Inner City Housing Learning Note 2: Focus on Durban (2016) by The Power Is In People

Inner city housing Learning Note: March 2016

Focus on durban 1. introduction This research was commissioned by Oxfam in order for itself and its urbanbased partner organisations to understand the national and municipal processes that surround providing decent housing to vulnerable groups within the inner-cities of South Africa. This research series consists of two learning notes. Learning note one is applicable to all South African partners and provides general, high-level information on inner-city housing. This learning note, learning note two, focuses on housing in the Durban InnerCity in more detail. It provides an overview of housing risks within the inner-city of Durban and the plans and policies currently in place to address these risks. The eThekwini Municipality has defined the inner-city area as extending from the Umgeni River in the north, the Beachfront and Point to the east, Victoria Embankment to the south and Warwick Avenue, Umgeni Road to the west. The image alongside portrays this area.

Figure 1 Inner-City of Durban Local Area Plan, 2016 Source: eThekwini Municipality (2016)

2. Situational Analysis

Historically, the inner-city comprised mostly of commercial businesses, entertainment and institutional uses, however, new development and massive investment north of the inner-city has resulted in the exodus of these uses, in favour of more residential use. The flight of capital investment out of the inner-city has led to high building vacancies, reduced property values and lower rates revenue, which can lead to urban decay. Conversely, the flight of capital has also opened up access and opportunities for small businesses and a variety of new uses, leading to greater inclusion and transformation. The residential housing profile is complex and includes formal residential accommodation for rental and ownership, tourist accommodation, social housing, a hostel, transitional housing, student accommodation, low budget overnight establishments, welfare shelters, workhouses and rough sleepers. While those with little to no income are the major users of the inner-city, they are inadequately catered for with regard to housing. Students, foreign nationals, and those who may have permanent homes elsewhere, but need periodic or temporary accommodation in the innercity, are also inadequately catered for. The shortage of cheap accommodation fosters unscrupulous practices such as inflated prices for increasingly overcrowded and unsafe accommodation. Noncompliance issues include unlicensed accommodation, sex work, illegal liquor establishments, illegal foreign-nationals, illegal building invasions, and business zoned premises being used for residential purposes. Human Settlements, which includes housing, is a national and provincial government mandate, although eThekwini has been recognised as an accredited metropolitan municipality and has certain delegated powers and responsibilities.1 eThekwini Metroâ&#x20AC;&#x2122;s strategy for dealing with these residential issues is to promote new residential investment across the income spectrum, promote new models of accommodation for very low income residents, reclaim dysfunctional housing stock and minimise dysfunctional and exploitative residential practices. However, the focus of the metro, in line with government housing policy, has been on greenfield developments and upgrading informal settlements on the periphery of the city. An interview with the eThekwini Human Settlements Department revealed that this emphasis has recently changed, and there is a current drive to intervene in the inner-city, with a few projects currently in the feasibility stage. Initially, state-owned properties are the priority but the potential to link the upgrading of â&#x20AC;&#x2DC;bad buildingsâ&#x20AC;&#x2122; with a public housing program is being explored. Furthermore, the metro has initiated several projects, plans and policies, which hope to appease the housing issues. These are discussed in more detail below.

SALGA (2012) Available: http://goo.gl/LIyCLL

3. Municipal Interventions for the Durban Inner-City

The following plans, programs and policies are in various stages of development but have all been instituted to leverage economic growth in the inner-city of Durban and to improve the conditions for residents. 3.1. Integrated Rapid Public Transport Network (IRPTN) Go!Durban is the name of Durbanâ&#x20AC;&#x2122;s rapid bus transit system which is intended to improve accessibility and reduce inequality in eThekwini. This project is a long-term (25 year) project and implementation of the first phase began in 2014.2 Go!Durban will assist the housing problem by making many of the peripheral residential locations more viable for individuals with lower income, through cheaper and less time-consuming transport options. 3.2. Nodal Development eThekwini is a polycentric city, and the current agreed development concept is to reinforce the nodes, and promote intensification and densification along the transport corridors that link the nodes together (referred to as Transit-oriented development, or TOD). The eThekwini Municipality has recently adopted a Densification Strategy (2014)3 which is intended to direct and inform development planning for the whole municipal area going forward. The inner-city is one such primary node that will be receiving increased attention, therefore, the eThekwini Metro has initiated an Inner-City Local Area Plan and Regeneration Plan. The LAP is in the conceptual framework phase and the internal departments are currently undertaking specialist studies to check feasibility of implementing development proposals. Once this process is complete, the metro will then have a council approved document/plan to be circulated to all stakeholders.4 The metro is taking queries and comments on InnerCity@durban.gov.za.5 The following areas within the inner-city have been earmarked for intervention by the private sector, the metro and government. Warwick Precinct: The South African National Treasury Department has identified the Warwick Precinct as a priority area requiring intervention to support socio-economic improvement and growth in Durban and the development of a precinct plan is underway.6

