The Developer Journal Issue 2 | Page 8

INDUSTRY NEWS NEW JOZI DEVELOPMENTS MAY HAVE TO INCLUDE AFFORDABLE HOUSING Johannesburg’s proposed new housing policy, which recognises the need for developments to yield a profit, may turn out to be a win-win solution. A s part of its strategy to create a more liveable urban space, the City of Johannesburg is introducing a new Inclusionary Housing Policy that could make it mandatory for developers to build affordable housing as part of new residential developments. ‘It is impossible for the City alone to address housing shortages, and we have to find all possible options to get to where we need to get to as a city,’ explains Eric Raboshakga, director of the City’s Transformation and Spatial Development department. Johannesburg Mayor Herman Mashaba writes in a News24 column that the city has a housing backlog of 300,000 units, and about 3,000 new people move in every month. Further, 50% of Johannesburg households earn less than R3,543 a month, and 40% earn less than R2,487. He explains that there is a high spatial mismatch between jobs and housing, as reflected in people’s spending: ‘Most South Africans spend up to 70% of their often meagre income on food and transport, especially to work’. He writes that the proposed new policy would provide developers with good opportunities for business as well as social responsibility. Johannesburg’s Spatial Development Framework 2040 is intended to direct growth and development in a way that addresses inequality and inefficiency. It promotes high- density, mixed-use development that enables people to live close to where they go to work or school, and reduces the cost of providing infrastructure and services such as public transport. The proposed Inclusionary Housing Policy is intended as a tool of the framework. It requires that new developments with 10 or more units build an additional 20% affordable housing on the same property. The inclusionary units, whether flats or houses, are required to be a minimum of 15 square 8