Cape Town: The Human Settlements Directorate of the City of Cape Town has plans to spend approx. R8.3 billion 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.
Most importantly, it also addressed the informalities, redress and the housing demand requires a whole-of-society approach where the City of Cape Town is increasingly the enabler of delivery with private and civic sector partners and not the sole driver. Approx. 98% of the budget for the current year is expected to be spent by July 2025.
Considering this, Member of the Mayoral Committee for Human Settlements – Councillor Carl Pophaim said that the draft budget aims to address some of the most pertinent challenges that they face as Cape Town residents. This includes the high and growing levels of in-migration to Cape Town, by 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.
They also remain focused on upping investment in the maintenance of the Council flats. Moreover, 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 over-reliance of the public sector to deliver.
Additionally, the 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 the spend in human settlements, that they have consistently spent almost all funds for human settlements services where feasible, despite of the extreme extortion and crime challenges.
As per Pophaim, over next three years, they are planning to allocate approx. R1.3 billion to upgrading informal settlements, R1.5 billion for scaling up the provision of serviced sites and more than R877 million for the provision of the traditional subsidy housing ‘Breaking New Ground’ with a focus on the elderly beneficiaries, as child-headed households and beneficiaries with disabilities.
They have also set aside approx. R1.9 billion total capital and operational budget for the upgradation and maintenance of the council flats over the medium term. Significantly, the investments are really hampered by the unlawful occupation of the flats, which means that they do not get an income from those units.
Furthermore, all the income is used to upgrade and maintain the flats, The rental payment rates are also very low and they need to place a big focus on this for over next three years as they work towards improving the living conditions of the legal tenants and their families.
Following this, they have set aside R32.9 million for the No Cost Transfer and R4 million for the Title Deeds programmes, for the financial year 2025-26.
Through the flagship priority land release programme, the City of Cape Town has in the last two years released land parcels offering opportunities to more than 4000 residentials that are now available for affordable development and they have a portfolio of approx. 5000 constructed and completed Social Housing units in well-located areas across the metro. They have also considered some 12000 opportunities for affordable rental housing opportunities in the pipeline at the urban centres across Cape Town.
Councillor Carl Pophaim added that they are building the City of Hope, that they are only as strong as the most vulnerable resident. Human settlements delivery has the greater access to affordable housing and enhancing services towards the most in need and is fundamental to the building blocks of the City of Hope.
Notably, Cape Town is renewing the commitment to the residents and they accept the challenge, as great as it may be. They also invited the private and civic sector partners to join them, because they cannot let it go alone.