Social Housing Act, 2008 (Act No. 16 of 2008)

Rules

Rules in respect of the Transfer of Social Housing Stock or Rights and the Disposal of Social Housing Stock, 2014

Part III

6. Procedure for transfers in terms of section 12(9)(c) and regulation 13(1)
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6.1 Subject to rule 6.4 below, a transfer contemplated in section 12(9)(c) of the Act shall be preceded by the following procedure:
6.1.1The Regulatory Authority shall appoint an independent accountant and public auditor who, as required by regulation 13(1) of the Regulations, shall determine the value of the social housing stock or rights which the Regulatory Authority intends transferring to a social housing institution in terms of section 12(9)(c) of the Act. In determining such value, the independent accountant and public auditor shall have regard to:
6.1.1.1the factors contemplated in rules 6.1.2.1 to 6.1.2.10;
6.1.1.2the views of other social housing institutions on the reasonable price for such social housing stock or rights;
6.1.1.3the views of an independent property valuer appointed by SHRA or, in the absence of such property valuer being appointed, the views of SHRA.

 

6.1.2The independent accountant and public auditor shall prepare a preliminary valuation of the social housing stock. Unless otherwise directed by the Regulatory Authority, the independent accountant and public auditor shall solicit the views of social housing institutions in relation to the value of the social housing stock and, in such solicitation, shall furnish to the social housing institutions the preliminary valuation. In addition to such valuation, any of the following information relating to the social housing stock in question may be disclosed—
6.1.2.1the number of units;
6.1.2.2the number of units that are currently occupied and the number of units that are vacant;
6.1.2.3the amount of units falling within each size category (ie 1, 2 or 3 bedroom units;
6.1.2.4the occupancy level of each size category of units;
6.1.2.5details of the lease agreements in place;
6.1.2.6the payment history of the tenants;
6.1.2.7the debt finance encumbering the housing stock, if any;
6.1.2.8the financial statements of the social housing institution; and
6.1.2.9a synopsis of the condition of the units and the expected maintenance and repairs that are necessary;
6.1.2.10any other information which the independent accountant and public auditor deems relevant.

 

6.1.3Social Housing Institutions will be provided with 10 (ten) days to furnish its views, or such shorter or longer period as directed by the Regulatory Authority.

 

6.1.4The Regulatory Authority shall determine the date by which the independent accountant and public auditor must make the determination taking into account the exigencies and extent of the distress of the housing stock.

 

6.1.5Upon receipt of the determination from the independent accountant and public auditor, or as soon as possible thereafter, the Regulatory Authority shall send a written notice to duly accredited social housing institutions which, in its sole discretion, it believes are in a reasonable position to take transfer of the social housing stock or rights, inviting them to submit a written application to the Regulatory Authority for the transfer of the social housing stock or rights to such social housing institution.

 

6.1.6Any notified social housing institution which is prepared to take transfer of the social housing stock or rights shall, in response to the notice in rule 6.1.5, submit its written application within 14 (fourteen) days of receiving the notice, or within such shorter or longer period as directed by the Regulatory Authority, failing which it shall be eliminated from the process.

 

6.1.7A social housing institution shall make an application referred to in rule 6.1.5 on Form D. In its application, the social housing institution shall show good cause why the social housing stock or rights should be transferred to it and shall explain in detail how it will manage the social housing stock or rights, bearing in mind the obligations imposed on social housing institutions under the Act and the Regulations (particularly the qualifying criteria set out in regulation 3 of the Regulations).

 

6.1.8The Regulatory Authority shall, within 60 (sixty) days of the expiry of the period in rule 6.1.5 consider all applications properly made and, having regard to such considerations which are appropriate in the circumstances, make a decision as to which social housing institution shall receive transfer of the social housing stock or rights of the social housing institution under administration. Where appropriate, the Regulatory Authority may decide that the social housing stock or right shall be transferred to more than one social housing institution.

 

6.1.9The Regulatory Authority shall inform every social housing institution which submitted an application of its decision within 14 (fourteen) days of taking its decision.

 

6.1.10The decision of the Regulatory Authority is final.

 

6.1.11The Regulatory Authority shall transfer the social housing stock or rights and the transferee shall take transfer thereof in accordance with all relevant legislation applicable to the transfer of immovable property or rights.

 

6.2After the transfer has taken place, the Regulatory Authority shall credit the transferee with the value of the social housing stock or rights, as contemplated in regulation 13(1).

 

6.3The Regulatory Authority shall update the register accordingly to reflect the transfer of the social housing stock or rights of the social housing institution under administration to the transferee.

 

6.4 The Regulatory Authority may, in appropriate circumstances, transfer social housing stock or rights as contemplated in section 12(9)(c) directly to a suitable social housing institution without—
6.4.1requiring the independent accountant and public auditor to solicit and obtaining the views of social housing institutions as contemplated in rule 6.1.2 but, for the avoidance of doubt, in determining the value, the independent accountant and public auditor must take into account the factors listed in rules 6.1.2.1 to 6.1.2.10;
6.4.2following the processes in rules 6.1.3, 6.1.5, 6.1.6, 8.1.7, 6.1.8 and 6.1.9.