NATIONAL HOUSING DEVELOPMENT AUTHORITY

Arrangement of Sections

1. Short title.

PART I

Establishment of the National Housing Development Authority

2. Establishment of the National Housing Development Authority.

3. Members of the Authority.

4. Objects of the Authority.

5. Powers and functions of the Authority.

PART II

Acquisition of Immovable Property and Sale of Land, Flats, Houses and other Living Accommodation Belonging to the Authority

6. Compulsory acquisition of land.

7. State property both movable and immovable to be made available to the Authority.

8. Right of alienation of land, flat, house or other living accommodation.

9. Restrictions as to purchase.

10. Repealed.

11. No action to lie in respect of the cancellation or determination of an instrument.

PART III

Members of the Authority

12. Disqualification from membership.

13. Resignation of appointed members of the Authority.

14. Powers of Minister to remove an appointed member.

15. Period of office of appointed member.

16. Eligibility for reappointment as appointed members.

17. Remuneration of members.

18. Period of office of Chairman.

19. Quorum.

20. Member to disclose interest to the Authority.

21. Acts not invalidated by reason of vacancy.

22. Seal of Authority.

PART IV

Officers and Servants of the Authority

23. General Manager of the Authority.

24. Appointment of owners and servants.

PART V

Finance

25. Fund of the Authority.

26. Borrowing powers of the Authority.

27. Government guarantee.

28. Transfer to the Authority of the assets and liabilities of the National Housing Fund.

29. Application of the provisions of the Public Corporations (Financial Control) Act.

PART VI

Provisions Applicable to Loans

30. Power of Authority to investigate purposes to which loan is applied.

31. Power of Authority to cancel the grant of a loan.

32. Power of Authority to require additional security or recall loan.

33. Change, reduction or release of security.

34. Permission of General Manager required under certain circumstances for alienation of security for a loan granted by the Authority.

35. In certain circumstances security for a loan granted by the Authority not to be seized or sold in execution of a decree which is not in favour of the General Manager.

36. Mode of repayment of loans.

37. Registered address of borrower.

38. Service of notice on borrower.

39. Priority of charge created by a loan made by the Authority.

40. Form of mortgage of land.

41. Default of payment.

42. Action by Authority where default is made.

43. Notification of errors in mortgage bonds and amendments of such bonds.

44. Appointment of manager to take possession of mortgaged land.

45. Procedure where manager is appointed.

46. Authorisation of sale of mortgaged land.

47. Where borrower is dead.

48. Notice of order of Authority to sell land.

49. Notice of sale.

50. Payment before sale.

51. Upset price.

52. Authority may bid for and purchase property mortgaged to it and sold by public auction.

53. Default in respect of one of two loans on the same land.

54. Recovery of expenses and costs incurred by the Authority.

55. Payment of balance of proceeds after deduction of amount due to the Authority.

56. Certificate of sale.

57. Limitations of actions to invalidate sale.

58. Order for delivery of possession.

59. Cancellation of sale.

60. Re-sale by Authority.

61. Authority not precluded from other methods of recovery.

PART VII

Recovery of Possession of Houses, Flats and any other Building Belonging to the Authority by the General Manager

62. Houses, flats and other buildings to which this Part applies and interpretation of the expressions "landlord” and "occupier”.

63. Obligation to vacate building to which this Part applies.

64. Application to the court for recovery of possession and service of order nisi.

65. Adjournment of hearing.

66. Issue and execution of writ for delivery of possession.

67. Appeals.

68. Provisions for this Act to apply exclusively in all actions for ejectment from buildings to which this Part applies.

69. Costs, charges, and stamp duties.

PART VIIA

Recovery of Possession of Houses, Flats and any other Buildings Belonging to the Authority From Persons who are in Unauthorised Possession or Occupation of Such Houses, Flats and Buildings by The General Manager

69A. Houses, flats and other buildings to which this Part applies and interpretation of the expression building.

69B. Notice to quit.

69C. Obligation to comply with Notice to quit.

69D. Effect of non compliance with the Notice to quit.

69E. Proceedings on receipt of an application for ejectment.

69F. Provisions of this Part to prevail over any other provision of this Act or other written law.

69G. For the purposes of this Part.

PART VIII

General

70. Certificate from the General Manager.

71. Recovery of moneys due to the Authority.

72. Recovery of sums liable to be paid to the Authority by persons out of the remuneration of such persons.

73. Signature of documents by General Manager on or behalf of the Authority.

73A. Transfer to the Authority of all assets of the Department of National Housing.

