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Housing and Building Act


Published: 2001

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ARRANGEMENT OF SECTIONS

PART I

PRELIMINARY

Section

1. Short title.

2. Interpretation.

PART II

HOUSING AND GUARANTEE FUNDS

3. Establishment of Housing and Guarantee Funds.

4. Minister may guarantee certain loans.

5. Minister may advance moneys and purchase and let dwellings.

6. Application of Housing and Guarantee Funds.

7. Transfer of money to another Fund.

PART III

ALTERNATIVE PROCEDURE TO FORECLOSURE ON MORTGAGE

DEFAULTS

8. Interpretation.

9. Application of this Part.

10. Effect of certificate.

11. Acquisition of property by Minister.

12. Allocation of property or money between Funds.

13. No stamp duty, etc.

PART IV

BUILDING FUNDS

14. Establishment of Building Funds.

15. Power of Minister under this Part.

16. Transfer of money to another fund.

17. Application of National Housing Fund.

PART V

RATES FUNDS

18. Establishment of rates funds.

19. Application of rates fund.

20. Moneys may be held in rates fund on behalf of National Housing

Fund.

21. Dissolution of rates fund.

PART VI

RENT CONTROL

22. Application.

23. Rent boards and Rent Appeal Board.

24. Rent regulations.

PART VII

GENERAL

TITLE 22 25. Interpretation.

26. Holding of Funds.

27. Accounts and audit.

28. Powers of entry and inspection.

29. Remedy of Minister against defaulting mortgagors.

30. Financial year.

31. Regulations.

32. Registration of immovable property.

33. Liquor licence not to be issued to boarding-house in respect of which a

guarantee is in force.

34. Savings in respect of changes of areas.

AN ACT to provide for the establishment and control of funds related to housing and

building; to define the purposes for which the moneys in each of the funds may be

used; to authorize the Minister to make loans, give guarantees and other undertakings,

acquire, let and dispose of immovable property, construct buildings and provide

services, in certain circumstances and for certain purposes; to provide for an

alternative procedure; to foreclosure in relation to certain loans in respect of which

such guarantees have been given; to provide for regulating the leasing of immovable

property; and to provide for matters connected therewith and incidental thereto.

[Date of commencement: 2nd February, 1979.]

PART I

PRELIMINARY

1 Short title

This Act may be cited as the Housing and Building Act [Chapter 22:07].

2 Interpretation

In this Act-

"boarding-house" means any premises in respect of which the business of supplying

accommodation or food and accommodation for reward is carried on but does not

include-

(a) premises in which accommodation is provided for fewer than five

persons who are not members of the family of the person by whom the said business

is carried on; or

(b) a club; or

(c) a lodging-house, hostel or other similar premises provided for school

children or by a charitable institution; or

(d) premises in respect of which a current licence for the sale of liquor has

been granted under the Liquor Act [Chapter 14:12];

"build", in relation to a dwelling or boarding-house, includes to augment, extend,

repair or maintain such dwelling or boarding-house;

"declared area" means an area declared to be a declared area in terms of subsection

(2) of section eighteen;

"dwelling" means a building, or part of a building, including a flat, designed as a

dwelling for a single family and includes the usual appurtenances and outbuildings

and such services and other improvements as may be approved by the Minister;

"Housing and Guarantee Fund" means the Fund referred to in section three;

"local authority" means-

(a) a municipal council, town council or local board established in terms

of the Urban Councils Act [Chapter 29:15];

(b) a rural district council established in terms of the Rural District

Councils Act [Chapter 29:13];

"Minister" means the Minister of National Housing and Public Construction or any other Minister to whom the President may, from time to time, assign the

administration of this Act;

"National Housing Fund" means the Fund referred to in section fourteen;

"rates fund" means a rates fund established in terms of Part V.

PART II

HOUSING AND GUARANTEE FUNDS

3 Establishment of Housing and Guarantee Funds

(1) Notwithstanding anything to the contrary contained in the Audit and Exchequer

Act [Chapter 22:03], there is hereby established a fund, to be known as the Housing

and Guarantee Fund, which shall be vested in the Minister and of which the Minister

shall, subject to this Act, have the sole management.

(2) The Fund established by subsection (1) shall consist of-

(a) moneys received by way of commission under any stipulation made in

terms of subsection (5) of section four;

(b) moneys received in respect of interest, rents or the realization of any

property of, or in respect of any other transaction relating to, the Fund;

(c) moneys appropriated for the purpose by Act of Parliament;

(d) property acquired by the Minister under section five or Part III;

(e) moneys transferred to the Fund under section sixteen;

( f ) any other assets to which the Fund may become entitled.

