Stellenbosch’s Inclusionary Zoning Policy – Lessons and Insights on Policy Development

In June 2023, Stellenbosch Municipality became the first municipality in the Western Cape, and the second in the country, to adopt an Inclusionary Zoning Policy. This policy outlines mechanisms for private developers to contribute to the development of inclusionary housing in certain key areas. Using innovative land policy tools and incentives, the municipality has encouraged private developers to incorporate inclusionary housing as part of their residential developments in the Adam Tas Corridor catalytic development area. By ensuring that at least 30% of their residential units are inclusionary, developers are able to unlock additional development rights, which, in turn, offer further revenue generating opportunities. This publication offers key insights on the development and implementation of this trailblazing policy.

Releasing Municipal Land for Affordable Housing – A Community Guide

This user-friendly resource guide is designed as a tool to empower community-based organisations (CBOs), community leaders, land activists and civic groups to better understand, engage with and influence how municipalities in South Africa release municipal land for the development of affordable housing. It unpacks the often complex municipal land release process – which is characterised by several legal, financial and administrative factors – and emphasises opportunities within the process where communities can influence municipal land release. By outlining the formal municipal land release process and alternative avenues – such as engaging in local spatial planning systems and land audits (termed “Phase 0”) – the guide aims to strengthen community participation and ensure better use of well-located municipal land.

Applying Tax Increment Financing in South Africa – Lessons and Insights from the Dunkeld Pilot

Tax Increment Financing, or TIF, is a public finance tool that redirects the rise in property tax revenues stimulated by infrastructure investments, to fund urban development projects.

By capturing future tax growth, municipalities can unlock immediate capital for critical infrastructure. The concept was initially assessed for application in South Africa through a pilot study in Dunkeld, Johannesburg, led by the City of Johannesburg (CoJ), National Treasury, and the World Bank in 2015. The pilot sought to determine whether the anticipated tax increments from the redevelopment of the Dunkeld neighbourhood in Johannesburg could finance the infrastructure upgrades required for Dunkeld’s development.

Size Limited Inclusionary Housing in Johannesburg

In 2019, the City of Johannesburg (CoJ) Municipal Council approved South Africa’s first municipal-wide Inclusionary Housing Policy. In response to push back from developers and political leadership, the City made a compromise in the policy where inclusionary housing was not defined in terms of price only, but also in terms of unit size. This was met by some criticism, which questioned whether smaller units with no price limitations could genuinely promote inclusion and affordability. This publication reflects on the first four years of the policy’s implemen­tation, with a specific focus on the size-limited approach.

Inclusionary Housing Practice Note: The Key Considerations for Initialising an Inclusionary Housing Policy and Feasibility study

As part of the National Land Value Capture Programme, the National Partnership supports metros as they develop and envision inclusionary housing policies and more specifically conduct feasibility studies. This publication draws on this experience and therefore serves as a useful reference for policy makers, development prac­titioners and civil society organisations. This detailed and clear inclusionary housing practice note is also a key tool for processes such as: negotiations on Inclusionary Housing contribu­tion expected from developers in the absence of policy; determining the feasibility of policy parameters, and the review and evaluation of existing policy or practice.

Releasing Municipal Land for Affordable Housing: Documenting the experiences of Cape Town, eThekwini, Johannesburg, and Tshwane

This publication is the result of a project undertaken by a group of practitioners, technical experts, and academics from different spheres of society, all with different knowledge and specialised expertise. Uniting all partners is a shared interest in the potential for well-located public land to be used as a strategic resource to help transform cities through the development of affordable housing. This research aims to improve people’s understanding of the intricate process involved in releasing municipal property for social and affordable housing in well-located areas. The report focuses on case studies of four metropolitan municipalities—Cape Town, eThekwini (Durban), Johannesburg and Tshwane (Pretoria)— and documents their experiences of disposing land for affordable housing.

Legal Opinion on Inclusionary Housing In-Lieu Payments

The report provides a legal opinion on several questions relating to the Inclusionary Housing fees-in-lieu requirement where a developer pays a financial contribution as an alternative to providing affordable units on-site or off-site. The legal opinion concludes that a municipality does have the power to impose a condition for the payment of fees-in-lieu in certain limited circumstances, and outlines what would be required to authorise a broader application of this type of contribution. Importantly, the opinion finds that imposition of fees-in-lieu would not constitute a municipal tax.

Small-scale rental housing
Moving from the low to the high road

This publication highlights the role that small-scale developers play in the provision of affordable rental housing. Importantly, the publication unpacks reforms and incentives necessary to formalise small-scale rental housing in township areas. The report is the exciting product of a partnership between DAG’s Contractor and Developer Academy and the National Land Value Capture Programme.

Bridging Divides
Building an Inclusionary Housing Policy in Cape Town

This publication documents the unique procedure of the policy development process for the Cape Town Inclusionary Housing Policy. Bridging Divides: Building an Inclusionary Housing Policy in Cape Town is the first publication of the National Land Value Capture Programme, which was put together to act as a guide and a valuable resource for other metros wanting to develop inclusionary housing policies.

Legal Aspects of Inclusionary Housing in South Africa

This legal research report clarifies the legal position on Inclusionary Housing as a land use planning instrument. The legal research specifically focused on legal implications for (i) mandating spatially targeted inclusionary housing conditions in active urban land markets and (ii) providing an “in-lieu fees” option to development applicants for satisfying inclusionary housing requirements. The report concludes that there is sufficient legal basis under South African law to authorise municipally imposed mandatory inclusionary housing requirements and more tentatively, to provide for an in-lieu fee option.

National Land Value Capture Programme Inception Report Final

The partnership programme implementation started with a six months inception phase which comprises a series of planned activities aimed at defining project scope, key thematic areas and detailed implementation plan for the next three years. The inception phase period has proved to be an important and necessary phase for the project team to define not only the project scope and detailed implementation plan, but also to establish the
governance arrangements and partnerships necessary for the successful implementation of this program.