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;

F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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 F3registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F62B 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 F8section 20(1) of the Housing (Scotland) Act 2010 (asp 17),

F9“registered social landlord” has the same meaning as in Part I of the Housing Act 1996, and

F10“unregistered”, in relation to a housing association, means F11not registered in the register of social landlords maintained under F12section 20(1) of the Housing (Scotland) Act 2010 (asp 17).

F10“unregistered”, in relation to a housing association, means—

(a)

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

(b)

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

(c)

not registered as a social landlord under F13Part 2 of the Housing (Scotland) Act 2010 (asp 17).

Registration

F143. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F154. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F165. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F176. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F187. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disposal of land

F198. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F219F20Control of disposals by unregistered housing associations

F22(1)

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

F23(1A)

Subject to section 10, the consent of F24the 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 “F24the relevant regulator” means,—

F25(a)

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

(b)

if the land is in Wales, the Welsh Ministers.

(2)

F26Consent 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 F27consent under this section is valid in favour of a person claiming under the association notwithstanding that F27that 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).

F28(4)

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

(5)

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

F29(6)

Consent under this section must be in writing.

F3010 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 F31sections 117 to 121 and 124 of the Charities Act 2011 it cannot be made without an order of the court or the F32Charity Commission; but F33before making an order in such a case the F32Charity Commission shall consult,—

F34(a)

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 F35... 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 F36Schedule 1 to the Housing Act 1985 or F37paragraphs 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) F38or

(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, F39...

F39(e)

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

F40(f)

a letting of land under a tenancy or licence that is an occupation contract, or

(g)

a letting of land under a tenancy or licence under what would be an occupation contract if notice had been given (see Schedule 2 to the Renting Homes (Wales) Act 2016 (anaw 1)), other than a long tenancy within the meaning of letting of the type described in paragraph 8 of that Schedule (meaning of long tenancies).

(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.

F4111. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4212Avoidance 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.

F4313. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4414. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4515. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4615A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Constitution, change of rules, amalgamation and dissolution

F4716. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4817. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4918. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5120. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5221. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5322. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5423. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Accounts and audit

F5524. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5625. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5726. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5827. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5927A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Inquiries into affairs of housing associations

F6028. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6129. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6230. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6331. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6432. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Miscellaneous

F6533. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6633A Provision of services between the Corporations.

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

34 Provision of land by county councils.

(1)

Where a housing association wishes to erect houses F67in 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 M1Housing 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—

F68(za)

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);

F69(a)

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 F70Corporation) 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 F71sections 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.

F7236A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary

F7337. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7438Definitions relating to charities.

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

F7539 Minor definitions.

In this Part—

F76“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.

F77“mental disorder” has the same meaning as in F78the M2Mental Health Act 1983 or the M3Mental Health (Scotland) Act 1984;

F79“occupation contract” has the same meaning as in section 7 of the Renting Homes (Wales) Act 2016 (anaw 1);

“secure tenancy” has the same meaning as in section 79 of the M4Housing Act 1985 or F8044 of the Housing (Scotland) Act 1987;

F81. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8240 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):—

F83appropriate registrar (in relation to a society registered under the 1965 Act).

section 37

F84assured agricultural occupancy

F84section 39

F84assured tenancy

F84section 39

F83bank

section 106

charge (in relation to Scotland)

section 106

charity

section 38(a)

F83committee (in relation to a society registered under the 1965 Act)

section 37

F83compulsory disposal (in Schedule 2)

paragraph 6 of that Schedule

co-operative housing association

section 1(2)

F83co-opted member (in relation to the committee of a society registered under the 1965 Act)

section 37

F83the Companies Act

section 106

F85. . .

F85. . .

F83dissolved under the 1965 Act (in relation to a society registered under that Act)

section 37

district (of a local housing authority)

section 104(2)

F83dwelling

section 106

F83eligible for registration (in relation to a housing association)

section 4

F83exempted disposal (in Schedule 2)

paragraph 5 of that Schedule

F83friendly society

section 106

fully mutual (in relation to a housing association)

section 1(2)

F83hostel

section 106

house

section 106

F83housing activities

section 106

housing association

section 1(1)

. . . F86

. . . F86

housing trust

section 2

F83insurance company

section 106

local housing authority

section 104

F83member of family

section 105

F83mental disorder

section 39

mortgage (in relation to Scotland)

section 106

F87occupation contract

section 39

F83the 1965 Act

section 37

F83register, registered, registration and unregistered (in relation to a housing association)

section F88 3

F83registered charity

section 38(b)

F89registered social landlord

section 2B

F83relevant disposal (in Schedule 2)

paragraph 4 of that Schedule

. . . F86

. . . F86

secure tenancy

section 39

F83shared ownership lease

section 106

F90shared ownership agreement (in relation to Scotland)

F90section 106

F83standard scale

section 39

F83trustee savings bank

section 106

F91unregistered (in relation to a housing association)

section 2B