4 Minister may guarantee certain loans

(1) Subject to subsection (2), the Minister may undertake, on such terms and

conditions as he may think fit, to guarantee the repayment of a loan made in the

following cases and subject to the limitations respectively set out as follows, that is to

say, a loan-

(a) to any person for the purpose of purchasing land and building a

dwelling thereon or of building a dwelling on land owned by the borrower or of

purchasing an existing dwelling;

(b) to any person for the purpose of purchasing land and building two or

more dwellings thereon or of building two or more dwellings on land owned by the

borrower or of purchasing two or more dwellings, if in all such cases all the dwellings

are to be let by the borrower or one of the dwellings is to be occupied by the borrower

personally and the remaining dwelling or dwellings are to be let by the borrower;

(c) to any person for the purpose of-

(i) acquiring the lease of a dwelling or building intended to be used for

business or industrial purposes if such lease is for a period of not less than thirty-five

years; or

(ii) building one or more dwellings or a building intended to be used for

business or industrial purposes on land which is leased by the borrower for not less

than thirty-five years; or

(iii) purchasing an existing building intended to be used for business or

industrial purposes or building a building intended to be used for such purposes on

land owned by him or held by him under an agreement of purchase;

where the land concerned is in such areas as may from time to time be

prescribed:

Provided that where a person acquires, subsequent to the date of

commencement thereof, a lease referred to in this paragraph, which was originally for

a period of not less than thirty-five years, the Minister may undertake to guarantee a

loan to such person in terms of this paragraph, notwithstanding the fact that the lease

will terminate in less than thirty-five years;

(d) to any person for the purpose of purchasing land and building a boarding-house thereon or of building a boarding-house on land owned by the

borrower.

(2) No guarantee shall be undertaken in terms of subsection (1) in respect of an

amount which exceeds such sum or value as the Minister, with the approval of the

Minister responsible for finance, may from time to time fix for all or different cases.

(3) An amount guaranteed under this section may include any sums payable by the

borrower to the lender in terms of the loan agreement.

(4) The Minister may stipulate for the payment by the lender of a commission as one

of the conditions of any guarantee undertaken under this section.

(5) When and as soon as an amount guaranteed under this section has been repaid the

guarantee shall be extinguished.

5 Minister may advance moneys and purchase and let dwellings

(1) The Minister may-

(a) on such terms and conditions as he may think fit, advance moneys to

any person who is carrying out an approved scheme, in respect of work done in

connection therewith;

(b) on such terms and conditions as he may think fit, make advances to

any person for the purpose of purchasing land and building thereon a building

intended to be used for the accommodation of persons who are aged, handicapped or

maladjusted in the community or who are of such other class as may be approved by

the Minister, or of building on land owned by the borrower a building intended to be

used for the accommodation of any such class of persons, or of purchasing an existing

building intended to be used for the accommodation of any such class of persons;

(c) on such terms and conditions as he may think fit, advance moneys-

(i) to any person carrying on the business of making loans secured by

first mortgages of immovable property, for the purpose of enabling any borrower; or

(ii) secured by a mortgage of the property concerned. to any person for

the purpose of enabling such person;

to do one or more of the following-

A. to purchase land with an existing dwelling thereon;

B. to build a dwelling on land owned by the borrower;

C. to purchase land and build a dwelling thereon:

Provided that this paragraph shall apply only in respect of property

forming part of the assets of the Housing and Guarantee Fund or forming part of an

approved scheme;

(d) undertake to purchase and purchase dwellings forming part of an

approved scheme where the person carrying out such scheme has not, within such

reasonable period after the completion of the dwellings as the Minister may

determine, sold such dwellings;

(e) where a claim arises or is likely to arise from a guarantee under

section four, purchase the land or building in respect of which the loan forming the

subject of the guarantee was given;

( f ) let, sell or otherwise dispose of any property forming part of the assets

of the Housing and Guarantee Fund;

(g) acquire any property for the purposes of the Housing and Guarantee

Fund;

(h) with the approval of the Minister responsible for finance and of such

terms and conditions as they may think fit, borrow moneys on security of mortgages

of property forming part of the assets of the Housing and Guarantee Fund;

(i) with the approval of the Minister responsible for finance, do one or

more of the following- (i) purchase or lease dwellings, hostels or other buildings intended to be

used for residential purposes;

(ii) acquire land for the construction thereon of dwellings, hostels or other

buildings intended to be used for residential purposes;

(iii) construct dwellings, hostels and other buildings intended to be used

for residential purposes;

(iv) provide essential services for any dwelling, hostel or building

purchased, leased or constructed by him in terms of subparagraph (i), (ii) or (iii);

(v) enter into contracts with other persons for the purposes referred to in

subparagraph (iii) or (iv);

(vi) sell, let or otherwise dispose of any lease, dwelling, hostel, building or

land purchased, acquired or constructed by him or on his behalf in terms of this

paragraph.

