The City of Cape Town today, 2 March 2022, welcomes the start of a new R93 million flagship inner city social housing project, Maitland Mews, which is expected to deliver 204 affordable rental units. It demonstrates social housing in action and what is possible when partners in government and the private sector work together. It is the only way to meet the demand for more affordable housing in Cape Town. The City and social housing institution Madulammoho Housing Association have partnered on this project to provide well-located social housing close to the city centre.

This development forms part of a broader precinct development comprising some 1 200 affordable housing units in total. This project also potentially makes way for the financing of further affordable housing units on the larger site of this precinct development through the financed-linked individual subsidy (FLISP) – a subsidy for first-time homeowners that is administered by the Western Cape Government, working with the banking sector.

Maitland Mews is situated close to public transport, schools, places of worship, a library and a police station; is a short walk to Koeberg and Maitland Stations. It is on the MyCiTi bus route and is less than seven kilometres away from the Cape Town central business district.

Preference will be given to people who are registered on the City’s Housing Needs Register and those living in Maitland or to those who live some distance away, but are working in Maitland. This is done to reduce the cost and time of traveling.

Funding for the project is made available through the Consolidated Capital Grant from the Social Housing Regulatory Authority (SHRA), loan finance from the National Housing Finance Corporation (NHFC), equity from Madulammoho and a discounted land price from the City to enable social housing.

‘Today is a special day for the City, as we celebrate this important milestones of turning sod at one of our well-located social housing projects. A number of inner city social housing projects are under way and are all progressing steadily. We are committed to developing affordable housing opportunities in urban centres across the metro in an inclusive, fair and ordered manner. Social housing developments are complex with a host of legislative requirements to adhere to before development can take place. We have repeatedly stated our commitment to ensuring the creation of more affordable social housing opportunities and I am proud to see that taking place here today.

‘Thank you very much to the Madulammoho Housing Association for their work on this project as well as the Western Cape Government and other government and private partners. We are stronger as a city to have partnerships such as this one and we look forward to additional partnerships on this site and across the metro to help eradicate apartheid era spatial planning and create more affordable housing opportunities together,’ said the City’s Mayoral Committee Member for Human Settlements, Councillor Malusi Booi.

‘For Madulammoho Housing Association, this is an exciting milestone for this development. We are pleased to be making progress and being one step closer to delivering these units. Madulammoho is partnering with Calgro M3 as the turnkey development partner in the development of 204 social housing residential units and a further nine units as part of training facilities on this site. We are hoping to deliver all units by the end of January 2023, if all goes according to plan. Importantly, the date of the tenanting process will open in July 2022 and more communication will follow. Our intention is to look for more social housing opportunities in the years to come, especially with partners such as the City of Cape Town,’ said Madulammoho Housing Association’s Chief Executive Officer, Renier Erasmus.

Facts about social housing:

• 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.

Source: City Of Cape Town