The Greater London Council (Transfer of Land and Housing Accommodation) (No. 3) Order 1981

Article 6

SCHEDULE 1 WORKS OF REHABILITATION ETC. ON TRANSFERRED PROPERTY

1.—(1) The Council shall, in consultation with the transferee and a representative body, prepare programmes for works to which article 6 applies.

(2) In the case of the properties listed in Part 5 of the deposited Schedule, the said programmes shall, and in any other case shall not, consist of or include—

(a) works of construction of housing accommodation;

(b) works commencing before the relevant date.

(3) The works required by the said programmes may (save as respects the properties listed in Part 5 of the deposited Schedule) be designed and carried out by the transferee with the consent of the Council where such a course appears expedient to the Council; but save as aforesaid the Council shall design and carry out all such works.

(4) The said programmes may provide for the transferee to assign to the Council the benefit and burden of any transferred rights or liabilities, and article 6(5) shall apply in respect of any such transferred rights or liabilities as it applies to any contract falling within that article.

(5) In this paragraph “transferred rights or liabilities” means all contracts, deeds, bonds, agreements and other instruments, notices and causes of action falling within article 4(a) or (b) and transferred by this order together with the transferred property.

2.—(1) Where after the relevant date the Council incurs any loan debt in connection with carrying out any works under this Schedule, the transferee shall be liable for all repayments of principal, interest and management expenses in respect of the loan debt so incurred, less the net cost of the works, as calculated in accordance with paragraph 3, and shall discharge such liability by making payments to the Council in such installments and at such times as may be agreed between the parties.

(2) Where the transferee carries out any works required by a programme prepared under this Schedule with the consent of the Council, the Council shall pay in respect of any financial year commencing with 1985/86 the net cost (if any) for that year of any such works, as calculated in accordance with paragraph 3.

3.—(1) The net cost of any works is the amount by which the gross costs thereof exceed the income receivable therefrom.

(2) In this paragraph—

“gross costs” means the sum of:—

(a)

the loan charges incurred by the transferee in connection with the works or, as the case may be, the liabilities of the transferee under paragraph 2, and

(b)

all costs reasonably incurred by the transferee in connection with the disturbance or removal of tenants, as agreed with the Council, and

“income receivable” means the sum of:—

(a)

any grants or subsidies receivable by the transferee in respect of the works, and

(b)

any additional rental income which would be receivable by the transferee as a result of the works being completed, as determined by the Council.

(3) Where the rents (including subsidies) receivable by the transferee in respect of the transferred property exceed the outgoings in respect thereof, as calculated under Schedule 3, the amount of the excess shall be deducted from the net cost under this paragraph.

Article 17

SCHEDULE 2 RIGHTS OF THE GREATER LONDON COUNCIL TO NOMINATE TENANTS TO TRANSFERRED PROPERTY

1.—(1) For the purpose of—

(a) assisting in meeting the requirements of the Council and of the London borough councils for housing accommodation arising from the discharge of any of their functions; and

(b) providing opportunities for the movement of persons requiring rented accommodation in Greater London,

the Council shall, until 31st March 1990, from time to time make, and operate, schemes for the allocation of vacancies in the dwellings transferred by this order in respect of which they enjoy the rights to arrange for the nomination of tenants conferred by paragraph 2.

(2) Without prejudice to the generality of the objectives specified in sub-paragraph (1), the Council, in preparing a scheme under this paragraph, shall have regard to—

(a) the need to make provision for the re-housing of persons displaced by the discharge of the Council's functions;

(b) the need to make provision for persons formerly resident in Greater London to return to Greater London;

(c) the relative housing needs of London borough councils; and

(d) the incidence and extent of homelessness within Greater London.

(3) In preparing, reviewing or modifying a scheme under this paragraph, the Council shall consult any bodies which appear to the Council to represent authorities to which land or housing accommodation has been transferred by an order made under section 23(3) of the London Government Act 1963.

(4) At the end of each year of its operation, a scheme made under this paragraph shall be reviewed by the Council and modified so far as is necessary in the light of the objectives specified in sub-paragraph (1) and of the considerations set out in sub-paragraph (2).

(5) To enable the Council to operate, review or modify a scheme made under this paragraph, the transferee shall provide the Council with such information as the Council may from time to time reasonably require.

