Urban Settlement Development Authority Act

Arrangement of Sections

1. Short title.

PART I

Establishment and Constitution of the Urban Settlement Development Authority

2. Establishment of the Urban Settlement Development Authority.

3. Constitution of the Board of Directors.

4. Disqualification for being a member.

5. Removal and resignation of members.

6. Term of office of members.

7. Remuneration or allowance of members.

8. Chairman of the Board.

9. Meetings of the Board.

10. Establishment of a Advisory Committee.

11. Acts not invalidated by reason of a vacancy.

12. Seal of the Authority.

13. Board to exercise its powers under the direction of the Minister.

14. Delegation of powers and functions of the Board.

15. Powers and functions of the Authority.

PART II

Finance

16. Fund of the Authority.

17. Financial year and the Audit of accounts.

18. Borrowing powers.

PART III

Staff of the Authority

19. Appointment of the Director-General.

20. Appointment of officers, servants and agents.

21. Appointment of public officers, officers of the Local Government Service to the staff of the Authority.

PART IV

Acquisition of immovable and movable Property and sale of Lands belonging to the Authority

22. Acquisition of property belonging to the local authority or public corporation.

23. Requisition of State land.

24. Application of the Urban Development Projects (Special Provisions) Act, No. 2 of 1980.

25. Application of the Land Acquisition Act.

26. Alienation of property.

27. No action shall lie against the Authority.

PART V

Provisions applicable to loans

28. Loans.

29. Service of Notice.

30. Settlement of loan.

31. Priority of a mortgage of a loan granted by the Authority.

32. Form of mortgage of land.

33. Default of payment.

34. Action for default.

35. Sale of property mortgaged to the Authority.

36. Where borrower is dead.

37. Publication of notice to sell.

38. Notice of sale.

39. Payments made before sale.

40. Fixing an upset price.

41. Bid at a public auction for the Authority.

42. Additional costs charged by the Authority.

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

44. Certificate of Sale.

45. Prescriptive period.

46. Order for delivery of possession.

47. Cancellation of sale before resale by the Authority.

48. Re-sale by the Authority.

49. Authority not precluded from other methods of recovery.

PART VI

Recovery of Possession of Flats, Living Accommodation or any other building belonging to the authority by the Director General

50. Interpretation

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

52. Application to the Court for recovery of possession and service of Order nisi.

53. Adjournment of hearing.

54. Order of ejectment.

55. Non-compliance with the Order of ejectment.

56. Limitations of actions to vindicate right of occupation.

57. Provisions of this Part to prevail.

PART VII

General

58. Directions of the Minister.

59. Exemption from the payment of stamp duty.

60. Regulations.

61. Enter and examine premises.

62. All directors etc. deemed to be public offices.

63. Authority to be deemed to be a scheduled institution.

64. Recovery of expenses incurred by the Authority.

65. Rules.

66. Contravention of the provisions of this Act to be an offence.

67. Sinhala text to prevail in case of inconsistency.

68. Interpretation.

36 of 2008.

AN ACT to provide for the establishment of an Urban Settlement Development Authority to formulate National Policy in relation thereto and to ensure the implementation of such policy; to provide for the improvement of the living conditions of persons living in underserved Urban Settlements by upgrading available housing units or by providing better housing facilities and access to minimum urban services in order to ensure a sustainable Urban Settlement Development, and to provide for matters connected therewith or incidental thereto.

[Date of Commencement: 23rd October, 2008]

1. Short title.

This Act may be cited as the Urban Settlement Development Authority Act.

PART I

Establishment and Constitution of the Urban Settlement Development Authority

2. Establishment of the Urban Settlement Development Authority.

(1) There shall be established an Institution which shall be called the Urban Settlement Development Authority (hereinafter referred to as the "Authority”).

(2) The Authority shall, be the name assigned to it by subsection (1), be a body corporate and shall have perpetual succession and a common seal and may sue and be sued by such name.

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

3. Constitution of the Board of Directors.

The management and administration of the affairs of the Authority shall be vested in a Board of Directors (hereinafter referred to as the "Board”) which shall consist of—

(a) the following ex-officio members, namely—

(i) the Secretary to the Ministry of the Minister in charge of the subject of Finance or his representative;

(ii) the Secretary to the Ministry of the Minister in charge of the subject of Local Government or his representative;

(iii) the person holding the office for the time being, as the Chairman of the Urban Development Authority established under section 2 of the Urban Development Authority Law, No. 41 of 1978, or his representative;

(iv) the person holding the office for the time being, as the Chairman of the National Housing Development Authority established under section 2 of the National Housing Development Authority Act, No. 17 of 1979, or his representative;

(b) the following members appointed by the Minister ensuring however that there is adequate gender representation (hereinafter referred to as the "appointed members”)—

(i) three members to represent the interests of the local authorities of urban areas;

(ii) four members from among persons who appear to the Minister to have knowledge and experience in urban settlement development.

4. Disqualification for being a member.

A person shall be disqualified from being appointed, or continuing, as a member of the Board, if—

(a) he is or becomes, a member of Parliament or any Provincial Council;

(b) he is not or ceases to be a citizen of Sri Lanka;

(c) he is under any law in force in Sri Lanka or in any other country, found or declared to be of unsound mind;

(d) if he is serving or has served, a sentence of imprisonment imposed by any Court in Sri Lanka or any other country;

(e) if he holds or enjoys any right or benefit under any contract made by, or on behalf of the Authority; or

(f) if he has any financial or other interest as is likely to affect prejudicially the discharge by him of his functions as a member of the Authority.

