Estate News

Non-Compliant Residential Developments Face Up to R10 Million Fine under POPI Act

Residential developments, including sectional title complexes, apartment blocks, residential estates, and retirement villages, must ensure compliance with the Protection of Personal Information (POPI) Act by 10 May 2023. Failure to do so could result in a fine of up to R10 million, or imprisonment for 12 months, according to the Community Schemes Ombud Service (CSOS).

Marina Constas, a specialist community schemes attorney and director at BBM Law, emphasizes the importance of trustees in sectional title schemes and directors of homeowners associations taking this deadline seriously. She highlights that they should already have a well-advanced POPI plan of action in place, as the deadline was previously extended from 1 July 2021.

Constas advises that every community housing scheme should have a comprehensive POPI policy or be in the final stages of its completion. They should have appointed an information officer who serves as the scheme’s POPI oversight representative. In addition, they should have amended their rules to comply with POPI and established POPI agreements with stakeholders such as auditors and managing agents who have access to personal information.

The POPI policy should clearly outline the personal information collected and held by the housing complex, including that of trustees, owners, tenants, and visitors. It should specify how the complex collects, stores, and uses personal information, as well as the purposes for which it is collected and disclosed. The policy should also provide information on how individuals can access their personal information.

Trustees and directors must consider aspects such as access control at the guardhouse and CCTV surveillance cameras. They should be prepared to explain the information requested from visitors by security guards, including identity numbers and photographs. It is crucial to justify why this information is collected, how it is stored, the duration of storage, and the process for its destruction.

Regarding CCTV cameras, Constas explains that community schemes can still utilize them but must take specific steps to ensure POPI compliance. These steps include notifying owners in writing about the existence and location of cameras, ensuring cameras do not infringe on owners’ privacy, and clearly defining responsibilities for controlling and utilizing recorded images. Proper measures must be in place to prevent image corruption, and guidelines should be established for the destruction of footage after a specified period. Signage indicating the use of CCTV cameras for crime prevention is recommended for sectional title complexes and residential estates.

The POPI policy should also outline the process for individuals to file complaints with the Information Regulator and detail how the complex or residential estate will handle such complaints.

Constas strongly advises sectional title complexes and community housing schemes to seek professional advice and assistance in reviewing and updating their privacy policies and statements as the final deadline for POPI compliance approaches.