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Housing Act, 1997 (Act No. 107 of 1997)

Part 6 : Termination of Housing Arrangements

14. Arrangements regarding assets and liabilities of National Housing Board

 

1)
a) Movable property of the former Provincial Government, and all rights, liabilities and obligations of that Provincial Government in respect of such movable property pass, subject to this subsection and section 15, to the Provincial Government for the province in which such property is mainly utilised.
b) If any such movable property was utilised in more than one province, the respective heads of the departments of the provinces in question must agree in which province such property is mainly utilised.
c) In the absence of such agreement, the province in which such movable property was mainly used must be determined by arbitration in accordance with the Arbitration Act, 1965 (Act No. 42 of 1965).
d) To achieve an equitable result such agreement or arbitration may provide for the payment of compensation out of the provincial housing development fund of one province to the credit of the provincial housing development fund of another province.

 

2)
a) Immovable property of the former Provincial Government, and all the rights, liabilities and obligations of that Provincial Government in respect of such immovable property, pass, subject to subsection (3) and section 15, to the Provincial Government for the province in which such property is situated.
b) The Registrar of Deeds concerned must, at the request of a Provincial Government to which immovable property or any registerable claim or right has passed in terms of this section and on submission to him or her of the relevant title deeds and other documents and a certificate contemplated in paragraph (c), make the necessary endorsements in his or her registers and on the title deeds and other documents concerned to give effect to such passage.
c) The head of department must, for the purposes of paragraph (b), issue a certificate to the effect that the immovable property, claim or right mentioned in the certificate is immovable property or a claim or right that has passed to the relevant Provincial Government in terms of this section.
d) No transfer duty, stamp duty or registration fee is payable in respect of a passage contemplated in paragraph (b).

 

3)
a)
i) Any undeveloped land which has passed to a Provincial Government in terms of subsection (2) must, subject to subparagraph (ii), be utilised for housing development in accordance with national housing policy and a housing development project approved by the MEC.
ii) Any such land which, in the opinion of the Provincial Government, is not or will not in the future be suitable for such utilization, must be sold by such Provincial Government at a fair market value or, if it is not possible to so sell it, such land must be sold in the best interests of the State at a price approved by the MEC.
b) Any dwelling or residential erf which has passed to Provincial Government in terms of subsection (2) and which is—
i) suitable for letting or sale in terms of any national housing programme, must be let or sold by such Provincial Government in accordance with such programme;
ii) not suitable for letting or sale in terms of any national housing programme, must, subject to subsection (8), be let or sold by such Provincial Government at a fair market value or, if it is not possible to so let or sell it, be leased or sold in the best interests of the State at a rental or price approved by the MEC.
c) Any business premises or business erf which has passed to a Provincial Government in terms of subsection (2), must be sold by such Provincial Government at a fair market value or, if it is not possible to so sell it, such business premises or erf must be sold in the best interests of the State at a price approved by the MEC.
d)
i) Any erf which has passed to a Provincial Government in terms of subsection (2) and which has been set aside for use in connection with any service to be provided by a department of state or provincial administration, must be sold by such Provincial Government at a fair market value to the department of state or provincial administration, as the case may be, having responsibility for the provision of the service concerned, unless such department or administration informs the Provincial Government that the erf in question is not required for such use.
ii) If it is not possible or feasible to sell such erf at a fair market value, it must be sold in the best interests of the State at a price approved by the MEC.
iii) Any such erf which is not required by such department or provincial administration may be utilised by the Provincial Government for housing development in accordance with national housing policy and a housing development project approved by the MEC.
iv) If such erf is not required by such Provincial Government for housing development, it must be sold at a fair market value or, if it is not possible to sell such erf at a fair market value, it must be sold in the best interests of the State at a price approved by the MEC.
e) If a Provincial Government wishes to alienate any immovable property that has passed to such Provincial Government in terms of subsection (2), other than property contemplated in paragraphs (a) to (d), the Provincial Government may do so at a fair market value or, if it is not possible for such property to be alienated at a fair market value, it must be alienated in the best interests of the State at a price approved by the MEC.
f) The net proceeds of any sale, letting or alienation contemplated in paragraphs (a) to (e) must—
i) be paid into the provincial housing development fund for the province in question or, if such fund has not been established when such net proceeds are received, be dealt with in accordance with section 13 of the Housing Arrangements Act, 1993 (Act No. 155 of 1993), despite its repeal by section 20; and
ii) be utilised for housing development in accordance with national housing policy and a housing development project approved by the MEC.
g)
i) A project or scheme which immediately before the commencement of this section was in the process of execution by the former Provincial Government in terms of any law repealed by section 20 on land which has passed to a Provincial Government in terms of subsection (2), must be duly completed by such Provincial Government.
ii) The cost of completing such project or scheme must be financed by a grant from money paid into the relevant provincial housing development fund as contemplated in section 12(2).
iii) The rights, liabilities and obligations of the former Provincial Government arising out of any contract in connection with such project or scheme pass to such Provincial Government.

