Part I Regulation of Housing Associations

Introductory

1 Meaning of “housing association” and related expressions.

1

In this Act “housing association” means a society, body of trustees or company—

a

which is established for the purpose of, or amongst whose objects or powers are included those of, providing, constructing, improving or managing, or facilitating or encouraging the construction or improvement of, housing accommodation, and

b

which does not trade for profit or whose constitution or rules prohibit the issue of capital with interest or dividend exceeding such rate as may be prescribed by the Treasury, whether with or without differentiation as between share and loan capital F1;

F2F3but does not include Scottish Homes.

2

In this Act “fully mutual”, in relation to a housing association, means that the rules of the association—

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;

and “co-operative housing association” means a fully mutual housing association which is a society registered under the M1Industrial and Provident Societies Act 1965 F4(in this part referred to as “the 1965 Act”) .

3

In this Act “self-build society” means a housing association whose object is to provide, for sale to, or occupation by, its members, dwellings built or improved principally with the use of its members’ own labour.

2 Meaning of “housing trust”.

In this Act “housing trust” means a corporation or body of persons which—

a

is required by the terms of its constituent instrument to use the whole of its funds, including any surplus which may arise from its operations, for the purpose of providing housing accommodation, or

b

is required by the terms of its constituent instrument to devote the whole, or substantially the whole, of its funds to charitable purposes and in fact uses the whole, or substantially the whole, of its funds for the purpose of providing housing accommodation.

F52A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2BF6 Meaning of “registered housing association”, “registered social landlord” etc.

In this Act, unless the context otherwise requires—

  • “registered housing association” means a housing association registered in the register F7of social landlords maintained under F85section 20(1) of the Housing (Scotland) Act 2010 (asp 17),

  • F8“registered social landlord” has the same meaning as in Part I of the Housing Act 1996, and

  • F74“unregistered”, in relation to a housing association, means F86not registered in the register of social landlords maintained under F87section 20(1) of the Housing (Scotland) Act 2010 (asp 17).

  • F74“unregistered”, in relation to a housing association, means—

    1. a

      not registered as a provider of social housing under Part 2 of the Housing and Regeneration Act 2008,

    2. b

      not registered as a social landlord under Part 1 of the Housing Act 1996, and

    3. c

      not registered as a social landlord under F88Part 2 of the Housing (Scotland) Act 2010 (asp 17).

Registration

F93. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F104. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F115. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F126. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F137. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disposal of land

F148. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C3C1F159F73Control of disposals by unregistered housing associations

F161

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C2F171A

Subject to section 10, the consent of F75the relevant regulator is required for any disposition of grant-aided land (as defined in Schedule 1) by an unregistered housing association; and for this purpose “F75the relevant regulator” means,—

C5F76a

if the land is in England, the Regulator of Social Housing, and

b

if the land is in Wales, the Welsh Ministers.

2

F18Consent under this section may be so given—

a

generally to all housing associations or to a particular housing association or description of association;

b

in relation to particular land or in relation to a particular description of land;

and may be given subject to conditions.

3

A disposition by a housing association which requires F19consent under this section is valid in favour of a person claiming under the association notwithstanding that F19that consent has not been given; and a person dealing with the association, or with a person claiming under the association, shall not be concerned to see or inquire whether any such consent has been given.

This subsection has effect subject to section 12 (avoidance of certain dispositions of houses without consent).

F204

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

For the purposes of this section “disposition” means sale, lease, mortgage, charge or any other disposal.

F776

Consent under this section must be in writing.

C4F2110 Dispositions excepted from s. 9.

1

A disposition by an unregistered housing association which is a charity is not within section 9 if by virtue of F82sections 117 to 121 and 124 of the Charities Act 2011 it cannot be made without an order of the court or the F72Charity Commission; but F22before making an order in such a case the F72Charity Commission shall consult,—

C6F78a

in the case of dispositions of land in England, the Regulator of Social Housing, and

b

in the case of dispositions of land in Wales, the Welsh Ministers.

2

A letting F23... by an unregistered housing association which is a housing trust, is not within section 9 if it is—

a

a letting of land under a secure tenancy, or

b

a letting of land under what would be a secure tenancy but for any of paragraphs 2 to 12 of F24Schedule 1 to the Housing Act 1985 or F25paragraphs 1 to 8 of Schedule 2 to the Housing (Scotland) Act 1987 (tenancies excepted from being secure tenancies for reasons other than that they are long leases) F26or

c

a letting of land under an assured tenancy or an assured agricultural occupancy, or

d

a letting of land in England or Wales under what would be an assured tenancy or an assured agricultural occupancy but for any of paragraphs 4 to 8 of Schedule 1 to the Housing Act 1988, F79...

F79e

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

The grant by an unregistered housing association which does not satisfy the landlord condition in section 80 of the Housing Act 1985 (bodies which are capable of granting secure tenancies) of a lease for a term ending within the period of seven years and three months beginning on the date of the grant is not within section 9 unless—

a

there is conferred on the lessee (by the lease or otherwise) an option for renewal for a term which, together with the original term, would expire outside that period, or

b

the lease is granted wholly or partly in consideration of a fine.

4

In subsection (3) the expression “lease” includes an agreement for a lease and a licence to occupy, and the expressions “grant” and “term” shall be construed accordingly.

F2711. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12F28Avoidance of certain disposals of houses without consent.

