SharedLiving. Featuring. Quarter Two Performance Information. Safety and security. Issue 1. Message from the Chief Ombud Adv.

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1 SharedLiving Issue 1 Featuring Message from the Chief Ombud Adv. Seeng Letele Quarter Two Performance Information Safety and security during the festive season Service Excellence, Transparency, Integrity Innovation, Fairness, Independence Web:

2 Gedeel Lewe Ukuhlalisana Tamisana Ho Dulisana Mmoho Contents Chief Ombud Foreword Introducing the CSOS s Performance Information for Quarter 2 of 217 and practice directives on dispute resolution and waiver of fees and levies. Gated community complexes Advice on keeping your community scheme safe this festive season. Quarter Two Performance Information Urban Densification in South Africa A case for community scheme as viable tenure options. CSOS out and about Nama Indaba 217 CSOS National Roadshow CSOS Heritage Day Key Contacts How and where to find us.

3 Message from the Chief Ombud, Adv. Seeng Letele CSOS can assist. The Community Schemes Ombud Service (CSOS) is the Regulator and Ombud for all sectional title development schemes, home or property owners associations, housing schemes for retired persons, share block companies, and housing cooperatives. It is my pleasure to bring to you the first of our quarterly industry updates, SharedLiving, the official CSOS e-magazine. This magazine will feature our performance information, which up to now we have only reported on to our shareholder, the Department of Human Settlements and Parliament s Portfolio Committee on Human Settlements. As a demonstration of our values for Integrity, Transparency and Service Excellence, I felt it important that we share this information with you and industry at large. Starting in 217, the CSOS embarked on a nationwide stakeholder roadshow to create awareness of the CSOS Service and to assist community schemes with their registration and submission of governance documents to the CSOS. One of the messages we are emphasising at the roadshow is that the CSOS is calling on all community schemes that have not registered to do so by 3 March 218, failing which penalties may be applied. The roadshow will culminate on the 14th of November 217, see page 6 for the full roadshow program. I would like to bring to your attention that at the end of October 217, I will be issuing Practice Directives in respect of our dispute resolution model and the waiver of fees and levies for certain category of persons. The objective of the Practice Directives is to provide further information on the procedures and content requirements for applications for dispute resolution and waivers of fees and levies. The Practice Directives, in themselves, do not supersede or override the requirements of the CSOS Act. One of questions I am often asked at the roadshow is our turnaround times for acknowledging an application for dispute resolution. I assure you that all s received by CSOS for dispute resolution will receive an automated acknowledging receipt. After careful assessment, a formal written response will be sent to the applicant within 1 days of receipt of the application, informing him whether the applicant is rejected or accepted. I trust you will enjoy our quarterly updates and safe travels in the upcoming festive season. Established in terms of the Community Schemes Ombud Service Act, 211 (Act 9 of 211) to regulate the conduct of parties within community schemes and to ensure their good governance, the CSOS is also mandated to manage the prescripts of the Sectional Titles Schemes Management Act, 211 (Act 8 of 211). The CSOS calls on all executive committees and those in the management of community schemes (as defined by the Act,) to register with the CSOS by 3 March 218. Community scheme registration is free and forms can be found on For more information contact Gauteng: 63 Wierda Road East, Sandton Tel: KwaZulu-Natal: 7th Floor Aquasky Towers, 275 Anton Lambede Street, Durban Tel: Western Cape: 8th Floor Constitution House, 124 Adderly Street, Cape Town Tel:

