CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD

CITY OF CAPE TOWNISIXEKO SASEKAPASTAD KAAPSTAD

HOUSING HOUSING IN THE IN THE

CAPE TOWNCAPE TOWN


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.


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


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


Service delivery rolesService delivery roles

Developer

Facilitator

Rental housing administrator/ landlord

Regulator

Enforcer


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


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


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


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


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




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


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


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


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.


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


ChallengesChallenges

NHBRCSavings requirement

Subsidy procurement policy

Slowing housing delivery down &/ or

increasing our roles and responsibilities

Policy amendments



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



Decentralisation and delegation of housing responsibilities to local government

Not accompanied by income streams to support them

Pressure on local governments’ budget



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.


Housing delivery ratesHousing delivery rates


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



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


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


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


THANK YOU

Documents

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD