REPUBLIC OF SOUTH AFRICA
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RENTAL HOUSING
AMENDMENT BILL

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(As presented by the Portfolio Committee on Human Settlements (National Assembly)) 
(Introduced as the Rental Housing Amendment Bill [B21-2011])
(The English text is the offıcial text of the Bill)
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(MINISTER OF HUMAN SETTLEMENTS)

[B 21—2011]						 ISBN 978-1-77037-896-4
No. of copies printed .................................... 1 800

GENERAL EXPLANATORY NOTE:
[                   ] 	Words in bold type in square brackets indicate omissions from
existing enactments.
____________	Words underlined with a solid line indicate insertions in
existing enactments.

BILL

To amend the Rental Housing Act, 1999, so as to substitute certain definitions and include definitions; to fully stipulate the duties of Government; to set out the rights and obligations of tenants and landlords in a coherent manner; to require leases to be in writing; to extend the application of Chapter 4 to all provinces; to require MEC’s to establish Rental Housing Tribunals; to extend the powers of the Rental Housing Tribunals regarding possible rulings as well as to vary or rescind any of its rulings; to provide for an appeal process to Tribunals; to require all local municipalities to have Rental Housing Information Offices; to provide for norms and standards related to rental in identified areas; to extend offences to all obligation of tenants and landlords; and to provide for matters connected therewith.

BE IT ENACTED by the Parliament of the Republic of South Africa, as follows:—

Amendment of section 1 of Act 50 of 1999

1. Section 1 of the Rental Housing Act, 1999 (hereinafter referred to as the principal Act), is hereby amended—
(a) by the insertion before the definition of “dwelling” of the following definition:
“‘arbitrary eviction’ refers to refers to depriving a tenant of occupation of a dwelling, without an order of court made after considering all the relevant circumstances;”;
(b) by the substitution for the definition of ‘‘head of department” of the following definition:	
“‘head of department’ means the officer in charge of a department of the provincial government responsible for [housing] Human Settlements in the province;”;
(c) by the insertion after the definition of ‘‘lease’’ of the following definitions:
‘‘‘local municipality’ means a municipality as defined in the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000);
 “maintenance” for purposes of the Rental Housing Act, 1999 (Act No. 50 of 1999) refers to such repairs and upkeep as may be required to ensure that a dwelling’s habitability does not constitute an unfair practice, more specifically, unacceptable living conditions and “maintain” has a corresponding meaning;”;
(d) by the substitution for the definition of ‘‘Minister’’ of the following definition:
‘‘ ‘Minister’ means the Minister of [Housing] Human Settlements;’’; and
(e) by the substitution for the definition of ‘‘prescribed’’ of the following definition:
‘‘ ‘prescribed’ means prescribed by regulation [by the MEC, by notice in the Gazette];’’.
Amendment of section 2 of Act 50 of 1999
2. Section 2 of the principal Act is hereby amended –
(a) by the substitution in subsection (2) for paragraph (c) of the following paragraph:
“(c)	promote higher residential densities in existing urban areas as well as in areas of new or consolidated urban growth; [and]”;
(b ) by the substitution in subsection (2) for paragraph (d) of the following paragraph:
	“(d) 	mobilise and enhance existing public and private capacity and expertise in the administration or management of rental housing[.]; and;
(c) by the insertion in subsection (2) after paragraph (d) of the following paragraph:
“(e)	provide legal mechanisms to protect the rights of tenants and landlords against illegal actions by the other party by affording speedy means of redress.”; and
(d) by the insertion after subsection (4) of the following sections:
“(5)	The Minister must –
(a)	monitor and assess the impact of the application of this Act on poor and vulnerable tenants; and
(b)	take such action as he or she deems necessary to alleviate hardships that may be suffered by such tenants.
(6)	For purposes of section (5), the Minister may define criteria based on age, income, or other form or degree of vulnerability that apply to such tenants or group of tenants and amend or augment the policy framework on rental housing, referred to in section (3) in such a manner as he or she sees fit.”.
