Social Housing Act, 2008

15. M a n a g e m e nt of social housing institutions 16. Reporting by social h o u s i ng institutions C H A P T ER 5 G E N E R AL P R O V I S I O NS 17. 18. 19. 20. Just administrative action F i n a n c i ng of social h o u s i ng Regulations Short title and c o m m e n c e m e nt C H A P T ER 1 D E F I N I T I O NS A ND G E N E R AL P R I N C I P L ES A P P L I C A B LE TO S O C I AL H O U S I NG Definitions

1. In this Act, unless the context indicates o t h e r w i s e— Act No. 16, 2008 SOCIAL HOUSING ACT, 2008 " a c c r e d i t a t i o n" m e a ns the screening, evaluation, provisional and final accredita­ tion by the Regulatory Authority that will, a m o n g st other things, allow a social h o u s i ng institution access to grants available under the social h o u s i ng p r o g r a m m e; " a p p r o v ed p r o j e c t" m e a ns a social h o u s i ng project in a restructuring z o ne approved by a provincial g o v e r n m e nt pursuant to an application for capital grant funding to undertake the acquisition, d e v e l o p m e n t, conversion or u p g r a d i ng of buildings for social housing; this A ct or a situation or lease a g r e e m e nt utilised by a social "capital g r a n t" m e a ns the capital grant contemplated in the social h o u s i ng policy; " C o u n c i l" m e a ns the Council appointed in terms of section 9; " D e p a r t m e n t" m e a ns the National D e p a r t m e nt of H o u s i n g; " D i r e c t o r - G e n e r a l" m e a ns the Director-General of the National D e p a r t m e nt of H o u s i n g; " h o u se r u l e s" m e a ns the rules in relation to the control, m a n a g e m e n t, a d m i n i s­ tration, use and enjoyment of the property of a social h o u s i ng institution; " H o u s i ng Act, 1 9 9 7" m e a ns the H o u s i ng A ct 1997 (Act N o. 107 of 1997); "institutional i n v e s t m e nt g r a n t" m e a ns o ne or m o re of the capacity-building grants c o n t e m p l a t ed in the social housing policy; "institutional i n v e s t m e nt p l a n" m e a ns a training and skills d e v e l o p m e nt plan which is a c o m p o n e nt of the social housing investment plan intended to e n s u re that social h o u s i ng institutions acquire the expertise, skills and operational capacity to m a n a ge such institutions on a sustainable basis and p r o d u ce and m a n a ge a p p r o v ed projects; " i n v e s t m e nt criteria" m e a ns the criteria against which the Regulatory Authority m ay m a ke investments in social housing institutions; "lease a g r e e m e n t" m e a ns the standard h o u s i ng institution, and includes the h o u se rules; " l ow to m e d i um i n c o me h o u s e h o l d s" m e a ns those h o u s e h o l ds falling within the i n c o me categories as d e t e r m i n ed by the Minister from time to time; " m a l a d m i n i s t r a t i o n" m e a ns n o n - c o m p l i a n ce with condition indicating substantial financial, g o v e r n a n ce or m a n a g e m e nt failure; " M E C" m e a ns the m e m b er of the Executive Council of a province responsible for housing; " M i n i s t e r" m e a ns the National Minister of H o u s i n g; " M i n m e c" m e a ns a standing intergovernmental body consisting of at least the Minister and the M E Cs responsible for housing. " N a t i o n al H o u s i ng F i n a n ce C o r p o r a t i o n" m e a ns the National H o u s i ng F i n a n ce Corporation incorporated as a public c o m p a ny in terms of the C o m p a n i es Act, 1973 (Act N o. 61 of 1973); " n a t i o n al h o u s i ng p r o g r a m m e" m e a ns a p r o g r a m me c o n t e m p l a t ed in section 3(4)(g) of the H o u s i ng Act, 1997; " N H B R C" m e a ns the National H o me Builders Registration C o u n c i l, established under the H o u s i ng C o n s u m er Protection M e a s u r es Act, 1998 (Act N o. 95 of 1998): " o t h er delivery a g e n t" m e a ns an entity other than a social h o u s i ng institution w h i ch m ay undertake an a p p r o v ed project, but excludes a provincial g o v e r n m e nt or a municipality; " p a r l i a m e n t a ry c o m m i t t e e s" m e a ns the Portfolio and Select C o m m i t t e es of Parliament responsible for H o u s i n g. " p r e s c r i b e" m e a ns prescribe by the Minister by regulation or prescribe by the Regulatory Authority in its rules, as the case may be; "provincial g o v e r n m e n t" m e a ns a provincial g o v e r n m e n t, acting through M EC responsible for housing; " P u b l ic F i n a n ce M a n a g e m e nt A c t" m e a ns the Public F i n a n ce M a n a g e m e nt Act, 1999 (Act N o. 1 of 1999); " p u b l ic f u n d s" m e a ns the institutional subsidy or any other g o v e r n m e nt subsidy utilised for creation of housing stock or any funding provided p u r s u a nt to this Act; "qualifying c r i t e r i a" m e a ns the criteria applied by the Regulatory Authority for p u r p o s es of the accreditation of a social housing institution as prescribed by the Minister; " r e g u l a t i o n" m e a ns a regulation under this Act; " R e g u l a t o ry A u t h o r i t y" m e a ns established by section 7; " r e s t r u c t u r i ng z o n e" m e a ns a geographic area which h as b e e n— the Social H o u s i ng R e g u l a t o ry Authority the Act No. 16, 2008 SOCIAL HOUSING ACT, 2008 the c o n c u r r e n ce of the provincial (a) the municipality, with identified by g o v e r n m e n t, for purposes of social h o u s i n g; and designated by the Minister in the Gazette (b) "social h o u s i n g" m e a ns a rental or co-operative h o u s i ng option for l ow to m e d i um i n c o me h o u s e h o l ds requires institutionalised m a n a g e m e nt and which is p r o v i d ed by social h o u s i ng institutions or other delivery agents in approved projects in designated restructuring z o n es with the benefit of public funding as c o n t e m p l a t ed in this Act; for approved projects; form w h i ch and built level of at a scale "social h o u s i ng i n s t i t u t i o n" m e a ns an institution accredited or provisionally accredited under this Act which carries or intends to carry on the business of i n c o me p r o v i d i ng rental or co-operative