Housing Defects Act 1984

SCHEDULES

Section 5.

SCHEDULE 1 Reinstatement Grant

PART I Payment of Grant

Amount

1 (1) Subject to the following provisions of this Schedule, the amount of reinstatement grant payable is the appropriate percentage of—

(a) the amount stated in a notice under section 4(2) of this Act or paragraph 3 below to be the amount of expenditure which, in the opinion of the appropriate authority, may properly be incurred in executing the qualifying work and entering into any associated arrangement,

(b) the expenditure incurred in executing the qualifying work and entering into any associated arrangement, or

(c) the expenditure which is the maximum amount permitted to be taken into account for the purposes of this paragraph,

whichever is the least.

(2) In this Schedule " appropriate percentage " means 90 per cent or, in any case where the authority are satisfied that the person entitled to assistance would suffer financial hardship unless a higher percentage of the expenditure referred to in sub-paragraph (1) above were paid to him, 100 per cent.

(3) The Secretary of State may by order vary either or both of the percentages mentioned in sub-paragraph (2) above.

Expenditure limit

2 (1) The maximum amount of expenditure permitted to be taken into account for the purposes of paragraph 1 above shall be the amount specified as the expenditure limit by order made by the Secretary of State, except in a case or description of case in which the Secretary of State, on the application of a housing authority, approves a higher amount.

(2) An order under this paragraph may make different provision for different areas, different designated classes and different categories of dwelling.

Changes in work or expenditure

3 Where the appropriate authority are satisfied that—

(a) the work required to reinstate the defective dwelling is more extensive than that stated in the notice under section 4(2) of this Act or a previous notice under this paragraph,

(b) the amount of expenditure which may properly be incurred in executing that work is greater than that so stated,

(c) there is an amount of expenditure which may properly be incurred in entering into an associated arrangement but no such amount is stated in the notice under section 4(2) of this Act or a previous notice under this paragraph, or

(d) where such an amount is so stated, the amount of expenditure which may be properly so incurred is greater than that amount,

they shall by notice in writing served on the person entitled to assistance state their opinion as to that amount or, as the case may be, that work and that amount, and the amount of reinstatement grant payable shall be adjusted accordingly.

Payment

4 (1) The appropriate authority may pay reinstatement grant in respect of the qualifying work in a single sum on completion of the qualifying work or by instalments.

(2) No instalment of reinstatement grant is to be paid at any time to the person entitled to assistance if that instalment (together with any amount previously paid) would exceed the appropriate percentage of the cost of so much of the qualifying work as has been executed at that time.

(3) The appropriate authority shall pay reinstatement grant in respect of any associated arrangement when payment in respect of the expenditure incurred in entering into the arrangement concerned falls to be made.

PART II Repayment of Grant

5 (1) This paragraph applies where—

(a) an amount of reinstatement grant has been paid in one or more instalments to the person who was entitled to assistance, and

(b) the qualifying work is not completed within the period for carrying out that work.

(2) Where this paragraph applies, the authority may, if they think fit, require that person to repay to them forthwith the amount referred to in sub-paragraph (1)(a) above and, if they do so—

(a) he shall comply with the requirement, and

(b) that amount or (if it was paid in more than one instalment) the amount of each instalment shall carry interest from the date on which it was paid until repayment at such reasonable rate as the authority may determine.

Sections 6 and 7.

SCHEDULE 2 Repurchase

PART I Acquisition of Interest

The price

1 (1) The price payable for the acquisition of an interest in pursuance of this Act is 95 per cent, of the value of that interest at the relevant time.

(2) In this Schedule " the relevant time " means the time at which the notice under section 6(2) or the offer to purchase under section 7(2) of this Act is served on the person entitled to assistance.

The value

2 (1) For the purposes of this Schedule, the value of an Interest at the relevant time is the amount which, at that time, would be realised by a disposal of that interest on the open market by a willing seller to a person other than the appropriate authority on the assumptions specified in sub-paragraph (2) below and on the basis that no account is taken of any right to the grant of a tenancy under section 10 of this Act.

