On Monday, 15 March 2021, the City of Cape Town’s Mayoral Committee Member for Human Settlements, Councillor Malusi Booi, visited the Bothasig Gardens Phase 2 social housing project to check on its progress. This phase of the project is expected to be completed this year and will provide social housing opportunities to 314 qualifying beneficiaries and their families.
The first phase of the project has been completed and provided 120 social housing opportunities. Construction on the second phase of the project started in November 2019 and the project is expected to be completed in mid-2021, if all goes according to plan.
Great progress in a year
‘I last visited this project exactly a year ago and the progress is truly remarkable. During a year in which construction had to come to a halt for many months due to Covid-19 lockdown regulations, excellent progress has been made.
‘This project’s proximity to Century City as well as the Cape Town city centre is an indication of the City’s commitment to affordable housing on suitable land in and near urban centres. We are closer to seeing this project become a reality and for our qualifying beneficiaries to move into their new homes. It is also a good example of how we must build and expand on partnerships to tackle the demand for more affordable housing in Cape Town, and other parts of the country.
Partnerships to tackle housing need
‘We are aware of the acute housing need that exists across the metro and the impact that housing can have on the lives of our residents. The City is committed to service delivery through the provision of several different types of opportunities, including affordable rental housing such as this project provides. We are going to have to explore all options if we are to cater to the growing accommodation need in our city. We encourage all relevant private sector players to partner with us and to support us to make Cape Town a greater and more resilient city. Thank you to all our existing partners and I hope we can continue on this path of collaboration,’ said Councillor Booi.
Funding
The Social Housing Regulatory Authority’s social housing grant for this project is more than R85 million and social housing institution Communicare contributed equity of more than R46 million while the City contributed land and bulk services at a cost of about R20 million.
The selection of beneficiaries for all City housing projects, including social housing, is done in accordance with the City’s Allocation Policy and Housing Needs Register.
Information about social housing:
- Social housing offers affordable rental units for families with a combined monthly income of between R1 501 and R15 000.
- It is situated in well-located areas on suitable land constructed and managed by the City’s social housing partners or social housing institutions.
- It is managed by accredited social housing institutions (SHIs).
- SHIs are solely dependent on rental income. They receive no operational grants. They are able to service their debt finance through rental income.
- As with any rental contract, tenants formally enter into lease agreements. The landlord is the SHI.
- If tenants do not adhere to their lease agreements, the responsible SHI will follow the necessary legal process. Tenants must therefore pay to stay as the rental money is used for the day-to-day operation and upkeep of the complex.
- The City has nothing to do with the day-to-day management of SHIs, the rental amount or evictions for not paying.
- Before potential beneficiaries can apply for social housing, they are required to register on the City’s Housing Needs Register.
- Projects are developed on well-located, accessible land in and near urban centres.
- It is not low-income subsidised government housing, such as Breaking New Ground (or the commonly called RDP housing and it is not City Council Rental Units).
- It is managed with 24-hour security and access control.
- The City may sell City-owned land at a discounted price for social housing developments to make projects economically viable.
- Social housing offers improved access to social facilities and other amenities.
- A single grant subsidy can benefit on average five households versus one household for Council rental units.
- Social housing adds value to vacant pieces of land.
- Social housing has the potential to improve property prices in an area.
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