Office of Public Sector Information
SCHEDULE 7 continued PART 2 continued
(4) The scheme may also state—
(a) the authority’s intentions as regards the use of rent or other payments to meet relevant expenditure;
(b) the authority’s intentions as regards the payment to the relevant proprietor (where appropriate) of interest on amounts within sub-paragraph (3)(h) and (i);
(c) that paragraph 23(2) or, where the relevant proprietor consents, paragraph 23(3)(c) is not to apply in relation to an interim EDMO or (as the case may be) final EDMO that immediately preceded the final EDMO, and that instead the authority intend to use any balance such as is mentioned in that sub-paragraph to meet—
(i) relevant expenditure incurred during the currency of that final EDMO, and
(ii) any compensation that may become payable to a third party or a dispossessed landlord or tenant;
(d) that paragraph 23(4) to (6) are not to apply in relation to an interim EDMO or, where the relevant proprietor consents, a final EDMO that immediately preceded the final EDMO, and that instead the authority intend to use rent or other payments collected during the currency of that final EDMO to reimburse the authority in respect of any deficit such as is mentioned in paragraph 23(4);
(e) the authority’s intentions as regards the recovery from the relevant proprietor, with or without interest, of any amount of relevant expenditure incurred under a previous interim EDMO or final EDMO that the authority are entitled to recover from the proprietor under paragraph 23(5) or (6).
(5) The authority must—
(a) keep full accounts of their income and expenditure in respect of the dwelling; and
(b) afford to the relevant proprietor, and to any other person who has an estate or interest in the dwelling, all reasonable facilities for inspecting, taking copies of and verifying those accounts.
(6) In this paragraph—
“dispossessed landlord or tenant” means a person who was a lessor, lessee, licensor or licensee under a lease or licence determined by an order under paragraph 22;
“relevant expenditure” means—
expenditure incurred by the authority with the consent of the relevant proprietor, or
any other expenditure reasonably incurred by the authority, in connection with performing their duties under section 135(1) to (3) or 137(1) to (3) in respect of the dwelling (including any reasonable administrative costs and any premiums paid for insurance of the premises);
“rent or other payments” means rent or other payments collected or recovered, by virtue of this Chapter, from persons occupying or having the right to occupy the dwelling.
(7) In any provision of this Chapter relating to varying, revoking or appealing against decisions relating to a final EDMO, any reference to such an order includes (where the context permits) a reference to the management scheme contained in it.
14 (1) An affected person may apply to a residential property tribunal for an order requiring the local housing authority to manage a dwelling in accordance with the management scheme contained in a final EDMO made in respect of the dwelling.
(2) On such an application the tribunal may, if it considers it appropriate to do so, make an order—
(a) requiring the authority to manage the dwelling in accordance with the management scheme, or
(b) revoking the final EDMO as from a date specified in the tribunal’s order.
(3) An order under sub-paragraph (2) may—
(a) set out the steps which the authority are to take to manage the dwelling in accordance with the management scheme,
(b) include provision varying the final EDMO, and
(c) require the payment of money to an affected person by way of damages.
(4) In this paragraph “affected person” means—
(a) the relevant proprietor, and
(b) any third party to whom compensation is payable by virtue of an order under section 134(4) or 138(2) or a decision of the authority under section 136(4) or 138(3) or who was a lessor, lessee, licensor or licensee under a lease or licence determined by an order of the residential property tribunal under paragraph 22 and to whom compensation is payable by virtue of an order under sub-paragraph (5) of that paragraph.
15 (1) The local housing authority may vary a final EDMO if they consider it appropriate to do so.
(2) A variation does not come into force until such time, if any, as is the operative time for the purposes of this sub-paragraph under paragraph 33 (time when period for appealing expires without an appeal being made or when decision to vary is confirmed on appeal).
(3) The power to vary an order under this paragraph is exercisable by the authority either—
(a) on an application made by a relevant person, or
(b) on the authority’s own initiative.
(4) In this paragraph “relevant person” means any person who has an estate or interest in the dwelling (other than a person who is a tenant under a lease granted under paragraph 2(3)(c) or 10(3)(c)).
16 (1) The local housing authority may revoke a final EDMO in the following cases—
(a) where the authority conclude that there are no steps which they could appropriately take as mentioned in section 137(4)(b) or that keeping the order in force is not necessary as mentioned in section 137(4)(c);
(b) where the authority are satisfied that—
(i) the dwelling will either become or continue to be occupied, despite the order being revoked, or
(ii) that the dwelling is to be sold;
(c) where a further final EDMO has been made by the authority in respect of the dwelling so as to replace the order;
(d) where the authority conclude that it would be appropriate to revoke the order in order to prevent or stop interference with the rights of a third party in consequence of the order; and
(e) where in any other circumstances the authority consider it appropriate to revoke the order.