h o u s i ng options for h o u s e h o l ds (excluding i m m e d i a te individual o w n e r s h ip and a contract as defined under the Alienation of L a nd Act, 1981 (Act N o. 68 of 1981)), on an affordable basis, e n s u r i ng quality and m a x i m um benefits for residents, and m a n a g i ng its h o u s i ng stock over the long term; to m e d i um low "social h o u s i ng i n v e s t m e nt p l a n" m e a ns a corporate plan and budget as required by the Public Finance M a n a g e m e nt Act, c o m p r i s i ng a capital investment plan and an institutional investment plan for the capital institutional and investment activity of the Regulatory Authority for purposes of the social h o u s i ng p r o g r a m m e; "social h o u s i ng p o l i c y" m e a ns the official social h o u s i ng policy as d e t e r m i n ed by the Minister in terms of section 3(2)(a) of the H o u s i ng Act, 1997; "social h o u s i ng p r o g r a m m e" m e a ns the national housing p r o g r a m me for social h o u s i n g, instituted by the Minister in t e r ms of section 3{4)(g) of the H o u s i ng Act, 1997; "social h o u s i ng regulatory p l a n" m e a ns a corporate plan and budget as required u n d er section 52 of Public F i n a n ce M a n a g e m e nt Act; and "this A c t" includes the regulations, any rules, directives or instructions m a de u n d er it. G e n e r al principles a p p l i c a b le to social h o u s i ng 2. ( 1) In giving priority to the needs of low and m e d i um i n c o me h o u s e h o l ds in respect of social housing d e v e l o p m e n t, the national, provincial and local spheres of g o v e r n m e nt and social h o u s i ng institutions m u s t— (a) (b) (c) (d) (e) (f) (g) (h) ensure their respective h o u s i ng p r o g r a m m es are r e s p o n s i ve to local h o u s i ng d e m a n d s, and special priority m u st be given to the needs of w o m e n, children, c h i l d - h e a d ed households, persons with disabilities and the elderly; support the e c o n o m ic d e v e l o p m e nt of l ow to m e d i um i n c o me c o m m u n i t i es by p r o v i d i ng housing close to j o b s, m a r k e ts and transport and by stimulating j ob opportunities to emerging entrepreneurs in the housing services and c o n s t r u c­ tion industries; afford residents the necessary dignity and privacy by providing the residents with a clean, healthy and safe e n v i r o n m e n t: not discriminate against residents on any of the g r o u n ds set out in section 9 of the Constitution, including individuals affected by H IV and A I D S; consult with interested individuals, c o m m u n i t i es and financial all phases of social housing d e v e l o p m e n t; ensure the sustainable and viable g r o w th of affordable social h o u s i ng as an objective of housing policy; facilitate the i n v o l v e m e nt of residents and key stakeholders through consul­ tation, information sharing, education, training and skills transfer, e m p o w e r i ng residents; ensure secure tenure for residents in social housing institutions, on the basis of the general provisions g o v e r n i ng tenants and landlords as set out in the Rental H o u s i ng Act, 1999 (Act N o. 50 of 1999), and b e t w e en primary housing co-operatives and its m e m b e rs as set out in the C o - o p e r a t i v es Act, 2 0 05 "(Act N o. 14 of 2 0 0 5 ); the relationship b e t w e en institutions in thereby Act No. 16, 2008 SOCIAL HOUSING ACT, 2008 (i) p r o m o t e— (i) (ii) (iii) (iv) is c o n d u c i ve to the realisation of the roles, an e n v i r o n m e nt w h i ch responsibilities and obligations by all role-players entering the social housing market; training opportunities for stakeholders and interested parties w ho wish to enter the social h o u s i ng market; the establishment, d e v e l o p m e nt and m a i n t e n a n ce of e c o n o m i c a l ly viable c o m m u n i t i es to ensure the elimination and p r e v e n­ tion of s l u ms and slum conditions; social, physical and e c o n o m ic integration of h o u s i ng d e v e l o p m e nt into existing urban and inner-city areas through the creation of quality living e n v i r o n m e n t s; socially a nd (v) m e d i um to higher density in respect of social housing d e v e l o p m e nt to (vi) (vii) (viii) (ix) (x) (xi) (xii) in social h o u s i ng identity and diversity ensure the e c o n o m i c al utilisation of land and services; the provision of social, c o m m u n i ty and recreational facilities close to social h o u s i ng d e v e l o p m e n t; the expression of cultural d e v e l o p m e n t; the suitable location of social housing stock in respect of e m p l o y m e nt opportunities: the c o n v e r s i on or u p g r a d i ng of suitable residential and non-residential buildings for social housing use; incentives to social h o u s i ng institutions and other delivery agents to enter the social h o u s i ng market; an u n d e r s t a n d i ng and awareness of social h o u s i ng p r o c e s s e s; transparency, accountability and efficiency m a n a g e m e nt of social housing stock; in the administration and (xiv) in relation institutional capacity (xiii) best practices and m i n i m um n o r ms and standards delivery and m a n a g e m e nt of social h o u s i n g; the provision of to initiatives; the creation of sustainable, viable and i n d e p e n d e nt h o u s i ng institutions responsible social h o u s i ng stock; and the use of public funds in a m a n n er that stimulates or facilitates private sector investment and participation in the social h o u s i ng sector. for providing, developing, holding or m a n a g i ng social h o u s i ng support (xvi) (xv) the to (2) (a) T he Minister may, by notice in the Gazette, prescribe any principle for social in to, and consistent with, the principles set out in addition h o u s i ng d e v e l o p m e nt subsection (1). (b) T he M i n i s t er must, before prescribing any principle c o n t e m p l a t ed in p a r a g r a ph (a)- (i) c a u se a draft of such principle to be published by notice in the Gazette invite the public to c o m m e nt within 30 days after such publication; and (ii) after the period c o n t e m p l a t ed in