Amendment of section 3of Act 50 of 1999
3. Section 3 of the principal Act is hereby amended by the insertion after subsection (4) of the following sections:
“(5)	National Government must develop and fund programmes to train members of the Tribunals and officials appointed in terms of section 14(2).
(6)	Provincial Government must financially assist local municipalities not yet on level three accreditation, in establishing Rental Housing Information Offices as contemplated in section 14.”.

Amendment of Chapter 3 of Act 50 of 1999
4. Chapter 3 of the principal Act is hereby amended by the substitution for the heading of the following heading:
“[RELATIONS BETWEEN] RIGHTS AND OBLIGATIONS OF TENANTS AND LANDLORDS”.
Amendment of section 4 of Act 50 of 1999
5. Section 4 of the principal Act is hereby amended by the deletion of subsections (2), (3), (4) and (5).
Insertion of sections 4A and 4B in Act 50 of 1999
6. The following sections are hereby inserted in the Rental Housing Act, 1999 (Act No. 50 of 1999), after section 4:
“4A.	Rights and obligations of Tenants. – (1) Tenants shall have the right to receive a written receipt from the landlord for all payments received by the landlord from the tenant the landlord, which receipt must –
(a)	be dated;
(b)	clearly indicate the address, including the street number and further description, if necessary, of a dwelling in respect of which payment is made;
(c)	whether payment has been made for rental, arrears, deposit or otherwise; and
(d)	specify the period for which payment is made:
Provided that a Tribunal may, in exceptional cases, and on application by a landlord, exempt the landlord from providing the information contemplated in this paragraph.
(2)	Tenants may request the landlord during the period of the lease to provide him or her with written proof in respect of interest accrued on a deposit paid.
(3)	On the expiration of the lease, tenants have the right to receive payment of the deposit and interest without any deduction or set-off, within seven days of expiration of the lease: Provided that where the tenant –
(a)	is liable to the landlord for any amounts under the said lease, including the reasonable cost of repairing damage to the dwelling during the lease period and the cost of replacing lost keys, the landlord may deduct such amounts and refund the balance of the deposit and interest to the tenant not later than 14 days of restoration of the dwelling to the landlord; or
(b)	fails to make him or herself available for an inspection as contemplated in section (6), the landlord may deduct any amounts to recover any damages or loss which occurred during the tenancy and refund the balance of the deposit and interest to the tenant not later than 21 days of restoration of the dwelling to the landlord.
(4)	Tenants have the right to inspect the relevant receipts which indicate the costs which the landlord incurred, as contemplated in section (3) as proof of such costs incurred by the landlord.
(5)	Tenants have a right to, in the presence of the landlord and before the tenant moves into the dwelling, have the dwelling inspected to –
(a)	determine the landlord’s responsibility for rectifying any defects or damage; and
(b)	register any defects or damage, as provided for in section 5(7).
(6)	At the expiration of the lease the tenant must make him or herself available to conduct a joint inspection of the dwelling at a time convenient to the landlord and tenant to take place within a period of three days prior to such expiration with a view to ascertaining if there was any damage caused to the dwelling during the tenant’s occupation thereof. Provided that –
(a)	failure by the landlord to inspect the dwelling in the presence of the tenant as contemplated in section (6) is deemed to be an acknowledgement by the landlord that the dwelling is in a good and proper state of repair, and the landlord will have no further claim against the tenant; or
(b)	failure by the tenant to respond to the landlord’s request for an inspection as contemplated in section (6), will result in the landlord conducting an inspection without the tenant present after which the landlord may deduct any damages or loss which occurred during the tenancy in terms of section (3)(b);
(7)	A tenant has the right, during the lease period, to privacy, and should the landlord wish to exercise his or her right of inspection it must be done in a reasonable manner after reasonable notice to the tenant.
(8)	Tenants rights as against the landlord include his or her right not to have—
(a) 	his or her person or home searched;
(b) 	his or her property searched;
(c)	his or her possessions seized, except in terms of a law of general application and having first obtained a ruling by a Tribunal or an order of court; or
(d)	the privacy of his or her communications infringed.
(9)	The rights set out in subsection (8) apply equally to members of the tenant’s household and to visitors of the tenant.
