Last week, City officials met with property developers and members of the public in order to provide feedback on public comments to the City's proposed inclusionary policy.

The proposed policy aims to make the provision of quality low-cost housing within all new residential complex developments a compulsory requirement. The policy - sent out for comment earlier this year in order to solicit public opinion - seeks to bridge the divide created by apartheid spatial planning by encouraging the provision of low-cost housing within all new developments.

The policy aims to do this by making it mandatory for every new development of 10 dwelling units or more to include 20% inclusionary housing. The City proposes that, when managed privately, inclusionary housing should cater for households with an income of R7000 or less per month or should fit into published social housing bands. The City further proposes that inclusionary housing should be affordable for the median household, where securing access to affordable housing does not exceed 30% of a household's gross income, including taxes and insurance for owners, and utility costs.

Two management options for inclusionary units are proposed, one being social housing - by a registered social housing institution - and the other, private ownership and management by the building owner or body corporate, with rents capped at R2100 per month, in accordance with 2018 prices; whilst also allowing for inflationary increases.

A number of design requirements for the units are also included in the proposed policy.

In order to get buy-in from business, the City has proposed incentives which include, proportional bonuses in development controls, reduction in parking requirements, reductions in parks and bulk infrastructure contributions, and a rates rebate for the inclusionary units.

Speaking about the proposal, Executive Mayor, Cllr Herman Mashaba said it was necessary for the City to take this route because the majority of the residents living in Johannesburg earned too little to afford high rentals associated with many of the developments springing up.

“This is especially so when one considers that, in Johannesburg, 50% of households earn less than R3543 a month while 40% earn less than R2487.

A third of the residents of the City earn less than R2224 a month, with the remaining 25% earning less than R1751 a month," said Mashaba.

Cllr Mashaba said the low-end of the housing market was increasingly becoming important.

“There is also preliminary evidence that the new-build housing market is already evolving to incorporate lower income housing options, as demand at the high end plateaus, and the vast market for affordable housing is coming into play."