Workshop: Need for Financial Models Project Roll our over 3 Years

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Sherman Stone
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1 MoA and Terms of Reference between NDoHS and the Sustainability Institute Programme Launch in Port Elizabeth in Feb 09 Research Investigations Site visits to national Priority or BNG related projects in the 9 provinces. BNG Principles Safe secure environments; Access to economic opportunities and public transport; Variety of housing typologies and tenure types; Reliable and affordable basic services; Access to social services; In balance with natural systems (recycling wastes; water efficiency and recycling) Green and open space, planning for agriculture Local use of local labour and resources Workshop: Need for Financial Models Project Roll our over 3 Years

2 Relocation of families in the Chatty River flood plain in Soweto and Veeplaas,

3 Formalised partnerships between the 3 spheres of Govt, the NHBRC and the HDA. Continuous Technical Task Team coordination Project Steering Committee (meets once a month) 3 spheres of government, local ward councillors & the HDA Community Participation Manager Integrated Development Champion

3767 units have built, and the project aims to build 14,401.

4 3767 units have built, and the project aims to build 14, m 2, 40m 2, 42m 2, double and triple storey housing typologies Various tenure options including rental stock Solar water heaters planned Social services planned The need for broader financial modelling: with appropriate financial modelling this project can receive a lot more support

5 Gauteng: Pennyville in JHB

6 Draft Sustainable Settlement Plan Created Wide choice of housing and tenure options & housing typologies fully subsidised RDP units 600 affordable rental units (non- qualifiers) 200 social housing units 800 middle-high income rental units owned by financial institution 36m 2, 40m 2,42m 2, double and triple storey houses Partnership with ABSA Zamimpilo Development forum - 8 democratically elected representatives - Regular meetings 2 community liaison officers appointed - Assisted in capturing details for subsidy applications

Facilities Crèche donated by developer and ABSA group Satellite library services Clinic under construction 300 trees planted by City Parks Other

7 Facilities Crèche donated by developer and ABSA group Satellite library services Clinic under construction 300 trees planted by City Parks Other land uses to be developed Petrol station Businesses 2 crèches School Local labour and skills transfer programmes Formal Monitoring and Evaluation Systems

8 8,587 subsidized houses: 36m² and 40m² free standing houses, 40m² semi- detached units, 44.7m² and 47m² row houses 3,884 affordable housing units 3,244 bonded housing units.

9 Principle 01 - Making Connections: accessibility and integration of spaces. Principle 02 - Balanced Movement: pedestrianisation, cycling and publc transport Principle 03 - Places for People: safe, comfortable, attractive environment. Principle 04 - Mixed Uses and Forms: variety of building forms, tenure options and densities Principle 05 - Work With the Landscape: utilise the site s intrinsic, contextual resources - the climate, landform, landscape and ecology - to maximise energy conservation and amenities. Principle 06 - Community Life: commercial, educational, health, spiritual and civic centres Principle 07 Densities: higher density levels to support urban services Principle 08 - Informal / Formal Trading: commercial, retail and public spaces Principle 09 - Parks and Squares: via the Tshwane Open Space Framework Principle 10 - Manage the Investment: Balance between the market considerations of communities, developers and the long term commitment of the local authority

BEE construction companies Local employment minimum 75 % Target women, youth, disabled On-the job training Accredited training Solar water heaters

10 BEE construction companies Local employment minimum 75 % Target women, youth, disabled On-the job training Accredited training Solar water heaters Traffic lights and street lights converted to solar power Water heating to solar power Maintenance regime of the electricity infrastructure Ceilings

11 Less than 1 kilometer from Mokopane North orientation, overhangs, ceilings and insulation will be included in the next phase development. Collaborative government responses: task teams Community involvement in development design and even in their IDP development PPP with Standard Bank: plans for a mix of RDP/GAP/Affordable Strong expression of need for financial models Standard Bank

13 Lynedoch Ecovillage Phase 1 Guest House Main Building

Village green with indigenous plants; Located within walking distance of train station Secures spaces for children and

14 A primary school for 450 farm worker children; A pre-school and ECD center; A large multi-purpose hall Offices and classrooms for the Sustainability Institute Guest House for visiting lecturers/students RDP and middle income housing Village green with indigenous plants; Located within walking distance of train station Secures spaces for children and pedestrians. Ecologically designed built environment Alternate, onsite infrastructural systems Alternate institutional and financial mechanisms

18 Mini wind, PV and Carbon Membrane Filtration System

20 Onsite Sanitation Systems: Biolytix

24 North facing, 60% less electricity, 45% less water, no sewage leaves the site, reduced/zero solid waste, walking distance to public transport (rail), minimal cement (less CO2), 25% of normal monthly CO2 release Lynedoch House

25 Cape Town Lynedoch Solid waste 2,5kg/p/day Near zero waste Water: 150 l/p/day 75 l/p/day Sewerage 65/p/day All sewage re-used Grid Electricity 774KWh/HH/mo 250 KWh/HH/mo CO2 750 Kgs/HH/mo 225 Kgs/HH/mo Transport Oil-based/private Train Construction Materials Fired brick/cement block Local/adobe /low cement Food Non-local/packaged Certified organic farm/mainly unpackaged

26 Banks willing to assist ABSA, Standard Bank Financial models need to incorporate more than profits Sustainability Criterion in financial modelling increases developments fundability

