Inclusionary housing is almost a reality

Following concerns raised by residents and property developers about the inclusionary housing proposal as part of the City of Johannesburg’s Spatial Development Framework, the Randburg Sun sought further clarity on the legislation from the assistant director of the Metropolitan Spatial Development Framework, Thandeka Mlaza-Lloyd.

The proposed Spatial Development Framework for April 2019 defines inclusionary housing as a programme that, through conditions attached to land-use rights approvals, requires private developers to dedicate a certain percentage of new housing developments to low-income and low middle-income households, or to households that may not otherwise afford to live in those developments.

Mlaza-Lloyd said, “It is important to clarify that this is not ‘new legislation’. The City of Johannesburg’s Spatial Development Framework 2040 (SDF 2040) was approved in 2016, and with its adoption, came the endorsement of a policy directive on inclusionary housing.”

Since this endorsement, the Development Planning Directorate through its City Transformation and Spatial Planning Division has embarked on a process to formulate a framework of implementation.

The draft Inclusionary Housing: Incentives, Regulations and Mechanisms framework seeks to facilitate and guide the provision of inclusionary housing by the private sector in private housing developments as per the 2016 proclamation.

The draft framework seeks to achieve this by setting out parameters and guidelines that increase the supply of low-middle income housing in well-located areas of the city.

This framework of implementation is what is currently being considered by Council structures, with the hope of being endorsed early next year.

The framework is currently due to serve at the Mayoral Committee on 6 December 2019.

Regarding the framework, the Randburg Sun put questions forward to Mlaza-Lloyd.

n Will the new legislation only be for construction companies to follow?

The draft framework, which guides the implementation of inclusionary housing, will be mandatory and applicable throughout the entire City boundary. The inclusionary housing will be implemented as a condition of approval on land development applications of 20 residential developments and more.

The applicant is inconsequential. It is, however, important to note that residential developments on properties with approved and/or existing land use rights will not be affected as no land use application will be applicable.

• Who will own the low-cost housing?

With the definition of inclusionary housing in mind, it is clear that the aim is to facilitate the provision of various housing types, in different contexts, which may not all be considered as ‘low-cost’ housing. The primary aim is to facilitate social integration and meaningful redress as varying income groups will be afforded the opportunity to co-exist. The draft framework further provides various options of which inclusionary housing can be provided. The owners of such units will depend on the option pursued by the developer/applicant.

• Who will be responsible for levies of the complex added to the low-cost housing?

The various options afforded by the draft framework result in the developer/applicant renting out the units out or selling them through the open market. Applicable levies will be as per the relevant option.

• Who will be eligible for the low-cost housing?

Due to the varying nature of inclusionary housing options afforded to developers/applicants, a blanket response to this question is not probable. The option pursued by the developer/applicant will guide eligibility, should it be applicable.

The developer/applicant has an option of renting out or selling the units on the open market, therefore, no criteria for eligibility is applicable, the only factor would be affordability.

Should the applicant opt for the Social Housing or Financially Linked Individual Subsidy Programme (FLISP) option then this will be as per the requirements of the Social Housing Act 2008 (Act NO. 16 of 2008) as well as the custodian department and the National Human Settlements, respectively.