Nelson Mandela Bay has secured R33.3m to construct 153 new homes in Joe Slovo and KwaNobuhle Area 11.
Although the allocation covers only a fraction of the metro's 100,000-unit housing backlog, the municipality has highlighted the development's impact for residents.
The municipality had requested funding from the Eastern Cape department of human settlements for 800 houses — 500 in Joe Slovo and 300 in KwaNobuhle Area 11 — but received approval for 83 and 70, respectively.
Construction started on October 1, with completion scheduled for February 26.
Approval for 153 houses amounts to about 19% of the combined request, leaving 647 homes outside the approved allocation.
The municipality said the metro had about 150 informal settlements, with thousands of residents living without secure tenure, adequate shelter or dependable access to basic services.
Mayor Babalwa Lobishe said though the number of houses being built was small against the scale of demand, they would make a substantial difference to beneficiaries.
“This number might sound like a small number, but it means a lot to an elderly woman who stays in a shack with her grandchildren, who by the Easter season will spend time in a formal house for the first time.”
Lobishe said the municipality prioritised vulnerable residents in its housing programme.
“As we build houses, we have to understand the disparities.
"As we deliver houses, we focus on the elderly, households headed by children, people with disabilities, the unemployed and those who are earning between R0 and R3,500, who are eligible for subsidised housing in terms of the human settlements policy,” she said.
For the 2026/2027 financial year, the Joe Slovo development has a budget of about R18.1m and KwaNobuhle Area 11 about R15.2m.
Seven SMME contractors have been appointed across the developments — three in Joe Slovo and four in KwaNobuhle Area 11.
The municipality attributed the wider housing delivery challenge to funding constraints, rising construction and material costs, a shortage of suitably located serviced land and the need for bulk infrastructure before houses could be built.
Lobishe said the municipality was working with provincial and national government to secure larger housing allocations.
“We have built our internal capacity, and we are now capable of delivering much bigger developments so that we can make a difference in the 100,000 housing backlog that we have."
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