• The intense commitment from the City is for this land to have a higher purpose of increasing diversity, improving the lives of the most vulnerable residents and to contribute towards the establishment of greater spatial transformation in Cape Town.
• The development will help to reduce further threats of illegal invasion.

If approved by Council the two parcels of land, which together comprises more than a hectare in size, will be transferred to a social housing partner at a nominal value of 10% (or some R4,3 million excluding VAT) of the market value of approximately R43 million. This reduction is necessary to make the project financially viable for the social housing partner. Approximately 240 social housing opportunities are foreseen to be developed on the total site.

We are moving in the right direction. On Council approval of the asset transfer at the end of October 2019, as we expect, the planning, building and contractual processes can be finalised. In March 2018, Council gave its in principle approval for the disposal of these parcels of City-owned land. According to City policies, the City may discount City-owned property for certain purposes which includes social housing developments and social and community purposes.

Plans for social housing developments near the Cape Town city centre as well as near urban centres across the metro continue in earnest. Recently the Planning Appeals Advisory Committee supported a decision by the Municipal Planning Tribunal to approve the rezoning application for the Salt River Market site which will allow for a mixed-use development on the site and will include 216 social housing units in addition to business and retail space.

The City, as one of the stakeholders, remains committed to driving more affordable and social housing opportunities around Cape Town’s city centres on suitable sites such as the Salt River Market site, the Woodstock Hospital site and the Pine Road site, as well as other suitable areas across the city while following due process. For instance, the Woodstock Hospital site has been earmarked for social housing opportunities but the planning of these opportunities can only formally commence once the acquisition of the property from the Western Cape Government has been approved by Council.

The City has commissioned a feasibility analysis for the redevelopment of the Woodstock Hospital. A team of construction consultants is busy with the analysis and the City is awaiting the outcome of this analysis. The development of the Woodstock Hospital is under severe pressure due to the illegal occupation of the building, despite the City obtaining an interdict to prevent further illegal occupation.

We are gaining great momentum after many years of hard work to get where we are. The City will continue to assess City-owned land, including suitable land in and near the Cape Town CBD and other urban centres to determine whether some of these properties could be developed for housing opportunities.

Cape Town is a place for all. We are committed to inclusivity and will keep on exploring all possibilities to provide more affordable housing opportunities for our residents.

What is social housing?

• The Social Housing Act says social housing is a rental or co-operative housing option for households earning between R1 501 and R15 000 per month.
• Social housing projects are managed by accredited social housing institutions (SHIs)
• Social housing projects are developed on well-located, accessible land within areas that contribute to spatial, economic and social development.
• As with any rental contract, tenants formally enter into lease agreements with the landlord being the SHI and they are required to pay their monthly rentals
• Social housing also assists those who do not necessarily qualify for a bond from a bank.
• It is a key mechanism to drive spatial transformation and to cater for the acute accommodation need in urban centres which have resulted from rapid urbanisation.
• Social housing is based on partnerships with the acknowledgment that local government alone and government in general, cannot satisfy the accommodation need in urban centres.
• Social housing is well maintained and managed with security and access control. If tenants do not adhere to their lease agreements, the responsible SHI will follow the necessary legal process. A prospective tenant’s willingness to pay for the accommodation is therefore of paramount importance.
• According to law, the City may discount City-owned property for certain purposes including social housing developments.

Please visit

• /media/1lddnpjk/social-housing.pdf
• /city-connect/apply/city-housing-and-properties/housing-opportunities/apply-for-social-housing