http://www.legislation.gov.uk/id/ukpga/2008/17

C2Part 2Regulation of Social Housing

Annotations:

Modifications etc. (not altering text)

Pt. 2 modified (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 16 para. 69(2); S.I. 2012/628, art. 6(i) (with arts. 911141517)

Chapter 1Introduction

Preliminary

59I53Purpose

The purpose of this Part is to regulate the provision of social housing (as defined in sections 68 to 77) by English bodies (as defined in section 79).

I7760Structural overview

1

This Part replaces the system of “registered social landlords” under Part 1 of the Housing Act 1996 (c. 52).

2

That Part will continue to apply in relation to Wales (see section 61).

3

Certain provisions of that Part—

a

are applied in relation to England by this Part (see section 179), or

b

are preserved although they apply to England only (see section 124).

4

The Table describes the content of this Part.

Chapter	Sections	Topic	Contents
1	59 to 80	Introduction	a Preliminary b Social housing c Other key concepts
F582	92A to 109	The Social Housing Regulator	a The regulator and the Regulation Committee b Fundamental objectives c Powers d Money e Information
3	110 to 121	Registration	a Introduction b Eligibility c Procedure
4	122 to 169	Registered providers	a General provisions b Accounts c Insolvency etc. d Restructuring and dissolution
5	170 to 191	Disposal of property F161by private registered providers	a Introductory F279b Notification of regulator F300c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F300d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e Miscellaneous f Right to acquire F300g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6	192 to 217	Regulatory powers	a Standards b Monitoring c Management and constitution d Guidance e Managers of social housing
7	218 to F183269B	Enforcement powers	a General b Enforcement notice c Penalty d Compensation e Management f Restrictions on dealings g Suspension and removal of officers F247h Censure of local authority employees
8	270 to 278	General	a Interpretation b Miscellaneous

I15561Restriction of “registered social landlord” system to Wales

1

Part 1 of the Housing Act 1996 (c. 52) (social rented sector) is amended as follows (and the title of Part 1 becomes “Social Rented Sector in Wales”).

2

Before section 1 (register of social landlords) insert—

A1Introduction
This Chapter provides for the registration of social landlords in Wales.

3

In section 1—

a

for “The Relevant Authority” substitute “ The Welsh Ministers ”, and

b

omit subsections (1A) and (1B).

4

After section 1 insert—

1AWelsh bodies
In this Chapter “Welsh body” means a body which is—
a
a registered charity whose address, for the purposes of registration by the Charity Commission for England and Wales, is in Wales,
b
F208a registered society whose registered office for the purposes of the Industrial and Provident Societies Act 1965 is in Wales, or
c
a company within the meaning of the Companies Act 2006 which has its registered office for the purposes of that Act in Wales.

5

In section 2 (eligibility for registration)—

a

in subsection (1), for “A body” substitute “ A Welsh body ”,

b

in subsection (2) after “that the body is” insert “ principally concerned with Welsh housing, is ”,

c

after subsection (2) insert—

2A
A body is principally concerned with Welsh housing if the Welsh Ministers think—
a
that it owns housing only or mainly in Wales, or
b
that its activities are principally undertaken in respect of Wales;
and once a body has been registered in reliance on paragraph (a) or (b) it does not cease to be eligible for registration by virtue only of ceasing to satisfy that paragraph.

d

in subsection (7) for “Secretary of State” (in each place) substitute “ Welsh Ministers ”, and

e

in subsection (8) for “either House of Parliament” substitute “ the National Assembly for Wales ”.

6

In section 3 (registration)—

a

in subsection (1) for “any body” substitute “ any Welsh body ”, and

b

in subsection (4) for “A body” substitute “ A Welsh body ”.

7

The table sets out substitutions which have effect throughout the Part (except section 51 and Schedule 2); and where necessary in consequence of those substitutions, for words in the singular substitute appropriate corresponding words in the plural.

Expression	Substitution
“the Relevant Authority”	“the Welsh Ministers”
“the Authority”	“the Welsh Ministers”
“the Relevant Authority's”	“the Welsh Ministers”

8

Omit section 56 (meaning of “the Relevant Authority”).

9

Sections 62 and 63 make other consequential amendments.

I20862References to Welsh Ministers

In the following provisions of the Housing Act 1996 (c. 52)—

a

for “Secretary of State” substitute “ Welsh Ministers ”,

b

for “Secretary of State makes” substitute “ Welsh Ministers make ”,

c

for “he” substitute “ they ”,

d

for “him” substitute “ them ” (except in section 12A(4)), and

e

for “considers” substitute “ consider ”.

Provision	Topic
Section 9(1A)(b)	Consent for disposal of land
Section 12A(4)	Right of first refusal: regulations
Section 15A(5)	Deferred resale agreements: order
Section 17(1), (2)(b), (5)(b) and (6)	Right to acquire: orders and regulations
Section 18(5)(b)	Social housing grants: appointment of agent
Section 23(6)	Loans: approved schemes
Section 27A(3)	Grants to other bodies: further provision
Section 29(1), (2) and (3)	Commutation of special residual subsidy
Section 30(5)(b)	Collection of information: notice
Section 39(3)	Insolvency etc: order defining terms
Section 46(7)(b)	Appointment of manager: order
Section 52(1) and (3)	Orders: general
Section 53(1), (4) and (5)	Determinations: general
Section 55(2)	Consequential: order
Paragraph 9(3A)(b) of Schedule 1	Change of rules of F332registered society: consent
Paragraph 11(3A)(b) of Schedule 1	Change of articles of company: consent
Paragraph 15A(1) of Schedule 1	Transfer of assets of charity on dissolution: order

I11763References to National Assembly for Wales

In the following provisions of the Housing Act 1996 (c. 52) for “either House of Parliament” substitute “ the National Assembly for Wales ”.

Provision	Topic
Section 12A(8)(b)	Right of first refusal: regulations
Section 15A(6)(b)	Deferred resale agreements: order
Section 17(7)	Right to acquire: orders and regulations
Section 27A(10)	Grants to other bodies: order
Section 39(3)	Insolvency: order
Section 55(3)	Consequential: order
Paragraph 15A(4) of Schedule 1	Transfer of assets of charity on dissolution: order

64Dissolution of Housing Corporation

I81

The Secretary of State shall by order make provision for the dissolution of the Housing Corporation.

I82

The Secretary of State may by order make consequential amendment of enactments referring to the Housing Corporation.

I893

Omit section 33A of the Housing Associations Act 1985 (c. 69) (provision of services between the Corporations).

65I177Transfer schemes

1

The Secretary of State may make one or more schemes for the transfer of the Housing Corporation's property, rights or liabilities to—

a

the regulator,

b

the HCA, or

c

the Secretary of State.

2

On the transfer date, the designated property, rights or liabilities are transferred and vest in accordance with the scheme.

3

Schedule 6 applies to a scheme under this section.

4

In this section—

“designated”, in relation to a scheme, means specified in or determined in accordance with the scheme;
“the transfer date” means the date specified by a scheme as the date on which the scheme is to have effect.

5

Schedule 7 makes provision about the tax implications of schemes under this section (and schemes under section 51).

66I163Interim arrangements

The Secretary of State may by notice require the Housing Corporation to provide staff, premises, facilities or other assistance to—

a

the regulator, or

b

the HCA.

I112 I1967Transitional arrangements

1

The Secretary of State may by order transfer functions of the Housing Corporation to—

a

the regulator,

b

the HCA, or

c

the regulator and the HCA jointly or concurrently.

2

An order under subsection (1) may make provision in relation to English registered social landlords which is similar to any provision made by this Part in relation to registered providers.

3

“English registered social landlord” means a body—

a

which is registered as a social landlord under Part 1 of the Housing Act 1996, and

b

which does not fall within paragraphs (a) to (c) of section 56(2) of that Act (Welsh bodies).

4

The Secretary of State may by order make further provision in respect of a function transferred under this section (which may, in particular, include provision for the function to cease to be exercisable).

5

Provision made under this section, including provision made by virtue of section 320(1)(d), may modify an enactment.

6

Provision under section 322(1) in connection with the coming into force of a provision of this Act may, in particular, include transitional provision having regard to the effect of provision made under this section.

Other key concepts

F478Regulator of Social Housing

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

any profits from its activities will be used to benefit the local community (otherwise than by being paid directly to members),

b

individuals who live or work in the specified area have the opportunity to become members of the trust (whether or not others can also become members), and

c

the members of the trust control it.

I159 I7980Provider of social housing

1

In this Chapter a reference to the provider of social housing is to be construed as follows.

Type of social housing	Provider
Low cost rental accommodation	The landlord
Low cost home ownership accommodation: shared ownership	The landlord
Low cost home ownership accommodation: equity percentage	“The seller” within the meaning of section 70(5)(a)
Low cost home ownership accommodation: shared ownership trust	The “social landlord” within the meaning of paragraph 7(3) of Schedule 9 to the Finance Act 2003

2

Chapter 3 provides for the establishment of a register of providers of social housing: persons listed in the register—

a

may be referred to in an enactment or other instrument as “registered providers of social housing”, and

b

are referred to in this Part as “registered providers”.

F863

Persons listed in the register who are not local authorities—

a

may be referred to in an enactment or other instrument as “private registered providers of social housing”, and

b

are referred to in this Part as “private registered providers”.

C2Chapter 2The Social Housing Regulator

Constitution

F14081Establishment

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

F30482Membership

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

F15683Tenure

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

F6984Chief executive

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

F26285Other staff

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

Proceedings

F686Fundamental objectives

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

F26987Procedure

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

F888Conflict of interest

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

F13689Committees

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

F9290Delegation

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

F22491Seal

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

F29192Annual report

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

F292The regulator and the Regulation Committee

Annotations:

Amendments (Textual)

F292

Ss. 92A-92K and cross-heading inserted (15.1.2012 for the insertion of ss. 92B(1), 92C, 92D, 92E, 92F, 92G, 92H, 92I, 1.4.2012 in so far as not already in force) by Localism Act 2011 (c. 20), s. 240(2), Sch. 16 para. 26 (with Sch. 16 para. 69); S.I. 2012/57, art. 4(1)(t)(ii) (with arts. 679-11); S.I. 2012/628, art. 6(i) (with arts. 911141517)

C292AC2Regulation functions of the HCA

1

In this Part “ the regulator ” means the HCA.