(2) Those assumptions are—

(a) that none of the defective dwellings to which the designation in question relates are affected by the qualifying defect;

(b) that no liability has arisen or will arise under a covenant required by section 104B(2) of the [1957 c. 56.] Housing Act 1957, section 8(1) of the 1980 Act or paragraph 6(1) or 7(1) of Schedule 3 to the [1984 c. 29.] Housing and Building Control Act 1984 (covenants to repay discount or, in the case of a shared ownership lease, pay for outstanding share) or any covenant to the like effect;

(c) that no obligation to acquire the interest arises under this Act;

(d) where, at the time at which the value of the interest falls to be considered, there has been since the relevant time a material change in circumstances affecting the value of the interest, that the change had occurred before the relevant time; and

(e) that (subject to the preceding paragraphs) the seller is selling with and subject to the rights and burdens with and subject to which the disposal is to be made.

(3) Sub-paragraph (2) above applies to Scotland as if, for paragraph (b) there were substituted—

“(b) that no liability has arisen under section 6(1) of the Scottish Act of 1980 (recovery of discount on early resale)”.

Determination of value

3 (1) Any question arising under this Schedule as to the value of an interest in a defective dwelling shall be determined by the district valuer in accordance with this paragraph.

(2) Within the period beginning with the service on the person entitled to assistance of a notice under subsection (2) of section 6 of this Act and ending with the service of a copy of the agreement drawn up under subsection (4) of that section for execution by the parties, the person entitled to assistance or the appropriate authority may, by notice in writing served on the district valuer, require that value to be determined or redetermined.

(3) If, after the end of that period but before the parties enter into an agreement for the acquisition of the interest of the person so entitled, there is a material change in circumstances affecting the value of the interest, that person or the appropriate authority may by notice in writing served on the district valuer before the parties enter into such an agreement require that value to be determined or redetermined.

(4) In any case where, in accordance with sub-paragraph (3) above, the district valuer is required, after the end of the period referred to in sub-paragraph (2) above, to determine the value of an interest, then—

(a) the authority shall, within three months of all the provisions of the agreement for the acquisition of the interest of the person so entitled by the authority being agreed or determined, draw up an agreement for execution by the parties embodying those provisions and serve a copy of the agreement on that person ; and

(b) subsection (5) of section 6 of this Act shall, instead of applying in relation to the agreement drawn up under subsection (4) of that section, apply in relation to the agreement drawn up under paragraph (a) above.

(5) Before making a determination in pursuance of tins paragraph, the district valuer shall consider any representation made to him by the person so entitled or the authority within four weeks from the service of the notice under this paragraph.

(6) A person serving notice on the district valuer under this paragraph shall serve notice in writing of that fact on the authority or, as the case may be, the person so entitled.

(7) in this paragraph, " district valuer ", in relation to a defective dwelling, means an officer of the Commissioners of Inland Revenue who is for the time being appointed by the Commissioners to be, in relation to the valuation list for the area in which the dwelling is situated, the valuation or deputy valuation officer, or one of the valuation officers or deputy valuation officers.

(8) Sub-paragraphs (2) to (4) and (7) above do not apply to Scotland ; but within the period beginning with the service under section 7(2) of this Act on the person entitled to assistance of an offer to purchase and ending with the conclusion of missives, the person entitled to assistance or the appropriate authority may by notice in writing served on the district valuer require the value of the interest in the defective dwelling to be determined or redetermined.

Effect of acquisition

4 (1) Where an interest acquired in pursuance of section 6 of this Act is or includes a dwelling in relation to which a grant has been paid under Part VII of the [1974 c. 44.] Housing Act 1974—

(a) any conditions imposed under or by virtue of that Part of that Act as conditions of the grant shall cease to be in force with respect to the dwelling with effect from the time of disposal of the interest, and

(b) the owner for the time being of the dwelling shall not be liable to make in relation to the grant any payment under section 76 of that Act (repayment of grant on demand following breach of condition) unless the liability to do so arises from a demand made before the time of disposal of the interest.

(2) In sub-paragraph (1) above—

• " dwelling " has the same meaning as in the Housing Act 1974 ; and

• " owner " has the same meaning as in Part VII of that Act.

