SMK Housing Development

Historical Context and Background Information

The desperate need for housing for low income families is well identified and is particularly critical in the Gauteng area which has become a point of focus for many unemployed people from throughout the country. The actual need for housing is difficult to define and the shortfall largely depends on who is doing the analysis, however, it is common cause that there is a pressing need for several hundred thousand houses, a large number of which are required in the Gauteng area. Because of budgetary constraints the Provincial Housing Boards, which have been tasked to facilitate the development of housing particularly for low income families, have been unable to address the need fully. Initiative has been taken by groups of homeless people to form associations or "stokvels" with the purpose of collecting money to facilitate their own housing process. Some of them have been organised into registered institutions such as Trusts or Section 21 Companies but others remain as "Clubs" or "Associations". All of these vehicles allow communities to combine their efforts with a view to providing themselves with housing.

The level of savings in "stokvels" varies considerably, suffice to say that although the amount saved is often significant in terms of the savers it is not significant in terms of their overall need for housing. This saving can, at best, be regarded as a rallying point for membership of the particular institution and, possibly,also for certain preliminary costs associated with a development proposal. It is not, however, in any way adequate for providing collateral for an actual funding requirement. We have been dealing with a"stokvel" known as the Madela Kufa for some five years during which time several attempts have been made to initiate development for their membership. The Madela Kufa has approximately 4000 families/members who wish to take their own initiative regarding the provision of housing. The Madela Kufa was joined by another "stokvel" from the Tembisa area, namely, the Sophiatown Housing Committee (officially the Sophiatown Land Development Association, a Section 21 Company) which has approximately 10000 members. These groups have agreed to combine their efforts in finding a solution to their housing problem.

The proposed project is, therefore, to develop approximately 14000 housing units on the eastern Witwatersrand. Such a development would require an estimated 700 Ha of land and may have to be split into more than one township.

A first phase of approximately 1 800 houses located on approximately 100 Ha is proposed. As a vehicle for the development a new Section 21 Company has been formed being representative of the two "stokvels" and the promoters. This Association is known as SMK Housing Association. It is intended that SMK will, over time, be fully controlled by the homeowners in the development. SMK Housing Association will maintain the environment of the development as well as the parks and open spaces using funds paid in by the residents.

Proposed Project

For the purpose of the proposal it is assumed that a First Phase will have been funded from a Grant obtained independently. This Phase will include certain of the link services required for the entire project. The overall proposal is to provide fully serviced residential sub-divisions having water reticulation water borne sewerage, roads and storm water and electrification.

On each sub-division, or portion of sub-division, a basic dwelling of approximately 42m2 is to be erected. The current estimate for such a development is R58 000 per unit, or about US$8 300 at current exchange rates. Any project of this magnitude would, in addition, require the development of link services to existing development and the creation of social infrastructure such as schools, clinics and sports facilities. A conceptual breakdown of the facilities required appears in Annexure B.

It is proposed that the houses will be made available to individual families on a freehold basis and that the amount which individual families would be expected to pay for their housing would be determined by a means test and will not necessarily relate to market costs. Such payment would be made to the Section 21 Company as representative of all beneficiaries and the funds so gathered could either be used for social infrastructure in the development area or as Capital for further projects of the same nature. See the Business Plan (Annexure G) for further details.

Process

Subject to an agreement in principle that the necessary funds can be raised an identified suitable piece of ground on the East Rand will be acquired. This land is in an area genetically known as the Bromberg and we undertook a study of the entire area some time ago to identify the most advantageous development areas. The Vlakfontein area was found to be most advantageous a particularly from the point of view of geological conditions and municipal services. Details of the available land are attached as Annexure F. Preliminary work in this area has already been done, but it is not prudent to negotiate on a particular tract of land before preliminary approval of funding has been secured. Budgeting has been done on the basis of R3 000,00 per dwelling for land cost. Where existing houses or structures exist these will be included in the planning for purposes such as clinics, creches or other social buildings. The extra cost of these buildings will be met from the Social Buildings portion of the budget as a saving in the cost of construction will obviously be made.

In anticipation of suitable arrangements for funding being made a major contractor willing to participate will be identified. It is anticipated that a range of other, smaller, contractors will become involved in the project. Any contractor involved will be expected to utilise local emerging contractors and empower local people in the construction process and, indeed, the entire proposal will be based on the assumption that useful skills will be transferred to the population during the development process, such skills to place the residents in a position to be able to maintain the assets created thereby protecting their equity in these assets.

PRELIMINARY SCOPE OF FULL PROJECT

On the assumption that a total 14000 dwelling units will be provided on the basis of free standing dwelling units, row houses and possibly walk-ups,certain social facilities would be required. An example of a typical "foot print" of a housing unit is attached. This "foot print" can be incorporated into a range of options and will be modified in exterior appearance by the various architects employed. As an indication a development of this size would justify, at least, the following facilities and budgeting has been done on this basis (some of these facilities will be constructed):

1. Town Hall. A town, or large community, hall with attendant facilities,offices and meeting rooms.

2. Clinic. Between three and five clinics, at least one of which would be in the form of a day
hospital and one in the form of a overnight clinic dealing chiefly with births.

3. Schools. It is estimated that there will need to be approximately 20 schools at primary and
secondary school level in the ratio of two to one.

4. Creches - places of safety. These facilities are often provided directly by the community, but
the provision of approximately 20 such centres on a more or less formal basis as part of the
initial development is envisaged.

5. Police Station. A centralised police station with prisoner holdingfacilities and, at least two
satellite police stations depending on the arrangement of the final development.

6. S.O.S. Children's Village. This village will be built into the project but will be equipped and
operated by S.O.S. International.

7. A Family Crisis Centre with limited accommodation to be equipped and operated by The
Salvation Army.

8. Formal playing fields.

8.1 It is envisaged that a formalised play/recreation area will be provided per 500 dwelling
units. This would be in the form of an area suitable for informal ball games and, possibly,
basketball or netball (gross area between 250m2 and 400m2).

8.2 It is envisaged that the majority of sports fields for football, cricket and the like will be
associated directly with the schools. This is in line with modern planning and, therefore, the
costs of these facilities are associated with the costs of the development of the schools. It
is, however, suggested that a single "mini" stadium with provision for seating for between
5000 and 6000 spectators be provided as a public facility.

9. Public open space. Public open space will be provided in terms of good town planning practice
and a budget for landscaping will be provided.

10. Shopping. As is typical in residential areas the economic level being considered here is much
"convenience shopping" which is transacted at spaza shops which are developed informally
throughout the area. Care will be taken to incorporate the appropriate zoning rights in the
residential areas to provide for the spontaneous development of spaza shops. The development
of more formal shopping precincts will be allowed for in the planning, but it is not envisaged
that the development will undertake the actual construction of such centres. Market forces
will dictate the need for and the viability of more formal shopping and the evolution thereof
will be left to the market to decide.

11. Churches. Provision will be made for the land for churches but it is not envisaged that the
development itself will take any part in the construction of churches.