Council approves release of R25m worth of prime land in Parow for social housing
24 August 2023
In a further enabling boost for more social housing in well-located areas across the metro, Cape Town’s City Council today approved of the release of various parcels of land totalling approximately 13 000 m² in size. This adds to the growing momentum of game-changing land release and public private sector partnerships for the delivery of social rental housing at scale. These pockets of land in Parow are situated near Voortrekker Road, the Tygerberg and Unisa campuses, and many more well-located desirable areas.
‘Momentum continues on Cape Town’s social housing land release efforts, with the release of two major precincts in Parow totalling approximately 13 000 m². These precincts will have an estimated yield of 650 social housing units. This is over and above the five inner-City land parcels worth 1 300 housing units which reached critical land release milestones in the first year of our Priority Programme for Accelerated Land Release. This is encouraging progress towards our goal of faster land release for more affordable housing in not only the inner city, but close to important economic nodes across Cape Town, such as the critical Voortrekker road corridor which links Cape Town CBD with Bellville,’ said Mayor Geordin Hill-Lewis.
Some 6 500 City wide social housing opportunities are in the pipeline.
As per Alderman James Vos, Acting Mayoral Committee Member for Human Settlements: ‘Council’s approval of these properties with a desktop value of more than R25 million aims to unlock the well-located sites for social housing in partnership with social housing institutions to the benefit of those earning below R22 000 in household income per month. These subsidised rental developments are attractive and add value to our neighbourhoods.
‘A person’s home will always be the place for which you feel the deepest affection, no matter who you are or where you come from. For that reason, we are overjoyed to deliver this latest land release milestone, which has been a true labour of love.
‘Our priority is to make more well located land parcels available for affordable housing opportunities, with the help of private sector and social housing agencies. Unlocking these prime pieces of land will also bring much needed construction jobs, residential opportunities for people in areas close to economic activity and transport hubs. We want to enable decent affordable housing, but also ensure that our developments spark an economic flame of growth in our neigbourhoods and communities. We must use our land as a means to unlock social and economic prosperity.
‘By enabling the private sector, we can speed up housing delivery. In this way, we are building a city of hope where every person feels like a Capetonian, adding value to their communities, to their families, and to themselves, as they navigate their life with responsibility and respect.
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 and to apply:
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Published by:
City of Cape Town, Media Office