(2) Where any land, dwelling or other building has been purchased or any lease has

been acquired in terms of paragraph (g) of subsection (1) of section fifteen for the

National Housing Fund, the Minister may, after consultation with the Minister

responsible for finance, make such contribution towards the expenditure incurred by

that Fund in connection with such purchase or acquisition as may be agreed upon by

them.

(3) For the purposes of subsection (1)-

"approved scheme" means a scheme approved by the Minister for the construction of

one or more dwellings approved by him on any piece of land where such piece of

land is registered in the Deeds Registry and-

(a) is included in a township as defined in the Land Survey Act [Chapter

20:12]; or

(b) does not exceed twenty hectares in extent and is situated in the

vicinity of a township as defined in the Land Survey Act [Chapter 20:12] and is used

or intended primarily for residential purposes; or

(c) is specified by the Minister for the purposes of the sector;

"essential services" means a service for the supply, disposal and removal of water,

electricity, rubbish and sewage and such other services as the Minister, with the

approval of the Minister responsible for finance, may determine.

6 Application of Housing and Guarantee Funds

(1) The moneys of the Housing and Guarantee Fund may be applied towards-

(a) meeting any claim arising from a guarantee given by the Minister

under section four;

(b) any of the purposes set out in section five;

(c) any decrease in the value of any asset of the Fund;

(d) any matter incidental to any of the foregoing.

(2) The following expenditure, losses and liabilities shall be charged to and

discharged from the Housing and Guarantee Fund-

(a) any losses incurred on the realization of any asset of the Fund;

(b) any moneys transferred from the Fund under section seven;

(c) any expenditure, loss or liability lawfully appertaining to the Fund.

7 Transfer of money to another Fund

The Minister may, whenever he considers it expedient to do so, after consultation

with the Minister responsible for finance, transfer such sum as may be agreed upon

by them from the Housing and Guarantee Fund to the National Housing Fund.

PART III

ALTERNATIVE PROCEDURE TO FORECLOSURE ON MORTGAGE

DEFAULTS 8 Interpretation

In this Part-

"certificate" means the certificate referred to in subsection (2) of section nine;

"guarantee" means the guarantee referred to in subsection (1) of section nine in so far

as it relates to a particular loan;

"lender means the lender referred to in subsection (1) of section nine;

"loan" means the loan referred to in subsection (1) of section nine and includes the

full amount guaranteed;

"mortgagor" means the mortgagor referred to in subsection (1) of section nine, as

described in the mortgage bond;

"property" means the property referred to in subsection (1) of section nine;

"subsequent mortgage" means any second or ensuing mortgage in respect of the

property in favour of a mortgagee other than the lender, and "subsequent mortgagee"

and "subsequent mortgage bond" shall be construed accordingly;

"the mortgage" means the mortgage referred to in subsection (1) of section nine and

includes a second or ensuing mortgage executed by the mortgagor in respect of the

property in favour of the lender, and "the mortgage bond" shall be construed

accordingly.

9 Application of this Part

(1) Where a person has mortgaged property as security for a loan and there is in

relation to such loan a guarantee made in terms of section four and where the

mortgagor has made such default in his obligations in terms of the mortgage, at any

time before, on or after the 13th October, 1967, as would entitle the lender to

foreclose, the lender shall give the Minister written notice of the default within such

period and containing such particulars of the state of the loan as may be prescribed,

together with a recommendation as to whether in the opinion of the lender a

certificate should be issued.

(2) Subject to this section, upon receipt of such notice the Minister may, if-

(a) he-

(i) has received the written consent thereto of the mortgagor; or

(ii) has obtained a judgment against the mortgagor for the amount owing

in terms of the mortgage or has obtained from the lender cession of the rights under

such a judgment; or

(iii) is satisfied, after due inquiry, that the mortgagor has abandoned the

property;

and

(b) he is satisfied that the lender has made all reasonable efforts to enforce

his rights in terms of the mortgage, including, if he so requires, realization of any

collateral security related thereto, foreclosure or other court action; and

(c) he has agreed with the lender upon the amount of the loan and any

costs and charges in relation thereto to be payable by him in terms of section ten and

the terms and conditions of such payments; and

(d) the rights of the lender in terms of the mortgage have beer. ceded to

him; and

(e) the lender has consented thereto in writing; and

( f ) any subsequent mortgagees have been given written notification of

the amount agreed upon in terms of paragraph (c);

issue a certificate to the Registrar of Deeds in the prescribed form stating that the

provisions of this Part shall apply in respect of the property, and thereupon such

provisions shall so apply notwithstanding anything to the contrary contained in the

guarantee, the mortgage, any subsequent mortgage or any other agreement. (3) The Minister shall not issue a certificate unless-

