Government Gazette

REPUBLIC OF SOUTH AFRICA

Vol. 521 Cape Town 5 November 2008 No. 25721

THE PRESIDENCY
No. 1199 5 November 2008
It is hereby notified that the President has assented to the following Act, which is
hereby published for general information:–

No. 16 of 2008: Social Housing Act, 2008.

AIDS HELPLINE: 0800-123-22 Prevention is the cure

 ACT
To establish and p r o m o t e a s u s t a i n a b l e social h o u s i n g e n v i r o n m e n t ; to define the
functions of national, provincial a n d local g o v e r n m e n t s in r e s p e c t of social h o u s i n g ;
to p r o v i d e for the e s t a b l i s h m e n t o f t h e Social H o u s i n g R e g u l a t o r y A u t h o r i t y in
o r d e r to regulate all social h o u s i n g institutions o b t a i n i n g o r h a v i n g o b t a i n e d p u b l i c
funds; to allow for t h e u n d e r t a k i n g of a p p r o v e d p r o j e c t s b y o t h e r d e l i v e r y a g e n t s
with t h e benefit of public m o n e y ; t o give s t a t u t o r y recognition to social h o u s i n g
institutions; a n d to p r o v i d e for m a t t e r s c o n n e c t e d t h e r e w i t h .

PREAMBLE

W H E R E A S in terms of section 26(1) of the Constitution of the R e p u b l i c of South

Africa, 1996, e v e r y o n e has the right to h a v e access to adequate h o u s i n g ;

A N D W H E R E A S in t e r m s of section 26(2) of the Constitution, 1996, the State m u s t

take reasonable legislative and other m e a s u r e s , within its available r e s o u r c e s , to a c h i e v e
the progressive realisation of this right;

A N D W H E R E A S in t e r m s of section 2( 1 )(a) of the H o u s i n g Act, 1997 (Act N o . 107 of

1997), national, provincial and local spheres of g o v e r n m e n t must give priority to the
needs of the poor in respect of h o u s i n g d e v e l o p m e n t ;

A N D W H E R E A S all three spheres of g o v e r n m e n t must, in t e r m s of section 2(1)(e)(iii)

of the H o u s i n g Act, 1997, p r o m o t e the establishment, d e v e l o p m e n t and m a i n t e n a n c e of
socially and e c o n o m i c a l l y viable c o m m u n i t i e s and of safe and healthy living conditions
to ensure the elimination and prevention of slums and slum c o n d i t i o n s ;

A N D W H E R E A S all three spheres of g o v e r n m e n t must, in terms of section 2(1)(e){vii)

of the H o u s i n g Act, 1997, p r o m o t e h i g h e r density in respect of h o u s i n g d e v e l o p m e n t to
ensure the e c o n o m i c a l utilisation of land and services;

A N D W H E R E A S there is a need for social housing to be regulated;

A N D W H E R E A S there is a dire need for affordable rental housing for low to m e d i u m

income h o u s e h o l d s w h i c h cannot access rental h o u s i n g in the open m a r k e t ,
Act No. 16, 2008 SOCIAL HOUSING ACT, 2008

B E IT T H E R E F O R E E N A C T E D by the Parliament of the R e p u b l i c of South Africa,

as f o l l o w s : —

ARRANGEMENT OF SECTIONS

Sections

CHAPTER 1

DEFINITIONS AND GENERAL PRINCIPLES APPLICABLE TO SOCIAL

HOUSING

1. Definitions

2. General principles applicable to social h o u s i n g

CHAPTER 2

ROLES AND RESPONSIBILITIES

3. Roles and responsibilities of national g o v e r n m e n t

4. Roles and responsibilities of provincial g o v e r n m e n t
5. R o l e s and responsibilities of municipalities

6. R o l e s and responsibilities of other role-players

CHAPTER 3

SOCIAL HOUSING REGULATORY AUTHORITY

7. Establishment of Social H o u s i n g Regulatory Authority

8. C o m p o s i t i o n of Regulatory Authority
9. A p p o i n t m e n t of Council
10. Staff of Regulatory Authority
11. F u n c t i o n s of Regulatory A u t h o r i t y

12. P o w e r s of intervention of Regulatory Authority

CHAPTER 4

SOCIAL HOUSING INSTITUTIONS

13. Accreditation of social housing institutions

14. F u n c t i o n s of social housing institutions
15. M a n a g e m e n t of social housing institutions

16. Reporting by social h o u s i n g institutions

CHAPTER 5

GENERAL PROVISIONS

17. Just administrative action

18.F i n a n c i n g of social h o u s i n g
19.Regulations
20.Short title and c o m m e n c e m e n t
CHAPTER 1
DEFINITIONS AND GENERAL PRINCIPLES APPLICABLE TO SOCIAL

HOUSING

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 n s the screening, evaluation, provisional and final accredita­

