The City of Johannesburg has identified a new opportunity to release abandoned factories to the private sector to convert into low-cost affordable housing, mayor Herman Mashaba said on Sunday.

This followed on the back of 84 buildings being awarded to developers across the inner city, which would generate an expected R21 billion in investment, 11,000 construction sector jobs, and over 6,000 affordable housing units, he said in a statement.

A further 70 buildings would be awarded by September 2019, set to yield another expected R15 billion in investment, 10,000 jobs, and 5,000 more housing opportunities. These properties all formed part of the 500 buildings identified for expropriation in the inner city.

“Following on this success in the inner city, the multi-party government has now identified 37 abandoned factories across the city, specifically those located in areas in desperate need of housing opportunities. Arising from their large stand sizes, the yield of these properties will offer nearly 3000 housing opportunities in multi-story buildings,” Mashaba said.

The abandoned factories identified were located in areas such as Kew, Devland, Rabie Ridge, Doornfontein, Booysens, and Nancefield. Of particular interest were 16 factories identified in close proximity to Alexandra, offering the much needed opportunity to reduce the density of settlement in this under-developed township.

The city would now begin a process of preparing a proposal to council in August 2019, which would allow the city to begin the legal proceedings of expropriating these properties as abandoned buildings. These factories would be expropriated within the existing legal framework of the Constitution.

“For this we will utilise the fact that they are abandoned, owners are untraceable and monies owing on these properties exceed their value. The support of council is anticipated on this proposal, given how all political parties believe deeply in addressing the housing shortages in our city,” Mashaba said.

Once this had been granted, the city would be able to put these properties out to the private sector and award them on the criteria that achieved the largest number of residential units, the lowest rentals, the highest job creation and investment.

The city previously sought to tackle the housing backlog with a reliance on RDP housing each year, which could never begin to reduce the challenge. This was why the multi-party government had adopted an approach which was producing sizeable results in site and service projects, informal settlement upgrades, social housing, and partnering with the private sector.

“In the environment in which government alone cannot address the staggering housing backlogs, it is imperative that we create the environment for the private sector to unleash the potential of their balance sheets, expertise, and efficiency to the benefit of the poorest residents in our city,” Mashaba said.

The city had considerable plans in the 2019/20 financial year to roll-out over 2000 RDP houses, 4000 serviced stands, and 10 informal settlement upgrades. The extension of the property release programme into areas with massive housing shortages would aid the efforts of the multi-party government to turnaround the housing backlogs in Johannesburg, he said.

– African News Agency (ANA)

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