Human Settlements and Infrastructure fund deliver first Social Housing Project
In delivering on a mandate to house the nation, Human Settlements Minister Mmamoloko Kubayi has launched the first multimillion-rand social housing project jointly funded by the Social Housing Regulatory Authority and the Infrastructure Fund - a blended financing instrument announced by the President to enable the efficient execution of socio-economic infrastructure projects in the country.
This weekend’s successful launch and welcoming of the first 331 tenants of the R464million Goodwood Station Social Housing Project in Cape Town, follows engagements led by Kubayi with Infrastructure Fund to accelerate the delivery of affordable housing and rental stock for the gap market. Accordingly, Infrastructure Fund has invested over 100 million towards the construction of the Goodwood Station Social Housing, nestled alongside Voortrekker Road and ultimately addresses the apartheid spatial planning, by enabling easy access to key transportation routes, essential services and places the residents near the workplace.
As part of the work with the Department of Human Settlements to convert some state-owned assets across the country to affordable housing including rental stock, the development is built on a well-located land on the northern side of the Passenger Rail Agency South Africa railway. The project is expected to yield 1055 units upon completion year, which includes 85 bachelor units, 322 one-bedroom units, and 648 two-bedroom units.
Reflecting on the successful delivery of the development, Minister Kubayi highlighted that the expansion of the social housing to respond to the gap market, enables people to have easy access to funding so that they can provide shelter for their families.
“Social housing remains an important government programme to meet the address the housing needs of the gap market, crowding in private sector investments, and building cohesive and integrated communities. The integration and alignment of all housing grants is important to ensure synergy and increased delivery of sustainable human settlements,” said Minister Kubayi.
The Minister added: “The President gave me a clear mandate to house the nation, to provide shelter for South Africans, particularly the most vulnerable in our communities. The delivery of yet another successful social housing project in the City of Cape Town is a clear indication that government is on course to respond to the housing needs to the gap market. South Africans do not expect less from us. They expect service delivery and are not asking for much.”
Backyard and informal settlements dwellers mostly cannot qualify for BNGs also referred to as RDPs and are urged to seize social housing opportunities. The government-subsidized social housing provides rental opportunities to beneficiaries with monthly household income ranging from R1 850 to R22 000.
“Importantly, for these programmes to succeed, as beneficiaries you must pay your rent on time and in full. We have done our part, do the same. Honour your rental obligations “emphasized the Minister.
Infrastructure Fund Chief Investment Officer, Mr Mohale Rakgate said they remain fully committed continue designing programmes to help the Department of Human Settlements to deliver projects at scale. Infrastructure Fund plans to work with the Department through one of its agencies the Social Housing Regulatory Authority (SHRA), to deliver over 10 new housing projects each year.
Meanwhile, Western Cape MEC for Infrastructure Tertuis Simmers who formed part of the Ministerial delegation led by Kubayi, said the provision of social housing was testament to the shared commitment to equality and compassion.
“This achievement is the fruit of collaborative efforts of the three spheres of government, the private sector, dedicated individuals, and the tireless work of many. It's a reminder of what we can accomplish when we unite in pursuit of a common goal to provide a dignified place to call home for the citizens,” said Simmers.
“We are committed to not only making affordable housing more affordable but also accessible to all our citizens. We have a pipeline of 19 social housing projects in various stages of planning, packaging, and implementation over the next MTSF period to leverage approximately R 3.8 billion of grant funding and R1.2 billion of private investment into the affordable housing sector”. added the MEC. City of Cape Town Executive Mayor, Cllr Geordin Hill-Lewis said spoke of plans to release more land parcels for social housing.
For media enquiries, contact:
Hlengiwe Nhlabathi-Mokota, Spokesperson to Minister Kubayi
Cell: 064 754 8426
Email: Hlengiwe.Nhlabathi@dhs.gov.za
Ntobeko Mbingeleli
Cell: 061 447 7851
Email: ntobeko.mbingeleli@westerncape.gov.za.
