REPUBLIC OF SOUTH AFRICA
SOCIAL HOUSING BILL
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(As introduced in the National Assembly (proposed section 75); explanatory summary of Bill published in Government Gazette No. 30022 of 6 July 2007) (The English text is the official text of the Bill)
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(MINISTER OF HOUSING)
[B - 2007]
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090707SE
B I L L
To establish and promote a sustainable social housing environment; to define the functions of national, provincial and local governments in respect of social housing; to provide for the establishment of the Social Housing Regulatory Authority in order to regulate all social housing institutions obtaining or having obtained public funds; to allow for the undertaking of approved projects by other delivery agents with the benefit of public money; to give statutory recognition to social housing institutions; and to provide for matters connected therewith.
PREAMBLE
WHEREAS in terms of section 26(1) of the Constitution of the Republic of South Africa, 1996, everyone has the right to have access to adequate housing;
AND WHEREAS in terms of section 26(2) of the Constitution, 1996 the State must take reasonable legislative and other measures, within its available resources, to achieve the progressive realisation of this right;
AND WHEREAS in terms of section 2(1)(a) of the Housing Act, 1997 (Act No. 107 of 1997), national, provincial and local spheres of government must give priority to the needs of the poor in respect of housing development;
AND WHEREAS all three spheres of government must, in terms of section 2(1)(e)(iii) of the Housing Act, 1997, promote the establishment, development and maintenance of socially and economically viable communities and of safe and healthy living conditions to ensure the elimination and prevention of slums and slum conditions;
AND WHEREAS all three spheres of government must in terms of section 2(1)(e)(vii) of the Housing Act, 1997, promote higher density in respect of housing development to ensure the economical utilisation of land and services;
AND WHEREAS there is a need for social housing to be regulated;
AND WHEREAS there is a dire need for affordable rental housing for low to medium income households which cannot access rental housing in the open market;
BE IT THEREFORE ENACTED by the Parliament of the Republic of South Africa, as follows:—
ARRANGEMENT OF SECTIONS
Sections
CHAPTER 1
DEFINITIONS AND GENERAL PRINCIPLES APPLICABLE TO SOCIAL HOUSING
1. Definitions
2. General principles applicable to social housing
CHAPTER 2
ROLES AND RESPONSIBILITIES
3. Roles and responsibilities of National Government
4. Roles and responsibilities of Provincial Government
5. Roles and responsibilities of Municipalities
6. Roles and responsibilities of other role players
CHAPTER 3
SOCIAL HOUSING REGULATORY AUTHORITY
7. Establishment of Social Housing Regulatory Authority
8. Composition of Regulatory Authority
9. Appointment of Council
10. Staff
11. Functions of Regulatory Authority
12. Powers of intervention
CHAPTER 4
SOCIAL HOUSING INSTITUTIONS
13. Accreditation of social housing institutions
14. Functions of social housing institutions
15. Management of social housing institutions
16. Reporting by social housing institutions
CHAPTER 5
GENERAL PROVISIONS
17. Just administrative action
18. Financing of social housing
19. Regulations
20. Short title and commencement
CHAPTER 1
DEFINITIONS AND GENERAL PRINCIPLES APPLICABLE TO SOCIAL HOUSING
Definitions
1. In this Act, unless the context indicates otherwise–
"accreditation" means the screening, evaluation, provisional and final accreditation by the Regulatory Authority that will, amongst other things, allow a social housing institution access to grants available under the social housing programme;
"approved project" means a social housing project in a restructuring zone approved by the provincial government pursuant to an application for capital grant funding to undertake the acquisition, development, conversion or upgrading of buildings for social housing;
"capital grant" means the capital grant contemplated in the social housing policy;
"Council" means the Council appointed in terms of section 9;
"Department" means the Department of Housing;
"Director-General" means the Director-General of the Department of Housing;
