The Housing (Right to Transfer from a Local Authority Landlord) (England) Regulations 2013

PART 4 Development Stage

Duties of the authority – development stage

18.—(1) The authority must carry out the functions set out in paragraph (2) in any of the following cases, namely where—

(a) the authority has accepted the feasibility study statement and the decision of the tenant group is to proceed with an option or options for the disposal to a PRP of the houses identified in the feasibility study statement;

(b) the arbitrator has decided that there are no grounds for the authority to reject the feasibility study statement;

(c) there has been a determination by the Secretary of State that the disposal of the houses specified in the proposal notice to a PRP will not have a significant detrimental effect on the provision of housing services in the area of the authority or the regeneration of the area; or

(d) the authority has not applied to the Secretary of State for a determination under regulation 13 within 21 days of the authority’s acknowledgement of receipt of the feasibility study statement.

(2) The authority must—

(a) agree a timetable with the tenant group providing for the matters set out in regulation 19; and

(b) continue to provide reasonable facilities and sufficient information to enable the tenant group to develop the option or options for the disposal of the houses to a PRP.

Content of the timetable

19.  The timetable agreed in paragraph (2)(a) of regulation 18 must provide for—

(a) the development of the option or options for the disposal of the houses to a PRP contained in the feasibility study with a view to the tenant group deciding which option to take forward as a proposal; and

(b) where the tenant group wish to take forward a proposal for the disposal of the houses to a PRP, the time by which the authority must seek the Secretary of State’s consent under section 32(1) or 43(2) of the Housing Act 1985 (general requirement for consent for disposal of houses or land held for housing purposes).

Failure to agree a timetable

20.  The tenant group may refer the matter to an arbitrator where the authority—

(a) fails to agree a timetable or unreasonably delays agreeing a timetable pursuant to paragraph (2)(a) of regulation 18; or

(b) fails to or unreasonably refuses to provide facilities or information to the tenant group pursuant to paragraph (2)(b) of regulation 18.

Consultation with tenants

21.—(1) The authority must serve a notice upon all the tenants of houses contained in the feasibility study statement informing them of the following—

(a) the proposal selected by the tenant group including the identity of the PRP to whom the disposal is to be made;

(b) the likely consequences of a disposal for the tenant;

(c) the effect of the provisions of this regulation, regulation 22 and Schedule 3A(3) to the Housing Act 1985;

(d) in the case of a secure tenant, the effect of sections 171A to 171H of the Housing Act 1985(4) (preservation of right to buy on disposal to private sector landlord); and

(e) details of such reasonable period as is specified in the notice during which a tenant may make representations about the proposed disposal to the authority.

(2) The authority must also serve a copy of the notice served under paragraph (1) on any interested parties.

(3) Subject to paragraph (4), the authority must—

(a) consider with the tenant group any representations made by tenants and interested parties within the period stated in the notice; and

(b) where the tenant group agrees, serve a further written notice on the tenants containing—

(i) details of any significant changes to the proposal;

(ii) a statement that the tenant may within such period as is specified in the notice (which must not be less than 28 days) communicate any objection to the proposal to the Secretary of State; and

(iii) information about the effect of regulation 22 (seeking consent of the Secretary of State) and paragraph 5 of Schedule 3A to the Housing Act 1985 (consent to be withheld if the majority of secure tenants and introductory tenants are opposed).

(4) Where the tenant group notifies the authority within 14 days of the end of the period specified in the notice served under paragraph (1) that it does not want to proceed with the proposal, the authority is not required to serve a further written notice under paragraph (3).

(5) Where—

(a) the tenant group wishes to proceed with the proposal; and

(b) the authority consider it appropriate to proceed with the proposal;

the authority must arrange a ballot of secure tenants and introductory tenants to establish whether or not the secure and introductory tenants wish for the disposal of the houses and land to the specified PRP to proceed.

(6) After the ballot has been held, the authority must notify each tenant (whether or not the tenant voted) and any interested party of—

(a) the outcome of the ballot;

(b) whether the consent of the Secretary of State to the disposal of the houses and land pursuant to regulation 22 will be sought by the authority; and

(c) where the consent of the Secretary of State is to be sought, the fact that the tenant may within such period as is specified in the notice (which must not be less than 28 days) communicate any objection to the proposal to the Secretary of State .

(7) The tenant group may refer the matter to an arbitrator where—

(a) the authority and the tenant group fail to agree to serve a further notice under paragraph (3)(b); or

(b) the authority does not consider it appropriate to arrange a ballot under paragraph (5).

Seeking consent of the Secretary of State

22.—(1) Where the result of the ballot held pursuant to paragraph (5) of regulation 21 indicates—

(a) the majority of secure tenants and introductory tenants wish the proposal to proceed; and

(b) the tenant group wishes to proceed,

the authority must seek the consent of the Secretary of State under sections 32 or 43 of the Housing Act 1985 for the disposal of the houses and land to the PRP set out in the proposal.

(2) Where the authority seeks consent under paragraph (1), the authority may make representations to the Secretary of State as to whether consent should be granted.

Transfer of the Housing and Land

23.  Where the Secretary of State grants consent under sections 32 or 43 of the Housing Act 1985 to the disposal of the houses and land to the PRP set out in the proposal, the authority must enter into an agreement to dispose of the houses and land to the PRP.

(1)

Section 32 of the Housing Act 1985 was amended by article 2 of S.I. 1997/74, article 6 of S.I. 2010 and other amendments that are not relevant.

(2)

Section 43 of the Housing Act 1985 was amended by sections 132 and 140 of the Housing Act 1988 (c.50); section 194 of the Local Government and Housing Act 1989 (c.42); section 78 of the Environment Act 1995 (c.25); section 227 of the Housing Act 1996 (c.52); section 311 of the Housing and Regeneration Act 2008 and S.I. 2010/844.

(3)

Schedule 3A of the Housing Act 1985 was inserted by section 6(2) and (3) of and Schedule 1 to the Housing and Planning Act 1986 (c.63). The Schedule has been amended by section 294 of the Housing and Regeneration Act 2008 (c.17) and S.I. 1997/74.

(4)

Sections 171A to 171H were inserted by the Housing and Planning Act 1986 (c.63) section 8(1) and (3) and modified by S.I. 1993/2240 article 3 Schedule paragraph 55, S.I. 1993/2241 regulation 2, Schedule 1 and other statutory instruments not relevant to this instrument. Section 171B was also amended by the Anti-social Behaviour Act 2003 (c. 38) section 14(5) Schedule 1 paragraph 2(1) and (3); the Housing Act 1988 (c.50) section 127(1); the Housing Act 1996 (c.52) section 222, Schedule 18 paragraph 26(1); the Family Law Act 1996 (c.27) section 66(1), Schedule 8 paragraphs 34 and 56 and the Civil Partnership Act 2004 (c. 33) section 81, Schedule 8 paragraph 31. Sections 171C and 171H were also amended by the Housing Act 1988 section 127(2) and (3) and the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) section 187(2) Schedule 22. Section 171H was also amended by the Housing Act 1988 section 140 Schedule 17 Part 1 paragraph 42.