Local authorities are not given money from central government to fund housing, but they can raise their own money to provide for land and housing. There is a duty on government to provide people with rental housing in terms of the Rental Housing Act. Often they own a lot of low-income houses which many people still rent from them. The local authority is the landlord and decides who can get a house. They will give preference to families of single people when a house becomes available.
(See: Problem 5: Provision of land, housing and services for homeless people; Drawing up an Integrated Development Plan)

According to the Municipal Systems Act (No 32 of 2000), every municipality has to draw up and pass a by-law on credit control and managing debts. This should include provisions for arrangements for people who are in arrears – particularly for people who are indigent (living in poverty). It should say what penalties there are for people who don’t keep up on any of their payments, including the disconnection of services or the eviction of tenants or owners.