2

In any other enactment or instrument “ the Regulator of Social Housing ” means the HCA.

C2 92B C2The Regulation Committee

1

The HCA must establish a committee to be known as the Regulation Committee.

2

The functions conferred on the HCA as the regulator by virtue of this Part, or as the Regulator of Social Housing by virtue of any other enactment or instrument, are exercisable by the HCA acting through the Regulation Committee.

3

Those functions are not exercisable by the HCA in any other way.

4

Subsections (2) and (3) are subject to any express provision to the contrary in this Part or in the enactment or instrument in question.

5

References in this Part to the functions of the regulator are to the functions mentioned in subsection (2).

6

References in any enactment or instrument to the social housing functions of the HCA or the Regulator of Social Housing are to the functions mentioned in subsection (2).

C2 92C C2Membership of the Regulation Committee

1

The Regulation Committee is to consist of—

a

a person appointed by the Secretary of State to chair the Committee (“the chair”), and

b

not less than four and not more than six other members appointed by the Secretary of State.

2

The chair of the Committee must not be a member of the HCA immediately prior to the chair's appointment as such, but becomes a member of the HCA on appointment.

3

One other member of the Committee may be a member of the HCA.

4

The member within subsection (3) is referred to in this Part as the internal member.

5

The remaining members of the Committee must be neither a member nor a member of staff of the HCA.

6

A member within subsection (5) is referred to in this Part as an external member.

7

The Secretary of State must consult the chair before appointing the other members.

8

In appointing a person to be a member, the Secretary of State must have regard to the desirability of appointing a person who has experience of, and has shown some capacity in, a matter relevant to the exercise of the functions of the regulator.

9

In appointing a person to be a member, the Secretary of State must be satisfied that the person will have no financial or other interest likely to affect prejudicially the exercise of the person's functions as a member.

10

The Secretary of State may require any person whom the Secretary of State proposes to appoint as a member to provide such information as the Secretary of State considers necessary for the purposes of subsection (9).

the Secretary of State thinks is otherwise unable, unfit or unsuitable to exercise the functions of that member.

C2 92E C2 Remuneration etc of members

1

The Secretary of State may require the HCA to pay to the chair such additional remuneration and allowances as the Secretary of State may decide.

2

The Secretary of State may require the HCA to pay to the external members of the Regulation Committee such remuneration and allowances as the Secretary of State may decide.

3

3

A power of the HCA that is a function of the regulator—

a

may be exercised separately or together with, or as part of, another such power;

b

does not limit the scope of another such power.

C2 92J C2Recommendations to HCA

1

The regulator may do anything it thinks necessary or expedient for the purpose of or in connection with the performance of a function F5of the regulator.

2

In particular, the regulator may do anything it thinks appropriate for advancing its fundamental objectives.

I294Studies

1

The regulator may carry out or commission studies designed to improve the economy, effectiveness and efficiency of registered providers.

2

The regulator may publish a report on a study.

F2433

Nothing in subsection (1) permits the regulator, in relation to local authorities, to carry out or commission studies about the performance of housing functions other than their functions as a provider of social housing.

F215the Commission for Local Administration in England or an ombudsman appointed by virtue of section 124.

unregistered housing associations (as defined by section 2B of the Housing Associations Act 1985 (c. 69)), and

b

persons who may be forming a housing association (within the meaning of section 1(1) of that Act).

I31 I4398Tenant involvement

1

The regulator shall—

a

promote awareness of the regulator's functions among tenants of social housing,

b

where the regulator thinks it appropriate, consult them about the exercise of its functions (for example, by holding meetings), and

c

where the regulator thinks it appropriate, involve them in the exercise of its functions (for example, by appointing them to committees or sub-committees).

2

The regulator shall from time to time publish a statement about how it proposes to comply with subsection (1).

3

Before publishing a statement the regulator must consult such persons as it thinks appropriate.

Money

F28599Remuneration

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

100I104Charging

F2531

The regulator may charge for giving advice, conducting research or providing other services.

F1602

The functions of billing for and receiving the payment of charges under this section are exercisable by the HCA rather than by the HCA acting through its Regulation Committee.

F145101Assistance by Secretary of State

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

F98102Borrowing

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

F273103Accounts

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

F118104Financial year

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

Relationship with other bodies

4

The regulator may copy or record documents or information provided.

5

Failure to comply with a requirement without reasonable excuse is an offence.

6

Intentionally altering, suppressing or destroying a document or information to which a requirement relates is an offence.

7

If a person fails to comply with a requirement the High Court may, on an application by the regulator, make an order for the purpose of remedying the failure.

the Director of Public Prosecutions.

6

An order under section 107(7) may include provision about costs.

I169109Disclosure

1

A public authority may disclose information to the regulator if the authority thinks that the disclosure is necessary for a purpose connected with the regulator's functions.

2

The regulator may disclose information to a public authority if the regulator thinks that the disclosure is necessary—

a

for a purpose connected with the regulator's functions, or

b

for a purpose connected with the authority's functions.

3

The regulator may disclose information to a person acting on its behalf for a purpose connected with the regulator's functions.

4

A disclosure may be subject to restrictions on further disclosure.

5

The power to disclose information under this section is subject to any express restriction on disclosure imposed by another enactment (ignoring any restriction which allows disclosure if authorised by an enactment).

6

Disclosure in contravention of a restriction under subsection (4) is an offence.

7

A person guilty of an offence is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

8

“Public authority” means a person having functions of a public nature (whether or not in the United Kingdom).

Chapter 3Registration

Introduction

I50110Overview

This Chapter provides for the establishment of a register of providers of social housing.

I29111The register

F276aa

the Greater London Authority,

b

one or more bodies appearing to it to represent the interests of F2private registered providers,

F28ba

any body for the time being nominated under section 278A,

and

c

one or more F229other bodies appearing to it to represent the interests of tenants.

F3145

Section 114 deals with bodies falling within the exceptions in section 113.

113F318Section 112: exceptions

I1971

This section sets out the exceptions to section 112(1).

I1972

Exception 1 is a local housing authority.

I1973

Exception 2 is a county council.

F1734

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

F1285

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

F2036

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

1

A local authority in England which is not subject to compulsory registration must notify the regulator as soon as it becomes subject to compulsory registration.

2

For these purposes, an authority is subject to compulsory registration if—

a

it is a provider of social housing, or

b

it intends to become a provider of social housing.

Once entered F295in the register under this section a body remains registered unless and until removed under section 118 or 119.

I1015

It shall be presumed for all purposes that a person entered in the register F249under this section is eligible for registration while the registration lasts (irrespective of whether and why the person is later removed from the register).

F756

This section deals with voluntary registration; for the registration of local housing authorities and county councils, see section 114.

I87 I180 117 Fees

F1541

The functions of billing for and receiving the payment of fees under this section are exercisable by the HCA rather than by the HCA acting through its Regulation Committee.

As soon as is reasonably practicable after registering or de-registering a body the regulator shall notify—

a

in the case of a registered charity, the Charity Commission,

b

in the case of F208a registered society, the F64Financial Conduct Authority, F49...

c

in the case of a registered company (whether or not also a registered charity), the registrar of companies for England and Wales F112, and

d

in the case of a local authority, the Secretary of State.

2

F68Except in the case of a local authority, a notice of registration shall specify whether the person registered is designated as a non-profit or profit-making organisation.

3

If the designation changes, the regulator shall notify any person notified of the registration.

4

A person to whom notice is given under this section must keep a record of it.

I143121Appeal

1

A body may appeal to the High Court against a decision of the regulator—

a

to refuse to register it,

b

to de-register it, or

c

to refuse to de-register it.

2

The regulator shall not de-register a body while an appeal is pending.

3

The Secretary of State may by order provide for the First-tier Tribunal to have jurisdiction under this section instead of the High Court.

Chapter 4Registered providers

b

are paid for the benefit of tenants of the provider, and

c

are in any particular case paid to assist the tenant to obtain other accommodation by acquiring a freehold, or long-leasehold, interest in a dwelling.

5B

For the purposes of subsection (5A)—

“ long-leasehold interest ”, in relation to a dwelling, means the lessee's interest under a lease of the dwelling granted, for a premium, for a term certain exceeding 21 years;
“ acquiring ”, in relation to a long-leasehold interest in a dwelling, includes acquiring by grant and acquiring by assignment.

In section 51 of, and Schedule 2 to, the Housing Act 1996 (c. 52) (schemes for investigation of complaints by housing ombudsmen) for “Relevant Authority”, wherever appearing, substitute “ Regulator of Social Housing ”.

2

In section 51 of that Act—

a

for subsection (2)(a) substitute—

a
a registered provider of social housing,

b

in subsection (2)(d) after “registered with” insert “ the Regulator of Social Housing or ”, and

c

at the end add—

7
Section 52 shall apply to an order under subsection (4) (with any necessary modifications).

3

In paragraph 6(2) of Schedule 2 to that Act (grants) for “Housing Corporation”, in both places, substitute “ Regulator of Social Housing ”.

4

In paragraph 11(4) of Schedule 2 to that Act, omit—

a

“or the Housing Corporation”, and

b

“or, as the case may be, the Housing Corporation”.

5

At the end of Schedule 2 to that Act add—

12General provision about orders
Section 52 shall apply to an order of the Secretary of State under this Schedule (with any necessary modifications).

may make provision that applies generally or only to specified cases, circumstances or registered providers, and

b

may make different provision for different cases, circumstances or registered providers.

I149 I2186

A direction that relates to more than one registered provider may be given only after consulting one or more bodies appearing to the regulator to represent the interests of F255private registered providers.

I47

The regulator shall make arrangements for bringing a direction to the attention of every registered provider to which it applies.

I52128Submission to regulator

1

Each F272private registered provider shall send a copy of its accounts to the regulator within the period of 6 months beginning with the end of the period to which the accounts relate.

2

The accounts must be accompanied by—

a

an auditor's report, or

b

4

The report must give the name of the reporting accountant and be signed and dated.

