The City of Cape Town is moving ahead with its plans for affordable social housing in the Cape Town city centre, but also on other well-located sites across the metro.
There are several City-driven projects in the central Cape Town area with major milestones expected to be achieved in the near future. These projects are 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 current status of these projects are as follows:
- Pine Road: In the final stages of preparing the site for construction. If all goes according to plan, the intention is to conclude building plan approval, contractor procurement and funding arrangements within the next six months.
- Dillon Lane: Report on the rezoning application will serve at the Municipal Planning Tribunal in May 2021. The timelines for getting approval of the proposed rights can be a minimum of three months, but will depend on the outcome of the MPT meeting and whether appeals are received. Construction is anticipated to commence within a year after approval of the rezoning application to allow for design development, procurement of contractors and funding approvals.
- Salt River Market: The final Council authorisation for the last land disposal is anticipated for end 2021. Thereafter, further design development will have to be undertaken to prepare the site for development.
- Newmarket Street: The City has appointed a team of consultants to undertake a rezoning application on its behalf to obtain the necessary rights for the planned social housing development. It is anticipated that this rezoning process will be concluded by end 2022. Construction is anticipated to commence within a year after approval of the rezoning application to allow for design development, procurement of contractors and funding approvals.
‘There is sometimes a perception that if there is no construction on a site, nothing is being done. This could not be further from the truth. Due processes are being followed and much planning and development management processes are under way, which form integral parts of ensuring that these complex social and affordable housing projects are realised.
‘Just last week, the City approved the public participation process for the land disposal on one of its flagship social housing developments in the central Cape Town area. The proposed Newmarket Street project is in line with the City’s commitment to enabling affordable housing with partners on suitable, well-located land across the metro. The project is located within walking distance of the city centre, making it easily accessible to any number of amenities including healthcare facilities and public transport.
‘Social housing developments are intricate, with a host of legislative requirements to adhere to before development can begin. 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 working with us to see the goal of a more spatially integrated city, with greater access to affordable housing, become a reality,’ said the City’s Mayoral Committee Member for Human Settlements, Councillor Malusi Booi.
Facts 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.
Public participation on the Newmarket Street project will kick off from 7 May 2021 to 7 June 2021. More details will follow in due course.