(2) But, in a case where the dwelling is occupied, the local housing authority may not revoke a final EDMO under sub-paragraph (1)(b), (d) or (e) unless the relevant proprietor consents.
(3) A revocation does not come into force until such time, if any, as is the operative time for the purposes of this sub-paragraph under paragraph 33 (time when period for appealing expires without an appeal being made or when decision to revoke is confirmed on appeal).
(4) The power to revoke an order under this paragraph is exercisable by the authority either—
(a) on an application made by a relevant person, or
(b) on the authority’s own initiative.
(5) Where a relevant person applies to the authority for the revocation of an order under this paragraph, the authority may refuse to revoke the order unless the relevant proprietor (or some other person) agrees to pay to the authority any deficit such as is mentioned in paragraph 23(4).
(6) In this paragraph “relevant person” means any person who has an estate or interest in the dwelling (other than a person who is a tenant under a lease granted under paragraph 2(3)(c) or 10(3)(c)).
17 (1) Part 2 of Schedule 6 applies in relation to the variation or revocation of a final EDMO as it applies in relation to the variation or revocation of a final management order.
(2) But Part 2 of that Schedule so applies as if—
(a) references to the right of appeal under Part 3 of the Schedule and to paragraph 29(2) were to the right of appeal under Part 4 of this Schedule and to paragraph 31(2) of this Schedule, and
(b) paragraph 23(4) defined “relevant person” as any person who, to the knowledge of the local housing authority, is a person having an estate or interest in the dwelling (other than a person who is a tenant under a lease granted under paragraph 2(3)(c) or 10(3)(c) of this Schedule).
18 (1) This paragraph applies to existing and new occupiers of a dwelling in relation to which an interim EDMO or final EDMO is in force.
(2) In this paragraph—
“existing occupier” means a person other than the relevant proprietor who, at the time when the order comes into force—
has the right to occupy the dwelling, but
is not a new occupier within sub-paragraph (4);
“new occupier” means a person who, at a time when the order is in force, is occupying the dwelling under a lease or licence granted under paragraph 2(3)(c) or 10(3)(c).
(3) Paragraphs 2 and 10 do not affect the rights or liabilities of an existing occupier under a lease or licence (whether in writing or not) under which he has the right to occupy the dwelling at the commencement date.
(4) Paragraph 10 does not affect the rights and liabilities of a new occupier who, in the case of a final EDMO, is occupying the dwelling at the time when the order comes into force.
(5) The provisions mentioned in sub-paragraph (6) do not apply to a lease or agreement under which a new occupier has the right to occupy or is occupying the dwelling.
(6) The provisions are—
(a) the provisions which exclude local authority lettings from the Rent Acts, namely—
(i) sections 14 to 16 of the Rent Act 1977 (c. 42), and
(ii) those sections as applied by Schedule 2 to the Rent (Agriculture) Act 1976 (c. 80) and section 5(2) to (4) of that Act; and
(b) section 1(2) of, and paragraph 12 of Part 1 of Schedule 1 to, the Housing Act 1988 (c. 50) (which exclude local authority lettings from Part 1 of that Act).
(7) If, immediately before the coming into force of an interim EDMO or final EDMO, an existing occupier had the right to occupy the dwelling under—
(a) a protected or statutory tenancy within the meaning of the Rent Act 1977,
(b) a protected or statutory tenancy within the meaning of the Rent (Agriculture) Act 1976, or
(c) an assured tenancy or assured agricultural occupancy within the meaning of Part 1 of the Housing Act 1988,
nothing in this Chapter (except an order under paragraph 22 determining a lease or licence) prevents the continuance of that tenancy or occupancy or affects the continued operation of any of those Acts in relation to the tenancy or occupancy after the coming into force of the order.
(8) In this paragraph “the commencement date” means the date on which the order came into force (or, if that order was preceded by one or more orders under this Chapter, the date when the first order came into force).
19 (1) An agreement or instrument within sub-paragraph (2) has effect, while an interim EDMO or final EDMO is in force, as if any rights or liabilities of the relevant proprietor under the agreement or instrument were instead rights or liabilities of the local housing authority.
(2) An agreement or instrument is within this sub-paragraph if—
(a) it is effective on the commencement date,
(b) one of the parties to it is the relevant proprietor of the dwelling,
(c) it relates to the dwelling, whether in connection with any management activities with respect to it, or otherwise,
(d) it is specified for the purposes of this sub-paragraph in the order or falls within a description of agreements or instruments so specified, and
(e) the authority serve a notice in writing on all the parties to it stating that sub-paragraph (1) is to apply to it.