5

The report must be signed—

a

where the reporting accountant is an individual, by that individual, and

b

where the reporting accountant is a firm, for and on behalf of the firm by an individual authorised to do so.

6

In this section and sections 131 and 132 “firm” has the meaning given by section 1173(1) of the Companies Act 2006.

any other country or territory in which a partnership is not a legal person.

I118132Application of Companies Act

1

The provisions of the Companies Act 2006 listed in subsection (2) apply to the reporting accountant and a reporting accountant's report as they apply to an auditor of the company and an auditor's report on the company's accounts (with any necessary modifications).

2

The provisions are—

a

sections 423 to 425 (duty to circulate copies of annual accounts),

b

sections 431 and 432 (right of member or debenture holder to demand copies of accounts),

c

sections 434 to 436 (requirements in connection with publication of accounts),

d

sections 441 to 444A (duty to file accounts with registrar of companies),

e

section 454(4)(b) and regulations made under that provision (functions of auditor in relation to revised accounts),

f

sections 499 to 502 (auditor's right to information), and

g

sections 505 and 506 (name of auditor to be stated in published copies of report).

3

In sections 505 and 506 as they apply by virtue of this section in a case where the reporting accountant is a firm, any reference to the senior statutory auditor shall be read as a reference to the person who signed the report on behalf of the firm.

I9133Exempt companies: extraordinary audit

1

This section applies where, in accordance with section 129, a company appoints a reporting accountant to prepare a report in respect of its accounts for any year.

2

The regulator may require the company to—

a

cause a qualified auditor to audit its accounts and balance sheet for that year, and

b

send a copy of the report to the regulator by a specified date.

3

A requirement may not be imposed before the end of the financial year to which it relates.

4

“Qualified auditor”, in relation to a company, means a person who—

a

is eligible for appointment as a statutory auditor of the company under Part 42 of the Companies Act 2006 (c. 46) (statutory auditors), and

b

is not prohibited from acting as statutory auditor of the company by virtue of section 1214 of that Act (independence requirement).

I85134Non-audited F10registered society

1

This section applies to a registered provider which is F208a registered society.

F1492

Section 85 of the Co-operative and Community Benefit Societies Act 2014 (“ the 2014 Act ”) (duty to obtain accountant's report) applies to the society as if subsection (1)(b) were omitted (accountant's report required only where turnover exceeds specified sum).

3

The regulator may require the society to—

a

appoint a qualified auditor to audit the society's accounts and balance sheet for any year of account in respect of which F67section 83 of the 2014 Act (duty to appoint auditors) did not apply because of a resolution under section 84 of that Act (power to disapply auditing requirements),

b

send a copy of the auditor's report to the regulator by a specified date.

4

A requirement under subsection (3) may be imposed only during the year of account following the year to which the accounts relate.

F1225

Qualified auditor” and “year of account” have the same meaning as in Part 7 of the 2014 Act (for “year of account” see sections 77 and 78 of that Act).

This section does not affect any obligation under F180Part 8 of the Charities Act 2011.

I217136Charity: audit

1

This section applies in relation to the accounts of a charity under section 135(3).

2

If Condition 1 or 2 is met, the charity shall cause a qualified person to audit the accounts and report on them in accordance with section 137.

3

If neither Condition is met, the charity shall cause a qualified person (“the reporting accountant”) to report on the accounts in accordance with section 138.

4

Condition 1 is met if the accounts relate to a period during which the charity's gross income arising in connection with its housing activities was greater than the sum specified in F185section 144(1)(a) of the Charities Act 2011.

5

Condition 2 is met if—

a

the accounts relate to a period during which the charity's gross income arising in connection with its housing activities was greater than the accounts threshold as defined by F226section 144(1) of the Charities Act 2011, and

b

at the end of the period the aggregate value of its assets (before deduction of liabilities) in respect of its housing activities was greater than the sum specified in F72section 144(1)(b).

6

“Gross income” has the same meaning as in F240section 144 of the Charities Act 2011.

7

“Qualified person” means a person professionally qualified as an accountant.

I111137Charity: auditor's report

1

An auditor appointed for the purposes of section 136(2) or 139(2) in respect of a charity's accounts shall make a report to the charity in accordance with this section.

2

The report must state—

a

whether the revenue account gives a true and fair view of the charity's income and expenditure, so far as relating to its housing activities, and

b

whether the balance sheet gives a true and fair view of the state of affairs of the charity as at the end of the period to which the accounts relate.

3

The report must give the name of the auditor and be signed.

4

The auditor shall, in preparing the report, carry out such investigations as are necessary to form an opinion as to—

a

whether the charity has complied with section 135(2) during the period to which the accounts relate, and

b

whether the accounts are in accordance with accounting records kept under section 135(2)(a).

5

If the auditor thinks that the charity has not complied section 135(2) or that the accounts are not in accordance with its accounting records, that must be stated in the report.

6

If the auditor fails to obtain all the information and explanations which the auditor thinks necessary for the purposes of the audit, that must be stated in the report.

I138138Charity: accountant's report

1

A reporting accountant appointed for the purposes of section 136(3) in respect of a charity's accounts shall make a report to the charity in accordance with this section.

2

The report must state whether the accounts are in accordance with accounting records kept under section 135(2)(a).

3

On the basis of the information in the accounting records the report must also state whether—

a

the accounts comply with the requirements of F56the Charities Act 2011;

b

section 136(3) applied in respect of the accounts.

4

The report must give the name of the reporting accountant and be signed.

5

If the reporting accountant fails to obtain all the information and explanations which the reporting accountant thinks necessary for the purposes of preparing the report, that must be stated in the report.

I74139Charity: extraordinary audit

1

This section applies where, in accordance with section 136(3), a charity appoints a reporting accountant to prepare a report in respect of any accounts.

2

The regulator may require the charity to—

a

cause a qualified person to audit the accounts and prepare a report on them in accordance with section 137, and

b

send a copy of the report to the regulator by a specified date.

3

A requirement under subsection (2) may be imposed only during the period of account following the period to which the accounts relate.

4

In this section—

“period of account” has the meaning given by section 135(5), and
“qualified person” has the meaning given by section 136(7).

I62140Charity: auditor's powers

1

This section applies to a person who is appointed by a charity for the purposes of section 136(2) or (3) or 139(2).

2

The charity must grant the person access to its documents, if or in so far as they relate to its housing activities.

3

An officer of the charity must provide such information or explanations as the person thinks necessary.

1

If a F223private registered provider fails to comply with a direction, provision or requirement mentioned in section 141(1), the High Court may on the application of the regulator make an order for the purpose of remedying the failure.

2

An order may include provision about costs.

I165143Disclosure

1

This section applies to information that a person has received while acting—

a

as auditor of a F61private registered provider, or

b

as a reporting accountant in relation to a F77private registered provider.

2

The person may disclose the information to the regulator for a purpose connected with the regulator's functions—

a

despite any duty of confidentiality, and

b

whether or not the regulator requests the information.

3

The reference to disclosing information includes expressing an opinion on it.

4

“Reporting accountant” means a person who is appointed to prepare a report which, by virtue of any enactment, has to be prepared in respect of accounts that are not subject to audit.

Insolvency etc.

143AF200Application of rules about insolvency

This group of sections does not apply to local authorities.

F234144Preparatory steps: notice

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

F246145Moratorium

A moratorium on the disposal of land by a private registered provider begins if a notice is given to the regulator under any of the following provisions of the Housing and Planning Act 2016—

a

section 104(2)(a) (notice of winding up petition);

b

section 105(4)(a) (notice of application for permission to pass a resolution for voluntary winding up);

c

section 106(3)(a) (notice of ordinary administration application);

d

section 107(4)(a) (notice of appointment of ordinary administrator);

e

section 108(2)(a) (notice of intention to enforce security).

1

This section applies if—

a

a moratorium in respect of a F65private registered provider ends otherwise than by cancellation, and

b

a further F315notice mentioned in section 145 is given in relation to the provider within the period of 3 years beginning with the end of the moratorium.

2

The further F319notice does not automatically trigger a further moratorium.

3

But the regulator may impose a further moratorium for a specified period, if each secured creditor of the registered provider whom the regulator is able to locate after making reasonable enquiries consents.

4

If the regulator imposes a new moratorium it shall notify—

a

the registered provider,F37and

b

any liquidator, administrator, administrative receiver or receiver appointed in respect of the registered provider or any of its land, F138...

F286c

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

F2104A

If the regulator imposes a new moratorium in respect of a private registered provider who owns land in Greater London, the regulator shall also notify the Greater London Authority.

5

This group of sections applies to a further moratorium as to a first moratorium (except for section 146(2)).

I122148Effect of moratorium

1

During a moratorium F308neither the HCA F261, nor the Greater London Authority, may—

a

F157... give the registered provider a direction under section 32(4), F7or

b

F254... take steps to enforce such a direction against the registered provider.

2

During a moratorium a disposal of the registered provider's land requires the regulator's prior consent.

3

Section 149 sets out exceptions to subsection (2).

4

Consent—

a

may be given before the moratorium begins, and

b

may be subject to conditions.

5

This section does not prevent a liquidator from disclaiming land as onerous property during a moratorium.

6

In this section “land” includes a present or future interest in rent or other receipts arising from land.

I148149Exempted disposals

1

The regulator's consent is not required under section 148 for the following exceptions.

2

Exception 1 is a letting under—

a

an assured tenancy, or

b

an assured agricultural occupancy.

3

Exception 2 is a letting under what would be an assured tenancy or an assured agricultural occupancy but for any of paragraphs 4 to 8, 12(1)(h) and 12ZA to 12B of Schedule 1 to the Housing Act 1988 (c. 50) (tenancies which cannot be assured tenancies).

4

Exception 3 is a letting under a secure tenancy.

5

Exception 4 is a letting under what would be a secure tenancy but for any of paragraphs 2 to 12 of Schedule 1 to the Housing Act 1985 (c. 68) (tenancies which are not secure tenancies).

F2126

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

7

Exception F2455 is a disposal under Part V of the Housing Act 1985 (right to buy).

8

Exception F366 is a disposal under the right conferred by—

a

section 180, or

b

section 16 of the Housing Act 1996 (c. 52) (tenant's right to acquire social housing in Wales).