s u b p a r a g r a ph (i) h as lapsed, submit a list of notices published in t e r ms of subparagraph (i) to P a r l i a m e nt for approval. (c) T he list of notices c o n t e m p l a t ed in p a r a g r a ph (b)(i) must in respect of each notice in w h i ch state the n u m b er and title of the notice and the n u m b er and date of the Gazette it w as published. (d) T he M i n i s t er m ay only prescribe a principle c o n t e m p l a t ed in paragraph (b) if all c o m m e n ts h a ve been considered and Parliament has a p p r o v ed the prescribing of the principle. Act No. 16, 2008 SOCIAL HOUSING ACT, 2008 C H A P T ER 2 R O L ES A ND R E S P O N S I B I L I T I ES Roles a nd responsibilities of national g o v e r n m e nt 3. (1) National g o v e r n m e n t, acting through the Minister, m u s t— (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) restructuring zones submitted by provinces and create and uphold an enabling e n v i r o n m e nt for social housing, by providing the legislative, regulatory, financial and policy f r a m e w o rk for the delivery of social housing; ensure c o m p l i a n ce with its constitutional responsibilities; address issues that affect the g r o w t h, d e v e l o p m e nt or sustainability of the social housing sector; establish with provinces and municipalities institutional capacity to support social housing initiatives; institute and fund the social h o u s i ng p r o g r a m me as a national h o u s i ng p r o g r a m me to p r o m o te the d e v e l o p m e nt and supply of social h o u s i ng stock for low to m e d i um i n c o me p e r s o n s; identified by designate integrated municipalities and specifically p r o v i d ed for in a m u n i c i p a l i t y 's d e v e l o p m e nt plan contemplated in section 25 of the Local G o v e r n m e n t: M u n i c i p al S y s t e ms Act, 2 0 00 (Act N o. 32 of 2 0 0 0 ), and may, w h e re appropriate, after d ue notice in the Gazette, w i t h d r aw such d e s i g n a t i o n: establish capital and institutional investment grants; review annually and a p p r o ve the social h o u s i ng i n v e s t m e nt plan and the social housing regulatory plan; allocate funds from the D e p a r t m e n t 's b u d g et for the operational costs and c o m m i t m e n ts of the Regulatory Authority in a c c o r d a n ce with the a p p r o v ed regulatory plan, social housing respectively; d e t e r m i ne n o r ms and standards to be adhered to by p r o v i n c es and municipali­ ties; and investment plan and the social h o u s i ng (k) monitor the Regulatory Authority. (2) T he costs and expenses c o n n e c t ed with the i m p l e m e n t a t i on of this Act must be defrayed from m o n ey appropriated by Parliament to the D e p a r t m e nt for that p u r p o s e. R o l es a nd responsibilities of provincial g o v e r n m e nt 4. (1) Every provincial g o v e r n m e n t, through its M E C, m u s t— (a) (b) ensure fairness, equity and c o m p l i a n ce with national and provincial social housing n o r ms and standards; ensure the protection of c o n s u m e rs by creating a w a r e n e ss of c o n s u m e r s' rights and obligations; facilitate sustainability and g r o w th in the social h o u s i ng sector; (c) (d) mediate in cases of conflict b e t w e en a social h o u s i ng institution or other delivery agent and a municipality, if required; submit p r o p o s ed restructuring z o n es to the M i n i s t e r; (e) (f) monitor social housing projects to ascertain that relevant prescripts, n o r ms (g) (h) (i) and standards are being c o m p l i ed with; a p p r o v e, allocate and administer capital grants, in the m a n n er c o n t e m p l a t ed in the social housing investment plan, in a p p r o v ed projects; ensure that the process c o n t e m p l a t ed in paragraph (g) is c o n d u c t ed efficiently; administer this p u r p o se a p p r o v e— (i) any projects in respect thereof; and (ii) thereof out of m o n ey paid into the accredited bank account the social housing p r o g r a m m e, and m ay the financing of the province as c o n t e m p l a t ed in section 18(3): and for (j) d e v e l op the capacity of municipalities to fulfil the roles and responsibilities c o n t e m p l a t ed in section 5. (2) A provincial g o v e r n m e nt may not interfere with the g o v e r n a n ce or m a n a g e m e nt of social housing institutions. (3) Subject to section 11(3)(k), t he Regulatory Authority m ay not interfere with the m o n i t o r i ng of social housing projects. Act No. 16, 2008 SOCIAL HOUSING ACT, 2008 Roles a nd responsibilities of m u n i c i p a l i t i es

5. A municipality must, where its municipal area, as part of integrated d e v e l o p m e nt planning, take all reasonable and necessary steps, within the national and provincial legislative, regulatory and policy f r a m e w o r k— there is a d e m a nd for social h o u s i ng within the m u n i c i p a l i t y 's process of (a) (b) (c) (d) to facilitate social housing delivery in its area of jurisdiction; to e n c o u r a ge the d e v e l o p m e nt of new social h o u s i ng stock and the u p g r a d i ng of existing stock or the conversion of existing non-residential stock; to p r o v i de a c c e s s— (i) in d e s i g n a t ed to land and buildings for social housing d e v e l o p m e nt restructuring zones; for social housing institutions to acquire municipal rental stock; to municipal designated restructuring zones; and infrastructure and services for a p p r o v ed projects in (ii) (iii) to the extent permitted under the Local G o v e r n m e n t: Municipal F i n a n ce M a n a g e m e nt Act, 2 0 03 (Act N o. 56 of 2 0 0 3 ), and the Local G o v e r n m e n t: M u n i c i p al S y s t e ms Act, 2 0 00 (Act N o. 32 of 2 0 0 0 ), t o— (i) (ii) enter into p e r f o r m a n ce a g r e e m e n ts with social h o u s i ng institutions. initiate and motivate the identification of restructuring z o n e s; and R o l es a nd responsibilities of o t h er role-players 6. (1) Subject to such directives as the Minister m ay issue by notice in the Gazette, t he National H o u s i ng F i n a n ce Corporation must, in respect of social h o u s i n g— provide