New R38 million central city social housing site advertised
09 December 2022
The City, today, 9 December 2022, advertised for public comment another well-located site proposed for social housing. The 7 000 m² Earl Street property in Woodstock, with a desktop valuation of about R38 million, could potentially yield 160 new social housing units. This is part of the Accelerated Land Release for Affordable Housing Mayoral Priority Programme to unlock development opportunities while driving meaningful economic growth.
‘The potential addition of approximately 160 two-to four-storey social housing units in this central city location, pushes the social housing pipeline in the central city to over 1 300 that have been approved since May 2022.
The City is driving the intensification of affordable housing delivery in urban areas across the metro. The City currently has more than 50 land parcels city-wide identified in the overall pipeline, yielding approximately 3 000 residential opportunities in Central Cape Town and 2 000 units nearing completion or about to begin construction along the Voortrekker corridor and near important economic nodes.
‘It is foreseen that the sale of the property will stimulate economic growth while meeting the City’s absolute commitment of leveraging assets to create affordable housing opportunities and respond to some of the negative impacts that gentrification often brings, including pricing lower income households out of the property market. We encourage members of the public to have their say on this proposal.
‘This is part of our new Human Settlements Strategy in action. We invite all private sector partners in particular to join our movement for more affordable housing,’ said the City’s Mayoral Committee Member for Human Settlements, Councillor Malusi Booi.
Social and affordable housing projects are under way in many areas across the metro in suitable, well-located areas.
Please have your say on this proposal from 9 December 2022 to 10 January 2023.
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 values in an area.
End
Published by:
City of Cape Town, Media Office
