metres , include a private bathroom , and have the same look as the market units on the property . All residents would share common areas and facilities .
The inclusionary units are intended to cater for households with an income of up to R7,000 per month , and rent is capped at R2,100 for 2018 . The minimum size makes them suitable for a single person , a couple , or a couple with a small child . A number of options are being explored with regard to how properties can be maintained , and how to manage occupancy so that there will not be overcrowding .
The first draft of the policy provides two options for the inclusionary housing units . These are social housing managed by a registered not-for-profit social housing institution ; and ownership for rental by a private entity . According to the department , it is likely that the final policy will include more options and greater flexibility , for example , market-related units that are smaller and therefore cheaper .
By far the strongest incentive for developers is the density bonus . Where 20 % of a development is given to affordable housing , the developer will be allowed an additional 20 % density . This means that developers who planned to develop 100 market units will still build their 100 market units , but in addition will be allowed a higher density to include the 20 affordable units . In other words , developers will be rewarded with higher-value land-use rights in return for including affordable units .
Other incentives include reduced parks contributions , engineering services contributions , and parking requirements for the inclusionary units . The incentives are proportional to the percentage of inclusionary housing provided , to a maximum of 50 % of total units in the development . If passed , the policy will be applied to new developments only and will not affect existing developments .
There are concerns about the affordability of schools , shops and medical facilities in the higher-income areas , but the department says that it is attempting to make it possible for people to save time and money that is currently spent on transport so that they and their families can live higher quality lives .
It is anticipated that the policy will be challenged on legal grounds with regard to whether inclusionary housing can be implemented at municipal level . Raboshakga explains : ‘ We are mandated by law to write policy that we believe to be effective and efficient for carrying out the objectives of the City . We identify areas that require intervention from a local perspective , and we write policy to intervene in that space .’ He says that the policy will be analysed by a legal team to make sure that the City is not acting outside the bounds of its constitutional mandate .
The proposed policy is intended as a land-use tool rather than a housing tool , and it is common practice for municipalities to impose conditions on development , for example limits on building height and density of development . ‘ There is no “ right to develop ”,’ explains Raboshakga . ‘ You apply for permission for a certain development on a certain piece of land , and the municipality decides to grant or not grant .’ The Constitution makes the allocation of land-use rights a municipal function .
The proposed policy was put through a public participation process , and the department is now processing comments and suggestions . At the end of this process it hopes to have a more detailed picture of how the policy could be rolled out . One of the key uncertainties , says Raboshakga , is whether the policy will be made mandatory or , instead , be presented as a set of guidelines for developers to implement voluntarily . He hopes to have the next draft ready by September .
In the meantime , the concept is being piloted with developers , with one developer already nearly ready to launch .
UPDATE : WHERE WE STAND RIGHT NOW
On 2 August , Johannesburg City officials met in Braamfontein with property developers and members of the public to provide feedback on 58 comments that it had received regarding the proposed inclusionary policy . This , the City said , was in line with the Spatial Planning and Land Use Management Act .
After the meeting , Mayor Herman Mashaba emphasised that it was necessary for the City to take the route proposed by the draft policy because the majority of Johannesburg residents earned too little to afford the high rentals associated with many new developments .
One comment included the proposal that the City only apply the policy to selected , degraded , centrally located areas where land prices are currently low . The City responded that , ‘ Applying the policy only to areas such as the inner city may indeed drive property developers away from the area , and into other parts of the city . As the policy is mandatory , it should apply to developers across the city , and not only in certain areas .’
“ Developers will be rewarded with higher-value land-use rights in return for including affordable units . ”
Following early August ’ s engagement meeting , the draft policy went back into an amendment process . ‘ The comments that were received inform the redrafting of the policy ,’ Poppy Louw , stakeholder manager in the office of the MMC : Development Planning , told us in late August . ‘ The policy as it stands now includes all the recommendations that were made during the commenting period . We ’ re currently deliberating on whether we should have another public engagement session . There have been a couple of concerns raised , so another public participation session might be required .’
When asked for a timeline , Louw said that the commenting process usually takes between two and six months . ‘ We ’ ve also got a Section 79 committee , which plays an oversight role ,’ she added . ‘ If it goes to Section 79 , and the councillors feel that any aspects need revision , then it will have to go back into the process .’
Mark van Dijk
Rehana Dada
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