BUILDING: Multi-Million Rand Housing Project
Recent Western Cape Business News
The City of Cape Town last Friday, launched a R119 million social housing project that will deliver 450 rental units in Steenberg. The Mayoral Committee Member for Housing, Councillor Shehaam Sims, officiated at the event.
The project will be financed by way of R31 million from Provincial Housing subsidies, R57 million from National Social Housing subsidies and R31million from loan funding provided by the NHFC(National Housing Finance Corporation) and DIGH (Dutch International Guarantees for Housing).
Councillor Sims said: “The goal of these social housing projects is to provide good quality rental housing in well located parts of the city at rentals affordable to people on low incomes (R2500 – R7500). The City would like to replicate this project throughout the Metropole and calls on provincial and national government to continue their collaboration with the City in this regard.”
Social Housing is a rental housing option mainly delivered by social housing institutions aimed at low–income groups earning between R2500 to R7500 per month.
The City has signed a five year Public Private Partnership (PPP) agreement with SOHCO, Communicare and the Cape Town Community Housing Company (CTCHC).
In so doing, the City will provide leasehold land/buildings and access to subsidies, while the three companies will set up the financial arrangements with City support and also develop and manage the rental stock.
In the first of the five private/public partnerships, that will see an additional 5000 houses being built by the end of 2013, the City of Cape Town and SOHCO will start work on 450 houses in Steenberg.
SOHCO Amalinda Housing is a Section 21 non-profit distributing company committed to the development and management of social housing in Buffalo City, Cape Town and Durban. The company’s primary purpose is the development of quality, affordable residential property for low income households and former disadvantaged members of the community who qualify for the government housing subsidy. This includes families with special needs such as the disabled, young adults with a regular income and single parent families.
In the City’s other scheduled social housing partnership projects, 492 houses will be built in Dillon Lane with SOHCO and 235 houses will be built in Milnerton and Bothasig in partnership with Communicare. Several other social housing projects will be announced shortly.
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