74. Declaration of secrecy.

75. Directions of the Minister.

76. Regulations.

77. Power to enter any land or premises.

78. Members, officers and servants of the Authority deemed to be public servants.

79. The Authority deemed to be a scheduled institution within the meaning of the Bribery Act.

80. Protection for action taken under this Act or on the direction of the Authority.

81. Power of Authority to make rules.

82. Inapplicability of certain laws to the Authority.

83. Offences.

84. Interpretation.

SCHEDULES

17 of 1979,

5 of 1982,

20 of 1988,

30 of 1999,

23 of 2002,

32 of 2003.

AN ACT to provide for the establishment of a national housing development authority, to regulate its powers and functions, and to make provision for matters connected therewith or incidental theretos.

[Date of Commencement: 1st April, 1979]

1. Short title.

This Act may be cited as the National Housing Development Authority Act.

PART I

Establishment of the National Housing Development Authority

2. Establishment of the National Housing Development Authority.

(1) An Authority to be called the National Housing Development Authority (hereinafter referred to as "the Authority”) is hereby established.

(2) The Authority shall be a body corporate with perpetual succession and a common seal and may sue and be sued in its corporate name.

(3) The head office of the Authority shall be in Colombo.

(4) The Authority may, with the prior approval of the Minister, establish and maintain branch offices.

3. Members of the Authority.

(1) The Authority shall consist of the following members—

(a) six members (hereinafter referred to as "appointed members”) who shall be appointed by the Minister; and

(b) one other member (hereinafter referred to as "ex-officio member”) who shall be a representative of the Ministry charged with the subject of Finance nominated by the Minister in charge of that subject.

(2) The Minister shall appoint one of the appointed members to be the Chairman of the Authority.

(3) The Authority shall exercise, perform or discharge the powers, duties or functions of the Authority subject to such general or special directions as the Minister may issue from time to time and it shall be the duty of the Authority to comply with such directions.

(4) The provisions of Part III of this Act shall apply to the members of the Authority.

4. Objects of the Authority.

The objects of the Authority shall be—

(a) to directly engage itself in the construction of flats, houses and other living accommodation or buildings;

(b) to formulate schemes to establish housing development projects in order to alleviate the housing shortage;

(c) to cause the clearance of slum and shanty areas and the re-development of such areas;

(d) to promote housing development;

(e) to develop or re-develop land for the carrying out of any of the objects of the Authority;

(f) to make land available to any person for housing development;

(g) to provide financial or other assistance to persons engaged in any activity which is similar to any of the objects of the Authority;

(h) to conduct, promote and co-ordinate activities in relation to all aspects of housing development; and

(i) to do all such other acts as may be necessary or conducive to the attainment of any or all of the above objects.

5. Powers and functions of the Authority.

The powers and functions of the Authority shall be—

(a) to prepare and execute proposals, plans and projects for—

(i) the erection, conversion, improvement and extension of any flat, house or other living accommodation or any building for residential purposes;

(ii) the sale, lease, mortgage or rental of such of at, house or other living accommodation or building;

(iii) the clearance and redevelopment of slums, shanties, tenements and other buildings which are congested, unsightly or insanitary;

(iv) the resettlement of persons displaced or likely to be displaced by any of the operations of the Authority;

(b) to manage all lands, flats, houses and other living accommodation and buildings or other property vested in or belonging to the Authority;

(c) to provide loans on such terms and conditions as may be prescribed to enable persons—

(i) to purchase flats, houses or other living accommodation;

(ii) to purchase lands for the construction of flats, houses and other living accommodation; and

(iii) to construct flats, houses and other living accommodation;

(d) to conduct research and surveys necessary for the performance of the functions and duties of the Authority;

(e) to establish new housing estates and to encourage self-help housing projects and the provision of amenities for the inhabitants of such estates or projects including transport and other services;

(f) to enter into and perform directly or through Government departments, public corporations, or any agent authorised in that behalf all such contracts as it may consider necessary for the carrying out of any of the objects of the Authority;

(g) to accept gifts, grants, donations or subsidies, whether in cash or otherwise, and to apply them for carrying out of any of its objects;

(h) to develop any immovable property acquired or held by the Authority;

(i) to acquire, hold, take or give on lease or hire, mortgage, pledge, sell or otherwise dispose of, any movable or immovable property;

(j) to obtain loans on such terms and conditions as may be approved by the Minister for the purpose of carrying out any of its objects;

(k) to charge rents for any flat, house, or other living accommodation or any building provided by the Authority;

(l) to charge fees for any services or facilities provided by the Authority;

(m) to undertake any activity which, in the opinion of the Authority, are necessary to achieve any of its objects; and

(n) to do all such acts or things as are incidental to or consequential upon the exercise, performance and discharge of its powers, duties and functions.

PART II

Acquisition of Immovable Property snd Sale of Land, Flats, Houses and Other Living Accommodation Belonging to the Authority

6. Compulsory acquisition of land.

(1) Where the Minister certifies that any land, other than State land, should be acquired by Government for the purpose of being made available for the carrying out of any housing object and such certificate is published in the Gazette, that purpose shall be deemed to be a public purpose and that land may be acquired under the Land Acquisition Act, and be made available for that purpose to that Authority, or to any other person by being disposed of under the provisions of this Act.

