reform;
a continued period of more than five years. • Provincial Department of Human Settlements;
• Municipalities;
Variations may apply where applicable. For this purpose • Traditional Councils; and
please refer to the Manual on the Adjustment of the Housing • The Land Administration Committee (after the
Subsidy Scheme Amount for Extraordinary Development promulgation of CLaRA).
Conditions in the Technical Guidelines.

Housing Project Process Guide

11
12
Process Flow Charts

This section contains generic flow charts for the three The flow charts follow a serial project process, but many
programmes.The charts utilise the same building blocks and processes can be done in parallel if the risks are clearly
symbols wherever possible. These symbols are expanded understood and managed. It could lead to fruitless
upon and more detail of individual steps and processes expenditure if the engineer is instructed to design the
provided in the “notes on flow charts” following the charts. services before the layout plan and General Plan is approved,
as changes may lead to a re-design.
The Integrated Residential Development Programme and
the Upgrading of Informal Settlement Programme has The flow charts cannot show all the links, as it would clutter
been combined into one chart. The processes required the picture unnecessarily. The phase close-outs indicated in
for these programmes are essentially the same, with the yellow diamonds are intended to show that they are specific
main difference being the development in situ of an informal processes which must be completed, but they all link to the
settlement with the additional requirements of dealing with final project completion and hand-over, although this is not
the residents during planning and construction. explicitly shown.

Most projects require all the steps in the flow charts, but The township establishment process is generic, as it was
some may be well advanced and for example only require found that the various Provincial Ordinances and the
the construction portion within an already established Development Facilitation Act require the same steps before
township, or where a rezoning is required rather than proclamation can take place, although the sequence and
township establishment. The flow chart remains a guide terminology varies.
to confirming that all the preceding processes have been
properly completed. The tasks done by professionals are also not detailed, but
the outcome is shown or there is a specific phase close-out.
Examples are township approvals, conveyancing, engineering
design, etc.

ICON DESCRIPTION
This icon signifies that a sub-process would normally be required.

This icon signifies that a decision is to be made.

This icon signifies that an action, document or sub-process would be required to complete a
specific task.
This icon signifies the initiation of a specific phase.

This connector represents the flow process from one activity to another. Black connectors
represent the main process flow.
Coloured connectors contextualises the flow between phases and should not be used as a
short-cur procedure.

Housing Project Process Guide

13
INTEGRATED RESIDENTIAL DEVELOPMENT
PROGRAMME AND UPGRADING OF INFORMAL
SETTLEMENTS PROGRAMME Feasibility Process

MEC Receives Provincial Housing Chapter in IDP

Housing Subsidy Allocation
from National
Identified need for Housing

Municipalities apply for

reservation of project funding
i.t.o approved IDP and agreed Status Quo
priorities

MEC confirms reservation Quantify the need

of project funding per
municipality and requests
project descriptions

Appoint Core
Municipality calls for land
Team
availability

Finalize Market
Adjudication of land Development Analysis
proposals in relation to IDP’s Scope
and selection of priority land Negative Positive
Land
Municipality secures land, Register
Planning Process
undertakes feasibility study,
prepares project Initial feasibility study
descriptions and compiles UISP
IRDP

Public
Greenfields

acquisition agreements Brownfields Participation

Identified
MEC adjudicates, makes Land
conditional approval of Yes
project funding against
MEC review reasons and take
selected land parcels and
remedial action Legal
project descriptions including In situ
funds for housing subsidies Development
upgrading
and facilitates and determines Status
variation amounts

Secure No
Ownership
of Land
Municipality (if required)
Land Surveyor:
requests project No Non-compliance Base map
enrollment with
NHBRC Town Planner:
Statutory
Layout Plan
Assessment
Engineer:
Availability of services reports
Yes
Physical Environmental
Procurement Method Investigation Practitioner: EIA application

NHBRC project enrollment Geotechnical Engineer:

Contractual Geotechnical investigation
Turnkey Strategy C Source Base
Matters
MEC confirms subsidy C Documents
project approval in project
agreement with Municipality
Traditional Preplanned C
and concludes MOU with
relevant parties
Contractual Matters
Development Contract C Turnkey: Traditional Preplanned:
Adjudication of land proposals
One contractor or where ad What is the in-house capacity?
in relation to IDP’s and hoc specialist are required 3
selection of priority land phases are provided. - Ad hoc contracts with
specialists as and when
- Town Planning required
- Installation of Services
- Construction of Houses
14
 Local Authority Publishes Proclamation
approved township in Close-out of Township Implementation
Provincial Gazette Phase
Process
Amend TPS
Open Township / Subdivision
register at the Registrar Conveyancer
Close-out
Construction
of Deeds and compile Vest Public Land and
and handover of deeds to Phase Transfer other Land
beneficiaries Engineering
Pegging of stands Surveyor
Services Design
Calculate approved layout Site
and obtain approved General Close-out preparation
Plan / subdivision plan from Phase Team (where - Bulk Earthworks
Surveyor General necessary) - Install Services
- Construct Streets
Discharge conditions of Post Approval - Handover of
establishment / conditions of Close-out services
Phase Phase Relocation
approval of people - Site Supervision

