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Why do housing developments, like estates, need a council to represent them at the government level? We have ARC. They advocate for the industry, they educate and provide information, they create networking opportunities and offer standards and accreditations that are in the best interest of the industry
So, what ignited the formation of the RCC back in 2015?
One could say a tsunami of homeowner conflict triggered the formation of CSOS and a wave of new regulations needed to be included in the procedures that govern estates.
It became more apparent that HOAs would not only have to offer safe living, but secure and manage utilities, refuse removal and other basic needs. The size and volume of homes within new mega estates, which were on the rise at that time, shifted what was individual gated communities into suburbs and mixed-use precincts – and it is in this rapid development that the need for a unified council was identified.
Having representation in local government can help communities navigate the complex policy and regulatory landscape, address community concerns, access resources, and build relationships with key stakeholders.
Although the council membership strategy is to have a large base, the most important factor in ensuring fair representation of an industry is not the percentage of membership, but rather the diversity and inclusivity of the council’s membership, as well as its commitment to transparent and inclusive decision-making processes.
Set out below are the vision and objectives of the RCC.
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ABREVIATIONS
RCI (Residential Community Industry encompassing ALL types of gated community schemes)
RCC (Residential Community Council)
RWC (Regional Working Committee)
Vision
The RCC will formulate, deliberate and express the united voice and be the representative body of the Residential Community Industry (RCI), including all aspects in respect of the interaction between the industry and government (whether national, provincial or local), or any other statutory bodies, as well as interaction with any other public or private individual, entity or institution with regard to matters that may be of concern or interest to the RCI or RCC.
How we operate
The RCC will establish, regulate, and sustain the National Working Committee and Regional Working Committees on behalf of its members throughout the industry, to carry out the functions identified by the members as being consistent with those of a self-regulating and governing industry. These Regional Working Committees, which are made up of community/estate management corps in various regions, will nominate one of their respective members to serve on the board of the RCC. With the increase in poor service delivery and sound governance in municipalities, the Regional Working Committees of the RCC have become highly instrumental in dealing with issues that have a negative impact on gated communities in the region of the respective RWC.
Our RWCs currently are Gauteng East and South, Gauteng Pretoria, Gauteng Central and West, North West and Northern Cape, Western Cape, Eastern and Southern Cape, Mpumalanga, and Limpopo, as well as ARC and CAISA (Community Association Institue of South Africa).
The RCC as an NPC is represented nationally at the yearly ARC conference where it holds information sessions with members.
Representation
The RCC will also ensure the effective representation of government at all levels, as well as civil society, as the single voice of the RCI, and establish and implement appropriate policy frameworks and policies for the RCI.
Essentially, when we as an industry need to make representation to any level of government on specific issues, make comment on proposed legislation, or join any legal matters, this will be channeled through the RCC as the industry representative body and voice.
Membership of the RCC
The current membership stands at 188 communities. For the RCC to grow into a body that can with ease and authority represent its members and be recognised as an important role player and influencer in local and national legislation that is fair and serves all equally, it is highly recommended that all current and new ARC members become members of the RCC. RCC membership fees are used to carry out its objectives. Membership is currently only linked to being a member of ARC (Association of Residential Communities), and the RCC, in conjunction with ARC, is exploring alternative ways for membership.
What is happening
During recent times, our industry has intervened in matters where the implications of these going wrong would have had a negative impact on all members of the RCI. Success in these matters would not have been possible unless we stood together as an industry, specifically in the collective funding of these. It is imperative that estate stakeholders are educated around potential risks so that additional funding is available if necessary.
This was evident in an SCA judgment between an owner and Mount Edgecombe Estate 2, where we were granted amicus by the courts. Regrettably, fewer than 20 estates contributed to the costs of this and yet this judgment, which was based largely on the evidence presented by amicus, benefited every estate around the country.
The RCC has obtained an opinion on how the PPA may affect the Residential Community Industry and the HOA.
The RCC has, together with IACT-Africa, negotiated a self-help online toolkit for POPI implementation at estates. We have also contracted with IACT to draft an RCC Code of Conduct for POPIA.
The RCC interacted with the PPRA (Property Practitioners Regulating Authority) after the latest communication of the PPRA (Undesirable Practices – Arrangements) to pay ‘accreditation’ fees. We responded to the letter, and our response is available on our website. We interacted at length with the PPRA in a virtual meeting and undertook to create a better working relationship.
The RCC will play an influencing role on the latest changes to the CSOS Act where the CSOS is proposing to expand their mandate from an ombud service to a regulatory body. It is clear that the CSOS is trying to ignore warnings from the industry that they are haphazard when including HOAs under the Sectional Title Schemes Act and do not want to or are simply refusing to recognise that HOAs are in fact governed under the Companies Act. The latest move seems to want to restrict gated communities’ self-governance with impunity. The RCC is taking a serious and close look at this and will enter the arena for its members. This is why we need our membership to grow exponentially.
Standing together
Two other important matters that were successful, based on our standing together, were the clearance certificate matter, where, with NAMA, we were amicus in the High Court, and the income tax practice note from SARS in the matter of charging tax on building penalties, rather than regarding this as the same as normal levies.
That is why the RCC and its structures work in close collaboration with industry role players such as ARC, Estate Living and CAISA.
The RCC is also exploring the establishment of an Institute of Estate Managers (IEMSA) within its structures, which will be staffed by professionals in the legal, legislative, and human capital environments. As we grow, the work grows and cannot for much longer be carried out by estate managers who are full-time employees of HOAs, and who serve on the board of the RCC, as they understandably have their own work responsibilities in their own environments.
An important reason for the establishment of the RCC is to facilitate, as an industry body, the intervention in legal matters as well as influencing legislation affecting the industry. To this end, the RCC is exploring, as a start, the opening of a national office with an administrator to handle day-to-day affairs. Growing membership and demands in the industry on all the structures, including ARC, Estate Living, and CAISA, will determine how we grow a proposed national office.
Five-year vision and beyond
It is evident that huge strides are being taken to curtail self-governing and regulating communities as these are perceived as being a threat to the governance by local and national governments. However, the emergence of gated community self-governing and regulating establishments is growing at an astonishing rate in South Africa, mostly because of inept government and local government structures, deteriorating safety issues and extremely poor service delivery. In gated communities that govern and regulate themselves – within the confines of their respective Acts – there is a notable difference where service delivery, safety and prosperity is a guarantee.
This industry has momentum and will not be curtailed, because it is what residents require. The RCC will form part of this growth and endeavour to ensure that haphazard regulation intended to jeopardise and curtail this tsunami be challenged in an organised, mature, responsible, transparent and proper manner under the law.