tion by the Regulatory Authority that will, a m o n g s t other things, allow a social
h o u s i n g institution access to grants available under the social h o u s i n g p r o g r a m m e ;
" a p p r o v e d p r o j e c t " m e a n s a social h o u s i n g project in a restructuring z o n e
approved by a provincial g o v e r n m e n t 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 n g of
buildings for social housing;
"capital g r a n t " m e a n s the capital grant contemplated in the social h o u s i n g policy;
" C o u n c i l " m e a n s the Council appointed in terms of section 9;
" D e p a r t m e n t " m e a n s the National D e p a r t m e n t 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 n s the Director-General of the National D e p a r t m e n t of
Housing;
" h o u s e r u l e s " m e a n s 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 n g institution;
" H o u s i n g Act, 1 9 9 7 " m e a n s the H o u s i n g A c t 1997 (Act N o . 107 of 1997);
"institutional i n v e s t m e n t g r a n t " m e a n s o n e or m o r e of the capacity-building
grants c o n t e m p l a t e d in the social housing policy;
"institutional i n v e s t m e n t p l a n " m e a n s a training and skills d e v e l o p m e n t plan
which is a c o m p o n e n t of the social housing investment plan intended to e n s u r e that
social h o u s i n g institutions acquire the expertise, skills and operational capacity to
m a n a g e such institutions on a sustainable basis and p r o d u c e and m a n a g e a p p r o v e d
projects;
" i n v e s t m e n t criteria" m e a n s the criteria against which the Regulatory Authority
m a y m a k e investments in social housing institutions;
"lease a g r e e m e n t " m e a n s the standard lease a g r e e m e n t utilised by a social
h o u s i n g institution, and includes the h o u s e rules;
" l o w to m e d i u m i n c o m e h o u s e h o l d s " m e a n s those h o u s e h o l d s falling within the
i n c o m e categories as d e t e r m i n e d 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 n s n o n - c o m p l i a n c e with this A c t or a situation or
condition indicating substantial financial, g o v e r n a n c e or m a n a g e m e n t failure;
" M E C " m e a n s the m e m b e r of the Executive Council of a province responsible for
housing;
" M i n i s t e r " m e a n s the National Minister of H o u s i n g ;
" M i n m e c " m e a n s a standing intergovernmental body consisting of at least the
Minister and the M E C s responsible for housing.
" N a t i o n a l H o u s i n g F i n a n c e C o r p o r a t i o n " m e a n s the National H o u s i n g F i n a n c e
Corporation incorporated as a public c o m p a n y in terms of the C o m p a n i e s Act, 1973
(Act N o . 61 of 1973);
" n a t i o n a l h o u s i n g p r o g r a m m e " m e a n s a p r o g r a m m e c o n t e m p l a t e d in section
3(4)(g) of the H o u s i n g Act, 1997;
" N H B R C " m e a n s the National H o m e Builders Registration C o u n c i l , established
under the H o u s i n g C o n s u m e r Protection M e a s u r e s Act, 1998 (Act N o . 95 of 1998):
" o t h e r delivery a g e n t " m e a n s an entity other than a social h o u s i n g institution
w h i c h m a y undertake an a p p r o v e d project, but excludes a provincial g o v e r n m e n t or
a municipality;
" p a r l i a m e n t a r y c o m m i t t e e s " m e a n s the Portfolio and Select C o m m i t t e e s of
Parliament responsible for H o u s i n g .
" p r e s c r i b e " m e a n s 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 n s a provincial g o v e r n m e n t , acting through the
M E C responsible for housing;
" P u b l i c F i n a n c e M a n a g e m e n t A c t " m e a n s the Public F i n a n c e M a n a g e m e n t Act,
1999 (Act N o . 1 of 1999);
" p u b l i c f u n d s " m e a n s the institutional subsidy or any other g o v e r n m e n t subsidy
utilised for creation of housing stock or any funding provided p u r s u a n t to this Act;
"qualifying c r i t e r i a " m e a n s the criteria applied by the Regulatory Authority for
p u r p o s e s 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 n s a regulation under this Act;
" R e g u l a t o r y A u t h o r i t y " m e a n s the Social H o u s i n g R e g u l a t o r y Authority
established by section 7;
" r e s t r u c t u r i n g z o n e " m e a n s a geographic area which h a s b e e n —
Act No. 16, 2008 SOCIAL HOUSING ACT, 2008

(a) identified by the municipality, with the c o n c u r r e n c e of the provincial

g o v e r n m e n t , for purposes of social h o u s i n g ; and
(b) designated by the Minister in the Gazette for approved projects;
"social h o u s i n g " m e a n s a rental or co-operative h o u s i n g option for l o w to m e d i u m
i n c o m e h o u s e h o l d s at a level of scale and built form w h i c h requires
institutionalised m a n a g e m e n t and which is p r o v i d e d by social h o u s i n g institutions
or other delivery agents in approved projects in designated restructuring z o n e s with
the benefit of public funding as c o n t e m p l a t e d in this Act;
"social h o u s i n g i n s t i t u t i o n " m e a n s an institution accredited or provisionally
accredited under this Act which carries or intends to carry on the business of
p r o v i d i n g rental or co-operative h o u s i n g options for low to m e d i u m i n c o m e
h o u s e h o l d s (excluding i m m e d i a t e individual o w n e r s h i p and a contract as defined
under the Alienation of L a n d Act, 1981 (Act N o . 68 of 1981)), on an affordable
basis, e n s u r i n g quality and m a x i m u m benefits for residents, and m a n a g i n g its
h o u s i n g stock over the long term;
"social h o u s i n g i n v e s t m e n t p l a n " m e a n s a corporate plan and budget as required
by the Public Finance M a n a g e m e n t Act, c o m p r i s i n g 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 n g p r o g r a m m e ;
"social h o u s i n g p o l i c y " m e a n s the official social h o u s i n g policy as d e t e r m i n e d by
the Minister in terms of section 3(2)(a) of the H o u s i n g Act, 1997;
"social h o u s i n g p r o g r a m m e " m e a n s the national housing p r o g r a m m e for social
h o u s i n g , instituted by the Minister in t e r m s of section 3{4)(g) of the H o u s i n g Act,
1997;
"social h o u s i n g regulatory p l a n " m e a n s a corporate plan and budget as required
u n d e r section 52 of Public F i n a n c e M a n a g e m e n t Act; and
"this A c t " includes the regulations, any rules, directives or instructions m a d e
u n d e r it.

G e n e r a l principles a p p l i c a b l e to social h o u s i n g

2. ( 1 ) In giving priority to the needs of low and m e d i u m i n c o m e h o u s e h o l d s 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 n t
and social h o u s i n g institutions m u s t —
(a) ensure their respective h o u s i n g p r o g r a m m e s are r e s p o n s i v e to local h o u s i n g
d e m a n d s , and special priority m u s t be given to the needs of w o m e n , children,
c h i l d - h e a d e d households, persons with disabilities and the elderly;
(b) support the e c o n o m i c d e v e l o p m e n t of l o w to m e d i u m i n c o m e c o m m u n i t i e s by
p r o v i d i n g housing close to j o b s , m a r k e t s and transport and by stimulating j o b
opportunities to emerging entrepreneurs in the housing services and c o n s t r u c ­
tion industries;
(c) 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 :
(d) not discriminate against residents on any of the g r o u n d s set out in section 9 of
the Constitution, including individuals affected by H I V and A I D S ;
(e) consult with interested individuals, c o m m u n i t i e s and financial institutions in
all phases of social housing d e v e l o p m e n t ;
(f) ensure the sustainable and viable g r o w t h of affordable social h o u s i n g as an
objective of housing policy;
(g) facilitate the i n v o l v e m e n t of residents and key stakeholders through consul­
tation, information sharing, education, training and skills transfer, thereby
e m p o w e r i n g residents;
(h) ensure secure tenure for residents in social housing institutions, on the basis of
the general provisions g o v e r n i n g the relationship b e t w e e n tenants and
landlords as set out in the Rental H o u s i n g Act, 1999 (Act N o . 5 0 of 1999), and
b e t w e e n primary housing co-operatives and its m e m b e r s as set out in the
C o - o p e r a t i v e s Act, 2 0 0 5 "(Act N o . 14 of 2 0 0 5 ) ;
Act No. 16, 2008 SOCIAL HOUSING ACT, 2008

