Despite considerable criticism and threats of legal action, the City of Joburg hopes to pass its inclusionary housing policy before year-end.
Moneyweb earlier reported that the draft policy provided that developers of residential complexes with more than 10 units would have to set aside at least 20% of the complex for low and low-middle income tenants, with rent capped at R2 100 per month.
Some developers warned the policy would be challenged in court. The city has now made changes.
The threshold of 10 units has been increased to 20, before the inclusionary housing policy becomes mandatory.
In the previous draft policy, there were two implementation models. Firstly, for the units to be managed by a social housing company and secondly, for the owners to rent the units. The second option has been now removed.
The city now proposes four options, some without the mandatory rent control:
- 20% of all units are social housing with monthly rent capped at R2 100 per month.
- 10% of the total residential floor area to be made up of small units, varying between 18m² and 30m²;
- 20% of the total residential floor area to comprise units between 18m² and 150m²; and
- Proposals “to the satisfaction (in writing) of the City of Joburg”.