Through the Land Availability Agreement (LAA) that was entered into between the Khayelitsha Community Trust (KCT) and the City of Cape Town (CoCT), KCT has development rights over a 22Ha piece of land for housing development purposes. The KCT subsidiary – Khousing (PTY) Ltd – is responsible for implementing the housing mix of typologies within the Khayelitsha CBD. Currently, only the bulk infrastructure and internal services have been installed on 6 hectares marking Phase 1 of the housing development through the Urban Settlements Development Grant (USDG) funding. Since the process encountered unfortunate delays due to land transfer matters and the recommendation to change the housing product from institutional subsidy housing to affordable housing units. This attracted adverse policy implications to the effect that the R11.6 million USDG must therefore be repaid unless any of the state subsidy instruments is to be utilized as end-user finance. The matter has since been resolved and Phase 1 development will comprise 368 institutional housing subsidy units.
As above mentioned, the services have been installed excluding the electrical services due to risks that are associated with safety of underground electrical cables. Negotiations are underway to apply for another USDG funding to cover the installation of electrical services and ESKOM had already indicated that the project will be gazette for in the 2019/2020 financial year. Other key milestones include the following: The establishment of the Project Steering Committee (PSC) which is inclusive of representatives from City of Cape Town, KCT, local ward committees, etc. The appointment of the beneficiary administrator responsible for verifying qualifying beneficiaries and liaise with the City’s Allocations Committee for final approval of the beneficiary list. The fact that the formulation of the Business Plan and the Operational Plan has commenced due for submission to the City by end of the year and approval is expected in March 2019. The appointment of the main contractor as soon as the business plan is approved, and funding made available for project implementation. The construction of the 368 units envisaged to take place by June 2019.
The 368 Phase 1 units will all be single residential units and the City has already indicated that in promoting optimal land use management only densification layout plans will be approved. It is on this basis that KHousing has already begun with engaging developers that are amenable to building medium density units
In essence, this is the type of development planning or typologies the City would like us to pursue as it is also enshrined in the City’s latest development guidelines. The roll-out of subsequent phases will comprise of various financing models, e.g. rent-to-buy scheme, outright purchase and the Finance Linked Individual Subsidy Programme (FLISP) model. KHousing is already in discussion with a group of housing professionals called Zakhe/VBZ Projects for production of a development scheme that will cover the balance of the remaining 11Ha piece of land. It is envisaged that a memorandum of understanding (MOU) will be entered into both parties as soon as preliminary designs are in line with City of Cape Town policy framework.
Phase 1 is targeted to accommodate Khayelitsha residents who qualify on the basis of earning a jointly monthly income of up to R3500, the planned subsequent phases will be open to those who qualify for bond registration irrespective of their background. On the other hand, discussions are ongoing with the Departments of National Human Settlements’ Military Veterans Unit for accommodation of 100 military veterans through the housing subsidy allocated for the said grouping. Khayelitsha is in need of rental stock for those who do not qualify for subsidy units and not being eligible for bonds; though they do have a source of income. Efforts will be made to accommodate this market.
The area of Khayelitsha is predominantly filled with informal settlements dwellings though there is a sizeable number of people who chose to reside out of Khayelitsha due to a lack of decent quality housing. It is therefore imperative that the type of housing development that KHousing promotes be aimed at delivering settlements of uncompromised social acceptance where people and children can live, play and pray.