Social housing progressing in Maitland

The City of Cape Town reports that its Maitland Mews partnership social housing project, situated in the well-known suburb to the south of Cape Town, is making steady progress.

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The project will provide social housing rental opportunities to 204 residents and their families, and will be ready for handover in the coming months. Maitland Mews forms part of a broader precinct development comprising more than 1 000 affordable housing units.

What is social housing in South Africa?

According to the National Department of Human Settlements, there is an increasing need for affordable rental units which provide secure tenure to households which prefer the mobility provided by rental accommodation. Social housing provides good quality rental accommodation for the upper end of the low income market , with the primary objective of urban restructuring, creating sustainable human settlements.

The programme provides for grant funding to establish, capacitate and capitalize social housing institutions which may develop, hold and administer affordable rental units within identified restructuring zones (www.dhs.gov.za).

Meanwhile, early in 2023, the City’s Mayoral Committee Member for Human Settlements, Councillor Malusi Booi, and senior officials in the Human Settlements directorate visited the Maitland development to take a closer look at the progress. The photos give a good indication of the standard required from developers of such schemes.

Project will provide much needed opportunities to those who need it most

“We are pleased with what has been done thus far and we are incredibly proud that this inner city social housing project will provide much needed opportunities to those who need it most. These social housing opportunities will be close to public transport, schools, places of worship, a library and a police station. It is also close to public transport and is only seven km from the Cape Town central business district.

“The City and its partners look forward to handing over the opportunities very soon and the City remains absolutely committed to developing housing opportunities in urban centres across the metro,” said Councillor Booi.

Funding for Maitland Mews Housing

Project is made available through the Consolidated Capital Grant from the Social Housing Regulatory Authority (SHRA), loan finance from the National Housing

About social housing

Finance Corporation (NHFC), equity from Madulammoho and a discounted land price from the City to enable social housing.

Part of a broader development of more than 1 000 housing units

This development forms part of a broader precinct development comprising more than 1 000 affordable housing units. It also potentially makes way for the financing of further affordable housing units on the larger site of this precinct development through a subsidy for first-time homeowners that is administered by the Western Cape Government, working with the banking sector.

TO BUILD asked Councillor Booi to update readers as to how many new social housing projects are currently under construction across the City.

“There are currently three social housing projects in construction, which in total will deliver over 1 300 social housing opportunities, including the Maitland Social

Housing Project. The land for the Maitland project was made available by the City of Cape Town through its priority Land Release programme for affordable housing.

“Development plans are also underway on projects that we expect to commence during the year. Combined, these will yield approximately 900 social housing opportunities.

“The City’s Land Release programme is steadily gaining momentum and significant strides have been made thus far. In July 2022, the strategically located Salt River Market property was approved and released by Council for a mixed-income development, yielding approximately 200 social housing opportunities and planning activities in preparation for construction are under way.

“More than 50 land parcels have been identified in the overall affordable housing pipeline for release in the short- to longterm” he adds.

The rollout of the social housing programme is seen as a provincial function, via the applicable local authority. The Provincial Government of the Western Cape in this instance says it is a rental or co-operative housing option for households earning between R1 850 and R22 000 per month. Their website explains that social housing projects require management by an accredited institution. Social Housing projects are developed within areas that contribute to spatial, economic and social development.

Social housing is not low-income subsidised government housing, such as Breaking New Ground or the commonly called RDP housing and differs from City Council rental units.

Managed by accredited social housing institutions that are solely dependent on rental income. They receive no operational grants. They are able to service their debt finance through rental income.

A rental contract. Tenants formally enter into lease agreements. The landlord is the social housing institution.

If tenants do not adhere to their lease agreements, the responsible social housing institution will follow the necessary legal process. Rentals collected from tenants cover the day-to-day operation and upkeep of the complex. Hence they are essential.

Municipal authorities are not responsible for the day-to-day management of social housing institutions, the rental amount or evictions for not paying.

Projects are developed on well-located, accessible land in and near urban centres, and are managed with 24-hour security and access control.

Cities or local authorities may sell stateowned 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 can add value to vacant pieces of land and has the potential to improve property values in an area.

Applicants for social housing must register on the applicable local authorities housing needs register, says the City of Cape Town ( www.capetown.gov.za/City-Connect/ Apply/City-housing-and-properties/ Housing-opportunities ).