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
NHBRC

National Department of Human Settlements

PHD

National Home Builders Registration Council

ROD

Provincial Housing Department

Record of Decision

RSDF

Regional Spatial Development Framework

SDF

Spatial Development Framework

Housing Project Process Guide

TABLE OF CONTENTS
PART ONE
Introduction

Selection of Housing Programme

The Housing Code

National Housing Policy Context

The Three Programmes

The Integrated Residential Development Programme

The Upgrading of Informal Settlements Programme

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

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.

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
properties, grant funding to Municipalities and/
or Provinces to deliver services or facilities for
professional services to facilitate planning and
delivery.

Extended Discount Benefit Scheme

Social and Economic Facilities
Accreditation of Municipalities
Operational Capital Budget
Housing Chapters of IDPs
Rectification of Pre-1994 Housing Stock
Incremental Housing
Programme

Integrated Residential Development

Programme
People Housing Process
Informal Settlement Upgrading
Programme
Consolidation Subsidies
Emergency Housing Assistance

Social and Rental

Housing Programme

The programme facilitates the structured

upgrading of informal settlements. It applies
to in situ upgrading of informal settlements as
well as where communities are to be relocated
for a variety of reasons. The programme
entails extensive community consultation and
participation. Emergency basic services provision,
permanent services provision and security of
tenure.

Institutional Subsidies
Social Housing
Community Residential Units

Rural Housing
Programme

Rural Subsidy: Informal Land Rights

The Rural programme is used to extend the

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

The Housing Code

The National Housing Code 2009 sets the underlying policy
principles, guidelines and norms and standards which apply
to Governments various housing assistance programmes
introduced since 1994 and updated.
The purpose of this Guide is to provide an easy-tounderstand 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.

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 Governments

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

The Three Programmes

Integrated Residential Development
Programme (IRDP)

Who will be assisted?

This Programme will assist people who:

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.

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;

Has not owned fixed residential property; and

the development of integrated human settlements in well-

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.

What is the programme about?

Hence a new Programme has been introduced to facilitate

Certified copies of the relevant

Has previously owned fixed residential property, such

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;

schools and clinics, as well as residential stands for both

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

Programme may also be assisted.

a variety of land uses including commercial, recreational,

The IRDP can be undertaken in phases or in one single phase.

Single persons must have financial dependants;

Single persons without financial dependants such as the

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, dont 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;

churches and crches/nursery schools; and

Stands for public use e.g. parks and community facilities

etc.

Stands for non-profitable community services e.g.

Special conditions apply to the sale and transferring of these

stands.

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

The Three Programmes

Upgrading of Informal Settlements

Programme (UISP)

Who will be assisted?

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

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.

who

have

previously

received

housing

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

The Three Programmes

Rural Housing Subsidy: Communal Land
Rights

the rules or custom of that community. It is a pre-requisite

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.

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:

Furthermore,

subsidies for housing development on communal land

registered in the name of the State and which will be held
by community members/traditional authority subject to

10

Persons who are married or habitually cohabiting;

Single persons with financial dependants;
Single persons without financial dependants;

The Three Programmes

Households with a monthly income in the range as

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

How to access the programme

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;

please refer to the Manual on the Adjustment of the Housing

Subsidy Scheme Amount for Extraordinary Development

promulgation of CLaRA).

Variations may apply where applicable. For this purpose

Municipalities;
Traditional Councils; and
The Land Administration Committee (after the

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
Housing Chapter in IDP

MEC Receives Provincial

Housing Subsidy Allocation
from National

Identified need for Housing

Municipalities apply for
reservation of project funding
i.t.o approved IDP and agreed
priorities

Status Quo

Quantify the need

MEC confirms reservation

of project funding per
municipality and requests
project descriptions

Appoint Core
Team

Municipality calls for land

availability
Adjudication of land
proposals in relation to IDPs
and selection of priority land

Negative

Municipality secures land,

undertakes feasibility study,
prepares project
descriptions and compiles
acquisition agreements

Positive

IRDP

Brownfields
Identified
Land

MEC review reasons and take

remedial action

Legal
Development
Status

Secure
Ownership
of Land
(if required)
No

Non-compliance
Statutory
Assessment

In situ
upgrading

No

Land Surveyor:
Base map
Town Planner:
Layout Plan
Engineer:
Availability of services reports

