Consternation amongst developers

THE new Code of Conduct for Home Builders published by The National Home Builders Registration Council (NHBRC) is aimed at the smaller home builder, against whom most protection is needed. But it is also applicable to larger residential developers developing and selling residential dwellings whether freehold or sectional title. This is causing much consternation amongst bigger role players.

“The aim of the Code is the protection of the housing consumer which is clearly needed, and if the Code is strictly adhered to, there is no doubt that consumers will be far better off. The Code is comprehensive and in seeking to address a vast number of issues, contains many quite onerous provisions for the home builder to comply with,” says David Warmback of Shepstone & Wylie Attorneys.

However, he cautions that in an industry which historically has a poor reputation for protecting consumers, particularly in the lower end of the market, it is anticipated that it will take some time before the industry is able to properly embrace the good intentions behind the Code, which came into effect recently.

He highlights some of the significant provisions in the new Code as follows:

• home building contracts may now only be concluded once the housing consumer has had 30 calendar days to view the contract;

• restrictions on clauses in contracts which have the effect of taking away consumers common law or statutory rights;

• restricting deposits to no more than 10% of a contract price of a fixed cost building contract;

• minimum clauses that must be included in a building contract, and an obligation that a home builder must retain a copy of the contract and all records relating thereto, for a period of at least six years;

• a home builder may not accept final payment under a building contract unless the bank, NHBRC or competent person has certified in writing that the work has been completed according to NHBRC’s prescribed minimum standards and guidelines.

In summary, the Code is intended to provide minimum standards to be maintained by all NHBRC home builders when contracting with consumers, says Warmback.

“Banks are not allowed under the Act to lend money to consumers against the security of a mortgage bond registered over a home for the purchase of a home from a home builder,” explains Warmback. “That is, unless the bank is satisfied that the home builder is registered in terms of the Act, that the home is or will be enrolled with the NHBRC and that the prescribed fees have been paid.” (Read More...)

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Gauteng to work towards promoting social integration

Johannesburg - The Department of Housing will work towards promoting social integration across class as well as between racial groups, said Gauteng Housing MEC Nomvula Mokonyane.

Tabling her R2.6 billion budget vote on Friday at the provincial legislature she said this will be done through the introduction of inclusionary policy.

The policy would require developers of the up market estates to set aside a certain percentage of their housing development to low-cost housing for low-income groups.

"The inclusionary policy is attempting among other things to address the apartheid spatial designs which created arid reserves for one group and plush suburbia for the other, this can be addressed through Mixed-Housing Development programme," said MEC Mokonyane.

Under the Mixed-Housing Development the department has identified flagship projects for each region in Gauteng where there is ongoing work which is at different phases and stages of construction.

"This is the type of commitment we have made and we would like to be judged on," she said.

"Other projects such as Thorn three View and Nelmapius are also on track with houses already constructed and ready for occupation.

"In Doornkop the housing development will consist of about 25 000 different housing units for various income groups," added Ms Mokonyane.

The housing products intended for the project, she said, included fully subsidised housing for the poorest of the poor, affordable housing for other low-middle income households and middle - to - high bonded housing stock.

In Mogale City, the department in partnership with Absa bank has identified a project in Kagiso/Azzadville where they will develop mixed housing with 6 800 different housing units.

Ms Mokonyane also announced that as part of her department's youth empowerment programme, ten youth companies within the housing and construction industry would be awarded contracts to build houses.

"The youth will be taken through the Empowerment Programme so that they become established developers in their own right.

"The department will be enrolling one hundred young people for training in construction, financial management and project management".

This, she explained would be done jointly with Gauteng Youth Commission and Umsobomvu with the National Home Builders Registration Council (NHBRC) providing the technical assistance and training. (Read More...)

By Bongani Mlangeni; tel: (012) 314 2404
BuaNews

Youth to benefit from R24 million housing project

Hammaskraal - Young people will be empowered through a R24 million housing project which will see 600 houses built by two youth-owned construction companies, appointed by the Gauteng Department of Housing.

Apart from this, the department will be enrolling 100 young people for training in construction, financial management and project management.

This would be done jointly with the Gauteng Youth Commission and Umsobomvu with the National Home Builders Registration Council (NHBRC) providing the technical assistance and training. (Read More...)

By Bongani Mlangeni; tel: (012) 314 2404
BuaNews

Clash over EC homes project

Builders working under the People's Housing Process were not required to be registered with the National Home Builders' Registration Council (NHBRC). (Read More...)

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