(i) promote—
(i) an e n v i r o n m e n t w h i c h is c o n d u c i v e to the realisation of the roles,
responsibilities and obligations by all role-players entering the social
housing market;
(ii) training opportunities for stakeholders and interested parties w h o wish to
enter the social h o u s i n g market;
(iii) the establishment, d e v e l o p m e n t and m a i n t e n a n c e of socially a n d
e c o n o m i c a l l y viable c o m m u n i t i e s to ensure the elimination and p r e v e n ­
tion of s l u m s and slum conditions;
(iv) social, physical and e c o n o m i c integration of h o u s i n g d e v e l o p m e n t into
existing urban and inner-city areas through the creation of quality living
environments;
(v) m e d i u m to higher density in respect of social housing d e v e l o p m e n t to
ensure the e c o n o m i c a l utilisation of land and services;
(vi) the provision of social, c o m m u n i t y and recreational facilities close to
social h o u s i n g d e v e l o p m e n t ;
(vii) the expression of cultural identity and diversity in social h o u s i n g
development;
(viii) the suitable location of social housing stock in respect of e m p l o y m e n t
opportunities:
(ix) the c o n v e r s i o n or u p g r a d i n g of suitable residential and non-residential
buildings for social housing use;
(x) incentives to social h o u s i n g institutions and other delivery agents to enter
the social h o u s i n g market;
(xi) an u n d e r s t a n d i n g and awareness of social h o u s i n g p r o c e s s e s ;
(xii) transparency, accountability and efficiency in the administration and
m a n a g e m e n t of social housing stock;
(xiii) best practices and m i n i m u m n o r m s and standards in relation to the
delivery and m a n a g e m e n t of social h o u s i n g ;
(xiv) the provision of institutional capacity to support social h o u s i n g
initiatives;
(xv) the creation of sustainable, viable and i n d e p e n d e n t h o u s i n g institutions
responsible for providing, developing, holding or m a n a g i n g social
h o u s i n g stock; and
(xvi) the use of public funds in a m a n n e r that stimulates or facilitates private
sector investment and participation in the social h o u s i n g sector.
(2) (a) T h e Minister may, by notice in the Gazette, prescribe any principle for social
h o u s i n g d e v e l o p m e n t in addition to, and consistent with, the principles set out in
subsection (1).
(b) T h e M i n i s t e r must, before prescribing any principle c o n t e m p l a t e d in p a r a g r a p h
(a)-
(i) c a u s e a draft of such principle to be published by notice in the Gazette and
invite the public to c o m m e n t within 3 0 days after such publication;
(ii) after the period c o n t e m p l a t e d in s u b p a r a g r a p h (i) h a s lapsed, submit a list of
notices published in t e r m s of subparagraph (i) to P a r l i a m e n t for approval.
(c) T h e list of notices c o n t e m p l a t e d in p a r a g r a p h (b)(i) must in respect of each notice
state the n u m b e r and title of the notice and the n u m b e r and date of the Gazette in w h i c h
it w a s published.
(d) T h e M i n i s t e r m a y only prescribe a principle c o n t e m p l a t e d in paragraph (b) if all
c o m m e n t s h a v e been considered and Parliament has a p p r o v e d the prescribing of the
principle.
Act No. 16, 2008 SOCIAL HOUSING ACT, 2008

CHAPTER 2

ROLES AND RESPONSIBILITIES

Roles a n d responsibilities of national g o v e r n m e n t

3. (1) National g o v e r n m e n t , acting through the Minister, m u s t —

(a) create and uphold an enabling e n v i r o n m e n t for social housing, by providing
the legislative, regulatory, financial and policy f r a m e w o r k for the delivery of
social housing;
(b) ensure c o m p l i a n c e with its constitutional responsibilities;
(c) address issues that affect the g r o w t h , d e v e l o p m e n t or sustainability of the
social housing sector;
(d) establish with provinces and municipalities institutional capacity to support
social housing initiatives;
(e) institute and fund the social h o u s i n g p r o g r a m m e as a national h o u s i n g
p r o g r a m m e to p r o m o t e the d e v e l o p m e n t and supply of social h o u s i n g stock
for low to m e d i u m i n c o m e p e r s o n s ;
(f) designate restructuring zones submitted by provinces and identified b y
municipalities and specifically p r o v i d e d for in a m u n i c i p a l i t y ' s integrated
d e v e l o p m e n t 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 a l S y s t e m s Act, 2 0 0 0 (Act N o . 32 of 2 0 0 0 ) , and may, w h e r e
appropriate, after d u e notice in the Gazette, w i t h d r a w such d e s i g n a t i o n :
(g) establish capital and institutional investment grants;
(h) review annually and a p p r o v e the social h o u s i n g i n v e s t m e n t plan and the social
housing regulatory plan;
(i) allocate funds from the D e p a r t m e n t ' s b u d g e t for the operational costs and
c o m m i t m e n t s of the Regulatory Authority in a c c o r d a n c e with the a p p r o v e d
social housing investment plan and the social h o u s i n g regulatory plan,
respectively;
(j) d e t e r m i n e n o r m s and standards to be adhered to by p r o v i n c e s and municipali­
ties; and
(k) monitor the Regulatory Authority.
(2) T h e costs and expenses c o n n e c t e d with the i m p l e m e n t a t i o n of this Act must be
defrayed from m o n e y appropriated by Parliament to the D e p a r t m e n t for that p u r p o s e .