Physical
Investigation

NHBRC project enrollment

14

Public
Participation

Yes

Procurement Method

Adjudication of land proposals

in relation to IDPs and
selection of priority land

Land
Register

UISP
Greenfields

Initial feasibility study

Yes

MEC confirms subsidy

project approval in project
agreement with Municipality
and concludes MOU with
relevant parties

Market
Analysis

Planning Process

MEC adjudicates, makes

conditional approval of
project funding against
selected land parcels and
project descriptions including
funds for housing subsidies
and facilitates and determines
variation amounts

Municipality
requests project
enrollment with
NHBRC

Finalize
Development
Scope

Turnkey Strategy

Traditional Preplanned

Contractual
Matters
C

Environmental
Practitioner: EIA application
Geotechnical Engineer:
Geotechnical investigation

Source Base
Documents

Contractual Matters
Development Contract

Turnkey:
One contractor or where ad
hoc specialist are required 3
phases are provided.
- Town Planning
- Installation of Services
- Construction of Houses

Traditional Preplanned:
What is the in-house capacity?
- Ad hoc contracts with
specialists as and when
required

Local Authority Publishes

approved township in
Provincial Gazette

Proclamation
of Township

Close-out
Phase

Amend TPS
Open Township / Subdivision
register at the Registrar
of Deeds and compile
and handover of deeds to
beneficiaries

Conveyancer

Close-out
Phase

Vest Public Land and

Transfer other Land

Pegging of stands

Surveyor

Calculate approved layout

and obtain approved General
Plan / subdivision plan from
Surveyor General

Close-out
Phase

Team

Discharge conditions of
establishment / conditions of
approval

Close-out
Phase

Post Approval
Phase

Approval documents
comprise of:
1. Approved layout plan /
subdivision plan
2. Approved Conditions of
Establishment / Conditions of
approval

Close-out
Phase

Approval of
Township

Prepare Final Documentation

for Approval

Negative

Positive

Obtain Comments

Statutory Advertisement
Advertisement
of Application

Site
preparation
(where
necessary)

Relocation
of people

Beneficiaries
Subsidy Process
Subsidy
Application
approval

Allocation
of houses

Occupation
of houses
and title
deed
handover to
beneficiaries

Handover of Project

Implementation
Process
Construction
Engineering
Services Design

- Bulk Earthworks
- Install Services
- Construct Streets
- Handover of
services
- Site Supervision

Obtain
Clearance
Certificates

Close-out
Phase

Completion
and Handover
of services to
Council

House Construction:
- Submit building plans
- Approved building
plans
- House Construction
Building Inspection:
- Foundation certificate
- Structural certificate
- Occupation certificate

Circulation of
Application

Preparation
and Submission
of Application
Amend
application

Populate Base Map

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

Documented
proof of all the close-out
phases during project
life cycle

Close-out
Phase

Close-out
Phase

Completed
Top Structure

Close-out
Phase

Occupation
Certificates
Distribution of Layout to
project team

Layout and Design of

Township

Prepare final
drawdown
Submit
drawdown
to MEC

Payout
Process

- Installation of Services
- Construction of Houses

15

RURAL SUBSIDY: COMMUNAL LAND RIGHTS

Community confirms the

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

CLaRA Process

CLaRA

Minister
establishes
Land Rights
Board

Community
establish Land
Administration
Committee

Minister
appoint Land
Rights
Enquirer

Community registers Community Rules with

department and becomes juristic person

Land Rights Enquiry Commences

Municipality confirms project

part of Housing Chapter of
IDP and funding reservation
agreed with MEC

Community applies to the

municipality to appoint
implementing agent /
supporting organisation

Municipality assesses
application and make
recommendations to MEC

Land Rights enquiry report submitted to Minister

Determination by Minister

Communal
Land

Individual
Ownership

Community
applies to
municipality

PHD
evaluates
application and
submits to
MEC

Combination
Municipality secures
procurement of services
of implementing agent /
support organisation

Application not
Recommended
Application
Recommended

Application
Refused
Application
Approved

Feasibility Process

Completed
CLaRA
process

Contractual
Matters
C

Housing Chapter in IDP

Identified need for Housing

Status Quo

Quantify the need

Finalize
Development
Scope

16

Development Contract:
Use community contractors:
Two types of contracts
allowed for:
- Installation of Services
- Construction of Houses

Implementation
Process

Planning Process

Identified
Land

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

Legal
Development
Status

Determine
Land Rights

This section of the

chart includes typical
services installation
and construction of
houses.
The programme
allows for a wide
range of options and
implementation in
accordance with the
approved scope of
the project.