"house rules" means the rules in relation to the control, management, administration, use and enjoyment of the property of a social housing institution;
"Housing Act, 1997" means the Housing Act 1997 (Act No. 107 of 1997);
"institutional investment grant" means one or more of the capacity building grants contemplated in the social housing policy;
"institutional investment plan" means a training and skills development plan which is a component of the social housing investment plan intended to ensure that social housing institutions acquire the expertise, skills and operational capacity to manage the institution on a sustainable basis and to produce and manage approved projects;
"investment criteria" means the criteria against which the Regulatory Authority may make investments in social housing institutions;
"lease agreement" means the standard lease agreement utilised by a social housing institution, and includes the house rules;
"low to medium income households" means those households falling within the income categories as determined by the Minister from time to time;
"maladministration" means non-compliance with the provisions of this Act or a situation or condition indicating substantial financial, governance or management failure;
"MEC" means the member of the Executive Council of a province responsible for housing;
"Minister" means the Minister of Housing;
"National Housing Finance Corporation" means the National Housing Finance Corporation incorporated as a public company in terms of the Companies Act, 1973 (Act No. 61 of 1973);
"national housing programme" means a programme contemplated in section 3(4)(g) of the Housing Act, 1997;
"other delivery agent" means an entity other than a social housing institution which may undertake an approved project, but excludes a provincial government or a municipality;
"prescribe" means prescribe by the Minister by regulation or prescribe by the Regulatory Authority in its rules, as the case may be;
"provincial government" means a provincial government, acting through the MEC for housing;
"Public Finance Management Act" means the Public Finance Management Act, 1999 (Act No. 1 of 1999);
"public funds" means the institutional subsidy or any other government subsidy utilised for creation of housing stock or any funding provided pursuant to this Act;
"qualifying criteria" means the criteria applied by the Regulatory Authority for purposes of the accreditation of a social housing institution as prescribed by the Minister;
"regulation" means a regulation under this Act;
"Regulatory Authority" means the Social Housing Regulatory Authority established by section 7;
"restructuring zone" means a geographic area which has been—
(a) identified by the municipality, with the concurrence of the provincial government, for purposes of social housing; and
(b) designated by the Minister in the Gazette for approved projects;
"social housing" means a rental or co-operative housing option for low to medium income households at a level of scale and built form which requires institutionalised management and which is provided by social housing institutions or other delivery agents in approved projects in designated restructuring zones with the benefit of public funding as contemplated in this Act;
"social housing institution" or "institution" means an institution accredited or provisionally accredited under this Act which carries or intends to carry on the business of providing rental or co-operative housing options for low to medium income households (excluding immediate individual ownership and a contract as defined under the Alienation of Land Act, 1981 (Act No. 68 of 1981)), on an affordable basis, ensuring quality and maximum benefits for residents, and managing its housing stock over the long term;
"social housing investment plan" means a corporate plan and budget as required by the Public Finance Management Act comprising 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 housing programme;
"social housing policy" means the official social housing policy as determined by the Minister in terms of section 3(2)(a) of the Housing Act, 1997;
"social housing programme" means the national housing programme for social housing, instituted by the Minister in terms of section 3(4)(g) of the Housing Act, 1997;
"social housing regulatory plan" means a corporate plan and budget as required under section 52 of Public Finance Management Act; and
"this Act" includes the regulations, any rules, directives or instructions made under it.
