Standard Bank: Group Compliance
7 September 2007
COMMENT ON THE SOCIAL HOUSING Bill (B29.2007)
Thank you for the opportunity to comment on this important legislation. We
trust that our comment may be of use in the further development of the Bill.
1.1 Sections
Section 2(1) (i) (xv): The sub-section relates to the
promotion of viable and independent housing institutions. The introduction to
Section 2 places the responsibility for the provisions also on social housing
institutions", It is not clear what the role of social housing
institutions will be in the promotion of "viable and independent housing
institutions. Are the latter institutions separate from social housing
institutions?
Section 4(1) (l) (ii): It is not clear what is meant by
"accredited" in the sentence. Please consider use of the word
"designated", to reflect "designated bank account",
Section 6(1) (c): "...access to guarantees for loan
funding" - "guarantees" is not defined. It is suggested that the
term be defined to prevent any possible confusion.
Section 10 (1) (a): We submit that the term
"necessary activities" is somewhat vague and can perhaps be more
closely described, or a suitable cross-reference made.
Section 11 (4): We respectfully submit that the costs of
compliance and the sources of funding of such costs should be considered when
prescribing compliance (and reporting) responsibilities. It is submitted that
onerous compliance costs and responsibilities may hinder the promotion of
institutions wanting to take up the development of social housing. Please consider
this comment where compliance responsibilities are referred to elsewhere in the
Bill.
Sections 13 (5) and 14 (1) (d): Reading these sections
together, and with specific reference to social housing institutions registered
as companies under the Companies Act, 1973, it seems that such companies will
be Section 21 Companies (not-far-gain). Clarity is needed that this reading is
correct.
Section 14: The section makes reference to the
"merger" and "separation" of social housing institutions.
It is submitted that these terms should be clarified.
Section 14 (1) (c): We submit that the reference to
"quality living environments" is somewhat vague. The evaluation of
what constitutes "quality" is subjective.
Section 14 (1) (i): The meaning of this sub-section is not
clear to us and we suggest that the intention he clarified, or perhaps the
paragraph split to enhance the meaning.
Section 14 (1) (j): The provision indicates that the
approval of the Regulatory Authority is required for any merger between social
housing institutions. Consideration should perhaps be given to include
reference to tile role of the Competition Commission in this regard.
Sections 14 (1) (k) and 14 (1) (I): Reference is made to
"prescribed documentation" and "prescribed matter". It is anticipated
that these will be described in any future Regulations.
1.2 Other matters
All legal agreements entered into between the social housing institution and
the occupant must have the approval of the Regulatory Authority. There are yet
no guidelines as to the form of the agreements or the process involved in the
approval process. Perhaps consideration can be given to include such guidelines
in any future Regulations.
Yours faithfully
M Connolly: Manager: Regulator Services