4 Gated community complexes INVITATION TO ATTEND PUBLIC ENGAGEMENT SESSIONS Achieving safety and security during the festive season The Community Schemes Ombud Service (CSOS) is undertaking a national roadshow to bring its Service closer to property owners and those in the management of community schemes. In each session, the CSOS will be assisting in the registration of community schemes, accepting applications for dispute resolution and will be clarifying any issues in respect of submission of annual returns and general governance of schemes. The festive season is sneaking up on us again. This is our time to celebrate and take a break from the mundane realities of everyday life. But not all is rosy during this period crime will handicap peace of mind for many. For crime syndicates the festive season blooms like a Christmas tree on amphetamine. This is indeed their time to be jolly. Our safety and security starts and ends with us, and not the police or security companies. In anticipation of the coming festive season, here s some advice for sectional title and other community schemes to keep safe this festive season. During this period you need to be more vigilant and more aware of your surroundings. Also be quick to report any suspicious behaviour. Always keep doors and gates locked and double check your burglar proofing. Sliding doors can be secured simply by placing a piece of timber cut to size in the sliding rail to ensure they can t be lifted. Make sure your alarm system has been serviced and works properly (especially with summer thunderstorms wreaking such havoc). Also note, in the event of a burglary, insurance companies will question whether your alarm was properly maintained. When not home, arm your alarm at all times as well as during the night when you re asleep, and ensure your security cameras and motion sensors are not obstructed. Make sure that some lights are switched on at night and all lights are off during the day, especially those outside. Note that spotlights with motion sensors can act as a deterrent for would-be burglars. Do not leave ladders, spades or tools outside, as they can be used to break into your house. Be on high alert when exiting or entering your complex. These days robbers even gain entry into a complex by tailgating cars or holding up security guards. Be especially smart about seasonal employees. Maybe make sure they only have access to the areas where they need to work and only during the hours when you require them. Also don t leave your keys, smartphones, tablets, laptops or jewellery lying around. And when you do go on holiday... Tell your neighbours that you plan to do so and ask them to keep an eye on your property. Contact the security company and body corporate to let them know when you ll leave and when you ll return. Make sure that your home is on a timer switch and well lit at night. Arrange for your post to be picked up regularly to avoid accumulation, as this is a dead giveaway that people are not home for an extended period. Now is also a good time to discuss the neighbourhood crime prevention contingencies with your local police, private security companies and community policing forums. Only through greater community involvement can stronger local support structures be built. Finally, and while on holiday, don t assume the place you re staying in is crime-free. Always remain on guard, as you would at home. Happy Holidays! If you have any questions this is your opportunity to engage with the CSOS. Start Times: 9: Date Province / City Venue North West Potchefstroom Kumkani Country Lodge, 37 Parys Avenue Free State Bloemfontein President Hotel, Frans Kelynhans Road, Groenvlei Northern Cape Kimberly Protea Hotel, The Kimberly Big Hole, W Circular Hole 3 October 217 Eastern Cape Port Elizabeth GC Kings Beach, Le Roche Drive, Humewood 19 October 217 Western Cape Cape Town Bridgeways Century City, Century City Road 31 October 217 KwaZulu-Natal Durban Olive Convention Centre, 81 Somtseu Road North Beach 7 November 217 Mpumalanga Nelspruit Nelspruit Hotel Conference Centre, 35A C/O Paul Kruger & Andersen Street 1 November 217 Limpopo Polokwane Limpopo Guest Manor, 48 Devenish Street 14 November 217 Gauteng Johannesburg North Gallagher Convention Centre, Richards Drive, Midrand For enquiries, contact Wanda Lubelwana, tel. (1) or wanda.lubelwana@csos.org.za For more information, please visit the CSOS website

5 Performance Information for the Period 217 (Quarter 2) Draft subject to CSOS Board approval/amendment SECTION A: APPLICATIONS FOR DISPUTE RESOLUTION REGIONAL OFFICES COVERAGE Applications for dispute resolution are handled in three Regional Offices namely, Gauteng, Kwa Zulu-Natal and Western Cape. Total Gauteng KwaZulu-Natal Western Cape GRAND TOTAL 82 Number per Province GP KZN WC GENDER The number of applicants per gender, who submitted applications for dispute resolution, is depicted in the table, and diagram below, per month for the second quarter (,, and 217) Total Male Female Unknown Number RACE Male Female Unknown Total Black White Coloured Indian Other MODE OF CONTACT Applications for dispute resolution are received through , walk-ins, and post. For quarter 2, the average case load per conciliator/investigator is 91. Total Walk-In Post GRAND TOTAL 82 Number per race category Black White Coloured Indian Unknown Other AGE ANALYSIS Number per mode of contact Walk-in Number years 2-25 years 25-3 years 3-35 years 35-4 years 4-45 years 45-5 years Over 5 years Not Specified

6 TYPE OF SCHEME Section Title Development Scheme Total Share Block Company Home Owners Association Housing Scheme for Retired Persons Housing Co-operative Other Number per race category SECTION B: GOVERNANCE OF SCHEMES Withdrawn Settled by parties Rejection (Non-Jurisdiction, Referral) Referral to Adjudication Conciliation Adjudication No further particulars Other CLASSIFICATION (S39 OF THE CSOS ACT, NO 9 OF 211) REGISTRATION OF COMMUNITY SCHEMES The number of community scheme registered to date stands at 3. Representing an estimated 2% of the market Total Financial Issues Behavioural Issues Governance Issues Meetings Issues Management Services Private and Common Areas General and Other Issues Not Clearly Defined Number of schemes GP WC KZN EC FS NW MP LP NC Provinces Number per classification FINALIZED MATTERS Financial Issues Behavoural Issues Total Withdrawn Settled by Parties Rejection (Non- Jurisdiction, Referral) Conciliation Referral to adjudication No Further Particulars Other Governance Issues Meetings Issues Management Issues Private & Common Areas General & Other Issues Not clearly defined SCHEMES GOVERNANCE DOCUMENTATION QUALITY ASSURANCE The CSOS provides quality assurance on all schemes governance documentation, particularly that which must be registered with the Deeds Office and existing schemes. The CSOS quality assured a total of 398 community scheme s documentation and a total of 21 certificates have been issued for new developments. APPLICATIONS FOR WAIVERS Most of the applications received for the Waiver of levies are from schemes for retired persons. The CSOS funding model included an assumption that 75% of persons living within a scheme for retired persons will not pay a levy. This prompted a need to draft a directive to waive certain category of persons living in retirement villages. This will be published shortly. ANNUAL RETURNS In terms of section 59(1) of the Act, all schemes must file annual returns 4 months after their financial year end. The annual returns must consist of the (Audited) Financial Statement and any amendment to the information submitted during the registration. During this quarter, CSOS received a total of 3643 Annual Returns from schemes.

