Call to take part in inclusionary housing process

THE CITY might require private sector developers that apply for additional rights to contribute to the provision of affordable housing.

The City’s Transport and Urban Development Authority was established in January last year to expedite the delivery of housing, among other priorities. Since then, we have nearly doubled delivery and, for the first time in the 18-year history of the metro, have exceeded the City’s housing delivery target.

However, the backlog of housing is large and growing; and national grants are shrinking. A revision to the country’s national planning legislation introduced a uniform, effective and comprehensive system for planning decisions, a key aspect of which was the principle of spatial justice and inclusionary development.

Since taking responsibility for the planning department last year, I engaged with experts regarding the concept of inclusionary development. Inclusionary housing refers to the requirement to include affordable housing in cases where municipalities grant additional rights to a development.

This is common practice in most developed cities such as London and New York. I met the deputy mayor of New York, international experts from the US Lincoln Institute of Land Policy and various local experts regarding this mechanism and its possible role in assisting with affordable housing provision, apartheid redress and spatial access.

I requested City officials to develop a concept document that could form the basis of discussions in preparation for an inclusionary housing policy for Cape Town.

The City will initiate discussions with various stakeholder groups in pursuit of solutions that will assist us to develop an economically viable draft inclusionary housing policy.

Where people live matters – location determines access to job opportunities, schools, public transport, hospitals and public services. Lower- and middle-income households find it difficult, if not impossible, to find well-located properties they can afford to buy or rent. Inclusionary housing could assist with the provision of more affordable units within welllocated areas and allow our society to develop in a more integrated, inclusive manner in line with international best practice. I want to reiterate that:

The concept document is a starting point for engagement on how the City could implement inclusionary housing.

The policy must not be a deterrent for the valuable construction industry and place at risk the thousands of jobs which this sector sustains.

It is proposed that the contribution the developer could make in terms of affordable housing should be based on a formula, which takes into account the land value and development cost, and might accommodate an on-site, off-site or fees-in-lieu contribution, as per international norm.

The proposed requirement for inclusionary housing will not impact on property or development rights. It is expected that the mechanism will only apply where developments are seeking additional rights.

Often the additional rights being sought arise because of increased property demand in an area – such as around Moullie Point after the Green Point Park redevelopment, or where MyCiTi services have increased demand for access. The requests for additional rights arise from a return on public investment in infrastructure of an area, and the concept of inclusionary housing as a requirement within the additional rights is one way in which citizens can share in the value created through public investment.

We want to work with various sectors on refining the concept document in an attempt to reach a broad consensus on how this could be implemented in Cape Town.

We want to work with industry leaders, NGOs, experts and residents – to ensure that we develop a policy that is workable, implementable and practical. I encourage interested stakeholders to contact my office or their relevant representative stakeholder organisation to request to be included in this process.