(10)	Tenants are liable for rental and other costs agreed on in the lease upon the due date, but for costs other than those agreed to in the lease tenants are only liable upon proof of factual expenditure by the landlord.
4B.	Rights and obligations of Landlords. – (1) Landlords shall have the right to apply to a Tribunal for an exemption to provide a written receipt as contemplated in section 4A(1).
(2)	A landlord may require a tenant, before moving into the dwelling, to pay a deposit which –
(a)	may not exceed an amount equivalent to an amount specified in the agreement or otherwise agreed to between the parties;
(b)	must be invested by the landlord in an interest-bearing account with a financial institution: Provided that the rate applicable to such account may not be less than the rate applicable to a savings account with that financial institution; and
(c)	must subject to sections (4) or (7) be repaid to the tenant with such interest at the rate applicable to such account on the expiration of the lease as contemplated in sections (4) or (7);
(3)	Upon request from the tenant during the period of the lease, the landlord must provide him or her with written proof in respect of interest accrued on the deposit referred to in section (2): Provided that where the landlord is a registered estate agent as provided for in the Estate Agency Affairs Act, 1976 (Act No. 112 of 1976), the deposit and any interest thereon shall be dealt with in accordance with the provisions of that Act.
(4)	On the expiration of the lease, the landlord –
(a)		must, where no amounts are due and owing to the landlord in terms of the lease, the deposit, together with the accrued interest in respect thereof, refund to the tenant, without any deduction or set-off, within seven days of expiration of the lease;
(b)		may apply such deposit and interest towards the payment of all amounts for which the tenant is liable under the said lease, including the reasonable cost of repairing damage to the dwelling during the lease period and the cost of replacing lost keys and the balance of the deposit and interest, if any, must then be refunded to the tenant by the landlord not later than 14 days of restoration of the dwelling to the landlord; and
(c)		must make available to the tenant for inspection the relevant receipts which indicate the costs which the landlord incurred as contemplated in section (4)(b) as proof of such costs incurred by the landlord.
(5)		The tenant and the landlord must jointly, before the tenant moves into the dwelling, inspect the dwelling to ascertain the existence or not of any defects or damage therein with a view to determining the landlord’s responsibility for rectifying any defects or damage or with a view to registering such defects or damage, as provided for in section 5(7).
(6)	At the expiration of the lease the landlord and tenant must arrange a joint inspection of the dwelling at a mutually convenient time to take place within a period of three days prior to such expiration with a view to ascertaining if there was any damage caused to the dwelling during the tenant’s occupation thereof: Provided that –
(a)	failure by the landlord to inspect the dwelling in the presence of the tenant as contemplated in section (6) is deemed to be an acknowledgement by the landlord that the dwelling is in a good and proper state of repair, and the landlord will have no further claim against the tenant who must then be refunded, in terms of this subsection, the full deposit plus interest by the landlord; or
(b)	should the tenant fail to respond to the landlord’s request for an inspection as contemplated in section (6), the landlord must, on expiration of the lease, inspect the dwelling within seven days from such expiration in order to assess any damages or loss which occurred during the tenancy;
(7)	The landlord, in the circumstances contemplated in section (6)(b), without detracting from any other right or remedy of the landlord –
(a) 	may deduct from the tenant’s deposit and interest the reasonable cost of repairing damage to the dwelling and the cost of replacing lost keys;
(b) 	must refund the balance of the deposit and interest, if any, after deduction of the amounts contemplated in paragraph (a), to the tenant not later than 21 days after expiration of the lease;
(c) 	must make available the relevant receipts which indicate the costs which the landlord incurred, as contemplated in paragraph (a), to the tenant for inspection as proof of such costs incurred by the landlord.
(8)		Should the tenant vacate the dwelling before expiration of the lease, without notice to the landlord, the lease is deemed to have expired on the date that the landlord established that the tenant had vacated the dwelling but in such event the landlord retains all his or her rights arising from the tenant’s breach of the lease.
(9)  	Landlords may inspect the dwelling during the course of the lease, but in doing so must respect tenants right to privacy during the lease period and may only exercise his or her right of inspection in a reasonable manner after reasonable notice to the tenant.
