Housing in Southern Africa January 2015

Housing and demographic representation. Development cost contributions include the national and provincial government and eThekwini R10,4 billion, Tongaat-Hulett R14,3 billion, the South African Sugar Association (SASA) R1,1 billion, bringing the total to R25,8 billion. For the development costs in Phase 1 - 659 ha of land was acquiredwith over half a billion rands ring fenced – R669,4 million was ap- proved by Province and R511,6mwas paid from the province to eThekwini Municipality. So far, the private sec- tor has invested R350 million. T here are challenges the City, which determines the cost sharing percentages is still under discussion. Also, the agreement for funding and cost sharing to build the bridge over the N2, which is a key link- age and forms part of the Integrated Rapid Public Transport Network, has still to be finalised. The eThekwini Transport Authority has indicated that there is an opportunity to in- clude this into the M41/N2 contract with SANRAL. The design has been finalised andwill provide a significant link to Cornubia via Gateway opening up this portion of the site for housing says Pillay. A Memoran- dum of Understanding between the Depart- ment of Transport and

eThekwini and was zoned for general business and light industrial use. To qualify for the Densification Subsidy developers will need to maximise their investment on the Bus Rapid Transport routes, which will make the transport nodemore viable with the higher densities. Pillay says that one of the lessons learned was to identify potential beneficiaries at an early stage, since delays in providing documentation often meant that houses could not be handed over and were left unoc- important to consider the separa- tion of top structure and civil works, the framework on employment op- portunities and multi procurement strategies. The private sector will develop 10 000 units, bulk will be provided for affordable housing catering for households earning less than R18 000 per month. There is an opportunity says Pillay to pilot an Employee As- sisted Housing (EAH) scheme within the next few years using various subsidy programmes such as FLISP. There will be various social cupied for an extended period of time. He says, “Allow for adequate finan- cial authority to manage the variations, as obtain- ing additional authority is a lengthy process.” It is

development. Poor geotechnical ground condi- tions, which could not be determined prior to the implementation stage, increased the costs. The wetland drainage line occupies 28% of the site and added an additional R46 million with the accommodation of imported fillmaterial and spoiledma- terials. It also meant a three month delay in construction. To comply with municipal bylaws and stormwater management, a further R17,5 million was required to provide 2 187 units with gutters and downpipes. Fund- ing for bulks, such as roads and cost sharing agreements that were not concluded increased the extra costs. Lengthy Supply Chain Management processes, appeals and litigation delayed the roll out by up to eight months. Demand for housing exceeds the planned supply. Ensuring inte- grated delivery also meant including temporary schools for scholars. Another challenge was the Noise Contour Restriction on use of land for residential development as a large portion of the land falls within

‘The initial phase will create a walkable residential precinct structured around courtyards and well defined streets as the basis for building a sense of community.’

January 2015