(6) The Council shall provide the Secretary of State with such information as to the operation of a scheme made under this paragraph as he may reasonably require to satisfy himself that the purposes of the scheme are being achieved.

2.—(1) From the relevant date until 31st March 1990, the Council shall, without payment and for the purposes of any scheme made under paragraph 1 and for the time being in force, be entitled to arrange for the nomination of tenants to such proportion of vacancies in the dwellings transferred by this order to the transferee, being not less than 20 per centum nor more than 50 per centum of such vacancies, as may be determined by the Council in accordance with the provisions of the said scheme.

(2) The transferee shall ensure that the vacancies which it makes available to the Council for the purposes of this paragraph shall, so far as is practicable, be in dwellings which, in size, type, age and quality are, taken as a whole, representative of the dwellings, transferred by this order to the transferee, in which vacancies occur.

3.—(1) In this Schedule “ vacancy” in relation to any dwelling transferred by this order means —

(a) a vacancy existing at the date of transfer in a dwelling which is available for occupation at that date;

(b) a vacancy existing at the date of transfer in a dwelling which becomes available for occupation after that date;

(c) a vacancy (other than a vacancy specified in sub-paragraph (2)) which arises after the date of transfer in a dwelling which is available for occupation at the date when that vacancy arises; and

(d) a vacancy (other than a vacancy specified in sub-paragraph (2)) which arises after the date of transfer in a dwelling which becomes available for occupation after the date on which that vacancy arises.

(2) The vacancies excluded from sub-paragraph (1)(c) and (d) are vacancies arising directly or indirectly in consequence of the tenant of the dwelling in question—

(a) moving, or being transferred, to another dwelling owned by the transferee;

(b) moving to a dwelling owned by another local authority pursuant to an arrangement, made between the transferee and that other local authority, whereby a reciprocal vacancy is to be made available to that other local authority by the transferee; or

(c) being re-housed by a housing association pursuant to a right of nomination enjoyed by the transferee.

(3) In this Schedule the term “vacancies in the dwellings transferred” shall be deemed to refer both to dwellings situate upon transferred property at the relevant date and to dwellings to be provided upon transferred property after the relevant date pursuant to article 6 or to any other arrangement made between the Council and the transferee leading to such provision.

(4) Nothing in this Schedule shall affect any agreement as to nomination made or to be made between the Council and any local authority.

Article 22

SCHEDULE 3

PART 1 PAYMENTS IN RESPECT OF HOUSING ACCOMMODATION GENERALLY

1.—(1) The following payments shall be made in respect of each financial year from 1981/82 to 1987/88.

(2) For the purpose of improving the management and maintenance of housing accommodation in the area of the transferee, whether vested in the transferee or the Council, and whether so vested before or after the relevant date, the Council shall pay:—

(a) £1,000.000; and

(b) an additional sum, representing the increased costs of management and maintenance in the year in question as compared with 1980/81, which shall be calculated in such manner as the parties may agree.

(3) Where the Council is satisfied, upon consideration of a representation made by a joint committee of the Council and the transferee or by the transferee alone, that further payments ought to be made to the transferee, the Council shall pay such sum as it shall determine.

PART II PAYMENTS IN RESPECT OF NET COST OF TRANSFERRED PROPERTY

2.  Payments in respect of the net cost of the transferred property shall be made in accordance with the following provisions of this Part of this Schedule.

3.—(1) Where in any financial year commencing with 1985/86 the outgoings in respect of the transferred property exceed the rents (including subsidies) receivable therefor, the difference shall be paid by the Council.

(2) In this paragraph, subject to any adjustment under paragraph 4 to 6—

“the outgoings” means the sum of:—

(i)

the liabilities of the transferee under article 19 for the year in question, and

(ii)

the costs of managing and maintaining the transferred property for 1984/85, as determined by the Council;

“rents” means all the income from the transferred property (including rent rebate subsidy) for 1984/85, as determined by the Council; and

“subsidies” means all grants or subsidies payable in respect of the transferred property, other than rent rebate subsidy.

(3) Any payment which falls to be made for 1985/86 shall be abated in proportion to the part of that year which commences with the relevant date.

(4) For 1985/86 any factors which are agreed between the Council and the transferee to be peculiar to 1985/86 and attributable to events occurring immediately before the relevant date, shall be taken into account for that year.