Approval documents
comprise of:
1. Approved layout plan / Close-out Approval of Obtain
subdivision plan Township
Beneficiaries Clearance
Close-out
Phase Phase
2. Approved Conditions of Subsidy Process Certificates
Establishment / Conditions of
approval
Subsidy Close-out
Prepare Final Documentation Phase
Application
for Approval Completion
approval
and Handover
of services to
Council
Negative Positive Allocation
of houses

House Construction:
Occupation
Obtain Comments - Submit building plans
of houses
- Approved building
and title
plans
deed
- House Construction
Statutory Advertisement handover to
beneficiaries
Building Inspection:
Advertisement - Foundation certificate
of Application - Structural certificate
Handover of Project - Occupation certificate

Circulation of
Close-out
Application Phase
Documented Completed
proof of all the close-out Top Structure
phases during project
Preparation life cycle
and Submission Close-out
Phase
of Application
Occupation
Amend Certificates
application Prepare final
Distribution of Layout to
drawdown
project team

Submit
Layout and Design of drawdown
Populate Base Map
Township to MEC

Contractual Matters Payout

Process
Development Contract:
Use community contractors:
Two types of contracts allowed
for:

- Installation of Services
- Construction of Houses

15
RURAL SUBSIDY: COMMUNAL LAND RIGHTS

Community confirms the

CLaRA Process need for housing - Need is
communicated to traditional
council / municipality

CLaRA
Municipality confirms project
part of Housing Chapter of
IDP and funding reservation
Minister Community Minister
agreed with MEC
establishes establish Land appoint Land
Land Rights Administration Rights
Board Committee Enquirer
Community applies to the
municipality to appoint
implementing agent /
Community registers Community Rules with
supporting organisation
department and becomes juristic person

Application not
Municipality assesses Recommended
Land Rights Enquiry Commences
application and make
recommendations to MEC
Application
Land Rights enquiry report submitted to Minister Recommended

PHD
evaluates
Determination by Minister application and
submits to
MEC Application
Communal Individual Refused
Combination
Land Ownership

Application
Municipality secures Approved
procurement of services
of implementing agent /
Community
support organisation
applies to
municipality

Feasibility Process
Development Contract:
Use community contractors:
Contractual Two types of contracts
allowed for:
Completed Matters
CLaRA C - Installation of Services
process - Construction of Houses

Housing Chapter in IDP

Identified need for Housing

Status Quo

Quantify the need

Finalize
Development
Scope

16
 Implementation
Planning Process
Process

This section of the

PHD evaluates chart includes typical Construction
project application services installation
Identified and construction of
and if complaint with
Land houses. Engineering
policy prescripts
submit to MEC Services Design
The programme
allows for a wide
range of options and
Legal implementation in
- Bulk Earthworks
Development accordance with the
approved scope of - Install Services
Status the project. - Construct Streets
- Handover of
MEC services
Determine approves project - Site Supervision
Land Rights application
Where
Applicable

Obtain
Land Affairs Beneficiaries Clearance Close-out
to approve PHD record project Subsidy Process Certificates Phase
development on HSS and inform
on State municipality of decision
owned land Close-out
Subsidy
Phase
Application
approval Completion
Project agreement and Handover
Statutory
concluded of services to
Assessment
Council
Allocation
Where
New constructed of houses Applicable
houses registered
PHD checks with NHBRC
House Construction:
information and Occupation
- Submit building plans
tests against of houses
- Approved building
database and title
plans
deed
- House Construction
Where
handover to
Applicable beneficiaries
Building Inspection:
Implementing agent / - Foundation certificate
supporting organisation - Structural certificate
prepares and submits Handover of Project - Occupation certificate
project application to
MEC
Where
Applicable
Close-out
Physical Phase
Land Surveyor: Documented Completed
Investigation Base map
proof of all the close-out Top Structure
Town Planner: phases during project
Layout Plan life cycle
Close-out
Source Base Phase
Documents Engineer:
Availability of services reports Occupation
Certificates
Environmental Prepare final
Practitioner: EIA application drawdown
Populate Base Map
Geotechnical Engineer:
Geotechnical investigation Where
Submit Applicable

Layout and Design drawdown

of Township / GPS Where
to MEC
of boundaries and Applicable
houses

Payout
Distribution of Process
Layout to project
team

17
 Notes on Flow Charts

This section provides more detail on the individual icons which has an important impact on the processes to be
used in the flow charts.These icons include workflows, tasks followed.
and decisions which are described in the tables below.
The NHBRC requirements are also set out in more detail
Two processes are expanded on in more detail. The to assist with the understanding of their requirements.
procurement strategy is an important up-front decision

Procurement Strategy

Government Department or Agency acting as Developer

has to consider what strategy to follow to implement
project, either in-house or by procuring services.