access to loan funding; (a) (b) m a ke available to the Regulatory Authority w h en requested information to enable it to assess the institutional health and financial sustainability of social housing institutions; facilitate or, where possible, provide access to g u a r a n t e es for loan from financial institutions; explore and support m e c h a n i s ms a i m ed at facilitating public funding social housing; and conclude an a g r e e m e nt with the R e g u l a t o ry Authority a i m ed at a v o i d i ng the duplication of functions and overregulation of social h o u s i ng institutions. funding for (c) (d) (e) thereto any financial (2) Other delivery agents may undertake approved projects in d e s i g n a t ed restructur­ ing zones with the benefit of public funding to the extent d e t e r m i n ed in the social housing p r o g r a m me pursuant to a g r e e m e n ts c o n c l u d ed with the Regulatory Authority as c o n t e m p l a t ed in sections l l ( 3 ) ( d) and 19(1)(b)(i). C H A P T ER 3 S O C I AL H O U S I NG R E G U L A T O RY A U T H O R I TY E s t a b l i s h m e nt of Social H o u s i ng R e g u l a t o ry A u t h o r i ty 7. (1) T h e re is hereby established a juristic person to be k n o wn as the Social H o u s i ng Regulatory Authority. (2) T he Public F i n a n ce M a n a g e m e nt Act applies to the Social H o u s i ng R e g u l a t o ry Authority. (3) T he Social H o u s i ng Regulatory Authority is a c c o u n t a b le to the M i n i s t er and Parliament. C o m p o s i t i on of R e g u l a t o ry A u t h o r i ty 8. (1) T he Regulatory Authority consists of a— (a) Council, appointed in a c c o r d a n ce with section 9; Act No. 16, 2008 SOCIAL HOUSING ACT, 2008 (b) Chief E x e c u t i ve Officer, appointed by the C o u n c il with the a p p r o v al of the Minister, responsible for the day to day m a n a g e m e nt of the affairs of the R e g u l a t o ry Authority; (c) C o r p o r a te Services Manager, appointed by responsible services. for financial m a n a g e m e n t, the Chief E x e c u t i ve Officer, including corporate m a n a g e m e nt (2) T he Chief E x e c u t i ve Officer and the C o r p o r a te Services M a n a g er serve as executive m e m b e rs of the Council. (3) T he Regulatory Authority acts through the C o u n c il and all acts of the Council are regarded as acts of the Regulatory Authority. A p p o i n t m e nt of C o u n c il 9. (1) T he Council consists of at least seven and not m o re than 12 fit and proper persons w ho have k n o w l e d g e, experience or qualifications in the field of social and the rental housing or other applicable c o m p e t e n c i es for the proper g o v e r n a n ce of Regulatory Authority. (2) (a) T he Minister must, by notice in the Gazette as well as in the national n e ws media, including at least two newspapers circulating t h r o u g h o ut the Republic, call for the nomination of persons w ho comply with the criteria referred to in subsection (1). (b) T he Minister must establish a selection c o m m i t t ee consisting of not m o re than seven m e m b e r s, t wo of w h om must be the chairpersons of the p a r l i a m e n t a ry c o m m i t t e es or their delegates, to advise the Minister on the a p p o i n t m e n t s. (3) T he m e m b e rs contemplated in subsection (1) m u st be appointed by the Minister and serve in a non-executive capacity. (4) A m e m b er of the C o u n c il is appointed for the period d e t e r m i n ed by the Minister (2), be three years at a time, and may, subject to subsection but not e x c e e d i ng reappointed on the termination of that period. (5) T he Minister m ay at any time terminate the m e m b e r s h ip of a m e m b er of the Council for reasons which are just and fair. (6) A m e m b er of the Council other than a person w ho is in the full-time e m p l o y m e nt of the State, is paid an a l l o w a n ce d e t e r m i n ed by the Minister with the approval of the Minister of F i n a n c e. (7) A m e m b er of the Council ceases to be a m e m b er if— (a) (b) (c) (d) (e) (f) he or she resigns; his or her estate is sequestrated; he or she b e c o m es of unsound m i n d; he or she is convicted of an offence and sentenced to i m p r i s o n m e nt without the option of a fine; he or she b e c o m es an e m p l o y ee or director of a social h o u s i ng institution, a m e m b er of Parliament, of a provincial legislature, of a municipal council, of the Cabinet or of the Executive Council of a P r o v i n c e; or he or she has failed to attend three c o n s e c u t i ve m e e t i n g s, without an a p o l o gy or justified excuse. (8) T he Council must adopt standing instructions to ensure c o m p l i a n ce with this Act, the legislation applicable the Public Finance M a n a g e m e nt Act and any other Regulatory Authority. to its responsibilities under the A ct and to e n s u re proper g o v e r n a n ce of (9) T he Council may appoint such c o m m i t t e es as it m ay consider appropriate for fulfilling the Regulatory Authority and may delegate such p o w er or assign such functions as it m ay consider appropriate, including any p o w er or function under section 12. to such c o m m i t t e e. (10) T he Council must establish the necessary matters and p r o c e d u r es relating to m e e t i n gs of the Council. (11) T he q u o r um for any meeting of the Council is at least 5 0% plus 1 of the m e m b e r s. Act No. 16, 2008 SOCIAL HOUSING ACT, 2008 Staff of R e g u l a t o ry A u t h o r i ty 10. (1) T he staff of the R e g u l a t o ry Authority consists of— (a) (b) senior m a n a g e rs responsible for the n e c e s s a ry activities of t he R e g u l a t o ry A u t h o r i ty such as accreditation, c o m p l i a n c e, institutional investment, capital investment of the R e g u l a t o ry A u t h o r i t y; and such other persons as are necessary to perform the functions incidental to the functions of the R e g u l a t o ry Authority. (2) T he staff of the R e g u l a t o ry A u t h o r i ty m u st be a p p o i n t ed by the C h i ef E x e c u t i ve Officer on the salary, terms and other conditions d e t e r m i n ed by the Chief E x e c u t i ve Officer in consultation