CELEBRATION OF 4,3 MILLION HOUSES Cosmo City & … of 4.3 Mil Houses... · • The Malibongwe Ridge...

CELEBRATION OF 4,3 MILLION HOUSES

Cosmo City & Malibongwe Ridge

Mixed Integrated Development

21 April 2016

1 Celebration of 4,3 million houses & housing opportunity launch

OUTLINE

• PURPOSE AND CELEBRATION OF 4,3 MILLION HOUSES AND

HOUSING OPPORTUNITIES – LAUNCH

• BACKGROUND

• EVOLUTION OF COSMO CITY

WHAT’S NEXT: MALIBONGWE RIDGE

• READINESS OF THE SYMBOLIC HANDOVER

• CHALLENGES

• INTERVENTION


PURPOSE AND CELEBRATION

To celebrate a status report regarding the development in the following

projects implemented within City of Joburg’s Ward 100, under the interim

Ward Cllr. Patrick Maisha, namely:

• Cosmo City Mixed Housing project

• Malibongwe Ridge Mixed Housing project


COSMO CITY LAUNCH’S “BREAKING NEW GROUNDS”

Cosmo City, at the advent of Government’s “Breaking New Ground Strategy”, which was launched in 2004 with the following objectives:

• Accelerating the delivery of housing as a key strategy for poverty

alleviation.

• Utilising provision of housing as a major job creation strategy.

• Promotion social cohesion and improving quality of life for the poor.

• Ensuring property can be accessed by all as an asset for wealth

creation and empowerment.

• Development of sustainable human settlement in support of spatial

restructuring through housing.

• Eradication of informal settlements.


COSMO CITY VISION

• Cosmo City was at the forefront in the country to put BNG as anIntegration Human Settlement to the test;

• Emerged as an informal settlement eradication of Zevenfontein andRiverbend Informal Settlement and Cosmo Farm;

• The City of Joburg and Gauteng Provincial Government acquiredprivately owned land with the sole vision of providing an integrated,mixed use inclusionary housing development for the people.

• Following the appointment of the implementing Agent in 2001, the initialplanning commenced immediately, resulting in the first occupation ofhouses by the beneficiaries in 2005.


COSMO CITY : LAND


COSMO CITY : SCOPE OF DELIVERABLES

Land: 1 105 ha Top structures:

5 000 RDP – income group R0-R35003 000 Finance Credit Linked – income group R3501-R70003 300 bonded houses - open market1 000 Social housing rental units – income group R1500-R7500

Social-economic Amenities: 12 Schools40 Sites Churches, Clinics and Crèches43 Parks and Recreational Sites30 Commercial and Retail sites40 ha Industrial Park300 ha Environmental Conservation Area

Partners: Codevco / Basil read Development – Developer on behalf of the CityCity of Johannesburg – land owner / bulk, link and other service providerGauteng Department of Human Settlement – Project Subsidies


COSMO CITY : VISION


COSMO CITY : ACHIEVEMENTS AS “BNG”

• First beneficiaries took occupation in 2005• 12 500 mixed income houses have been constructed.• Public and Private schools, including a hotel school.• Various churches, Parks and Community industrial facilities have

been established.• Industrial and retail facilities are operational as part of the

development.• Population in the area is estimated at 70 000.• Sound revenue based for the municipality through rates and taxes.• Secondary economic opportunities have developed as a result of the

mixed income nature of the settlement.• Socio-economic impact direct and indirect, as well as induced during

construction.• Employment created during construction was 30 924 and 22 643

post construction


COSMO CITY : DIFFERENT STAGES OF CONSTRUCTION

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PROGRESSIVE PHOTO ALBUM

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Celebration of 4,3 million houses & housing opportunity launch

Community of Itsoseng - Malibongwe Ridge


Malibongwe Ridge

• The Malibongwe Ridge - an extension to the Cosmo City• Located north-west of the Johannesburg CBD.• This project is developed on a 164ha site

• The mixed use integrated development will consist of:• low income,• fully subsidized,• finance-linked,• bonded, and• high density residential units.

