Housing Act 2004

Financial arrangements while order is in force E+W

5 (1) This paragraph applies to relevant expenditure of a local housing authority who have made an interim EDMO. E+W

(2) “Relevant expenditure” means—

(a) expenditure incurred by the authority with the consent of the relevant proprietor, or

(b) any other expenditure reasonably incurred by the authority,

in connection with performing their duties under section 135(1) to (3) in respect of the dwelling (including any premiums paid for insurance of the premises).

(3) Rent or other payments which the authority have collected or recovered, by virtue of this Chapter, from persons occupying or having the right to occupy the dwelling may be used by the authority to meet—

(a) relevant expenditure, and

(b) any amounts of compensation payable to a third party by virtue of an order under section 134(4) or 138(2) or to a dispossessed landlord or tenant by virtue of an order under paragraph 22(5).

(4) The authority must pay to the relevant proprietor—

(a) any amount of rent or other payments collected or recovered as mentioned in sub-paragraph (3) that remains after deductions to meet relevant expenditure and any amounts of compensation payable as mentioned in that sub-paragraph, and

(b) (where appropriate) interest on that amount at a reasonable rate fixed by the authority,

and such payments are to be made at such intervals as the authority consider appropriate.

(5) The interim EDMO may provide for—

(a) the rate of interest which is to apply for the purposes of paragraph (b) of sub-paragraph (4); and

(b) the intervals at which payments are to be made under that sub-paragraph.

Paragraph 26(1)(c) enables an appeal to be brought where the order does not provide for both of those matters.

(6) The authority must—

(a) keep full accounts of their income and expenditure in respect of the dwelling; and

(b) afford to the relevant proprietor, and to any other person who has an estate or interest in the dwelling, all reasonable facilities for inspecting, taking copies of and verifying those accounts.

(7) The relevant proprietor may apply to a residential property tribunal for an order—

(a) declaring that an amount shown in the accounts as expenditure of the authority does not constitute relevant expenditure (see sub-paragraph (2));

(b) requiring the authority to make such financial adjustments (in the accounts and otherwise) as are necessary to reflect the tribunal’s declaration.

(8) In this paragraph—

• “dispossessed landlord or tenant” means a person who was a lessor, lessee, licensor or licensee under a lease or licence determined by an order under paragraph 22;

• “expenditure” includes administrative costs.

Commencement Information

I1 Sch. 7 para. 5 wholly in force at 16.6.2006; Sch. 7 para. 5 not in force at Royal Assent see s. 270(4)(5); Sch. 7 para. 5 in force for E. at 6.4.2006 by S.I. 2006/1060, art. 2(1)(a) (with Sch.); Sch. 7 para. 5 in force for W. at 16.6.2006 by S.I. 2006/1535, art. 2(a) (with Sch.)