MEC
approves project
application

Construction
Engineering
Services Design

- Bulk Earthworks
- Install Services
- Construct Streets
- Handover of
services
- Site Supervision
Where
Applicable

Land Affairs
to approve
development
on State
owned land

Statutory
Assessment

PHD checks
information and
tests against
database

Beneficiaries
Subsidy Process

PHD record project

on HSS and inform
municipality of decision

Subsidy
Application
approval

Project agreement
concluded

Allocation
of houses

New constructed
houses registered
with NHBRC

Where
Applicable

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

Physical
Investigation

Handover of Project

Populate Base Map

Land Surveyor:
Base map

Distribution of
Layout to project
team

Documented
proof of all the close-out
phases during project
life cycle

Engineer:
Availability of services reports
Environmental
Practitioner: EIA application
Geotechnical Engineer:
Geotechnical investigation

Layout and Design

of Township / GPS
of boundaries and
houses

Close-out
Phase

Close-out
Phase

Completion
and Handover
of services to
Council
Where
Applicable

House Construction:
- Submit building plans
- Approved building
plans
- House Construction
Building Inspection:
- Foundation certificate
- Structural certificate
- Occupation certificate
Where
Applicable

Town Planner:
Layout Plan

Source Base
Documents

Occupation
of houses
and title
deed
handover to
beneficiaries

Obtain
Clearance
Certificates

Where
Applicable

Close-out
Phase

Completed
Top Structure

Close-out
Phase

Occupation
Certificates
Prepare final
drawdown
Submit
drawdown
to MEC

Where
Applicable

Payout
Process

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?
No

Do all the work in-house

as Developer

Yes

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
project?
Yes

No

Yes
Does the Developer intend to
appoint community contractors for
different steps of the programme?

No

No

TURNKEY STRATEGY
The turnkey Contractor is appointed
by the Developer through a public
tender to do all the work related
to the successful completion of the
project.
- Planning of approved land;
- Township establishment process;
- Design and installation of internal
reticulation services and the
construction of houses

RISK: Tenderer carries the risk should

overruns occur that are not provided
for in the contract.

18

TRADITIONAL PREPLANNED
Professional and contracting services
may be provided in-house or procured
through public tenders.
- The Developer has the flexibility to
appoint and brief professionals and
to manage the process of development in a hands-on manner.
- Contractors undertake construction
by making use of the comprehensive
designs issued by the developer.
Please note: the Developer may
apply the turnkey strategy within this
strategy and award development rights
through a tendering process.
RISK: Developer carries the risk for
any financial overruns.

Yes

DEVELOPMENT CONTRACT
Community Contractors are
contracted / appointed through
public tenders
This strategy permits the community
to participate in development to the
extend that they are able to do so.

RISK: Materials and construction

managers are required to manage
the Developers risk associated with
construction.

National Home Builders 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 requests further

particulars

NHBRC reviews project

description and preliminary
Geo-technical Report

NHBRC rejects application

and notifies MEC

Complete
Unacceptable
Is site underlain
by dolomites?

Yes

NHBRC requests dolomite

stability investigation

NHBRC reviews dolomitic

stability investigation report

No

Acceptable
NHBRC grants in-principle enrollment and advises the
Home Builder in writing and notifies MEC of any conditions

Developer prepares
feasibility study and submits
to NHBRC

NHBRC reviews feasibility

study

NHBRC rejects application

and notifies the MEC
Yes

No

Is Home Builder
registered?

Yes

Is the
NHBRC unduly
exposed to the
aspects of the
project?
No

NHBRC issues project enrollment certificate

Housing Project Process Guide

19

REFERENCE TABLE

Ref

Task or item

1
MEC Receives Provincial
Housing Subsidy Allocation
from National

20

Municipalities apply for

reservation of project funding
i.t.o approved IDP and agreed
priorities
MEC confirms reservation
of project funding per
municipality and requests
project descriptions
Municipality calls for land
availability proposals where
required
Adjudication of land
proposals in relation to IDPs
and selection of priority land
Municipality secures land,
undertakes feasibility study,
prepares project
descriptions and compiles
acquisition agreements
MEC adjudicates, makes
conditional approval of
project funding against
selected land parcels and
project descriptions including
funds for housing subsidies
and facilitates and determines
variation amounts

Notes

Responsibility

MEC receives Provincial Housing Subsidy

allocation from the National Department
of Housing according to the housing
needs / projects identified in the Provincial
Integrated Development Plan. Allocation of
funds according to different programmes.