• There are 14 institutional, business and educational sites to realise thesocio-economic and non-residential activities of the development

• 11 parks.• Partnership City of Johannesburg (CoJ); Gauteng Department of

Human Settlements (GDHS) and Codevco

18 Malibongwe Ridge

Scope

Typology/ Land Use No. of Units

Fully subsidized (RDP) - Duplex Houses 1 086

Rental Units adjoined to the Duplex Houses 2 186

Fully Subsidized (RDP) Row Housing Units - Semi-

detach simplex

238

Finance Linked (FLISP) 646

Bonded Units 464

High Density Units – 3 Storey walk-ups 894

Total 5 514

• The project is a direct response to the housing challenges plaguing theinformal settlement of Itsoseng and will yield the following products:

19 Malibongwe Ridge

Progress – Town Planning

• The project is divided into 5 extensions for implementation purposes.The extensions and yields are listed in the table below:

Project Extension & Phase

Split per Typology

TotalFSH Backyard

Rentals FLISP BondedHigh

Density Units

Proper - Phase 3 0 0 383 0 224 607Ext. 1 - Phase 3 516 847 263 0 0 1626Ext. 2 - Phase 1 489 754 0 0 0 1243Ext. 3 - Phase 2 342 562 0 0 670 1574Ext. 16 - Phase 4 0 0 0 464 0 464Total 1347 2163 646 464 894 5514

20 Malibongwe Ridge

Progress – Town Planning (continued)

• Progress on both environmental and town planning authorisations canbe summarized as follows:

• Township approval(s) by City of Johannesburg: 31 October 2011• Environmental Authorisation by GDARD for the development: 22

November 2010• Proclamation of Extension 2: 27 November 2013• Proclamation of Extension 3: 19 November 2014• Ext. Proper and Extension 16: General Plan approved, township

register imminent.• Ext. 1: town planning approval, cannot proceed with pegging due to

encroaching shacks.

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Malibongwe Ridge

Progress: Civil Construction

• Site establishment for civil services was done on the 18th June 2012• Construction of Civil services commenced on the 2nd July 2012 for

both link and internal.

• Construction of Water and Sewer services for Phase 2, which includes342 units commenced in January 2014.

• To date, 486 and 212 residential stands for Phase 1 and 2,respectively, have been serviced with water and sewer.

• ALL Internal services completed in Extension 2, however, link Roadsand Stormwater services are still outstanding due to limited fundingallocations by CoJ.

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Malibongwe Ridge

Progress: Top-Structures • Construction of houses commenced on the 2nd July 2013, and

progress to date is summarized as follows:

• NB: most of the 486 houses reported under wall plate are practicallycomplete, but undergoing inspections by GDHS’ Quality Assurance andNHBRC.

Typology Project Delivery Milestones

Size (phase 1) Foundations Wall plate Completions Rental Units

Type A 373 373 373 86 172

Type B 71 71 67 2 0

Type C 34 34 28 1 0

Type D 8 8 7 0 0

Total 486 486 486 89 172

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Malibongwe Ridge

Progress: Top-Structures

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Malibongwe Ridge

Progress: Top-Structures

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Malibongwe Ridge

Target Beneficaries

• The project is aimed at eradicating the existing informal settlement of Itsoseng,

which is home to approximately 2331 households.

• The inherent benefit associated with informal settlement eradication projects like

Malibongwe Ridge is that some of the allocation policy objectives such as

special cases; child headed households; 1996-97 applicants; Military Veterans;

as well as people living with disabilities, will be addressed.

• The project team which will comprise of representatives from the department,

municipality and the developer will establish an Allocations Committee that will

ensure that the policy objectives in the allocation of beneficiaries are realized

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Malibongwe Ridge

Challenges • Lack of USDG Funding for Civil (Bulk, Link and Internal services) has

affected construction resulting in the delay issuing of a Section 113certificate and has a bearing on the granting of occupation certificates.

• Lack of funding and Policy uncertainty for electricity (80 % occupationfor DoE funding allocation) also effects the issuing of a Section 113certificate

• Funding certainty and COJ funding constraints manifests as “lack ofcommitment” for the unbroken delivery stream for future phases posesa risk to the future of the project.

• Project Steering Committee – the dysfunctional PSC has created acommunication vacuum, which affects the community’s access toinformation on the project. Lately, the project has experiencednumerous stoppages over local employment, and a petition to removeCLO.

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Malibongwe Ridge

MTEF – Budget requirements

Budget Requirements

• Budget required for the remainder of the 2015/16 financial year tocomplete Phase 1: R92 621 548.16 (Claim 4 R33 421 154.00)

• Phase 2 budget requirement: R200M.

• Impact of phase 2 budget on GDHS deliverables – 2016/17 HSDG.

Development Agreement

• The revised development agreement is in progress.

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Malibongwe Ridge

Readiness – Symbolic Handover

• Electricity connections – there is no electricity onsite and the ActingExecutive Director has written a motivation to the Minister of HumanSettlements requesting her to proceed with the symbolic hand overduring the event due to the technical issues pertaining to the project.

• COJ, City Power, Eskom and DoE considering various options towardsdecreased demand and cheaper supply – time frames 4 to 6 Months.

• It is against the law to occupy houses without all services beinginstalled, for example, issue of electricity connections; construction ofbulk link and internal roads, and issuing of section 113 certificate byCOJ has a bearing on the granting of occupation certificate.

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Thank You

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