Integrating Poor Populations in South African Cities - Agence ...

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7. Access to Housing: The Main End Goal of Urban Development Policies in townships, and this was a particularly effective method of control. Thus, to break with this image of apartheid and restore dignity to historically disadvantaged populations, private property was promoted and spread by the government. However, the need for rental solutions emerged equally for households that cannot afford the upkeep on their houses, those who have sold their houses and can no longer receive government subsidies, those who would prefer to rent in locations better suited to their jobs (notably in the city centres), those who have already received an RDP house in a rural area and wish to work in cities, and finally all those who are not eligible for the subsidies (mainly single people and foreigners). Thus, in response to the uniformity of the national housing policy advocating private property, diverse forms of rental housing have emerged. Rental solutions have developed spontaneously both in city centres, via organizations legally recognized by the government, and in outlying areas in the form of cottages in gardens and backyard shacks (built in backyards in the townships). Rental Housing: A Difficult Start 102 Official organizations, often born from NGOs, were initially very few in number and their beginnings were uncertain. Indeed, they were small organizations with diverse initiatives offering experimental rental solutions. Capacities were limited and public funding nearly inexistent. Numerous institutions went bankrupt, and others had to be drastically redressed. This was the case with the Cape Town Community Housing Company (CTCHC), whose entire staff was renewed between 2004 and 2006, and that must now renovate a large part of the housing stock that it had built. Indeed, the construction was done too rapidly and without the necessary skills; the buildings ended up being faulty and fell into disuse. Social Housing Institutions Progressively becoming aware of this need for rental solutions, the Department of Housing wanted to formalize and stabilize existing initiatives, grouping them together under the denomination of Social Housing Institutions (SHIs). In South Africa, the expression ‘social housing’ designates rental solutions for households earning more than 1,500 rand per month (or even 3,500 rand for certain institutions). The Social Housing Foundation (SHF) was created in 1997 to bring together all social housing institutions and analyze and document know-how and best practices for the Integrating Poor Populations in South African Cities © AFD 2009
7. Access to Housing: The Main End Goal of Urban Development Policies construction and management of rental housing stock. There are currently about twenty social housing institutions working in the main South African cities. These institutions are also grouped together within the National Association of Housing Organisations (NASHO), which helps build a community of professionals. In addition, national subsidies distributed by the provincial departments in charge of housing have been specifically created to allow SHIs to develop projects. Social housing institutions are either Section 21 companies (that is to say, non-profit organizations), or municipal bodies or municipal-owned companies (MOCs). Today, most institutions no longer belong to the municipalities because the recent Municipal Finance and Management Act (MFMA) imposes very demanding statutory and budgetary conditions on municipal-owned companies. For this reason, many are no longer owned by municipalities, such as the CTCHC which had previously belonged 50% to the city of Cape Town and 50% to the National Housing Finance Corporation (NHFC) and is now held solely by the NHFC. However, most land on which SHIs’ projects can be built are still municipal in origin. Financing for Social Housing: Very Diverse Sources The principal sources of financing on which SHIs can rely are the social housing subsidies distributed by the provinces, loans from public financial institutions such as the National Housing Finance Corporation (NHFC) and the Development Bank of Southern Africa (DBSA), international funds (such as the Dutch International Guarantees for Housing), loans from private banks or other private financial institutions, and subsidies from cities in the case of municipal campaigns. The NHFC is a public financial institution under the authority of the Department of Housing. Its mandate is to provide loans with advantageous rates to institutions sometimes viewed as risky. Another financial institution, private this time, that has a particularly large role in Johannesburg is the Trust for Urban Housing Finance (TUHF). Its aim is to help finance housing rehabilitation projects in the Johannesburg city centre. For this reason, it does not finance only SHIs but also private companies such as AFHCO, which renovates buildings in the city centre to offer rental housing for workers with small and medium salaries. Generally speaking, the existing SHIs are partially stabilized and some are even very innovative in how they manage their capital. However, they are few in number and must elaborate their operations as they go along and using nonstandardized financing. 103 © AFD 2009 Integrating Poor Populations in South African Cities
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Integrating Poor Populations in Sou
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The author Fanny Hervé, an enginee
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Abstract In South Africa, urban dev
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Résumé En Afrique du Sud, les enj
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Contents METHODOLOGY ..............
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Contents CONCLUSION ...............
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Methodology The purpose of this stu
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FOREWORD Public Policies on Housing
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Public Policies on Housing and Urba
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Introduction At the end of aparthei
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PART ONE: An Urban Context Marked b
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An Urban History of South Africa: F
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1. An Urban History of South Africa
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Current Challenges 2 The apartheid
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Page 53 and 54: 2. Current Challenges However, desp
Page 55 and 56: 2. Current Challenges Progressively
Page 57 and 58: 2. Current Challenges far from the
Page 59 and 60: 2. Current Challenges commutes are
Page 61 and 62: Urban Development Policies in a Uni
Page 63 and 64: 3. Urban Development Policies in a
Page 69 and 70: PART TWO An Uncertain Determination
Page 71 and 72: Planning as Implemented in South Af
Page 73 and 74: 4. Planning as Implemented in South
Page 81 and 82: The Hindrances to the Effectiveness
Page 83 and 84: 5. The Hindrances to the Effectiven
Page 85 and 86: Paths Toward More Profitable Planni
Page 87 and 88: 6. Paths Toward More Profitable Pla
Page 89 and 90: PART THREE Develop Living Spaces fo
Page 91 and 92: Access to Housing: The Main End Goa
Page 93 and 94: 7. Access to Housing: The Main End
Page 101: 7. Access to Housing: The Main End
Page 113 and 114: The Limits of the Government’s Ac
Page 115 and 116: 8. The Limits of the Government’s
Page 127 and 128: Toward Greater Integration of Publi
Page 129 and 130: 9. Toward Greater Integration of Pu
Page 141 and 142: Conclusion Nearly fifteen years ago
Page 143 and 144: Acronyms and Abbreviations ABM AFD
Page 145 and 146: Acronyms and Abbreviations RZ SACN
Page 147 and 148: Appendices Appendix 1: Interviews I
Page 149 and 150: Appendices • Claire Bénit-Gaffou
Page 151 and 152: Appendices Pretoria • Revelation
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Appendices Appendix 3: Map of Johan
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Appendices Appendix 5: Map of Ethek
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Bibliography Books DU TOIT, J., U.
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Bibliography Articles BÉNIT, C. (2
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Bibliography REPUBLIC OF SOUTH AFRI
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Publications Les titres de la colle
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Publications No. 23 : Libéralisati
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What is AFD? www.afd.fr Agence Fran
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