I219150Disposals without consent

1

A purported disposal by a registered provider is void if—

a

it requires the regulator's consent under section 148, and

b

the regulator has not given consent.

2

But subsection (1) does not apply to a disposal by a non-profit registered provider to one or more individuals (“the buyer”) if—

a

the disposal is of a single dwelling, and

b

the registered provider reasonably believes at the time of the disposal that the buyer intends to use the property as the buyer's principal residence.

dispose of land, or

b

grant security over land.

may not require it to act outside the terms of its trusts, and

b

may provide for the disposal of accommodation only to another charity whose objects the regulator thinks are similar to those of C1.

Proposals may be amended by agreement between the secured creditors to whom the original proposals were sent and the regulator; and this section and section 152 apply to an amendment as to the original proposals.

I200154Proposals: effect

1

The following are obliged to implement agreed proposals—

a

the regulator,

b

the registered provider,

c

its creditors, and

d

any liquidator, administrator, administrative receiver or receiver appointed in respect of the registered provider or any of its land.

2

The following shall co-operate with implementation of agreed proposals—

a

in the case of a charitable trust, its trustees,

F19aa

in the case of a charitable incorporated organisation, its charity trustees (as defined by section 177 of the Charities Act 2011),

b

in the case of F208a registered society, its committee members, and

c

in the case of a registered company, its directors.

3

Subsection (2) does not require or permit a breach of a fiduciary or other duty.

I71155Manager: appointment

1

This section applies where agreed proposals provide for the appointment of a manager.

2

The proposals must provide for the manager to be paid reasonable remuneration and expenses.

3

The regulator shall appoint a manager.

4

The regulator may give the manager directions (general or specific).

5

The manager may apply to the High Court for directions (and directions of the regulator are subject to directions of the High Court).

6

If the registered provider is a charity, the regulator must notify the Charity Commission that a manager has been appointed.

7

The regulator may appoint a new manager in place of a person who ceases to be manager (in accordance with terms of appointment specified in the proposals or determined by the regulator).

I192156Manager: powers

1

A manager—

a

may do anything necessary for the purpose of the appointment,

b

acts as the registered provider's agent (and is not personally liable on a contract), and

c

has ostensible authority to act for the registered provider (so that a person dealing with the manager in good faith and for value need not inquire into the manager's powers).

2

In particular, the terms of a manager's appointment may confer power—

a

to sell or otherwise dispose of land by public auction or private contract;

b

to raise or borrow money;

c

to grant security over land;

d

to grant or accept surrender of a lease;

e

to take a lease;

f

to take possession of property;

g

to appoint a solicitor, accountant or other professional to assist the manager;

h

to appoint agents and staff (and to dismiss them);

i

to make payments;

j

to bring or defend legal proceedings;

k

to refer a question to arbitration;

l

to make any arrangement or compromise;

m

to carry on the business of the registered provider;

n

to carry out works and do other things in connection with the management or transfer of land;

o

to take out insurance;

p

to use the registered body's seal;

q

to execute in the name and on behalf of the registered provider any deed, receipt or other document;

r

to do anything incidental to a power in paragraphs (a) to (q).

3

A manager shall so far as is reasonably practicable consult and inform the registered provider's tenants about an exercise of powers likely to affect them.

I110157Manager of F10registered society: extra powers

1

This section applies to a manager appointed to implement proposals relating to F208a registered society.

2

The appointment may confer on the manager power to make and execute on behalf of the society—

a

an instrument providing for the amalgamation of the society with another F10registered society, or

b

an instrument transferring its engagements.

3

An instrument providing for the amalgamation of a society (“S1”) with another has the same effect as a resolution by S1 under F186section 109 of the Co-operative and Community Benefit Societies Act 2014 (amalgamation of societies by special resolution).

4

An instrument transferring engagements has the same effect as a transfer of engagements under F46section 110 or 112 of the Co-operative and Community Benefit Societies Act 2014 (transfer by special resolution to another society or company).

5

A copy of the instrument shall be sent to and registered by the F268Financial Conduct Authority.

6

An instrument does not take effect until the copy is registered.

7

The copy must be sent for registration during the period of 14 days beginning with the date of execution; but a copy registered after that period is valid.

I154158Assistance by regulator

1

The regulator may give financial or other assistance to F11the registered provider for the purpose of preserving its position pending the agreement of proposals.

2

The regulator may give financial or other assistance to F85the registered provider, or a manager appointed under section 155, to facilitate the implementation of agreed proposals.

3

In particular, the regulator may—

a

lend staff;

b

arrange payment of the manager's remuneration and expenses.

4

The regulator may do the following only with the Secretary of State's consent—

a

make grants,

b

make loans,

c

indemnify a manager,

d

make payments in connection with secured loans, and

e

guarantee payments in connection with secured loans.

I44159Applications to court

1

F267A private registered provider may apply to the High Court where the registered provider thinks that action taken by a manager is not in accordance with the agreed proposals.

2

A creditor of F278a private registered provider may apply to the High Court where the creditor thinks that action taken by a manager is not in accordance with the agreed proposals.

3

The High Court may—

a

confirm, annul or modify an act of the manager;

b

give the manager directions;

c

make any other order.

4

If a person bound by agreed proposals (P1) thinks that action by another person (P2) breaches section 154, P1 may apply to the High Court.

5

The High Court may—

a

confirm, annul or modify the action;

b

grant relief by way of injunction, damages or otherwise.

Restructuring and dissolution

159AF320Application of rules about restructuring and dissolution

This group of sections does not apply to local authorities.

F111160Company: arrangements and reconstructions

1

This section applies to a non-profit registered provider which is a registered company.

2

The registered provider must notify the regulator of any voluntary arrangement under Part 1 of the Insolvency Act 1986.

3

The registered provider must notify the regulator of any order under section 899 of the Companies Act 2006 (court sanction for compromise or arrangement).

4

An order under section 899 of Companies Act 2006 does not take effect until the registered provider has confirmed to the registrar of companies that the regulator has been notified.

5

The registered provider must notify the regulator of any order under section 900 of the Companies Act 2006 (powers of court to facilitate reconstruction or amalgamation).

6

The requirement in section 900(6) of the Companies Act 2006 (sending copy of order to registrar) is satisfied only if the copy is accompanied by confirmation that the regulator has been notified.

161F260Company: conversion into registered society

1

This section applies to a non-profit registered provider which is a registered company.

2

The registered provider must notify the regulator of any resolution under section 115 of the Co-operative and Community Benefit Societies Act 2014 for converting the registered provider into a registered society.

3

The registrar of companies may register a resolution under that section only if the registered provider has confirmed to the registrar that the regulator has been notified.

4

The regulator must decide whether the new body is eligible for registration under section 112.

5

If the new body is eligible for registration, the regulator must register it and designate it as a non-profit organisation.

6

If the new body is not eligible for registration, the regulator must notify it of that fact.

7

Pending registration, or notification that it is not eligible for registration, the new body is to be treated as if it were registered and designated as a non-profit organisation.

F321162Company: winding up

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

163F306Registered society: restructuring

1

This section applies to a non-profit registered provider which is a registered society.

2

The registered provider must notify the regulator of any resolution passed by the society for the purposes of the restructuring provisions listed in subsection (4).

3

The Financial Conduct Authority may register the resolution only if the registered provider has confirmed to the Financial Conduct Authority that the regulator has been notified.

4

The following provisions of the Co-operative and Community Benefit Societies Act 2014 are the restructuring provisions—

a

section 109 (amalgamation of societies);

b

section 110 (transfer of engagements between societies);

c

section 112 (conversion of society into a company etc).

5

The regulator must decide whether the body created or to whom engagements are transferred (“the new body”) is eligible for registration under section 112.

6

If the new body is eligible for registration, the regulator must register it and designate it as a non-profit organisation.

7

If the new body is not eligible for registration, the regulator must notify it of that fact.

8

Pending registration, or notification that it is not eligible for registration, the new body is to be treated as if it were registered and designated as a non-profit organisation.

F150164Registered society: winding up

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

I121165F10Registered society: dissolution

1

This section applies to a non-profit registered provider which is—

a

F208a registered society, and

b

to be dissolved by instrument of dissolution in accordance with F135section 119 of the Co-operative and Community Benefit Societies Act 2014.

F1162

The registered provider must notify the regulator.

3

The Financial Conduct Authority may register the instrument under section 121 of that Act, or cause notice of the dissolution to be advertised under section 122 of that Act, only if the registered provider has confirmed to the Financial Conduct Authority that the regulator has been notified.

F274166Winding up petition by regulator

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

the Companies Act 2006 (c. 46),

F317ca

the Co-operative and Community Benefit Societies Act 2014, or

d

the constitution of a registered provider.

Annotations:

Amendments (Textual)

F39

The regulator must make arrangements for bringing a direction under this section to the attention of every registered provider to which it applies.

C2Chapter 5Disposal of propertyF195by private registered providers

Annotations:

Amendments (Textual)

F195

Words in Pt. 2 Ch. 5 inserted (1.4.2010) by The Housing and Regeneration Act 2008 (Registration of Local Authorities) Order 2010 (S.I. 2010/844), art. 1(2), Sch. 1 para. 34

Introductory

I168170Overview

This Chapter makes provision about the disposal of property by F305private registered providers.

I140171Power to dispose

1

A F189private registered provider may dispose of land.

2

But a non-profit registered provider may dispose of the landlord's interest under a secure tenancy only to another non-profit registered provider F227or to a local authority which is a registered provider.

3

Subsection (1) is subject to the following provisions of this Chapter F206....

F290. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations:

Amendments (Textual)

F290

S. 177 cross-heading omitted (6.4.2017) by virtue of Housing and Planning Act 2016 (c. 22), s. 216(3), Sch. 4 para. 33(b); S.I. 2017/75, reg. 4 (with reg. 7)

F241177Separate accounting

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

F241178Use of proceeds

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

F169. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations:

Amendments (Textual)

F169

a person who provided the dwelling wholly or partly by means of a grant under section 27A of the Housing Act 1996 (c. 52).

