The MEC made a presentation to the delegation on the following: . The national Department of Human Settlements did not allocate funding for rural housing development. . The province had restructured the awarding of contracts to a maximum of four contracts per developer. This was necessitated by past experience where contractors would be awarded up to 16 contracts. Contractors subsequently issued sub-contracts, which compromised the delivery of quality houses. . The province was committed to rural development and would allocate about 60% of its budget in favour of rural communities. However, water remained a challenge. Each rural house constructed would be fitted with a Jojo tank to harvest water. . Rural land was largely administered by the Ingonyama Trust, while urban land was privately owned. The province was engaging with the Ingonyama Trust, which had yielded positive results to date. . The allocation of disaster funding was discontinued, and future disaster projects would be included in the conditional grant. . Beneficiaries living in CRUs could only afford rental of R20 per month, since most residents are elderly and vulnerable. . The province has since May 2009 not approved any projects not registered with the National Home Builders Registration Council (NHBRC). The lack of skilled personnel was hindering the delivery progress. Most senior members of staff were in acting positions, like the Chief Financial Officer, however, department was undertaking a process of developing a retention strategy and appoint permanent staff in strategic positions. . Social housing showed good quality housing projects, but the challenge remained the collection of rent. . The R1 million guarantee fund was not yielding results due to the failure of banks to co-operate. . The province proposed that military veterans use the People's Housing Process (PHP) model to construct their houses. To date, 5 000 serviced sites have been allocated in this regard. . A successful CRU project was located in uMhlatuze.