SH MIXED DEVELOPMENT – ANALYTICAL FRAMEWORK Mixed Dev. Workshop 12-13 April 2018

SH PRECINCT BASED URBAN REGENERATION SH as catalyst for Urban Regeneration Planning on a precinct basis Defined space for delivery planning Creates and protects space for low and moderate income households in gentrifying areas Intervention in land market in area Uses govt. land to achieve socio economic objectives Leverage of extra govt. investment to stimulate pvt development investment

SH PRECINCT BASED URBAN REGENERATION Close co-operation between key stakeholders: Municipality Province SHIs Developers NGOs and CBOs

LAND BUILDINGS THE CRUCIAL COMPONENTS Govt land and buildings crucial lever for Municipality to achieve socio -economic objectives Strategic approach to use and release of land to maximise urban development intent Use SH Transitional housing Mixed developments SH and other for profit opportunities Release To whom? At what price? When?

MIXED SITE DEVELOPMENT Critical component to consider in Precinct Strategic Land Plan. Why? Right socio economic neighbourhood mix Cross subsidising from ‘for profit’ to SH to subsidise shortfalls Latter can help with cost of densification What mixes? Non profit’ with ‘for profit’ (not ‘for profit’ with ‘for profit’) Best mix: Socio economic and urban dev. Objectives Medium and long term returns to maximise cross subsidisation and therefore viability

MIXED SITE DEVELOPMENT Choices for mix? Social Housing Affordable rental (gap), ‘High-end’ rental Sectional Title Ownership Social facilities? Market office rentals Market commercial space INCLUSIONARY HOUSING Can use of planning rights in private developments to achieve contribution to socio economic objectives either on site or off site. Very important but not subject of this workshop

SO LETS GO… Understanding of purpose of mixed market site development Understand the options How to assess best mixed development use Financial analysis of of short medium and long term site development alternatives Fitting it into the municipal procurement processes Understanding opportunities and constraints within South African context Identify actions/activities to sharpen use of mixed use development in SA metros

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