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General principles applicable to social housing
2. (1) In giving priority to the needs of low and medium income households in respect of social housing development, the National, Provincial and Local spheres of Government and social housing institutions must—
(a) ensure their respective housing programmes are responsive to local housing demands and special priority must be given to the needs of women, children, disabled persons, the elderly and vulnerable groups;
(b) support the economic development of low to medium income communities by ensuring that they are close to job opportunities, markets and transport and by stimulating job opportunities to emerging entrepreneurs in the housing services and construction industries;
(c) afford residents the necessary dignity and privacy by providing the residents with a clean, healthy and safe environment;
(d) not discriminate against residents on any of the grounds set out in section 9 of the Constitution, including individuals affected by HIV and AIDS;
(e) consult with interested individuals, communities and financial institutions in all phases of social housing development;
(f) ensure the sustainable and viable growth of affordable social housing as an objective of housing policy;
(g) facilitate the involvement of residents and key stakeholders through consultation, information sharing, education, training and skills transfer, thereby empowering residents;
(h) ensure secure tenure for the residents in social housing institutions, on the basis of the general provisions governing the relationship between tenants and landlords as set out in the Rental Housing Act, 1999 (Act No. 50 of 1999), and between primary housing co-operatives and its members as set out in the Co-operatives Act, 2005 (Act No. 14 of 2005);
(i) promote—
(i) an environment which is conducive 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 who wish to enter the social housing market;
(iii) the establishment, development and maintenance of socially and economically viable communities to ensure the elimination and prevention of slums and slum conditions;
(iv) social, physical and economic integration of housing development into existing urban and inner-city areas through the creation of quality living environments;
(v) medium to higher density in respect of social housing development to ensure the economical utilisation of land and services;
(vi) the provision of social, community and recreational facilities close to social housing development;
(vii) the expression of cultural identity and diversity in social housing development;
(viii) the suitable location of social housing stock with respect to employment opportunities;
(ix) the conversion or upgrading of suitable residential and non-residential buildings for social housing use;
(x) incentives to social housing institutions and other delivery agents to enter the social housing market;
(xi) an understanding and awareness of social housing processes;
(xii) transparency, accountability and efficiency in the administration and management of social housing stock;
(xiii) best practices and minimum norms and standards in relation to the delivery and management of social housing;
(xiv) the provision of institutional capacity to support social housing initiatives;
(xv) the creation of sustainable, viable and independent housing institutions responsible for providing, developing, holding or managing social housing stock; and
(xvi) the use of public funds in such a manner that stimulates or facilitates private sector investment and participation in the social housing sector.
(2) (a) The Minister may, by notice in the Gazette, prescribe any principle for social housing development in addition to, and consistent with, the principles set out in subsection (1).
(b) The Minister must, before prescribing any principle contemplated in paragraph (a)—
(i) cause a draft of such principle to be published by notice in the Gazette and invite the public to comment within 30 days after such publication;
(ii) after the period contemplated in subparagraph (i) has lapsed, submit a list of notices published in terms of subparagraph (i), to Parliament for approval.
(c) The list of notices contemplated in paragraph (b)(i) must in respect of each notice state the number and title of the notice and the number and date of the Gazette in which it was published.
(d) The Minister may only prescribe a principle contemplated in paragraph (b) if all comments have been considered and Parliament has approved the prescribing of the principle.
CHAPTER 2
ROLES AND RESPONSIBILITIES
Roles and responsibilities of National Government
3. (1) National government, acting through the Minister, must –
(a) create and uphold an enabling environment for social housing, by providing the legislative, regulatory, financial and policy framework for the delivery of social housing;
(b) ensure compliance with its constitutional responsibilities;
(c) address issues that affect the growth, development 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 housing programme as a national housing programme to promote the development and supply of social housing stock for low to medium income persons;
(f) designate restructuring zones submitted by provinces and identified by municipalities and specifically provided for in a municipality’s integrated development plan contemplated in section 25 of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000), and may where appropriate, after due notice in the Gazette, withdraw such designation;
(g) establish capital and institutional investment grants;
(h) review and approve the social housing investment plan and social housing regulatory plan;
(i) allocate the funds from the Department's budget for the operational costs and commitments of the Regulatory Authority in accordance with the approved social housing investment plan and social housing regulatory plan, respectively;
(j) determine norms and standards to be adhered to by provinces and municipalities; and
(k) monitor the Regulatory Authority and hold it accountable.