Go!Durban (2016). Available: http://www.godurban.co.za/ eThekwini Municipality (2013) Available: http://www.durban.gov.za/Resource_Centre/reports 4 Email correspondence with Zakhi Mkhize, eThekwini Municipality. 5 Also see http://www.durban.gov.za/Resource_Centre/Current Projects and Programmes/Inner City LAP/ for further information and to sign up as a stakeholder. 3

See the Uban Land Instituteâ&#x20AC;&#x2122;s recent research on Warwick Junction (2015) Available: http://uli.org/wpcontent/uploads/ULI-Documents/Durban-SouthAfrica_PanelReport_lo.pdf

DUT (Durban University of Technology): DUT has developed a masterplan, which includes the need to address the housing shortage for students, and is hoping to collaborate with eThekwini Metro on the plan.7 Rivertown: Proposals for the revitalisation of the motor-town area to the east of the Durban International Convention Centre were initiated as a possible legacy project of the UIA World Architecture Conference ‘Otherwhere’, held in August 2014.8 The proposed revitalisation area is being referred to as ‘Rivertown’ as an acknowledgement of the large canalised water-course that runs through the area. The intention is to promote the area as a high density, mixed-use urban precinct, with a focus on residential and creative industries and entertainment.9 Pixley Kaseme Street: Propertuity, the development company responsible for initiating the transformation of the formerly degraded Maboneng precinct in Johannesburg, is in the process of converting 2 buildings (320 and Pixley House) in Pixley Kaseme Street (formerly West Street) to residential spaces. Initially, the residential units were for sale and 129 units in Pixley House sold in 2 weeks, but they have subsequently been converted to rental due to difficulties obtaining end-user finance for buyers. Propertuity are focusing on households earning above R15 000 per month.10 Albert Park: There have been a few proposals for new social housing in Albert Park. The park itself has been identified as a potential site. However, the current status of these proposals is unknown. Parts of the park are used as a place for rough sleepers, but the municipality has been trying to stop this. Point Precinct Plan: There is a current planning exercise underway for the Point precinct. The study area excludes the Addington/South Beach area. The proposals indicate that the development bulk in the area will be greatly increased, including residential accommodation and hotels, but the focus is on the middle to upper-income market segment. Development will be driven by a private Malaysian company, who owns the land, in partnership with the municipality. The re-zoning application is currently in progress and plans are available to view as part of this municipal process.11 South beach/Addington Precinct Plan: The area is perceived to be unsafe, and is believed to have a high level of illegal activities occurring there. In spite of concerted efforts and some successes in dealing with dysfunctional buildings in this area, for the moment, urban management problems persist. The current re-development of Addington Hospital, as well as the Children’s Hospital, represents significant investments in the area, which seems to show that there are opportunities for appropriate development of affordable accommodation. This area is included as a priority in the current Inner-City Local Area Planning project.

Durban University of Technology Annual Report for 2014 (2015) Available: http://ddt72ar9zv4px.cloudfront.net/wpcontent/uploads/corporate%20affairs/DUT%20ANNUAL%20REPORT%20 2014%20LOW.pdf 8 Otherwhere Regeneration Projects (2014) Available: http://www.uia2014durban.org/resources/docs/ 1553_Turn_UIA_News_6_Download.pdf 9 See http://propertuity.co.za/property/rivertown-triangle/ 10 Propertuity (2016). Available: http://propertuity.co.za/property/320-pixley/ 11 See the Point Waterfront zoning application, economic impact assessment, development framework plan and other related information here: http://www.durban.gov.za/City_Services/development_planning_ management/Documents/

Cornubia: The Cornubia project, north of the CBD, is one of the biggest new development projects in South Africa, and is planned as a new integrated development node. While the Cornubia housing project is not within the inner-city, it has the potential to reduce the inner-city housing demand. The proposed development includes commercial and industrial, social facilities and recreation, as well as 24 000 residential units, the largest proportion of which are meant to address existing affordable housing backlogs. The first phase of the residential project has recently been completed and the next phase is currently in implementation. The project is a partnership between Tongaat Huletts and the eThekwini Municipality, and is a pilot for denser greenfield development than has been the norm.12 3.3. iTrump’s Better Buildings Program iTrump is an area based management (ABM) unit of the municipality responsible for the regeneration of the inner-city. Its Better Buildings Program is an inter-departmental program which focusses on compliance with environmental health and safety (especially fire) regulations, and to some extent, urban management issues. Mounting legal action against owners of dysfunctional buildings is one of its core roles. iTRUMP has a building profile for all identified ‘bad buildings’ in the city and has also identified dysfunctional Body Corporates as an important risk factor; it has proposed Body Corporate training as a possible remedial strategy.13 3.4. Vulnerable Groups eThekwini Municipality has developed a Vulnerable Groups Program14 to deal with issues affecting vulnerable groups. The eThekwini IDP identified the following groups as vulnerable: people living with disabilities, children, elderly, homeless, foreign nationals, including refugees, people living with HIV or AIDS, youth and women.15 The municipality further initiated a Safer Cities Program in 2000. This program, together with iTrump, has been responsible for working with street children to provide, among other things, safe refuge, although this program is not intended as a housing intervention. There is a shortage of appropriate accommodation and care for the elderly, especially the elderly with little to no income, and there is no housing policy that specifically targets the elderly. The National Social Housing Projects (NSHP), who currently manage a number of shelters in the inner-city of Durban, is currently working in partnership with the eThekwini municipality to develop a project called Qalakabusha One Stop Centre, which they hope will be implemented at 16 Dr Goonam Street.16 This is a pilot project and is targeted at 300 people who were living in and around Albert Park, many of whom have substance abuse problems. The project will include rehabilitation and other social and medical support, as well as skills development and job readiness support. “According to the National Social Housing Projects NPC, 65% of the homeless people in the streets are South African citizens, 35% consists of foreign nationals, refugees and illegal immigrants. From 12