Will the in-house resources and capacity of the developer

be sufficient to provide professional and contracting
services throughout (and to the point of completion of
the project) the whole project?

Do all the work in-house

No Yes
as Developer

Is the Developer able to complete

certain aspects of the programme (in
terms of capacity and professional
resources)?

Does the Developer intend to

use one contractor for the whole No Yes
project?
Does the Developer intend to
Yes No appoint community contractors for
different steps of the programme?

No Yes

TURNKEY STRATEGY TRADITIONAL PREPLANNED DEVELOPMENT CONTRACT

The turnkey Contractor is appointed Professional and contracting services Community Contractors are
by the Developer through a public may be provided in-house or procured contracted / appointed through
tender to do all the work related through public tenders. public tenders
to the successful completion of the - The Developer has the flexibility to
project. appoint and brief professionals and This strategy permits the community
- Planning of approved land; to manage the process of develop- to participate in development to the
- Township establishment process; ment in a hands-on manner. extend that they are able to do so.
- Design and installation of internal - Contractors undertake construction
reticulation services and the by making use of the comprehensive
construction of houses designs issued by the developer.

Please note: the Developer may

apply the turnkey strategy within this
strategy and award development rights RISK: Materials and construction
RISK: Tenderer carries the risk should through a tendering process. managers are required to manage
overruns occur that are not provided RISK: Developer carries the risk for the Developer’s risk associated with
for in the contract. any financial overruns. construction.

18
National Home Builder’s Registration Council (NHBRC)

MEC conditionally approves housing development project

Home Builder (developer) submits project for

in-principle approval with project description and
preliminary geo-technical report.

Incomplete Unacceptable
NHBRC reviews project
NHBRC requests further NHBRC rejects application
description and preliminary
particulars and notifies MEC
Geo-technical Report

Complete

Unacceptable

Is site underlain NHBRC requests dolomite

Yes
by dolomites? stability investigation

NHBRC reviews dolomitic

No stability investigation report

Acceptable

NHBRC grants in-principle enrollment and advises the

Home Builder in writing and notifies MEC of any conditions

NHBRC rejects application

and notifies the MEC
Developer prepares
feasibility study and submits Yes
No
to NHBRC
Is the
NHBRC unduly
NHBRC reviews feasibility Is Home Builder exposed to the
Yes
study registered? aspects of the
project?

No

NHBRC issues project enrollment certificate

Housing Project Process Guide

19
 REFERENCE TABLE

Ref Task or item Notes Responsibility

1 MEC receives Provincial Housing Subsidy NDoHS /
allocation from the National Department MEC /
MEC Receives Provincial of Housing according to the housing Provincial Department of
Housing Subsidy Allocation
from National needs / projects identified in the Provincial Human Settlements
Integrated Development Plan. Allocation of
funds according to different programmes.
2 Municipalities apply for reservation of Developer (Municipality as
Municipalities apply for
reservation of project funding project funding in terms of approved IDP implementing agent)
i.t.o approved IDP and agreed and agreed project priorities.
priorities

3 MEC confirms reservation of project MEC /

MEC confirms reservation
of project funding per funding in terms of the relevant housing Municipality
municipality and requests programme per municipality and requests
project descriptions
project descriptions.
4 Municipality calls for land availability Developer /
Municipality calls for land
availability proposals where proposals where required. Land owners /
required Municipality

5 Adjudication / consideration of land Developer /

Adjudication of land
proposals in relation to IDP’s proposals in relation to IDP’s and selection Municipality
and selection of priority land of priority land.

6 Municipality secures land, undertakes Developer /

Municipality secures land,
undertakes feasibility study, feasibility study, prepares project Municipality
prepares project descriptions and compiles acquisition
descriptions and compiles
agreements / Land Availability Agreement.
acquisition agreements

7 MEC adjudicates / considers, makes MEC

MEC adjudicates, makes
conditional approval of conditional approval of specific project
project funding against funding against selected land parcels
selected land parcels and
and project descriptions including funds
project descriptions including
funds for housing subsidies for housing subsidies and facilitates and
and facilitates and determines determines variation amounts.
variation amounts

20
REFERENCE TABLE

Ref Task or item Notes Responsibility

8 NHBRC /
Developer

Municipality
requests project
enrollment with
NHBRC

9 NHBRC issues a Project Enrolment NHBRC /

NHBRC project enrollment
Certificate Developer
10 MEC confirms subsidy project approval in MEC /
MEC confirms subsidy
project approval in project project agreement with Municipality and Municipality /
agreement with Municipality concludes MOU with relevant parties. Developer
and concludes MOU with
relevant parties

11 Adjudication / consideration of land Developer /

Adjudication of land proposals
in relation to IDP’s and proposals in relation to IDP’s and selection Municipality
selection of priority land of priority land.