NDoHS /
MEC /
Provincial Department of
Human Settlements

Municipalities apply for reservation of

project funding in terms of approved IDP
and agreed project priorities.

Developer (Municipality as
implementing agent)

MEC confirms reservation of project

funding in terms of the relevant housing
programme per municipality and requests
project descriptions.

MEC /
Municipality

Municipality calls for land availability

proposals where required.

Developer /
Land owners /
Municipality

Adjudication / consideration of land

proposals in relation to IDPs and selection
of priority land.

Developer /
Municipality

Municipality secures land, undertakes

feasibility study, prepares project
descriptions and compiles acquisition
agreements / Land Availability Agreement.

Developer /
Municipality

MEC adjudicates / considers, makes

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

MEC

REFERENCE TABLE

Ref

Task or item

Notes

Responsibility
NHBRC /
Developer

Municipality
requests project
enrollment with
NHBRC

9
10

11

NHBRC issues a Project Enrolment

Certificate

NHBRC /
Developer

MEC confirms subsidy project approval in

project agreement with Municipality and
concludes MOU with relevant parties.

MEC /
Municipality /
Developer

Adjudication / consideration of land

proposals in relation to IDPs and selection
of priority land.

Developer /
Municipality

Turnkey Strategy

Procurement method: Turnkey project

Developer responsible for whole project
(i.e. provides complete and functional
development)

Developer /
Municipality

Traditional Preplanned

Procurement method: Pre-planned project

Only the town planning part of the project
is done (i.e. the town planning is done and
the land use rights obtained.)

Developer /
(Town Planner) /
Municipality

Development Contract

Procurement method: Development project

Only the development part of the project
is done (i.e. the construction of engineering
services and houses are done.)

Developer /
Municipality

Memorandums of Understanding /
Undertakings / Agreements / Contracts

MEC /
Municipality (developer) /
NHBRC /
Community /
NGOs /
CBOs /
Contractors

NHBRC project enrollment

MEC confirms subsidy
project approval in project
agreement with Municipality
and concludes MOU with
relevant parties
Adjudication of land proposals
in relation to IDPs and
selection of priority land

12

13

14

15

Contractual
Matters

Housing Project Process Guide

21

REFERENCE TABLE

Ref

Task or item

Notes

Responsibility

Contracts: The project manager ensures

that ALL contracts are signed with relevant
role players and originals are kept on file for
record purposes.

Project Manager

Developer /
Professional Team

Feasibility Process

During this process the developer or

appointed professional team will assess
the general conditions surrounding the
intended housing development and identify
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.

Developer

Identified need for Housing

The developer will assess the current need

for housing (type and size) as depicted
in the housing chapters of the Municipal
IDP. This need should include specific
information regarding the demand and
supply of current housing programmes.

Developer

Status Quo

The developer will investigate the content

of the housing chapters within the IDP and
study supplementary documents (where
not part of the housing chapters) like
current stock, housing waiting lists, projects
in progress and current occupation to
determine the status quo.

Developer

Quantify the need

In order to ensure that the project is

correctly scoped as well as that all factors
have been considered, it is suggested that
a report be generated by the developer
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.

Developer /
Municipality

Appoint Core
Team

A Municipality will normally appoint a

project team to assist with the delivery
of housing programmes. The choice of
a project team is crucial and could affect
the timely completion of the project and
quality of the end product. Hence, it is
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.

16
C

17

18

19

20

21

22

REFERENCE TABLE

Ref

Task or item

Notes

Responsibility

Optional activity. In the event where a

vague housing chapter was prepared for
a Municipality, it could be necessary for
a market analysis to be undertaken in
order to ascertain the development scope,
however this should be considered the
exception to the rule.

Developer

Finalise development scope from the

feasibility undertaken.

Developer

Developer /
Project Team

Planning Process

During this process the developers

appointed professional team will plan and
design the proposed township and also
compile and submit the necessary statutory
land use applications in order to realize the
anticipated land use rights identified during
the feasibility process.

In situ
upgrading

Where informal settlement has taken place

on the proposed development area, this
process must be followed. This phase is a
variation from the IRDP in terms of the
UISP and only applicable to UISP.

Professional Team /
Town Planner

An extensive public participation process

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
the land as well as the normal requirements
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.

