CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD  Estimated population = 3.2 million  41% of households qualify for the housing subsidy  Estimated housing backlog = households  In-migration and new household formation adds households p.a.

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD  The City of Cape Town is the largest public housing landlord in the country: rental units hostel beds deferred sale units

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD  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 – R 6000

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD  Developer  Facilitator  Rental housing administrator/ landlord  Regulator  Enforcer

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD  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 TOWN ISIXEKO SASEKAPA STAD KAAPSTAD  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 TOWN ISIXEKO SASEKAPA STAD KAAPSTAD Incremental development areas (new)  Communal toilets  Communal water supply  Capital cost + R  Monthly operating cost + R 66 per household Full PLS subsidy project  Serviced site  Tenure  Starter house  Cost R R 2479 = R Basic/ full services  Serviced site  Tenure  Cost R – R Top structure  Starter house  Cost R R = R

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD Rent to buy or rental  Serviced site  Tenure  Complete house  Cost R savings + loan Informal settlement upgrading Step 1:Rudimentary services (same as incr. upgrade areas) Step 2:Basic/ full services Step 3:Top structure Hostel upgrade Develop family units through  conversion of existing buildings  construction of new buildings  upgrading of existing buildings

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD PROVINCIAL HOUSING DEVELOPMENT BOARD BENEFICIARY COMMUNITY'S REPRESENTATIVE FORUM CITY OF CAPE TOWN Primary Support Organisation SECODARY SUPPORT ORGANISATION Manages project and is responsible for building quality PROJECT MANAGEMENT SERVICE Account administration, certification etc. HOUSING SUPPORT CENTRE Construction management BUILDING MATERIALS SUPPLIER/S BUILDING TEAM Local builders BENEFICIARIES BUILDING TEAM Local builders BUILDING TEAM Local builders

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD The Public Housing Directorate:  Is involved in 60 projects  housing opportunities  Constructs houses p.a.  Develops serviced sites p.a.  Is implementing 12 projects  accommodate people living in 36 informal settlements

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD  Is involved in 12 PHP projects  households  Has supported the activities of: - iSLP  houses over the past 9 years -Cape Town Community Housing Company  rent-to- buy units  95.5% of the 2002/3 subsidy budget was spent

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD  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 Consultation  Setting up Local Housing Organisations  Managing post transfer organisational support thro Service Organisations To Achieve  Sustainable transfer of maximum 2000 units over 4 years  Help establish sustainable Local housing Organisations as vehicles for Tenant ownership  Increase potential investment of owners and private sector in this stock  Reduce 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 PARTNERSHIP COUNCIL 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 areas  Public/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 MANAGES 7 Regional Managers 26 Decentralised Housing Offices Provision Good Basic Housing Service – Decentralised  Asset Maintenance – Repairs  Allocation  Rent Collection  Arrears Management  Tenancy Matters  Tenant Consultation and Representation Defined and established service standards and service access To Achieve  Increased rentals where affordable  Subsidy for those who cannot afford  Improved levels of payment  Reduction in deficit  Improved planned and reactive maintenance of units  Improved commitment and buy-in from tenants  Greater mobility through Council stock  Higher levels of tenant satisfaction with service and greater tenant responsibility.

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD  825 family units have been developed  A further 500 units will be completed by September 2003  family units will be developed over the next 10 years  Building maintenance and infrastructure improvements have taken place LANGA: FAMILY ACCOMMODATION

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD NHBRC Savings requirement Subsidy procurement policy Slowing housing delivery down &/ or increasing our roles and responsibilities Policy amendments

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD 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 TOWN ISIXEKO SASEKAPA STAD KAAPSTAD 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 TOWN ISIXEKO SASEKAPA STAD KAAPSTAD  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

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD Based on current allocation of subsidy funds

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD  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 TOWN ISIXEKO SASEKAPA STAD KAAPSTAD 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 TOWN ISIXEKO SASEKAPA STAD KAAPSTAD 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 TOWN ISIXEKO SASEKAPA STAD KAAPSTAD THANK YOU