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Optimizing Land Use for Social Housing Development in Brandwag, Mangaung

This document outlines the successful identification, release, and transfer of land in Brandwag, Mangaung for social housing development. Key milestones, challenges, and the municipality's contributions are discussed. The initiative aimed to address housing needs in the area and utilized strategic partnerships for sustainable development.

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Optimizing Land Use for Social Housing Development in Brandwag, Mangaung

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  1. GOOD PRACTICE IN LAND IDENTIFICATION, RELEASE AND TRANSFER IN MANGAUNG 29 AUGUST 2013 O MOJAKI

  2. Background • In 2006, MMM resolved to develop Social Housing in its area of jurisdiction • The area of Brandwag was specifically identified for the development of Social Housing in Mangaung • Brandwag is an old municipal owned rental housing stock with 351 units and surrounded by large portions of unutilized land • Brandwag is located very close to the CBD and is close to the University, schools, shopping malls, hospitals, and many other amenities • In 2008, the municipality together with province resolved that a social housing institution be established • FSHC was then established as a section 21 company in 2009 • In 2009, the municipality signed a property management agreement with FSHC for the management of the 351 units in Brandwag • Council later resolved that FSHC be the delivery vehicle of social housing in the jurisdiction of Mangaung

  3. Land packaging • The 351 units in Brandwag were staggering on a number of individual erven and worth a total of R7,9 million in value • The Municipality in conjunction with FSHC applied for the consolidation and rezoning and sub-division of the erven into three erven to accommodate social housing • In 2010, a 15 year Notarial lease agreement was signed with FSHC for the development and management of Brandwag as a social housing project (R1500 per month with 5% annual increase) • In the same year the project was approved by the SHRA to receive RCG in three phases to develop a total of 1051 units (incl. the existing units) • A Notarial lease period was later amended to 20 years as the initial period was not in line with the loan period FSHC had with NHFC • A Performance Agreement was also signed to ensure that Brandwag project is solely used for social housing purpose

  4. MMM contribution • FSHC has been exempted for the following: • Rates and taxes • Building plan fees • Bulk infrastructure • This excludes services such as waste removal and other utilities such as free basic water and electricity • In addition, the municipality budgeted a total of R8 million from the USDG for the upgrading of sewer bulk infrastructure to accommodate phase 2 and 3 of the project

  5. Challenges • Demand for social housing vs affordability • Accounting with the Auditor-General • Institutional understanding of social housing programme • Urban land markets/ land and properties in CBD is privately owned and this is a constraint for expansion of social housing in the CBD

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