Committee Supports PPRA Court Action Against Counter Transformative Trend of HOA Charging

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The Portfolio Committee on Human Settlements highlighted its support in a court action brought by the Residential Communities’ Council (RCC) and the Association of Residential Communities (ARC) against the Property Practitioners Regulatory Authority (PPRA) challenging regulation 35 of the Property Practitioners Act.

The court action seeks an order declaring that charging estate agents fees to market and/or sell property within these estates does not constitute an undesirable business practice.

The Chairperson of the committee, Mr Nocks Seabi, said: “We cannot continue to play lip service to the issue of transformation within the property practitioners environment and the continued charging of these fees runs counter to the transformation agenda intended by the passing of the Property Practitioners Act. The committee was also of the view that these estate agents’ fees effectively excludes or disadvantages property practitioners not party to these arrangements from proving services within such property developments,”

In line with the drive to ensure transformation within the real estate sector, the committee welcomed the public private collaboration between PPRA and Rawson Property Group that saw the awarding of 100 franchises to previously disadvantaged individuals. The committee is of the view that PPRA must leverage expertise and resources through such partnerships to accelerate progress towards complete transformation of the sector.

The committee also welcomed the general improvement in attainment of performance targets at PPRA. The entity improved its performance from 33% in the 2022/23 financial year to 66,67% in the 2023/24 financial year. Despite this, the committee urged the entity to resolve the matters of emphasis as identified by the auditor general and to ensure a positive audit outcome.

Meanwhile, the committee welcomed the unqualified audit opinion achieved by the Housing Development Agency as well as the achievement of 91% of its planned performance targets for the 2023/24 financial year. The remarkable turnaround at the HDA should be appreciated especially the reduction of irregular expenditure by over 90% of the financial year. “The commitment to good governance practices and strong internal controls are the bedrock upon which a functional entity rests upon,” Mr Seabi said.

The committee also welcomed the over achievements in the performance that includes the acquiring of 316 2926 hectares of land for housing purposes, delivery of 2142 serviced sites (against the target 1236) and 2402 title deeds.

With regards to the Social Housing Regulatory Authority (SHRA), the committee welcomed the attainment of an unqualified audit for the 2023/24 financial year, it raised concerns that of the 9 targets not achieved, a majority of the targets related to issues of transformation. Although the committee acknowledged the strides made by SHRA to facilitate the transformation agenda, it has called for maximised collaboration with stakeholders to ensure that the capacitation workshops be held to improve procurement within designated groups.

Despite this, the committee appreciated that the entity is already hard at work to address audit findings to ensure that the entity returns to previous positive findings.

The committee will continue to monitor the effectiveness of entities within the sector to ensure that they achieve set targets and ensure quality service delivery to the people.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.