(2) The costs and expenses connected with the implementation of this Act must be defrayed from money appropriated by Parliament to the Department for that purpose.
Roles and responsibilities of Provincial Government
4. (1) Every Provincial government, through its MEC, must –
(a) ensure fairness, equity and compliance with national and provincial social housing norms and standards;
(b) ensure the protection of consumers by creating awareness of consumer’s rights and obligations;
(c) facilitate sustainability and growth in the social housing sector;
(d) mediate in cases of conflict between a social housing institution or other delivery agent and a municipality, if required;
(e) submit proposed restructuring zones to the Minister;
(f) monitor social housing projects to ascertain that relevant prescripts, norms and standards are being plied with;
(g) approve, allocate and administer the capital grants, in the manner contemplated in the social housing investment plan, in approved projects;
(h) ensure that the process contemplated in paragraph (g) is conducted efficiently;
(i) administer the social housing programme and may for this purpose approve –
(i) any projects in respect thereof; and
(ii) the financing thereof out of money paid into the accredited bank account of the province as contemplated in section 18(3); and
(j) develop the capacity of municipalities to fulfil the roles and responsibilities contemplated in section 5.
(2) A provincial government may not interfere with the governance or management of social housing institutions.
(3) Subject to the provisions of section 11(3)(k), the Regulatory Authority, may not interfere with the monitoring of social housing projects.
Roles and responsibilities of Municipalities
5. A municipality must, where there is a demand for social housing within its municipal area, as part of the municipality’s process of integrated development planning, take all reasonable and necessary steps, within the national and provincial legislative, regulatory and policy framework, to –
(a) facilitate social housing delivery in its area of jurisdiction;
(b) encourage the development of new social housing stock and the upgrading of existing stock or the conversion of existing non-residential stock;
(c) provide access–
(i) to land and buildings for social housing development in designated restructuring zones;
(ii) for social housing institutions to acquire municipal rental stock;
(iii) to municipal infrastructure and services for approved projects in designated restructuring zones,
and, to the extent permitted under the Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003), and the Local Government: Municipal Systems Act, 2000;
(d) initiate and motivate the identification of restructuring zones; and
(e) enter into performance agreements with social housing institutions.
Roles and responsibilities of other role players
6. (1) Subject to such directives as the Minister may issue by notice in the Gazette, the National Housing Finance Corporation must, in respect of social housing—
(a) provide access to loan funding;
(b) make available to the Regulatory Authority when 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 guarantees for loan funding from financial institutions;
(d) explore and support mechanisms aimed at facilitating public funding for social housing; and
(e) conclude an agreement with the Regulatory Authority aimed at avoiding the duplication of functions and overregulation of social housing institutions.
(2) Other delivery agents may undertake approved projects in designated restructuring zones with the benefit of public funding to the extent determined in the social housing programme pursuant to agreements concluded with the Regulatory Authority as contemplated in sections 11(3)(d) and 19(1)(b)(i).
(3) The delivery agents contemplated in subsection (2) are not subject to the regulatory powers of the Regulatory Authority referred to in section 12, but are subject to the terms and conditions contained in agreements referred to in subsection (2).
CHAPTER 3
SOCIAL HOUSING REGULATORY AUTHORITY
Establishment of Social Housing Regulatory Authority
7. (1) There is hereby established a juristic person to be known as the Social Housing Regulatory Authority.
(2) The Public Finance Management Act applies to the Social Housing Regulatory Authority.
Composition of Regulatory Authority
8. (1) The Regulatory Authority consists of a—
(a) Council, appointed in accordance with section 9;
(b) Chief Executive Officer appointed by the Council, with the approval of the Minister, responsible for the day to day management of the affairs of the Regulatory Authority;
(c) Corporate Services Manager appointed by the Chief Executive Officer, responsible for financial management, including corporate management services;
(2) The Chief Executive Officer and the Corporate Services Manager serve as executive members of the Council.
