The City’s Mayoral Committee Member for Human Settlements, Councillor Malusi Booi, together with representatives from the Social Housing Company (SOHCO), Ward Councillor, Dave Bryant, and other dignitaries today, 4 November 2019, took a walk on the site in Pine Road, Woodstock which is earmarked for a social housing development. It is expected to become a flagship social housing partnership project for the City.

On 31 October 2019 Council approved the sale of land in Pine Road and Dillon Lane in Woodstock for the development of social housing rental units. The deeds of sale for the Pine Road and Dillon Lane sites are expected to be concluded at the end of November 2019, if all goes according to plan.

‘We are visiting the site today to show Cape Town how strongly we believe in the social housing model and ask all in Cape Town to help us to reimagine the future Cape Town that we want: one where people live closer to where they work and to where the opportunities are and where apartheid’s enduring grip on the spatial patterns of our cities can be increasingly loosened going forward.

‘It is not an easy task and it will not happen overnight, but we will continue to assess City-owned land, including suitable land in and near the Cape Town CBD and other urban centres to determine whether some of these properties could be developed for housing opportunities. Currently, the sites have been secured and fenced. It is incredibly important that our earmarked sites are not invaded as the illegal occupation of land and of buildings is a risk to all of our plans and programmes,’ said Councillor Booi.

The two parcels of land, which together comprises more than a hectare in size, will be transferred to the Social Housing Company (SOHCO) at a nominal value of 10% (or some R4,3 million excluding VAT) of the market value of approximately R43 million. This allowed reduction is necessary to make the project financially viable for the social housing partner.

Approximately 240 social housing opportunities are foreseen to be developed on the total consolidated site, if all goes to plan.

‘We want to and have to create more affordable housing opportunities closer to urban centres across the metro. The demand for affordable housing opportunities up to an income level of R22 000 per month is growing at a rapid rate and we will need to be innovative and create greater partnerships with all involved. From the City’s side, we will do everything in our power to support our social housing partners and to ensure that our processes enable and ignite greater partnerships in the interest of all of the people of Cape Town,’ said the City’s Human Settlements Directorate’s Executive Director, Nolwandle Gqiba.

Other projects under way

The rezoning application for the Salt River Market site was approved which will allow for a mixed-use development on the site and will include 216 social housing units in addition to business and retail space.

The City, as one of the stakeholders, remains committed to driving more affordable and social housing opportunities around Cape Town’s city centres on suitable sites such as the Salt River Market site, the Woodstock Hospital site and the Pine Road site, as well as other suitable areas across the city while following due process.

Did you know?

Social housing is rental or co-operative housing for low and lower income households earning between R1 501 and R15 000 per month

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

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 Database

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 discount City-owned property 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 e.g. Scottsdene Rental Estate where surrounding properties are increasing at a higher rate than other properties in Scottsdene.

Source: City Of Cape Town