City issues tender for R103m Cape Town CBD affordable housing development

11 September 2023

The City is excited to announce the release of R103 million worth of prime property of approximately 9 000 m² in size along New Market Street, Cape Town CBD. The property is located in the vicinity of all major transport routes in central Cape Town. This is another massive milestone in the City’s drive to develop more affordable housing as part of the Mayor’s accelerated land release for affordable housing programme.

'We regard this as a flagship Cape Town CBD partnership project, holding the potential to develop approximately 500 well-located units, of which 200 are earmarked for subsidised social housing rental units. The release of this prime R103 million land is a testament to the focus of unlocking land for subsidised affordable housing at scale for those earning below R22 000 per month. This programme where the City is the enabler of more affordable housing in partnership with the private sector, is increasingly gaining momentum as the work we have done over the past years start to pay off. These developments not only provide affordable housing opportunities, they also reinvigorate neighbourhoods and help to protect against gentrification and reverse the trend in urban centres so that our moderate- to lower income residents can again be afforded well-located opportunities. Our housing developments are also catalysts for meaningful economic growth in our neighbourhoods.

'We have some 6 500 City wide social housing opportunities in the pipeline and importantly, the City has made available 32 666m²for social housing in the past five years. The City has also acquired more than 900ha of land for the City's integrated Human Settlements Development purposes. In the first year of our Mayoral Programme for Accelerated Land Release, five inner-city land parcels with a planned total of over 1 300 housing units reached critical land release milestones. We encourage our private sector partners to join us in strengthening the social fabric of Cape Town and to improve our neighbourhoods,' said the City's Mayoral Committee Member for Human Settlements, Councillor Carl Pophaim.

The closing date for this tender submission is 16 October 2023 at 10:00.

The City's social housing projects follow all due process as well as public participation.

Social Housing policy, set nationally, targets households with gross monthly incomes ranging from R1 850 to R22 000.

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 financially feasible.
Social housing offers improved access to social facilities and other amenities.
Social housing adds value to vacant pieces of land.
Social housing has the potential to improve property values in an area.

For more information:

https://www.capetown.gov.za/City-Connect/Apply/City-housing-and-properties/Housing-opportunities/Apply-for-social-housing and https://www.mh.org.za/

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Published by:
City of Cape Town, Media Office