27 Financial Modelling: Standard Bank Inputs Base Development Costs - Scenario 1 Cost Source of Funding RDP GAP GAP1 GAP2 MID Land Cost/Unit R 6, Dept of Human Settlements Top Structure Cost/Unit - RDP R 45, Dept of Human Settlements Civil Services Infrastructure R Municipality Electrical Infrastructure R 2, Municipality Land Cost/Unit R 7, Dept of Human Settlements Top Structure Cost/Unit - RDP R 75, Dept of Human Settlements Civil Services Infrastructure R Municipality Electrical Infrastructure R 2, Municipality Land Cost/Unit R - Top Structure Cost/Unit - RDP R - Civil Services Infrastructure R - Electrical Infrastructure R - Land Cost/Unit R - Top Structure Cost/Unit - RDP R - Civil Services Infrastructure R - Electrical Infrastructure R - Land Cost/Unit R 9, Dept of Human Settlements Top Structure Cost/Unit - RDP R 110, Dept of Human Settlements Civil Services Infrastructure R Municipality Electrical Infrastructure R 2, Municipality INPUT SCREEN: DEVELOPMENT COSTS Development costs and funding sources for RDP, GAP and middle income There is a similar screen for Scenario 2 that is being compared against this scenario There is a similar screen for inputting the Operating expenses for electricity, water, etc.

Financial Modelling Cont d INPUT SCREEN: TECHNOLOGICAL INTERVENTIONS: Allows comparison of RDP, GAP and Middle Income housing with up to five typologies User

28 Financial Modelling Cont d INPUT SCREEN: TECHNOLOGICAL INTERVENTIONS: Allows comparison of RDP, GAP and Middle Income housing with up to five typologies User selects which sustainable interventions will be used in each of the scenarios being compared. Any scenario (RDP or GAP or mid) can be selected as a stand alone option

We will list the most common and allow developers to add in additional possibilities -Users of the

29 Financial Modelling Cont d Funding and Costs: -In this section you can define a list of potential funding sources. We will list the most common and allow developers to add in additional possibilities -Users of the calculator can edit the cost assumptions to adjust to their local situation. For example, there may be a local supplier of solar water geysers that is cheaper so the cost can be adjusted

30 Financial Modelling Cont d Total Cost Effectiveness Comparison CO2 Emissions R 600, Solar Water Heaters R 500, CFL Lights R 400, R 300, R 200, R 100, Conventional Sustainable North-facing Orientation Ceilings Larger overhangs on north side Solar Roof Tiles R Output Screens: Additional graphs will be created for electricity usage, water usage, sewage outflows, etc. Future expansion of the analysis could also allow a household affordability index to be built in. This would demonstrate the impact on the recipient household s finances and alert stakeholders to future affordability problems, e.g. If too much of income goes to electricity and water costs the city may end up with bad debts

31 Lynedoch Results R 800, Graph 1: Total Cost Effectiveness Comparison Power Use Savings Other Savings (Annual) 56,592 KWH R 700, R 600, CO2 Emission Reduction 67,910 Kg CO2 R 500, R 400, Sustainable Water Use Reduction 972,000 litres R 300, R 200, Conventional Sewage Outflow Reduction 842,400 litres R 100, R Output Screens: Hhld Utility Expense Savings R3960 per month Household affordability index could also be built in. This would model the recipient household s ability to pay debt, e.g. If too much of income goes to electricity and water costs the city may end up with bad debts

32 In the attempt to create integrated, sustainable human settlements, what are we actually trying to achieve? Economic viability Ecological sustainability Societal equity and empowerment LIVES THAT ARE CHANGED

33 A socio-economic household survey was performed. Statistics SA assisted the process by compiling and providing a listing of properties in the area Survey results were categorized by community priority. Task teams were established with other departments including education, public works, sports and culture in order to mobilize these departments into a common framework for action and response.

34 Phase 1: 1,241 bonded, middle income houses, 3 commercial sites, 7 public open spaces, 2 municipal sites, 3 schools and 3 places of worship. Phase 2: 2,831 low income houses right across the road.

35 Grassland 1 complaints about house break-in their respective houses: suspected culprits from Grassland 2 One of the original squatters, a Grassland 2 entrepreneur and spaza shop owner, decided to start a soccer club for Grassland 1 & 2 youth The residents from Grassland 1 & 2 got to know each other through soccer, Grassland 1 residents fears were alleviate and they even began to employ Grassland 2 residents The spaza shop owner ended up as Ward councillor for both communities

36 Centre for at risk children Beadwork Project Sewing Project Knitting Project Vegetable Garden

37 Training for Communities Outcomes based materials and learning tools will be developed at levels 1-4 for communities A basket of modules will be developed for communities to choose from Manuals and Facilitators Guides will be developed for each module Trainees will be moderated and assessed for accreditation

38 Lisa Thompson-Smeddle Programme Coordinator Sustainable Neighbourhoods & Settlements Sustainability Institute Lynedoch Ecovillage Tel: Cell:

U R B A N D E S I G N S E R V I C E S

P.O. Box 3209, Houghton, 2041 Block A, Riviera Office Park, 6-10 Riviera Road, Riviera U R B A N D E S I G N S E R V I C E S RFP/FS/023 PROPOSALS TO BE SUBMITTED BY NOT LATER THAN 20 MARCH 2015 AT 12H00