The Department of Housing hereby publishes the draft Social Hous information, discussion and comment.
To promote and establish a sustainable social housing environment; to define the functions of national, provincial and local governments in respect of social housing; to provide for the establishment of the Social Housing Regulatory Authority regulating all social housing institutions obtaining or having obtained public funds; to allow for the undertaking of approved projects by other delivery agents with the benefit of public money; to give statutory recognition to social housing institutions; and to provide for matters incidental thereto.
of the Housing Act, 1997 (Act No.
"National Housing Finance Corporation" means the National Housing Finance Corporation incorporated as a public company in terms of the Companies Act, 1973 (Act No.
"Public Finance Management Act" means the Public Finance Management Act, 1999 (Act No.
"social housing institution" or "institution" means an institution accredited or provisionally accredited under this Act which carries or intends to carry on the business of providing rental and co-operative housing options for low to medium income persons (excluding immediate individual ownership and a contract as defined under the Alienation of Land Act, 1981 (Act No.
"this Act" includes the regulations, any rules, directives or instructions made under it.
consult meaningfully with interested individuals, communities and financial institutions in all phases of social housing development; ensure the sustainable and viable growth of affordable social housing as an objective of housing policy; facilitate the involvement of residents and key stakeholders through meaningful consultation, information sharing, education, training and skills transfer, thereby meaningfully empowering residents; ensure secure tenure for the residents in social housing institutions, on the basis of the general provisions governing the relationship between tenants and landlords as set out in the Rental Housing Act, 1999 (Act No.
the use of public funds in such a manner that stimulates or facilitates private sector investment and participation in the social housing sector.
any principle for social housing development in addition to, and consistent with, the principles set out in subsection (1); and any principle set out in subsection (1) in greater detail, but not inconsistent therewith.
Minister must, before prescribing any such principle, cause a draft of such principle to be published in the Gazette and must consider any comment on such draft principle received from any person during a period of 30 days after such publication.
in the Gazette during the period covered in the list, must, within 14 days after the publication of any such notice in the Gazette, be submitted to Parliament for approval..
Such list of notices must in respect of each notice state the number and title of the notice and the number and date of the Gazette in which it was published.
If Parliament disapproves of any principle in such notice or any provision of such principle, such principle or provision ceases to have effect, but without prejudice to the validity of anything done in terms of such principle or provision before it so ceased to have effect; and any right or liability acquired or incurred in terms of such principle or provision before it so ceased to have effect.
designate restructuring zones submitted by provinces and identified by municipalities and specifically provided for in a municipality's integrated development plan contemplated in section 25 of the Local Government: Municipal Systems Act, 2000 (Act No.
ensure and make available the funds from the Department's budget for the operational costs and commitments of the Regulatory Authority in accordance with the approved social housing investment plan and social housing regulatory plan, respectively; and monitor the Regulatory Authority and hold it accountable, costs and expenses connected with the implementation of this Act must be defrayed from money appropriated by Parliament to the Department for that purpose.
and develop the capacity of municipalities in respect of social housing.
A provincial government may not intervene in the governance or management of social housing institutions, and the Regulatory Authority, subject to the provisions of section 11(3)(k), may not intervene in the monitoring of social housing projects.
to municipal infrastructure and services for approved projects in approved restructuring zones; and, to the extent permitted under the Local Government: Municipal Finance Management Act, 2003 (Act No.
initiate and motivate the identification of restructuring zones; and enter into performance agreements with social housing institutions.
explore and support mechanisms aimed at gearing public funding for social housing; and conclude an agreement with the Regulatory Authority aimed at avoiding the duplication of effort and overregulation of social housing institutions.
Other delivery agents are not subject to the regulatory powers of the Regulatory Authority referred to in section 12, but are subject to the terms and conditions contained in agreements concluded with the Regulatory Authority referred to in subsection (2).
The Social Housing Regulatory Authority is hereby established as a juristic person.
The Chief Executive Officer and the Corporate Services Manager shall serve as executive members of the Council.
The Council shall consist of at least seven and no more than twelve fit and proper persons who nave knowledge, experience or qualifications in the field of social and rental housing, regulation or other competencies for the proper governance of the' Regulatory Authority.