with the C o u n c i l. F u n c t i o ns of R e g u l a t o ry A u t h o r i ty 11. (1) T he Regulatory Authority m u s t, subject to t he p r o v i s i o ns of this A c t— (a) (b) (c) (d) (e) (f) (g) (h) (i) p r o m o te the d e v e l o p m e nt and a w a r e n e ss of social h o u s i n g; provide advice and support to the D e p a r t m e nt in its d e v e l o p m e nt of policy for the social h o u s i ng sector and facilitate national social h o u s i ng p r o g r a m m e s; advise the Minister on d e v e l o p m e n ts in the social h o u s i ng sector; p r o m o te an enabling e n v i r o n m e nt for the g r o w th and d e v e l o p m e nt of the social h o u s i ng sector; provide best practice information and research on the status of the social h o u s i ng sector; support provincial g o v e r n m e n ts with the approval of project applications by social h o u s i ng institutions; assist, w h e re requested, in the p r o c e ss of the d e s i g n a t i on of restructuring z o n e s; enter into a g r e e m e n ts with provincial g o v e r n m e n ts and the National H o u s i ng F i n a n ce Corporation to e n s u re the c o - o r d i n a t ed exercise of p o w e r s; and perform any other function or exercise any other p o w er that the M i n i s t er m ay prescribe. (2) T he Regulatory A u t h o r i ty m u s t— (a) (b) (c) i n v e s t m e nt plan and annually, in a c c o r d a n ce with the Public F i n a n ce M a n a g e m e nt Act. p r e p a re the social h o u s i ng the social h o u s i ng and submit regulatory plan to the Minister; annually, in a c c o r d a n ce with the Public F i n a n ce M a n a g e m e nt Act, p r e p a re and submit annual financial statements and an annual report to the M i n i s t er on its p e r f o r m a n ce in respect of the social h o u s i ng i n v e s t m e nt plan and t he social h o u s i ng regulatory plan, respectively, d u r i ng the p r e c e d i ng year; and c o m p ly with the provisions of the Public F i n a n ce M a n a g e m e nt Act and regulations applicable to public entities. (3) T he R e g u l a t o ry Authority must, subject to the p r o v i s i o ns of this A c t— (a) (b) financial assistance to social h o u s i ng institutions t h r o u gh grants to p r o v i de service p r o v i d e rs accredited by the R e g u l a t o ry A u t h o r i ty to e n a b le t h em to d e v e l op institutional capacity, gain accreditation as social h o u s i ng institu­ tions, and to submit viable project applications; accredit institutions m e e t i ng accreditation criteria as social h o u s i ng tions: institu­ (i) which is open for (c) maintain a register of social housing institutions with the prescribed d e t a i l s— the Regulatory Authority during n o r m al b u s i n e ss h o u rs against p a y m e nt of the prescribed fee; and annually provide a copy D e p a r t m e n t; the public at the p r e m i s es of the National Treasury and inspection by thereof (ii) the to (d) into suitable a g r e e m e n ts with social h o u s i ng enter institutions and other delivery agents for the protection of the g o v e r n m e n t 's i n v e s t m e nt in social h o u s i n g; Act No. 16, 2008 SOCIAL HOUSING ACT, 2008 (e) (f) (g) (h) (i) (j) (k) (l) through regular c o n d u ct c o m p l i a n ce m o n i t o r i ng i n s p e c t i o ns and enforce c o m p l i a n c e, w h e re necessary through the exercise of its p o w e rs set out in section 12; intervene in the affairs of a social h o u s i ng institution in cases of m a l a d m i n­ istration, and take the necessary steps to rectify such m a l a d m i n i s t r a t i on as c o n t e m p l a t ed in section 12; a p p r o v e, administer and d i s b u r se institutional i n v e s t m e nt grants and capital grants and obtain applications for such grants through e n g a g e m e nt with provincial g o v e r n m e n ts and municipalities; consider applications from social h o u s i ng institutions to d i s p o se of properties d e v e l o p e d, refurbished or p u r c h a s ed with the assistance of public funding and a p p r o ve or refuse applications on the basis of c o m p l i a n ce with the investment criteria forming part of the regulations; consider applications from social h o u s i ng accreditation and be r e m o v ed from institutions and a p p r o ve or refuse applications p r e s c r i b ed regulations and rules; c o n s i d er applications from social h o u s i ng institutions to a m e nd their lease a g r e e m e n ts and a p p r o ve or refuse such applications on the r e g u l a t i o n s; instruct a social h o u s i ng institution not to accept a social h o u s i ng project allocated to it (i) their the public register of social h o u s i ng t he the social housing institution will not be able to c o m p l e te the project successfully; or it will u n d e r m i ne the social h o u s i ng institution's viability: and (ii) do all things necessary to ensure good g o v e r n a n ce and sustainability of social h o u s i ng institutions. in a c c o r d a n ce with to relinquish the basis of institutions if— (4) T he R e g u l a t o ry A u t h o r i ty may, subject to the p r o v i s i o ns of this Act and by notice in the Gazette— (a) m a ke rules, not in conflict with the r e g u l a t i o n s— (i) g i v i ng effect and detailed content to the r e g u l a t i o n s; (ii) prescribing necessary standards, ratios, p r o c e d u r e s, r e q u i r e m e n t s, forms and returns; further regulating the c o n d u ct of social h o u s i ng institutions; (iii) (iv) prescribing p r o c e d u r es for c o m p l i a n ce m o n i t o r i ng and the e n f o r c e m e nt in the affairs of social h o u s i ng of c o m p l i a n c e, including intervention institutions; or specifically authorised or required by regulation; (b) (c) (v) prescribe, after consultation with the Minister, any other rules for the p r o p er functioning of the Regulatory A u t h o r i t y; and issue such directives, instructions and circulars as m ay be n e c e s s a ry for the exercise of its functions u n d er this A c t. (5) T he R e g u l a t o ry Authority may, subject to the p r o v i s i o ns of this A c t— (a) (b) (c) establish