Delivery of first units in new social housing project expected in April

“It is very exciting to see the Glenhaven social housing project progressing well and that the work is on track. This means that we are one step closer to seeing the plans for this project become a reality and for our qualifying beneficiaries to move into their new homes,” said Councillor Booi.

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On Thursday, 16 January 2020, the City of Cape Town’s Mayoral Committee Member for Human Settlements, Councillor Malusi Booi, visited the Glenhaven social housing project which comprises several different types of housing opportunities to check on its progress. The first social housing units in this Bellville South project at a total cost of approximately R190 million are expected to be handed over in April this year.

The City’s Glenhaven project comprises of 512 social housing opportunities as well 253 Gap rental housing units. The City expenditure on this partnership project of R67 million includes money allocated for the earthworks; internal civil engineering services for the provision of water, sanitation and roads; electricity reticulation; street lighting and the units.

Through the development process, the City has assisted the not for profit social housing institution Urban Status Rentals with all the funding and statutory applications to enable the successful delivery of the housing units.

Councillor Booi was joined by Ward Councillor Mercia Kleinsmith (Ward 9) to check on the progress of the project. The construction of the top structures for the social housing opportunities commenced in October 2018 and is expected to be completed in April 2020. The construction of the Gap rental housing units was completed in February 2019 and units are already tenanted.

‘It is very exciting to see the Glenhaven social housing project progressing well and that the work is on track. This means that we are one step closer to seeing the plans for this project become a reality and for our qualifying beneficiaries to move into their new homes,’ said Councillor Booi.

The City and its partners have 28 social housing projects in the planning or construction phases and five social housing projects comprising of over 2000 units have been completed to date. The City’s commitment to affordable housing in and near urban centres aims to develop greater spatial equality in Cape Town.

The City’s Gap housing market is made up of households which earn between R3 501 and R22 000 per month, and do not qualify for a full housing subsidy. However, these households are eligible for a range of partial housing subsidies and programmes. Registration on the City’s Housing Database is essential.

The selection of beneficiaries for all City housing projects is done in accordance with the City’s Allocation Policy and the City’s Housing Database to ensure that housing opportunities are allocated to qualifying beneficiaries in a fair and equitable manner.

‘We are aware of the housing need that exists in our city and the impact that housing can have on the lives of our residents. As an inclusive and caring City, we are committed to service delivery through the provision of several different types of housing opportunities, including affordable rental housing and Gap housing opportunities, to some of our more vulnerable residents. We are going to have to explore all options if we are to cater to the growing accommodation need in our city. We encourage all relevant private sector players to partner with us and to support us to make Cape Town a greater and more resilient city. Thank you to all our existing partners and I hope we can continue on this path of collaboration,’ said Councillor Booi.

Information about social housing

  • Social housing is rental or co-operative housing for low and lower income households earning between R1 501 and R15 000 per month
  • 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
  • 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 Database
  • 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 prices in an area

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