PUBLIC HOUSING DIRECTORATE

1
HOUSING IN THE CAPE TOWN
CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD
PUBLIC HOUSING DIRECTORATE
2
CMA housing situation

• Estimated population 3.2 million
• 41 of households qualify for the housing subsidy
• Estimated housing backlog 220 000
  households
• In-migration and new household formation adds
  20 000 households p.a.

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD
PUBLIC HOUSING DIRECTORATE
3
CMA housing situation

• The City of Cape Town is the largest public
  housing landlord in the country
• - 42 000 rental units
• - 21 000 hostel beds
• - 23 000 deferred sale units

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD
PUBLIC HOUSING DIRECTORATE
4
Targeted communities

• Households that qualify for the subsidy
• Councils tenants and home-purchasers
• Hostel residents
• Families in informal settlements
• Families in backyards
• The gap-market i.e. households with incomes
  between R 3 501 R 6000

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD
PUBLIC HOUSING DIRECTORATE
5
Service delivery roles

• Developer
• Facilitator
• Rental housing administrator/ landlord
• Regulator
• Enforcer

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD
PUBLIC HOUSING DIRECTORATE
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Core business

• Obtain land for housing
• Develop new housing
• Administer maintain Councils housing stock
• Manage control informal settlements
• Housing related education training
• Strategy policy formulation
• Facilitate integrated development

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD
PUBLIC HOUSING DIRECTORATE
7
Land for housing

• 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
PUBLIC HOUSING DIRECTORATE
8
Housing options

• Incremental development areas (new)
• Communal toilets
• Communal water supply
• Capital cost R 3 500
• Monthly operating cost R 66 per household

• Full PLS subsidy project
• Serviced site
• Tenure
• Starter house
• Cost
• R 23 100 R 2479 R 25 579

• Basic/ full services
• Serviced site
• Tenure
• Cost
• R 7 500 R 13 500

• Top structure
• Starter house
• Cost
• R 12 521 R 2 479 R 15 000

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD
PUBLIC HOUSING DIRECTORATE
9
Housing options

• Rent to buy or rental
• Serviced site
• Tenure
• Complete house
• Cost
• R 23 000 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
PUBLIC HOUSING DIRECTORATE
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Managed PHP flow chart
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
BENEFICIARIES
BUILDING TEAM Local builders
BUILDING TEAM Local builders
BUILDING TEAM Local builders
CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD
PUBLIC HOUSING DIRECTORATE
11
New housing projects

• The Public Housing Directorate
• Is involved in 60 projects ? 46 628 housing
  opportunities
• Constructs 8 000 houses p.a.
• Develops 3 000 serviced sites p.a.
• Is implementing 12 projects ? accommodate people
  living in 36 informal settlements

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD
PUBLIC HOUSING DIRECTORATE
12
Projects targeted at informal settlements
CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD
PUBLIC HOUSING DIRECTORATE
13
New housing projects cont.

• Is involved in 12 PHP projects ? 1 504 households
• Has supported the activities of
• - iSLP ? 30 000 houses over the past 9 years
• - Cape Town Community Housing Company ?
• 3000 rent-to- buy units
• 95.5 of the 2002/3 subsidy budget was spent

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD
PUBLIC HOUSING DIRECTORATE
14
Emergency relief

• 8 000 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

CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD
PUBLIC HOUSING DIRECTORATE
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CAPE TOWN - SOCIAL RENTAL HOUSING SECTOR
2. TENURE TRANSFER FOR SOME TENANTS -
(TOP) HOUSING DEPARTMENT TOP TEAM MANAGES
PROGRAMME
3. DEVELOPMENT AND MANAGEMENT OF NEW SOCIAL
RENTAL STOCK PUBLIC PRIVATE PARTNERSHIP COUNCIL
AND PVT . SOCIAL HOUSING SECTOR
1. MANAGEMENT OF EXISTING COUNCIL RENTAL HOUSING
STOCK HOUSING DEPARTMENT MANAGES 7 Regional
Managers 26 Decentralised Housing Offices

• 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.

• 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

• 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 Councils deficit on managing housing
  stock
• Increase resident ownership and responsibility
  for housing and local areas.

• 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.

• 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.

PUBLIC HOUSING DIRECTORATE
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HOSTELS

• 825 family units have been developed
• A further 500 units will be completed by
  September 2003
• 8 000 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
PUBLIC HOUSING DIRECTORATE
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Challenges
Policy amendments

• NHBRC
• Savings requirement
• Subsidy procurement policy

Slowing housing delivery down / or increasing
our roles and responsibilities
CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD
PUBLIC HOUSING DIRECTORATE
18
Challenges
Grootboom judgement
Governments 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
PUBLIC HOUSING DIRECTORATE
19
Challenges
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
PUBLIC HOUSING DIRECTORATE
20
Challenges

• 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
PUBLIC HOUSING DIRECTORATE
21
Housing delivery rates
CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD
PUBLIC HOUSING DIRECTORATE
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Implications for subsidy spread
Based on current allocation of subsidy funds
CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD
PUBLIC HOUSING DIRECTORATE
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Challenges

• 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
PUBLIC HOUSING DIRECTORATE
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Conclusion
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
PUBLIC HOUSING DIRECTORATE
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Conclusion
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
PUBLIC HOUSING DIRECTORATE
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THANK YOU
CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD
PUBLIC HOUSING DIRECTORATE