such c o m m i t t e es as m ay be necessary to meet its objectives; delegate its p o w e rs to c o m m i t t e es and officers, on such t e r ms and c o n d i t i o ns as it m ay d e em necessary, but m ay not divest itself of s u ch p o w e r s; c o n c l u de such contracts and institute such p r o c e e d i n gs as m ay be necessary for the exercise of its p o w e rs and fulfilment of its functions u n d er this A c t. P o w e rs of i n t e r v e n t i on of R e g u l a t o ry A u t h o r i ty 12. (1) If the R e g u l a t o ry Authority is satisfied on r e a s o n a b le g r o u n ds that there has been m a l a d m i n i s t r a t i on by a social h o u s i ng institution, the R e g u l a t o ry A u t h o r i ty m u s t— (a) (b) (c) intention p r e p a re a report to that effect; p r o v i de the social h o u s i ng institution with a written notice of the R e g u l a t o ry A u t h o r i t y 's in that notice what to intervene, and m u st specify r e m e d i al action must be taken by the social h o u s i ng institution; instruct the social housing institution to take the r e m e d i al action specified in the notice, and may request the institution to obtain specified support in order to rectify such m a l a d m i n i s t r a t i o n. Act No. 16, 2008 SOCIAL HOUSING ACT, 2008 (2) T he R e g u l a t o ry Authority m ay m a ke available funds through the social h o u s i ng investment plan to assist in meeting the costs of any such support. (3) S h o u ld the social housing institution continue to resist the intervention of the R e g u l a t o ry A u t h o r i ty or if there is no i m p r o v e m e nt in p e r f o r m a n ce in respect of the matters w h i ch necessitated the intervention, the Regulatory A u t h o r i ty m ay a u t h o r i se a forensic investigation into the institution's affairs and appoint a public a c c o u n t a nt and auditor registered in terms of the Public A c c o u n t a n t s' and A u d i t o r s ' A c t, 1991 (Act N o. 80 of 1991), to u n d e r t a ke such investigation. (4) T he R e g u l a t o ry Authority may, after consultation with the p r o v i d e rs of any d e bt to the institution and upon notice to affected parties, including the providers of to the institution— finance finance (a) (b) apply to the H i gh Court for the s u s p e n s i on of the chairperson, m e m b e rs of the board, m a n a g er or e x e c u t i ve or senior staff of the institution for the period of the investigation; and appoint suitably qualified p e r s o ns to m a n a ge the institution's affairs in their place p e n d i ng the findings of the forensic audit report. (5 T he forensic audit report m u st m a ke a finding on w h e t h er the social h o u s i ng institution has been m a n a g ed in a m a n n er which constitutes m a l a d m i n i s t r a t i o n. (6) If the forensic audit report d o es not m a ke a finding of m a l a d m i n i s t r a t i o n, the suspended p e r s o ns are automatically re-instated as from the date of such report and the R e g u l a t o ry A u t h o r i ty m u st r e v i ew its p r e v i o us instructions to the institution. (7) If the forensic audit the R e g u l a t o ry A u t h o r i ty m u st request the m e m b e rs of the social h o u s i ng institution to replace any s u s p e n d ed p e r s on or p e r s on associated with to or r e c o m m e n d ed by the Regulatory Authority. the m a l a d m i n i s t r a t i on with a p e r s on a c c e p t a b le finds m a l a d m i n i s t r a t i o n, (8) If the R e g u l a t o ry Authority, based on the forensic audit report, d o es not believe that the institution is sustainable in its current form, or if the social h o u s i ng institution refuses to take the steps required u n d er subsection (8), the R e g u l a t o ry A u t h o r i ty may, after consultation with the providers of debt finance to the institution and upon notice to affected parties, including the providers of finance to the institution, apply to the H i gh Court for an order placing the institution u n d er the administration of the R e g u l a t o ry Authority. (9) If the H i gh Court grants an order placing the institution u n d er the a d m i n i s t r a t i on of the Regulatory Authority, the Regulatory A u t h o r i t y— (a) m u st m a n a ge the institution effectively and efficiently; (b) may r e m o ve the accreditation of the social h o u s i ng institution; (c) m ay transfer the housing stock or rights of the social h o u s i ng institution to another social housing institution prepared to accept such transfer on such t e r ms and conditions as m ay be agreed at the t i m e; or (d) w h e re appropriate, institute legal p r o c e e d i n gs for the w i n d i ng up of the institution. (10) W h e re the Regulatory Authority succeeds in restoring the viability of the institution or any part thereof, it m ay apply to H i gh Court for— (a) (b) the administration order to be lifted; and for an order authorising the R e g u l a t o ry Authority to appoint suitable p e r s o ns as directors and office bearers of the institution. (11) A social h o u s i ng institution or any person directly affected by a decision of the R e g u l a t o ry Authority, m ay e x e r c i s e— (a) (b) any rights to internal review to the Regulatory Authority in a c c o r d a n ce w i th the prescribed p r o c e d u r e s; any other rights according to law. (12) A social h o u s i ng institution for p u r p o s es of any inspection u n d er this A ct must, subject to the provisions of any applicable law and subject to such limitations as may be prescribed by the Minister, allow the R e g u l a t o ry A u t h o r i t y— (a) access to its p r e m i s es or any property d e v e l o p e d, constructed or m a n a g ed by it; Act No. 16, 2008 SOCIAL HOUSING ACT, 2008 (b) (c) access to its records and d o c u m e n t a t i o n; and the seizure and p h o t o c o p y i ng of such records and d o c u m e n t a t i on as may be required for investigation. (13) This section, in a c c o r d a n ce with the provisions of section 6(2), d o es not apply to other delivery agents. C H A P T ER 4 S O C I AL H O U S I NG I N S T I T U T I O NS A c c r e d i t a t i on of social h o u