SOCIAL HOUSING REGULATORY

AUTHORITY
TURNAROUND STRATEGY

Presentation to the
Portfolio Committee
on
21 February 2017
 Executive Summary
• Organisation Development project initiated in June 2016, consists of
the following:
– Updating strategy
– Restructuring the programmes
– Restructuring the entity
– Recruitment
– Enhance performance of staff
– Develop policies for all areas, develop standard operating procedures
– Develop tools the staff need to perform
– Develop tools to assist grant applicants and accreditation applicants
– Enhance ICT to automate systems and leverage ICT innovations to
enhance productivity
– Rebranding the entity to enhance reputation
– Create positive culture

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 Turnaround Strategy

Organisation Development

• SHRA initiated an Organisation

Development Project in June 2016
• The interventions to be conducted in
two phases:
– Phase 1: Strategy and structure
– Phase 2: Operations, culture and
systems

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 Turnaround Strategy

The following items have been concluded in Phase 1:

• Strategic Plan updated
• APP 2017/18
• Strategic HR Plan developed
• Updated HR policies
• Revised programme structure to enable
delivery
• New structure implemented (approved by
Minister on 6 December)

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SHRA’s New Structure

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Differences between Previous and New Structure
Previous Structure
3 Executives reporting to CEO
Headcount of 44
Hierarchical structure (several layers on
management)
Regulations and Investment Programme
managed by 1 Executive under 1 unit
Investment team consists of managers that
accept projects onto the SHRA’s pipeline,
award grants and manage grants
Capacitation Manager responsible for
policy, research, stakeholder liaison and
capacitation (capacitation grant award)
New Structure
4 Executives reporting to CEO
Headcount of 44
Flatter structure
Regulations and Investment have been
separated, managed by 2 Executives and
within separate units
Investment team consists of portfolio
managers with regional performance
targets based on delivery requirements
Grant award is managed independently of
this team
Sector Development Executive responsible
for sector empowerment and
transformation
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 Next Steps in the Turnaround Strategy

Organisation Development
• Recruitment drive has Phase 2: Operations, culture
and systems has been
commenced with adverts initiated that will consist of:
placed on SHRA’s
• Phase 2 commences in
website and two national
February and expected to
newspapers close 17 Feb
be completed in its entirety
by March 2018
• Revised policies
• Development of Standard
Operating Procedures
• ICT infrastructure and
systems
• Culture change intervention
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 Projects to be undertaken in Phase 2

1. Operational frameworks and

methodologies
• Revision of policies and development of standard
operating procedures across all programmes of
the entity
• Revisions required in order to align entity’s
operating framework to the strategy, revised
programme structure and organisational structure
of the organisation i.e. enabling delivery,
enhancing transformation and empowerment
• Intervention designed to standardise operations in
order to enable performance

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 Projects to be undertaken in Phase 2

2. Information Communication
Technology (ICT)
• Develop an ICT strategy to automate
processes thus enhancing performance,
security and safekeeping of records
• Online portals to enable easier
applications for accreditation and grants
• Enhance ICT governance

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 Projects to be undertaken in Phase 2

3. Monitoring and Evaluation (M&E)

• Develop an M&E framework (policy and
procedures) in order to assist the entity to
monitor and evaluate performance,
outcomes and impact
• Enhance use of data collected and derive
more insight from the data that SHRA
generates

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 Projects to be undertaken in Phase 2

4. Updating of sector development

toolkits
• Toolkits for SHIs in terms of how to start
and operate an SHI as well as how to
package a project were developed over 10
years ago and are therefore outdated
• These are to be updated as they are an
important resource for SHIs and other
delivery agents

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 Projects to be undertaken in Phase 2

5. Rebranding the entity

• Redesign of SHRA’s logo and possibly
look at name change
• Important to enhance reputation of entity
• To make the SHRA more accessible and
easier to understand what the SHRA does
• Improve staff moral and enhance
performance
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 Projects to be undertaken in Phase 2

6. Culture Change Intervention

• Human Resource intervention looking at
creating a values framework for the entity
• Developing a positive work culture
• Create staff body that lives and breathes
values of the entity
• Enhance performance

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 Projects to be undertaken in Phase 2

7. Recruitment Agencies
• Appointment of recruitment agencies to
assist the SHRA source well qualified staff
in the shortest possible timeframes

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 Pipeline of Projects
• Total of 25,158 units (54 projects) on the
pipeline that have been pre-assessed
• A further 17 projects are in the process of
being pre-assessed

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 Enabling Factors to Support Delivery
• Additional Restructuring Zones approved
by MINMEC
• Awaiting approval to the revised funding
structure as per the SHRA Council
resolution on 1 December 2016.
• However, for the time being a further 12 of
the pipeline projects will be considered for
RCG award at the TEC in mid February

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Project Packaging of pipeline applications
• SHRA receives projects throughout the year directly
from SHI’s and ODA;
• Applicants old/new communicate the project to the
SHRA and are advised to present the project to the
Provincial Steering Committee (PSC).
• Application tools for the Financial Year are distributed
to the PSC and can also be obtained through the
SHRA to guide packaging of the projects.
• Packaged projects are received through the SHRA
physically or electronically through the
investment@shra.org.za
• The files are acknowledges and recorded in the
pipeline template for tracking purposes and are
distributed to the pipeline team.