Members of the Council shall serve in a non-executive capacity and be appointed only after the Minister has through the media and by notice in the Gazette invited nominations of persons as candidates for the respective positions on the Council.
A member of the Council is appointed for the period determined by the Minister at his or her appointment, but not exceeding three years at a time, and may, subject to subsection (2), be reappointed on the termination of that period.
Minister may at any time terminate the membership of a member of the Council for reasons which are just and fair.
The Council must adopt standing instructions to ensure compliance with the provisions of this Act, the Public Finance Management Act, 1999 (Act No.1 of 1999) and any other legislation applicable to the Regulatory Authority.
Authority and may delegate such functions as it may consider appropriate, including any function under section 12, to such committee.
The Council shall prescribe the necessary matters and procedures relating to meetings of the Council.
of the members.
9 he or she has failed to attend three consecutive meetings, without apology or justified excuse.
senior managers responsible for the necessary activities of the Regulatory Authority such as accreditation, compliance, institutional investment, capital investment of the Regulatory Authority; and any other persons, appointed by the Chief Executive Officer on the salary, terms and other conditions determined by him or her to perform the work incidental to the carrying out of its functions by the Regulatory Authority.
enter into agreements with provincial government and the National Housing Finance Corporation to ensure co-ordinated exercise of powers; and perform any other function or exercise any other power that the Minister may prescribe.
instruct a social housing institution not to accept a social housing project allocated to it where the Regulatory Authority is of the opinion that the social housing institution will not be able to complete the project successfully or that it will undermine the social housing institution's viability; and do all things necessary to ensure good governance and sustainability of social housing institutions.
prescribe, after consultation with the Minister, any matter which is necessary or desirable to be prescribed by the Regulatory Authority in order to achieve the objectives of this Act, including the prescription of penalties and powers of intervention; and issue such directives, instructions and circulars as may necessary for th exercise of its functions under this Act.
conclude such contracts and institute such proceedings as may be necessary for the exercise of its powers and fulfillment of its functions under this Act.
If the Regulatory Authority, following an inspection, investigation or review by the Regulatory Authority, finds non-compliance with the provisions of this Act or a need for intervention in view of the financial, governance or management situation, condition or failure of the social housing institution, a report must be prepared and the social housing institution must be instructed to take the remedial action specified in a notice to the social housing institution.
may be required by the Regulatory Authority to obtain specified support to rectify such non-compliance, situation, condition or failure.
The Regulatory Authority may make available funds through the social housing investment plan to assist in meeting the costs of any such support.
If the social housing institution is unwilling to accept the instruction, or is not accepting the specified support, the Regulatory Authority may request the Council to approve intervention into the affairs of the institution by appointing additional members to board of the institution and the insistence that the social housing institution comply with the instruction notified to it.
Should the social housing institution continue to resist the intervention of the Regulatory Authority or improvements in its performance are not delivered, the Regulatory Authority may request the Council to authorise a forensic investigation into the institution's affairs by a public accountant and auditor as contemplated under the Public Accountant's and Auditor's Act, 1991 (Act No.
The Regulatory Authority, after consultation with the providers of any debt finance to the institution and upon notice to affected parties, including the providers of finance to the institution, may apply to the High Court for the suspension of the chairperson, members of the board, manager or executive or senior staff of the institution for the period of the investigation and appoint suitably qualified people to manage the institution's affairs in their place pending the findings of the forensic audit report..
The forensic audit report must make a finding on whether the social housing institution has been managed in a manner which constitutes maladministration.
If the forensic audit report does not make a finding of maladministration, the suspended persons are automatically re-instated as from the date of such report and the Regulatory Authority must review its previous instructions to the institution.
If the forensic audit finds maladministration, the Regulatory Authority must request the members of the social housing institution to replace any suspended person or person associated with the maladministration with a person acceptable to or recommended by the Regulatory Authority.
may transfer the housing stock or rights of the social housing institution to another social housing institution prepared to accept such transfer on such terms and conditions as may be agreed at the time; or where appropriate, institute legal proceedings for the winding up of the institution.
the administration order to be lifted; and the appointment of suitable persons as directors and office bearers of the institution.
any other rights according to law.
access to its records and documentation; and the seizure and photocopying of such records and documentation as may be required for investigation, subject to such limitations as may be prescribed by the Minister.
