BY: Mpofu Sthandile.

The City’s Mayoral Committee Member for Human Settlements, Councillor Malusi Booi and senior officials in the Human Settlements directorate visited the social housing project in well-located Goodwood to check on its progress. Situated on the Goodwood Train Station site, this project is in line with the City’s strategy of positioning housing developments and social housing projects closer to important economic hubs, smaller city centres and transport hubs.

‘The City has provided USDG grants, development facilitation support and various incentives to the value of about R18 million to contribute to the financial viability and operational sustainability of this approximately R575 m social housing development.

‘We’re pleased with what has been done so 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 several public transport options, multiple schools and places of worship, a library and a police station. It is literally on the doorstep of public transport and is only 15km from the Cape Town central business district.

‘The City and its partner, DCI Holdings, look forward to handing over the opportunities in October 2023 and the City remains absolutely committed to developing housing opportunities in urban centres across the metro,’ said Councillor Booi.

Social housing offers affordable rental units for families with a combined monthly income of between R1 500 and R22 000.

This is a partnership between the City of Cape Town, the Social Housing Regulatory Authority (SHRA), DCI Holdings ( the social housing institution undertaking the development), the Passenger Rail Agency of South Africa (PRASA), and the Infrastructure Fund, among others.

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.

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