(3) An agreement or instrument is not within sub-paragraph (2) if—
(a) it is a lease or licence within paragraph 2(6) or 10(6), or
(b) it relates to any disposition by the relevant proprietor which is not precluded by paragraph 4(7) or 12(7).
(4) Proceedings in respect of any cause of action within sub-paragraph (5) may, while an interim EDMO or final EDMO is in force, be instituted or continued by or against the local housing authority instead of by or against the relevant proprietor.
(5) A cause of action is within this sub-paragraph if—
(a) it is a cause of action (of any nature) which accrued to or against the relevant proprietor of the dwelling before the commencement date,
(b) it relates to the dwelling as mentioned in sub-paragraph (2)(c),
(c) it is specified for the purposes of this sub-paragraph in the order or falls within a description of causes of action so specified, and
(d) the authority serve a notice in writing on all interested parties stating that sub-paragraph (4) is to apply to it.
(6) If, by virtue of this paragraph, the authority become subject to any liability to pay damages in respect of anything done (or omitted to be done) before the commencement date by or on behalf of the relevant proprietor of the dwelling, the relevant proprietor is liable to reimburse to the authority an amount equal to the amount of damages paid by them.
(7) In this paragraph—
“agreement” includes arrangement;
“the commencement date” means the date on which the order comes into force (or, if that order was preceded by one or more orders under this Chapter, the date when the first order came into force);
“management activities” includes repair, maintenance, improvement and insurance.
20 (1) Sub-paragraph (2) applies where, on the date on which an interim EDMO or final EDMO comes into force, there is furniture owned by the relevant proprietor in the dwelling.
(2) Subject to sub-paragraphs (3) and (4), the right to possession of the furniture against all persons vests in the local housing authority on that date and remains vested in the authority while the order is in force.
(3) The right of the local housing authority under sub-paragraph (2) to possession of the furniture is subject to the rights of any person who, on the date on which the interim EDMO or final EDMO comes into force, has the right to possession of the dwelling.
(4) Where—
(a) the local housing authority have the right to possession of the furniture under sub-paragraph (2), and
(b) they have not granted a right to possession of the furniture to any other person,
they must, on a request by the relevant proprietor, give up possession of the furniture to him.
(5) The local housing authority may renounce the right to possession of the furniture conferred by sub-paragraph (2) by serving notice on the relevant proprietor not less than two weeks before the renunciation is to have effect.
(6) Where the local housing authority renounce the right to possession of the furniture under sub-paragraph (5), they must make appropriate arrangements for storage of the furniture at their own cost.
(7) In this paragraph “furniture” includes fittings and other articles.
21 (1) The local housing authority may supply the dwelling to which an interim EDMO or final EDMO relates with such furniture as they consider to be required.
(2) For the purposes of paragraph 5 or paragraph 13, any expenditure incurred by the authority under this paragraph constitutes expenditure incurred by the authority in connection with performing their duties under section 135(1) to (3) or 137(1) to (3).
(3) In this paragraph “furniture” includes fittings and other articles.
22 (1) A residential property tribunal may make an order determining a lease or licence to which this paragraph applies if—
(a) the case falls within sub-paragraph (3) or (4), and
(b) the tribunal are satisfied that the dwelling is not being occupied and that the local housing authority need to have the right to possession of the dwelling in order to secure that the dwelling becomes occupied.
(2) This paragraph applies to the following leases and licences of a dwelling—
(a) a lease of the dwelling in respect of which the relevant proprietor is the lessor,
(b) a sub-lease of any such lease, and
(c) a licence of the dwelling.
(3) A case falls within this sub-paragraph if—
(a) an interim or final EDMO is in force in respect of the dwelling, and
(b) the local housing authority have applied under paragraph 2(3)(d) or 10(3)(d) for an order determining the lease or licence.
(4) A case falls within this sub-paragraph if—
(a) the local housing authority have applied to the residential property tribunal under section 133 for an order authorising them to make an interim EDMO in respect of the dwelling and an order determining the lease or licence, and
(b) the residential property tribunal has decided to authorise the authority to make an interim EDMO in respect of the dwelling.
(5) An order under this paragraph may include provision requiring the local housing authority to pay such amount or amounts to one or more of the lessor, lessee, licensor or licensee by way of compensation in respect of the determination of the lease or licence as the tribunal determines.