 

4)
a)
i) Any claim of the former Provincial Government arising out of a contract of sale of immovable property passes to the Provincial Government for the province within which such property is situated.
ii) The net proceeds of such claim must be—
aa) paid into the provincial housing development fund for that province or, if such fund has not been established when such net proceeds are received, be dealt with in accordance with section 13 of the Housing Arrangements Act, 1993, despite its repeal by section 20; and
bb) utilised for housing development in accordance with the national housing policy and a housing development project approved by the MEC.
b) Any debt or other obligation of a municipality or the premier of a province towards the former Provincial Government in respect of any project or scheme or individual dwelling which was financed by means of a loan, advance or other finance which was approved in terms of—
i) the Housing Act, 1966 (Act No. 4 of 1966);
ii) the Development and Housing Act, 1985 (Act No. 103 of 1985);
iii) the Housing Act (House of Representatives), 1987 (Act No. 2 of 1987);
iv) the Development Act (House of Representatives), 1987 (Act No. 3 of 1987); or
v) the Housing Development Act (House of Delegates), 1987 (Act No. 4 of 1987),

is hereby extinguished.

c)
i) Any—
aa) movable and immovable property acquired by the premier of a province;

bb)    immovable property of the Republic developed by the premier of a province,

by means of a loan or advance or other finance contemplated in paragraph (b), pass to the provincial housing development board for such province.

ii) Subsection (2)(b), (c) and (d) applies, with the changes required by the context, to immovable property, or a registerable claim or right in respect thereof, transferred in terms of subparagraph (i).
d)
i) The net proceeds derived from the recovery of any loan granted to a natural person by a municipality for the purposes of acquiring individual dwellings as contemplated in subsection (4)(b), must be paid into the separate operating account of such municipality referred to in section 15(5).
ii) Subsection (3)(a) to (e) applies, with the changes required by the context, in respect of any immovable property of a municipality or the premier of a province acquired by means of a loan, advance or other finance contemplated in paragraph (b).
iii) The net proceeds of any letting or sale or other alienation in terms of subparagraph (ii), read with subsection (3)(a) to (e), in respect of immovable property which was acquired by—
aa) a municipality, must be paid into the separate operating account of such municipality referred to in section 15(5);

bb)    the premier of a province, must be paid into the provincial housing development fund for such province or, if such fund has not been established when such net proceeds are received, be dealt with in accordance with section 13 of the Housing Arrangements Act, 1993, despite its repeal by section 20.

iv) The net proceeds of any letting or sale or other alienation referred to in subparagraph (iii) must be utilised for housing development in accordance with national housing policy and a housing development project approved by—
aa) in the case of subparagraphs (i) and (iii) (aa), the MEC;

bb)    in the case of subparagraph (iii)(bb), the MEC.