(a) written notice of the prescribed period and in the prescribed manner

has been given to the mortgagor, the occupier of the property and any subsequent

mortgagees, stating that the powers conferred by this Part may be exercised in respect

of the property and containing the valuation of the property made in terms of

paragraph (b); and

(b) not later than a date two months before the proposed issue of the

certificate the value of the property as at that date has been assessed by a State valuer

as being less than the sum of-

(i) the amount outstanding on the loan as at that date; and

(ii) the costs of foreclosure as estimated by the Minister;

and

(c) if the mortgagor has died or his estate has been sequestrated or

assigned, the executor, trustee or assignee, as the case may be, consents thereto in

writing.

(4) The mortgagor or any other person having an interest in the value of the property

may within one month of the valuation made in terms of paragraph (b) of subsection

(3) apply to the Administrative Court to have such valuation set aside on the ground

that it is unreasonable or on any other good ground, and that court may thereupon

make such order as it considers fit.

10 Effect of certificate

Upon the issue of a certificate the Minister shall become liable to pay the lender the

amount agreed upon under paragraph (c) of subsection (2) of section nine and the

guarantee shall be extinguished.

11 Acquisition of property by Minister

(1) Upon receipt of a certificate and the deed or other evidence of cession of the rights

referred to in subparagraph (ii) of paragraph (a), or in paragraph (d), as the case may

be, of subsection (2) of section nine and the title deed, the mortgage bond and any

subsequent mortgage bonds, the Registrar of Deeds shall, notwithstanding anything to

the contrary in any law, and without any requirements as to the consent of the

mortgagor or any subsequent mortgagee, cancel such bonds and endorse the

particulars of the certificate together with the day and hour when it was received, on

such deed and in his registers. Should the title deed be lost or otherwise unobtainable,

then, upon application by the Minister, after advertisement has been made in the

manner provided under the Deeds Registries Act [Chapter 20:05], the Registrar of

Deeds shall, if he is satisfied that no good reason to the contrary exists, issue to the

Minister a certified copy to take the place of such deed.

(2) Notwithstanding anything to the contrary in any law, upon such endorsement

being made-

(a) ownership of the property shall pass to the Minister;

(b) the Minister may, by any person authorized by him in writing and

without recourse to any court, enter upon and take possession of the property and,

subject to any lease then in force, eject any occupiers thereon;

(c) the debt of the mortgagor in terms of the mortgage shall be reduced by

the value of the property assessed in terms of paragraph (b) of subsection (3) of

section nine.

12 Allocation of property or money between Funds

Any property acquired or moneys received or paid in terms of this Part by the

Minister shall be held by him on behalf of or paid into or out of, as the case may be,

the Housing and Guarantee Fund or the National Housing Fund as he may direct.

13 No stamp duty, etc. No stamp duty, fee of office or other charge shall be payable in respect of anything

done by the Registrar of Deeds in terms of subsection (1) of section eleven.

PART IV

BUILDING FUNDS

14 Establishment of Building Funds

(1) Notwithstanding anything to the contrary contained in the Audit and Exchequer

Act [Chapter 22:03], there is hereby established a fund, to be known as the National

Housing Fund, which shall be vested in the Minister and of which the Minister shall,

subject to this Act, have the sole management.

(2) The Fund established by subsection (1) shall consist of-

(a) moneys appropriated for the purpose by Act of Parliament;

(b) moneys received in respect of interest, rents or the realization of any

property of, or in respect of any other transaction relating to, the Fund;

(c) any moneys contributed to the Fund under subsection (3) of section

five;

(d) property or leases acquired by the Minister under section fifteen or

Part III;

(e) moneys borrowed by the Minister under subparagraph (ii) of

paragraph (n) of subsection (1) of section fifteen;

( f ) moneys transferred to the Fund under section seven;

(g) any other assets to which the Fund may become entitled.

