Madulammoho Housing Association

Dear Premier Zille,


This is in response to your calls for comments on the proposed disposal of the above site.

Madulammoho Housing Association (MHA) is an accredited Social Housing Institution (SHI) that presently has 2 200 social housing units under management in both Cape Town and Johannesburg. We also have a formal partnership with the City of Cape Town. We have an excellent record of facilitating the developments and undertaking the management of stock for households on low and moderate incomes. In Johannesburg we have substantial stock in the inner city. We hae 98% rent collection levels and, with our partner MES, run community and neighbourhood programmes in the areas we have our stock.

Our experience is that it is possible and desirable to create opportunities for low and moderate income households in the inner city areas. Working in partnerhsip with competent private developers, SHIs like MHA are able to run financially viable Social Housing and through this to assist in the economic integration of the City of Cape Town. To achieve this requires the co-operation of government through the national social housing programme. Our experience is that in both the City of Cape Town and the Western Cape Departments of Human Settlements are committed to realising the programme’s objectives.

It is therefore of deep concern to MHA that the Provincial government are deciding to dispose of an important asset in the inner part of the City without proper consideration of its real potential to provide good quality rental housing for low and moderate income households. In taking this course the Province is permanently divesting itself of a real opportunity to enhance socio-economic integration of the city. Instead it is proposed to set up a private school which by its very nature will serve mainly children of middle class and wealthier parents.

In light of the fact that it is possible to achieve quality and well managed rental housing development, that can be held in the long term for low and moderate income households, we call on the Province to halt the sale of the property on the present terms. Then to enter into a practical process to develop a viable and financially sustainable social housing project. Through this to give low and moderate income households a real opportunity to live in the inner city in good quality and well managed rental units. In the long run this will be in the service of a more economically integrated and dynamic city.

MHA is fully committed to work with the Province, the City and other stakeholders to make this a reality, and help set an example in the country of what is possible in building a truly integrated city.

Yours sincerely,

Renier Erasmus

CEO Madulammoho Housing

PDF here.


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