inclusionary housing
The regulatory perspective for a secondary market system In the inclusionary housing discourse thus far, one aspect has not received adequate attention. As the City of Cape Town embarks on developing its inclusionary housing policy over the next 18 months, the aspect of the regulatory mechanism into which inclusionary housing units are taken up post-development needs deeper coverage. It is my aim that this article contributes in some way to that discourse By Shaheen Adams
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Both the City of Johannesburg’s uch of the focus on Inclusionary Housing Policy as this topic thus far has well as the City of Cape Town’s revolved around the Concept Note on Inclusionary impact of a proposed policy Housing speak to inclusionary on project feasibilities, and units remaining affordable in a debate around where perpetuity. This requirement along the spectrum of for perpetual affordability mandatory to voluntary immediately necessitates for participation by developers a functioning and regulated the policy should be secondary market in which placed. The debate on the management of the units whether inclusionary housing can be monitored and controlled as a social good is required against the rules placed upon that at all seems settled and is now secondary market. a given. Government is mandated to implement the Spatial Planning and Land Use Management Act Secondary market systems (SPLUMA, Act No. 16 of 2013), and Secondary markets for the renting of the development community has property are different from those for Shaheen Adams, Managing Director accepted that the need for the buying or selling of property. Within at Wingapo Property Group inclusionary housing is a reality. the South African affordable housing Whether inclusionary housing is context, the only fully regulated developed for sale or for rental, the secondary market system at present is units will form part of a secondary the social housing system. This covers market. For the purpose of this article, I am defining a the rental market exclusively. secondary market as one in which primary market pricing The Social Housing Act was promulgated in 2008, with (whether for sale or rent) is discounted by the government Regulations added in 2012. The entire secondary market of through some means or restricted by regulation in some way. social housing is regulated by the Social Housing Regulatory I am also differentiating it from an informal market, in which Authority (SHRA). An established set of Social Housing prices are set in accordance with demand and supply, but Institutions (SHIs), and the build-up of expertise within those where trade occurs outside of formal market structures. Please SHIs in the development and management of social housing, note that these definitions do not purport one type of market have resulted in the creation of a highly specialised sub-sector to be greater or lesser than the other. of the property market.
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SOUTH AFRICAN PROPERTY REVIEW – FEBRUARY/MARCH 2020