15 Power of Minister under this Part

(1) The Minister may-

(a) construct dwellings and other buildings and provide essential services;

(b) prepare and carry out schemes;

(c) conduct or give assistance for conducting experimental projects

related to the construction of dwellings and other buildings and the equipment and

fittings therefor;

(d) enter into contracts with other persons for the construction of

dwellings or other buildings or for the carrying out of schemes;

(e) on such terms and conditions as he may think fit, undertake, on behalf

of other persons-

(i) to construct dwellings and other buildings and to provide essential

services on land owned or leased by such other persons;

(ii) to sell or let the dwellings and other buildings so constructed;

( f ) purchase dwellings or other buildings;

(g) dispose of the lease of any dwelling or other building acquired by

him;

(h) sell or let any dwellings or other buildings constructed by him or on

his behalf or any land, dwellings or other buildings purchased by him under this

section or dispose of any lease acquired by him under this section;

(i) acquire land for the construction thereon of dwellings or other

buildings or for the purpose of any scheme, and sell or otherwise dispose of such

land;

( j) on such terms and conditions as he may think fit, make advances to

any person for the purpose of purchasing land and building thereon a dwelling or

building intended to be used for business or industrial purposes or of building on land

owned by the borrower a dwelling or building intended to be used for business or

industrial purposes or of purchasing an existing dwelling or building intended to be

used for business or industrial purposes;

(k) on such terms and conditions as he may think fit, advance moneys toany person whether corporate or unincorporated for the purpose of purchasing land

and building flats thereon, or of building flats on land owned by the borrower or of

purchasing existing flats;

(l) construct buildings required in connection with the provision of

essential services, postal services or banking or building societies services or any

other service provided by a local or other authority established by or in terms of any

enactment and to let any buildings and to provide essential services for any bank,

building society or such authority providing the administration of such services;

(m) with the approval of the Minister responsible for finance, and on such

terms and conditions as they may think fit-

(i) make advances-

A. to local authorities for the purpose of carrying out schemes approved

by the Minister;

B. to any person administering any local government area in terms of

section 7 of the Urban Councils Act [Chapter 29:15] in which a scheme approved by

the Minister is being or has been carried out, to enable such person to meet the initial

costs of administering such area or to acquire, install, provide and maintain essential

services in such area or for both such purposes;

(ii) borrow moneys for any of the purposes mentioned in this subsection;

(n) on such terms and conditions as he may think fit-

(i) acquire assets from the State, a local authority or any corporate body

or fund established by or in terms of any enactment for special purposes; and

(ii) accept responsibility for liabilities in connection with assets referred

to in subparagraph (i);

(o) on such terms and conditions as he may think fit, dispose of assets and

liabilities to the State, a local authority or any corporate body or fund established by

or in terms of any enactment for special purposes;

(p) with the consent of the Minister responsible for finance, waive the

recovery of any debt owed by a local authority or any corporate body or fund

established by or in terms of any enactment for special purposes;

(q) subject to subsection (2), forestall or avoid the sale in execution of any

dwelling by assuming and additionally, or alternatively, settling, on such terms and

conditions as he thinks fit, obligations which the owner or occupier of the dwelling

has incurred under any contract or by virtue of any judgment.

(2) The powers conferred on the Minister by paragraph (q) of subsection (1) may be

exercised only where he is satisfied that-

(a) the sale in execution of the dwelling concerned will cause undue

hardship to the owner or occupier of the dwelling; and

(b) the owner or occupier of the dwelling concerned-

(i) does not own any other immovable property in an urban area; and

(ii) does not own any single item of movable property the value of which

exceed fifty thousand dollars;

and

(c) the debt or obligation which gave rise to the threatened sale in

execution of the dwelling concerned-

(i) was incurred for the purpose of purchasing or building the dwelling;

and

(ii) was not incurred through negligence or improper conduct on the part

of the dwelling's owner or occupier;

and, in deciding whether or not to exercise those powers, the Minister

shall take into account the amount of the debt or other obligation, the extent to whichit has been paid or otherwise discharged, the debtor's ability and willingness to pay or

discharge it, and all other relevant circumstances of the case.

(3) For the purposes of this section-

"essential services" includes recreational and educational amenities, roads, water,

light, rubbish removal, sewerage and such other services as the Minister may specify

for the purposes of this section;

"flat" includes such services as may be approved by the Minister;

"scheme" means a proposal for the construction of dwellings and other buildings and

the provision of essential services.

16 Transfer of money to another fund

The Minister may, whenever be considers it expedient to do so, after consultation

with the Minister responsible for finance, transfer such sum as may be agreed upon

by them from the National Housing Fund to the Housing and Guarantee Fund.