12 Procurement method: Turnkey project – Developer /

Developer responsible for whole project Municipality
Turnkey Strategy
(i.e. provides complete and functional
development)
13 Procurement method: Pre-planned project – Developer /
Only the town planning part of the project (Town Planner) /
Traditional Preplanned
is done (i.e. the town planning is done and Municipality
the land use rights obtained.)
14 Procurement method: Development project Developer /
– Only the development part of the project Municipality
Development Contract
is done (i.e. the construction of engineering
services and houses are done.)
15 Memorandums of Understanding / MEC /
Undertakings / Agreements / Contracts Municipality (developer) /
NHBRC /
Contractual
Matters Community /
NGO’s /
CBO”s /
Contractors

Housing Project Process Guide

21
 REFERENCE TABLE

Ref Task or item Notes Responsibility

16 Contracts: The project manager ensures Project Manager
that ALL contracts are signed with relevant
C
role players and originals are kept on file for
record purposes.
17 During this process the developer or Developer /
appointed professional team will assess Professional Team
the general conditions surrounding the
intended housing development and identify
Feasibility Process constraints and risks insofar as it could
affect the said development. From this the
feasibility and / or viability of the proposed
project will be determined and a Feasibility
Report submitted.
18 The developer will assess the current need Developer
for housing (type and size) as depicted
in the housing chapters of the Municipal
Identified need for Housing
IDP. This need should include specific
information regarding the demand and
supply of current housing programmes.
19 The developer will investigate the content Developer
of the housing chapters within the IDP and
study supplementary documents (where
Status Quo not part of the housing chapters) like
current stock, housing waiting lists, projects
in progress and current occupation to
determine the status quo.
20 In order to ensure that the project is Developer
correctly scoped as well as that all factors
have been considered, it is suggested that
a report be generated by the developer
Quantify the need quantifying the need and status quo
assessment. This report will serve as a
tool for diligence purposes as well as
a supplementary document where the
developer applies for funding from the PHD.
21 A Municipality will normally appoint a Developer /
project team to assist with the delivery Municipality
of housing programmes. The choice of
a project team is crucial and could affect
the timely completion of the project and
Appoint Core quality of the end product. Hence, it is
Team
suggested that careful consideration be
given to the appointment of the said project
team. Factors like local knowledge, capacity,
experience and track records are of utmost
importance.

22
REFERENCE TABLE

Ref Task or item Notes Responsibility

22 Optional activity. In the event where a Developer
vague housing chapter was prepared for
Market a Municipality, it could be necessary for
Analysis a market analysis to be undertaken in
order to ascertain the development scope,
however this should be considered the
exception to the rule.
23 Finalise development scope from the Developer
Finalize feasibility undertaken.
Development
Scope

24 During this process the developer’s Developer /

appointed professional team will plan and Project Team
design the proposed township and also
Planning Process compile and submit the necessary statutory
land use applications in order to realize the
anticipated land use rights identified during
the feasibility process.
25 Where informal settlement has taken place Professional Team /
on the proposed development area, this Town Planner
In situ
upgrading process must be followed. This phase is a
variation from the IRDP in terms of the
UISP and only applicable to UISP.
26 An extensive public participation process Town Planner
should be undertaken for existing informal
settlements which include all interested
and affected parties such as the current
occupiers. The participation process should
determine the quantity of people living on
Public the land as well as the normal requirements
Participation
needed to determine whether these people
are eligible to be accommodated under the
UISP. A Community Resolution with regard
to the proposed development should be
obtained and a Social Compact concluded
with the community / beneficiaries to
ensure their participation in the project.
27 A land use survey should be done to Town Planner /
determine the current land use whilst a land Municipality /
Land rights enquiry should also be undertaken. A CBO’s /
Register land register should be compiled to register Community
the current occupants and claimants. The
Land Register will be used for the transfer
of erven.