(2) In the case of any such acquisition where the public notice of the intention to acquire that land or interest therein is published as required by the Land Acquisition Act at any time within a period of three years commencing from the appointed date, notwithstanding anything to the contrary in the Land Acquisition Act, the market value of the land or the interest therein for the purpose of determining the amount of compensation to be paid in respect of that land or the interest therein shall be deemed to be the market value of that land or the interest therein as on July 22, 1977,

increased by fifty per centum of the difference between that market value; and—

(a) in the case of any land or interest therein, in respect of which no Order under the proviso to section 38 of the Land Acquisition Act has been made, the market value, of the land or interest therein on the date of publication in the Gazette of the notice under section 7 of that Act; or

(b) in the case of any land or interest therein, in respect of which an Order under the proviso to section 33 of the Land Acquisition Act has been made, the market value of the land or interest therein on the date of publication of such Order.

[S 6(2) am by s 2 of Act 5 of 1982.]

7. State property both movable and immovable to be made available to the Authority.

(1) Where any immovable property of the State is required to be made or any of its available to the purposes, such purpose shall be deemed to Authority, be a purpose for which a special grant or lease of such property may be made to the Authority under section 6 of the State Lands Ordinance, and accordingly the provisions of that Ordinance shall apply to a special grant or lease of such property to the Authority for such purpose.

(2) Where any movable property of a Government department or any public corporation is required for the purposes of the Authority the Minister may by Order published in the Gazette transfer to and vest in the Authority the possession and use of such movable property.

(3) No order affecting any movable property of any Government department or public corporation shall be made by the Minister under subsection (2) without the consent of the Minister in charge of that department or public corporation.

8. Right of alienation of land, flat, house or other living accommodation.

(1) The Authority may, with the approval of the Minister, dispose by way of sale, lease, rent or rent purchase any land, flat, house or other living accommodation held by the Authority, subject to such terms and conditions as may be determined by the Minister and specified in the instrument of disposition, and in particular, but without prejudice to the generality of the foregoing provisions of this section, a condition to the effect that the disposition effected by such instrument may be cancelled or determined in the event of a failure to comply with any other condition specified in such instrument or in the event of any money due to the Authority under such instrument remaining unpaid for any such period as may be specified therein.

(2) Nothing in the State Lands Ordinance shall affect or be deemed or construed to affect the disposition of any State land held by the Authority for any of the purposes of the Authority.

(3) Nothing in the Prevention of Frauds Ordinance shall apply to any instrument of disposition effected under subsection (1) by or on behalf of the Authority.

[S 8(3) ins by s 3 of Act 5 of 1982.]

9. Restrictions as to purchase.

No person shall be entitled to purchase more than one house, Hat or other living accommodation or any land for any such purpose sold under the provisions of this Part.

10. .

[S 10 rep by s 2 of Act 32 of 2003.]

11. No action to lie in respect of the cancellation or determination of an instrument.

Notwithstanding the provisions of law to the contrary, no action shall lie against the Authority or any officer or servant of such Authority in respect of the cancellation or determination of an instrument of alienation under the provisions of section 8.

PART III

Members of the Authority

12. Disqualification from membership.

A person shall be disqualified from being appointed or continuing as a member of the Authority if he is or becomes a Member of Parliament.

13. Resignation of appointed members of the Authority.

Any appointed member may resign from the Authority by letter on that behalf addressed to the Minister.

14. Powers of Minister to remove an appointed member.

The Minister may, by Order published in the Gazette, remove an appointed member from office without assigning a reason therefor and such removal shall not be called in question in any court. A member in respect of whom an Order is made under this section shall be deemed to have vacated office on the date of publication of that Order in the Gazette.

15. Period of office of appointed member.

(1) An appointed member shall, subject to the provisions of sections 13 and 14, hold office for a period of three years from the date of his appointment to such office:

Provided that a member appointed in place of a member who dies or resigns or otherwise vacates office, shall, unless he earlier vacates office, hold office for the unexpired part of the term of office of the member whom he succeeds.

(2) Where the Chairman or any other appointed member becomes, by reason of illness, infirmity or absence from Sri Lanka, temporarily unable to discharge the functions of his office, the Minister may appoint any other member to act as Chairman, or any other person to act as in place of such Chairman or member, as the case may be.

16. Eligibility for reappointment as appointed members.

Any appointed member other than a member who has been removed from office under section 14 shall be eligible for reappointment.

17. Remuneration of members.

All or any of the members may be paid such remuneration out of the fund of the Authority, as may be determined by the Minister with the concurrence of the Minister in charge of the subject of Finance.