This section, in accordance with the provisions of section 6(2), does not apply to other delivery agents.
CHAPTER 4 13.
As from the commencement of this Act, all institutions having undertaken housing development with the benefit of the institutional subsidy, are provisionally accredited social housing institutions for purposes of this Act and subject to the provisions of this Act and the powers of the Regulatory Authority.
Provisional accreditation pursuant to subsection (1) lapses on the date prescribed by the Minister.
An institution wishing to carry on the business of social housing must in the prescribed format apply to the Regulatory Authority for accreditation and registration. A municipality wishing to participate in social housing may establish an institution, and that institution may apply to the Regulatory Authority for accreditation and registration.
(Act No. 14 of 2005) or any other form of institution acceptable to the Regulatory Authority.
Should a social housing institution comply with all the qualifying criteria, it shall be accredited as a social housing institution in terms of this Act and its details must be entered in a register kept for this purpose by the Regulatory Authority.
A social housing institution must comply with all the provisions of the Act in terms whereof it was established and any other applicable law, and any contravention of the said provisions may result in its accreditation being withdrawn by the Regulatory Authority.
The lapsing of the provisional accreditation, or the withdrawal of accreditation in terms of this Act, does not preclude the Regulatory Authority from exercising any of its powers under this Act.
seek permission from the Regulatory Authority for any changes to lease agreements or other prescribed documentation; and seek permission from the Regulatory Authority for any prescribed matter.
the national building regulations under the National Building Regulations and Building Standards Act, 1977 (Act No.
the technical standards imposed by the National Home Builders Registration Council established under the Housing Consumer Protection Measures Act, 1998 (Act No.
the provisions of the Rental Housing Act, 1999 (Act No. 50 of 1999); and any other law, where applicable.
A social housing institution must ensure that the content of its lease agreement is communicated to residents and are strictly adhered to by residents.
submit to the Regulatory Authority a copy of its performance agreement with the municipality.
must be in writing and a copy of the letter of appointment sent to the Regulatory Authority within 21 days of such appointment.
Any vacancy in the office of the Manager must, within three months of such vacancy occurring, be filled, or all reasonable steps taken to procure same, and a copy of the new appointment must be sent to the Regulatory Authority in terms of subsection (2).
During the period of such vacancy the social housing institution must ensure that a competent person acts as manager.
at intervals and in details as prescribed in regulations contemplated in section 18 and annually, within six months of the financial year-end.
documentation to be provided annual in terms of subsection (1) (b) must include the social housing institution's Annual Report and audited financial statements.
A social housing institution must make available to the Regulatory Authority any information reasonably requested of it in the carrying out of its regulatory and investment functions.
The Regulatory Authority must, subject to the Promotion of Access to Information Act, 2000 (Act No. 2 of 2000), maintain the confidentiality of business sensitive information passed under regulatory confidence to it by a person.
Financing of social housing.
The Minister may allocate money out of the Department's budget for purposes of funding the social housing programme and for financing the implementation of the social housing programme and any relevant provincial housing programme which is consistent with national housing policy, in a province, in accordance with the social housing investment plan and the social housing regulatory plan.
must be determined by the Minister after consultation with every MEC.
must be paid over to the province in accordance with the provisions of the annual Division of Revenue Act.
for the purposes of the Public Finance Management Act, 1999 (Act No. 1 of 1999), and the regulations made thereunder, the accounting officer in respect of the money in the Department's budget; and responsible for the administration thereof.
That portion of the money in the Department's budget which has been earmarked for social housing development may be utilised only for the purposes set out in the Act, any regulations made in terms of the Act, and the annual Division of Revenue Act: Provided that, when any funds are transferred in terms of the annual Division of Revenue Act, the Director-General must ensure that the provisions of that Act are complied with.
a code of conduct.
may create offences and provide for penalties in respect thereof.
This Act is called the Social Housing Act, 2006 and takes effect on a date determined by the President by proclamation in the Gazette.