Housing Project Process Guide

23
 REFERENCE TABLE

Ref Task or item Notes Responsibility

28 Determine legal framework for obtaining Lawyer /
the proposed land use rights and / or Legal Advisor /
Legal
Development current legal status of the settlement as Conveyancer
Status well as specific constraints in terms of the
current legislative frameworks and title deed
restrictions.
29 Determine the current ownership/vesting Lawyer /
Secure
Ownership of the land in question, i.e. National Conveyancer
of Land Government (State), Provincial Government,
(if required) Municipality or Private (individual / company
/ trust etc.).
30 Investigation and assessment in terms of Town Planner
Statutory compliance of the proposed development
Assessment against local statutory planning controls and
forward planning documents (SDF, RSDF,
LDO and Precinct Plans).
31 All appointed team members investigate and Town Planner /
compile base information as per discipline Land Surveyor /
Physical with regard to the physical aspects of the Lawyer /
Investigation particular land parcel. Geotechnical Engineer /
Civil Engineer /
Electrical Engineer /
EIA consultant, et al
32 Source Base The Land Surveyor must obtain all Surveyor Project Manager /
Documents General diagrams (approved and submitted) Town Planner
with regard to the topography, cartography,
aerial photos, land use rights (lease areas,
Land Surveyor:
Base map grazing / mining rights, servitudes, usufructs
etc.) and reservations (nature conservation
Town Planner:
Layout Plan area etc.).
Town planner (or project manager – where
Engineer:
Availability of services reports appointed) source all municipal documents
(zoning certificate, as built plans and building
Environmental
Practitioner: EIA application plans) and compile a base map comprising of
Geo-technical Engineer:
all the information received from specialists
Geo-technical investigation into an electronic format.
The civil and electrical engineer investigates
the current situation with regards to
engineering services and compiles an
availability of services report.
The environmental practitioner will assess
all environmental aspects in terms of the
listed activities in terms of R.386 & R.387
in accordance with the regulations as
stipulated in R.385.
The Conveyancer must obtain all relevant
deeds office documentation (deeds, caveats,
interdicts, attachments, court orders etc.)
with regard to the land parcel.

24
REFERENCE TABLE

Ref Task or item Notes Responsibility

33 All information in Item 30 populated into Town Planner
Populate Base Map
electronic layout as layers.
34 Town Planner, Urban Designer & engineer Town Planner
Layout and Design of undertakes the layout of the township/
Township subdivision in consultation with the
environmental consultant.
35 Town Planner circulates the draft layout Town Planner /
to the rest of the project team – the rest Urban Designer /
Distribution of Layout to
project team
of the team will use this layout to finalise Engineer
their respective reports and applications to
relevant authorities.
36 Once the relevant procedure, Act or Town Planner
Preparation Ordinance was chosen (best suited for the
and Submission anticipated development and location) the
of Application
Town Planner prepares and submits an
application to the relevant authority/tribunal.
37 All interested and affected parties should Municipality /
be notified of the application as required Development Tribunal /
by the natural rules of justice and more Town Planner
specific, the audi alterem partem rule. The
way of notification is set out in the relevant
legislation used. Normally a choice of “who
is responsible for the circulation” exists,
Circulation of
however it is good practice to obtain the
Application consent of the authority to which the
application was submitted where it will not
be circulating, to do so. More importantly,
the authority who received the application
should confirm, notify and clarify to the
applicant which departments, interested
and affected parties or other parties, in its
opinion, the application is to be circulated
to.
38 Depending on the legislation used, a certain Applicant /
statutory advertisement period applies. Authority
Normally an application will be advertised
in two languages, in two local newspapers
and the Provincial Gazette, once a week
Advertisement for two consecutive weeks. Approval
of Application from the authority to who the application
was submitted is normally sought for the
notice to be published, the particular period
and the choice of newspaper used. The
said authority will normally confirm the
languages, the period and newspapers to be
used in this process.

Housing Project Process Guide

25
 REFERENCE TABLE

Ref Task or item Notes Responsibility

39 During Item 35, the application was Town Planner /
circulated to various authorities, bodies and Project team /
interested and/or affected parties. It is the Developer
prerogative of the entire project team to
Obtain Comments obtain (as quick as possible) formal feedback
from the relevant affected parties through
personal consultation, discussions and
negotiations of requirements and conditions
to be imposed.
40 Once all comments / objections in Item Town Planner /
37 were obtained, the applicant should Professional Team /
reply thereto by either accepting any Planning Committee /
requirements / conditions and if so, it might Townships Board /
be necessary to make certain amendments Development Tribunal
to the initial layout and application or reject
such objections / requirements / conditions.
In this case it will be necessary to determine
Prepare Final Documentation whether the amendment is material
for Approval (significant) or immaterial (insignificant) –
where material go back to Item 31 – if not
proceed and prepare final documents which
will include the final layout and conditions of
establishment. If there is a dispute, a site visit
and a formal public hearing will be held to
afford the parties the opportunity to submit
evidence or arguments to be considered.
Those can be tested by the other parties.
41 Authority / Tribunal to whom the application Municipality /
was submitted, approves the application, Tribunal /
Close-out Approval of
Phase Township layout and conditions of establishment / MEC
conditions of approval.

