Part II E+W+S Housing Associations

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.