R o l e s a n d responsibilities of provincial g o v e r n m e n t

4. (1) Every provincial g o v e r n m e n t , through its M E C , m u s t —

(a) ensure fairness, equity and c o m p l i a n c e with national and provincial social
housing n o r m s and standards;
(b) ensure the protection of c o n s u m e r s by creating a w a r e n e s s of c o n s u m e r s '
rights and obligations;
(c) facilitate sustainability and g r o w t h in the social h o u s i n g sector;
(d) mediate in cases of conflict b e t w e e n a social h o u s i n g institution or other
delivery agent and a municipality, if required;
(e) submit p r o p o s e d restructuring z o n e s to the M i n i s t e r ;
(f) monitor social housing projects to ascertain that relevant prescripts, n o r m s
and standards are being c o m p l i e d with;
(g) a p p r o v e , allocate and administer capital grants, in the m a n n e r c o n t e m p l a t e d in
the social housing investment plan, in a p p r o v e d projects;
(h) ensure that the process c o n t e m p l a t e d in paragraph (g) is c o n d u c t e d efficiently;
(i) administer the social housing p r o g r a m m e , and m a y for this p u r p o s e
approve—
(i) any projects in respect thereof; and
(ii) the financing thereof out of m o n e y paid into the accredited bank account
of the province as c o n t e m p l a t e d in section 18(3): and
(j) d e v e l o p the capacity of municipalities to fulfil the roles and responsibilities
c o n t e m p l a t e d in section 5.
(2) A provincial g o v e r n m e n t may not interfere with the g o v e r n a n c e or m a n a g e m e n t of
social housing institutions.
(3) Subject to section 11(3)(k), t h e Regulatory Authority m a y not interfere with the
m o n i t o r i n g of social housing projects.
Act No. 16, 2008 SOCIAL HOUSING ACT, 2008

Roles a n d responsibilities of m u n i c i p a l i t i e s

5. A municipality must, where there is a d e m a n d for social h o u s i n g within its

municipal area, as part of the m u n i c i p a l i t y ' s process of integrated d e v e l o p m e n t
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 —
(a) to facilitate social housing delivery in its area of jurisdiction;
(b) to e n c o u r a g e the d e v e l o p m e n t of new social h o u s i n g stock and the u p g r a d i n g
of existing stock or the conversion of existing non-residential stock;
(c) to p r o v i d e a c c e s s —
(i) to land and buildings for social housing d e v e l o p m e n t in d e s i g n a t e d
restructuring zones;
(ii) for social housing institutions to acquire municipal rental stock;
(iii) to municipal infrastructure and services for a p p r o v e d projects in
designated restructuring zones; and
(d) to the extent permitted under the Local G o v e r n m e n t : Municipal F i n a n c e
M a n a g e m e n t Act, 2 0 0 3 (Act N o . 5 6 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 a l S y s t e m s Act, 2 0 0 0 (Act N o . 32 of 2 0 0 0 ) , t o —
(i) initiate and motivate the identification of restructuring z o n e s ; and
(ii) enter into p e r f o r m a n c e a g r e e m e n t s with social h o u s i n g institutions.

R o l e s a n d responsibilities of o t h e r role-players

6. (1) Subject to such directives as the Minister m a y issue by notice in the Gazette, t h e
National H o u s i n g F i n a n c e Corporation must, in respect of social h o u s i n g —
(a) provide access to loan funding;
(b) m a k e available to the Regulatory Authority w h e n requested thereto any
financial information to enable it to assess the institutional health and financial
sustainability of social housing institutions;
(c) facilitate or, where possible, provide access to g u a r a n t e e s for loan funding
from financial institutions;
(d) explore and support m e c h a n i s m s a i m e d at facilitating public funding for
social housing; and
(e) conclude an a g r e e m e n t with the R e g u l a t o r y Authority a i m e d at a v o i d i n g the
duplication of functions and overregulation of social h o u s i n g institutions.
(2) Other delivery agents may undertake approved projects in d e s i g n a t e d restructur­
ing zones with the benefit of public funding to the extent d e t e r m i n e d in the social
housing p r o g r a m m e pursuant to a g r e e m e n t s c o n c l u d e d with the Regulatory Authority as
c o n t e m p l a t e d in sections l l ( 3 ) ( d ) and 19(1)(b)(i).

CHAPTER 3

SOCIAL HOUSING REGULATORY AUTHORITY

E s t a b l i s h m e n t of Social H o u s i n g R e g u l a t o r y A u t h o r i t y

7. (1) T h e r e is hereby established a juristic person to be k n o w n as the Social H o u s i n g

Regulatory Authority.
(2) T h e Public F i n a n c e M a n a g e m e n t Act applies to the Social H o u s i n g R e g u l a t o r y
Authority.
(3) T h e Social H o u s i n g Regulatory Authority is a c c o u n t a b l e to the M i n i s t e r and
Parliament.

C o m p o s i t i o n of R e g u l a t o r y A u t h o r i t y

8. (1) T h e Regulatory Authority consists of a—

(a) Council, appointed in a c c o r d a n c e with section 9;
Act No. 16, 2008 SOCIAL HOUSING ACT, 2008

(b) Chief E x e c u t i v e Officer, appointed by the C o u n c i l with the a p p r o v a l of the

Minister, responsible for the day to day m a n a g e m e n t of the affairs of the
R e g u l a t o r y Authority;
(c) C o r p o r a t e Services Manager, appointed by the Chief E x e c u t i v e Officer,
responsible for financial m a n a g e m e n t , including corporate m a n a g e m e n t
services.
(2) T h e Chief E x e c u t i v e Officer and the C o r p o r a t e Services M a n a g e r serve as
executive m e m b e r s of the Council.
(3) T h e Regulatory Authority acts through the C o u n c i l and all acts of the Council are
regarded as acts of the Regulatory Authority.

