The budget provides for allocations for the Human Settlements Development Grant (HSDG) of R16.984 billion in 2013/14, R17.918 billion in 2014/15 and R19.667 billion in the 2015/16 financial year. The purpose of the HSDG is to provide funding for the creation of sustainable human settlements. The human settlements function will be assigned to six metropolitan municipalities subject to the said municipalities obtaining level 3 accreditation. The funds will still be reflected in the allocations of provinces pending the assignment of function to the metros. The Department outlined a number of challenges in implementation of the HSDG and these include lack of bulk and link infrastructure, lack of technical capacity and overall poor planning. Interventions aimed at addressing some of the challenges included the undertaking mid-term reviews with provinces and municipalities on performance, spending and planning for 2013/14. The budget provides for allocations for the Urban Settlements Development Grant (USDG) of R9.077 billion in 2013/14, R10.334 billion in 2014/15 and R10.670 billion in the 2015/16 financial year. The USDG is aimed at assisting metropolitan municipalities improve urban land production focusing on poor households so as to improve spatial integration and densities. The grant supplements capital revenues of metropolitan municipalities in order to support human settlements development programmes. The Department has prioritised a number of interventions aimed at accelerating implementation of the grant and these include addressing capacity constraints through the Cities Support Programme and strengthening monitoring and evaluation mechanisms.