Public misinformed over housing proposals for Tafelberg site

I AM writing to correct a misperception created by various reports regarding the recently published notices calling for public comment, in respect of the Tafelberg property in Sea Point.

Financial modelling, showing cost estimates of building social housing on the property, was released for public comment almost two weeks ago, on November 18, by the Department of Transport and Public Works.

It is important for the public to be informed that the financial modelling is not a proposal for housing on the Tafelberg site, as implied by most media reports.

It is simply a set of figures to assist the public to comment on whether or not it is financially viable to build social housing on the property, within the housing subsidy regime determined nationally.

The purpose of the model is to enable the public to interrogate the cost estimates contained in the model’s spreadsheets, and submit their comments on the viability and replicability of these figures within the framework of the housing subsidy policy that applies to social housing developments.

These new comments will then be put before the provincial cabinet, along with the model itself, to assist the cabinet in taking its decision on the potential sale of the property to an independent school.

It is therefore wrong to report that the financial modelling is a proposal for housing on the site. It’s not.

The modelling was necessary because none of the 8 000-odd comments, received during the previous round of public consultation on Tafelberg, made any reference to financial viability.

Affordability was all but ignored in all the comments, regardless of whether a comment favoured housing on the site or was opposed to it. This made it impossible for the provincial cabinet to take a rational decision, as no concrete financial data was available to assist in doing so.

The provincial executive therefore requested the Department of Transport and Public Works (DTPW) to source a financial model to inform the debate.

Given the province’s commitment to transparency and consultation, it was further agreed that the public would be invited to comment on the content of any financial model sourced by DTPW, before it would be put before cabinet.

The financial model which has been published for comment was obtained solely because cabinet requested it. It is premature and misleading to suggest the model is a recommendation by the department. It is not.

Rather, it is a PDF spreadsheet containing the base financial assumptions, conditions and methodology that are material when considering the financial implications of any social housing development on this site.

This model has now been published for the purpose of enabling any member of the public (who previously commented or not) to provide input on the content, assumptions, methodology and conclusions contained in the model.

In this regard I confirm that all interested and affected parties, private and public, are invited to comment on the model. Once the commentary period has closed on January 30, all comments received will be collated and submitted to the Provincial Executive, along with recommendations from DTPW, as the custodian of the site.

I trust this clarifies the position and purpose of the financial model that has been advertised for comment.