17 Application of National Housing Fund

(1) The moneys of the National Housing Fund may be applied towards-

(a) any of the purposes set out in section fifteen;

(b) any decrease in the value of any asset of the Fund;

(c) any matter incidental to any of the foregoing.

(2) The following expenditure losses and liabilities shall be charged to and discharged

from the National Housing Fund-

(a) any losses incurred in the realization of any asset of the Fund;

(b) any moneys or assets transferred to the Housing and Guarantee Fund

under section sixteen;

(c) any expenditure, loss or liability lawfully appertaining to the Fund.

PART V

RATES FUNDS

18 Establishment of rates funds

(1) Notwithstanding anything to the contrary contained in the Audit and Exchequer

Act [Chapter 22:03], where the Minister uses moneys from the National Housing

Fund for any of the purposes mentioned in paragraph (a) of subsection (1) of section

fifteen in a declared area referred to in subsection (2) he shall, subject to the

provisions of this section, establish a rates fund for such area which shall vest in him

and of which he shall, subject to the provisions of this Act, have sole management.

(2) The Minister may, by statutory instrument, declare any area to be a declared area

for the purposes of this Part.

(3) Notwithstanding subsection (1) the Minister may establish a central rates fund for

several declared areas which he considers are not sufficiently viable to have separate

rates funds, in which event such fund shall be vested in him and he shall, subject to

this Act, have sole management thereof.

(4) The Minister may at any time declare that any declared area which is associated

with a central rates fund shall cease to be so associated with effect from such date as

he may specify whereupon the Minister shall establish a rates fund specifically for

such area and subsection (1) shall apply, mutatis mutandis.

19 Application of rates funds

(1) A rates fund shall consist of-

(a) moneys appropriated for the purpose by Act of Parliament;

(b) rates, fees, rents, charges and any other revenue of any kind

whatsoever derived in respect of occupation or residence in the declared area

concerned;

(c) licence and other fees accruing under any enactment to the declared

area concerned; (d) grants, contributions or advances made from controlled liquor moneys

under the Traditional Beer Act [Chapter 14:24];

(e) gifts, contributions, donations, subscriptions and bequests made to the

declared area concerned;

( f ) moneys received in respect of charges made for the use or occupation

of State land in the declared area concerned;

(g) loans or grants from the National Housing Fund;

(h) income from investments;

(i) any other moneys to which the rates fund may become entitled.

(2) A rates fund shall be chargeable only with-

(a) costs in connection with supervising and administering the declared

area concerned and the costs of providing, developing and maintaining essential

services or any other services for the benefit or the welfare of the occupants or

residents of such declared area;

(b) costs in connection with the acquisition or construction of buildings

for any of the purposes mentioned in paragraph (a), and the maintenance of such

buildings;

(c) costs in connection with the maintenance of buildings in the declared

area concerned whose costs of construction are chargeable to the National Housing

Fund:

Provided that any costs so paid shall be recoverable by the rates fund

from the National Housing Fund;

(d) any expenditure, loss or liability lawfully appertaining to the fund;

(e) such other costs as may be prescribed:

Provided that moneys received under paragraph (g) of subsection (1) shall be applied

only to such of the foregoing costs as the Minister may approve or, if he so thinks fit,

prescribe.

20 Moneys may be held in rates fund on behalf of National Housing Fund

Notwithstanding anything to the contrary contained in this Part, moneys referred to in

paragraph (b) of subsection (2) of section fourteen which are owing to the National

Housing Fund may be paid into a rates fund and held temporarily in that fund on

behalf of the National Housing Fund:

Provided that such moneys shall thereafter be paid to the National Housing Fund in

accordance with the directions of the Minister.

21 Dissolution of rates fund

(1) Where a rates fund has been established in respect of a declared area and-

(a) the control and management of such declared area subsequently

becomes vested in a local authority; or

(b) such declared area is established as the area of a local authority;

such rates fund shall be dissolved, and the assets thereof distributed, in accordance

with the directions of the Minister.

(2) Where a declared area which is associated with the central rates fund ceases to be

associated with the central rates fund the Minister may distribute in such manner as

he thinks fit, moneys which in his opinion constitute the interest of that declared area

in the central rates fund.

PART VI

RENT CONTROL

22 Application

This Part shall apply in relation to domestic premises and any other premises which

are not subject to the Commercial Premises (Lease Control) Act [Chapter 14:04].

23 Rent boards and Rent Appeal board (1) The Minister may, by statutory instrument, constitute so many boards, to be

known as rent boards, as he may consider necessary, with such areas of jurisdiction as

he may specify.