(3) The Regulatory Authority acts through the Council and all acts of the Council are regarded as acts of the Regulatory Authority.
Appointment of Council
9. (1) The Council consists of at least seven and no more than 12 fit and proper persons who have knowledge, experience or qualifications in the field of social and rental housing, regulation or other applicable competencies for the proper governance of the Regulatory Authority.
(2) Members of the Council serve in a non-executive capacity and can only be appointed after the Minister has through the media and by notice in the Gazette invited nominations of persons as candidates for the respective positions on the Council.
(3) A member of the Council is appointed for the period determined by the Minister but not exceeding three years at a time, and may, subject to subsection (2), be reappointed on the termination of that period.
(4) The Minister may at any time terminate the membership of a member of the Council for reasons which are just and fair.
(5) A member of the Council other than a person who is in the full‑time employment of the State, is paid an allowance determined by the Minister with the approval of the Minister of Finance.
(6) A member of the Council ceases to be a member if—
(a) he or she resigns;
(b) his or her estate is sequestrated;
(c) he or she becomes of unsound mind;
(d) he or she is convicted of an offence and sentenced to imprisonment without the option of a fine;
(e) he or she becomes an employee or director of a social housing institution, a member of Parliament, a provincial legislature, a municipal council, the Cabinet or the Executive Council of a Province; or
(f) he or she has failed to attend three consecutive meetings, without an apology or justified excuse.
(7) The Council must adopt standing instructions to ensure compliance with this Act, the Public Finance Management Act, and any other legislation applicable to the Regulatory Authority.
(8) The Council may appoint such committees as it may consider appropriate for fulfilling its responsibilities under the Act and to ensure proper governance of the Regulatory Authority and may delegate such power or assign such functions as it may consider appropriate, including any power or function under section 12, to such committee.
(9) The Council must establish the necessary matters and procedures relating to meetings of the Council.
(10) The quorum for any meeting of the Council is at least 50% of the members.
Staff
10. (1) The staff of the Regulatory Authority consists of—
(a) senior managers responsible for the necessary activities of the Regulatory Authority such as accreditation, compliance, institutional investment, capital investment of the Regulatory Authority; and
(b) such other persons as are necessary to perform the functions incidental to the functions of the Regulatory Authority.
(2) The Staff of the Regulatory Authority must be appointed by the Chief Executive Officer on the salary, terms and other conditions determined by the Chief Executive Officer in consultation with the Council.
Functions of Regulatory Authority
11. (1) The Regulatory Authority must, subject to the provisions of this Act—
(a) promote the development and awareness of social housing;
(b) provide advice and support to the Department in its development of policy for the social housing sector and facilitate national social housing programmes;
(c) advise the Minister on developments in the social housing sector;
(d) promote an enabling environment for the growth and development of the social housing sector;
(e) provide best practice information and research on the status of the social housing sector;
(f) support provincial governments with the approval of project applications by social housing institutions;
(g) assist, where requested, in the process of the designation of restructuring zones;
(h) enter into agreements with provincial governments and the National Housing Finance Corporation to ensure the co-ordinated exercise of powers; and
(i) perform any other function or exercise any other power that the Minister may prescribe.
(2) The Regulatory Authority must—
(a) annually, in accordance with the Public Finance Management Act, prepare and submit the social housing investment plan and social housing regulatory plan to the Minister;
(b) annually, in accordance with the Public Finance Management Act, prepare and submit annual financial statements and an annual report to the Minister on its performance in respect of the social housing investment and regulatory plans, respectively, during the preceding year; and
(c) comply with the provisions of the Public Finance Management Act and regulations applicable to public entities.
