Construction is underway at the City of Cape Town and Social Housing Institution Madulammoho Housing Association’s Maitland Mews social housing project. This 204-unit development forms part of a broader precinct development comprising some 1 200 affordable housing units in total. A site visit took place on 21 October 2021, to check on the progress with the civil works. Read more below:
The City’s Executive Mayor, Alderman Dan Plato said that this project is one of many well-located social and affordable housing projects that is currently under way in various urban centres across Cape Town.
“This project forms part of the Maitland Metro rejuvenation project and intends to develop at least 1 200 residential opportunities over the next eight years in this centrally located node. The City sold the land to the social housing institution at 10% of the market value as part of its efforts to release well-located land for affordable housing in Cape Town. The land release at a major discount is vital to ensure the viability of social housing projects. This project also potentially makes way for the financing of further affordable housing units on the larger site of this precinct development through the financed-linked individual subsidy (FLISP) – a subsidy for first-time homeowners that is administered by the Western Cape Government, working with the banking sector,” he said.
Partnerships help to unlock affordable housing
According to the City’s Mayoral Committee Member for Human Settlements, Councillor Malusi Booi, about 350 new jobs are being created from local labour during the construction phase, while eight permanent positions will be created post construction. The development is situated close to public transport, schools, places of worship, a library and a police station; is a short walk to Koeberg and Maitland Stations; it is on the MyCiTi bus route and is less than seven kilometres away from the Cape Town central business district.
“The City’s Social Housing Partnership Programme started in earnest in 2014 and it is great to increasingly see our dream of more affordable, well-located housing come to life. Thank you very much to our magnificent Madulammoho Housing Association partner. We are stronger as a city to have partnerships such as these and we look forward to more partnerships on this site and across the metro to help eradicate apartheid era spatial planning and unlock more affordable housing opportunities together,” said Councillor Booi.
Madulammoho Housing Association
“For Madulammoho Housing Association, this is more than a development, it is a calling and passion to help to enable a bright future for many people who are not able to enter the housing and rental markets without assistance to live closer to where they work. Madulammoho is partnering with Calgro M3 as the turnkey development partner in the development of 204 social housing residential units and a further nine units as part of training facilities on this site. We are hoping to deliver all units by the end of November 2022, if all goes according to plan. Importantly, the date of the tenanting process will open in July 2022 and more communication will follow. Our intention is to look for more social housing opportunities in the years to come, especially with great partners such as the City of Cape Town,” said Madulammoho Housing Association’s Chief Executive Officer, Renier Erasmus.
Typical potential tenant profile
Preference will be given to people who are registered on the City’s Housing Needs Register and those living in Maitland or to those who live some distance away, but are working in Maitland. This is done to reduce the cost and time of traveling.
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Female-headed households are also a key part of the overall tenanting strategy. Affordability is vital and each tenant is assessed to make sure they have a stable income and can afford the rent for without rental income, these projects cannot succeed. The ability and willingness of tenants to pay rental money is key in social housing developments.
Cape Town social housing progress at a glance
- There are approximately 2 000 social housing units already in the pipeline for the central Cape Town area.
- Along the Voortrekker Corridor and near important economic nodes, around 2 500 social housing units are nearing completion or are about to commence construction
- There are approximately 6 500 units currently in Cape Town’s overall social housing pipeline and around 50 land parcels city-wide with ongoing investigation into various opportunities
Facts about social housing:
- 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 as the rental money is used for the day-to-day operation and upkeep of the complex.
- 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 Needs Register.
- 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 values in an area.
For more information:
https://www.capetown.gov.za/City-Connect/Apply/City-housing-and-properties/Housing-opportunities/Apply-for-social-housing