A p p o i n t m e n t of C o u n c i l

9. (1) T h e Council consists of at least seven and not m o r e than 12 fit and proper
persons w h o have k n o w l e d g e , experience or qualifications in the field of social and
rental housing or other applicable c o m p e t e n c i e s for the proper g o v e r n a n c e of the
Regulatory Authority.
(2) (a) T h e Minister must, by notice in the Gazette as well as in the national n e w s
media, including at least two newspapers circulating t h r o u g h o u t the Republic, call for
the nomination of persons w h o comply with the criteria referred to in subsection (1).
(b) T h e Minister must establish a selection c o m m i t t e e consisting of not m o r e than
seven m e m b e r s , t w o of w h o m must be the chairpersons of the p a r l i a m e n t a r y c o m m i t t e e s
or their delegates, to advise the Minister on the a p p o i n t m e n t s .
(3) T h e m e m b e r s contemplated in subsection (1) m u s t be appointed by the Minister
and serve in a non-executive capacity.
(4) A m e m b e r of the C o u n c i l is appointed for the period d e t e r m i n e d by the Minister
but not e x c e e d i n g three years at a time, and may, subject to subsection (2), be
reappointed on the termination of that period.
(5) T h e Minister m a y at any time terminate the m e m b e r s h i p of a m e m b e r of the
Council for reasons which are just and fair.
(6) A m e m b e r of the Council other than a person w h o is in the full-time e m p l o y m e n t
of the State, is paid an a l l o w a n c e d e t e r m i n e d by the Minister with the approval of the
Minister of F i n a n c e .
(7) A m e m b e r of the Council ceases to be a m e m b e r if—
(a) he or she resigns;
(b) his or her estate is sequestrated;
(c) he or she b e c o m e s of unsound m i n d ;
(d) he or she is convicted of an offence and sentenced to i m p r i s o n m e n t without
the option of a fine;
(e) he or she b e c o m e s an e m p l o y e e or director of a social h o u s i n g institution, a
m e m b e r 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
(f) he or she has failed to attend three c o n s e c u t i v e m e e t i n g s , without an a p o l o g y
or justified excuse.
(8) T h e Council must adopt standing instructions to ensure c o m p l i a n c e with this Act,
the Public Finance M a n a g e m e n t Act and any other legislation applicable to the
Regulatory Authority.
(9) T h e Council may appoint such c o m m i t t e e s as it m a y consider appropriate for
fulfilling its responsibilities under the A c t and to e n s u r e proper g o v e r n a n c e of the
Regulatory Authority and may delegate such p o w e r or assign such functions as it m a y
consider appropriate, including any p o w e r or function under section 12. to such
committee.
(10) T h e Council must establish the necessary matters and p r o c e d u r e s relating to
m e e t i n g s of the Council.
(11) T h e q u o r u m 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 r y A u t h o r i t y

10. (1) T h e staff of the R e g u l a t o r y Authority consists of—

(a) senior m a n a g e r s responsible for the n e c e s s a r y activities of t h e R e g u l a t o r y
A u t h o r i t y 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 r y A u t h o r i t y ; and
(b) such other persons as are necessary to perform the functions incidental to the
functions of the R e g u l a t o r y Authority.
(2) T h e staff of the R e g u l a t o r y A u t h o r i t y m u s t be a p p o i n t e d by the C h i e f E x e c u t i v e
Officer on the salary, terms and other conditions d e t e r m i n e d by the Chief E x e c u t i v e
Officer in consultation with the C o u n c i l .

Functions of Regulatory Authority

11. (1) T h e Regulatory Authority m u s t , subject to t h e p r o v i s i o n s of this A c t —

(a) p r o m o t e the d e v e l o p m e n t and a w a r e n e s s of social h o u s i n g ;
(b) provide advice and support to the D e p a r t m e n t in its d e v e l o p m e n t of policy for
the social h o u s i n g sector and facilitate national social h o u s i n g p r o g r a m m e s ;
(c) advise the Minister on d e v e l o p m e n t s in the social h o u s i n g sector;
(d) p r o m o t e an enabling e n v i r o n m e n t for the g r o w t h and d e v e l o p m e n t of the
social h o u s i n g sector;
(e) provide best practice information and research o n the status of the social
h o u s i n g sector;
(f) support provincial g o v e r n m e n t s with the approval of project applications by
social h o u s i n g institutions;
(g) assist, w h e r e requested, in the p r o c e s s of the d e s i g n a t i o n of restructuring
zones;
(h) enter into a g r e e m e n t s with provincial g o v e r n m e n t s and the National H o u s i n g
F i n a n c e Corporation to e n s u r e the c o - o r d i n a t e d exercise of p o w e r s ; and
(i) perform any other function or exercise any other p o w e r that the M i n i s t e r m a y
prescribe.
(2) T h e Regulatory A u t h o r i t y m u s t —
(a) annually, in a c c o r d a n c e with the Public F i n a n c e M a n a g e m e n t Act. p r e p a r e
and submit the social h o u s i n g i n v e s t m e n t plan and the social h o u s i n g
regulatory plan to the Minister;
(b) annually, in a c c o r d a n c e with the Public F i n a n c e M a n a g e m e n t Act, p r e p a r e
and submit annual financial statements and an annual report to the M i n i s t e r on
its p e r f o r m a n c e in respect of the social h o u s i n g i n v e s t m e n t plan and t h e social
h o u s i n g regulatory plan, respectively, d u r i n g the p r e c e d i n g year; and
(c) c o m p l y with the provisions of the Public F i n a n c e M a n a g e m e n t Act and
regulations applicable to public entities.
(3) T h e R e g u l a t o r y Authority must, subject to the p r o v i s i o n s of this A c t —
(a) p r o v i d e financial assistance to social h o u s i n g institutions t h r o u g h grants to
service p r o v i d e r s accredited by the R e g u l a t o r y A u t h o r i t y to e n a b l e t h e m to
d e v e l o p institutional capacity, gain accreditation as social h o u s i n g institu­
tions, and to submit viable project applications;
(b) accredit institutions m e e t i n g accreditation criteria as social h o u s i n g institu­
tions:
(c) maintain a register of social housing institutions with the prescribed d e t a i l s —
(i) which is open for inspection b y the public at the p r e m i s e s of the
Regulatory Authority during n o r m a l b u s i n e s s h o u r s against p a y m e n t of
the prescribed fee; and
(ii) annually provide a copy thereof to the National Treasury and the
Department;
(d) enter into suitable a g r e e m e n t s with social h o u s i n g 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 n t in social
housing;
Act No. 16, 2008 SOCIAL HOUSING ACT, 2008

(e) c o n d u c t c o m p l i a n c e m o n i t o r i n g through regular i n s p e c t i o n s and enforce

