Housing Code
Part 2
Chapter 4: Statutory Bodies
The Housing Act makes provision for the replacement of the former National Housing Board with a South African Housing Development Board, and the renaming of the former Provincial Housing Boards as Provincial Housing Development Boards. This chapter sets out the roles, responsibilities and functions of these new bodies, and the procedures for appointing members.
4.1 South African Housing Development Board
The Housing Act abolishes the former National Housing Board and replaces it with the South African Housing Development Board (SAHDB).
The new Board is a statutory body comprising housing experts in the housing development field. The Board has two primary functions:
- The Board advises the Minister of Housing on any matter relating to housing development. This responsibility entails advice to the Minister whenever the Board is requested to do so by the Minister, or whenever the Board considers it necessary to do so.
- The Board monitors the implementation of national housing policy.
In practice, the Board reviews proposals on housing policy and strategy as well as progress reports emanating from the National Department of Housing and provides expert guidance to the Minister. Whenever a housing policy or strategy document is considered, it passes through a series of evaluation and decision making structures for careful review and assessment. Within the National Department of Housing, housing policy and strategy proposals are normally first reviewed by the Board for recommendation or adjustment. Once approval is recommended by the Board, it proceeds to the Heads of Housing Departments Committee meeting, comprising the Director General of the National Department of Housing and the nine Heads of Provincial Housing Departments for final preparation and recommendation to the Housing: Minmec. The Housing: Minmec comprises the Minister of Housing and the nine MEC’s responsible for housing, as well as by representatives of the organisation representing municipalities at national level, namely the South African Local Government Organisation (SALGA).
Contrary to its predecessor, the former National Housing Board, the new Board is not a legal entity. Accordingly, all the power, duties, functions, assets, and liabilities as well as rights and obligations of the former Board were essentially devolved to Provincial Housing Development Boards. A limited number of assets and liabilities as well as rights and obligations were assigned to authorities in the national sphere of government. The Board’s administrative functions are performed by officers and employees of the National Department of Housing.
1. Composition of the Board
The Board consists of a chairperson, a vice-chairperson and not more than 13 other members. Members of the Board are fit and proper persons; and have relevant knowledge, qualifications or experience in the field of housing development.
Remember: In keeping with the broad principle of fairness and equity, the members of the Board reflect broadly the race, gender and geographic composition of our country. This is in accordance with the Constitution.
2. Procedure for Appointing the Board
The Minister of Housing appoints the members of the South African Housing Development Board (SAHDB). The process for appointing the Board is as follows:
- The Minister invites nominations of persons as candidates. Invitations are advertised in the media and the Government Gazette.
- The parliamentary committees for housing review candidates and make recommendations in a manner that is open and transparent.
- The Minister appoints the members of the Board, with due consideration to the recommendations of the parliamentary committees of housing.
3. Period of Appointment & Conditions for Termination
The Minister determines the period of appointment of a member of the Board, to a maximum of three years. Board members can be reappointed.
Membership to the Board is however terminated if:
- The Board member resigns.
- The Board member is absent from three consecutive meetings of the Board without obtaining the leave of the Board.
- The Board member is sequestrated.
- The Board member applies for assistance contemplated in section 10(1)(c) of the Agricultural Credit Act, 1966 (Act No. 28 of 1966).
- The Board member becomes of unsound mind.
- The Board member is convicted of an offence and sentenced to imprisonment without the option of a fine.
- The Board member becomes a member of Parliament, a provincial legislature, a Municipal Council, the Cabinet or the Executive Council of a province.
- The Minister terminates the office of the Board member for reasons that are just and fair.
4. Meetings of the Board
Meetings of the Board are chaired by the Chairperson or, in his or her absence the vice-chairperson, who is mandated with the responsibilities of the Chairperson in his or her absence. The Minister appoints any other member of the Board to act as chairperson, if both the chairperson and the vice-chairperson are absent.
Regarding the arrangements for meetings,
- The Minister determines the arrangements for the first meeting of the Board.
- The chairperson determines arrangements and proceedings for all subsequent meetings.
- The chairperson is empowered to convene a special meeting of the Board.
- The chairperson convenes a meeting within 14 days of the receipt of a written request signed by at least five members of the Board.
- The quorum for a meeting of the Board is more than 50 percent of its members.
