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PART 3Feasibility Study Stage

Feasibility study

14.—(1) Where—

(a)the authority has accepted a proposal notice under regulation 10;

(b)the Secretary of State has determined that the proposal notice should be accepted under regulation 12(2) or regulation 13; or

(c)the authority has not lodged an application with the Secretary of State for a determination under regulation 13 within 21 days of receipt of the acknowledgement of service by the tenant group

the tenant group may proceed to prepare a feasibility study.

(2) The feasibility study must set out—

(a)confirmation that the houses and area to which to which the feasibility study relates are those specified in the proposal notice;

(b)the possible options for the disposal of the houses and area specified in the proposal notice to a PRP (in particular whether to an existing PRP or a new PRP); and

(c)the feasibility of each option.

Duties of the authority – feasibility study stage

15.—(1) The authority must—

(a)agree a timetable and reasonable changes to any agreed timetable for the completion of the feasibility study with the tenant group;

(b)provide reasonable facilities to enable the tenant group to carry out the feasibility study; and

(c)provide sufficient information to enable the tenant group to complete the feasibility study.

(2) Where, in the view of the tenant group, the authority—

(a)does not agree a timetable or changes to an agreed timetable in a reasonable period;

(b)provides insufficient facilities or refuses to provide reasonable facilities; or

(c)provides insufficient information or fails to provide sufficient information

contrary to paragraph (1), the tenant group may refer the matter to an arbitrator.

(3) Where the matter is referred to an arbitrator, the timetable is suspended until the decision of the arbitrator is notified to the authority and the tenant group.

Feasibility study statement

16.—(1) On the completion of the feasibility study, the tenant group must send a statement of that fact (“a feasibility study statement”) to the authority.

(2) The statement under paragraph (1) must also be accompanied by—

(a)confirmation that it is a statement given under this regulation;

(b)a copy of the feasibility study;

(c)a record of the tenant group’s decision regarding the disposal of the houses;

(d)evidence that the majority of the members of the tenant group attending a meeting, satisfying the conditions set out in paragraph (3), voted in favour of the decision;

(e)a statement that the tenant group are of the view that the majority of tenants of the houses identified in the feasibility study do not oppose the decision to dispose of the houses to a PRP, where this is the decision of the tenant group; and

(f)the evidence on which the view of the tenant group referred to in sub-paragraph (e) is based.

(3) Any meeting of the tenant group convened to make the decision regarding the disposal of the houses must meet the following conditions—

(a)reasonable notice must be given to all members of the tenant group of the time and place of the meeting;

(b)the notice of the meeting must explain that a vote will be taken upon whether to proceed with the disposal of the houses set out in the proposal notice; and

(c)all members of the tenant group must be entitled to vote.

(4) Within 28 days of receipt of the feasibility study statement, the authority must acknowledge receipt and state whether—

(a)the feasibility study statement is accepted;

(b)the feasibility study statement is rejected and set out the grounds for rejection; or

(c)a request for a determination will be lodged with the Secretary of State within 21 days.

(5) Where the authority does not acknowledge receipt of the feasibility study statement in accordance with paragraph (4), the authority is deemed to have accepted the statement.

Rejection of the feasibility study statement

17.—(1) The authority may reject the feasibility study statement on the grounds that it does not meet one or more of the conditions in regulation 16(2).

(2) Where the feasibility study is rejected, the tenant group may, within 21 days of receipt of the authority’s acknowledgement of receipt of the feasibility study statement, refer the matter to an arbitrator.