6

Where a lease of a dwelling has been granted to a former freeholder in pursuance of paragraph 3 of Schedule 9 to the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) (mandatory leaseback to former freeholder on collective enfranchisement) the reference in subsection (1)(a) above to the freeholder shall be construed as a reference to the leaseholder under that lease.

I158183Interpretation: other expressions

1

The definitions in this section apply to sections 180 to 182.

2

The HCA gives “assistance” to a person if it—

a

transfers housing or other land to the person,

b

provides infrastructure to the person, or

c

gives financial assistance to the person,

and for this purpose “infrastructure” has the same meaning as in Part 1.

3

References to a “registered social landlord” are to a body which, at the time to which the reference relates, was a registered social landlord within the meaning of Part 1 of the Housing Act 1996 (c. 52) as it then had effect.

4

“Leaseholder” does not include a mortgagee.

5

“Long tenancy” has the same meaning as in Part V of the Housing Act 1985 (c. 68).

6

A person provides a dwelling if the person—

a

acquires, constructs, converts, improves or repairs housing or other land for use as a dwelling, or

b

ensures such acquisition, construction, conversion, improvement or repair by another.

7

“Public sector landlord” means anyone falling within section 80(1) of the Housing Act 1985.

I213184Right to acquire: supplemental

1

Section 17 of the Housing Act 1996 (right to acquire: supplemental) applies in relation to the right to acquire under section 180 of this Act with the modifications set out below.

2

The modifications are as follows—

a

references to the right to acquire under section 16 of the 1996 Act shall be treated as references to the right to acquire under section 180 of this Act,

b

references to the Welsh Ministers shall be treated as references to the Secretary of State,

c

the reference to registered social landlords shall be treated as a reference to F168private registered providers, and

d

the reference to a resolution of the National Assembly for Wales shall be treated as a reference to a resolution of either House of Parliament.

I39185Right to acquire: consequential amendments

1

In section 16 of the Housing Act 1996 (right to acquire)—

a

for subsection (1) substitute—

1
The tenant of a dwelling in Wales has a right to acquire the dwelling if—
a
the landlord is a registered social landlord or a registered provider of social housing,
b
the tenancy is—
i
an assured tenancy, other than an assured shorthold tenancy or a long tenancy, or
ii
a secure tenancy,
c
the dwelling was provided with public money and has remained in the social rented sector, and
d
the tenant satisfies any further qualifying conditions applicable under Part V of the Housing Act 1985 (the right to buy) as it applies in relation to the right conferred by this section.

ii

for “landlord's” substitute “ landlord or provider (as the case may be) ”, and

c

in subsection (4) after “landlord” insert “ or registered provider of social housing ”.

Miscellaneous

I12186Former registered providers

Where a person ceases to be a F178private registered provider, sections 171 F307and 176 (apart from section 176(2)) continue to apply in respect of any property owned by the person at any time when it was registered.

F236187Change of use, etc.

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

I150188Trustees

Section 39 of the Settled Land Act 1925 (c. 18) (disposal by trustees: best price etc.) shall not apply to the disposal of land by a F70private registered provider.

I145189Charities

Nothing in this Chapter authorises a charity to effect a disposal which it would not otherwise have power to effect.

Consents under other legislation

F176190Consent to disposals under other legislation

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

I116191Section 190: consequential amendments

1

In section 171D of the Housing Act 1985 (consent to certain disposals of housing obtained subject to the preserved right to buy)—

a

in subsection (2) (consent) for “Secretary of State” substitute “ appropriate authority ”, and

b

after that subsection insert—

2A
“The appropriate authority” means—
a
in relation to a disposal of land in England by a registered provider of social housing, the Regulator of Social Housing,
b
in relation to any other disposal of land in England, the Secretary of State, and
c
in relation to a disposal of land in Wales, the Welsh Ministers.

2

In section 81 of the Housing Act 1988 (consent to certain disposals of housing obtained from housing action trusts)—

a

in subsection (3) (consent) for “Secretary of State” substitute “ appropriate authority ”,

b

after that subsection insert—

3A
In this section “the appropriate authority” means—
a
in relation to a disposal of land in England by a registered provider of social housing, the Regulator of Social Housing,
b
in relation to any other disposal of land in England, the Secretary of State, and
c
in relation to a disposal of land in Wales, the Welsh Ministers.

c

in subsection (5) (consultation of tenants) for “Secretary of State” substitute “ appropriate authority ”,

d

in subsection (5)(a) for “himself” substitute “ itself ”, and

e

omit subsection (6) (consultation of Housing Corporation).

3

In section 133 of that Act (consent to certain disposals of housing obtained from local authorities)—

a

in subsection (1) (consent) for “Secretary of State” substitute “ appropriate authority ”,

b

after that subsection insert—

1ZA
In this section “the appropriate authority” means—
a
in relation to a disposal of land in England by a registered provider of social housing, the Regulator of Social Housing,
b
in relation to any other disposal of land in England, the Secretary of State, and
c
in relation to a disposal of land in Wales, the Welsh Ministers.

c

after subsection (1A) insert—

1B
This section does not apply to a disposal of land by a registered provider of social housing unless the land is social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008.

d

in subsection (3)(c) (modification of certain provisions applied for the purposes of section 133) after “this section,” insert “ any reference to the appropriate national body shall be construed as a reference to the appropriate authority and ”,

e

in subsection (5) (consultation of tenants) for “Secretary of State” substitute “ appropriate authority ”,

f

in subsection (5)(a) for “himself” substitute “ itself ”, and

g

omit subsection (6) (consultation of Housing Corporation).

4

In section 173 of the Local Government and Housing Act 1989 (c. 42) (consent to certain disposals of housing obtained from new town corporations)—

a

in subsection (1)(a) (consent) for “Secretary of State” substitute “ appropriate authority ”,

b

after subsection (1) insert—

1A
In this section “the appropriate authority” means—
a
in relation to a disposal of land in England by a registered provider of social housing, the Regulator of Social Housing,
b
in relation to any other disposal of land in England, the Secretary of State, and
c
in relation to a disposal of land in Wales, the Welsh Ministers.

c

in subsection (5) (consultation of tenants) for “Secretary of State” substitute “ appropriate authority ”,

d

in subsection (5)(a) for “himself” substitute “ itself ”, and

e

omit subsection (6) (consultation of Housing Corporation).

Chapter 6Regulatory powers

192I199Overview

This Chapter—

a

allows the regulator to set standards for the provision of social housing (sections 193 to F43198B),

b

gives the regulator powers to monitor compliance (sections 199 to 210),

F289c

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

d

requires the regulator to give guidance about F125the submission of information and opinions relating to registered providers and about the use of its powers under this Chapter and Chapter 7 (sections 215 and 216), and

e

allows the regulator to arrange for the accreditation of managers of social housing (section 217).

Standards

193I47F120Standards relating to consumer matters

1

The regulator may set standards for registered providers as to the nature, extent and quality of accommodation, facilities or services provided by them in connection with social housing.

2

Standards under subsection (1) may, in particular, require registered providers to comply with specified rules about—

a

criteria for allocating accommodation,

b

terms of tenancies,

F60c

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

d

maintenance,

e

procedures for addressing complaints by tenants against landlords,

f

methods for consulting and informing tenants,

g

methods of enabling tenants to influence or control the management of their accommodation and environment,

F239ga

methods of assisting tenants to exchange tenancies,

h

policies and procedures required by section 218A of the Housing Act 1996 (c. 52) in connection with anti-social behaviour,

i

landlords' contribution to the environmental, social and economic well-being of the areas in which their property is situated, and

j

estate management.

3

In setting standards the regulator shall have regard to the desirability of registered providers being free to choose how to provide services and conduct business.

I14194F213Standards relating to economic matters

1

e

one or more bodies appearing to it to represent the interests of local housing authorities,

F232ea

the Greater London Authority,

F190f

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., and

g

the Secretary of State.

2

Before setting a standard which would apply to charities, or issuing, revising or withdrawing a code of practice which applies or would apply to charities, the regulator must consult the Charity Commission.

F811

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

2I109

The regulator shall make arrangements for bringing standards to the attention of registered providers.

I109 C43

The regulator may revise or withdraw standards; and section 196 applies to revising or withdrawing standards as to setting standards.

4I109

Standards may be expressed by reference to documents prepared by others.

5I109

Standards—

a

may make provision generally or only in relation to specified cases, circumstances or areas, and

b

may make different provision for different cases, circumstances or areas.

a Member of Parliament;

h

a fire and rescue authority under the Fire and Rescue Services Act 2004;

i

the Health and Safety Executive;

j

the Secretary of State.

198BFailure to meet standard under section 194

1

Failure by a registered provider to meet a standard under section 194 (standards relating to economic matters) is a ground for exercising a power in this Chapter or Chapter 7 (if the power is otherwise exercisable in relation to a registered provider of that kind).

2

The risk that, if no action is taken by a registered provider or the regulator, the registered provider will fail to meet a standard under section 194 is a ground for exercising a power in this Chapter.

Monitoring

I153199Survey

1

This section applies where the regulator suspects that a registered provider may be failing to maintain premises in accordance with standards under section 193.

2

The regulator may arrange for a survey of the condition of the premises by an authorised person.

3

In subsection (2) “authorised person” means a member of the regulator's staff, or another person, authorised in writing by the regulator for the purposes of this section.

4

An authorised person may enter the premises at any reasonable time and carry out the survey.

5

Before carrying out the survey an authorised person must give the registered provider at least 28 days' notice.

6

A registered provider who receives notice of a survey must give each occupier of the premises at least 7 days' notice.

7

After carrying out a survey an authorised person must produce a written report.

8

The regulator must give the registered provider a copy of the report.

I49200Survey: supplemental

1

An authorised person carrying out a survey, or seeking to enter premises in order to carry out a survey, must produce a copy of the authorisation on request by an occupier.

2

The regulator may require the registered provider to pay some or all of the costs of the survey and report.

3

A registered provider who fails without reasonable excuse to comply with section 199(6) commits an offence.

4

A registered provider, or an officer of a registered provider, who obstructs an authorised person in exercising a power under section 199 commits an offence.

5

A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

6

Proceedings for an offence under this section may be brought only by or with the consent of—

a

the regulator, or

b

the Director of Public Prosecutions.