5. Remuneration of Members of the Board
Members of the Board are paid an allowance, determined by the Minister of Housing, with the approval of the Minister of Finance.
Figure 10, illustrates the procedure for appointing the members of the South African Housing Development Board, and matters incidental to the functioning of the Board.
Figure 1. Appointment of members of the South African Housing Development Board and Matters Incidental Thereto
4.2 Provincial Housing Development Boards
“Provincial Housing Development Board”, which is a legal entity, is the new name for “Provincial Housing Board” (PHB). PHBs were originally established in terms of the Housing Arrangements Act, 1993, as “Regional Housing Boards”. Then, in terms of the Housing Amendment Act, 1994, Regional Housing Boards were replaced by nine Provincial Housing Boards, in line with the new provinces created through our constitution. These bodies were primarily conduits for housing subsidies. They accepted, evaluated, and approved or denied subsidy applications. Their other functions included advising the MEC on housing matters in the province and administering other national and provincial housing programmes, consistent with national housing policy. Executive Committees of PHBs were enabled by the Housing Arrangements Act, 1993. They were mandated to make day-to-day decisions in between PHB meetings, for ratification at the following PHB meeting.
The Housing Act provides that the Provincial Housing Boards established in each province under previous legislation continue to exist under the name of Provincial Housing Development Boards (PHDBs). Executive Committees of the Provincial Housing Boards also continue to exist. Members already appointed to the Provincial Housing Boards or the Executive Committees continue to hold office until their period of appointment is fulfilled, or until the MEC determines otherwise. The Housing Act also provides for the Provincial Legislature to abolish the Provincial Housing Development Board (PHDB) and Executive Committee if an alternative body is established to perform the functions of the abolished Board. This must be done by provincial legislation.
The Housing Act also provides for the devolution of the functions, assets, liabilities, etc. from the former National Housing Board to Provincial Housing Development Boards. This is considered in detail in Section 3.3, Chapter 3, “Managing Assets, Liabilities, Rights and Obligations” of this Part of the Code.
1. Functions of the Provincial Housing Development Board
The functions of the Provincial Housing Development Board (PHDB) are:
- To advise the MEC on any matter relating to housing development in the province.
- To administer national and provincial housing programmes consistent with national housing policy and for this purpose, may:
- approve the financing of housing development projects that occur under the national and provincial housing programmes.
- appoint agents where necessary.
- To perform its functions and to manage, administer and dispose of assets, liabilities, rights and obligations, in keeping with the policy directives of the MEC.
- To report to the MEC on the activities of the Board when requested to do so by the MEC.
- To carry out certain functions of the former National Housing Board that have been devolved to the Provincial Housing Development Board (PHDB).
The Provincial Administration undertakes the administrative functions of the Provincial Housing Development Board and its Executive Committee.
2. Composition of the Provincial Housing Development Board
Each Provincial Housing Development Board has 18 members or less, on condition that the total number of members is divisible by three. This is because the Provincial Housing Development Board represents three sectors equally, namely:
- Suppliers: sectors and subsectors supplying or financing housing goods or services in a province.
- Consumers: organisations and community-based groups in civil society representing the interests of consumers of housing goods or services in a province.
- Government: institutions regulating housing in a province and the political parties which are represented in the provincial legislature of the province.
A Provincial Housing Development Board must:
- broadly reflect the race and gender composition of South Africa and the geographic composition of the province
A member or alternate member of a PHDB must:
- be a fit and proper person
- have knowledge, qualifications or experience in the field of housing development
3. Process for Appointing the Board
The MEC responsible for housing matters in a province appoints the members of the Provincial Housing Development Board following a similar process to that followed for appointing members to the South African Housing Development Board:
- The MEC invites nominations of persons as candidates. Invitations are advertised in the media and the Provincial Gazette.
- The committee for housing of the Provincial Legislature reviews candidates in a manner that is open and transparent, and makes recommendations to the MEC.
- The MEC appoints the members of the Board, with due consideration to the recommendations of the said committee for housing.
- The MEC may also appoint an alternate member if a member other than the Chairperson or Vice Chairperson requests the appointment of an alternate member to act on his or her behalf when absent from duties.