(10)  	Landlords’ rights against tenants include his or her right to—
(a)	prompt and regular payment of rental or any charges that may be payable in terms of a lease;
(b)	recover unpaid rental or any other amount that is due and payable where the tenant fails or refuses to make payment on demand, after obtaining a ruling by the Tribunal or an order of a court of law;
(c)	terminate the lease in respect of rental housing property on grounds that do not constitute an unfair practice and are specified in the lease;
(d)	on termination of a lease to—
(i)	have the tenant vacate the property immediately upon expiration of the lease and to receive the rental housing property in a good state of repair, save for fair wear and tear; and
(ii)	where the tenant fails or refuses to vacate the dwelling, repossess the rental housing property having first obtained an order of court; and
(e)	claim compensation for damage to the rental housing property or any other improvements on the land on which the dwelling is situated, if any, caused by the tenant, a member of the tenant’s household or a visitor of the tenant.
(11)	Landlords must ensure that the provisions of sections 5(6), (7) and (8) regarding the lease are complied with.
(12)	Landlords must maintain the structure of and provision of utilities to the dwelling.”.
Amendment of section 5 of Act 50 of 1999
7. Section 5 of the principal Act is hereby amended:
(a) by the substitution for subsection (1) of the following subsection:
“(1)	 A lease between a tenant and a landlord, [subject to subsection (2), need not] must be in writing [or] but will not be subject to the provisions of the Formalities in Respect of Leases of Land Act, 1969 (Act No. 18 of 1969).”;
(b) by the substitution for subsection (2) of the following subsection:
“(2) 	 A landlord must[, if requested thereto by a tenant,] reduce the lease to writing and must ensure that it contains the information set out in section (6).”;
(c) by the substitution for subsection (3) of the following subsection:
“(3) 	A lease will be deemed to include terms, enforceable in a tribunal or competent court, [to the effect that—] setting out the rights of tenants and landlords referred to in sections 4A and 4B.”;
(d) By the deletion in subsection (3) of paragraphs (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n), (o) and (p).
(e) by the substitution in subsection (6) for paragraph (b) of the following paragraph:
“(b)	the description of the dwelling which is the subject of the lease: Provided that a street address will be sufficient;”;
(f) by the insertion in subsection (6) after paragraph (f) of the following paragraph:
“(fA)	a statement acknowledging the rights and obligations of the tenant and landlord in terms of sections 4A, 4B and the regulations relating to unfair practice;”; and
(g) by the deletion of subsection (9).
Amendment of section 6 of Act 50 of 1999
8. The following section is hereby substituted for section 6 of the principal Act:
‘‘Application of Chapter
6. This Chapter applies to all provinces in the Republic of South Africa.’’.
Amendment of section 7 of Act 50 of 1999
9. The following section is hereby substituted for section 7 of the principal Act:
‘‘Establishment of Rental Housing Tribunals
7. [The] Every MEC [may] must within the first financial year following on the commencement of the Rental Housing Amendment Act, 2012, by notice in the Gazette establish a tribunal in the Province to be known as the Rental Housing Tribunal.’’.
Amendment of section 9 of Act 50 of 1999
10. Section 9 of the principal Act is hereby amended—
(a) By the substitution for the heading of the section of the following heading:
“[Composition] Membership  of Tribunal”;
(b) By the substitution for subsection (1) of the following section: 
(1)  The Tribunal consists of [not less than three and not more than five] seven members, who are fit and proper persons appointed by the MEC, and must comprise—
(a)	a chairperson, who is suitably qualified and has the necessary expertise and exposure to rental housing matters;
(b)	[not less than two and not more than four] six members, of whom—
(i)	[at least one and not more than] two shall be persons with expertise in property management or housing development matters; [and]
(ii)	[at least one and not more than] two shall be persons with expertise in consumer matters pertaining to rental housing or housing development matters; and [.]
