Submission on the Amended 2026/27 City Budget: Housing and Development
From "Comment on Amendments to 2026/27 March Tabled Budget"
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I appreciate the opportunity to comment on the amendments to the 2026/27 March Tabled Budget. The recent High Court ruling has rightly prompted a review of the City’s tariff and rate structures. However, the amended budget still underplays the constitutional obligation set out in Section 153 of the Constitution: that municipalities must structure their administration, budgeting and planning to promote social and economic development. Housing is the most visible test of that duty.
Constitutional and Policy Context
Housing delivery, land release and informal settlement upgrading are not discretionary projects. They are constitutional imperatives. The City’s budget should link property rates, land use and infrastructure investment directly to inclusive housing outcomes.
Key Concerns
- The amendments focus on tariff adjustments but omit measurable housing targets.
- Property rates relief (R620 000 threshold) is welcome yet insufficient without faster approvals and well‑located land release.
- Informal settlement upgrading remains underfunded relative to the R40 billion infrastructure envelope.
- No indicators exist for housing delivery, turnaround times or land release — all essential to Section 153 compliance.
Recommendations
1. Integrate housing metrics into the City’s performance framework: approval times, units delivered and hectares of land released for affordable housing.
2. Allocate a defined portion of the infrastructure budget to upgrading informal settlements and supporting mixed‑income developments near transport corridors.
3. Publish a transparent land‑release schedule for City‑owned parcels.
4. Link rates policy to social outcomes by protecting lower‑income households from displacement and incentivising inclusionary development.
5. Establish a Section 153 Housing Oversight Committee within Council to monitor delivery against these benchmarks.
Cape Town’s success cannot be measured only in infrastructure spend or tariff compliance. A city that cannot house its own residents cannot claim world‑class status. Housing is the frontline test of development — and the clearest measure of whether the City’s budget fulfils its constitutional mandate.
