Report by the Development Action Group details hurdles to giving up City land for housing

The report by the Development Action Group, working with the Human Sciences Research Council (HSRC) and the National Association of Social Housing Organisations, Releasing Municipal Land for Affordable Housing – Documenting the Experiences of Cape Town, eThekwini, Johannesburg, and Tshwane, demystifies the complex legal and technical procedures involved in the disposal of municipal land. Photograph; Phando/Jikelo/African News Agency(ANA)

The report by the Development Action Group, working with the Human Sciences Research Council (HSRC) and the National Association of Social Housing Organisations, Releasing Municipal Land for Affordable Housing – Documenting the Experiences of Cape Town, eThekwini, Johannesburg, and Tshwane, demystifies the complex legal and technical procedures involved in the disposal of municipal land. Photograph; Phando/Jikelo/African News Agency(ANA)

Published May 16, 2024

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Cape Town - While there is political will to release municipal land for affordable housing, this has been hindered by challenges such as a lack of resources and planning and infrastructure issues.

This was shared by speakers at the launch of a landmark report that unpacks the steps to release municipal land for housing in the heart of cities.

The report by the Development Action Group, working with the Human Sciences Research Council (HSRC) and the National Association of Social Housing Organisations, Releasing Municipal Land for Affordable Housing – Documenting the Experiences of Cape Town, eThekwini, Johannesburg, and Tshwane, demystifies the complex legal and technical procedures involved in the disposal of municipal land.

It also identifies ways of strengthening the system to ensure successful outcomes.

The report shows that each city has unique circumstances and experiences, yet there are also important similarities in the procedures being followed and the challenges faced.

“The public sector owns a sizeable amount of vacant and underused land, some of which is in well-located parts of cities with good access to economic opportunities and social amenities.

“A valuable resource that could support urban inclusion and improve people’s life chances, this land, if released for decent, affordable housing, would help address the chronic shortage of such accommodation in desirable locations and thus help to counteract the typically exclusionary character of the property market.”

The report says, however, that disposing of surplus public land is not as simple as putting it on the market and selling it to a suitable developer. There are legal, financial, administrative and political hurdles to overcome.

If the correct procedures are not followed – or take too long – the land may never get to the point of sale, or may be sold but never developed.

The importance of cities establishing a conveyor belt of suitable land parcels was highlighted, and the need for innovation in community participation.

The report said an explicit policy was critical to establish an approved framework that supported the delivery of social and affordable housing.

This should include reduced land prices, parameters for supporting partnerships with private parties, and accepted mechanisms for identifying and reserving public land.

Although the Municipal Financial Management Act required all municipalities to have a supply chain management policy for land, where this existed, it did not adequately address social housing, the report said.

A comprehensive supply chain management regulations policy that addressed key issues around social housing was required and should include valuation and discounting of value for social benefit in social housing processes.

Helen Rourke, programme director at the Development Action Group, said the report focused on land because this had been a major obstacle to the delivery of affordable housing in the heart of cities.

“We wanted to understand how municipalities were using their own surplus land to drive investment in social housing and redress apartheid spatial planning, particularly in neighbourhoods that are out of reach for low-income and working-class families,” said Rourke.

She said the City of Cape Town had been trying to release pockets of land for affordable housing; however, that had been met by challenges such as political opposition and other factors.

“The reports put such challenges into perspective so that everyone can learn from these challenges and improve the way we release land for social housing in the heart of cities,” said Rourke.

National Association of Social Housing Organisations general manager Karabelo Pooe said the development of social housing did not happen overnight.

“I know as a country we want it to happen overnight, but that is impossible. This process takes time, funding, resources, legal issues, political will, and many other things. The land also needs to be ready and developed before being given away for social use. This is what this report is trying to tell us,” said Pooe.