The City of Cape Town’s Mayoral Committee Member for Human Settlements, Councillor Malusi Booi, visited the site of the Fruit and Veg social housing project in Zonnebloem today, 7 February 2022. Councillor Booi announced that the site is ready to be transferred to a Social Housing Institution (SHI) to begin its development. An update on the City’s inner city social housing projects, which are all progressing steadily, was also provided. Read more below:

A team of professional built environment specialists was appointed in December 2021 to undertake a feasibility study of the Fruit and Veg site. The study has a duration of six months and will inform development parameters for when Requests for Development Proposals (RFP) are called for from developers.

The department has commenced with the first steps to calling for development proposals by including the project RFP on the SCM: Demand Plan for appointment of an SHI/Developer to undertake the development.

The following are the next steps in the development and land release process:

• The feasibility study is planned to be concluded by July 2022
• The intention to dispose of the site was advertised on 4 February 2022

‘Our intention has always been to develop affordable housing opportunities in urban centres across the metro in an inclusive, fair and ordered manner. Social housing developments are truly complex and intricate 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 in action here today,’ said Councillor Booi.

The site is well-located and is situated close to education and work opportunities. It is easily accessible due to its proximity to public transport options and several roads. It is anticipated that the site will yield 150 affordable housing opportunities.

Other central Cape Town social housing projects at various stages include:

Maitland (+/- 200) is under construction.

• Projects nearing construction phase include Pine Road (about 240 social housing units) and Dillon Road (+/- 150) in Woodstock; Salt River Market (+/- 200)
• Projects undergoing land use management processes to be made available for social housing include New Market (+/- 200); Pickwick (+/- 600); and Woodstock Hospital precinct (+/-700).
• Western Cape Government driven projects, supported by the City, include the Conradie Park development in the inner city feeder suburb of Pinelands, Founders Garden, and Helen Bowden Nurses Home in Green Point. All have significant potential for social housing unit yields.

‘The City is taking the necessary steps to ensure the implementation of the proposed development occurs within the shortest possible timeframes. There is sometimes a perception that if there is no construction on a site, nothing is being done. This could not be further from the truth. Due processes are being followed and much planning and development management processes are under way, which form integral parts of ensuring that these complex social and affordable housing projects are realised.

‘These projects are progressing, despite a number of challenges, including constrained national grant-funding, legislative red tape, and coordinated building hijackings. The City will do what it takes to deliver social housing, despite these obstacles,’ said Councillor Booi.

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.

Source: City Of Cape Town