SOUTH AFRICAN PROPERTY OWNERS ASSOCIATION (SAPOA)

THE VOICE OF COMMERCIAL PROPERTY

www.sapoa.org.za

 

 

 

The Housing Portfolio Committee

28th February 2008

 

ATT: Ms Koliswa Pasiya

 

Dear madam

 

RE: SAPOA comments on the Housing Development  Agency Bill

 

1. SAPOA was established in 1966 by South African’s property investment organizations, to bring together all role players in the commercial property field and to create a powerful platform for property investors. As SAPOA’s members control approximately 90% of all commercial and industrial property in South Africa, SAPOA is recognized as the representative body and official voice of the commercial and industrial property in this country. SAPOA is held in high esteem by the relevant sectors of government and is accordingly consulted on all matters pertaining to the property industry.

 

2. The objective of the Housing Development Agency Bill (herein after referred to as the HDA) is to enable the state to identify, acquire, manage and dispose of land for affordable housing. It is likely that the primary targeted land will be high value land for integrated developments at medium to high density, with a mix of market-priced and affordable units.

 

3. The supply-led approach assumes that the HDA itself will be well capacitated and able to bring to bear sophisticated skills currently lacking at local and provincial level in identifying appropriate land for purchase, negotiating with developers, fast tracking approval processes etc. The extent to which the HDA will in fact have such capacity is unclear, given the general context of skills shortages as evidenced by severe capacity constraints at Local Government level.

 

4. The Department of Land Affairs’ draft Land Use Management Bill, the precise content of which is still uncertain, may, when enacted, fundamentally change the legal and policy context for low-income housing development. In the absence of this Bill, the existing legal framework is quite confused. The Development Facilitation Act tends to be poorly implemented, and the old-order local government land use planning ordinances are still being relied upon in varying degrees.

 

 

 

The National Department of Housing will be seen as competing with private sector

developers. This may lead to a slow-down in private sector housing development as smaller developers withdraw from the market. There is a risk that the private sector will refuse to engage with the HDA, thus making it impossible for the HDA to dispose of the land it acquires. Any land not expeditiously disposed of would both reduce the overall amount of land available for housing development, and also impose considerable land management costs on the HDA.

 

5. Hope and trust you find the above in order.

 

 

 

 

 

Yours faithfully

 

Tsakane Shilubane

Legal Services Manager

Cc Neil Gopal SAPOA (CEO)