City of Cape Town invites offers for social housing development in Parow

Posted by Tsoku Maela on 28 February 2023

The City of Cape Town has recently released a tender inviting offers for the development and sale of the Parow sub-precinct 1 site near the library and driving licence testing centre.

The City had advertised another tender for a second precinct in the Parow area last week, along the Voortrekker corridor. These prime locations have been earmarked for social housing developments.

The two projects will offer more than 600 social housing opportunities upon completion. The proposal to sell and develop these well-located sites is part of the City’s Accelerated Land Release for Affordable Housing Programme aimed at unlocking development opportunities throughout the city.

Mayoral Committee Member for Human Settlements, Councillor Malusi Booi, said, ‘The Social Housing Programme is a critical spatial intervention where the City leverages its strategically located land assets to foster change in the way that the City of Cape Town functions. With the release of the Parow sites, the City is leveraging its land assets as a regeneration strategy to stimulate private sector investment in the area.

‘We are committed to enabling social housing in and near urban centres of the Cape Town metro. The City has more than 50 parcels of land in the pipeline for release to the private sector for affordable housing development in the short- to long-term.’

Councillor Malusi Booi added, ‘We currently have three social housing projects under construction, with a combined yield of more than 1 300 opportunities. A further estimated 1 600 social housing opportunities will also be unlocked by releasing five City-owned land parcels within the city. This demonstrates the City’s commitment to developing land for social housing on well-located land, close to economic opportunities and public transport.’

For more information and how to apply for social housing opportunities, visit: 

https://www.capetown.gov.za/City-Connect/Apply/City-housing-and-properties/Housing-opportunities/Apply-for-social-housing

Facts about social housing:

  • It is managed by accredited social housing institutions (SHIs)
  • SHIs are solely dependent on rental income. They receive no operational grants. They are able to service their debt finance through rental income
  • As with any rental contract, tenants formally enter into lease agreements. The landlord is the SHI
  • If tenants do not adhere to their lease agreements, the responsible SHI will follow the necessary legal process. Tenants must therefore pay to stay as the rental money is used for the day-to-day operation and upkeep of the complex
  • The City has nothing to do with the day-to-day management of SHIs, the rental amount or evictions for not paying
  • Before potential beneficiaries can apply for social housing, they are required to register on the City’s Housing Needs Register
  • Projects are developed on well-located, accessible land in and near urban centres
  • It is not low-income subsidised government housing, such as Breaking New Ground (or the commonly called RDP housing and it is not City Council Rental Units)
  • It is managed with 24-hour security and access control
  • The City may sell City-owned land at a discounted price for social housing developments to make projects economically viable
  • Social housing offers improved access to social facilities and other amenities
  • A single grant subsidy can benefit on average five households versus one household for Council rental units
  • Social housing adds value to vacant pieces of land
  • Social housing has the potential to improve property values in an area.

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