I172201Inspections

1

The regulator may arrange for a person to inspect—

a

a registered provider's performance of its functions in relation to the provision of social housing, or

b

the financial or other affairs of a registered provider.

F932

The person may be a member of the regulator's staff if the Secretary of State consents.

2A

Consent under subsection (2) may be general or specific.

F2593

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

4

The regulator may direct a person carrying out an inspection to discontinue it.

5

An inspection may be general or specific.

F226

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

F1667

Arrangements for a person other than a member of the regulator's staff to carry out an inspection may include provision about payments.

F3287A

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

F2988

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

one or more bodies appearing to the regulator to represent the interests of registered providers, F238...

F238c

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

F2308

The functions of billing for and receiving the payment of fees under this section are exercisable by the HCA rather than by the HCA acting through its Regulation Committee.

In this section “ inspector ” means a person authorised in writing by the regulator to exercise the powers under this section for the purposes of an inspection under section 201.

F126204Performance information

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

F12205Publication of performance information

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

I57206Inquiry

1

If the regulator suspects that the affairs of a registered provider may have been mismanaged, the regulator may hold an inquiry.

2

The regulator shall appoint one or more individuals to conduct the inquiry.

3

An individual is eligible for appointment only if the individual is independent of the regulator.

4

Individuals are independent of the regulator if they and the members of their family—

a

are not members, employees or consultants of the regulator, and

b

have not been members or employees of the regulator within the previous five years.

5

“Consultant” means an individual providing services to the regulator otherwise than by virtue of employment with the regulator or an appointment under this section.

I45207Inquiry: supplemental

1

The individual or individuals conducting an inquiry (“the inquirer”) shall determine its procedure.

F92

The inquirer may consider the affairs of the following categories of registered provider only so far as relating to social housing—

a

profit-making organisations;

b

local authorities.

3

The inquirer may consider affairs of a body which at the material time was a subsidiary or associate of the registered provider.

4

The inquirer may make interim reports.

5

The inquirer shall make a final report on matters specified by the regulator.

6

The regulator may arrange for the publication of all or part of an interim or final report.

7

A local authority may contribute to the regulator's expenses in connection with an inquiry.

I120208Inquiry: evidence

1

4

The revenue accounts of a registered charity may be audited under this section only insofar as they relate to its housing activities.

5

The registered provider shall pay the costs of the audit (including the auditor's remuneration).

210AF74Extraordinary F336audit: local authorities

1

Where an inquiry in respect of a local authority is being held, or has been held, under section 206, F329the regulator may require the local authority to allow its accounts, so far as they relate to the provision of social housing, to be audited by a local auditor appointed by the regulator.

F3261A

The regulator may not appoint a local auditor to audit the accounts of a local authority if that person—

a

is the person (or one of the persons) appointed under or by virtue of the Local Audit and Accountability Act 2014 to audit the authority's accounts, or

b

was the person (or one of the persons) who carried out the most recent completed audit of the authority's accounts under or by virtue of that Act.

1B

Sections 20(1), (2), (5) and (6), 22 and 23 of the Local Audit and Accountability Act 2014 (local auditors' general duties and right to documents etc) apply in relation to an audit under this section as they apply in relation to an audit of the local authority under or by virtue of that Act.

1C

On completion of the audit under this section, the local auditor must report to the regulator about such matters and in such form as the regulator determines.

F3302

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

F3303

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

4

The local authority shall pay the F325costs of the audit (including the local auditor's remuneration).

F3395

In this section—

“accounts” has the meaning given by section 4 of the Local Audit and Accountability Act 2014;
“local auditor” means a person who is eligible for appointment under or by virtue of the Local Audit and Accountability Act 2014 as an auditor of the local authority's accounts.

F256. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations:

Amendments (Textual)

F256

Ss. 211-214 and cross-heading omitted (6.4.2017) by virtue of Housing and Planning Act 2016 (c. 22), s. 216(3), Sch. 4 para. 31; S.I. 2017/75, reg. 4

F256211Non-profit providers only

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

F256212Registered society: change of rules

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

F256213Charity: change of objects

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

F256214Companies: change of articles

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

Guidance

215Use of intervention powers

1I133

The regulator shall publish—

a

guidance about F179the submission of information to the regulator about the performance of registered providers, and

b

guidance about how it uses and intends to use powers under this Chapter and Chapter 7.

2I133

Guidance under subsection (1)(a) must, in particular, specify F165how the regulator will deal with the submissions it receives.

F1342A

Guidance under subsection (1)(b) must, in particular, specify how the regulator applies and intends to apply the tests in section 198A (use of certain powers in cases of failure or potential failure to comply with standards under section 193).

I2063

The regulator shall have regard to guidance under this section.

216I78Consultation

Before giving guidance under section 215 the regulator must consult—

F31za

the Secretary of State,

a

one or more bodies appearing to it to represent the interests of registered providers,

F96aa

any body for the time being nominated under section 278A,

b

one or moreF132other bodies appearing to it to represent the interests of tenants,

F32ba

the Greater London Authority,

c

one or more bodies appearing to it to represent the interests of local housing authorities,

F127d

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

F34e

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

Chapter 7Enforcement powers

Enforcement notice

I130219Overview

This group of sections allows the regulator to require a registered provider to take specified action to resolve a specified failure or other problem.

1

An enforcement notice must—

a

specify the grounds on which it is given,

b

specify the action the regulator wants the registered provider to take in response to the notice,

c

specify when the action is to be taken (which may be immediately on receipt of the notice), and

d

explain the effect of sections 223 to 225.

2

The action specified in an enforcement notice may include publishing the notice in a specified manner.

I205 222 F228 Notifying HCA etc

If the regulator gives an enforcement notice it must send a copy—

F41 a

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

F312aa

in the case of an enforcement notice given to a registered provider who owns land in Greater London, the Greater London Authority, and

b

in the case of an enforcement notice given to a local authority, to the Secretary of State.

I103223Appeal

A registered provider who is given an enforcement notice may appeal to the High Court.

I184224Withdrawal

The regulator may withdraw an enforcement notice by notice to the registered provider.

I162225Sanction

1

If a registered provider does not comply with an enforcement notice the regulator shall consider exercising another power under Chapter 6 or this Chapter.

2

In the case of an enforcement notice given to a person other than the registered provider by virtue of section 220(12), the regulator may only—

a

exercise the power to issue a penalty notice to the person in accordance with the next group of sections, or

b

take steps to have the person prosecuted for the offence by reference to which the enforcement notice was given.

3

A person to whom an enforcement notice is given on the ground in Case 9 of section 220 may not be prosecuted for the offence by reference to which the enforcement notice was given unless the person fails to comply with the enforcement notice.

Penalty

I21226Overview

This group of sections allows the regulator to penalise failures on the part of F124private registered providers by the imposition of fines.

I127227Grounds for imposition

1

The regulator may require a F310private registered provider to pay a penalty if the regulator is satisfied that—

a

any of the following cases applies, and

b

the imposition of a penalty is appropriate (whether or not as part of a response including other action).

2

Case 1 is where the registered provider has failed to meet a standard under section 193 or 194.

3

Case 2 is where the affairs of the registered provider have been mismanaged.

4

Case 3 is where the registered provider has failed to comply with an enforcement notice.

5

Case 4 is where the registered provider has given an undertaking under section 125 and failed to comply with it.

6

Case 5 is where the registered provider has failed to pay an annual fee under section F66117(1)(b).

7

c

how the penalty must be paid,

d

a period within which it must be paid, and

e

any interest or additional penalty which, by virtue of section 234(2), is payable in the event of late payment.

I1663

The notice may require the registered provider to publish information about the penalty in a specified manner.

I1664

The notice must explain the effect of sections 234(1), (3) and (6) and 235.

I42 I2155

The Secretary of State—

a

shall make regulations about the period under subsection (2)(d),

b

may make other regulations about the form and content of a penalty notice, and

c

may make regulations about the manner in which a penalty notice is given.

I61229Amount

1

The amount of a penalty imposed on the ground specified in Case 6 of section 227 may not exceed the maximum amount F333(if any) of fine that a magistrates' court could impose for the relevant offence.

2

The amount of a penalty imposed on the ground specified in any other Case of that section may not exceed £5,000.

3

The Secretary of State may by order amend the amount specified in subsection (2).

If the regulator imposes a penalty on a registered provider who owns land in Greater London, it must send a copy of the penalty notice to the Greater London Authority.

I182233Destination

1

This section applies where the regulator receives money by way of penalty.

2

The regulator may deduct a sum which represents—

a

the direct costs to the regulator of imposing and enforcing the penalty, and

b

a reasonable share of expenditure by the regulator which is indirectly referable to the imposition and enforcement of the penalty.

3

Any excess shall be paid to the HCA, to be used for purposes which appear to it to amount to investment in social housing.

the imposition of the penalty,

b

its amount, or

c

both.

Compensation

I178236Overview

This group of sections allows the regulator to award compensation to a victim of a failure on the part of a F196private registered provider.

I60237Grounds for award

1

The regulator may require a F242private registered provider to pay compensation if the regulator is satisfied that—

a

either of the following cases applies, and

b

the award of compensation is appropriate (whether or not as part of a response including other action).

2

Case 1 is where the registered provider has failed to meet a standard under section 193 or 194.

3

Case 2 is where the registered provider has given an undertaking under section 125 and failed to comply with it.

F994

Case 3 is where the registered provider has failed to comply with—

a

section 23 of the Welfare Reform and Work Act 2016,

b

regulations under section 27 of that Act, or

c

Part 1 of Schedule 2 to that Act.

I76238Nature

1

Compensation in respect of a failure may be awarded to one or more persons who have suffered as a result of the failure.

2

But an award may be made only to—

a

a specified tenant of social housing provided by the registered provider,

b

each member of a specified class of tenants of social housing provided by the registered provider, or

c

each member of the class of tenants of social housing provided by the registered provider.

I13239Housing ombudsman compensation

1

The regulator may not award compensation to a person in respect of a matter if an ombudsman appointed by virtue of section 124 has awarded compensation to the person in respect of the matter.

F2712

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

may make regulations about the manner in which a compensation notice is given.