(3) The Regulatory Authority must, subject to the provisions of this Act—
(a) provide financial assistance to social institutions through grants to service providers accredited by the Regulatory Authority to enable them to develop institutional capacity, gain accreditation as social housing institutions, and to submit viable project applications;
(b) accredit institutions meeting accreditation criteria as social housing institutions;
(c) maintain a register of social housing institutions with the prescribed details—
(i) which is open for inspection by the public at the premises of the Regulatory Authority during normal business hours against payment of the prescribed fee; and
(ii) annually provide a copy thereof to Treasury and the Department;
(d) enter into suitable agreements with social housing institutions and other delivery agents for the protection of Government’s investment in social housing;
(e) conduct compliance monitoring through regular inspections and enforce compliance, where necessary through the exercise of its powers set out in section 12;
(f) intervene in the affairs of a social housing institution in cases of maladministration, and take the necessary steps to rectify such maladministration as contemplated in section 12;
(g) approve, administer and disburse institutional investment grants and capital grants and obtain applications for such grants through engagement with provincial governments and municipalities;
(h) consider applications from social housing institutions to dispose of properties developed, refurbished or purchased with the assistance of public funding and approve or refuse applications on the basis of proposals’ compliance with the investment criteria forming part of the regulations;
(i) consider applications from social housing institutions to relinquish their accreditation and be removed from the public register of social housing institutions and approve or refuse applications in accordance with the prescribed regulations and rules;
(j) consider applications from social housing institutions to amend their lease agreements and approve or refuse such applications on the basis of the regulations;
(k) instruct a social housing institution not to accept a social housing project allocated to it if—
(i) the social housing institution will not be able to complete the project successfully; or
(ii) it will undermine the social housing institution’s viability; and
(l) do all things necessary to ensure good governance and sustainability of social housing institutions.
(4) The Regulatory Authority may subject to the provisions of this Act and by notice in the Gazette—
(a) make rules, not in conflict with the regulations—
(i) giving effect and detailed content to the regulations;
(ii) prescribing necessary standards, ratios, procedures, requirements, forms and returns;
(iii) further regulating the conduct of social housing institutions;
(iv) prescribing procedures for compliance monitoring and the enforcement of compliance, including intervention in the affairs of social housing institutions; or
(v) specifically authorised or required by regulation;
(b) prescribe, after consultation with the Minister, any other rules for the proper functioning of the Regulatory Authority; and
(c) issue such directives, instructions and circulars as may be necessary for the exercise of its functions under this Act.
(5) The Regulatory Authority may, subject to the provisions of this Act—
(a) establish such committees as may be necessary to meet its objectives;
(b) delegate its powers to committees and officers, on such terms and conditions as it may deem necessary, but may not divest itself of such powers;
(c) conclude such contracts and institute such proceedings as may be necessary for the exercise of its powers and fulfillment of its functions under this Act.
Powers of intervention
12. (1) If the Regulatory Authority is satisfied on reasonable grounds that there has been maladministration by the social housing institution, the Regulatory Authority must—
(a) prepare a report to that effect;
(b) provide the social housing institution with a written notice of the Regulatory Authority's intention to intervene and must specify in that notice what remedial action must be taken by the social housing institution;
(c) instruct such a social housing institution to take the remedial action specified in the notice.
(2) A social housing institution under an instruction under subsection (1) may be required by the Regulatory Authority to obtain specified support to rectify such non-compliance, situation, condition or failure.
(3) The Regulatory Authority may make available funds through the social housing investment plan to assist in meeting the costs of any such support.
(4) Should the social housing institution continue to resist the intervention of the Regulatory Authority or if there is no improvement in the performance of matters which necessitated the intervention, the Regulatory Authority may authorise a forensic investigation into the institution’s affairs and appoint a public accountant and auditor registered in terms of the Public Accountant’s and Auditor’s Act, 1991, (Act No. 80 of 1991), to undertake such investigation.
