The City of Cape Town’s Council has today, 29 April 2021, approved the public participation process for one of the City’s flagship social housing developments in the central Cape Town area, namely the proposed Newmarket Street project, with a desktop valuation of approximately R90 million. This is in line with the City’s commitment to enabling affordable housing with partners on suitable, well-located land across the metro.
- This is part of the City’s planned development of more than 2 000 affordable housing opportunities on well-located pieces of land in and near urban centres across the metro to enable greater spatial equality.
- The City continues to assess all suitable City-owned land across the metro for social housing development.
The public participation takes place within the prescripts of the Municipal Asset Transfer Regulations Act (2008) for the intended long-term rights to use, manage and control the property for social housing for a period of 30 years. The project is located just a short walk to the central Cape Town city centre.
In parallel to this, a rezoning process and associated public participation will be undertaken to give members of the public a chance to have their say on the proposed change of land use from it being zoned for transport use only to mixed use, comprising social housing, parking, among others.
Public participation for both processes will kick off from 7 May 2021 to 7 June 2021. More details will follow.
Our intention has always been to develop affordable housing opportunities in urban centres across the metro in an inclusive, fair and ordered manner. Social housing developments are truly complex and intricate with a host of legislative requirements to adhere to before development can take place. It takes hard work and dedication to see these projects through and we thank City staff and all our partners, as well as our communities and civic representatives, who are walking with us on the path to a more spatially integrated city, with greater access to affordable housing.
Other planned central and metro-wide projects are also progressing, such as the Pine Road and Dillon Lane, Salt River Market proposals and the development plan for the Woodstock Hospital.
The City remains utterly committed to enabling more affordable housing opportunities on suitable, well-located land across the metro through partnerships and innovation. We encourage and urge all communities, partners and groups to work with us so that we can make more progress over the year ahead and do what is in the best interest of our communities and residents.
Information about social housing
- 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.
For more information on the Woodstock Hospital site, please visit: https://www.capetown.gov.za/Media-and-news/Woodstock%20Hospital%20One%20step%20closer%20to%20social%20housing%20as%20High%20Court%20orders%20survey