I102241Impact

1

This section applies when the regulator is considering—

a

whether to award compensation, or

b

the amount of compensation to award.

2

The regulator must take account of any information available to it about the financial situation of the registered provider.

3

The regulator must consider the likely impact of the compensation on the registered provider's ability to provide services.

4

In particular, the regulator must aim to avoid—

a

jeopardising the financial viability of the registered provider,

b

preventing the registered provider from honouring financial commitments, or

c

preventing the registered provider from taking action to remedy the matters on the grounds of which the compensation might be awarded.

A pre-compensation warning may be combined with notice under one or more of sections 230, 248, 250 and 252.

consider any representations made, and

b

decide whether to award compensation.

both.

Management etc.

I59246Overview

This group of sections gives the regulator various powers in relation to the management and constitution of registered providers.

1

This section makes further provision about the application of sections 247 and 249 in a case where the registered provider is a local authority.

2

The regulator may act under those sections even if the local authority already has a management agreement in place.

3

But while a section 247 or 249 arrangement is in force, the local authority may not give effect to a management agreement as respects functions of the authority which are the subject of the arrangement.

4

Any duty the local authority may have to consult with respect to the exercise of its management functions (for example, a duty arising by virtue of section 27BA of the Housing Act 1985) does not apply so far as it is acting pursuant to a requirement imposed on it under section 247 or 249.

5

A section 247 or 249 arrangement—

a

is not to be considered a management agreement, but

b

subsections (13) and (15) of section 27 of the Housing Act 1985 apply to it as they apply to a management agreement.

6

In this section—

“management agreement” has the meaning given by section 27(2)(a) and 27B(4) of the Housing Act 1985;
“section 247 or 249 arrangement” means an arrangement which is entered into pursuant to a requirement imposed on a local authority under section 247 or 249 and by which functions of the authority are to be exercised by a manager on its behalf.

A manager shall have—

a

any power specified in the appointment or requirement, and

b

any other power in relation to the registered provider's affairs required by the manager for the purposes specified in the appointment or requirement (including the power to enter into agreements and take other action on behalf of the registered provider).

A F287private registered provider may appeal to the High Court against an appointment or requirement under section 251(2).

252AF151Appointment of advisers to local authorities

1

This section applies to a registered provider which is a local authority.

2

The power in subsection (3) is exercisable if the regulator thinks—

a

that it is necessary to exercise it for the proper management of the authority’s affairs so far as they relate to the provision of social housing (its “social housing affairs”), or

b

that it is desirable to exercise it in the interests of securing better services for the authority’s tenants.

3

The regulator may—

a

appoint one or more advisers to assist the authority in relation to its social housing affairs (or a particular aspect of those affairs), or

b

require the authority to appoint one or more advisers for that purpose.

4

Appointment shall be on terms and conditions (including as to remuneration) specified in, or determined in accordance with, the appointment or requirement.

5

A requirement under subsection (3)(b) may specify a process which the authority is required to implement for selecting and appointing advisers.

6

The authority must cooperate with any advisers appointed by virtue of this section.

I51253Transfer of land F244by private registered provider

1

This section applies if as a result of an inquiry under section 206 or an audit under section 210 the regulator is satisfied that—

a

the affairs of a F182private registered provider have been mismanaged in relation to social housing, or

b

a transfer of land by a F129private registered provider would be likely to improve the management of the land.

2

The regulator may require the registered provider to transfer specified land—

a

to the regulator, or

b

to another specified F264private registered provider.

3

A requirement may be imposed on a profit-making registered provider only in relation to its social housing and associated land.

4

For the purposes of subsection (3) land is associated with social housing if the regulator thinks that it is used in connection with the social housing or its management.

5

A requirement may not be imposed on a non-profit registered provider requiring it to transfer land to a profit-making registered provider.

6

A requirement may not be imposed on a registered charity.

7

A requirement may be imposed on a charity which is not registered (C1), but only for transfer to another charity (C2) whose objects the regulator thinks are similar to those of C1.

I131254Section 253: supplemental

1

A transfer under section 253 shall be on terms specified in, or determined in accordance with, the requirement.

2

The price shall be not less than an amount certified by the district valuer as the amount the property would fetch if sold by a willing seller to another registered provider.

3

The terms shall include provision as to the payment of any debts or liabilities in respect of the land (whether or not secured on it).

4

A requirement to transfer land may be imposed only with the Secretary of State's consent (both as to the transfer and the terms).

5

Where land is transferred to the regulator under section 253(2)(a)—

a

the regulator may dispose of it only to a registered provider, and

b

if it is transferred by a non-profit registered provider, the regulator may dispose of it only to a non-profit registered provider.

I105255Amalgamation

1

This section applies if as a result of an inquiry under section 206 or an audit under section 210 the regulator is satisfied that—

a

the affairs of a non-profit registered provider which is F208a registered society have been mismanaged in relation to social housing, or

b

the management of social housing owned by a non-profit registered provider which is F208a registered society would be improved if the provider were amalgamated with another F10registered society.

2

The regulator may make and execute on behalf of the society an instrument providing for the amalgamation of the society with another F10registered society.

3

The regulator may act under subsection (2) only with the Secretary of State's consent.

4

An instrument providing for the amalgamation of a society (“S1”) with another has the same effect as a resolution by S1 under F102section 109 of the Co-operative and Community Benefit Societies Act 2014 (amalgamation of societies by special resolution).

5

A copy of an instrument shall be sent to and registered by the F217Financial Conduct Authority.

6

An instrument does not take effect until the copy is registered.

7

The copy must be sent for registration during the period of 14 days beginning with the date of execution; but a copy registered after that period is valid.

8

Any body created by virtue of an amalgamation—

a

must be registered by the regulator and designated as a non-profit organisation, and

b

pending registration shall be treated as registered and designated as a non-profit organisation.

Restrictions on dealings F44by non-profit registered providers

Annotations:

Amendments (Textual)

F44

Words in cross-heading before s. 256 inserted (1.4.2010) by The Housing and Regeneration Act 2008 (Registration of Local Authorities) Order 2010 (S.I. 2010/844), art. 1(2), Sch. 1 para. 72

may revoke the order before that time;

b

may by order extend it for a specified period of up to 6 months.

I48257Restrictions on dealings following inquiry

1

This section applies if as a result of an inquiry under section 206 or an audit under section 210 the regulator is satisfied that the affairs of a non-profit registered provider have been mismanaged.

2

The regulator may order a bank or other person who holds money or securities on behalf of the registered provider not to part with the money or securities without the regulator's consent.

3

The regulator may make an order restricting—

a

the transactions that may be entered into by the registered provider, or

b

the nature and amounts of payments that may be made by it.

4

An order under subsection (3) may in particular provide that transactions may not be entered into or payments made without the regulator's consent.

5

The regulator may make an order in respect of a registered provider that is a registered charity only if it has received public assistance.

6

An order under this section has effect until revoked by the regulator.

I137258Restrictions on dealings: supplemental

1

Before making an order under section 256 or 257 the regulator must take all reasonable steps to give notice to—

a

the registered provider, and

b

in the case of an order under section 256(4) or 257(2), the person to whom the order is directed.

2

Contravention of an order under section 256(4) or 257(2) is an offence.

3

A person guilty of an offence is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

4

Proceedings for an offence may be brought only by or with the consent of—

a

the regulator, or

b

the Director of Public Prosecutions.

Suspension and removal of officers F139of non-profit registered providers

Annotations:

Amendments (Textual)

F139

Words in cross-heading before s. 259 inserted (1.4.2010) by The Housing and Regeneration Act 2008 (Registration of Local Authorities) Order 2010 (S.I. 2010/844), art. 1(2), Sch. 1 para. 73

I81259Suspension during inquiry

1

The regulator may make an order under this section if—

a

an inquiry under section 206 is in progress in respect of a non-profit registered provider, and

b

either of the following cases applies.

2

Case 1 applies if the regulator has reasonable grounds for believing—

a

that the affairs of the registered provider have been mismanaged, and

b

that the interests of tenants of the registered provider, or its assets, require protection.

3

Case 2 applies if as a result of an inquirer's interim report under section 207 the regulator is satisfied that the affairs of the registered provider have been mismanaged.

4

The regulator may by order suspend any officer, employee or agent of the registered provider who it thinks has contributed to the failure or mismanagement.

5

The regulator may suspend an officer, employee or agent of a registered charity only if the charity has received public assistance.

6

An order ceases to have effect at the end of the period of 6 months beginning with the day on which the inquirer's final report under section 207 is made.

7

But the regulator may revoke an order before the end of that period.

8

The regulator shall notify the Charity Commission if it suspends an officer, employee or agent of a registered charity.

I142260Removal or suspension following inquiry

1

This section applies if as a result of an inquiry under section 206 or an audit under section 210 the regulator is satisfied that the affairs of a non-profit registered provider have been mismanaged.

2

The regulator may by order remove any officer, employee or agent of the registered provider who it thinks has contributed to the failure or mismanagement.

3

4

The regulator shall notify a person whose disqualification is waived.

5

If a disqualified person acts as an officer of a registered provider, the person's acts are not invalid by reason only of the disqualification.

I135263Register of disqualified persons

1

The regulator shall maintain a register of persons disqualified under section 262.

2

The register must show details of any waivers.

3

The regulator shall make the register available for inspection by the public.

I58264Acting while disqualified: offence

1

It is an offence for a person to act as an officer of a registered provider in respect of which the person is disqualified under section 262.

2

A person guilty of an offence is liable—

a

6

Case 5 applies to a person who is disqualified under F114section 178 of the Charities Act 2011 from being a charity trustee.

7

Case 6 applies to a person who is incapable of acting by reason of mental disorder.

8

Case 7 applies to a person who is impeding the proper management of the registered provider by reason of absence or failure to act.

I90267Section 266: supplemental

1

Before making an order under section 266 in respect of an officer the regulator must take all reasonable steps to give at least 14 days' notice to—

a

the officer, and

b

the registered provider.

2

An order may be made in respect of an officer of a registered charity only if the charity has received public assistance.

I32268Appeal against removal or suspension

A person removed or suspended under section 259, 260 or 266 may appeal to the High Court.

the regulator has consulted the Charity Commission.

