Mayor Geordin Hill-Lewis says the Development Charges Fund will unlock new investment for more affordable housing development faster than the government can build. ‘This is harnessing the power of private investment to achieve an important public outcome: more affordable accommodation.’
In addition, 75% of the City’s record R12.1 billion infrastructure budget for the 2024/25 financial year will be allocated towards lower-income communities and households, including services such as better water and sanitation, roads, community facilities, and public transport infrastructure. The applicant must confirm that project funding is available before the payment of the development charges from the Development Charges Fund will take place to ensure payments from the DC Fund are prioritised and paid to those developers who are ready to commence with the development. This requirement does not exclude developers to apply for assistance from the fund, it is only a requirement before payment can happen.
‘Now that Council has approved the creation of the Development Charges Fund, these property owners can apply to the City for their development charges to be subsidised from this fund, which will significantly bring down the cost of building the rental units,’ he adds.