Town Planner

A land use survey should be done to

determine the current land use whilst a land
rights enquiry should also be undertaken. A
land register should be compiled to register
the current occupants and claimants. The
Land Register will be used for the transfer
of erven.

Town Planner /
Municipality /
CBOs /
Community

22
Market
Analysis

23
Finalize
Development
Scope

24

25

26

Public
Participation

27
Land
Register

Housing Project Process Guide

23

REFERENCE TABLE
Ref

Task or item

Notes

28
Legal
Development
Status

29

Secure
Ownership
of Land
(if required)

30
Statutory
Assessment

31
Physical
Investigation

32

Source Base
Documents

Land Surveyor:
Base map
Town Planner:
Layout Plan
Engineer:
Availability of services reports
Environmental
Practitioner: EIA application
Geo-technical Engineer:
Geo-technical investigation

24

Responsibility

Lawyer /
Determine legal framework for obtaining
Legal Advisor /
the proposed land use rights and / or
Conveyancer
current legal status of the settlement as
well as specific constraints in terms of the
current legislative frameworks and title deed
restrictions.
Lawyer /
Determine the current ownership/vesting
Conveyancer
of the land in question, i.e. National
Government (State), Provincial Government,
Municipality or Private (individual / company
/ trust etc.).
Investigation and assessment in terms of
compliance of the proposed development
against local statutory planning controls and
forward planning documents (SDF, RSDF,
LDO and Precinct Plans).

Town Planner

All appointed team members investigate and

compile base information as per discipline
with regard to the physical aspects of the
particular land parcel.

Town Planner /
Land Surveyor /
Lawyer /
Geotechnical Engineer /
Civil Engineer /
Electrical Engineer /
EIA consultant, et al

The Land Surveyor must obtain all Surveyor Project Manager /

General diagrams (approved and submitted) Town Planner
with regard to the topography, cartography,
aerial photos, land use rights (lease areas,
grazing / mining rights, servitudes, usufructs
etc.) and reservations (nature conservation
area etc.).
Town planner (or project manager where
appointed) source all municipal documents
(zoning certificate, as built plans and building
plans) and compile a base map comprising of
all the information received from specialists
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.

REFERENCE TABLE
Ref
33

Task or item

Notes

Responsibility

Populate Base Map

All information in Item 30 populated into

electronic layout as layers.

Town Planner
Town Planner

Layout and Design of

Township

Town Planner, Urban Designer & engineer

undertakes the layout of the township/
subdivision in consultation with the
environmental consultant.
Town Planner circulates the draft layout
to the rest of the project team the rest
of the team will use this layout to finalise
their respective reports and applications to
relevant authorities.

Town Planner /
Urban Designer /
Engineer

34

35
Distribution of Layout to
project team

36
Preparation
and Submission
of Application

Town Planner
Once the relevant procedure, Act or
Ordinance was chosen (best suited for the
anticipated development and location) the
Town Planner prepares and submits an
application to the relevant authority/tribunal.
Municipality /
Development Tribunal /
Town Planner

Circulation of
Application

All interested and affected parties should

be notified of the application as required
by the natural rules of justice and more
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,
however it is good practice to obtain the
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.
Depending on the legislation used, a certain
statutory advertisement period applies.
Normally an application will be advertised
in two languages, in two local newspapers
and the Provincial Gazette, once a week
for two consecutive weeks. Approval
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.

Applicant /
Authority

37

38

Advertisement
of Application

Housing Project Process Guide

25

REFERENCE TABLE

Ref

Task or item

Notes

39

Obtain Comments

40

Prepare Final Documentation

for Approval

41
Close-out
Phase

Approval of
Township

42
Close-out
Phase

26

Responsibility

Town Planner /
During Item 35, the application was
circulated to various authorities, bodies and Project team /
Developer
interested and/or affected parties. It is the
prerogative of the entire project team to
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.
Once all comments / objections in Item
37 were obtained, the applicant should
reply thereto by either accepting any
requirements / conditions and if so, it might
be necessary to make certain amendments
to the initial layout and application or reject
such objections / requirements / conditions.
In this case it will be necessary to determine
whether the amendment is material
(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.