(2) Every rent board shall consist of a chairman and such other members as the

Minister considers necessary.

(3) The members of a rent board shall be appointed on such terms and conditions as

the Minister may fix for members or classes of members generally and shall be paid

such remuneration and allowances, if any, out of moneys appropriated for the purpose

by Act of Parliament as the Minister, with the approval of the Minister responsible for

finance, may fix.

24 Rent regulations

(1) The Minister may make such regulations as he may consider necessary for the

purpose of-

(a) prescribing the functions, powers and procedure of rent boards and

providing for appeals from decisions thereof to the Administrative Court and, more

particularly-

(i) giving every rent board power, whether on behalf of the parties to the

proceedings or of its own motion, to summon witnesses and call for the production of

documents and to hear evidence under oath;

(ii) giving every rent board and the Administrative Court power to inspect

immovable property;

(iii) prescribing penalties for contempt of a rent board and for the giving

of false evidence in any proceedings thereof;

(b) notwithstanding anything in the common law, controlling the letting

and hiring of any immovable property and the rents charged therefor, and regulating

and restricting the powers of the courts to make orders of ejectment against lessees of

immovable property, and, more particularly-

(i) prescribing fees for any application made to a rent board or any

authority appointed to carry out any function under such regulations;

(ii) prescribing charges for acts done or services performed under such

regulations;

(iii) restricting or suspending the rights under the common law of lessors

of immovable property, including rights relating to leases entered into before the

coming into operation of such regulations;

(iv) specifying the maximum percentage return on the current market

value of immovable property which a lessor may receive as rent in respect of the

property after allowing for-

A. the amount expended by the lessor in supplying electric current, water,

fuel, sanitary or other services and amenities and in meeting the cost of rates in

respect of the property;

B. the amount expended by the lessor in meeting the cost of insurance

premiums in respect of the property, its equipment, furniture and other contents;

C. the cost to the lessor in respect of maintenance and cleaning of the

property, its equipment, furniture and other contents;

D. the amount of collection charges;

E. the cost to the lessor in respect of the caretaking of the property, its

equipment and contents and the upkeep of the grounds;

F. any amount expended by the lessor on the provision of furniture and

equipment in respect of the property;

(v) restricting the grounds upon which persons may refuse to let, or the

conditions subject to which persons may let, immovable property; (vi) prescribing penalties for contraventions of such regulations.

(2) Before making regulations for the purposes of subparagraph (iv) of paragraph (b)

of subsection (1), the Minister shall consult the Minister responsible for finance.

(3) In making regulations under subsection (1) the Minister shall have regard to the

interests of both lessors and lessees.

(4) No penalty prescribed by regulations made under subsection (1) shall exceed a

fine of level five or imprisonment for a period of six months or both such fine and

imprisonment.

[amended by Act 22 of 2001 with effect from the 10th September, 2002.]

(5) For the purposes of subsection (1), "letting" and "lease" include sub-letting and

sub-lease, respectively.

PART VII

GENERAL

25 Interpretation

In this Part-

"Fund" means-

(a) the Housing and Guarantee Fund;

(b) the National Housing Fund;

(c) any rates fund.

26 Holding of Funds

(1) All moneys received by the Minister on behalf of any Fund shall be paid into the

banking account of such Fund, and no money shall be withdrawn from any such

account except by means of cheques signed by such person or persons as may be

specially authorized thereto by the Minister.

(2) Surplus moneys in any Fund which are not immediately required for any of the

purposes to which the moneys in that Fund may under this Act be applied may be

held in investments approved by the Minister after consultation with the Minister

responsible for finance.

27 Accounts and audit

(1) The Minister shall, in respect of each Fund, cause to be kept proper books of

account, and other books and records in relation thereto, in which shall be recorded

all the financial transactions of the Fund.

(2) The accounts of each Fund shall be audited by the Comptroller and Auditor-

General, who shall have all the powers conferred upon him by the Audit and

Exchequer Act [Chapter 22:03].

28 Powers of entry and inspection

(1) Any person generally or specially authorized thereto by the Minister may at any

reasonable hour in the day-time after reasonable notice given to the occupier thereof,

if any, enter upon any-

(a) dwelling or building which has been acquired or erected, or land

which has been acquired, or any dwelling, building or land the lease of which has

been acquired, by means of a loan for which a guarantee has been given under this

Act, while such guarantee remains in force;

(b) dwelling, building or land which has been acquired by means of an

advance made under paragraph (k) of subsection (1) of section fifteen while any

amount of such advance is owing to the National Housing Fund;

(c) dwelling or other building which has been let by the Minister under

this Act;

(d) dwelling or other building which has been sold by the Minister under

this Act and in respect of which any amount is owing to a Fund;

(e) land on which a scheme mentioned in section fifteen is being carriedout;

( f ) dwelling or other building or other works forming part of any such

scheme;

(g) building or works forming part of any essential service mentioned in

section fifteen and in respect of which any amount is owing to a Fund;

to make any inspection or to perform any work or do anything which may reasonably

be necessary or which is provided for in any agreement entered into with the Minister

or has been included in any conditions imposed by the Minister under this Act.