5 (1) Where an interest acquired in pursuance of section 7 of this Act is or includes a house in relation to which a grant has been made under Part I of the [1974 c. 45.] Housing (Scotland) Act 1974—

(a) observance with respect to the house of any of the conditions specified in section 9 of that Act (conditions to be observed with respect to a house in respect of which a grant has been made) shall cease to be required with effect from the time of disposal of the interest and paragraph 7 of Schedule 2 to that Act (requirements as to records when observance of conditions ceases to be required) shall apply as it applies in the case there mentioned ; and

(b) the owner for the time being of the house shall not be liable to make in relation to the grant any payment under Schedule 2 to that Act (consequences of breach of conditions) unless the liability to do so arises from a demand made before the time of disposal of the interest.

(2) In sub-paragraph (1) above—

• " house " has the same meaning as in the [1966 c. 49.] Housing (Scotland) Act 1966 ; and

• " owner" has the same meaning as in Part I of the Housing (Scotland) Act 1974.

Overreaching effect of conveyance

6 A conveyance executed under an agreement entered into in pursuance of section 6 of this Act has effect under section 2(1) of the [1925 c. 20.] Law of Property Act 1925 to overreach any incumbrance capable of being overreached under that section as if the requirements to which that section refers as to the payment of capital money allowed any part of the purchase price paid under paragraph 9 or 11 of this Schedule to be so paid and as if, where the interest conveyed is settled land, the conveyance were made under the powers of the [1925 c. 18.] Settled Land Act 1925.

PART II Discharge of Charges on Interest

Interpretation

7 In this Part of this Schedule—

• (a) "authority" means the person acquiring an interest in a defective dwellings under an agreement entered into in pursuance of section 6 of this Act;

• " interest acquired " means the interest in the dwelling concerned of which the vendor disposes under such an agreement ;

• " purchase price " means the price which such an agreement requires the authority to pay for the interest acquired ; and

• "vendor" means the person with whom the authority enter into such an agreement; and

(b) references to a charge—

(i) include a mortgage or lien, but

(ii) do not include a rentcharge within the meaning of the [1977 c. 30.] Rentcharges Act 1977.

Effect of conveyance

8 (1) Subject to paragraph 9(3) below, a conveyance executed under an agreement entered into in pursuance of section 6 of this Act shall, by virtue of this paragraph, be effective—

(a) to discharge the interest acquired—

(i) from any relevant charge to which it is subject immediately before it is conveyed to the authority, and

(ii) from the operation of any order made by a court for the enforcement of such a charge ; and

(b) to extinguish any term of years created for the purposes of such a charge ;

without the persons entitled to or interested in such a charge, order or term of years becoming parties to or executing the conveyance.

(2) The effect of this paragraph is restricted to discharging the interest acquired from the charge concerned and does not affect personal liabilities.

(3) For the purposes of this paragraph, a charge is a relevant charge if—

(a) it secures the performance of an obligation, and

(b) it is not—

(i) a local land charge, or

(ii) a charge which would be overreached apart from this paragraph.

Application of purchase price

9 (1) Where by virtue of paragraph 8 above a conveyance will be effective to discharge a charge securing the payment of money, the authority shall, subject to sub-paragraph (2) below, apply the purchase price in the first instance in or towards the redemption of the charge and, if there is more than one, then according to their priorities.

(2) No duty arises under sub-paragraph (1) above in the case of—

(a) any charge in favour of the holders of a series of debentures issued by any body, or

(b) any charge in favour of trustees for such debenture holders which, at the date of the conveyance, is a floating charge,

and an authority shall disregard such charges in performing their duty under that sub-paragraph.

(3) If an authority—

(a) do not apply an amount which, under sub-paragraph (1) above, they are required to apply in or towards the redemption of a charge, and

(b) do not pay that amount into court in accordance with paragraph 11 below,

the charge shall not be discharged by virtue of paragraph 8 above and the interest acquired shall remain subject to the charge as security for that amount.

(4) For the purpose of determining the amount which an authority are required to pay under sub-paragraph (1) above, a person entitled to a charge shall not be permitted to exercise any right to consolidate that charge with a separate charge on other property.