F219Censure of local authority employees

Annotations:

Amendments (Textual)

F219

Ss. 269A, 269B and cross-heading inserted (1.4.2010) by The Housing and Regeneration Act 2008 (Registration of Local Authorities) Order 2010 (S.I. 2010/844), art. 1(2), Sch. 1 para. 74

269ALocal authorities: censure during or following inquiry

1

The regulator may give a censure notice to a local authority if—

a

an inquiry under section 206 is in progress in respect of the authority, and

b

either of the following cases applies.

2

Case 1 applies if the regulator has reasonable grounds for believing—

a

that the affairs of the authority have been mismanaged, and

b

that the interests of tenants of the authority, or its assets, require protection.

3

Case 2 applies if as a result of an inquirer’s interim report under section 207 the regulator is satisfied that the affairs of the authority have been mismanaged.

4

The regulator may also give a censure notice to a local authority if, as a result of an inquiry under section 206, the regulator is satisfied that the affairs of the authority have been mismanaged.

5

A censure notice is a notice identifying an employee or agent of the authority who the regulator thinks has contributed to the failure or mismanagement.

6

The notice must include the regulator’s reasons.

7

The regulator shall send a copy of the notice to the employee or agent concerned.

8

No more than one employee or agent may be identified in a censure notice (but this does not prevent several notices being given in respect of the same failure or mismanagement).

9

Members of local authorities may not be identified in censure notices.

269BResponse to censure notice

1

A local authority to whom a censure notice is given under section 269A must respond to the regulator in writing within 28 days of receipt of the notice.

2

The response must—

a

explain what action (if any) the authority has taken or proposes to take in relation to the employee or agent,

b

explain why the authority does not think the employee or agent has contributed to the failure or mismanagement, or

c

explain why the authority does not think its affairs have been mismanaged.

Chapter 8General

Interpretation

I100270Officer

The Table gives the meaning of “officer” in relation to registered providers.

F21private registered provider	Meaning of “officer”
Registered charity which is not a registered company	Trustee, secretary or treasurer
F10Registered society	“Officer” within the meaning given by F322section 149 of the Co-operative and Community Benefit Societies Act 2014 (including a person co-opted to serve on the society's committee)
Registered company	“Officer” within the meaning given by section 1173 of the Companies Act 2006

I37271Subsidiary and associate

1

A company is a “subsidiary” of a person if any of the following conditions is satisfied.

2

Condition 1 is that the person—

a

is a member of the company, and

b

2

Granting an option to require a disposal shall be treated as making a disposal.

I84274Charities that have “received public assistance”

1

For the purposes of this Part a registered charity has received public assistance if at least one of the following conditions is satisfied.

2

Condition 1 is that the charity has received financial assistance from the HCA under section 19.

3

Condition 2 is that the charity has received financial assistance under section 24 of the Local Government Act 1988 (c. 9) (assistance for privately let housing accommodation).

4

Condition 3 is that the charity has had housing transferred to it pursuant to—

a

a large scale disposal, within the meaning of section 34 of the Housing Act 1985 (c. 68), for which consent was required under section 32 or 43 of that Act, or

b

a qualifying disposal that was made under section 135 of the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28).

5

Condition 4 is that the charity has received a grant or loan under—

a

section 18 of the Housing Act 1996 (c. 52) (social housing grants),

b

section 22 of that Act (assistance from local authorities),

c

section 58 of the Housing Associations Act 1985 (c. 69) (grants or loans by local authorities),

d

section 50 of the Housing Act 1988 (c. 50), section 41 of the Housing Associations Act 1985 or any enactment replaced by that section (housing association grant),

e

section 51 of the Housing Act 1988 (c. 50) or section 54 or 55 of the Housing Associations Act 1985 (c. 69) (revenue deficit grant or hostel deficit grant),

f

section 79 of the Housing Associations Act 1985 (loans by Housing Corporation),

g

section 31 of the Housing Act 1974 (c. 44) (management grants), or

h

any enactment mentioned in paragraph 2 or 3 of Schedule 1 to the Housing Associations Act 1985 (pre-1974 grants and certain loans).

I66 I134275General

In this Part, except where the context requires otherwise—

“action” includes inaction, proposed action and decision,
“assured agricultural occupancy” has the same meaning as in Part 1 of the Housing Act 1988,
“assured tenancy” has the same meaning as in that Part,
“the Charity Commission” means the Charity Commission for England and Wales,
“committee”, in relation to F338a registered society, means the committee of management or other directing body of the society (including any person co-opted to serve on the committee, whether a member of the society or not),
“consent” means written consent,
“constitution” includes rules,
“conveyance” includes grant, assignment and any other instrument,
“district valuer” has the meaning given by section 622 of the Housing Act 1985 (c. 68),
“dwelling”—
1. a
  means a house, flat or other building or part of a building occupied or intended to be occupied as a separate dwelling, and
2. b
  includes any garden, yard, outhouse or other appurtenance belonging to, or usually enjoyed with, the dwelling,
“the HCA” means the Homes and Communities Agency,
F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“local authority” has the same meaning as in the Housing Associations Act 1985,
“local housing authority” has the same meaning as in the Housing Act 1985,
“maintenance” includes repair,
F188“mismanagement”, in relation to the affairs of a registered provider, means managed in breach of any legal requirements (imposed by or under an Act or otherwise);
“non-registrable charity” means a charity which is not required to be registered, in accordance with F184section 30 of the Charities Act 2011,
“notice” means written notice (and to “notify” means to give written notice),
F303"preferential creditor", "preferential debt”, “ordinary preferential debt” and “secondary preferential debt” have the same meaning as in the Insolvency Act 1986 (c. 45),
“price” includes premium,
“registered charity” means a charity registered under F162the Charities Act 2011,
“registered company” means a company within the meaning of the Companies Act 2006 (c. 46),
F71“registered society” has the same meaning as in the Co-operative and Community Benefit Societies Act 2014,
“rent” includes payments under a licence to occupy accommodation,
“representations” means written representations,
“secure tenancy” has the same meaning as in Part 4 of the Housing Act 1985 (c. 68),
“secured creditor” means a creditor who holds a mortgage or charge (including a floating charge) over—
1. a
  land held by a registered provider, or
2. b
  a present or future interest of a registered provider in rents or other receipts from land,
“tenant” in relation to social housing includes other occupiers, and
F205. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

I113 I24276Index of defined terms

The Table lists expressions defined in this Part.

Expression	Section
F141. . .	F141. . .
Associate	Section 271
Assured agricultural occupancy	Section 275
Assured tenancy	Section 275
F50Censure notice	F50Section 269A
F288The chair	F288Section 92C
Charity Commission	Section 275
Committee (F337registered society)	Section 275
Compensation notice	Section 240
Consent	Section 275
Constitution	Section 275
Conveyance	Section 275
Disposal	Section 273
District valuer	Section 275
Dwelling	Section 275
Enforcement notice	Sections 219 to 225
Equity percentage arrangements	Section 70(5)
F288External member	F288Section 92C
Family	Section 272
Financial year	Section 104
Fundamental objectives	F207Section 92K
The HCA	Section 275
F252. . .	F252. . .
F288The internal member	F288Section 92C
Local authority	Section 275
Local housing authority	Section 275
Low cost home ownership accommodation	Section 70
Low cost rental accommodation	Section 69
Maintenance	Section 275
Mismanagement	Section 275
Non-profit organisation	Section 115
Non-registrable charity	Section 275
Notice	Section 275
Officer	Section 270
F73Ordinary preferential debt	Section 275
Penalty notice	Section 228
Pre-compensation warning	Section 242
Pre-penalty warning	Section 230
Preferential creditor	Section 275
Preferential debt	Section 275
Price	Section 275
F50Private registered provider (of social housing)	F50Section 80
Profit-making organisation	Section 115
Provider (of social housing)	Section 80
Received public assistance (charities)	Section 274
Registered charity	Section 275
Registered company	Section 275
Registered provider (of social housing)	Section 80
F1Registered society	Section 275
The regulator	F265Section 92A
The Regulator of Social Housing	F237Section 92A
Rent	Section 275
Representations	Section 275
F73Secondary preferential debt	Section 275
Secure tenancy	Section 275
Secured creditor	Section 275
Shared ownership arrangements	Section 70(4)
Shared ownership trust	Section 70(6)
Social housing	Section 68
Subsidiary	Section 271
Tenant	Section 275
F221. . .	F221. . .

Miscellaneous

I144 I214 I204 I38277Consequential amendments

Schedule 9 (which contains amendments of enactments) has effect.

I174278Transitional

1

The regulator shall include in the register under section 111 on its establishment anyone—

a

who was registered under section 1 of the Housing Act 1996 (c. 52) (register of social landlords) immediately before section 61 came into force, and

b

in relation to whom the Relevant Authority was the Housing Corporation (in accordance with section 56 of that Act).

2

A person registered under this section shall be designated as a non-profit organisation.

278AF218Power to nominate for consultation purposes

1

The Secretary of State may for the purposes of the following provisions of this Part nominate a body appearing to the Secretary of State to represent the interests of tenants of social housing in England—

a

section 112(4);

F90b

section 176;

c

section 196(1);

d

section 197(4);

e

section 216.

2

The Secretary of State must notify the regulator of any nomination (or withdrawal of any nomination) under this section.

C2Part 2Regulation of Social Housing

Chapter 1Introduction

Preliminary

59I53Purpose

I7760Structural overview

1

2

3

a

b

4

a

b

c

a

b

c

d

e

a

b

c

a

b

c

d

a

F279b

F300c

F300d

e

f

F300g

a

b

c

d

e

a

b

c

d

e

f

g

F247h

a

b

I15561Restriction of “registered social landlord” system to Wales

1

2

A1Introduction

3

a

b

4

1AWelsh bodies

a

b

c

5

a

b

c

2A

a

b

d

e

6

a

b

7

8

9

I20862References to Welsh Ministers

a

b

c

d

I112 I1967Transitional arrangements

I191 I2768Basic principle

I212 I8369Low cost rental

I106 I770Low cost home ownership

I30 I18671Shared ownership low cost rental