42 Approval documents comprise of: Municipality /

Close-out * approved layout plan / subdivision plan; Town Planner /
Phase * approved conditions of establishment / Project Manager
conditions of approval

26
REFERENCE TABLE

Ref Task or item Notes Responsibility

43 After approval of the township / subdivision Town Planner /
certain conditions are normally imposed on Professional Team /
the development as pre-proclamation or
pre-registration conditions / requirements
to be complied with. During this phase
of the development, the project team
will be responsible for discharging of
pre-proclamation conditions / approval
conditions per discipline.

The land surveyor will obtain the approval Land Surveyor /

documents from the town planner
Post Approval and calculates and surveys the layout /
Phase
servitudes prior to the submission of the
draft small scale diagram, servitude diagrams
and general plan to the Surveyor General,
who will issue an approved general plan and
diagrams.

The conveyancing attorney will use the Conveyancing Attorney

approved general plan / small scale diagram
/ subdivision diagram and other applications
and documents to register the township /
subdivision in the Deeds Office and to open
the township register / subdivision register
for further vestings / transfers.
44 Open township / subdivision register at the Conveyancer
Close-out Conveyancer Registrar of Deeds and compile & handover
Phase of deeds to beneficiaries.

45 Calculate approved layout and obtain Surveyor

Close-out Surveyor approved general plan / subdivision plan
Phase from Surveyor General

46 Discharge pre-proclamation / pre- Professional Team

Close-out Team registration conditions / conditions of
Phase approval.

Housing Project Process Guide

27
 REFERENCE TABLE

Ref Task or item Notes Responsibility

47 Once all pre-proclamation conditions were Town Planner
met, the general plan / subdivision diagram
and township register / subdivision opened,
the authority that approved the application
Proclamation will issue a certificate to the effect and
Close-out of Township
Phase proclaim the township / subdivision as
an approved township. Local authority
publishes approved township in Provincial
Gazette. All land rights are effective from
proclamation.
48 It is a pre-proclamation condition / Town Planner /
requirement that the existing town planning Municipality
scheme must be amended to include
the township / subdivision in the town
Amend TPS
planning scheme prior to the declaration
of the township and the amendment must
be published simultaneously with the
declaration of the township.
49 The vesting of public places will be noted in Conveyancing Attorney
the Deeds Office in both the Township Title
Vest Public Land and and the Township Register. Other erven
Transfer other Land can then be transferred to the new owners.
New entities registered are transferred to
beneficiaries.
50 In both existing settlements and new Services Contractor
townships the areas of the site where
Site
preparation engineering services must be installed /
(where constructed, can be cleared, where possible.
necessary) This phase is a variation from the IRDP in
terms of the UISP and only applicable to
UISP.
51 Where structures or people are located on Professional Team /
areas identified for roads, parks or other Municipality /
social facilities, structures will be have to be Contractors
Relocation relocated and / or the occupiers / people
of people be moved. Negotiations, agreements and
arrangements for such relocation can be
done. People who did not qualify for the
UISP must be relocated to pre-determined
areas.

28
REFERENCE TABLE

Ref Task or item Notes Responsibility

52 The implementation of the remaining Professional Team
Implementation construction phase is started. During this Local Municipality
Process process execution of the above phases is Contractors
put in place.
53 The civil / electrical / traffic engineers will Civil /
use the services agreement and approved Electrical /
layout plan for preliminary engineering Traffic Engineers /
services design and the approved general Municipality
plan as well as the town planning layout to
finalise the design of the services for the
Engineering
Services Design
development. These services will normally
not include the design of the external bulk
and link services; however exceptions to
the rule might apply depending on the
stipulations of the service agreement.
The designs must be approved by the
Municipality.
54 Prior to the commencement of any Engineers /
construction related activity the following Contractors /
documentation must be available. These can Municipality
include, but not limited to approved land
use rights, a positive geo-technical report,
a positive Record of Decision (EIA) and an
approved occupational health and safety
- Bulk Earthworks plan.
- Install Services
- Construct Streets
- Handover of The necessary earthworks are conducted
services and services installed under the supervision
- Site Supervision of a site engineer. On completion of and
after testing the services installed and
constructed, the hand-over of services to
the relevant municipality will take place.

In addition to the above contractors will

also need to provide details in terms of
standard contacts.
55 The Conveyancer will then obtain the Conveyancer
Obtain
Clearance
Close-out necessary tax clearance certificates from
Phase
Certificates the local municipality for the transfer of
erven.

