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MUNICIPAL LAND ASSETS AND SOCIAL HOUSING. NASHO-SALGA LAND PACKAGING. Background. What is the responsibility of municipalities in S Africa Today? Create jobs for its employees and councillors? Provide a channel for national government finance? Opportunity for lots of meetings and workshops?

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municipal land assets and social housing

MUNICIPAL LAND ASSETS AND SOCIAL HOUSING

NASHO-SALGA LAND PACKAGING

background
Background
  • What is the responsibility of municipalities in S Africa Today?
    • Create jobs for its employees and councillors?
    • Provide a channel for national government finance?
    • Opportunity for lots of meetings and workshops?
  • None of the above
  • Commitment to Developmental Local Government

To ensure a good quality of life and access to resources of all people in their local areas. Particularly to redress the inequality and deprivation created by apartheid.

background1
Background
  • Achieve this through targeted and effective use of the municipal resources and assets:
      • Human
      • Land
      • Infrastructure
      • Finances
      • Systems and networks
  • Municipalities have unclear responsibility for housing:
    • Housing is more a provincial mandate
    • Provision of housing is essential to its developmental mandate must engage
  • At what point is this engagement:
    • Strategic planning
    • spatial and land planning
    • Use of its physical assets
background2
Background
  • What is the responsibility of SHIs in S Africa Today?
    • Provide RDP housing?
    • Assist people with ownership houses?
    • Build houses?
  • None of the above

To provide well located and quality rental housing affordable to low and moderate income households. In doing so to give them access to the socio econmict resources of our cities while ensuring the economic integration of these cities.

land packaging
Land packaging
  • What is involved in preparation of land for social housing
    • Identifying
      • Municipality Spatial Plan
      • Government land register – audit
      • Criteria for use of land
      • Idntifying pipeline of SH land
      • Integration into IDP Business plans
    • Agreeing to allocation of land to SHI
      • Tenure type
      • Basis for allocating to which SHI
    • Planning and zoning
      • Who does? – SHI or Municipality
      • Depends on speed and cost
land packaging1
Land packaging
  • Detailed planning of social housing for site
    • SHI
    • Broad agreement with Municiplaity on targeting
  • Building plan approval
    • SHI applies
    • Municiplaity assesses and approves
  • Development of land
    • SHI
    • Turnkey developer on behalf of municipality
land buildings and social housing
Land / buildings and social housing
  • Critical factor for success of SH
  • Land or buildings in the right location, at the right price and right legal conditions.
  • Location
    • Provide opportunities for low moderate income to access developed socio economic resources of cities
    • Defined as Restructuring Zones
land buildings and social housing1
Land buildings and social housing
  • Right Price
    • Avoid adding too much to the developmental costs
  • Right Legal Conditions
    • Protection of asset for use for SH
      • Outright ownership
      • Long Term Leasehold
challenges
Challenges
  • Cost of land
  • Lack of understanding of intent of SH
  • Reluctance of municipalities to allocate their land
      • Prioritising use ‘development vs highest price’
      • ‘MFMA prevents us’
  • Contracting arrangements to meet SH policy conditions
  • No plan and pipelines for release – ad hoc
  • Planning and environmental assessment delays and cost
  • NIMBY
municipal use of land and housing assets
Municipal use of land and housing assets
  • Use of land and existing housing asset is crucial tool for municipalities to achieve developmental mandate.
  • What presently informs municipal disposal of land and housing assets?
    • Short term financial need
    • Inability to manage and or afford ops costs
    • Pressure form existing tenants
    • Material interest of decision makers /power brokers
    • ‘Political’ support
    • ‘Convincing’ ad hoc project proposals
    • Achieving its developmental responsibilities

Need to determine best use

slide11

What to do with land and housing assets?

Retain

Permanent Disposal

Temp. Disposal Lease

Strategic decision

Rental

Ownership

Developmental Resp. Assess.

Socio/Economic Spatial

Integration

Accessing Housing Ops.

Maintaining Financial Sust.of Mun.

slide13

Scenario 1:

Hundred stand alone houses on the periphery of the old township. Tenants not paying and high arrears. What to do?

Scenario 2:

3 blocks of flats 100 units close to town centre with infill possibilities. Tenant payments 60%. Tenants want sectional title ownership?

slide14

Scenario 3:

Empty piece of land in well located sub hub of City. Developer offering R10m for land for a mixed ownership development. SHI wants it for Social Housing plan shows could achieve 150 units. What to do?

Scenario 4:

Prime piece of land in centre of very expensive Commercial node. Number of large developers are competing for development rights. Small voiced lobby for Social Housing on site. What to do?