The City’s Human Settlements Directorate plans to spend approximately R8,3 bn in capital and operational budget on affordable housing roll outs and the enhancement of service delivery in informal settlement areas across the metro over the next three years. Importantly, addressing informality, redress and the housing demand requires a whole-of-society approach where the City is increasingly the enabler of delivery with private and civic sector partners, and not the sole driver. Approximately 98% of the current year’s budget is expected to be spent by July.
The draft budget aims to address some of the most pertinent challenges faced as Cape Town, including the high and growing levels of in-migration to Cape Town, bringing a mounting need for more affordable housing opportunities, but also enhancing and expanding service delivery in informal settlement areas and to backyarders thereby formalising informality.
‘The housing sector is under severe strain, in Cape Town and in the rest of South Africa, with dwindling public housing funding, policy uncertainty and the overreliance of the public sector to deliver. In addition, municipalities cannot address the urban housing challenges on their own. A whole of society approach is needed. You can easily see this if you look at our spend in human settlements – we have consistently spent almost all funds for human settlements services where feasible, despite the extreme extortion and crime challenges.
‘Over the next three years, we plan to allocate approximately R1,3 billion to upgrading informal settlements, R1,5 billion for scaling up our provision of serviced sites, and more than R877 million for the provision of the traditional subsidy housing (Breaking New Ground) with a focus on our elderly beneficiaries, child-headed households and beneficiaries with disabilities.
‘We’ve also set aside approximately R1,9 billion total capital and operational budget for the upgrade and maintenance of our Council flats over the medium term. Importantly, our investments are really hampered by unlawful occupation of the flats, which means we do not get an income from those units. All income is used to upgrade and maintain the flats. The rental payment rates are also very low and we need to place a big focus on this over the next three years as we work toward improving the living conditions of our legal tenants and their families.
‘Furthermore, we’ve set aside R32,9 million for the No Cost Transfer and R4 million for the Title Deeds programmes for the 2025/26 financial year.
‘Then, through our flagship priority land release programme, the City has in the last two years released land parcels offering over 4 000 residential opportunities now available for affordable development and we have a portfolio of approximately 5 000 constructed and completed Social Housing units in well-located areas across the metro.
‘We have some 12 000 opportunities for affordable rental housing opportunities in the pipeline in urban centres across Cape Town.
‘We’re Building our City of Hope, but we are only as strong as our most vulnerable resident. Human settlements delivery, greater access to affordable housing and enhancing services to those most in need is fundamental to the building blocks of our City of Hope. We are renewing our commitment to our residents and we accept the challenge, great as it may be. We invite our private- and civic sector partners to join us because we cannot go it alone,’ said Mayoral Committee Member for Human Settlements, Councillor Carl Pophaim.