s i ng institutions 13. (1) As from the c o m m e n c e m e nt of this Act. all institutions h a v i ng u n d e r t a k en h o u s i ng d e v e l o p m e n ts with the benefit of an institutional subsidy are provisionally accredited social h o u s i ng institutions for p u r p o s es of this Act, subject to the provisions of this Act and the p o w e rs of the Regulatory Authority. (2) Provisional accreditation pursuant to subsection (1) lapses on the date prescribed by the Minister w h i ch date may not e x c e ed 12 m o n t hs after the c o m m e n c e m e nt of this Act. (3) An institution wishing to carry on the b u s i n e ss of social h o u s i ng must in the prescribed format apply to the Regulatory Authority for accreditation. (4) A municipality w i s h i ng to participate in social h o u s i ng m ay establish an institution, which must be accredited. (5) Subject to any conditions prescribed by the Minister, a social h o u s i ng institution must be a c o m p a ny registered under the C o m p a n i es Act. 1973 (Act N o. 61 of 1973), or a co-operative registered under the C o - o p e r a t i v es Act, 2 0 05 (Act N o. 14 of 2 0 0 5 ). or any other form of institution acceptable to the Regulatory Authority. (6) S h o u ld a social housing institution c o m p ly with all the qualifying criteria, it shall be accredited as a social h o u s i ng institution in t e r ms of this Act a nd its details must be entered in a register kept for this purpose by the Regulatory Authority. (7) S h o u ld a social housing institution at any stage fail to c o m p ly with the qualifying criteria, the Regulatory Authority m a y— (a) (b) exercise the p o w e rs referred to in section 12; and in its discretion and as d e t e r m i n ed in the regulations and upon notice affected p a r t i e s— (i) recover any monies granted to the social h o u s i ng institution in t e r ms of the social housing p r o g r a m m e; to (ii) withhold any further grants; (iii) stipulate conditions relating to reforms to be u n d e r t a k en by the social housing institution or i m p r o v e m e n ts to be effected by it for the p a y m e nt of any grants; and (iv) w h e re necessary, intervene in a c c o r d a n ce with the p r o v i s i o ns of section 12. (8) A social h o u s i ng institution m u st c o m p ly with all the p r o v i s i o ns of the Act in t e r ms of which it w as established and any other applicable law, and any contravention of the said p r o v i s i o ns m ay result in its accreditation being w i t h d r a wn by the R e g u l a t o ry Authority. (9) T he lapsing of provisional accreditation, or the w i t h d r a w al of accreditation in t e r ms of this Act, d o es not preclude the Regulatory Authority from exercising any of its p o w e rs u n d er this Act. F u n c t i o ns of social h o u s i ng institutions 14. (1) Social h o u s i ng institutions m u s t— (a) (b) c o m p ly on an ongoing basis with accreditation; acquire, d e v e l o p, m a n a g e, or both d e v e l op and m a n a g e, a p p r o v ed projects primarily for low i n c o me residents with the j o i nt support of local authorities; the criteria which qualify t h em for Act No. 16, 2008 SOCIAL HOUSING ACT. 2008 (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) p r o m o te the creation of quality living e n v i r o n m e n ts for l ow i n c o me r e s i d e n t s; re-invest operational surpluses generated as a result of funding provided in terms of the social h o u s i ng p r o g r a m m e, in further a p p r o v ed projects; consult with municipalities with a view to d e v e l o p i ng social h o u s i ng stock; enter into and c o m p ly with annual p e r f o r m a n ce a g r e e m e n ts w i th m u n i c i p a l i­ ties on a p p r o v ed projects in their areas of jurisdiction; inform residents on c o n s u m er rights and obligations h o u s i n g; observe and operate within g o v e r n m e nt policy on social h o u s i n g; seek permission from the R e g u l a t o ry Authority for the sale of any properties in their o w n e r s h ip on the basis that such sale will not e n d a n g er the security of tenure of existing residents meeting the conditions of their tenancy and that the grant c o m p o n e nt of the proceeds receipts from such sale will be used to provide social h o u s i n g; seek p e r m i s s i on from the R e g u l a t o ry Authority for any m e r g er or separation of social housing institutions; seek p e r m i s s i on from a g r e e m e n ts or other prescribed d o c u m e n t a t i o n; and seek permission from the R e g u l a t o ry Authority for any prescribed matter. the R e g u l a t o ry Authority for any c h a n g es in respect of social lease to (2) Social housing institutions must at all times function in c o m p l i a n ce w i t h— (a) (b) (c) (d) (e) (f) (g) (h) in the standards respect of p e r m a n e nt the social h o u s i ng p r o g r a m me and guidelines of the provisions of this Act; the provisions of g o v e r n m e n t; the ministerial national n o r ms and residential structures; the national building regulations under the National Building R e g u l a t i o ns and Building Standards Act, 1977 (Act N o. 103 of 1977); the technical standards i m p o s ed by the National H o me B u i l d e rs Registration Council established under the H o u s i ng C o n s u m er Protection M e a s u r es Act, 1998 (Act N o. 95 of 1998); any a g r e e m e nt entered into b e t w e en the Regulatory Authority and the social housing institution; the provisions of the Rental H o u s i ng Act, 1999 (Act N o. 50 of 1999); and any other law. (3) A social h o u s i ng institution m u s t— (a) (b) on an annual basis submit its draft lease a g r e e m e nt as well as any p r e s c r i b ed d o c u m e n ts and c h a n g es thereto for approval to the Regulatory A u t h o r i t y; and ensure that the content of its lease a g r e e m e nt and p r o p o s ed c h a n g es are c o m m u n i c a t ed to residents and are strictly adhered to by all parties. M a n a g e m e nt of social h o u s i ng institutions 15. ( 1) Each accredited social h o u s i ng institution m u s t— (a) within 90 d a ys of it having attained accreditation, prepare