18. Period of office of Chairmen.

(1) The term of office of the Chairman of the Authority shall be the period of his membership of the Authority.

(2) The Chairman may earlier resign his office as Chairman by letter in that behalf addressed to the Minister.

(3) The Minister may, at any time, without assigning a reason therefor, terminate the appointment of the Chairman.

19. Quorum.

(1) The quorum for any meeting of the Authority shall be three members and the Authority may regulate the procedure in regard to the meetings of such Authority and the transaction of business at such meetings.

(2) All questions for decision at any meeting of the Board shall be decided by the vote of the majority of the members present, in case of an equality of votes the member presiding at that meeting shall have a casting vote.

20. Member to disclose interest to the Authority.

A member who is directly or indirectly interested in any business transacted or proposed to be transacted by the Authority shall disclose the nature of such interest at the meeting of the Authority where such business is being discussed. The disclosure shall be recorded in the minutes of the Authority and such member shall not take part in any deliberation or decision of the Authority with regard to that business and shall withdraw from such meetings while such deliberation is in progress or such decision is being made.

21. Acts not invalidated by reason of vacancy.

No act, decision or proceeding of the Authority shall be invalidated by reason only of the existence of a vacancy among its members or any defect in the appointment of a member.

22. Seal of Authority.

(1) The seal of the Authority shall be in the custody of the Authority.

(2) The seal of the Authority may be altered in such manner as may be determined by the Authority.

(3) The seal of the Authority shall not be affixed to any instrument or document except in the presence of two members of the Authority who shall sign the instrument or document in token of their presence.

PART IV

Officers and Servants of the Authority

23. General Manager of the Authority.

(1) The Authority may, with the approval of the Minister, appoint a General Manager, who shall be the chief executive officer.

(2) The Authority may, at any time if it considers necessary to do so, terminate the appointment of the General Manager with the approval of the Minister.

(3) The General Manager shall, subject to the general direction and control of the Chairman, be charged with the direction of the business of the Authority, the organisation and execution of the powers, functions and duties of the Authority, and the administrative control of the employees of the Authority.

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ECONOMIC SERVICE CHARGE (AMENDMENT) ACT, NO. 7 OF 2017


CIVIL PROCEDURE CODE (AMENDMENT) ACT, NO. 8 OF 2017


OFFICE ON MISSING PERSONS (ESTABLISHMENT, ADMINISTRATION AND DISCHARGE OF FUNCTIONS) (AMENDMENT) ACT, NO. 9 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


NATIONAL TRANSPORT COMMISSION (AMENDMENT) ACT, NO. 6 OF 2017


ECONOMIC SERVICE CHARGE (AMENDMENT) ACT, NO. 7 OF 2017


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OFFICE ON MISSING PERSONS (ESTABLISHMENT, ADMINISTRATION AND DISCHARGE OF FUNCTIONS) (AMENDMENT) ACT, NO. 9 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


NATIONAL TRANSPORT COMMISSION (AMENDMENT) ACT, NO. 6 OF 2017


ECONOMIC SERVICE CHARGE (AMENDMENT) ACT, NO. 7 OF 2017


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OFFICE ON MISSING PERSONS (ESTABLISHMENT, ADMINISTRATION AND DISCHARGE OF FUNCTIONS) (AMENDMENT) ACT, NO. 9 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


NATIONAL TRANSPORT COMMISSION (AMENDMENT) ACT, NO. 6 OF 2017


ECONOMIC SERVICE CHARGE (AMENDMENT) ACT, NO. 7 OF 2017


CIVIL PROCEDURE CODE (AMENDMENT) ACT, NO. 8 OF 2017


OFFICE ON MISSING PERSONS (ESTABLISHMENT, ADMINISTRATION AND DISCHARGE OF FUNCTIONS) (AMENDMENT) ACT, NO. 9 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


NATIONAL TRANSPORT COMMISSION (AMENDMENT) ACT, NO. 6 OF 2017


ECONOMIC SERVICE CHARGE (AMENDMENT) ACT, NO. 7 OF 2017


CIVIL PROCEDURE CODE (AMENDMENT) ACT, NO. 8 OF 2017


OFFICE ON MISSING PERSONS (ESTABLISHMENT, ADMINISTRATION AND DISCHARGE OF FUNCTIONS) (AMENDMENT) ACT, NO. 9 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


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ECONOMIC SERVICE CHARGE (AMENDMENT) ACT, NO. 7 OF 2017


CIVIL PROCEDURE CODE (AMENDMENT) ACT, NO. 8 OF 2017


OFFICE ON MISSING PERSONS (ESTABLISHMENT, ADMINISTRATION AND DISCHARGE OF FUNCTIONS) (AMENDMENT) ACT, NO. 9 OF 2017


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015