CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
HOUSING HOUSING IN THE IN THE
CAPE TOWNCAPE TOWN
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
CMA housing situationCMA housing situation
Estimated population = 3.2 million
41% of households qualify for the housing subsidy
Estimated housing backlog = + 220 000 households
In-migration and new household formation adds + 20 000 households p.a.
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
CMA housing situation CMA housing situation
The City of Cape Town is the largest public housing landlord in the country:
- 42 000 rental units
- 21 000 hostel beds
- 23 000 deferred sale units
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
Targeted communitiesTargeted communities
Households that qualify for the subsidy
Council’s tenants and home-purchasers
Hostel residents
Families in informal settlements
Families in backyards
The gap-market i.e. households with incomes between R 3 501 – R 6000
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
Service delivery rolesService delivery roles
Developer
Facilitator
Rental housing administrator/ landlord
Regulator
Enforcer
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
Core businessCore business Obtain land for housing
Develop new housing
Administer & maintain Council’s housing stock
Manage & control informal settlements
Housing related education & training
Strategy & policy formulation
Facilitate integrated development
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
Land for housingLand for housing
Have database of 546 sites potentially suited to affordable housing
Identifying land for medium-long term needs
Acquiring sites to be used within 5 years
Negotiating the transfer of PHDB land to the City
Initiating discussions re transfer of other state land to the City
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
Housing optionsHousing optionsIncremental development areas (new)Communal toiletsCommunal water supplyCapital cost + R 3 500Monthly operating cost + R 66
per household
Full PLS subsidy projectServiced siteTenureStarter houseCost
R 23 100 + R 2479 = R 25 579
Basic/ full servicesServiced siteTenureCost R 7 500 – R 13 500
Top structureStarter houseCost
R 12 521 + R 2 479 = R 15 000
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
Housing optionsHousing optionsRent to buy or rentalServiced siteTenureComplete houseCost
R 23 000 + savings + loan
Informal settlement upgrading
Step 1: Rudimentary services (same as incr. upgrade areas)
Step 2: Basic/ full services
Step 3: Top structureHostel upgradeDevelop family units throughconversion of existingbuildings construction of new buildingsupgrading of existing buildings
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
Managed PHP flow chartManaged PHP flow chartPROVINCIAL HOUSINGDEVELOPMENT BOARD
BENEFICIARY COMMUNITY'SREPRESENTATIVE FORUM
CITY OF CAPE TOWNPrimary Support Organisation
SECODARY SUPPORT ORGANISATIONManages project and is responsible for building
quality
PROJECT MANAGEMENT SERVICEAccount administration, certification etc.
HOUSING SUPPORT CENTRE
Construction management
BUILDING MATERIALS SUPPLIER/S
BUILDING TEAMLocal builders
BENEFICIARIES
BUILDING TEAMLocal builders
BUILDING TEAMLocal builders
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
New housing projectsNew housing projects
The Public Housing Directorate:
Is involved in 60 projects 46 628 housing opportunities
Constructs + 8 000 houses p.a.
Develops + 3 000 serviced sites p.a.
Is implementing 12 projects accommodate people living in 36 informal settlements
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
Projects targeted at informal Projects targeted at informal settlementssettlements
Project name Informal Settlements targeted Sites allocated to
informal settlements Vrygrond Vrygrond 1600
Mfuleni Flood Relief
Amsterdam, Ezindlovini, Burundio, Congo, RR section(Khayelitsha), Greenpoint, Phola Park,KTC, SBDC,Sweetholme, Kosovo(Langa), Europe, Crossroads, Mpetha sq, Kosovo - Samora Machel. 4500
Wallacedene Ph1 &2 Mooitrap, Grootboom, Wallacedene 1660 Spandau Spandau 600
Delft Central Black City, Thambo sq, KTC, Phola Park, Joe Slovo, Mkhonto sq, Millers camp. 3200
Witsand Witsand 550
Phillipi Park Phola Park 1150
Browns Farm 5 Browns Farm 2357
Crossroads 5 Boystown 1487
Crossroads Crossroads High Density 202 Greenpoint 2 Greenpoint 500
New Rest 1 New Rest (in situ) 1100
Macassar Erf 2633 Madallasbos 300
TOTALS 26046
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
New housing projects cont.New housing projects cont.