eThekwini Municipality (no date) Available: http://www.durban.gov.za/City_Services/housing/Pages/ Cornubia.aspx 13 eThekwini Municipality (no date). iTrump. Available: http://goo.gl/FGEIHB 14 eThekwini Municipality (no date). Vulnerable Groups Program. Available: http://goo.gl/S3gp4E 15 eThekwini Municipality IDP (2013-2014). Available: http://www.durban.gov.za/Documents/ City_Government/ IDP_Policy/IDP_2006_07.pdf 16 eThekwini Municipality (2014). Qualakabusha. Available: http://goo.gl/p2YNFG

the statistics they have gathered at the centre, 28% is from Albert Park, 17% from Umgeni Road, 10% from Bertha Mkhize Street, 8,7% from South Beach, 8,3% Berea Park, 7% from Mansel Road, 3,8 % from Esplanade, 1% from JN Singh Street and 16,2% were found just living around the CBD”.17 3.5. Application of National Housing Subsidy Programs eThekwini Municipality’s update on its social housing delivery plan (2015) focussed on the inner-city of Durban (the inner-city is a ‘restructuring zone’, which means that the Social Housing Program applies). Delivery on this program requires strong collaboration between the metro and social housing institutions (SHI). First Metro Housing Company and the Social Housing Company (SOHCO) are the most active social housing institutions in Durban. They have successfully implemented a few inner-city social housing projects in the South Beach area and in Albert Park. First Metro’s Avoca Hills Housing Project earned the city an award for best practice at the Govan Mbeki Human Settlement Awards in 2015.18 The eThekwini Human Settlements Department has facilitated the establishment of 5 new SHIs in Durban, and is looking forward to growing the capacity of this sector to ramp up delivery. The land, buildings and number of units identified for social housing programs by the metro is detailed in the Department of Human Settlements’ update to the City Manager.19 The first Institutional Housing Program project in South Africa was carried out within the inner-city of Durban as a pilot project. The facility is called ‘The Strollers’ and is located on Mansel Road.20 An NPO was set up in order to access the subsidy but the project has not proven to be financially sustainable and The Strollers remains under-utilised. The only existing Community Residential Units Program in the inner-city of Durban is the Thokoza women’s hostel where, although overcrowded, space is in high demand.21 The feasibility of a few new CRU projects in the inner city, including in the Warwick Precinct, is underway at present. The Emergency Housing Assistance Program could be applied to the dangerous conditions in many of the more dysfunctional buildings in the inner-city as a temporary solution, but has not been applied to date.

4. conclusion

The inner-city of Durban has suffered from the flight of capital in recent years and the onset of urban-decay is evident in certain areas. Dysfunctional buildings and insufficient housing create unsafe living conditions for all residents. iTrump and the Safer Cities program have been 87% instrumental in preventing urban-decay and protecting vulnerable groups within the inner-city over the past ten years but, only recently, have the metro as a whole targeted the inner-city for 17

Durban University of Technology (2015) Available: http://www.dut.ac.za/a-one-stop-intervention-centre-for-thehomeless/ 18 eThekwini Municipality (2015) Available: http://goo.gl/Y7nXDh 19 Department of Human Settlements (2015). Social Housing Update. Available: http://www.durban.gov.za/City_Services/housing/Social%20Housing%20Introductory%20Workshop/Status%20U pade%20Social%20Housing%20-%2008%2006%202015%20(latest).pdf 20 For more information on the Strollers see Urban LandMark’s report (2008). Available: http://www.urbanlandmark.org.za/downloads/case_studies_integration.pdf 21 IOL (2015). Available: http://www.iol.co.za/news/south-africa/kwazulu-natal/durban-hostel-children-living-infear-1830016

development. The development of a Local Area Plan and Regeneration Strategy for the inner-city promises an influx of capital and investment over the next five to ten years. Development projects that are already evident include Go!Durban, Rivertown, Pixley Kaseme Street, the Point Precinct and Cornubia. The renewed focus of the Human Settlements Department on social housing projects within the inner-city is also promising. Within this new era of capital investment, the metro should be careful maintain the inclusivity and informality of the space through monitoring the activities of property companies and investing in responsible spatial and economic frameworks for the inner-city. Engagement by civil society and the public is critical to achieving this balance and also holding the metro to account.