Housing Situation in Cape Town: 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 • 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 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

6. Core business • 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 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

10. Managed PHP flow chart PROVINCIAL HOUSING DEVELOPMENT BOARD CITY OF CAPE TOWN Primary Support Organisation BENEFICIARY COMMUNITY'S REPRESENTATIVE FORUM PROJECT MANAGEMENT SERVICE Account administration, certification etc. SECODARY SUPPORT ORGANISATION Manages project and is responsible for building quality 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

15. CAPE TOWN - SOCIAL RENTAL HOUSING SECTOR 1. MANAGEMENT OF EXISTING COUNCIL RENTAL HOUSING STOCK HOUSING DEPARTMENT MANAGES 7 Regional Managers 26 Decentralised Housing Offices 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 • 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 Council’s deficit on managing housing stock • Increase resident ownership and responsibility for housing and local areas. • 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. • 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. PUBLIC HOUSING DIRECTORATE

16. HOSTELS LANGA: FAMILY ACCOMMODATION • 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 CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD PUBLIC HOUSING DIRECTORATE

17. 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 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 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

22. Implications for subsidy spread Based on current allocation of subsidy funds CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD PUBLIC HOUSING DIRECTORATE

23. 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

24. 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

25. 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

26. THANK YOU CITY OF CAPE TOWN ISIXEKO SASEKAPA STAD KAAPSTAD PUBLIC HOUSING DIRECTORATE