Is there room for a UIP in Umbilo? It’s a community decision.

First up – USA is not advocating for the setting up of a UIP in Umbilo however we are exploring if some parts of Umbilo, such as the business district and main thoroughfares, could benefit from creating one.

However it is important for everyone to understand what a UIP is.

An Urban Improvement Precinct (UIP) is started by residents as a way of managing the improvement and running of their own area. International research shows that areas that adopt a UIP approach to the management of public spaces in partnership with the municipality results in property values out performing areas without a UIP.

Within cities, urban decay can threaten the quality of life of residents and their confidence in the area which in turn affects property values. Examples of such decay include:

Crime and grime
Poor service in public areas
Poorly maintained infrastructure
Lack of social cohesion and interest in public spaces

All of the above are linked and exacerbate the other leading to rapid decline. For this reason, although safety and security is the number one priority of UIPs, it cannot be effectively addressed without addressing the other issues mentioned.

It is important to note that the services that an area will receive from the municipality is not linked to the amount of rates they may contribute to the city. The level of services from the municipality is a set level of service. A UIP is able to fill that gap in order to ensure a higher level of service to public areas and at the same time it is able to hold the Municipality to account on service delivery more effectively than by individuals.

Can a UIP work in Umbilo?

Yes. A UIP is essentially a community fund that the community directs towards projects we need. Umbilo is a key inner city suburb, close to excellent schools, tertiary institutions and work opportunities. It is also an affordable suburb, making it perfect for families. If we want our suburb to thrive, become a safer place for children and move crime away from our area, then a UIP is an excellent solution. If we form a UIP in Umbilo we will be joining our neighbouring suburb of Glenwood on the UIP journey and together we will create one of the most desirable areas in the inner city.

How is it funded and structured?

The Urban Improved Precinct (UIP) is based on the Municipal Property Rates Act of 2004 which allows for the establishment of a Special Rating Area (SRA) for a defined geographical area. The property owners have to agree to pay for certain services in addition to the normal municipal services.

The UIP in terms of the Act must set up a non-profit company with a board of non-remunerated directors. The board will be constituted by representatives of the property owners. The board needs to approve a Business Plan and annual budget to provide the selected additional services.

The UIP budget is funded by the property owners and is calculated on a pro-rata basis using the existing municipal values of each property in the selected area. The payment is levied on the municipal rates bill and collected by the Municipality on behalf of the UIP NPO.

What will it do for us residents?

Revitalise the predominantly residential area of Umbilo
Improve safety, the general environment and quality of life for all in the proposed precinct such as improving our parks
Target an upward trajectory for property values
Encourage environmental sustainability and social cohesion within the community

Examples of other UIPs in Durban

– Ballito UIP. Umhlanga UIP, Florida Road UIP, Kloof Maytime SRA, Pigeon Valley UIP (Glenwood residential area), Glenwood UIP (Ester Roberts Rd and surrounding business areas)

UIP Formation Process

Define Area. Determine services. Draft a three year business plan
Apply to Municipality with at least 25% support of ratepayers in vote and number
Advertise Application; Hold public meeting, call for comments, submit to council for recommendation
Obtain Municipal Approval
Upon council approval, obtain 51% business or 66% residential from ratepayers.
Inform council of majority
Register Section 21 Company
Appointment a management agency
Implement business plan, collect assessed levies, commence service contracts

Okay. This sounds great. What happens next?

If there is sufficient interest we need to get the steps listed above rolling. If you are interested in becoming part of the steering committee email info@umbilo.org.za or contact Jonathan on 0732276075.