The policy will apply to developers who will have developments of 20 residential units or more.
The policy does not limit the accommodation of low-income earners to specific areas only, which means that developers who take up projects in more affluent areas of the city will still be compelled to abide by the policy.
According to Moneyweb, some property developers were critical of the policy. The South African Property Owners Association lamented the city's disregard of the concerns they had brought forth at the proposal of the policy last year.
Property developers have four options for inclusionary housing to choose from, including setting aside 30% of the entire development to social housing, finance-linked individual subsidy (Flisp), or capped rent.
With this last option, the city says rent will be capped at R21,000 (in 2018 prices) for people earning R7,000 a month or less.
The policy will be effective as of May 2019.