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City engages with Maynard Street tenants<p>​Today, 7 June 2018 I met with representatives of the Maynard Street tenants to plot a way forward on the concerns they have raised. I am pleased that all other relevant stakeholders (Ward Councillor Brandon Golding; Mayoral Committee Members Councillors Brett Herron and Suzette Little; and City officials) were able to join me to reach an amicable resolution with the tenants’ representatives.</p><p>The City owns 14 properties located along Maynard Street, Gardens that were purchased between 1974 and 1983 to accommodate a proposed roads scheme project. The proposed plan for this project has subsequently been abandoned.</p><p>At the time that the City purchased these properties, the owners were compensated at market-related prices. Some of the owners and their families have continued to stay on in these homes paying very low rental to this day. Other homes are now occupied by new tenants. The properties in question were intended to be used for the best economic benefit of the City and not for social housing.</p><p>Recently the City renovated a property that became vacant and the intention is to sell this property at its current market value. We estimate that the proceeds from the sale of this single house will equate to either of the following: </p><ul><li><div style="text-align:left;">The cost of building approximately 20 Breaking New Ground (BNG) houses, which are free homes offered for ownership to households with a monthly income below R3 500. The City funds and builds approximately 6 000 BNG houses each year; or </div></li><li><div style="text-align:left;">Will be sufficient to cover an entire year’s worth of rates rebates or rental subsidies for several hundreds of indigent families within the City.</div></li></ul><p>Therefore, the income from this single sale will be able to provide for a number of ownership opportunities, or hundreds of rental opportunities that will benefit the City’s lower income families.</p><p>The remaining tenants will not be impacted by this sale and the City has no plans to evict any tenant who pays their rental regularly. </p><p>Further, it must be borne in mind that, in terms of the Municipal Asset Transfer Regulations (MATR) and the Municipal Finance Management Act (MFMA), these properties cannot be sold at less than the current market value. Additionally, local government cannot be compelled to sell or dispose of its assets as outlined in the MATR.</p><p>The City, on a continuous basis, considers and identifies property assets no longer required for municipal purposes. The sale of City-owned property assets, when no longer required for municipal services, is an established procedure and this process is carried out as per the requirements of the Municipal Asset Transfer Regulations.</p><p>We will explore the possibility of disposing of the properties below current market value within the various factors to be considered as per the requirements of the MATR and MFMA.</p><p>I would also like to bring this issue to a close. Going forward, the City officials have committed to prioritising and focusing on the Maynard and Harrington Street properties. A detailed plan of action setting out the necessary statutory processes and timeframes will be compiled under my leadership and disseminated to the Maynard Street tenants. </p><p>The Property Management Department will play a supporting role in executing key aspects of this process with the oversight of my office.</p><p><strong>End</strong><br></p>2018-06-06T22:00:00ZGP0|#1d539e44-7c8c-4646-887d-386dc1d95d70;L0|#01d539e44-7c8c-4646-887d-386dc1d95d70|City news;GTSet|#62efe227-07aa-45e7-944c-ceebacca891d;GP0|#904f8ac3-ad18-4896-a9a8-86feb1d4a1b7;L0|#0904f8ac3-ad18-4896-a9a8-86feb1d4a1b7|StatementsGP0|#0d2f3daa-7c11-4d3b-9c23-727b4bc9b914;L0|#00d2f3daa-7c11-4d3b-9c23-727b4bc9b914|property;GTSet|#2e3de6c1-9951-4747-8f53-470629a399bb;GP0|#02d14be4-3d23-41a6-b14a-7c4732a9aa7d;L0|#002d14be4-3d23-41a6-b14a-7c4732a9aa7d|BNG;GP0|#83c63af0-a7b2-49f0-afa3-b3db8e1e4f48;L0|#083c63af0-a7b2-49f0-afa3-b3db8e1e4f48|Gardens1

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