Housing Project Process Guide

29
 REFERENCE TABLE

Ref Task or item Notes Responsibility

56 The architect will compile and submit Architect /
House Construction:
- Submit building plans building plans to the Municipality for Structural Engineer
- Approved building approval prior to the commencement of
plans construction.
- House Construction

Building Inspection: Upon completion of the top structure

- Foundation certificate an engineer will certify that foundations
- Structural certificate
- Occupation certificate and structural elements of the house are
satisfactory for human occupation.
57 The engineering services are handed over to Contractor
Close-out
Phase
the Municipality. Developer /
Completion Municipality /
and Handover Project Manager
of services to
Council

58 A final inspection is undertaken by the Civil /

Completion Close-out
Municipality. Electrical Engineers /
Inspection Phase Architect /
Project Manager
59 The top structures are completed. Project Manager /
Close-out
Phase
completion certificates issued. Contractor /
Completed Architect
Top Structure

60 On completion of the construction of the Contractor /

Occupation houses, occupation certificates are obtained Architect /
Close-out
Certificates Phase
from the Municipality. Developer /
Municipality
61
Beneficiaries
Subsidy Process
62 Subsidy
Specific programme subsidies are approved. Municipality /
Application PHD
approval

63 Allocation
Municipality allocates houses per beneficiary Municipality /
of houses registration. PHD

64 Occupation Occupation takes place and title deeds are Conveyancer /

of houses handed over Municipality /
and title
PHD
deed
handover to
beneficiaries

30
REFERENCE TABLE

Ref Task or item Notes Responsibility

65 This phase comprises of the cumulative Project Manager /
Handover of Project finalisation of the different close-out phases Contractor /
and ultimate completion of the project. PHD
66 Documented proof of all the close-out Project Manager
phases during the project life cycle.
Documented
proof of all the close-out
phases during project
life cycle

67 Compile all documentation required for the Project Manager /

Prepare final
drawdown final drawdown per housing programme. Developer

68 Submit Submit final drawdown to MEC. Developer /

drawdown Project Manager
to MEC

69 Payment is made by the National NDoHS,

Payout Government to the Provincial Government. PHD,
Process The Provincial Government then pays the Municipality &
Municipality who pays the contractors. Contractors
70
CLaRA Process

71 Community confirms the need for housing. Community /

Community confirms the
need for housing - Need is The need is identified and communicated to NDoHS /
communicated to traditional the traditional council / Municipality. PHD /
council / municipality
Municipality
72 Municipality confirms project part of Municipality
Municipality confirms project
part of Housing Chapter of Housing Chapter of IDP & funding
IDP and funding reservation reservation is agreed with MEC
agreed with MEC

73 Community applies to the Municipality to Community

Community applies to the
municipality to appoint appoint an implementing agent / supporting
implementing agent / organization
supporting organisation

74 PHD evaluates the application and submits PHD

PHD to MEC for approval
evaluates
application and
submits to
MEC

75 MEC approves the application MEC

Application
Approved

Housing Project Process Guide

31
 REFERENCE TABLE

Ref Task or item Notes Responsibility

76 Municipality secures payment of services Municipality
Municipality secures
procurement of services of implementing agent / supporting
of implementing agent / organization
support organisation

77 PHD checks information and database PHD

PHD checks
information and
tests against
database

78 Implementing agent / supporting Implementing Agent

Implementing agent /
supporting organisation organization prepares and submits project
prepares and submits application to MEC
project application to
MEC

79 PHD evaluates the project application and PHD

submits to MEC
PHD evaluates
project application
and if complaint with
policy prescripts
submit to MEC

80 MEC approves the application MEC

MEC
approves project
application

81 PHD record project on HSS and informs PHD /

PHD record project
on HSS and inform Municipality of decision Municipality
municipality of decision

82 Project agreement concluded NDOH /

Project agreement
concluded PHD /
Municipality
83 Registration of houses with NHBRC NDoHS /
New constructed
houses registered commences PHD /
with NHBRC Municipality

84 Implementation of the project continues NDoHS /

Project implementation
continues PHD /
Municipality

32
REFERENCE TABLE

Ref Task or item Notes Responsibility

85 Payment of subsidies in accordance with NDoHS /
Payment of subsidies
in accordance with milestones commences PHD /
milestones Municipality

86 Project is completed NDoHS /

Project Completion PHD /
Municipality
87 Civil Engineering Services is now handed NDoHS /
Services handed over to
municipality over to the municipality. PHD /
Municipality
88 It is of utmost importance to ensure NDoHS /
that where contractors and/or other PHD /
Contractual Matters professionals are used, that signed contracts Municipality
between the respective parties exist and be
kept on file.

Housing Project Process Guide

33
 Project Schedules

The project schedule is also a generic schedule which The township establishment schedule and/or process
project managers can use to plan their specific projects.The for obtaining the necessary land use rights is based on
time required for construction will vary from project to the statutory periods contained in the DFA. The time for
project, as will environmental and other approvals. Users of comments and approvals by municipalities and government
this Guide can use the schedule as a general tool to plan and departments are often the most difficult to manage, but is
manage their projects, but the best use will be to utilise the also the one area where a project can inter alia be accelerated
electronic version and adapt the schedule to their specific through good co-operative governance.
project requirements and circumstances.