Town Planner /
Professional Team /
Planning Committee /
Townships Board /
Development Tribunal

Authority / Tribunal to whom the application Municipality /

Tribunal /
was submitted, approves the application,
MEC
layout and conditions of establishment /
conditions of approval.
Approval documents comprise of:
* approved layout plan / subdivision plan;
* approved conditions of establishment /
conditions of approval

Municipality /
Town Planner /
Project Manager

REFERENCE TABLE

Ref

Task or item

43

Post Approval
Phase

44
Close-out
Phase

Conveyancer

45
Close-out
Phase

Surveyor

46
Close-out
Phase

Team

Notes

Responsibility

After approval of the township / subdivision

certain conditions are normally imposed on
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.

Town Planner /
Professional Team /

The land surveyor will obtain the approval

documents from the town planner
and calculates and surveys the layout /
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.

Land Surveyor /

The conveyancing attorney will use the

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.

Conveyancing Attorney

Open township / subdivision register at the

Registrar of Deeds and compile & handover
of deeds to beneficiaries.

Conveyancer

Calculate approved layout and obtain

approved general plan / subdivision plan
from Surveyor General

Surveyor

Discharge pre-proclamation / preregistration conditions / conditions of

approval.

Professional Team

Housing Project Process Guide

27

REFERENCE TABLE

Ref

Task or item

Notes

Responsibility

Once all pre-proclamation conditions were

met, the general plan / subdivision diagram
and township register / subdivision opened,
the authority that approved the application
will issue a certificate to the effect and
proclaim the township / subdivision as
an approved township. Local authority
publishes approved township in Provincial
Gazette. All land rights are effective from
proclamation.

Town Planner

Town Planner /
Municipality

Amend TPS

It is a pre-proclamation condition /
requirement that the existing town planning
scheme must be amended to include
the township / subdivision in the town
planning scheme prior to the declaration
of the township and the amendment must
be published simultaneously with the
declaration of the township.

Conveyancing Attorney

Vest Public Land and

Transfer other Land

The vesting of public places will be noted in

the Deeds Office in both the Township Title
and the Township Register. Other erven
can then be transferred to the new owners.
New entities registered are transferred to
beneficiaries.
In both existing settlements and new
townships the areas of the site where
engineering services must be installed /
constructed, can be cleared, where possible.
This phase is a variation from the IRDP in
terms of the UISP and only applicable to
UISP.

Services Contractor

Where structures or people are located on

areas identified for roads, parks or other
social facilities, structures will be have to be
relocated and / or the occupiers / 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.

Professional Team /
Municipality /
Contractors

47

Close-out
Phase

Proclamation
of Township

48

49

50
Site
preparation
(where
necessary)

51

Relocation
of people

28

REFERENCE TABLE

Ref

Task or item

Notes

Responsibility

Implementation
Process

The implementation of the remaining

construction phase is started. During this
process execution of the above phases is
put in place.

Professional Team
Local Municipality
Contractors
Civil /
Electrical /
Traffic Engineers /
Municipality

Engineering
Services Design

The civil / electrical / traffic engineers will

use the services agreement and approved
layout plan for preliminary engineering
services design and the approved general
plan as well as the town planning layout to
finalise the design of the services for the
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.
Prior to the commencement of any
construction related activity the following
documentation must be available. These can
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
plan.

Engineers /
Contractors /
Municipality

52

53

54

- Bulk Earthworks
- Install Services
- Construct Streets
- Handover of
services
- Site Supervision

The necessary earthworks are conducted

and services installed under the 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

Obtain
Clearance
Certificates

Close-out
Phase

The Conveyancer will then obtain the

necessary tax clearance certificates from
the local municipality for the transfer of
erven.

Conveyancer

Housing Project Process Guide

29

REFERENCE TABLE

Ref
56

Task or item
House Construction:
- Submit building plans
- Approved building
plans
- House Construction
Building Inspection:
- Foundation certificate
- Structural certificate
- Occupation certificate

57
Close-out
Phase

Completion
and Handover
of services to
Council

58
Completion
Inspection

Close-out
Phase

59
Close-out
Phase

Notes

Responsibility

The architect will compile and submit

building plans to the Municipality for
approval prior to the commencement of
construction.

Architect /
Structural Engineer

Upon completion of the top structure

an engineer will certify that foundations
and structural elements of the house are
satisfactory for human occupation.
The engineering services are handed over to Contractor
the Municipality.
Developer /
Municipality /
Project Manager

A final inspection is undertaken by the

Municipality.

Civil /
Electrical Engineers /
Architect /
Project Manager

The top structures are completed.

completion certificates issued.