(6) Where—
(a) a final EDMO is in force in respect of a dwelling, and
(b) the tribunal makes an order requiring the local housing authority to pay an amount of compensation to a lessor, lessee, licensor or licensee in respect of the determination of a lease or licence of the dwelling,
the tribunal must make an order varying the management scheme contained in the final EDMO so as to make provision as to the payment of that compensation.
23 (1) This paragraph applies where an interim EDMO or final EDMO ceases to have effect for any reason.
(2) If, on the termination date for an interim EDMO, the total amount of rent or other payments collected or recovered as mentioned in paragraph 5(3) exceeds the total amount of—
(a) the authority’s relevant expenditure, and
(b) any amounts of compensation payable to third parties by virtue of orders under section 134(4) or 138(2) or decisions of the authority under section 136(4) or 138(3),
the authority must, as soon as possible after the termination date, pay the balance to the relevant proprietor.
(3) If, on the termination date for a final EDMO, any balance is payable to—
(a) a third party,
(b) a dispossessed landlord or tenant, or
(c) the relevant proprietor,
in accordance with the management scheme under paragraph 13, that amount must be paid to that person by the local housing authority in the manner provided by the scheme.
(4) Sub-paragraphs (5) and (6) apply where, on the termination date for an interim EDMO or final EDMO, the total amount of rent or other payments collected or recovered as mentioned in paragraph 5(3) is less than the total amount of the authority’s relevant expenditure together with any such amounts of compensation as are mentioned in sub-paragraph (2)(b) above.
(5) The authority may recover from the relevant proprietor—
(a) the amount of any relevant expenditure (not exceeding the deficit mentioned in sub-paragraph (4)) which he has agreed in writing to pay either as a condition of revocation of the order or otherwise, and
(b) where the relevant proprietor is a tenant under a lease in respect of the dwelling, the amount of any outstanding service charges payable under the lease.
(6) In the case of an interim EDMO ceasing to have effect, the authority may recover the deficit mentioned in sub-paragraph (4) from the relevant proprietor if, in their opinion, he unreasonably refused to consent to the creation of an interest or right as mentioned in paragraph 2(3)(c) while the order was in force.
(7) The provisions of any of sub-paragraphs (2) to (6) do not, however, apply in relation to the order if—
(a) the order is followed by a final EDMO, and
(b) the management scheme contained in that final EDMO provides for those sub-paragraphs not to apply in relation to the order (see paragraph 13(4)(c) and (d)).
(8) Any sum recoverable by the authority under sub-paragraph (5) or (6) is, until recovered, a charge on the dwelling.
(9) The charge takes effect on the termination date for the order as a legal charge which is a local land charge.
(10) For the purpose of enforcing the charge the authority have the same powers and remedies under the Law of Property Act 1925 (c. 20) and otherwise as if they were mortgagees by deed having powers of sale and lease, of accepting surrenders of leases and of appointing a receiver.
(11) The power of appointing a receiver is exercisable at any time after the end of the period of one month beginning with the date on which the charge takes effect.
(12) In this paragraph—
“dispossessed landlord or tenant” means a person who was a lessor, lessee, licensor or licensee under a lease or licence determined by an order under paragraph 22;
“relevant expenditure” has the same meaning as in paragraph 5 (in relation to an interim EDMO) or paragraph 13 (in relation to a final EDMO);
“service charge” has the meaning given by section 18 of the Landlord and Tenant Act 1985 (c. 70);
“the termination date” means the date on which the order ceases to have effect.
24 (1) This paragraph applies where—
(a) an interim EDMO or final EDMO ceases to have effect for any reason, and
(b) the order is not immediately followed by a further order under this Chapter.
(2) As from the termination date, an agreement which (in accordance with paragraph 3 or 11) has effect as a lease or licence granted by the authority under paragraph 2 or 10 has effect with the substitution of the relevant proprietor for the authority.
(3) If the relevant proprietor is a lessee, nothing in a superior lease imposes liability on him or any superior lessee in respect of anything done before the termination date in pursuance of the terms of an agreement to which sub-paragraph (2) applies.
(4) If the condition in sub-paragraph (5) is met, any other agreement entered into by the authority in the performance of their duties under section 135(1) to (3) or 137(1) to (3) in respect of the dwelling has effect, as from the termination date, with the substitution of the relevant proprietor for the authority.
(5) The condition is that the authority serve a notice on the other party or parties to the agreement stating that sub-paragraph (4) applies to the agreement.
(6) If the condition in sub-paragraph (7) is met—
(a) any rights or liabilities that were rights or liabilities of the authority immediately before the termination date by virtue of any provision of this Chapter, or under any agreement to which sub-paragraph (4) applies, are rights or liabilities of the relevant proprietor instead, and
(b) any proceedings instituted or continued by or against the authority by virtue of any such provision or agreement may be continued by or against the relevant proprietor instead,
as from the termination date.