7 Urban densification in South Africa Urban densification is a challenge faced by most burgeoning cities across the world. With the exception of a few governments addressing the issue (albeit on a minor scale) a more urgent global directive is needed one that supports and promotes a vertical densification lifestyle built on the pillar of communalism. It s estimated that the total area covered by the world s cities will triple over the coming four decades. One can only speculate on the effect this will have on our natural environment and the farmland that sustains an evergrowing human population. Upward, areal expansion and densification, as opposed to horizontal expansion, is today considered the only smart way forward. But South Africa is slow to catch on. Our new generation has inherited a reality where there s an inward flow of people into urban cores, and at a rather alarming rate since our democratisation in In the 196s less than half our population lived in urban areas; whilst today more than two-thirds do so. The thing is, land, and especially land that can be used for cultivation will in the near future become more and more precious; which to a great degree can be attributed to the trend of horizontal densification and expansion. Most our cities are similar to those of the rest of the world in their make-up. You have a core with business areas, industries and high-rise accommodation; then traditional areas where the affluent and middle classes live, then shack towns, townships, or township cities, then working class and affluent, gated communities all peppered around the core. These cities are sprawled thick over vast stretches of land. So much so that Johannesburg and Pretoria are now almost joined at the hip. In the not too distant future we can expect the same to happen between Durban and Pietermaritzburg; and even though they re more than 7 km apart. While strategies to upgrade informal settlements rather than building new houses on the peripheries, have until now been a feasible (and mostly failed) way to enhance densification, the future lies in compacting cities through localising and increasing density upwards. In South Africa s attempts at meeting the ever-growing needs of our blossoming cities, we need to accept and welcome the reality of vertical densification especially with endeavours to create affordable housing, high-value real estate, and with the overall development of civic infrastructures. In particular, when addressing the issue of low-cost housing for our poor communities, government, private developers and big corporate need to get with the times. Whilst vertical densification of the masses is globally seen as the best solution, it will only work if it s sponsored and with basic services (such as water, sewerage and electricity) running smoothly, and available at an affordable rate. Only then can attempts be made to mobilise people to embrace this way of living. Another area of concern is that South Africa has the 4th highest concentration of community schemes in the world. They re literally popping up all over, with city hubs always in relative close proximity. Again, they cover massive areas of land that can be put to better use. Take the north of Johannesburg for example. About 45 years ago areas such as Allen s Nek, Randpark Ridge, Constantia Kloof, Weltevreden Park, Radiokop, Panorama, Wilgeheuwel and Strubens Valley, were but stretches of farmland with a trading post here and there. The development boom transformed all these areas over a short period, and the trend has been peaking for more than a decade now. As we speak there must be at least 2 new gated community complexes being built in the already overcrowded Joburg North market. It s the same just about everywhere else in South Africa where there s a city. The big challenge lies with property developers preferring to build on undeveloped land on city peripheries to the complexities of regenerating already developed sites. This mindset, and the very liberty to just develop for gain, has to change. South Africa needs to learn to value its precious land. With South African cities growing at the kind of rate that made places like Tokyo, Sao Paulo and Seoul have populations the size of whole countries, dense high-rise living is the future. We might not be there yet, but at the current pace of land exploitation we ll get there much sooner than anticipated. Whatever the future order of how we live, one thing s for certain the rigid accommodation lines dividing the poor, middle and upper classes will blur. Let s hope things don t get too crowded with so many different cultures living in even closer proximity. Let s hope we find greater communality as more and more adopt a community scheme lifestyle.

8 CSOS on the Road / National the Office & our Heritage Day Nama Indaba 217

9 HEAD OFFICE 1st FLOOR, BUILDING A 63 WIERDA ROAD EAST SANDTON, JOHANNESBURG T: (+27 1) F: (+27 1) Website: COMPLAINTS 1. Gauteng, Limpopo and North West applications to gp-complaints@csos.org.za Contact (+27 1) Visit 1st Floor, 63 Wierda Road East, Sandton 2. KwaZulu-Natal, Free State and Mpumalanga applications to kzn-complaints@csos.org.za Contact (+27 1) Visit 7TH Floor Aquasky Towers, 275 Anton Lembede Street, Durban 3. Western Cape, Eastern Cape and Northern Cape applications to wc-complaints@csos.org.za Contact (+27 1) Visit 8TH Floor Constitution House, 124 Adderley Street, Cape Town COMMUNITY SCHEME REGISTRATION 1. Download and complete the CS1 Form at registration to registration@csos.org.za