Part 4Higher-risk buildings

Landlord and tenant etc

I2I1114Commonholds

1

The Commonhold and Leasehold Reform Act 2002 is amended as follows.

2

In section 13(3) (joint unit-holders), after paragraph (fa) insert—

faa

section 38A(1),

3

In section 14 (use and maintenance)—

a

in the heading, for “and maintenance” substitute “, maintenance and building safety”;

b

after subsection (3) insert—

4

A commonhold community statement for a higher-risk commonhold must make provision requiring the commonhold association to comply with its duties under Part 4 of the Building Safety Act 2022, or regulations made under that Part of the Act, in relation to each commonhold unit.

4

In section 26 (use and maintenance)—

a

in the heading, for “and maintenance” substitute “, maintenance and building safety”;

b

the existing subsection becomes subsection (1);

c

after that subsection insert—

2

A commonhold community statement for a higher-risk commonhold must make provision requiring the commonhold association to comply with its duties under Part 4 of the Building Safety Act 2022, or regulations made under that Part of that Act, in relation to the common parts.

5

In section 31(5) (form and content of commonhold community statement), after paragraph (d) insert—

da

to give information;

db

to apply for grants or other funding;

6

In section 32(5)(a) (regulations), after “38,” insert “38A,”.

7

In section 38 (commonhold assessment), after subsection (2) insert—

3

In subsection (1)(a) “expenses of the association” does not include building safety expenses of the association (within the meaning of section 38A).

8

After section 38 insert—

38ABuilding safety assessment

1

A commonhold community statement for a higher-risk commonhold must make provision—

a

requiring the directors of the commonhold association to make an annual estimate of the income required to be raised from unit-holders to meet the building safety expenses of the association,

b

enabling the directors of the commonhold association to make estimates from time to time of income required to be raised from unit-holders in addition to the annual estimate,

c

specifying the percentage of any estimate made under paragraph (a) or (b) which is to be allocated to each unit,

d

requiring each unit-holder to make payments in respect of the percentage of any estimate which is allocated to their unit, and

e

requiring the directors of the commonhold association to serve notices on unit-holders specifying payments required to be made by them and the date on which each payment is due.

2

For the purpose of subsection (1)(c)—

a

the percentages allocated by a commonhold community statement to the commonhold units must amount in aggregate to 100;

b

a commonhold community statement may specify 0 per cent in relation to a unit.

3

In this section—

  • “building safety expenses of the association” means the expenses incurred by the commonhold association or special measures manager for the higher-risk building in connection with taking measures that the association or manager is required or permitted to take under Part 4 of the Building Safety Act 2022, or regulations made under that Part of that Act;

  • “special measures manager” means a person appointed under paragraph 4 of Schedule 7 to the Building Safety Act 2022.

9

In section 69(1) (interpretation), before the definition of “instrument” insert—

  • “higher-risk building” has the meaning given by section 115 of the Building Safety Act 2022,

  • “higher-risk commonhold” means a commonhold in England that includes all or any part of a higher-risk building,