(5) For the purpose of redeeming a charge in pursuance of sub-paragraph (1) above, a person may be required to accept three months or any longer notice of the intention to pay the principal or any part of it secured by the charge, together with interest to the date of payment, notwithstanding that this differs from the terms of the security as to the time and manner of payment.

(6) A charge to which the vendor or the authority themselves are entitled shall rank for payment in pursuance of sub-paragraph (1) above as it would if another person were entitled to it.

10 Paragraphs 8(1) and 9(1) above do not prevent a person from joining in the conveyance for the purpose of discharging the interest acquired from any charge without payment or for less payment than that to which he would otherwise be entitled ; and, if he does so, the person to whom the purchase price ought to be paid shall be determined accordingly.

Payment into court

11 (1) Where under paragraph 8(1) above the interest acquired is to be discharged from any charge falling within that sub-paragraph, and in accordance with paragraph 9(1) above a person is or may be entitled in respect of the charge to receive the whole or part of the purchase price, then if—

(a) for any reason difficulty arises in ascertaining how much is payable in respect of the charge ; or

(b) for any reason mentioned in sub-paragraph (2) below difficulty arises in making a payment in respect of the charge ;

the authority may pay into court on account of the purchase price the amount, if known, of the payment to be made in respect of the charge or, if that amount is not known, the whole of the purchase price or such less amount as the authority think right in order to provide for that payment.

(2) The reasons referred to in sub-paragraph (1)(b) above are—

(a) that a person who is or may be entitled to receive payment cannot be found or ascertained ;

(b) that any such person refuses or fails to make out a title, or to accept payment and give a proper discharge, or to take any steps reasonably required of him to enable the sum payable to be ascertained and paid ; or

(c) that a tender of the sum payable cannot, by reason of complications in the entitlement to payment or the want of two or more trustees or for other reasons, be effected, or not without incurring or involving unreasonable cost or delay.

(3) Without prejudice to sub-paragraph (1)(a) above, the purchase price shall be paid by the authority into court if before the execution of a conveyance under an agreement entered into in pursuance of section 6 of this Act written notice is given to them—

(a) that the vendor or a person entitled to a charge on the interest of which the vendor disposes under such an agreement so requires for the purpose of protecting the rights of persons so entitled, or for reasons related to the bankruptcy or winding up of the vendor ; or

(b) that steps have been taken to enforce any charge on the interest of which the vendor disposes under such an agreement by the bringing of proceedings in any court, or by the appointment of a receiver, or otherwise ;

and where payment is to be made into court by reason only of a notice under this sub-paragraph, and notice is given with reference to proceedings in a court specified in the notice other than the county court, payment shall be made into the court so specified.

PART III Registration of Title

12 (1) Section 123 of the [1925 c. 21.] Land Registration Act 1925 (compulsory registration of title) shall apply in relation to a conveyance executed under an agreement entered into in pursuance of section 6 of this Act whether or not the dwelling concerned is in an area in which an Order in Council under section 120 of that Act is for the time being in force.

(2) For the purpose of registration of title to the land acquired by an authority in pursuance of section 6 of this Act—

(a) the authority shall give to the Chief Land Registrar a certificate stating that the person from whom the relevant interest was acquired was entitled to convey that interest subject only to such incumbrances, rights and interests as are stated in the conveyance or summarised in the certificate, and

(b) the Chief Land Registrar shall accept such a certificate as sufficient evidence of the facts stated in it,

but if, as a result, the Chief Land Registrar has to meet a claim against him under the Land Registration Acts 1925 to 1971, the authority shall be liable to indemnify him.

(3) A certificate under sub-paragraph (2) above—

(a) shall be in a form approved by the Chief Land Registrar; and

(b) shall be signed by such officer of the authority or such other person as may be approved by the Chief Land Registrar.

Section 10.

SCHEDULE 3 Alternative Accommodation

Interpretation

1 In this Schedule—

• " dwelling-house " has the same meaning as in section 10 of this Act,

• " prospective tenant" means the person who is to be granted a tenancy under that section, and

• " current dwelling-house " means the dwelling-house which, on the assumption that the circumstances do not fall within paragraph 2 below, would be required to be let to the prospective tenant under that section.

