A formula will be finalised shortly for reserving portions of new residential-property investments for low-cost housing, Minister of Housing Lindiwe Sisulu has said.
Her department was holding discussions with stakeholders to determine the percentage required to be set aside, she said in a written reply to a parliamentary question.
”It is envisaged that this inclusionary housing programme will be finalised by the middle of this financial year.”
Property developers have agreed, in principle, to reserve a percentage of the total value of commercial housing developments for investment in low-cost housing. This would apply to developments above a price threshold yet to be determined.
To this end, the government and industry have signed a ”social contract for rapid housing delivery”, the minister said.
”Details … will be further explored with the sectors concerned, taking cognisance of international best practice,” the minister’s response reads.
Research by the government and private sector had been presented to the signatories of the social contract, after which a task team was set up to develop an ”inclusionary housing programme” in line with the commitments agreed to.
”The national Department of Housing is currently leading discussions with the various stakeholders to obtain finality, inter alia, on the percentage required in terms of an inclusionary housing programme.” — Sapa