Project Manager /
Contractor /
Architect

On completion of the construction of the

houses, occupation certificates are obtained
from the Municipality.

Contractor /
Architect /
Developer /
Municipality

Specific programme subsidies are approved.

Municipality /
PHD

Completed
Top Structure

60
Occupation
Certificates

61

62

63

64

30

Close-out
Phase

Beneficiaries
Subsidy Process
Subsidy
Application
approval

Allocation
of houses

Occupation
of houses
and title
deed
handover to
beneficiaries

Municipality allocates houses per beneficiary Municipality /

registration.
PHD
Occupation takes place and title deeds are
handed over

Conveyancer /
Municipality /
PHD

REFERENCE TABLE

Ref

Task or item

65

Handover of Project
66
Documented
proof of all the close-out
phases during project
life cycle

67

68

Prepare final
drawdown
Submit
drawdown
to MEC

69
Payout
Process

70

71

72

73

Responsibility

This phase comprises of the cumulative

finalisation of the different close-out phases
and ultimate completion of the project.

Project Manager /
Contractor /
PHD

Documented proof of all the close-out

phases during the project life cycle.

Project Manager

Compile all documentation required for the

final drawdown per housing programme.

Project Manager /
Developer

Submit final drawdown to MEC.

Developer /
Project Manager

Payment is made by the National

Government to the Provincial Government.
The Provincial Government then pays the
Municipality who pays the contractors.

NDoHS,
PHD,
Municipality &
Contractors

Community confirms the need for housing.

The need is identified and communicated to
the traditional council / Municipality.

Community /
NDoHS /
PHD /
Municipality

Municipality confirms project part of

Housing Chapter of IDP & funding
reservation is agreed with MEC

Municipality

Community applies to the Municipality to

appoint an implementing agent / supporting
organization

Community

PHD evaluates the application and submits

to MEC for approval

PHD

MEC approves the application

MEC

CLaRA Process
Community confirms the
need for housing - Need is
communicated to traditional
council / municipality
Municipality confirms project
part of Housing Chapter of
IDP and funding reservation
agreed with MEC
Community applies to the
municipality to appoint
implementing agent /
supporting organisation

74
PHD
evaluates
application and
submits to
MEC

75

Notes

Application
Approved

Housing Project Process Guide

31

REFERENCE TABLE

Ref
76

Task or item
Municipality secures
procurement of services
of implementing agent /
support organisation

77

Notes

Responsibility

Municipality secures payment of services

of implementing agent / supporting
organization

Municipality

PHD checks information and database

PHD

Implementing agent / supporting

organization prepares and submits project
application to MEC

Implementing Agent

PHD evaluates the project application and

submits to MEC

PHD

MEC approves the application

MEC

PHD record project on HSS and informs

Municipality of decision

PHD /
Municipality

Project agreement concluded

NDOH /
PHD /
Municipality

Registration of houses with NHBRC

commences

NDoHS /
PHD /
Municipality

Implementation of the project continues

NDoHS /
PHD /
Municipality

PHD checks
information and
tests against
database

78

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

79
PHD evaluates
project application
and if complaint with
policy prescripts
submit to MEC

80
MEC
approves project
application

81

82

83

84

32

PHD record project

on HSS and inform
municipality of decision
Project agreement
concluded
New constructed
houses registered
with NHBRC
Project implementation
continues

REFERENCE TABLE

Ref
85

Task or item
Payment of subsidies
in accordance with
milestones

86

Notes

Responsibility

Payment of subsidies in accordance with

milestones commences

NDoHS /
PHD /
Municipality

Project is completed

NDoHS /
PHD /
Municipality

Civil Engineering Services is now handed

over to the municipality.

NDoHS /
PHD /
Municipality

It is of utmost importance to ensure

that where contractors and/or other
professionals are used, that signed contracts
between the respective parties exist and be
kept on file.

NDoHS /
PHD /
Municipality

Project Completion

87

Services handed over to

municipality

88

Contractual Matters

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

No

Housing Process Guide

Total Completion

44

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

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

%
Complete

Days
Planned

Days
Completed

Days
Remaining

DEVELOPMENT CHECKLIST

No

Housing Process Guide

%
Complete

Days
Planned

Days
Completed

Days
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 APs)

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

No

Housing Process Guide

Total Completion

46

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 - Conveyancers 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

%
Complete

Days
Planned

Days
Completed

Days
Remaining

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
Designed by CPD Graphics Tel: +27 12 342 1978