c o m p l i a n c e , w h e r e necessary through the exercise of its p o w e r s set out in
section 12;
(f) intervene in the affairs of a social h o u s i n g 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 o n as
c o n t e m p l a t e d in section 12;
(g) a p p r o v e , administer and d i s b u r s e institutional i n v e s t m e n t grants and capital
grants and obtain applications for such grants through e n g a g e m e n t with
provincial g o v e r n m e n t s and municipalities;
(h) consider applications from social h o u s i n g institutions to d i s p o s e of properties
d e v e l o p e d , refurbished or p u r c h a s e d with the assistance of public funding and
a p p r o v e or refuse applications o n the basis of c o m p l i a n c e with the investment
criteria forming part of the regulations;
(i) consider applications from social h o u s i n g institutions to relinquish their
accreditation and be r e m o v e d from the public register of social h o u s i n g
institutions and a p p r o v e or refuse applications in a c c o r d a n c e with t h e
p r e s c r i b e d regulations and rules;
(j) c o n s i d e r applications from social h o u s i n g institutions to a m e n d their lease
a g r e e m e n t s and a p p r o v e or refuse such applications o n the basis of the
regulations;
(k) instruct a social h o u s i n g institution not to accept a social h o u s i n g project
allocated to it if—
(i) the social housing institution will not be able to c o m p l e t e the project
successfully; or
(ii) it will u n d e r m i n e the social h o u s i n g institution's viability: and
(l) d o all things necessary to ensure good g o v e r n a n c e and sustainability of social
h o u s i n g institutions.
(4) T h e R e g u l a t o r y A u t h o r i t y may, subject to the p r o v i s i o n s of this Act and by notice
in the Gazette—
(a) m a k e rules, not in conflict with the r e g u l a t i o n s —
(i) g i v i n g 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;
(iii) further regulating the c o n d u c t of social h o u s i n g institutions;
(iv) prescribing p r o c e d u r e s for c o m p l i a n c e m o n i t o r i n g and the e n f o r c e m e n t
of c o m p l i a n c e , including intervention in the affairs of social h o u s i n g
institutions; or
(v) specifically authorised or required by regulation;
(b) prescribe, after consultation with the Minister, any other rules for the p r o p e r
functioning of the Regulatory A u t h o r i t y ; and
(c) issue such directives, instructions and circulars as m a y be n e c e s s a r y for the
exercise of its functions u n d e r this A c t .
(5) T h e R e g u l a t o r y Authority may, subject to the p r o v i s i o n s of this A c t —
(a) establish such c o m m i t t e e s as m a y be necessary to meet its objectives;
(b) delegate its p o w e r s to c o m m i t t e e s and officers, on such t e r m s and c o n d i t i o n s
as it m a y d e e m necessary, but m a y not divest itself of s u c h p o w e r s ;
(c) c o n c l u d e such contracts and institute such p r o c e e d i n g s as m a y be necessary
for the exercise of its p o w e r s and fulfilment of its functions u n d e r this A c t .

P o w e r s of i n t e r v e n t i o n of R e g u l a t o r y A u t h o r i t y

12. (1) If the R e g u l a t o r y Authority is satisfied on r e a s o n a b l e g r o u n d s that there has

been m a l a d m i n i s t r a t i o n by a social h o u s i n g institution, the R e g u l a t o r y A u t h o r i t y m u s t —
(a) p r e p a r e a report to that effect;
(b) p r o v i d e the social h o u s i n g institution with a written notice of the R e g u l a t o r y
A u t h o r i t y ' s intention to intervene, and m u s t specify in that notice what
r e m e d i a l action must be taken by the social h o u s i n g institution;
(c) instruct the social housing institution to take the r e m e d i a l 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 h e R e g u l a t o r y Authority m a y m a k e available funds through the social h o u s i n g

investment plan to assist in meeting the costs of any such support.
(3) S h o u l d the social housing institution continue to resist the intervention of the
R e g u l a t o r y A u t h o r i t y or if there is n o i m p r o v e m e n t in p e r f o r m a n c e in respect of the
matters w h i c h necessitated the intervention, the Regulatory A u t h o r i t y m a y a u t h o r i s e a
forensic investigation into the institution's affairs and appoint a public a c c o u n t a n t 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 .
8 0 of 1991), to u n d e r t a k e such investigation.
(4) T h e R e g u l a t o r y Authority may, after consultation with the p r o v i d e r s of any d e b t
finance to the institution and upon notice to affected parties, including the providers of
finance to the institution—
(a) apply to the H i g h Court for the s u s p e n s i o n of the chairperson, m e m b e r s of the
board, m a n a g e r or e x e c u t i v e or senior staff of the institution for the period of
the investigation; and
(b) appoint suitably qualified p e r s o n s to m a n a g e the institution's affairs in their
place p e n d i n g the findings of the forensic audit report.
(5 T h e forensic audit report m u s t m a k e a finding on w h e t h e r the social h o u s i n g
institution has been m a n a g e d in a m a n n e r 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 e s not m a k e 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 n s are automatically re-instated as from the date of such report and the
R e g u l a t o r y A u t h o r i t y m u s t r e v i e w its p r e v i o u s instructions to the institution.
(7) If the forensic audit finds m a l a d m i n i s t r a t i o n , the R e g u l a t o r y A u t h o r i t y m u s t
request the m e m b e r s of the social h o u s i n g institution to replace any s u s p e n d e d p e r s o n or
p e r s o n associated with the m a l a d m i n i s t r a t i o n with a p e r s o n a c c e p t a b l e to or
r e c o m m e n d e d by the Regulatory Authority.
(8) If the R e g u l a t o r y Authority, based o n the forensic audit report, d o e s not believe
that the institution is sustainable in its current form, or if the social h o u s i n g institution
refuses to take the steps required u n d e r subsection (8), the R e g u l a t o r y A u t h o r i t y 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 g h
Court for an order placing the institution u n d e r the administration of the R e g u l a t o r y
Authority.
(9) If the H i g h Court grants an order placing the institution u n d e r the a d m i n i s t r a t i o n
of the Regulatory Authority, the Regulatory A u t h o r i t y —
(a) m u s t m a n a g e the institution effectively and efficiently;
(b) may r e m o v e the accreditation of the social h o u s i n g institution;
(c) m a y transfer the housing stock or rights of the social h o u s i n g institution to
another social housing institution prepared to accept such transfer on such
t e r m s and conditions as m a y be agreed at the t i m e ; or
(d) w h e r e appropriate, institute legal p r o c e e d i n g s for the w i n d i n g up of the
institution.
(10) W h e r e the Regulatory Authority succeeds in restoring the viability of the
institution or any part thereof, it m a y apply to H i g h Court for—
(a) the administration order to be lifted; and
(b) for an order authorising the R e g u l a t o r y Authority to appoint suitable p e r s o n s
as directors and office bearers of the institution.
(11) A social h o u s i n g institution or any person directly affected by a decision of the
R e g u l a t o r y Authority, m a y e x e r c i s e —
(a) any rights to internal review to the Regulatory Authority in a c c o r d a n c e w i t h
the prescribed p r o c e d u r e s ;
(b) any other rights according to law.
(12) A social h o u s i n g institution for p u r p o s e s of any inspection u n d e r this A c t 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 r y A u t h o r i t y —
(a) access to its p r e m i s e s or any property d e v e l o p e d , constructed or m a n a g e d b y
it;
Act No. 16, 2008 SOCIAL HOUSING ACT, 2008

(b)access to its records and d o c u m e n t a t i o n ; and

(c)the seizure and p h o t o c o p y i n g of such records and d o c u m e n t a t i o n as may be
required for investigation.
(13) This section, in a c c o r d a n c e with the provisions of section 6(2), d o e s not apply to
other delivery agents.