4. Period of Appointment
The MEC of a province determines the period of appointment of a member of the Board, with the maximum being three years. Board members can be re-appointed on the termination of such period.
Membership to the PHDB is however terminated if:
- he or she resigns;
- without the leave of such board, he or she is absent from three consecutive meetings of the board;
- his or her estate is sequestrated or he or she applies for assistance contemplated in section 10 (1) (c) of the Agricultural Credit Act, 1966 (Act no. 28 of 1966);
- he or she becomes of unsound mind;
- he or she is convicted of an offence and sentenced to imprisonment without the option of a fine;
- he or she becomes a member of Parliament, a provincial legislature, a Municipal Council, the Cabinet or the Executive Council of a province; or
- the MEC, with the approval of the Executive Council of which he or she is a member, terminates his or her office for reasons which are just and fair.
5. Meetings of the Provincial Housing Development Board
Chairing of Meetings
Meetings of the Provincial Board are chaired by the Chairperson or, in his or her absence the Vice-Chairperson, who in such cases is mandated with the responsibilities of the Chairperson. The Chairperson and Vice- Chairperson are designated by the MEC. When both are absent or unable to fulfil their functions, the MEC must designate any other member of the Board to act as chairperson during such absence or incapacity.
Arrangements for Meetings
With regards to arrangements for meetings,
- The chairperson determines arrangements and proceedings for meetings.
- The chairperson is empowered to convene a special meeting of the Board.
- The chairperson convenes a meeting within 14 days of the receipt of a written request signed by at least six members of the Board.
- The quorum for a meeting of the Board is more than 50 percent of its members.
Exclusion of Members from Meetings
Members (including alternate members) are excluded from meetings, discussions and decision- making in certain instances:
- if there is direct or indirect financial interest on the part of the member; their spouse (including a person with whom the member lives as if they were married or with whom the member habitually cohabits); or an immediate family member (meaning parent, child, brother or sister).
- if there is direct or indirect financial interest on the part of a business partner, associate or non State employer of a member or a spouse.
In order to enforce this, the MEC determines procedures for a member or alternate member to disclose any direct or indirect financial interest on a periodic basis.
6. Conditions of Service
The MEC for Housing, with the approval of the MEC for Finance of the Province, determines the conditions of service of a member or alternate member. The MEC must obtain the approval of the MEC for Finance of such conditions of service. Conditions of service may vary for members and for alternate members; for members who serve on the Board by virtue of office; and for members serving on a full-time or a part-time basis.
7. The Executive Committee
The Executive Committee consists of a chairperson and vice-chairperson and not more than four other members of the board and is appointed by the Provincial Housing Development Board, with the approval of the MEC.
Procedures for meetings are determined by the Provincial Housing Development Board, subject to directives of the MEC for Housing.
The Executive Committee performs functions of the Provincial Housing Development Board as determined by the Board.
The Executive Committee is subordinate to the Board in that the Committee is not empowered to alter or rescind any decision of the Board. Furthermore, decisions of the Executive Committee can be rescinded and / or amended by the Provincial Housing Development Board except where a right, obligation, or liability has passed on to a third party, unless such party consents to the rescission or amendment.
8. Reporting to the Provincial Legislature
The MEC must submit a report to the Provincial Legislature within 90 days after 31 December of each year on the activities of the Provincial Housing Development Board, as well as accredited municipalities, during the previous year. If the Provincial Legislature is not in session, then the MEC submits the report within 14 days after the commencement of its next session.8. Appointment and Operations of the Provincial Housing Development Board
Figure 11 illustrate the procedure for appointment of members of the PHDB and matters incidental to the functioning of the Board.
Figure 2. Appointment and Operations of the Provincial Housing Development Board
9. Abolition of the Provincial Housing Development Board
A Provincial Legislature may abolish by law the Provincial Housing Development Board and the Executive Committee. This may be done only if the Provincial legislation provides for a body to perform the functions of the Provincial Housing Development Board. The members of the alternative body are to be appointed by the MEC under the same process of appointment as members of the Provincial Housing Development Board and the composition of the body must broadly reflect the gender and racial composition of our country and the geographic composition of the province in question.
Figure 12 below illustrates the process of appointing members to the alternative body to the PHDB.
Figure 3. Process for Appointing an Alternative Body to the Provincial Housing Development Board