(iii)	 two shall be persons with legal qualifications.”;
(c) by the insertion after subsection (1) of the following subsection:
(1B)	The members of the Tribunal must be broadly representative in terms of gender, race and disability.”;
(d) by the substitution in subsection (2) for paragraph (b) of the following paragraph: 
“(b)	the MEC has consulted with the relevant standing or portfolio committee of the Provincial Legislature which is responsible for [housing] Human Settlements matters in the province.”;
(e) by the substitution for subsection (3) of the following subsection:
“(3)  	The MEC may appoint [two] up to six persons to serve as alternate members of the Tribunal in the absence of any member referred to in paragraphs (b)(i), (ii) and (iii)   of subsection (1) respectively, but such persons must have the relevant expertise contemplated in paragraphs (b)(i), (ii) and (iii) of subsection (1) respectively.”; and
(f) by the insertion after subsection (4) of the following subsections:
‘‘(4A)	A person appointed in terms of subsection (4) may not serve for more than two consecutive terms.
(4B)	Succession plans must be adopted and must provide for replacement of members in such a manner that, for the sake of continuity, all members are not replaced at once.
(4C)	Where members already appointed at the time of commencement of the Rental Housing Amendment Act, 2012, have already served two consecutive terms, the succession plan must provide for replacement of such members over an eighteen months period to ensure continuity.”.
Amendment of section 10 of Act 50 of 1999
11. Section 10 of the principal Act is hereby amended—
(a) by the substitution for subsection (1) of the following subsection:
‘‘(1) The Tribunal [will sit] must meet on such days and during such hours and at such place as the chairperson of the Tribunal may determine after consultation with other members of the Tribunal.”;
(b) by the insertion after subsection (1) of the following subsection:
“(10A)	The Tribunal may, subject to sections 10(2B) and 10(5), arrange two simultaneous meetings in different areas for purposes of effective functioning.”; and
 (c) by the substitution for subsection (5) of the following subsection:
‘‘(5) The quorum of any meeting of the Tribunal is three members, of which at least two [members] must be members appointed in terms of –
(a)	section 9(1)(b)[(i) and (ii), respectively](iii); and
(b)	section 9(1)(b)(i) or (ii).’’;
Amendment of section 13 of Act 50 of 1999
12. Section 13 of the principal Act is hereby amended—
(a) by the substitution in subsection (4) paragraph (c) for the words preceding subparagraph (i) of the following words:
“(c) 	make any other ruling that is just and fair to terminate any unfair practice, including, without detracting from the generality of the aforegoing, a ruling to discontinue amongst others --”;
(b) by the substitution in subsection (5) for paragraph (a) of the following paragraph:
“(a)	prevailing economic conditions [of supply and demand];”;
(c) by the substitution for subsection (11) of the following subsection:
‘‘(11) 	The Tribunal must within 30 days of receipt of a complaint, refer any matter that relates to evictions to a competent court.’’; 
(d) by the substitution in subsection (12) for paragraph (b) of the following paragraph:
“(b)	where a mediation agreement has been concluded pursuant to section 13 (2) (c), make such an agreement a ruling of the Tribunal[; and]”;
(e) by the substitution in subsection (12) for paragraph (c) of the following paragraph:
“(c)	issue spoliation and attachment orders and grant interdicts[.];”;
(f) by the insertion in subsection (12) after paragraph (c) of the following paragraphs:
“(d)	subject to section (5), make a ruling to compel payment of rent as described and contracted to in a lease and arrear rentals; and
(e)	in respect of any matter over which it has jurisdiction, make any order necessary to give effect to this Act.”;
(f) by the insertion after subsection (12) of the following subsections:
‘‘(12A) 	The Tribunal may, acting on its own accord or on application by any affected person, rescind or vary any of its rulings if such rulings—
(a) 	were erroneously sought or granted in the absence of the person affected by it;
(b) 	contain an ambiguity or patent error or omission, but only to the extent of clarifying that ambiguity or correcting that error or omission; or
(c) 	were granted as a result of a mistake common to all parties to the proceedings.’
