Addressing housing shortages has been a key goal of the South African government since it became a new democracy in 1994. In 2008, the Social Housing Act 16 the Social Housing Regulatory Authority was established, which accredits and oversees social housing institutions (SHI). SHIs are generally aimed at providing adequate and affordable rental housing in urban locations for low- and moderate-income populations. They have played an important role in meeting housing needs, and by 2018, there were 83 SHIs that were contributing 13.6% of the total housing stock.
From this housing policy, a clear relationship between SHIs and municipalities is established. An SHI initiates a performance agreement with a municipality, and the agreement includes information on the land availability agreement, details on the housing project, the financial plan, and an outline of the responsibilities of the municipality in terms of land and service provision. In terms of land acquisition, the South African government has established restructuring zones, which are located in the urban core and have been targeted for infill development.
Source:
UN-Habitat. (2023) Comparative Analysis of Non-Profit Housing Legal Frameworks in five countries: Austria, Brazil, England, Netherlands, and South Africa: Urban Legal Case Studies, Volume 12.