KNYSNA NEWS - As municipal budgets tighten globally, local governments like Knysna are exploring innovative ways to deliver essential services. 

In line with this, Knysna Municipality has launched a new Public-Private Partnership (PPP) to develop Erf 3339 in Hornlee, aiming to fast-track housing for lower- and middle-income residents.

The municipality sees this as a pioneering solution, fully funded by private investment and designed to serve a broad spectrum of residents including nurses, teachers, municipal workers and young professionals.

Mayor Thando Matika confirmed the appointment of KRMS Consulting as the transaction advisor under a formal service level agreement. The envisioned mixed-use development will include freehold plots for middle-income earners and affordable flats and townhouses for lower-income families. 

Mayoral committee member for Human Settlements, Neil Louw, emphasised the importance of such developments in bridging the housing gap for the "missing middle" - those who earn too much to qualify for subsidies but too little to access home loans.

However, the project has sparked significant opposition from the Hornlee Inclusive Housing Solutions (HIHS), a community-led initiative established during earlier stages of the Erf 3339 planning process.

HIHS claims that the new approach deviates sharply from previous commitments and lacks transparency and consultation. According to HIHS convenor Deswin Talmaggies, 63 serviced plots were previously earmarked for qualifying beneficiaries, some of whom had even received formal confirmations from the municipality.

Talmaggies stated that the community is not opposed to development, but feels betrayed by the sudden changes and lack of meaningful engagement. 

Erf 3339 in Hornlee. Photo: Rozano Alie

Frustrations have grown after failed attempts to meet with municipal officials, including a cancelled meeting with Matika. 

During a meeting on 13 August, the HIHS steering committee raised concerns over unclear timelines, erf sizes, repayment terms, and the unaffordable upfront payment of R52 000, which excludes many intended beneficiaries from participating.

HIHS is calling for renewed dialogue, transparency, and a return to the original, inclusive housing plan that had community backing.

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