(5) Where—

(a) any building which is in the course of construction on the transferred property at the relevant date, or

(b) any building on property listed in Part 5 of the deposited Schedule,

becomes available for letting after the relevant date, the outgoings and the rents in respect thereof shall be appropriately adjusted in such manner as the Council shall determine.

4.  The costs referred to in paragraph 3 shall be adjusted in accordance with—

(a) such office and other accommodation as the transferee may require for the purpose of managing and maintaining the transferred property, in addition to any such accommodation which is included in the transferred property;

(b) the costs incurred by the transferee in pursuance of Schedule 2; and

(c) in respect of 1985/86, all special costs reasonably incurred by the transferee within six months of the relevant date in consequence of this order, as agreed with the Council.

5.—(1) In calculating the subsidies referred to in paragraph 3, no account shall be taken of any recoupment or reduction of subsidy under Part VI of the Housing Act 1980, save such as may result from the demolition by the transferee of any houses on the transferred property occurring after the relevant date in pursuance of a programme under Schedule 1.

(2) Where the period for which subsidy would be receivable but for the said recoupment or reduction begins before the relevant date, the amount of subsidy which would be receivable but for the recoupment or reduction shall be such reasonable amount as the Council and the transferee may agree.

6.—(1) The costs referred to in paragraph 3(2)(ii) shall be taken to be increased in each year by an amount to be determined by the Council, which shall not be less than the sum per dwelling stated by the Secretary of State to have been used for the purpose of determining the reckonable expenditure of the transferee under section 99 of the Housing Act 1980.

(2) The rents referred to in paragraph 3 shall be taken to be increased in each year by an amount to be determined by the Council, which shall not exceed the sum per dwelling stated by the Secretary of State to have been used for the purpose of determining the local contribution differential of the transferee under section 100 of the Housing Act 1980.

(3) Before determining the amount of any increase under this paragraph, the Council shall consult the transferee and a representative body.

7.—(1) Where the transferee disposes of or appropriates any transferred property, any payment falling to be made in respect of that property under paragraph 3 for any financial year commencing after the disposal or appropriation takes place shall be adjusted in accordance with the following provisions of this paragraph.

(2) For the purpose of this paragraph the Council shall determine what payment (if any) would fall to be made under this Part of this Schedule if the property so disposed of or appropriated were the only transferred property (in this paragraph referred to as “the part payment”).

(3) Where the consideration for the disposal, or the value at which the appropriation is made, expressed in money, is sufficient to discharge the outstanding loan debt attributable to the property, the payment for which the Council is liable shall be reduced by the amount of the part payment.

(4) Where such consideration or value is insufficient to discharge the outstanding loan debt attributable to the property, and the part payment exceeds the residual loan charges, the payment for which the Council is liable shall be reduced by the excess of the part payment over the residual loan charges.

(5) In this paragraph “residual loan charges” means such part of the loan charges payable in respect of the property as the Council shall determine, being the amount which would remain to be met after applying in respect of the property either any annual mortgage payments to be made to the transferee, or any capital sums received by the transferee, and after deducting any grant or subsidy continuing to be payable in respect of the property.

8.  The transferee shall furnish the Council with sufficient details of the disposal or appropriation of any transferred property to enable the adjustment required by paragraph 7 to be made.

9.—(1) Not later than the 31st March 1990, the Council shall review the terms set out in this Part of this Schedule for the purpose of considering the need for payments to be, or continue to be, made by the Council; and where it is agreed in consequence of such review that payments should be made having regard to the financial needs of the transferee, then the Council shall make such payments for such a period, and on such terms and conditions, as may be agreed.

(2) The Council or the transferee may at any time give notice requiring the terms set out in this Part of this Schedule to be reviewed, and specifying the circumstances which in the opinion of the notifying party call for the review, and thereupon the Council shall review the said terms; and in the event of such a review such payments shall be made as may be agreed or in default of agreement determined by the Secretary of State.

(3) Not earlier than the 31st March 1995, and every five years thereafter, the Council may, and if so requested by the transferee shall, carry out a further review of the terms set out in this Part of this Schedule; and the provisions of sub-paragraph (1) shall apply to any such further review.

(4) Any review to which this paragraph applies shall be carried out by the Council in consultation with the transferee and a representative body.