City’s Bothasig Gardens Phase 2 social housing project taking root

Today the City of Cape Town’s Mayoral Committee Member for Human Settlements, Councillor Malusi Booi, visited the Bothasig Gardens Phase 2 social housing project to check on its progress. This phase of Bothasig Gardens will provide social housing opportunities to 314 qualifying beneficiaries and their families. Read more below:

This project is an example of the City’s commitment to enabling and providing affordable housing in well-located areas.

The first phase of the project has been completed and provided 120 social housing opportunities. Construction on the second phase of the project started in November 2019 and the project is expected to be completed by the second quarter of 2021, if all goes as planned.

Councillor Booi was joined by Ward Councillor Helen Carstens (Ward 5) to check on the progress of the project.

‘This project’s proximity to Century City as well as the Cape Town city centre is an excellent indication of the City’s commitment to affordable housing on suitable land in and near urban centres. It is exciting to see the second phase of the Bothasig Gardens social housing project progressing well and that the work is on track for completion within the next year. We are closer to seeing this project become a reality and for our qualifying beneficiaries to move into their new homes. It is also a good example of how we must build and expand on partnerships to tackle the demand for more affordable housing in Cape Town and other parts of the country for that matter,’ said Councillor Booi

The Social Housing Regulatory Authority’s social housing grant for this project is more than R85 million and social housing institution Communicare contributed equity of more than R46 million while the City contributed land and bulk services at a cost of about R20 million. The City thanks its partners for the excellent work.

Social housing, which offers affordable rental units for families with a combined monthly income of between R1 501 and R15 000, refers to housing in well-located areas on suitable land constructed and managed by the City’s social housing partners or social housing institutions.

The City has delivered more than 2 000 social housing opportunities in partnership with social housing institutions in Belhar, Steenberg, Scottsdene and Brooklyn over the past six years. In addition to this project, the City has another three social housing projects under development which, combined, are expected to create more than 2 000 housing opportunities.

‘We are aware of the acute housing need that exists in our city and the impact that housing can have on the lives of our residents. The City is committed to service delivery through the provision of several different types of opportunities, including affordable rental housing such as this project provides. 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.

The City and its partners have 28 social housing projects in the planning or construction phases. The City’s commitment to affordable housing in well-located areas aims to develop greater spatial equality in Cape Town.

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.

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

Source: City Of Cape Town