Monday, July 26, 2010

2000 subsidised houses in new development

Thousands of families who have been on the City of Cape Town's housing waiting list for years would get first pick if subsidised homes are built on a piece of land valued at R70-million near Zeekoevlei.

The city has proposed that about 2,000 subsidised houses be built on the land between the vlei and Pelican Park and that the development be integrated with that of 1,000 houses designed for the market and a strip of mixed-use properties.

Subsidies provided in line with the National Housing Subsidy Scheme would be used for the 2,000 homes, while a developer would fund the rest of the development.

The developer would also build the subsidised homes and be required to contribute funds for these to ensure they were of a quality that would not compromise the value of the homes built for the market.

The 80 hectares of land earmarked for phase one of the development lie between Strandfontein Road and Zeekoevlei, and between Pelican Park and Eagle Park.

During the environmental impact assessment phase, environmentalists expressed concern about the city's proposal to develop the eastern shore of Zeekoevlei, one of the most highly sensitive areas in Cape Town.

The land has been valued at R70 million or R825,000 a hectare. Most of it is covered in dense Port Jackson and gum trees.

Peter Oscroft, the project co-ordinator, said the plan had been a long time coming and the mayoral committee had agreed about two years ago that the subsidised homes be allocated to people living within the subcouncil's borders.

"(Mayco) agreed that 70 percent of opportunities would be offered to the people from that sub-council and who had been on the waiting list the longest, and 30 percent to people who qualified and were on the waiting list in other parts of the metro," Oscroft said.

The city would invite proposals for the development of the "total package" - the subsidised homes as well as those designed for the market and the mixed-use properties.

Prospective developers would be required to include in their tenders a price offer for the land to be used for the market components.

The developer whose tender was accepted would be required to buy from the city and take transfer of the section of land destined for the homes and properties to be marketed.

The land earmarked for subsidised homes would be transferred to people who qualified for subsidies.

Oscroft said the city had compiled a list of 3,000 people who had been on the housing waiting list longest.

To protect the value of the neighbouring properties, the city would require, as a condition of the development agreement, that the developer contribute funds for the subsidised homes to ensure they were of a better quality than the standard subsidy home.

Oscroft said a number of residents in neighbouring areas had expressed concern about the effect the development would have on the value of their homes.

"During the public participation process there was as strong message," Oscroft said.

"People were concerned about the value of their properties being lowered by the development.

"The developer can improve the quality and allay people's fears."

Because it was undeveloped and infested with invasive Port Jackson, the land was "extremely vulnerable to illegal occupation, use as a refuge and cover for criminal activity, illegal dumping and fires".

"All of these risks will be minimised as the land is developed and occupied," the city housing department has said.

- Cape Times

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