Chairperson, hon members, the vision of Human Settlements 2030 is accelerating the development of sustainable human settlements for all South Africans, based on the provisions of the Constitution. It is about laying a solid legal architecture which gives legislative meaning to guide the delivery of integrated human settlements. It is also about enhancing social justice through the deracialisation of the residential market.
Our mission is four-pronged: Firstly, there is the upgrading of informal settlements, as we know. Secondly, there is the provision of grants for low- cost housing. Thirdly, there is the provision of guarantees to the banks lending in the gap market - the R1 billion announced here by the President as well as the Minister of Finance. Lastly, there is the regulation of activities of the financial institutions with respect to their lending practices.
In our 2009 Budget Vote, we made the following commitment regarding our legislative programme. In order to accelerate the achievement of ideal human settlements for our people, the department is planning to table several pieces of legislation in this Parliament for consideration. A fair amount of work, research, and consultation, and a fair number of site visits and deliberations have since taken place.
Therefore, the objective of today's exercise is to table two Bills in this House for consideration and passing, namely the Sectional Titles Schemes Management Bill and the Community Schemes Ombud Service Bill. We are tabling these Bills simultaneously, hon members, due to the complementary nature of the two pieces, which otherwise could have created an administrative logjam, or what they call in legal parlance a legal lacuna.
It is our expectation that the passing of the two Bills will facilitate the realisation of the broader goal of enhancing social justice through the creation of a cohesive and integrated society. The Bills will also contribute to good governance and improved administration of sectional titles and community schemes.
The objective of these Bills is to enhance legal protection for those who live in community housing schemes such as high-rise flats, inner-city buildings, townhouse complexes or built-up estates - as many of you live in those places. These include properties controlled by entities such as sectional titles schemes, share block companies, homeowners' associations, otherwise known as gated villages, and housing schemes for retired persons. More and more South Africans are beginning to look for shelter in these areas, particularly our young people, many of whom have just left a tertiary institution or are starting their first jobs.
The Bills will also minimise the negative actions of some corporate bodies in these settlements, which may want to ride roughshod over individual members. The Sectional Titles Schemes Management Bill provides for the establishment of body corporates to manage, as well as regulate, common property in sectional titles schemes. For effective and efficient implementation of the legislation, provision is made for the establishment of a Sectional Titles Schemes Management Advisory Council to advise the Minister, that is, me.
The second Bill, the Community Schemes Ombud Service Bill, establishes a Community Schemes Ombud Service as a public entity with executive authority vested with the Minister to resolve disputes emanating from community schemes. There is a booming or ever-increasing proportion of human settlements which are being developed in the form of these community schemes, within which there is governance by the community involved. There is also shared financial responsibility, as well as common land and facility utilisation.
Quite often the cordial relations amongst members of these bodies, as you may know, will deteriorate, giving rise to problems and disputes among participants because they involve control and administration of finances or facilities and behaviour, which require effective resolution. Currently, there is no effective and affordable dispute resolution mechanism available to parties involved in community schemes. The Community Schemes Ombud Service is aimed at addressing this particular weakness.
In his state of the nation address, the President called for us to make 2011 a year of job creation. As more people get jobs, this unlocks housing opportunities for those who are migrating from slums to proper housing, including inner city housing. In line with our new mandate and our goal of deracialising the residential market, Cabinet decided to bring all human settlements-related legislation under one roof, that is, the Department of Human Settlements.
In the same vein, the Cabinet has established an interministerial committee led by the Department of Human Settlements to look into the Estate Agents Act, which is still located in the Department of Trade and Industry where we have additionally, above and beyond residences, industrial as well as commercial space.
Our expanded mandate of human settlements requires a holistic approach to the creation of cohesive and integrated communities. The promotion and development of sectional titles as a tenure option will invariably assist towards the realisation of this goal. The transfer and bond values captured by the Deeds Office highlight the significant role that these sectional titles schemes play in the creation of sustainable human settlements.
The two pieces of legislation before you, members, are located in a market that is huge in monetary terms. For example, in 1999 in this property market the transfer value was around R2,7 billion and the bond value was around R6,2 billion. In 2009, 10 years later, the transfer value rose to R53 billion and the bond value to a phenomenal R1,5 trillion.
Both Bills we are tabling today will assist the Department of Human Settlements in creating cohesive and integrated communities. They will facilitate transformation of the community schemes environment. In particular, the Sectional Titles Schemes Management Bill will have a significant catalytic effect on the property market, job creation and, thus, on the economy at large.
Our challenge is to inject life into the Act to make it effective and functional. There is absolutely no value in leaving the Act and putting it on the shelf. People do not necessarily remember when Parliament passes Acts. What matters is how the passing of an Act will improve their lives. Of course, that will require serious commitment on our part, as the executive, as well as ongoing oversight by the portfolio committee.
Therefore, the passing of these Bills, which are located in Human Settlements 2030, creates a mechanism that provides concrete hope for many South Africans, many of whom will be first-time owners. These are their instruments for the future. I thank you. [Applause.]