and submit to the R e g u l a t o ry Authority for a p p r o v al a corporate g o v e r n a n ce policy which must address at least— (i) risk m a n a g e m e nt and risk strategy policies with regard to, a m o n g st other financial, property m a n a g e m e n t, things, d e v e l o p m e n t, operational, h u m an r e s o u r c e, market, institutional and c o m p l i a n ce risks; internal control and audit m o d e l s; (ii) (iii) all the r e q u i r e m e n ts of the regulations; and (iv) appoint a c o m p e t e nt m a n a g er w h o, through the assistance and support of c o m p e t e nt personnel and s y s t e m s— (i) is r e s p o n s i b le for the day to day m a n a g e m e nt of the social h o u s i ng institution and the h o u s i ng stock d e v e l o p ed through funding obtained in terms of the social housing p r o g r a m m e; any other aspect that m ay be prescribed; (b) (cid:13) Act No. 16, 2008 SOCIAL HOUSING ACT. 2008 (ii) (iii) is responsible for reporting to the R e g u l a t o ry A u t h o r i ty in terms of this Act; is the designated link b e t w e en the R e g u l a t o ry A u t h o r i ty and the social housing this Act or any regulations p r o m u l g a t ed in terms of this Act; and in respect of c o m p l i a n ce with institution (c) (iv) m u st ensure accreditation c o m p l i a n c e; and submit to the Regulatory Authority a c o py of its p e r f o r m a n ce a g r e e m e nt with the municipality. (2) T he a p p o i n t m e nt of the m a n a g er referred to in subsection (l)(b) m u st be in writing and a copy of the letter of a p p o i n t m e nt must be sent to the R e g u l a t o ry A u t h o r i ty within 21 d a ys of such a p p o i n t m e n t. (3) (a) Any vacancy in the office of a m a n a g er must, within three m o n t hs of such vacancy occurring, be filled, or all r e a s o n a b le steps must h a ve been taken to fill such vacancy, and a copy of the letter of a p p o i n t m e nt must be sent to the R e g u l a t o ry Authority in terms of subsection (2). (b) D u r i ng the period of such vacancy the social h o u s i ng institution must ensure that a c o m p e t e nt person acts as manager. (4) T he social housing institutions must consult with the tenants and k e ep t h em informed of any rules and prescriptions r e g a r d i ng the m a n a g e m e nt of the social h o u s i ng units. R e p o r t i ng by social h o u s i ng institutions 16. (1) A social housing institution m u st report to the R e g u l a t o ry A u t h o r i t y— (a) (b) at such intervals and in such detail as m ay be prescribed by regulation; and annually, within three m o n t hs of the financial year-end. (2) T he d o c u m e n t a t i on to be provided in t e r ms of subsection (1)(b) m u st include the social h o u s i ng institution's annual report and audited financial s t a t e m e n t s. (3) A social h o u s i ng institution m u st m a ke available to the R e g u l a t o ry Authority any its regulatory and the carrying out of requested of reasonably in it information investment functions. (4) T he Regulatory Authority must, subject to the P r o m o t i on of A c c e ss to Information the confidentiality of b u s i n e ss sensitive Act, 2 0 00 (Act N o. 2 of 2 0 0 0 ), maintain information passed to it under regulatory confidence. C H A P T ER 5 G E N E R AL P R O V I S I O NS J u st a d m i n i s t r a t i ve action

17. A ny decision administrative action. taken u n d er this A ct must c o m p ly with the principles of just F i n a n c i ng of social h o u s i ng 18. (1) F u n ds for the social h o u s i ng p r o g r a m me and for financing the i m p l e m e n t a t i on of the social housing p r o g r a m me and any relevant provincial h o u s i ng p r o g r a m me consistent with national housing policy m u st be m a de available f r o m— (a) m o n ey e a r m a r k ed for that p u r p o se from the D e p a r t m e n t 's annual budget; and (b) m o n ey allocated to a province for that p u r p o se in t e r ms of the annual D i v i s i on of R e v e n ue Act. (2) Criteria for— (a) (b) the e a r m a r k i ng of m o n ey in t e r ms of subsection (1)(a) m u st be d e t e r m i n ed by the Minister after consultation with M i n m e c; the allocation of m o n ey in terms of subsection (1)(b) must be d e t e r m i n ed by the Minister in consultation with M i n m e c. (cid:13) Act No. 16, 2008 SOCIAL HOUSING ACT. 2008 (3) M o n i es m a de available as c o n t e m p l a t ed in subsection (1) m ay be utilised only for the purposes set out in this Act and the annual Division of R e v e n ue Act, as the c a se m ay be. R e g u l a t i o ns 19. (1) T he Minister, by notice in the Gazette and after consultation with P a r l i a m e n t— (a) must m a ke regulations p r e s c r i b i n g— (i) (ii) any matter required to be prescribed by regulation u n d er this A c t; a c o de of conduct, the i n v e s t m e nt criteria and the qualifying criteria for social h o u s i ng institutions; (b) m ay m a ke r e g u l a t i o n s— (i) (ii) (iii) in respect of the required provisions of the a g r e e m e n ts b e t w e en R e g u l a t o ry Authority and other delivery agents; in respect of the required provisions of the a g r e e m e n ts b e t w e en R e g u l a t o ry Authority and provincial g o v e r n m e n t s; in respect of the required provisions of the a g r e e m e n ts b e t w e en the Regulatory Authority and the National H o u s i ng F i n a n ce C o r p o r a t i o n: or any other ancillary or administrative matter that is n e c e s s a ry to p r e s c r i be for the proper i m p l e m e n t a t i on or administration of this A c t. (2) T he R e g u l a t i o ns m ay p r o v i de for offences in cases of c o n t r a v e n t i on thereof or n o n - c o m p l i a n ce therewith, and for penalties not e x c e e d i ng a fine or i m p r i s o n m e nt for a period not e x c e e d i ng six m o n t hs or to both a fine and such i m p r i s o n m e n t. (iv) the the S h o rt title a nd c o m m e n c e m e nt

20. This A ct is called the Social H o u s i ng Act. 2 0 0 8, and c o m es into operation on a date d e t e r m i n ed by the President by p r o c l a m a t i on in the Gazette. (cid:13)