Mossel Bay has been identified as one of the 10 lead towns in the Western Cape that will participate in the affordable rental housing scheme launched by the Western Cape Department of Human Settlements.

As a result the Town Council at its monthly meeting in April 2016 approved a restructuring zone which has been identified for the establishment of the housing. It also approved  the alienation of the identified land to the accredited housing institution that is to be established and an Affordable Rental Housing Strategy and Implementation Plan as a guide for the implementation of the Government-assisted rental housing.
The area that has been identified for the housing is in the corridor on both sides of Louis Fourie Road between Schoeman and Mayixhale Streets.

The implementation of the project will depend on further negotiations on funding and related issues between the Western Cape Department of Human Settlements and the National Department of Human Settlements whose mandate is it is in terms of the Constitution of South Africa to finance the top structures at housing projects.
In terms of the Council resolution the alienation of the identified land portions to the proposed housing institution is subject to the terms and conditions approved by Council, including the transfer of the risk of all losses and profits on such activities.