v) Every municipality must, in accordance with the directives of the MEC, furnish the MEC with monthly reports regarding the sale of immovable property by the municipality in terms of this paragraph, including the basis for the determination of selling prices.
vi) If the MEC is not satisfied with such basis for the determination of selling prices, the MEC may determine directives for this purpose.
e)
i) A project or scheme which immediately before the commencement of this section was in the process of execution by a municipality or the premier of a province using money provided by means of a loan, advance or other finance which was approved in terms of any law referred to in paragraph (b), must be duly completed by the municipality or the Provincial Government of that province, as the case may be.
ii) The cost of completing such project or scheme must be financed by a grant from money paid into the relevant provincial housing development fund as contemplated in section 12(2).
f)
i) The right of the former Provincial Government to recover any loan, advance or other finance granted to any natural person or housing utility company in any province in terms of any law referred to in paragraph (b), passes to the Provincial Government for that province.
ii) Any money recovered by the Provincial Government by virtue of the right that so passes to that Provincial Government, must be paid into its provincial housing development fund and must be utilised for housing development in accordance with the national housing policy and a housing development project approved by the MEC.
g)
i) If my juristic person provided any welfare facility using money lent to such juristic person by the former Provincial Government or a municipality out of any loan, advance or other finance which was approved under any law referred to in paragraph (b), the Provincial Government to which the right to recover such loan has passed or the municipality, as the case may be, may, with the approval of the MEC in consultation with the member of the Executive Council responsible for welfare in the province in question, absolve such juristic person from its obligation to repay the loan or any part thereof.
ii) Where the sale or other alienation of any welfare facility provided or acquired out of any loan, advance or other finance approved under any law referred to in paragraph (b) is subject to the approval of the Minister, the MEC in consultation with the member of the Executive Council responsible for welfare in the province in question may grant such approval on such conditions as he or she may determine.

 

5)
a) Any rights, liabilities and obligations of the former Provincial Government arising out of any loan agreement or the issue of any debentures, bills or stocks pass to the national government.
b)
i) Any shares or other interest in any company held by or vesting in the former Provincial Government in terms of section 10(1) of the Housing Arrangements Act, 1993, pass, subject to subparagraph (ii), to the national government.
ii) Any shares in Lanok (Pty) Ltd held by the former Provincial Government must be disposed of by the Minister after consultation with the Executive Councils of the provinces of Western Cape and Northern Cape.
c) Any rights, liabilities and obligations of the former Provincial Government arising out of any contract entered into between that Provincial Government and any person in terms of any national housing programme pass—
i) in the case of a national contract, to each Provincial Government;
ii) in the case of a contract relating to a particular province, to the Provincial Government of that province.
d) Any rights, liabilities and obligations of the former Provincial Government arising out of the agreement between the Mortgage Indemnity Fund (Pty) Ltd and mortgage lenders in terms of the national relocation assistance programme pass to each provincial housing development board.

 

6) For the purposes of this section any reference in any document to the National Housing Board must be construed as a reference to the Provincial Government in question.

 

7)
a) The net proceeds derived by a Provincial Government or municipality from any municipal infrastructure that has passed to such Provincial Government in terms of subsection (2) or has been provided by such municipality by means of a loan, advance or other finance contemplated in subsection (4)(b), must be utilised by the Provincial Government or municipality, as the case may be, for housing development in accordance with national housing policy.
b) Such housing development must be carried out in accordance with a housing development project approved by—
i) in the case of the Provincial Government, the MEC;
ii) in the case of the municipality, the MEC.

 

8) No rights, liabilities or obligations of any person are extinguished merely by reason of—
a) the abolition of the former Board by section 13;
b) any passage referred to in subsection (1) or (2); or
c) the extinction of any debt or other obligation by subsection (4)(b).

 

9)
a) The Minister must, institute a national housing programme to phase out every housing subsidy granted in terms of—
i) the Housing Act, 1966;
ii) the Development and Housing Act, 1985;
iii) the Housing Act (House of Representatives), 1987;
iv) the Development Act (House of Representatives), 1987; or
v) the Housing Development Act (House of Delegates), 1987.
b) Such national housing programme must contain time limits to phase out the various categories of housing subsidies.
c) The Minister must report quarterly to the parliamentary committees for housing of the National Assembly and the National Council of Provinces on the progress with the implementation of such national housing programme.

 

10)
a) If the disposal of the assets, rights, liabilities and obligations of the former Provincial Government is not sufficiently dealt with in this section, the Minister may, after consultation with each MEC, issue such directives regarding the management and disposal thereof as are necessary in order to achieve the purposes of this section.
b) Any directives so issued must be consistent with this Act.