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 Pipeline Pre-assessment

• The projects are assessed for compliance

with the minimum investment Criteria see
Regulation 18
• The projects are also assessed for
readiness and are categorised according
to priority on the basis of readiness
ranging from medium to low.

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Restructuring Capital Grant Award Process

• Projects packaging (Capacitation)

• Pipeline Pre-Assessment
• Assessment of the Projects (Evaluation)
• Technical Evaluation Committee
(Adjudication)
• Investment Committee
• Council (Award)

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 Summary of Pipeline
• Total of 26,139 units (54 projects) on the pipeline that
have been pre-assessed
• 1 additional project has been withdrawn until change in
funding structure
• A further 17 projects are in the process of being pre-
assessed
Province No. of projects No. of units
Eastern Cape 2 981
Gauteng 44 23,572
KZN 1 118
Limpopo 1 190
Mpumalanga 6 1278
TOTAL 54 26,139

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 Eastern Cape

TOTAL
NUMBER DEVELOPMENT PRIORITY
No PROJECT PROVINCE
OF UNITS COST OF STATUS
PROJECT

Florida Heights
741 Eastern Cape R 251 964 453 LOW
Integrated Housing
1

Sunnyside 240 Eastern Cape TBC HIGH

2
981

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 Gauteng
TOTAL
NUMBER DEVELOPMENT
No PROJECT PROVINCE PRIORITY STATUS
OF UNITS COST OF
PROJECT
3 Jeppe Street Building 355 Gauteng R 76 447 823 MEDIUM
4 Helen Joseph Building 145 Gauteng R 34 498 567 MEDIUM
5 Cape Agulhas Building 241 Gauteng R 57 551 739 MEDIUM
6 Sterling Court Erf 571 129 Gauteng R 33 392 601 MEDIUM
Sunnyside Social Housing
264 Gauteng R 188 648 591 MEDIUM
7 Project
8 Townlands Social Housing 1200 Gauteng R 474 871 184 HIGH
Chantelle Social Housing
1079 Gauteng R 363 900 655 LOW
9 Developemnt
Timberland Social Housing
574 Gauteng R 236 721 292 LOW
10 Project
11 Pooks Hill 1200 Gauteng R371,762,013 LOW
12 Germiston x 4 201 Gauteng HIGH
13 Cullinan not stated Gauteng LOW
14 Ga-Rankuwa 1040 Gauteng R460,379,877 LOW
15 Alra Park Ext 5&6 547 Gauteng LOW

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 Gauteng
TOTAL
NUMBER
DEVELOPMENT
No PROJECT OF PROVINCE PRIORITY STATUS
COST OF
UNITS
PROJECT
Building Flats (Buitekant Str)
20 Gauteng MEDIUM
16 - 1 x name to be provided
17 Traveline Flats 10 Gauteng HIGH
Klubsig or City Re-
Development (one name to 16 Gauteng HIGH
18 be confirmed)
19 Driehoek 398 Gauteng R110,959,406 HIGH
20 Lenz or Lens ? 927 Gauteng R352,950,660 LOW
21 Lesedi Heights 348 Gauteng MEDIUM
22 Mogale Junction 1590 Gauteng R579,885,260.20 MEDIUM
23 Mogale City Ext 10 1131 Gauteng LOW
24 Varkenslaagte 1400 Gauteng R481,562,297 LOW
25 Zandspruit 1000 Gauteng R364,179,209 LOW
26 Goudrand 1000 Gauteng R364,179,209 LOW
27 Wolmarans Residential 40 Gauteng HIGH
28 Durban Heights 117 Gauteng HIGH

