3.—(1) Section 1(4) of the Homelessness Act 2002(1) shall not apply to local housing authorities(2) which are excellent authorities.
(2) Paragraph (3) applies where a local housing authority cease, by reason of an order made by the Secretary of State under section 99(4) of the Local Government Act 2003, to be categorised as excellent.
(3) Where this paragraph applies the authority shall be treated as an excellent authority for the purpose of paragraph (1), for a period—
(a)of such length, no shorter than one year and not exceeding two years, as the Secretary of State may specify in writing to the authority, and
(b)beginning with the date on which the order mentioned in paragraph (2) comes into force.
For the relevant definition of “local housing authority”, see section 4 of the Homelessness Act 2002.