Housing Act 1988

Registration and issue of guidance E+W+S

48 Permissible purposes, objects or powers. E+W+S

(1) For subsections (3) and (4) of section 4 (eligibility for registration) of the 1985 Act there shall be substituted the following subsections—

“(3) The permissible additional purposes or objects are—

(a) providing land, amenities or services, or providing, constructing, repairing or improving buildings, for the benefit of the association’s residents, either exclusively or together with other persons;

(b) acquiring, or repairing and improving, or creating by the conversion of houses or other property, houses to be disposed of on sale, on lease or on shared ownership terms;

(c) constructing houses to be disposed of on shared ownership terms;

(d) managing houses which are held on leases or other lettings (not being houses falling within subsection (2)(a) or (b)) or blocks of flats;

(e) providing services of any description for owners or occupiers of houses in arranging or carrying out works of maintenance, repair or improvement, or encouraging or facilitating the carrying out of such works;

(f) encouraging and giving advice on the formation of other housing associations or providing services for, and giving advice on the running of, such associations and other voluntary organisations concerned with housing, or matters connected with housing.

(4) A housing association shall not be ineligible for registration by reason only that its powers include power—

(a) to acquire commercial premises or businesses as an incidental part of a project or series of projects undertaken for purposes or objects falling within subsection (2) or (3);

(b) to repair, improve or convert any commercial premises acquired as mentioned in paragraph (a) or to carry on, for a limited period, any business so acquired;

(c) to repair or improve houses, or buildings in which houses are situated, after the tenants have exercised, or claimed to exercise, acquisition rights;

(d) to acquire houses to be disposed of at a discount to tenants to whom section 58 of the Housing Act 1988 applies (tenants of charitable housing associations etc.).

(5) In this section—

• “acquisition right” means—

  (a)

  in England and Wales, the right to buy or the right to be granted a shared ownership lease under Part V of the Housing Act 1985;

  (b)

  in Scotland, a right to purchase under section 61 of the Housing (Scotland) Act 1987;

• “block of flats” means a building—

(a) containing two or more flats which are held on leases or other lettings; and

(b) occupied or intended to be occupied wholly or mainly for residential purposes;

• “disposed of on shared ownership terms” means—

(a) in England and Wales, disposed of on a shared ownership lease;

(b) in Scotland, disposed of under a shared ownership agreement;

• “letting” includes the grant—

(a) in England and Wales, of a licence to occupy;

(b) in Scotland, of a right or permission to occupy;

• “residents”, in relation to a housing association, means the persons occupying the houses or hostels provided or managed by the association;

• “voluntary organisation” means an organisation whose activities are not carried on for profit.”

(2) The Secretary of State may by order made by statutory instrument amend the subsections substituted by subsection (1) above, but not so as to restrict or limit the permissible purposes, objects or powers.

(3) An order under subsection (2) above may contain such incidental, supplemental or transitional provisions as the Secretary of State thinks fit.

(4) A statutory instrument containing an order under subsection (2) above shall be subject to annulment in pursuance of a resolution of either House of Parliament.

49 Guidance as to management of accommodation by registered housing associations. E+W+S

After section 36 of the 1985 Act there shall be inserted the following section—

“36A Issue of guidance by the Corporation.

(1) In accordance with the provisions of this section, the Corporation may issue guidance with respect to the management of housing accommodation by registered housing associations and, in considering under the preceding provisions of this Part whether action needs to be taken to secure the proper management of an association’s affairs or whether there has been mismanagement, the Corporation may have regard (among other matters) to the extent to which any such guidance is being or has been followed.

(2) Guidance issued under this section may make different provision in relation to different cases and, in particular, in relation to different areas, different descriptions of housing accommodation and different descriptions of registered housing associations.

(3) Without prejudice to the generality of subsections (1) and (2), guidance issued under this section may relate to—

(a) the housing demands for which provision should be made and the means of meeting those demands;

(b) the allocation of housing accommodation between individuals;

(c) the terms of tenancies and the principles upon which the levels of rent should be determined;

(d) standards of maintenance and repair and the means of achieving these standards; and

(e) consultation and communication with tenants.

(4) Guidance issued under this section may be revised or withdrawn but, before issuing or revising any guidance under this section, the Corporation—

(a) shall consult such bodies appearing to it to be representative of housing associations as it considers appropriate; and

(b) shall submit a draft of the proposed guidance or, as the case may be, the proposed revision to the Secretary of State for his approval.

(5) If the Secretary of State gives his approval to a draft submitted to him under subsection (4)(b), the Corporation shall issue the guidance or, as the case may be, the revision concerned in such manner as the Corporation considers appropriate for bringing it to the notice of the housing associations concerned.”