(5) The Regulatory Authority may, after consultation with the providers of any debt finance to the institution and upon notice to affected parties, including the providers of finance to the institution—
(a) apply to the High Court for the suspension of the chairperson, members of the board, manager or executive or senior staff of the institution for the period of the investigation; and
(b) appoint suitably qualified people to manage the institution’s affairs in their place pending the findings of the forensic audit report.
(6) The forensic audit report must make a finding on whether the social housing institution has been managed in a manner which constitutes maladministration.
(7) If the forensic audit report does not make a finding of maladministration, the suspended persons are automatically re-instated as from the date of such report and the Regulatory Authority must review its previous instructions to the institution.
(8) If the forensic audit finds maladministration, the Regulatory Authority must request the members of the social housing institution to replace any suspended person or person associated with the maladministration with a person acceptable to or recommended by the Regulatory Authority.
(9) If the Regulatory Authority, based on the forensic audit report, does not believe that the institution is sustainable in its current form, or if the social housing institution refuses to take the steps required under subsection (8), the Regulatory Authority 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 High Court for an order placing the institution under the administration of the Regulatory Authority.
(10) If the Court grants an order placing the institution under the administration of the Regulatory Authority, the Regulatory Authority –
(a) must manage the institution effectively and efficiently;
(b) may remove the accreditation of the social housing institution;
(c) may transfer the housing stock or rights of the social housing institution to another social housing institution prepared to accept such transfer on such terms and conditions as may be agreed at the time; or
(d) where appropriate, institute legal proceedings for the winding up of the institution.
(11) Where the Regulatory Authority succeeds in restoring the viability of the institution or any part thereof, it may apply to Court for –
(a) the administration order to be lifted; and
(b) for an order authorising the Regulatory Authority to appoint suitable persons as directors and office bearers of the institution.
(12) A social housing institution or any person directly affected by a decision of the Regulatory Authority, may exercise –
(a) any rights to internal review to the Regulatory Authority in accordance with the prescribed procedures;
(b) any other rights according to law.
(13) A social housing institution for purposes of any inspection under this Act must, subject to the provisions of any applicable law, allow the Regulatory Authority –
(a) access to its premises or any property developed, constructed or managed by it;
(b) access to its records and documentation; and
(c) the seizure and photocopying of such records and documentation as may be required for investigation,
subject to such limitations as may be prescribed by the Minister.
(14) This section, in accordance with the provisions of section 6(2), does not apply to other delivery agents.
CHAPTER 4
SOCIAL HOUSING INSTITUTIONS
Accreditation of social housing institutions
13. (1) As from the commencement of this Act, all institutions having undertaken housing developments with the benefit of the institutional subsidy, are provisionally accredited social housing institutions for purposes of this Act, subject to the provisions of this Act and the powers of the Regulatory Authority.
(2) Provisional accreditation pursuant to subsection (1) lapses on the date prescribed by the Minister.
(3) An institution wishing to carry on the business of social housing must in the prescribed format apply to the Regulatory Authority for accreditation.
(4) A municipality wishing to participate in social housing may establish an institution, which must be accredited.
(5) Subject to any conditions prescribed by the Minister, a social housing institution, must be a company registered under the Companies Act, 1973, or a co-operative registered under the Co-operatives Act, 2005, or any other form of institution acceptable to the Regulatory Authority.
(6) Should a social housing institution comply with all the qualifying criteria, it shall be accredited as a social housing institution in terms of this Act and its details must be entered in a register kept for this purpose by the Regulatory Authority.
(7) Should a social housing institution at any stage fail to comply with the qualifying criteria—
(a) the Regulatory Authority may exercise the powers referred to in section 12; and
(b) the Regulatory Authority may, in its discretion and as determined in the regulations and upon notice to affected parties—
(i) recover any monies granted to the social housing institution in terms of the social housing programme;
(ii) withhold any further grants;
(iii) stipulate conditions relating to reforms to be undertaken by the social housing institution or improvements to be effected by it for the payment of any grants; and
(iv) where necessary, intervene in accordance with the provisions of section 12.