A disposal of a house by a housing association made without the consent required by section 9 is void unless—

a

the disposal is to an individual (or to two or more individuals), and

b

the disposal does not extend to any other house.

Control of payments to members, etc.

F2913. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3115. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3215A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Constitution, change of rules, amalgamation and dissolution

F3316. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3417. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3518. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3619. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3720. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3821. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3922. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4023. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Accounts and audit

F4124. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4225. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4326. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4427. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4527A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Inquiries into affairs of housing associations

F4628. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4729. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4830. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4931. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5032. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Miscellaneous

F5133. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8033A Provision of services between the Corporations.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

34 Provision of land by county councils.

1

Where a housing association wishes to erect houses F52in Englandwhich in the opinion of the Secretary of State are required and the local housing authority in whose district the houses are proposed to be built are unwilling to acquire land with a view to selling or leasing it to the association, the county council, on the application of the association, may acquire land for that purpose.

2

For that purpose the county council may exercise all the powers of a local housing authority under Part II of the M2Housing Act 1985 (provision of housing) in regard to the acquisition and disposal of land; and the provisions of that Act as to the acquisition of land by local housing authorities for the purposes of that Part apply accordingly.

35 Housing trusts: power to transfer housing to local housing authority.

1

A housing trust may—

a

sell or lease to the local housing authority the houses provided by the trust, or

b

make over to the authority the management of the houses.

2

So far as subsection (1) confers power to dispose of land—

F81za

it does not apply to private registered providers of social housing (on whom power to dispose of land is conferred by section 171 of the Housing and Regeneration Act 2008);

F53a

it does not apply to registered social landlords (on whom power to dispose of land is conferred by section 8 of the Housing Act 1996);.

b

it has effect subject to section 9 (dispositions requiring consent of F54Corporation) where the housing trust is an unregistered housing association and the land is grant-aided land (as defined in Schedule 1); and

c

it has effect subject to F83sections 117 to 121 of the Charities Act 2011 (restrictions on dispositions of charity land) where the housing trust is a charity.

36 Housing trusts: functions of Secretary of State with respect to legal proceedings.

1

If it appears to the Secretary of State—

a

that the institution of legal proceedings is requisite or desirable with respect to any property belonging to a housing trust, or

b

that the expediting of any such legal proceedings is requisite or desirable,

he may certify the case to the Attorney-General who may institute legal proceedings or intervene in legal proceedings already instituted in such manner as he thinks proper in the circumstances.

2

Before preparing a scheme with reference to property belonging to a housing trust, the court or body which is responsible for making the scheme shall communicate with the Secretary of State and consider any recommendations made by him with reference to the proposed scheme.

F5536A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary

F5637. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8438Definitions relating to charities.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5739 Minor definitions.

In this Part—

  • F58“assured tenancy” has, in England and Wales, the same meaning as in Part I of the Housing Act 1988 and, in Scotland, the same meaning as in Part II of the Housing (Scotland) Act 1988;

  • “assured agricultural occupancy” has the same meaning as in Part I of the Housing Act 1988.

  • F59“mental disorder” has the same meaning as in F60the M3Mental Health Act 1983 or the M4Mental Health (Scotland) Act 1984;

  • “secure tenancy” has the same meaning as in section 79 of the M5Housing Act 1985 or F6144 of the Housing (Scotland) Act 1987;

  • F62. . .

F6340 Index of defined expressions: Part I.

The following Table shows provisions defining or explaining expressions used in this Part (other than provisions defining or explaining an expression used only in the same section or paragraph):—

F64appropriate registrar (in relation to a society registered under the 1965 Act).

section 37

F65assured agricultural occupancy

F65section 39

F65assured tenancy

F65section 39

F64bank

section 106

charge (in relation to Scotland)

section 106

charity

section 38(a)

F64committee (in relation to a society registered under the 1965 Act)

section 37

F64compulsory disposal (in Schedule 2)

paragraph 6 of that Schedule

co-operative housing association

section 1(2)

F64co-opted member (in relation to the committee of a society registered under the 1965 Act)

section 37

F64the Companies Act

section 106

F66. . .

F66. . .

F64dissolved under the 1965 Act (in relation to a society registered under that Act)

section 37

district (of a local housing authority)

section 104(2)

F64dwelling

section 106

F64eligible for registration (in relation to a housing association)

section 4

F64exempted disposal (in Schedule 2)

paragraph 5 of that Schedule

F64friendly society

section 106

fully mutual (in relation to a housing association)

section 1(2)

F64hostel

section 106

house

section 106

F64housing activities

section 106

housing association

section 1(1)

. . . F67

. . . F67

housing trust

section 2

F64insurance company

section 106

local housing authority

section 104

F64member of family

section 105

F64mental disorder

section 39

mortgage (in relation to Scotland)

section 106

F64the 1965 Act

section 37

F64register, registered, registration and unregistered (in relation to a housing association)

section F68 3

F64registered charity

section 38(b)

F69registered social landlord

section 2B

F64relevant disposal (in Schedule 2)

paragraph 4 of that Schedule

. . . F67

. . . F67

secure tenancy

section 39

F64shared ownership lease

section 106

F70shared ownership agreement (in relation to Scotland)

F70section 106

F64standard scale

section 39

F64trustee savings bank

section 106

F71unregistered (in relation to a housing association)

section 2B