(12B) 	The Tribunal may act on its own accord when it is supplementing accessory or consequential matters, including:--
(a)	costs orders;
(b)	altering an order for costs where it was made without hearing the parties
(c)	interest on ruling debts; 
(d)	clarification of a ruling so as to give effect to the Tribunal’s true intention; 
(e)	correcting clerical, arithmetical or other errors in its ruling:
Provided that any substantive change to a ruling must be made within 14 days of the ruling being made.
(12C) 	An application for rescission or variation must be brought within 14 days of the ruling being received by the affected person.”;
Amendment of section 14 of Act 50 of 1999
13. Section 14 of the principal Act is hereby amended—
(a) by the substitution for subsection (1) of the following subsection:
‘‘(1) 	[A] Every local [authority] municipality [may] must establish a Rental Housing Information Office to advise tenants and landlords [in] with regard to their rights and obligations in relation to dwellings within [the area of such local authority’s their] its area of jurisdiction[.]: Provided that local municipalities may combine the functions of the Rental Housing Information Office with an existing office.”; and
 (b) by the substitution for subsection (2) of the following subsection:
‘‘(2) 	[A] Every local [authority] municipality may, subject to the laws governing the appointment of local government officials, appoint or designate officials to carry out any duties pertaining to such Rental Housing Information Office.’’.
Amendment of section 15 of Act 50 of 1999
14. Section 15 of the principal Act is hereby amended –
(a) by the substitution in subsection (1) for the words preceding paragraph (a) of the following words:
 ‘‘Subject to section (3), [The] the Minister [must] may make regulations, after consultation with the [standing or portfolio on housing] relevant parliamentary committees and every MEC, by notice in the Gazette, [make regulations] relating to—’’;
(b) by the substitution in subsection (1) for paragraph (a) of the following paragraph:
“(a)	anything which may or must be prescribed under [Chapter 4] this Act;”;
(c) by the substitution in subsection (1) for paragraph (b) of the following paragraph:
“(b)	the procedures and manner in which the proceedings of the Tribunal must be conducted, including circumstances and process for submitting an appeal;”;
(d)  by the substitution in subsection (1) paragraph (f) for paragraph (xv) of the following paragraph:
“(xv)	maintenance; and”;
(e)  by the substitution in subsection (1) paragraph (f) for paragraph (xvi) of the following paragraph:
“(xvi)	reconstruction or refurbishment work; [or]”;
(f) by the insertion in subsection (1) after paragraph (f) of the following paragraphs:
“(fA)	circumstances that will be regarded as urgent for purposes of section 13(10); 
(fB)	norms and standards [per identified geographical areas] that are aligned to the policy framework set out in section 2(3), related to [rent in relation]:
(i)	terms and conditions of the lease, specifically in relation to fairness and protection of the weaker contract party;
(ii)	safety, health and hygiene;
(iii)	basic living functions including access to basic amenities;
(iv)	size;
(v)	overcrowding; and
(vi)	affordability:
Provided that such norms and standards may be set per geographical area; 
(fC) the offences referred to in section 16; and”; and
(g) by the insertion after subsection (2)of the following subsection:
“(3)	The Minister must issue regulations as contemplated in section 1(b), (f), (fA) and (fB) within 12 months of the commencement of the Rental Housing Amendment Act, 2012.”
Amendment of Chapters 4 and 5 of Act 50 of 1999
15. Chapters 4 and 5 of the principal Act are hereby amended by removing section from Chapter 4 and inserting it under Chapter 5 before section 16.
Amendment of Section 16 of Act 50 of 1999
16. Section 16 of the principal Act is hereby amended –
(a) by the insertion after paragraph (a) of the following paragraphs:
“(aA)	wilfully or grossly negligently interferes with the rights of the tenant and landlord set out in sections 4A(1), (3), (7), (8) and (9)  and sections 4B(9), (10)(b), (10)(c) and (10)(d)(i);
(aB)	wilfully or grossly negligently fails to fulfil his or her obligations as landlord in terms of sections 4B(2)(c) and (12) respectively;”; and
(b) by the substitution for paragraph (g) of the following: 
“(g)	fails to comply with any ruling of the Tribunal [in terms of section 13 (4)];”.
