Infrastructure
With regard to this announcement during his budget speech earlier this year: “Over the next five years we will also see a number of further social housing opportunities in areas such as Woodstock, Salt River, Goodwood, Heideveld, Elsies River, Mitchells Plain and potentially Oranjezicht. It is important to note that these opportunities are at various stages along the development pipeline.”
(a)(i) at what stage is each of these projects and (ii) what is the update about each, (b) how much is budgeted for each project over the 2022 MTEF and (c) what is the detailed breakdown of expenditure per project to date?
[a][i][ii]
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Woodstock Area |
Woodstock Hospital The project can deliver approximately 500 units. A Management Agent was appointed in April 2022 by the City of Cape Town to manage the current facility. The appointment of a developer is envisaged during the latter part of 2023, subject to the legal process of eviction. Woodstock Hospital Park The project can deliver approximately 200 units. The rezoning of the site is anticipated for the third quarter of 2023. Pine Road The project is planned to deliver 243 units. SOHCO Property Investments NPC is the Social Housing Institution [SHI] responsible for the development of the Pine Road Social Housing [SH] Project. SOHCO is currently undertaking the procurement of a contractor for the construction of the development. The challenges of the volatile construction market and significant price escalation due to the macro economic realities is needing to be taken into account. It is envisaged for the award of the contract is to be made by the last quarter of 2022. Dillion Lane The project can deliver approximately 150 units. SOHCO Property Investments NPC, the SHI responsible for the development of the Dillon Lane SH Project, undertook a consultation process in August 2022 with neighbours around the site. SOHCO is required by the City of Cape Town [CoCT] to prepare preliminary designs based on the consultation process held and to prepare a Site Development Plan [SDP] for submission to CoCT in October 2022. Approval of the SDP is envisaged for February 2023. |
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Salt River Area |
The Salt River Market Site The project is planned to deliver approximately 216 social housing units as part of a broader mixed-use development. Release of land from CoCT to Communicare was approved by CoCT Council in July 2022 for the development of Social Housing. Communicare is required to submit the proposed Site Development Plan [SDP] to CoCT for approval. Communicare was provided with a timeframe of 18 months to package the development and submit an application to the Social Housing Regulatory Authority [SHRA] for project approval and grant funding. |
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Goodwood Area |
The Goodwood Station Project The project is planned to deliver 1055 units. DCI Holdings is the SHI responsible for the development of the Goodwood SH Project and appointed Tri-Star as the developer. DCI is in the last stages of finalising the required debt funding for the project after being required to source alternative funding for the project. They are currently conducting due diligence in terms of the funding application. Construction is in abeyance until the debt funding has been finalised. |
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Heideveld Area |
The Heideveld Station Project The project is planned to deliver approximately 180 units. DCI Holdings is the SHI responsible for the development of the project. DCI Holdings will embark on this project after all agreements and work are in place for the Goodwood Station Project as referred to above. |
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Elsies River Area |
Elsies River Project The project is planned to deliver approximately 400 units. Urban Status Rentals [USR] is the SHI responsible for the development of the project. The project is currently in the rezoning process. USR submitted the rezoning application to the City of Cape Town in June 2022 which could take approximately 6-7 months for approval. |
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Mitchells Plain Area |
The Mitchells Plain Social Housing Developments are being implemented and managed by Povicom Housing Solutions. The project details are as follows: Regent Villas Practical completion of 104 units was achieved in March 2021 and the project was fully tenanted by October 2021. Regent Villas Ext 1 The project will deliver 60 units and is currently under construction, and overall progress on site is at 30%. Project completion is envisaged for December 2022. Regent Villas Ext 2 The project is planned to deliver 110 units. The project was supported by the CoCT and the Social Housing Provincial Steering Committee in September 2022. A Letter of Support was provided to the SHI. The project was submitted to the SHRA for detailed assessments and approval of the Consolidated Capital Grant [CCG] to fund the project. |
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Oranjezicht Area |
The area around Mandarin Court flats, is under the ownership of Department of Transport and Public Works. Mandarin Court only, is being managed by the Department of Human Settlements [DoHS]. The DoHS received a Power of Attorney [POA] from DTPW to undertake studies for the potential redevelopment of the precinct [Oranjezicht area including Mandarin Court], with the intention of densification. Based on an Inner-City Report submitted by DoHS, which includes the Oranjezicht site, Cabinet noted in-principle support for a report on the feasibility of Inner-City projects. To date, no detailed feasibility studies were done in relation to the Oranjezicht precinct, based on the legal obligation on the Department to first obtain clarity from the City of Cape Town [CCT] to transfer old Housing Board rental housing stock [which includes the Mandarin Court flats] to the CCT as per the Housing Act, which was declined by CCT. Decision to be reached on the response by DoHS and the National Department of Human Settlements [NDoHS] to CCT’s declination. |
[b] The below project budget estimates are only in terms of the Consolidated Capital Grant [CCG] which vests with the SHRA. No direct funding from the Provincial Department of Human Settlements is made.
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Project Name |
Budget |
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Woodstock |
Woodstock Hospital, 500 units No budget provisions can be determined until the land is released to a developer and project proposal received. Woodstock Hospital Park, 200 units No budget provisions can be determined until the land is released to a developer and project proposal received. Pine Road, 243 units 2022-2025: R78,899,670 Dillon Lane, 150 units 2023-2025: R45,198,550 |
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Salt River, 216 units |
No budget provisions can be determined until such time the SHI submits the proposal. |
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Goodwood, 1055 units |
2024-2026: R 259,201,320 |
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Heideveld, 180 units |
2026-2028: R 45,002,347 |
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Elsies River, 402 units |
No budget provisions can be determined until such time the SHI submits the proposal. The proposal will be presented to the SHRA upon completion of the rezoning application. |
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Mitchells Plain |
Regent Villas, 104 units 2019/2021: R 27,658,488 Regent Villas Ext 1, 60 units 2021/2023: R 17,351,017 Regent Villas Ext 2, 110 units 2022-2024: R 30,177,236 |
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Oranjezicht
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No funding has been budgeted for the MTSF period, but the high-level estimated project budget is R 19,704,000. |
[c] The below detailed breakdown of expenditure is only based on the Consolidated Capital Grant which vest with the SHRA.
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Project Name |
Detailed breakdown of expenditure |
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Woodstock |
No expenditure for all Woodstock developments on CCG to date. |
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Salt River, 216 units |
No expenditure on CCG to date. |
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Goodwood, 1055 units |
CCG expenditure to date [2017-2022]: R 21,372,764 |
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Heideveld, 180 units |
CCG expenditure to date [2017-2018]: R 2,868,112 |
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Elsies River, 402 units |
No expenditure on CCG to date. |
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Mitchells Plain |
Regent Villas, 104 units CCG expenditure to date [2019-2021]: R 27,658,488 Regent Villas Ext 1, 60 units CCG expenditure to date [2021-2022]: R 14,666,696 Regent Villas Ext 2, 110 units No expenditure on CCG to date. |
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Oranjezicht |
No expenditure to date. |
