Department of Human Settlements
The human settlements department has published the social housing regulations in the Government Gazette.
The regulations are published in terms of the Social Housing Act of 2008.
They were first published for comment in September 2010.
The act was drawn up to promote a sustainable social housing environment in South Africa. It also created the social housing regulatory authority (SHRA).
The regulations stipulate that any institution involved in social housing must be accredited as a social housing institution by the SHRA.
The SHRA is also mandated to put in place an enabling environment for the growth and development of the social housing sector.
Social housing receives financial support from the state. The housing is directed at low and medium income households.
The act defines social housing as “a rental or co-operative housing option for low to medium income households at a level of scale and built form which requires institutionalized management and which is provided by social housing institutions or other delivery agents in approved projects in designated restructuring zones with the benefit of public funding.”
Applications for accreditation must be accompanied by an institution’s:
• Founding documents
• Business plan
• Operational policies
• Plans to ensure good governance, financial sustainability and property management capacity
The SHRA has 90 days in which to either approve an application or reject it.
An approval can also be give with certain conditions in place.
The regulations identify three main types of social housing institutions that can be accredited:
• Section 21 companies
• Municipal entities
• Housing co-operatives
The regulations also set down how the register of social housing institutions is to be constructed.
The register must contain detail on the:
• Name and form of the institution
• Status of accreditation
• Date of accreditation
• Grants approved
• Social housing projects completed
• Social housing stock under management
The regulations also contain detail on:
• Compliance monitoring
• Code of conduct
• Investment criteria
• Entry, enquiry and seizure of documents
• Agreements
Sabinet Cape Town Office
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