Other hurdles currently hampering delivery

Information and education: Local government and its various departments and officials are often not aligned with the Inclusionary Housing agenda, which Future Cape Town’s Rashiq Fataar says results in red tape, barriers, delays and “a wilderness of policy and regulations to navigate without support and awareness of the cost implications of delays”.

He acknowledges that local government officials are not necessarily sufficiently informed about how property development works, including finance, design and the realities of building in the city.

“An intensive education programme for officials will provide a good foundation for developers and local government to understand each other’s positions and their needs. In addition, a serious engagement is required on how municipal land use management should be set up so it better aligns with the political priorities and socio-economic goals of a city.”

Process re-evaluation: The lengthy planning and other regulatory processes are already a roadblock to the speedy delivery of housing by the private sector, Fataar says. Municipalities could consider undertaking a significant proactive rezoning process of areas that show high potential for well-located mixed-use developments, and where the inclusion of affordable housing units is a condition for additional development rights, such as, for example, on the edge of high-density areas or areas zoned for high density development.

Innovative financing: Fataar says banks also need to come on board by becoming more flexible and engaged in financing innovative projects that promote inclusionary housing.

“We require banks to offer finance, on less restrictive terms, in cases where people are moving closer to work and spending less on transport.

Managing the allocation of units: In addition, he believes a new form of housing agency needs to be established to manage the allocation of affordable and inclusionary housing units to appropriate households, and ensure these units remain affordable for at least 20 years.

“Such an agency will be able to manage affordable housing that falls within already used definition and those outside the Social Housing or subsidylinked housing, which are already managed through existing agencies.”

PICTURE: CITY OF CAPE TOWN, TRANSPORT AND URBAN DEVELOPMENT AUTHORITY The City aims to bring people closer to jobs by developing affordable housing on well-located land.