CHAPTER 4

SOCIAL HOUSING INSTITUTIONS

A c c r e d i t a t i o n of social h o u s i n g institutions

13. (1) A s from the c o m m e n c e m e n t of this Act. all institutions h a v i n g u n d e r t a k e n

h o u s i n g d e v e l o p m e n t s with the benefit of an institutional subsidy are provisionally
accredited social h o u s i n g institutions for p u r p o s e s of this Act, subject to the provisions
of this Act and the p o w e r s of the Regulatory Authority.
(2) Provisional accreditation pursuant to subsection (1) lapses o n the date prescribed
by the Minister w h i c h date may not e x c e e d 12 m o n t h s after the c o m m e n c e m e n t of this
Act.
(3) A n institution wishing to carry on the b u s i n e s s of social h o u s i n g must in the
prescribed format apply to the Regulatory Authority for accreditation.
(4) A municipality w i s h i n g to participate in social h o u s i n g m a y establish an
institution, which must be accredited.
(5) Subject to any conditions prescribed by the Minister, a social h o u s i n g institution
must be a c o m p a n y registered under the C o m p a n i e s 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 e s Act, 2 0 0 5 (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 l d a social housing institution c o m p l y with all the qualifying criteria, it shall
be accredited as a social h o u s i n g institution in t e r m s of this Act a n d its details must be
entered in a register kept for this purpose by the Regulatory Authority.
(7) S h o u l d a social housing institution at any stage fail to c o m p l y with the qualifying
criteria, the Regulatory Authority m a y —
(a) exercise the p o w e r s referred to in section 12; and
(b) in its discretion and as d e t e r m i n e d in the regulations and upon notice to
affected p a r t i e s —
(i) recover any monies granted to the social h o u s i n g institution in t e r m s of
the social housing p r o g r a m m e ;
(ii) withhold any further grants;
(iii) stipulate conditions relating to reforms to b e u n d e r t a k e n by the social
housing institution or i m p r o v e m e n t s to be effected by it for the p a y m e n t
of any grants; and
(iv) w h e r e necessary, intervene in a c c o r d a n c e with the p r o v i s i o n s of section
12.
(8) A social h o u s i n g institution m u s t c o m p l y with all the p r o v i s i o n s of the Act in t e r m s
of which it w a s established and any other applicable law, and any contravention of the
said p r o v i s i o n s m a y result in its accreditation being w i t h d r a w n by the R e g u l a t o r y
Authority.
(9) T h e lapsing of provisional accreditation, or the w i t h d r a w a l of accreditation in
t e r m s of this Act, d o e s not preclude the Regulatory Authority from exercising any of its
p o w e r s u n d e r this Act.

F u n c t i o n s o f social h o u s i n g institutions

14. (1) Social h o u s i n g institutions m u s t —

(a) c o m p l y on an ongoing basis with the criteria which qualify t h e m for
accreditation;
(b) acquire, d e v e l o p , m a n a g e , or both d e v e l o p and m a n a g e , a p p r o v e d projects
primarily for low i n c o m e residents with the j o i n t support of local authorities;
Act No. 16, 2008 SOCIAL HOUSING ACT. 2008

(c) p r o m o t e the creation of quality living e n v i r o n m e n t s for l o w i n c o m e r e s i d e n t s ;

(d) re-invest operational surpluses generated as a result of funding provided in
terms of the social h o u s i n g p r o g r a m m e , in further a p p r o v e d projects;
(e) consult with municipalities with a view to d e v e l o p i n g social h o u s i n g stock;
(f) enter into and c o m p l y with annual p e r f o r m a n c e a g r e e m e n t s w i t h m u n i c i p a l i ­
ties on a p p r o v e d projects in their areas of jurisdiction;
(g) inform residents on c o n s u m e r rights and obligations in respect of social
housing;
(h) observe and operate within g o v e r n m e n t policy on social h o u s i n g ;
(i) seek permission from the R e g u l a t o r y Authority for the sale of any properties
in their o w n e r s h i p on the basis that such sale will not e n d a n g e r the security of
tenure of existing residents meeting the conditions of their tenancy and that
the grant c o m p o n e n t of the proceeds receipts from such sale will be used to
provide social h o u s i n g ;
(j) seek p e r m i s s i o n from the R e g u l a t o r y Authority for any m e r g e r or separation
of social housing institutions;
(k) seek p e r m i s s i o n from the R e g u l a t o r y Authority for any c h a n g e s to lease
a g r e e m e n t s or other prescribed d o c u m e n t a t i o n ; and
(l) seek permission from the R e g u l a t o r y Authority for any prescribed matter.
(2) Social housing institutions must at all times function in c o m p l i a n c e w i t h —
(a) the provisions of this Act;
(b) the provisions of the social h o u s i n g p r o g r a m m e and guidelines of the
government;
(c) the ministerial national n o r m s and standards in respect of p e r m a n e n t
residential structures;
(d) the national building regulations under the National Building R e g u l a t i o n s and
Building Standards Act, 1977 (Act N o . 103 of 1977);
(e) the technical standards i m p o s e d by the National H o m e B u i l d e r s Registration
Council established under the H o u s i n g C o n s u m e r Protection M e a s u r e s Act,
1998 (Act N o . 95 of 1998);
(f) any a g r e e m e n t entered into b e t w e e n the Regulatory Authority and the social
housing institution;
(g) the provisions of the Rental H o u s i n g Act, 1999 (Act N o . 5 0 of 1999); and
(h) any other law.
(3) A social h o u s i n g institution m u s t —
(a) on an annual basis submit its draft lease a g r e e m e n t as well as any p r e s c r i b e d
d o c u m e n t s and c h a n g e s thereto for approval to the Regulatory A u t h o r i t y ; and
(b) ensure that the content of its lease a g r e e m e n t and p r o p o s e d c h a n g e s are
c o m m u n i c a t e d to residents and are strictly adhered to by all parties.

