The City has plans to release a further 10.4 hectares of housing land in addition to the already approved 42 hectares of land to be developed for affordable housing for the GAP housing market.

The proposed release of this land will further enhance the City's ability to deliver homes into the key GAP market.

The additional land is next to the 3,4ha initially identified in Wallacedene. The seven other tracts of land are at Maitland (0,87ha), Rugby (1,8ha), Westlake (22,1ha), Ottery (2ha), Wetton (6,6ha), Southfield (2,9ha), and Langa (2,4ha).

The identification and release of land for affordable housing forms an integral part of the groundbreaking agreement by Executive Mayor Helen Zille and three commercial banks - Absa, Nedbank and Standard Bank - in May this year.

The City has already advertised its intent to release the eight tracts of land and has tasked the participating banks to prepare innovative development plans for each of the eight areas. The banks will present their development proposals to the City in February next year.

According to Cllr Dan Plato, Mayoral Committee Member for Housing, there will be a special focus on the lower end of the GAP market as well as on backyard dwellers who fall within the specified income bracket.

The GAP and affordable housing markets consists of people who earn between R3 500 and R10 000 (household income) per month. Within this bracket people fall outside of the general State housing subsidy available to people earning under R3 500 per month, but also don't earn enough to participate in the competitive property market in Cape Town.

"There is great interest in this alternative approach to affordable housing. The participating banks, contractors and residents have expressed their enthusiasm since Council declared its intent to release the land," says Cllr Plato.

People earning between R3 500 and R7 500 will qualify for a subsidy, dependent on their income, from government. The City estimates that some 165 000 families fall into the GAP and affordable housing markets.

"Once all procedural requirements have been met, the City Manager has been authorised to approve the allocation of the individual parcels of land to the bank which comes up with the most innovative development option. The criteria are based on the quality of the product, the price ratio and sustainability of the proposals," says Cllr Plato.

The planning for the development of each portion of land will be undertaken by means of the Land Use Planning Ordinance and where applicable the relevant Environmental Impact Assessment procedures will be undertaken. Both of these procedures allow for public consultation so that the proposed developments will fit into the surrounding environment.

People who qualify for the GAP or affordable housing opportunities will then be able to apply directly to the relevant bank to obtain one of these homes.

"Home loan packages could include set-up loans whereby the interest rate is increased over the duration of the loan period, a system where equity on the housing unit is shared between the owner and the financial institution, or the reduction of legal and registration fees.

"These land parcels are well located in terms of public transport, access to work opportunities, educational facilities, and recreational facilities, and can be easily incorporated into the City's municipal service structure," says Cllr Plato.

The sizes and prices of units will only be determined once the banks have submitted their respective development plans.

Source: Cape Business News, 20 Oct 2006


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