Cases where change of dwelling-house is necessary

2 Circumstances fall within this paragraph if either of the following Cases is applicable to them—

• Case 1

  By reason of the condition of any building of which the current dwelling-house consists or of which it forms part, the dwelling-house may not safely be occupied for residential purposes.

• Case 2

  The appropriate authority intend, within a reasonable time of the completion of their acquisition of the interest concerned—

  (a)

  to demolish or reconstruct the building which consists of or includes the defective dwelling in question, or

  (b)

  to carry out work on any building or land in which the interest concerned subsists,

  and cannot reasonably do so if the current dwelling-house remains in residential occupation.

Suitability of accommodation

3 The suitability of accommodation is to be assessed by reference to the following matters, that is—

(a) whether it is similar as regards extent and character to the accommodation afforded by the current dwelling-house;

(b) whether it is reasonably suitable to the means of the prospective tenant and his family ; and

(c) whether it is reasonably suitable to the needs of the prospective tenant and his family having regard to proximity to place of work and place of education.

Section 27.

SCHEDULE 4 Public Sector Authorities

1 In this Act " public sector authority " means—

• In England and Wales, a county council, a district council, the Greater London Council, a London borough council, the Common Council of the City of London and the Council of the Isles of Scilly.

• In Scotland, a regional, islands or district council.

• An authority being a predecessor of any council mentioned above.

• A joint board (and in Scotland a joint committee) every constituent member of which is or is appointed by a council mentioned above or by an authority being a predecessor of any such council.

• The Peak Park Joint Planning Board.

• The Lake District Special Planning Board.

• A water authority.

• The Housing Corporation.

• The Scottish Special Housing Association.

• A housing association which is registered in the register of housing associations established under section 13 of the [1974 c. 44.] Housing Act 1974 but is not a registered society (within the meaning of section 74 of the [1965 c. 12.] Industrial and Provident Societies Act 1965) whose rules—

  (a)

  restrict membership to persons who are tenants or prospective tenants of the association, and

  (b)

  preclude the granting or assignment of tenancies to persons other than members,

  or any housing association being a predecessor of such an association.

• The Commission for the New Towns.

• A development corporation established by an order made or having effect as if made under the [1981 c. 64.] New Towns Act 1981 or the [1968 c. 16.] New Towns (Scotland) Act 1968.

• The Development Board for Rural Wales.

• The National Coal Board.

• The United Kingdom Atomic Energy Authority.

2 (1) For the purposes of this Act, the Secretary of State may by order—

(a) if he is satisfied that a body corporate meets the requirements of sub-paragraph (3) below, specify it as a body that is to be treated as a public sector authority, and

(b) whether or not he specifies it under paragraph (a) above, if he is satisfied that a body corporate met those requirements during any period, specify it as a body that is to be treated as having been a public sector authority during that period.

(2) An order under this paragraph may, in the case of a body previously specified under sub-paragraph (1)(a) above which the Secretary of State is satisfied has ceased to meet those requirements on any date, provide that it is to be treated for the purposes of this Act as having ceased to be a public sector authority on that date.

(3) The requirements mentioned in sub-paragraphs (1) and (2) above are that—

(a) the affairs of the body are managed by its members and its members hold office as such by virtue of their appointment to that or another office by a Minister of the Crown under any enactment, or

(b) it is a subsidiary (within the meaning of the [1948 c. 38.] Companies Act 1948) of such a body.

3 (1) For the purposes of this Act, the Secretary of State may by order—

(a) if he is satisfied that a housing association meets the requirements of sub-paragraph (3) below, specify it as an association that is to be treated as a public sector authority, and

(b) whether or not he specifies it under paragraph (a) above, if he is satisfied that a housing association met those requirements during any period, specify it as an association that is to be treated as having been a public sector authority during that period.

(2) An order under this paragraph may, in the case of an association previously specified under sub-paragraph (1)(a) above which the Secretary of State is satisfied has ceased to meet those requirements on any date, provide that it is to be treated for the purposes of this Act as having ceased to be a public sector authority on that date.

(3) The requirements mentioned in sub-paragraphs (1) and (2) above are that the objects or powers of the association include the provision of housing accommodation for individuals employed at any time by a public sector authority or their dependants.