Social Housing Bill: Reponse to Submission & Rental Housing Amendment Bill: deliberations

Share this page:

Meeting Summary

A summary of this committee meeting is not yet available.

Meeting report



12 September 2007

Chairperson: Ms Z Kota (ANC)

Documents Handed Out:
Social Housing Bill: Preliminary Response
Portfolio Committee Amendments on the Rental Housing Amendment Bill (B30-2007)
Rental Housing Amendment Bill [B30-2007]

Audio recording of meeting

The Housing Portfolio Committee met to firstly discuss Portfolio Committee Amendments on the Rental Housing Amendment Bill (B30-2007) and secondly to consider a presentation by Ms Odette Crofton (from Social and Rental Housing) that dealt with the Preliminary Response to the Social Housing Bill 29 of 2007. Various legal state advisors were present to answer any questions with regards to the Social Housing Bill and the Rental Housing Amendment Bill.

The Chair, Ms Z Kota (ANC) opened the meeting by the first welcoming the various delegates {Mr S Moodley (special advisor to the Minister of Housing, Ms L Sisulu), Ms N Mayikiso, Ms K Beja and Ms Z Adikhane (Senior Sate Law Advisors). She informed the board that they would be receiving a lot of advice from their visitors. The chair then indicated that they should proceed with the day’s agenda, beginning with the Rental Housing Amendment Bill.

Rental Housing Amendment Bill: deliberations
Clause 2: The second amendment was a new clause. The committee added a new insertion of sub section (2a) and (2b)

Clause 5: the committee decided to omit paragraph (b)

There was then a debate around issues of discretion and the topic of landlords which lasted a while. The Chair then called a quick recess whilst she took the time to convene with the delegation.

After the short recess the Chair informed the committee that they would go through the Bill again.

Section 1: All were in favour of the amendment
Section 4, Clause (b): All were in favour of the amendment
Section 5, Clause 3(c): All were in favour of the amendment
Section 9, Clause 4(b): All were in favour of the amendment
Section 9, Clause 4(c): All were in favour of the amendment
Section 13, Clause 5: All were in favour of the amendment
Section 13, Clause 5(b): The committee decided to omit this paragraph
Section 15, Clause 6: All were in favour of the amendment
Section 16, Clause 7: All were in favour of the amendment

The committee came to a consensus and all agreed with the new bill.

Social Housing Bill: Response to submissions
The Chair then informed the committee that it was time to proceed to the social housing bill.

Ms Odette Crofton the led a presentation which’s focus was a Preliminary Response to the Social Housing proposal. She began by explaining the context and provided socio-economic demographics. She identified that Rental Demand was a key issue and that has added pressure to the issue of social housing. She said this pressure was influenced by changes in the National Credit Act, the property boom which gave landlords no limits on the rent they expect and finally the fact that the legal age to enter a contract has been reduced from 21 to 18, expanding the market.

Ms Crofton called for intervention in both the private and public rental housing markets. She then discussed the proposed rental strategy specifically regarding Community Residential Units (CRUs) and Social Housing. She mentioned that these two projects/institutions were designed to interrelate as the CRUs stabilise the housing problem and Social Housing looks to create more opportunities to rent.

Ms Crofton then addressed existing legislation (housing Act) and the new legislation (Social Housing Act). She then proceeded to discuss the Social Housing policy, which involved banks and international donors but her focus was the private sector specifically funders, managers and Directors. She then provided the following definition for Social Housing.

“A rental or co-operative housing option for to low income persons at a level of scale and built form which requires institutionalised management and which is provided by accredited social housing institutions or in accredited social housing projects in designated restructuring zones.”

Ms Crofton then discussed Social Housing Institutions (SHIs) as Delivery Agents for Social Housing and introduced three groups pivotal to Social Housing policy.

They were legislative and regulatory instruments, financial instruments and capacity building instruments

The Chair then asked Ms Crofton to pause her presentation and offered the discussion to the floor.

Mr Steyn (DA) mentioned that the SHF wasn’t great at service delivery, but rather great at creating institutions, therefore how do we address the issue of service delivery?

Ms Crofton replied that it was the responsibility of government to oversee the creation of the relevant units and grant access to land. Local Government are to supervise and regulate the projects, Provincial and National Government are to provide and regulate funding, therefore the issue of delivery must not be taken up with government as their duties is to provide access to land and regulate all other entities. This is based on an incentive driven system to reward and encourage those who ran projects successfully.

Mr Masango (DA) mentioned that considering a large number of construction companies are section 21 institutions, were they part of SHRA and are they accountable to SHRA.

The Chair replied that the committee had conducted research in EU nations and identified that South Africa was way behind with its social housing projects. She questioned the capabilities of construction companies operating in South Africa.

Both Mr Moodley and Mr Mabena (ANC) raised issues around subsidies and double subsidies.

The Chair then informed Ms Crofton to continue with her presentation.

Ms Crofton mentioned that there were five chapters with regards to the Social Housing Bill.
Chapter 1: the terminology and definitions are ambiguous.
Chapter 2: looks at roles and responsibilities of MFMA and the PFMA alignment.
Chapter 3: focuses on the establishment and functions of SHRA.
Chapter 4: deals with the accreditation and functioning of SHRA.
Chapter 5: deals with various programmes and regulations.
Ms Crofton mentioned that this bill dealt with Social Housing only, and issues of land were addressed in another bill.

The Chair then opened a second discussion to the floor.

Ms Dambuza (ANC) wasn’t convinced by chapter 2 especially with regards to the roles and responsibilities of the MFMA and the PFMA alignment, as the PFMA wasn’t included in the bill. She believed that more consultation is required with regards to drafting the bill.

Mr Moodley then mentioned the restrictions that construction companies should adopt (BEE).

Mr Steyn (DA) mentioned that people were bound to abuse Social Housing as they may be able to afford better housing but will continue to reside under Social Housing therefore he proposes a continuous 3 year screening test.

Mr Moodley queried about the various levels of accountability. He questioned who would receive the funding, SHI or SHRA

The chair informed Mr Moodley that we should focus on SHRA, and that Parliament would ensure that the composition is correct as the Minister was to appoint the relevant candidates.

Mr Mabena then asked what phase they were currently in?

Ms Crofton replied that the National Treasury would not fund them until the bill became and Act. She then answered Mr Mabena informing him that they were currently in the interim phase, and further mentioned that they required continuity to smoothly phase in the transition (18 months)

The Chair asked Ms Crofton what level of involvement Ms Crofton wanted from the Housing Portfolio Committee.

Ms Crofton replied that SHRA would inspect to insure that people don’t take advantage of Social Housing.

The Chair then mentioned that the deadline for the Social Hosing bill was the 9th of October 2007. She then thanked everybody and adjourned the meeting.



No related


No related documents


  • We don't have attendance info for this committee meeting

Download as PDF

You can download this page as a PDF using your browser's print functionality. Click on the "Print" button below and select the "PDF" option under destinations/printers.

See detailed instructions for your browser here.

Share this page: