HOUSING AND BUILDING ACT: Chapter 22:07.

Table of Contents

    Table of Contents

      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.

      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 to
      any 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 which
      it 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 fund.

      (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 AuditorGeneral, 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 carried
      out;
      ( 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.