Is involved in 12 PHP projects 1 504 households
Has supported the activities of:
- iSLP 30 000 houses over the past 9 years
- Cape Town Community Housing Company
+ 3000 rent-to- buy units
95.5% of the 2002/3 subsidy budget was spent
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
Emergency reliefEmergency relief
+ 8 000 households live in flood prone areas
Corporate risk reduction programme and contingency planning for possible flooding
- Maintenance & in situ relief work- Emergency relief e.g. shelter, meals, clothes- Incremental upgrade areas
Emergency fire kits
CAPE TOWN - SOCIAL RENTAL HOUSING SECTOR
2.TENURE TRANSFER FOR SOME TENANTS - (TOP)
HOUSING DEPARTMENT “TOP” TEAM MANAGES
PROGRAMME
Provision of Pre and Post Transfer Support to Ensure Sustainability
Pre transfer ConsultationSetting up Local Housing OrganisationsManaging post transfer organisational support thro Service Organisations
To Achieve
Sustainable transfer of maximum 2000 units over 4 yearsHelp establish sustainable Local housing Organisations as vehicles for Tenant ownershipIncrease potential investment of owners and private sector in this stockReduce the Council’s deficit on managing housing stock Increase resident ownership and responsibility for housing and local areas.
3.DEVELOPMENT AND
MANAGEMENT OF NEW SOCIAL RENTAL STOCK
PUBLIC PRIVATE PARTNERSHIPCOUNCIL AND PVT . SOCIAL
HOUSING SECTOR
Delivery and Management of Well-Located Social Rental Units
Development of Council Framework for facilitation of new social housing in well located areasPublic/Private Agreements with Housing Associations for the delivery and management of social housing stock.Council facilitates access to well located land and institutional subsidies in exchange for standard setting and some allocation rights.
To Achieve
3000 well located rental units for people on low income over 4 years.Targeted investment of housing for people on low incomes in better -located areas.Strengthening private sector involvement in housing provision in better-located areas.Use opportunities for the City to access additional Govt resources in the interests of its housing objectives. Greater social, physical and economic integration of City.
1.MANAGEMENT OF EXISTING COUNCIL
RENTAL HOUSING STOCK
HOUSING DEPARTMENT MANAGES7 Regional Managers
26 Decentralised Housing Offices
Provision Good Basic Housing Service – Decentralised
Asset Maintenance – RepairsAllocationRent CollectionArrears ManagementTenancy MattersTenant Consultation and Representation
Defined and established service standards and service access
To Achieve
Increased rentals where affordableSubsidy for those who cannot affordImproved levels of paymentReduction in deficitImproved planned and reactive maintenance of unitsImproved commitment and buy-in from tenantsGreater mobility through Council stock Higher levels of tenant satisfaction with service and greater tenant responsibility.
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
HOSTELSHOSTELS
825 family units have been developed
A further 500 units will be completed by September 2003
8 000 family units will be developed over the next 10 years
Building maintenance and infrastructure improvements have taken place
LANGA: FAMILY ACCOMMODATION
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
ChallengesChallenges
NHBRCSavings requirement
Subsidy procurement policy
Slowing housing delivery down &/ or
increasing our roles and responsibilities
Policy amendments
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
ChallengesChallenges
Grootboom judgement
Government’s constitutional obligation to provide access to land & essential services
Not clear how the responsibilities are shared between different spheres of government
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
ChallengesChallenges
Decentralisation and delegation of housing responsibilities to local government
Not accompanied by income streams to support them
Pressure on local governments’ budget
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
ChallengesChallenges
Land costs are higher in Cape Town than the rest of the country need a Housing Land Fund
Discrepancy between housing need and housing delivery rate
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Yr1
Yr2
Yr3
Yr4
Yr5
Yr6
Yr7
Yr8
Yr9
Yr10
Yr11
Yr12
Yr13
Yr14
Yr15
Yr16
Yr17
Yr18
Yr19
Yr20
Years
Ho
usi
ng
nee
d &
del
iver
y ra
tes
Backlog and 16,000increase p.a.
11840 houses p.a
17076 houses p.a.
30000 houses p.a.
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
Housing delivery ratesHousing delivery rates
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
Implications for subsidy spreadImplications for subsidy spread
Product/ subsidy type
Low - 11,840 hsng opp p.a
High - 17,076 hsng opp p.a.
V. High 30,000 hsng opp p.a.
Serviced site (? PLS) 4.8% 63.5% 100%Serviced site & starter house (PLS) 57.1% 10.5%
Top structure (consolidation or PLS residual) 17.8% 7.6%Individual subsidy 0.5% 0.4%Institutional subsidy 18.1% 16.0%Hostel conversion 1.8% 1.8%
Based on current allocation of subsidy funds
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
ChallengesChallenges
No financial mechanism for incremental upgrading
Impact of the savings requirement on the allocation of housing
Culture of non payment
Breakdown in the rule of law in some areas
Establishment of the Uni-City
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
ConclusionConclusion
The Public Housing Directorate is proud of its performance to date.
However
The challenges raised may make it difficult for us to maintain or extend our existing housing delivery rate
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
ConclusionConclusion
National interventions we would value are:
- Greater role clarity
- Income streams to support our assigned housing functions
- National funding programmes for:
* land acquisition
* incremental upgrading
CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD
THANK YOU