Part 2Regulation of Social Housing
Chapter 4Registered providers
General provisions
122Payments to members etc.
1
This section restricts the making of gifts, and the payment of dividends and bonuses, by a non-profit registered provider to—
a
a member or former member of the registered provider,
b
a member of the family of a member or former member,
c
a company which has as a director a person within paragraph (a) or (b).
2
A gift may be made, and a dividend or bonus may be paid, only if it falls within one of the following permitted classes.
3
Class 1 is payments which—
a
are in accordance with the constitution of the registered provider, and
b
are due as interest on capital lent to the provider or subscribed in its shares.
4
Class 2 is payments which—
a
are paid by a fully mutual housing association (within the meaning of section 1(2) of the Housing Associations Act 1985 (c. 69)),
b
are paid to former members of the association, and
c
are due under—
i
tenancy agreements with the association, or
ii
agreements under which the former members became members of the association.
5
Class 3 is payments which—
a
are in accordance with the constitution of the registered provider making the payment (“the payer”), and
b
are made to a registered provider which is a subsidiary or associate of the payer.
6
If a registered company or industrial and provident society contravenes this section—
a
it may recover the wrongful gift or payment as a debt from the recipient, and
b
the regulator may require it to take action to recover the gift or payment.
I1123Disposal of property
Chapter 5 makes provision about disposal of property F1by private registered providers.
124Complaints
1
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).
125Voluntary undertaking
1
A registered provider may give the regulator an undertaking in respect of any matter concerning social housing.
2
The regulator may prescribe a procedure to be followed in giving an undertaking.
3
In exercising a power under Chapter 6 or 7 the regulator must have regard to any undertaking offered or given.
4
The regulator may found a decision about whether to exercise a power under Chapter 6 or 7 wholly or partly on the extent to which an undertaking has been honoured.
126Sustainable community strategies
If invited by a local authority to participate in the preparation or modification of a sustainable community strategy under section 4 of the Local Government Act 2000 (c. 22), a registered provider must co-operate with the local authority.