1. Housing process

34
2. Township establishment

Housing Project Process Guide

35
 3. Subsidy application

36
4. Environmental impact assessment

Housing Project Process Guide

37
 5. Application procedure

38
6. Land surveying & conveyancing

Housing Project Process Guide

39
 7. Sales administration

40
8. Land servicing

Housing Project Process Guide

41
 9. House construction

42
10. Project handover

Housing Project Process Guide

43
 DEVELOPMENT CHECKLIST

% Days Days Days

No Housing Process Guide
Complete Planned Completed Remaining
Total Completion
1 Subsidy Application
1.1 MEC receives provincial housing subsidy allocation from
National
1.2 Municipality applies for reservation of project funding
i.t.o approved IDP
1.3 MEC confirms reservation of project funding
1.4 Municipality calls for LA proposals
1.5 Adjudication of land proposals
1.6 Municipality secures land, undertakes feasibility study and
project descriptions
1.7 MEC adjudicates - conditional approval of project funding
1.8 Enrollment with NHBRC
1.9 MEC confirms subsidy project approval
1.10 Adjudication of land proposals
1.11 Municipality / Developer chooses procurement strategy

2 Township Establishment
2.1 Identify land
2.2 Feasibility Studies
2.3 Establish registered owner
2.4 Negitate with owner
2.5 Conclude agreement
2.6 Land investigation into legal / cadastral position of land
2.7 Title deed description and area
2.8 Existing leases (registered / unregistered)
2.9 Restrictive conditions - servitudes
2.10 Restrictive conditions - other rights
2.11 Restrictions - surrounding development

44
DEVELOPMENT CHECKLIST

% Days Days Days

No Housing Process Guide
Complete Planned Completed Remaining
Total Completion
3 Environmental Impact Studies
3.1 EIA Application
3.2 Complete application
3.3 Land owner consent
3.4 Peruse application
3.5 Submit application
3.6 Awaiting approval by competent authority
3.7 Receive acknowledgement of receipt of application
3.8 Scoping phase
3.9 Public participation (Registration of IP and AP’s)
3.10 Site Assessment
3.11 Identification of Environmental Impacts
3.12 Prepare Scoping Report
3.13 Prepare plan of study for EIA
3.14 Avail Scoping Report for public comment
3.15 Public review process
3.16 Incorporate public comments
3.17 Submit report to CA
3.18 Awaiting approval by CA
3.19 Receiving approval for continuation of EIA
3.20 EIA Report
3.21 Compile EIA Report (Incorporate specialist rep)
3.22 Submit for public review
3.23 Incorporate public comment
3.24 Draft EMP
3.25 Review and finalise EIA report
3.26 Submit EIA report
3.27 Awaiting Environmental Authorisation
3.28 Granting of Environmental Authorisation
3.29 Record of decision
3.30 Issue ROD
3.31 Notify all stakeholders of decision from CA
3.32 Notice of intention to appeal (10 days)
3.33 CA receive appeal (30 days)
3.34 Responding statement (30 days)
3.35 Appelant to respond to responding statement (30 days)
3.36 CA to acknowledge statement (10 days)
3.37 Decision of appeal indefinite

Housing Project Process Guide

45
 DEVELOPMENT CHECKLIST

% Days Days Days

No Housing Process Guide
Complete Planned Completed Remaining
Total Completion
4 Compilation and Submission of application
4.1 Town planning layouts, etc.
4.2 Obtain Basemapping
4.3 Land surveyor - aerial photo, contours and as built
4.4 Conveyancer - Conveyancer’s report
4.5 EIAP - EIA Application
4.6 Civil Engineers - Availability of services reports (water,
sewer, roads and stormwater)
4.7 Electrical Engineer - Availability of electrical services
report
4.8 Geo-technical Engineer - Geo-technical Investigation
4.9 Other: Circumstances might require additional studies to
be conducted
4.10 Define planning parameters
4.11 Prepare draft layout plans
4.12 Test plans against engineering requirements
4.13 Legal Framework - Decision on application legislation to
use
4.14 Prepare re-zoning / subdivision application
4.15 Submit application to local authority
4.16 Advertising application
4.17 Obtain comments from external and internal
departments
4.18 Preparation of conditions of establishment
4.19 Finalisation of conditions of establishment
4.20 Local authority approval process
4.21 Approval of Township by Local Authority

46
 Department of Human Settlements

Postal Address: Private Bag X644, PRETORIA, 0001

Physical Address: Govan Mbeki House, 240 Walker Street, Sunnyside, PRETORIA
Tel: (012) 421 1311
Fax: (012) 341 8513
Website: www.dhs.gov.za

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