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 Gauteng
TOTAL
NUMBER OF DEVELOPMENT
No PROJECT PROVINCE PRIORITY STATUS
UNITS COST OF
PROJECT
29 Jeppe Mews 90 Gauteng R31,426,181 HIGH
30 Pomegranate 117 Gauteng HIGH
31 Dhlamini Ext 3 356 Gauteng R141,990,014 HIGH
32 Turffontein Gardens 554 Gauteng R211,757,436 HIGH
33 Turffontein Gardens 554 Gauteng R211,757,436 HIGH
34 The Orchards 1056 Gauteng MEDIUM
35 Lufhereng 418 Gauteng MEDIUM
36 Upstream 368 Gauteng HIGH
37 301 Marshal 40 Gauteng R14,250,000 HIGH
38 Naledi 350 Gauteng LOW
39 Betty Street 198 Gauteng HIGH
40 Soweto City Social Housing 2500 Gauteng R998,281,940 HIGH
41 Lombardy East Housing 514 Gauteng R211,675,224 HIGH
42 Roslin Park 308 Gauteng R93,705,268 LOW
43 Consolidated Building 153 Gauteng R50,186,471 HIGH
44 Cloverdene - 376 HIGH
23572

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 KZN

TOTAL
NUMBER DEVELOPMENT
No PROJECT PROVINCE PRIORITY STATUS
OF UNITS COST OF
PROJECT
65 Maud Mfusi Street
118 Kwa-Zulu Natal R32,939,856 LOW
45 "Hometown"

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 Limpopo

TOTAL
NUMBER DEVELOPMENT
No PROJECT PROVINCE PRIORITY STATUS
OF UNITS COST OF
PROJECT
?? Project Name is
190 Limpopo TBC LOW
48 Unknown

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 Mpumalanga
TOTAL
NUMBER DEVELOPMENT
No PROJECT PROVINCE PRIORITY STATUS
OF UNITS COST OF
PROJECT
46 Palm Islands 186 Mpumalanga R 41 818 081 LOW
47 Allenby Street 30 Mpumalanga R13,729,207 MEDIUM
48 Eric Liberty 102 Mpumalanga R39,419,694 MEDIUM
49 Beatty Avenue 36 Mpumalanga R14,559,849 MEDIUM
50 Spring Valley X17 324 Mpumalanga R140,196,037 HIGH
51 Selection Park 600 Mpumalanga R205,071,773 LOW
1278

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 Western Cape
• In addition to the existing pipeline, Western Cape have developed a
pipeline which has not formally been added onto the National Social
Housing Pipeline as it has been developed based on a revision to
the funding structure.
• Should the revised funding structure be approved, the Western
Cape can provide the following:

Financial Year Potential No. of Units

2017 / 2018 144

2018 / 2019 923
2019 / 2020 3 591
2020 / 2021 4 129
2021 / 2022 3 778
2022 / 2023 3 124
2023 / 2024 2 295
2024 / 2025 1 750
2025 / 2026 2 240
2026 / 2027 2 244
2027 / 2028 600
2028 / 2029 0
2029 / 2030 0
TOTAL UNITS 24 818
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 Enabling Factors to Support Delivery
• Additional Restructuring Zones approved by
MINMEC
• Awaiting MINMEC approval of the Indexed Income
Bands possible from (R1500- R7500) to (R1500-
R15000)
• Awaiting MINMEC approval to the revised funding
structure as per the SHRA Council resolution on 1
December 2016.
• However, for the time being a further 14 of the
pipeline projects will be considered for RCG award
at the TEC in mid February, these are as follows:

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Social Housing Projects to be tabled at TEC
The projects listed below are those that will serve at the next TEC in mid February:

SHIP 7D Projects
# Institution Project # of Units Province Municipality RZ
1 HEAL Belgravia Phase 2 372 Eastern Cape Buffalo City Yes
2 HCT Townlands 433 Gauteng Tshwane Yes

3 Kenso Hillside View 1200 Free State Mangaung No

4 Nomda Germiston x4 201 Gauteng Ekurhuleni Yes
5 EDC Driehoek 398 Gauteng Ekurhuleni Yes
6 JOSHCO Turfontein 528 Gauteng Johannesburg Yes
7 TBGI Soweto 2500 Gauteng Johannesburg Yes
8 Vendiq Consolidated Building 151 Gauteng Johannesburg Yes
9 Arrow Creek Mogale Junction 1590 Gauteng Mogale City Yes
10 EMHC Spring Valley X 17 324 Mpumalanga Steve Tshwete Yes
11 EMHC Beaty Street 36 Mpumalanga Steve Tshwete Yes
12 EMHC Allenby Street 30 Mpumalanga Steve Tshwete Yes
13 Urban Scape Upstream Development 368 Gauteng Johannesburg Yes
14 Urban Scape 301 Marshal Town 40 Gauteng Johannesburg Yes

8171

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 Conclusion
• That the Portfolio Committee note the
progress made on the SHRA operational
turnaround strategy implementation
• The Portfolio Committee note the progress
made in the Capital Programme for Social
and Affordable Housing.

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