Amendment of section 17 of Act 50 of 1999
17. Section 17 of the principal Act is hereby amended –
(a) by the substitution for subsection (1) of the following subsection:
“(1) Without prejudice to the constitutional right of any person to gain access to a court of law[, the proceedings of a Tribunal may] – 
(a)  	an application to appeal the ruling of the Tribunal may be submitted to the Tribunal within 21 days after notice of the ruling was received by the person intending to file an application for appeal; and
(b)	 the proceedings of a Tribunal, including appeal proceedings, may be brought under review before the High Court within its area of jurisdiction.”; and
(b) by the insertion after subsection (1) of the following subsections:
“(2) 		The members of the Tribunal who made the ruling may not hear the appeal, and where necessary the Chairperson must appoint alternate members in terms of section 9(3) to hear the appeal.
(3)		The Minister must prescribe –
(a)	the circumstances under which an application for an appeal may be submitted; and
(b)	the procedure to submit an appeal, which may include first obtaining consent to appeal from the members of the Tribunal who made the ruling.”.
Substitution of expressions in Act 50 of 1999
18. The principal Act is hereby amended by the substitution for the expression ‘‘local authority’’, wherever it occurs, of the expression ‘‘local municipality’’;
Short title and commencement
19. This Act is called the Rental Housing Amendment Act, 2011, and comes into operation on a date determined by the President by Proclamation in the Gazette.

MEMORANDUM ON THE OBJECTS OF THE RENTAL HOUSING AMENDMENT BILL, 2011
1. BACKGROUND
1.1 Since the promulgation of the Rental Housing Amendment Act, 2007 (Act No. 43 of 2007), on 13 May 2008, the Department undertook a monitoring and  implementation process with regard to the Act. It was identified that there is a need for each and every province to establish Rental Housing Tribunals. All provinces are faced with similar Rental Housing challenges, whether formal or backyard.
1.2 It was evident from the monitoring and implementation process that not all provinces have established Rental Housing Tribunals. Some of the provinces have only recently established their Rental Housing Tribunals and only after intervention by the Department.
1.3 In view of the above, the Bill seeks to amend sections 7 of the Rental Housing Act, 1999 (Act No. 50 of 1999) (the principal Act), in order to render the establishment of Rental Housing Tribunals in every province mandatory.
2. OBJECTS OF BILL
The objects of the Bill are therefore to—
2.1 substitute certain definitions;
2.2 extend the application of Chapter 4 to all provinces;
2.3 require the MEC’s to establish Rental Housing Tribunals; and
2.4 extend the powers of the Rental Housing Tribunals to rescind any of its rulings.
3. PERSONS OR BODIES CONSULTED
Representations were requested from the Head of Legal Services in the provincial departments and from the various Rental Housing Tribunals. Written and verbal presentations were received in this regard.
4. IMPLICATIONS FOR PROVINCES
It will be obligatory for each province to establish a fully operational Rental Housing Tribunal.
5. FINANCIAL IMPLICATIONS FOR STATE
5.1 The costs involved for the establishment and operations of the provincial Rental Housing Tribunals will be incurred by the provincial departments of Human Settlements. However, in this regard, it should be mentioned that all the provinces already have partly or fully operational Rental Housing Tribunals.
5.2 The Department will incur the costs associated with the implementation of the legislation. The Department will furthermore incur the cost for the publication of the  Bill for public comments, information sessions, translations and other incidental costs in relation to the Bill. The said costs will be defrayed from the Department’s budget.
6. PARLIAMENTARY PROCEDURE
6.1 The State Law Advisers and the Department of Human Settlements are of the opinion that this Bill must be dealt with in accordance with the procedure established by section 76(1) or (2) of the Constitution of the Republic of South Africa, 1996, since it falls within a functional area listed in Schedule 4 to the said Constitution, namely ‘‘Housing’’. 
6.2 The State Law Advisers are of the opinion that it is not necessary to refer this Bill to the National House of Traditional Leaders in terms of section 18(1)(a) of the Traditional Leadership and Governance Framework Act, 2003 (Act No. 41 of 2003), since it does not contain provisions pertaining to customary law or customs of traditional communities.