(7) The condition is that the authority serve a notice on all interested parties stating that sub-paragraph (6) applies to the rights or liabilities or (as the case may be) the proceedings.
(8) If by virtue of this paragraph a relevant proprietor becomes subject to any liability to pay damages in respect of anything done (or omitted to be done) before the termination date by or on behalf of the authority, the authority are liable to reimburse to the relevant proprietor an amount equal to the amount of the damages paid by him.
(9) This paragraph applies to instruments as it applies to agreements.
(10) In this paragraph—
“agreement” includes arrangement;
“the termination date” means the date on which the order ceases to have effect.
25 (1) The right mentioned in sub-paragraph (2) is exercisable by the local housing authority, or any person authorised in writing by them, at any time when an interim EDMO or final EDMO is in force.
(2) That right is the right at all reasonable times to enter any part of the dwelling for the purpose of carrying out works, and is exercisable as against any person having an estate or interest in the dwelling.
(3) If, after receiving reasonable notice of the intended action, any occupier of the dwelling prevents any officer, employee, agent or contractor of the local housing authority from carrying out work in the dwelling, a magistrates' court may order him to permit to be done on the premises anything which the authority consider to be necessary.
(4) A person who fails to comply with an order of the court under sub-paragraph (3) commits an offence.
(5) A person who commits an offence under sub-paragraph (4) is liable on summary conviction to a fine not exceeding level 5 on the standard scale.
26 (1) A relevant person may appeal to a residential property tribunal against—
(a) a decision of the local housing authority to make a final EDMO,
(b) the terms of a final EDMO (including the terms of the management scheme contained in it), or
(c) the terms of an interim EDMO on the grounds that they do not provide for one or both of the matters mentioned in paragraph 5(5)(a) and (b) (which relate to payments of surplus rent etc.).
(2) Where an appeal is made under sub-paragraph (1)(c)—
(a) the appeal may be brought at any time while the order is in force (with the result that nothing in sub-paragraph (3) or paragraph 27 applies in relation to the appeal); and
(b) the powers of the residential property tribunal under paragraph 28 are limited to determining whether the order should be varied by the tribunal so as to include a term providing for the matter or matters in question, and (if so) what provision should be made by the term.
(3) If no appeal is brought under this paragraph in respect of a final EDMO within the time allowed by paragraph 27 for making such an appeal, the order is final and conclusive as to the matters which could have been raised on appeal.
27 (1) This paragraph applies in relation to an appeal under paragraph 26 in respect of a final EDMO.
(2) Any such appeal must be made within the period of 28 days beginning with the date specified in the notice under paragraph 7(5) of Schedule 6 (as applied by section 136(5)) as the date on which the order was made.
(3) A residential property tribunal may allow an appeal to be made to it after the end of the period mentioned in sub-paragraph (2) if it is satisfied that there is a good reason for the failure to appeal before the end of that period (and for any delay since then in applying for permission to appeal out of time).
28 (1) This paragraph applies to an appeal to a residential property tribunal under paragraph 26 in respect of an interim EDMO or a final EDMO.
(2) The appeal—
(a) is to be by way of a re-hearing, but
(b) may be determined having regard to matters of which the authority were unaware.
(3) The tribunal may—
(a) in the case of an interim EDMO, vary the order as mentioned in paragraph 26(2)(b), or
(b) in the case of a final EDMO, confirm or vary the order or revoke it as from the date of the tribunal’s order.
29 (1) This paragraph defines “the operative time” for the purposes of paragraph 9(2).
(2) If no appeal is made under paragraph 26 before the end of the period of 28 days mentioned in paragraph 27(2), “the operative time” is the end of that period.
(3) If an appeal is made under paragraph 26 before the end of that period, and a decision is given on the appeal which confirms the order, “the operative time” is as follows—
(a) if the period within which an appeal to the Lands Tribunal may be brought expires without such an appeal having been brought, “the operative time” is the end of that period;
(b) if an appeal to the Lands Tribunal is brought, “the operative time” is the time when a decision is given on the appeal which confirms the order.
(4) For the purposes of sub-paragraph (3)—
(a) the withdrawal of an appeal has the same effect as a decision which confirms the order, and
(b) references to a decision which confirms the order are to a decision which confirms it with or without variation.
30 A relevant person may appeal to a residential property tribunal against—
(a) a decision of a local housing authority to vary or revoke an interim EDMO or a final EDMO, or
(b) a refusal of a local housing authority to vary or revoke an interim EDMO or a final EDMO.
Housing Act 2004