(2) Any person who fails to give or refuses access to any person mentioned in

subsection (1) or obstructs or hinders him in the lawful exercise of the powers

conferred upon him by this section shall be guilty of an offence and liable to a fine

not exceeding one hundred dollars or to imprisonment for a period not exceeding six

months or to both such fine and such imprisonment.

29 Remedy of Minister against defaulting mortgagors

(1) In respect of any mortgage of immovable property in favour of the Minister

entered into on or after the 1st November, 1963, if-

(a) any sum of money, whether principal or interest, due in terms of the

mortgage is unpaid three months after the date upon which payment was due; or

(b) there is a breach of any other term or condition of the mortgage; or

(c) the property is attached in pursuance of a judgment of a competent

court;

the Minister may, by any person authorized by him in writing-

(i) after written notice of the prescribed period and in the prescribed

manner has been given to the mortgagor and without recourse to a court of law, enter

upon and take possession of the property and sell it by public auction or by inviting

tenders:

Provided that in the circumstances mentioned in paragraph (c)

the Minister may so enter upon, take possession of and sell the property without

giving such notice; and

(ii) transfer the property to the purchaser and give a good and valid title to

the property:

Provided that no such sale shall take place until it has been advertised in the manner

prescribed.

(2) Any person having an interest in such sale may within one month of such sale

apply to the Administrative Court to have it set aside on the ground that it was

improperly conducted or the property was sold for an unreasonably low sum or any

other good grounds, and that court may thereupon make such order as it considers fit.

(3) The surplus, if any, of the proceeds of such sale after payment of any claim which

in insolvency would rank in preference to the claim of the Minister and after payment

of all amounts owing to the Minister and any costs incurred by him shall be paid-

(a) if the property is subject to a mortgage in favour of a person other than

the Minister, to such person upon production of evidence as to the amount owing

thereunder:

Provided that no such payment shall be made until at least

seven days' notice thereof has been given to the mortgagor in the prescribed manner,

and if the mortgagor objects to the amount being so paid, the surplus shall be

transmitted to the Guardian's Fund for payment to the person entitled thereto;

(b) in the case of property referred to in paragraph (c) of subsection (1), to

the Sheriff;

(c) in all other cases, to the mortgagor or his legal representative.

(4) For the purposes of subparagraph (ii) of subsection (1), should the title deed of the

property concerned be lost or otherwise unobtainable, then, upon application by the

Minister, after advertisement has been made in the manner provided under the Deeds

Registries Act [Chapter 20:05], the Registrar of Deeds shall, if he is satisfied that no

good reason to the contrary exists, issue to the Minister a certified copy to take the

place of such deed.

30 Financial year

The financial year of each Fund shall end on the 30th June in each year.

31 Regulations

The Minister may make-

(a) regulations as to all matters which by this Act are required or

permitted to be prescribed; and

(b) such regulations as to him seem necessary or expedient for the

carrying out of the objects and purposes of this Act or for its proper administration.

32 Registration of immovable property

(1) Any immovable property acquired by the Minister under the powers conferred

upon him by this Act shall be registered in the name of the Minister holding such

property on behalf of the Fund concerned.

(2) In respect of such property the Registrar of Deeds shall make all the necessary

endorsements on the title deeds and in his register, and no stamp duty, fee of office or

other charge shall be payable in respect of anything done by the Registrar of Deeds in

terms of this subsection.

33 Liquor licence not to be issued to boarding-house in respect of which a

guarantee is in force

Notwithstanding anything to the contrary contained in the Liquor Act [Chapter

14:12], no licence for the sale of liquor shall be granted under that Act in respect of

any boarding-house in respect of which any amount has been guaranteed under

subsection (1) of section four until the guarantee has been extinguished.

34 Savings in respect of changes of areas

Notwithstanding this Act, a change in the area for which powers connected with any

Fund may be exercised, whether such change has been effected by reason of any

amendment to this Act or otherwise, shall not affect the previous exercise of that

power in relation to the area concerned and that power may continue to be exercised

in respect of the area concerned.