M a n a g e m e n t of social h o u s i n g institutions

15. ( 1 ) Each accredited social h o u s i n g institution m u s t —

(a) within 9 0 d a y s of it having attained accreditation, prepare and submit to the
R e g u l a t o r y Authority for a p p r o v a l a corporate g o v e r n a n c e policy which must
address at least—
(i) risk m a n a g e m e n t and risk strategy policies with regard to, a m o n g s t other
things, d e v e l o p m e n t , operational, financial, property m a n a g e m e n t ,
h u m a n r e s o u r c e , market, institutional and c o m p l i a n c e risks;
(ii) internal control and audit m o d e l s ;
(iii) all the r e q u i r e m e n t s of the regulations; and
(iv) any other aspect that m a y be prescribed;
(b) appoint a c o m p e t e n t m a n a g e r w h o , through the assistance and support of
c o m p e t e n t personnel and s y s t e m s —
(i) is r e s p o n s i b l e for the day to day m a n a g e m e n t of the social h o u s i n g
institution and the h o u s i n g stock d e v e l o p e d through funding obtained in
terms of the social housing p r o g r a m m e ;
Act No. 16, 2008 SOCIAL HOUSING ACT. 2008

(ii) is responsible for reporting to the R e g u l a t o r y A u t h o r i t y in terms of this

Act;
(iii) is the designated link b e t w e e n the R e g u l a t o r y A u t h o r i t y and the social
housing institution in respect of c o m p l i a n c e with this Act or any
regulations p r o m u l g a t e d in terms of this Act; and
(iv) m u s t ensure accreditation c o m p l i a n c e ; and
(c) submit to the Regulatory Authority a c o p y of its p e r f o r m a n c e a g r e e m e n t with
the municipality.
(2) T h e a p p o i n t m e n t of the m a n a g e r referred to in subsection (l)(b) m u s t be in writing
and a copy of the letter of a p p o i n t m e n t must be sent to the R e g u l a t o r y A u t h o r i t y within
21 d a y s 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 e r must, within three m o n t h s of such
vacancy occurring, be filled, or all r e a s o n a b l e steps must h a v e been taken to fill such
vacancy, and a copy of the letter of a p p o i n t m e n t must be sent to the R e g u l a t o r y
Authority in terms of subsection (2).
(b) D u r i n g the period of such vacancy the social h o u s i n g institution must ensure that
a c o m p e t e n t person acts as manager.
(4) T h e social housing institutions must consult with the tenants and k e e p t h e m
informed of any rules and prescriptions r e g a r d i n g the m a n a g e m e n t of the social h o u s i n g
units.

R e p o r t i n g b y social h o u s i n g institutions

16. (1) A social housing institution m u s t report to the R e g u l a t o r y A u t h o r i t y —

(a) at such intervals and in such detail as m a y be prescribed by regulation; and
(b) annually, within three m o n t h s of the financial year-end.
(2) T h e d o c u m e n t a t i o n to be provided in t e r m s of subsection (1)(b) m u s t include the
social h o u s i n g 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 n g institution m u s t m a k e available to the R e g u l a t o r y Authority any
information reasonably requested of it in the carrying out of its regulatory and
investment functions.
(4) T h e Regulatory Authority must, subject to the P r o m o t i o n of A c c e s s to Information
Act, 2 0 0 0 (Act N o . 2 of 2 0 0 0 ) , maintain the confidentiality of b u s i n e s s sensitive
information passed to it under regulatory confidence.

CHAPTER 5

GENERAL PROVISIONS

J u s t a d m i n i s t r a t i v e action

17. A n y decision taken u n d e r this A c t must c o m p l y with the principles of just

administrative action.

F i n a n c i n g of social h o u s i n g

18. (1) F u n d s for the social h o u s i n g p r o g r a m m e and for financing the i m p l e m e n t a t i o n

of the social housing p r o g r a m m e and any relevant provincial h o u s i n g p r o g r a m m e
consistent with national housing policy m u s t be m a d e available f r o m —
(a) m o n e y e a r m a r k e d for that p u r p o s e from the D e p a r t m e n t ' s annual budget; and
(b) m o n e y allocated to a province for that p u r p o s e in t e r m s of the annual D i v i s i o n
of R e v e n u e Act.
(2) Criteria for—
(a) the e a r m a r k i n g of m o n e y in t e r m s of subsection (1)(a) m u s t be d e t e r m i n e d by
the Minister after consultation with M i n m e c ;
(b) the allocation of m o n e y in terms of subsection (1)(b) must be d e t e r m i n e d by
the Minister in consultation with M i n m e c .
Act No. 16, 2008 SOCIAL HOUSING ACT. 2008

(3) M o n i e s m a d e available as c o n t e m p l a t e d in subsection (1) m a y be utilised only for

the purposes set out in this Act and the annual Division of R e v e n u e Act, as the c a s e m a y
be.

Regulations

19. (1) T h e Minister, by notice in the Gazette and after consultation with P a r l i a m e n t —
(a) must m a k e regulations p r e s c r i b i n g —
(i) any matter required to be prescribed by regulation u n d e r this A c t ;
(ii) a c o d e of conduct, the i n v e s t m e n t criteria and the qualifying criteria for
social h o u s i n g institutions;
(b) m a y m a k e r e g u l a t i o n s —
(i) in respect of the required provisions of the a g r e e m e n t s b e t w e e n the
R e g u l a t o r y Authority and other delivery agents;
(ii) in respect of the required provisions of the a g r e e m e n t s b e t w e e n the
R e g u l a t o r y Authority and provincial g o v e r n m e n t s ;
(iii) in respect of the required provisions of the a g r e e m e n t s b e t w e e n the
Regulatory Authority and the National H o u s i n g F i n a n c e C o r p o r a t i o n : or
(iv) any other ancillary or administrative matter that is n e c e s s a r y to p r e s c r i b e
for the proper i m p l e m e n t a t i o n or administration of this A c t .
(2) T h e R e g u l a t i o n s m a y p r o v i d e for offences in cases of c o n t r a v e n t i o n thereof or
n o n - c o m p l i a n c e therewith, and for penalties not e x c e e d i n g a fine or i m p r i s o n m e n t for a
period not e x c e e d i n g six m o n t h s or to both a fine and such i m p r i s o n m e n t .

S h o r t title a n d c o m m e n c e m e n t

20. This A c t is called the Social H o u s i n g Act. 2 0 0 8 , and c o m e s into operation on a

date d e t e r m i n e d by the President by p r o c l a m a t i o n in the Gazette.