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Draft Housing Development Agency Bill, 2008 Portfolio Committee on Housing – 19 February 2008

Draft Housing Development Agency Bill, 2008 Portfolio Committee on Housing – 19 February 2008. BACKGROUND September 2004 – Cabinet approved Comprehensive Plan for the Development of Sustainable Human Settlements (“Plan”).

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Draft Housing Development Agency Bill, 2008 Portfolio Committee on Housing – 19 February 2008

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  1. Draft Housing Development Agency Bill, 2008 Portfolio Committee on Housing – 19 February 2008

  2. BACKGROUND • September 2004 – Cabinet approved Comprehensive Plan for the Development of Sustainable Human Settlements (“Plan”). • Draft Bill is in line with the Plan and will assist provincial and local government with the rapid release of land for housing. • Rapid release of well located land for integrated housing is one of cornerstones for success of the Plan.

  3. Background continue (Part 2) • Several provinces and many municipalities simply do not have the capacity to acquire and develop land for housing purposes. • The draft Bill establishes a Housing Development Agency (HDA) which will be the engine for driving and facilitating the acquisition of land and landed property in a way that supplements the capacities of government across all spheres.

  4. HOUSING DEVELOPMENT AGENCY (HDA) • Principle objective – by agreement with municipalities to acquire, hold, develop and release land for residential and community purposes for creation of sustainable human settlements. • HDA to contract with a municipality for purposes of acquiring available land which has been identified by a municipality for housing or community development.

  5. 2. Continue … • Above will only happen where a municipality lacks the capacity to acquire, hold or develop such land. • Functions and powers of the Agency include the assistance to municipalities to complete projects which had not been completed and the assistance to municipalities with the upgrading of informal settlements and dealing with the upgrading of informal settlements and dealing with emergency housing solutions.

  6. DRAFT HOUSING DEVELOPMENT AGENCY BILL, 2008 • Bill published for public comment in Government Gazette No. 30346 on 26 October 2007. • Comments were received, copies of which will be made available to committee members.

  7. CONTENTS OF HOUSING AGENCY DEVELOPMENT BILL • Clauses 1 and 2 of Bill deal with definitions and the establishment of the Agency. • Clause 3 of the Bill sets out the principle objective of the Agency: “The principle objective of the Agency is, by agreement with municipalities, to acquire, hold, develop and release land for residential and community purposes for the creation of sustainable human settlements.”

  8. 4. Continue … • Clause 4 describes in detail the role of the Agency. • The Agency must, where contracted thereto by a municipality • Acquire available state land which has been identified by a municipality for residential or community development purposes. • Hold, develop and release such land for residential or community development purposes. • Where municipality lacks the required capacity, Minister may recommend to the municipality to consider the conclusion of an agreement with the Agency for the purposes of the acquisition, holding and development of the land.

  9. Nothing in Bill precludes municipality from acquiring, holding and developing land in terms of its powers under the Housing Act, 1997 (Act No. 107 of 1997). • LAND WHICH MAY BE ACQUIRED BY AGENCY (Clause 5) • Land registered or vested in the state or any organ of state and which state is prepared to dispose of for residential or community development purposes. • Land in private ownership – if expropriation is necessary the provisions of sections 6 to 23 of the Expropriation Act, 1975 (Act No. 63 of 1975) apply, with the changes requested by the context. (Clause 5 of Bill).

  10. FUNCTIONS AND POWERS OF THE AGENCY (CLAUSE 6 OF BILL) • Agency may, if contracted thereto by a municipality • Develop strategic plans with regard to the identification and acquisition of suitable land; • Find, acquire, develop and release such land for residential and community development; • Prepare the necessary documentation for consideration and approval of the municipality; • Generally undertake such project management services as may be necessary; • Assist municipalities in dealing with housing developments that have not been completed; • Assist municipalities with the upgrading of informal settlements and in respect of emergency housing solutions.

  11. The Agency shall have all the powers necessary to meet its objectives, subject to the provisions of the Public Finance Management Act. • MANDATE (Clause 7 of Bill) • The Minister must conclude a written mandate with Agency. • Such mandate must – • Document the operational and performance indicators against which the performance of the Agency is measured; • Contain specific delivery targets; • Contain directions regarding the utilisation of any surplus revenue; • Be reviewed at least every 5 years; • Not be in conflict with the Act.

  12. GOVERNING BOARD (Clause 8) • Agency is governed by a Governing Board consisting of 2 executive members and 7 non-executive members. • 2 members must be designated by the Minister of Public Works and of Land Affairs, respectfully. • A Further member must be designated by the Minister of Provincial and Local Government. • The Chairperson and Deputy Chairperson to be appointed by the Minister.

  13. BOARD • The general functions of the Board and matters relating to Board members are set out in Clauses 9-15 of the Bill. These clauses contain standard provisions for such a body. • CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER • The appointment, conditions of appointment of the CEO and CFO, together with the functions of these 2 posts are set out in clauses 16-22 of the Bill.

  14. STAFF OF AGENCY (Clause 23) • CFO to determine the staff establishment necessary to enable Agency to perform its functions. • Member of staff becomes a member of the Government Employees Pension Fund. • Staff may be transferred or seconded to Agency from the public service, subject to the provisions of the Public Services Act 1994 (Act 103 of 1994).

  15. FUNDS AND FINANCIAL PROVISIONS • These are dealt with in clauses 24-25 of the Bill. • Agency is also to prepare such reports as may be required under the Public Finance Management Act and Minister must table Agency’s annual report in Parliament (Clause 26). • INTERVENTION BY MINISTER • In certain circumstances set out in clause 30 the Minister may intervene if he/she is satisfied that the Agency is in difficulty or in default of its obligations.

  16. REGULATIONS AND DISSOLUTION (CLauses 31-32) • Minister must after consultation with the Agency and the Minister of Public Service and Administration, make regulations regarding the matters set out in clause 31. • The Agency may not be placed under judicial management or liquidation except on the authority of the Act of Parliament (Clauses 32-34).

  17. LIMITATION OF LIABILITY AND OFFENCES AND PENALTIES (Clauses 35-36) • Neither Agency nor any employee thereof is liable for any loss or damage caused by the exercise of a power (or the failure thereof) or the performance of a duty under the Act, unless the act was unlawful, grossly negligent or in bad faith (Clause 35). • Clause 36 makes provision for certain offences and penalties under the Act. • On conviction a person is liable to a fine or imprisonment for a period not exceeding 5 years, or to both such fine or imprisonment.

  18. SHORT TITLE AND COMMENCEMENT (Section 37) • The Act comes into effect on a date determined by the President by proclamation in the Gazette. - End -

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