The 2nd Local Government Property Development Summit was presented with a number of case studies that offer a compelling illustration of using public private partnership between municipalities and funders to deliver affordable housing.
The case studies were drawn from neighbouring Namibia, which was represented by the Association of Local Government of Namibia.
The Namibia case study is Ongos Valley, a development located about 14km north-west of the Windhoek Central Business District (CBD). The development has rent-to-own apartments, as well as sectional title ownership.
Other case studies were all local and include Cornubia, a large complex project in eThekwini, as well as the Western Cape Property Development Forum and the experience of backyard dwellers, also in the Western Cape.
Another case study was a CBD housing delivery partnership located in the Mbhashe Local Municipality in the Amathole District Municipality in the Eastern Cape,
Mbhashe is anchored in Idutywa and covers the towns of Elliotdale and Willowvale.
The project is Orange Heights, which is as an inner-town development in Idutywa, with approximately 150 one-to three-bedroom apartments.
These are through structured leases. Over time, qualifying beneficiaries move toward sectional title ownership, creating asset transfer rather than permanent rental dependency
The model is preferred as it delivers a number of benefits to the municipality, starting with retention of land ownership. It also places lower fiscal strain as the private developer funds it. The model aligns with the Integrated Development Plan, Spatial Development Framework as well Local Economic Development.
Another benefit is that it moves residents towards sectional title ownership.
The project creates revenue stream and uplifts a precinct through economic activity.
Lastly, it creates opportunities for local labour participation during construction and subsequent maintenance and operation and creates opportunities for Small Medium and Micro Enterprises.
The Western Cape Property Development Forum represents a range of stakeholders in the property industry including 16 industry associations in the built environment, construction companies, private developers, consultants and legal and financial professionals.
The forum lobbies for the enforcement of standards in the industry and recently advocated for unlocking of affordable housing opportunities and gives opportunities to small, previously disadvantaged developers.
One of the projects the Forum helped bring about is the flagship R540-million Conradie Park mixed use development project which helps the City of Cape Town respond to the challenge of suitably located social housing among a range of needs.
