Equal Spaces – Rooftops Canada APRIL 12TH , 2018 Mixed market development & PRECINT-BASED URBAN REGENERATION state of affairs in 3 S.A. METROS Equal Spaces – Rooftops Canada APRIL 12TH , 2018

Johannesburg The City is reviewing sites and buildings for social housing – many on a precinct basis It is moving forward to call for a register of new Social Housing partners A significant challenge is how to work with their land control and release processes

ETHEWKINI: CURRENT CITY directions LAP, Precincts Planning (external consultants) Key priority investment areas: Durban Inner City Regeneration. Several Inner City Infill Sites are in progress of land release for social housing Starting shift from projects to precinct planning/implementation approach Next Durban Precinct Infill Sites RFP will unlock a strategy of building new integrated neighbourhoods with high density and mixed use How can the private sector become engaged Desire to utilize SOCIAL HOUSING as a national investment program to catalyze inner city urban regeneration City’s Development Vision – defines City’s expectations, minimum: density targets, social housing, gap housing (rental, ownership) Align catalytic public infrastructure investment, public spaces social facilities at the precinct level. Besides land, other incentives, what else? Create, support an nurture Inner City property markets

Durban inner city REGENERATION POTENTIAL: +12,000 RESIDENTIAL UNITS INNER CITY LAND DEVELOPMENT PIPELINE: 2018-20 1300 units – 5 sites: Playfair, Lancers, Warwick, Epson, Morans 3500 units – 2 precincts: Umgeni, Drive-in 3800 units – 2 precincts: Victoria Park , Albert Park 2020-22 3400 units – 2 precincts: Warwick, Block AK

PRECINCT PACKAGING APPROACH City – developer role Implementation Framework: City’s role Land Release Strategy City drives Pre-RFP Site Clearance for readiness: Topo; Geotech; Land Surveyor Title Audit, starts Heritage; EIA City issues RFP Developer drives Implementation: Development Concept; Precinct Site Plan; Feasibility & Financial Plan Rezoning; Development Phasing Developer

CAPE TOWN PRECINT APPROACH Creating Integrated Communities through inclusionary and affordable housing developments in well-located urban areas The City’s vision is to move away from the stand alone Social Housing Project to a precinct approach, it includes public engagement The City follows a partnership approach with the intention to collaborate with all relevant stakeholders.

Cape town - mixed market developments Creation of integrated communities in well-located urban areas Responding to the City’s need for densification Address support for public investment that needs urban intensification/population increase: public transportation network, public infrastructure: roads, electricity, water, sewage…

CAPE TOWN Updated Social Housing City Partner Register in 2017: Opened registry country wide to SHRA accredited SHIs Increased City partners from 4 to 20 (14 Conditional) Woodstock-Salt River Precinct Approach 11 Sites Available: 3 Sites already in progress by SHI City Partners; integrates Transitional Housing in precinct planning (2 sites); 1 for future development 5 Sites offered through RFP (Sept 2017- closed Feb 2018)

W-SR PRECINCT: 5 MIXED DEVELOPMENT SITES 6 W-SR PRECINCT: 5 MIXED DEVELOPMENT SITES 6.2 + ha; potentially 1850 Social housing units A: Pickwick Rd – 3.3 Ha; minimum 600 social housing units B: Woodstock Hospital – 1.8 Ha; zoned High Density; minimum 700 social housing units C: Woodstock Hospital Park – park and creche to be incorporated; min. 200 SH units D: New Market – 0.84 Ha; minimum 300 social housing units E: Fruit n Veg – 0.27 Ha; zoned High Density mixed use; retain retail on ground floor; min 50 units

PROPOSALS MUST Ensure the development’s long term financial sustainability and: Maximize delivery of units within the social housing income bracket. Minimum number of Social Housing (SH) units must be accommodated on each site Developments encouraged to contain a mix of incomes, uses, tenure types, and housing typologies. Proposals encouraged to improve on the minimum numbers of SH units. Introduce mixed-income and, where appropriate, mixed-use developments, in accordance with the City’s overarching principles of spatial transformation. Mixed-income housing should consider a combination of social, gap and market - related housing on one site. Provide uses other than residential, where opportunities exist Innovate around building design, use of green technologies that create integrated, sustainable communities. High-density development is encouraged.

PRIVATE SECTOR AND SHI – PARTNERSHIPS? Who can submit a proposal? SHRA accredited SHIs can submit proposals by themselves, or in a partnership agreement with private developers. Private developers can also submit proposals by themselves, or in a partnership agreement with a SHRA accredited SHI to make use of the available government grants for social housing. If private developers choose to submit a proposal by themselves: Expected to provide a minimum number of units per site targeted at households earning within the social housing income brackets. Also expected to develop a mechanism to ensure that these units remain within the social housing income bracket for the life of the project.

CITY’s KEY RFP PARAMETERS proposals must show how the development will further the strategic aims of the City of Cape Town. Design excellence and innovation incl. tenure-blind exterior design, site plan design elements that foster the creation of integrated communities, green technology and building sustainability mechanisms Property Management Model over a 30-year time horizon. Project Financial Plan on new assessment tool (Mixed-Development Financial Template) showing cross-subsidization income flows from market products into the affordable housing component Risk analysis - development, operational, market, management risk, and risk mitigation strategy Community economic development: proposals with quantifiable targets of the job opportunities created as a result of the proposed development.

DISCOUNTED LAND COSTS PROPORTIONATE TO THE AFFORDABLE HOUSING COMPONENT Land Price and Terms based on the following options (not available for private developers if they submit bid by themselves) a) Long-term (30 year) leasehold applicable on social housing components of the development, made available at a nominal rate of approximately R150 per annum or, b)  Land Sale based on a nominal value calculated at 10% of the current market valuation. c)  Land sale at market value based on the current market valuation on other residential components and/ or complementary land-uses.

CAPE TOWN INCENTIVES TO THE AFFORDABLE HOUSING COMPONENTS 50% reduction in the development charges, Municipal planning and building fees: waiving of planning and building charges. Rates exemption for social housing component or rebates according to the value of the affordable housing units, to reduce the operational cost of units and with it the rental levels. Assistance with the necessary planning approvals process, where appropriate. The development proposal should be viable based on the minimum incentives indicated.

POTENTIAL ADDITIONAL INCENTIVES On a project by project basis, the City will consider awarding other incentives in return for additional benefits. These may include: • Reduction in the parking ratios • Increases in density and height conditions • Application for a municipal Densification Top-Up Grant subsidy or interest free loan • Application for a Green Bond

PROGRESS TO DATE Many Proposals Received on Woodstock Salt River RFP In Progress: Proposals in screening stage for bid compliance Next step: screened proposals to be presented for 2-weeks of public viewing and popular voting Subsequent steps: Evaluation of Proposals (approximately 4 months) In addition: 2 additional land RFPs already issued in 2018 directly to City’s Partners Additional land parcels and multiple parcels from Parow (a new large Precinct) are scheduled for release during 2018

Contact: Lizette Zuniga Tel: +27 076 191 5249 E-mail: zuniga@rooftops.ca or, zuniga.rooftops@gmail.com