SA Affordable Housing September - October 2019 // ISSUE: 78 | Page 33

PROJECT
Project launch.
of development is a maximisation and enhancement of the
development and its prosperity.
The development is split between each type of
housing to the following ratio:
• 15% to 30% having an income of R3 500 to R7 000
• another segment of 40% to 50% up to R12 000;
and
• the balance of between 20% and 55% which is
more on the exclusive side.
Rental rates can have a spread of R800/month to
R6 000/month (the latter being an entry level two-
bedroom house of 33m², and up to 50m², to 60m².
Different types of housing will be grouped into
neighbourhoods with their own access control and
separated from other neighbourhoods by open spaces.
The 100% government subsidies and social housing will
consist of apartments, while bonded units are stand alone.
There is also approximately 680 rent-to-own units
aimed at mine workers and government employees,
says Mhlaba, which will be developed through an
offtake agreement with mines and managed somewhat
differently. “Such an agreement, covering five to ten
years, then enables funding to be sourced.”
Marketing will be done in conjunction with the major
banks, home loan originators and real estate companies,
with the developer SCM Properties and Development
holding workshops with potential beneficiaries who
qualify for government FLISP subsidised and affordable
GAP housing – given the development targets multiple
income segments.
SCOPE OF WORK
“It started as a green fields development meaning
it was a land used for farming that was turned into
Montrose Township. It provides subsidised housing:
www.saaffordablehousing.co.za
"It [Montrose] is responsible
for all levels of construction,
appointing a varied mix of
contractors - emerging and
experienced; medium-sized
and larger - with the purpose
of uplifting and empowering
contractors, enabling them to
improve their CIDB grading."
100% subsidy (1 608 units in Phase 1) and for military
veterans (174 units), social housing (1 915 units),
bonded units (1 225 units), and apartment units/
Community Rental Units (680) for a total of 5 602
units,” says Mhlaba. Under government regulations,
there are qualifying criteria for each category, such as a
wage cap or provable military experience.
There will ultimately be a population of between
56 000 and 70 000 people in the township. Phases 1
and 2 will be split by the railway line, and as it will be
a busy place, Mhlaba explains it will also require two
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