5. Removal and resignation of members.

(1) An appointed member of the Board may resign his office by letter addressed to the Minister and such resignation shall be effective from the date on which it is accepted by the Minister.

(2) The Minister may for reasons assigned remove an appointed member of the Board from office.

(3) Where an appointed member of the Authority dies, resigns or is removed from office, the Minister shall, having regard to the provisions of section 3, appoint another member in his place.

(4) A member appointed under subsection (3) shall hold office for the unexpired part of the term of office of the member whom he succeeds.

6. Term of office of members.

Subject to the provisions of subsections (1) and (2) of section 5, the term of office of an appointed member of the Board shall be three years and such member shall be eligible for reappointment.

7. Remuneration or allowance of members.

The members of the Board shall be paid such remuneration or allowances at such rates as may be determined by the Minister with the concurrence of the Minister in charge of the subject of Finance.

8. Chairman of the Board.

(1) The Minister may appoint a Chairman from among the appointed members of the Board.

(2) The terms of office of the Chairman shall be three years and he shall be eligible for reappointment.

(3) If the Chairman is by reason of illness or absence from Sri Lanka, temporarily unable to perform the duties of his office, the Minister may appoint an appointed member of the Board to act in his place in addition to his normal duties as an appointed member.

(4) The Chairman shall not engage in any paid employment outside the duties of his office, without the approval of the Minister.

(5) The Chairman may resign from the office of Chairman by letter addressed to the Minister and such resignation shall be effective from the date on which it is accepted by the Minister.

(6) The Minister may from reasons assigned remove the Chairman from the office of Chairman.

(7) Subject to the provisions of subsections (5) and (6), the term of office of the Chairman shall be the period of his membership of the Board.

9. Meetings of the Board.

(1) The Chairman shall, if present, preside at every meeting of the Board. In the absence of the Chairman from any such meeting, a member elected by the members present, shall preside at such meeting.

(2) The quorum for any meeting of the Authority shall be five members.

(3) The Chairman or other member presiding at any meeting of the authority, shall in addition to his own vote, have a casting vote.

(4) Subject to the preceding provisions of this section, the Authority may regulate the procedure in regard to the meetings of the Authority and the transaction of business at such meetings.

10. Establishment of a Advisory Committee.

(1) There shall be appointed by the Authority a Committee which shall be called the "Advisory Committee”.

(2) The Authority may seek advice of the Advisory Committee in approving and dealing with any such matter pertaining to the formulation and execution of proposals, plans, projects and action programs of the Authority.

(3) The Advisory Committee shall consist of a Chairman and not more than fourteen members ensuring that there is adequate gender representation.

(4) The Board shall set out the rules applicable thereto and determine the functions thereof.

11. Acts not invalidated by reason of a vacancy.

No act, decision or proceeding of the Authority, shall be deemed to be invalid by reason only of the existence of any vacancy of the Board or any defect in the appointment of any member thereof.

12. Seal of the Authority.

(1) The Seal of the Authority may be determined and devised by the Board and may be altered in such manner as may be determined by the Board.

(2) The Seal of the Authority shall be in the custody of such person as the Board may decide from time to time.

(3) The Seal of the Authority shall not be affixed to any instrument or document except with the sanction of the Board and in the presence of the Chairman and one member who shall sign the instrument or document in token of their presence:

Provided that, where the Chairman is unable to be present at the time when the Seal of the Authority is affixed to any instrument or document, any other member authorised in writing by the Chairman in that behalf shall be competent to sign such instrument or document in accordance with the preceding provision of this subsection.

(4) The Authority shall maintain a register of the instruments and documents to which the Seal of the Authority has been affixed.

13. Board to exercise its powers under the direction of the Minister.

In the exercise of its powers and the discharge of its functions, the Board shall comply with such general or special directions as may from time to time be issued to it by the Minister:

Provided that compliance by the Board with any general or special direction so issued shall be subject to the provisions of any other law for the time being in force.

14. Delegation of powers and functions of the Board.

(1) The Board may delegate, any of the powers and functions of the Board, to the Chairman.

(2) The Chairman to whom any of the powers and functions of the Board have been delegated under subsection (1) shall exercise and discharge the powers and functions so delegated, subject to the general or special directions of the Authority.

15. Powers and functions of the Authority.

The powers and functions of the Authority shall be—

(a) to formulate and execute proposals, plans, projects and action programs also giving due consideration to such as may be received from communities of the urban settlements to improve living conditions of such settlements;

(b) to implement related programs of development work which will improve the living conditions of the urban settlement engaging wherever possible the involved communities to the optimum level;

(c) to implement housing credit schemes;

(d) to provide financial grants to individuals in slum and shanty communities for improving their housing conditions subject to financial procedure of the Government;

(e) to carry out in partnership with local authorities and local communities and institutions, surveys and studies to identify housing, infrastructure facilities and service needs of urban settlements and develop and maintain with regular updates a data base of such information;

(f) to undertake implementation of urban housing development projects approved by the Government;

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