Section 16 - Regional planning

39.     Where a regional planning body is to exercise certain of its functions (in particular the preparation of a draft revision, or review, of the regional spatial strategy and monitoring of the implementation of that strategy throughout the region, under section 4 of the Planning and Compulsory Purchase Act 2004) the regional planning body is required to seek the advice of any county council, metropolitan district council, district council for an area for which there is no county council and national park authority which is within the region. Section 16 adds the HCA to this list of bodies from whom the regional planning body must seek advice, where the HCA is the local planning authority for a designated area.

Other powers etc. in relation to land

Sections 17 and 18 - Power to enter and survey land; Section 17: supplementary

40.     The HCA may authorise a person to enter any land in connection with a proposal by the HCA to acquire that land or other land, or a claim for compensation in respect of acquisition of land. This power may be exercised for the purpose of surveying the land or estimating its value. The section sets out entry and notice requirements, and enables compensation to be recovered if the land is damaged as a result of the authorised person entering the land or the survey being undertaken. An offence is committed if a person intentionally obstructs another person in the exercise of that other person's powers under section 17. A person who commits such an offence is liable on summary conviction to a fine not exceeding level 2 on the standard scale, which is currently a fine not exceeding £500.

41.     The power to survey land includes power to search and bore in order to establish the nature of the subsoil or the presence of any minerals, provided that notice of intention to do so is included in the notice of intended entry required under section 17. In addition, if the proposed works are to be carried out on land held by a statutory undertaker and the statutory undertaker objects because the works would seriously interfere with the carrying out of their functions, the consent of the appropriate Minister is needed before the works can be carried out.

Chapter 3 - Financial provision

Powers to give financial assistance

Section 19 - Financial assistance

42.     This section provides a power for the HCA to give financial assistance to any person, in pursuit of its objects and subject to the consent of the Secretary of State. The financial assistance may be given in any form, and on such terms and conditions as the HCA considers appropriate, including provision for repayment, with or without interest.

43.     Subsection (5) extends the HCA's objects for the purposes of financial assistance functions which are transferred to it from the Housing Corporation, or which would supersede existing Housing Corporation functions, provided that when exercising those functions the HCA is doing so in a way corresponding to the way in which the Housing Corporation could have done so.

Borrowing powers of the HCA

Section 20 - Powers to borrow

44.     This section enables the HCA to borrow on a short-term basis, such as by overdraft, from any person. If the borrowing is not on a short-term basis the HCA may borrow only from the Secretary of State or the European Investment Bank. The HCA may only borrow in sterling.

Section 21 - Loans by the Secretary of State

45.     The Secretary of State may lend money to the HCA.

46.     The Secretary of State may impose such terms and conditions as she considers appropriate, including regarding repayment with or without interest.

Section 22 - Guarantees by the Secretary of State

47.     If the HCA takes out a loan with anyone other than the Secretary of State under section 20, the Secretary of State may guarantee the repayment of this loan, including any interest payable on it.

48.     The guarantee may be subject to such terms and conditions as the Secretary of State may consider appropriate. In respect of any sums paid out under the guarantee, the Secretary of State may direct the HCA to repay such amounts as the Secretary of State may direct towards repayment of those sums and towards interest, at such rates of interest as the Secretary of State may direct.

49.     The Secretary of State must lay a statement of the guarantee before Parliament immediately after giving the guarantee annually until all liability under the guarantee is discharged.

Section 23 - Financial limits

50.     The HCA's total borrowings, which include those of any subsidiary (other than sums borrowed from the HCA) must not exceed £2,300 million unless the Secretary of State provides for an increase to this limit by order, up to a maximum ceiling of £3,000 million. These limits are the same as for the Housing Corporation.

Other

Section 24 - Power to charge for certain activities

51.     The HCA can charge a reasonable amount for information services, advice, education and training, and support services. The intention is to limit the amount that may be charged so that it does not exceed the costs incurred in providing the services.

Section 25 - Directions as to surplus funds

52.     If the Secretary of State considers that the HCA or any of its subsidiaries has surplus capital, either on capital or revenue account, the Secretary of State may (following consultation with the HCA) direct it to pay such sums as specified (not exceeding the amount of surplus) to the Secretary of State.

53.     The Secretary of State may decide to treat the whole or part of any payment as part repayment of the principal of any loans borrowed from the Secretary of State under Section 21.

Section 26 - Duty to act as agent in respect of regeneration and development

54.     The HCA may be appointed to act as agent for the Secretary of State for the purpose of giving financial assistance to regeneration and development activities, under sections 126 to 128 of the Housing Grants, Construction and Regeneration Act 1996. If so appointed, the HCA will be bound to act in accordance with the terms and conditions of the appointment, as set out by the Secretary of State.

Section 27 - Duty to act as agent in respect of derelict land etc.

55.     The HCA may be appointed to act as the Secretary of State's agent in connection with specified derelict land functions. This may include providing grant for reclaiming, improving or bringing such land back into use. The Secretary of State may specify the terms and conditions of this appointment and the HCA must act in accordance with those terms and conditions.

Chapter 4 - Other functions of the HCA

General

Section 28 - Business

56.     In order for the HCA to operate effectively, it may be necessary for it to carry on a business in the open market. This section enables the HCA to do so.

Section 29 - Powers to form companies etc.

57.     This section allows the HCA, with the consent of the Secretary of State, to establish or acquire an interest in a company.

Section 30 - Community services

58.     This section allows the HCA to act in a supportive capacity in order to provide or facilitate the provision of such services for communities as it considers appropriate. These may include services such as encouraging, or developing new businesses; providing employment; providing business or employment services; providing safe and attractive environments; or contributing to the prevention or reduction of anti-social behaviour or crime, or the fear of anti-social behaviour or crime.

Social housing

Section 31 - Duties in relation to social housing

59.     This section requires the HCA when -

• acquiring, constructing or converting any housing or land for use as low cost rental accommodation, (subsections (1) and (2));

• disposing of housing or land on the condition that low cost rental accommodation is provided (subsections (3) and (4));

• providing infrastructure on condition that low cost rental accommodation is provided (subsections (5) and (6)); or

• giving financial assistance on condition that low cost rental accommodation is provided (subsections (7) and (8)),

to ensure that when the accommodation is made available for rent the landlord is a "relevant provider of social housing". A "relevant provider" is a registered provider of social housing (as defined by section 80(2)(a)), an English local housing authority (or a person controlled by such an authority), or a county council in England. Low cost rental accommodation is accommodation which is made available for rent, the rent is below the market rate and the accommodation is made available in accordance with rules designed to ensure that the accommodation is made available to people whose needs are not adequately served by the commercial housing market. If the HCA is proposing to give financial assistance on condition that the recipient provides low cost home ownership accommodation (as defined by section 70) the HCA must consult the Regulator of Social Housing about the proposals.

Section 32 - Recovery etc. of social housing assistance

60.     This section gives the HCA powers in relation to a person who has received financial assistance for the provision of social housing. The HCA may-

• reduce, suspend or cancel grant payments (or other financial assistance); or

• direct the recipient of financial assistance by way of grant to:

a)      apply or appropriate for such purposes of the recipient as the HCA may specify; or

b)      pay to the HCA,

• such amount as the HCA may specify.

61.     The aggregate of the amounts specified in directions given in respect of that grant cannot be greater than the amount of grant received by that person, although interest may be added to the original amount (see section 33).

62.     The powers to recover financial assistance may only be exercised in accordance with principles determined by the HCA.

63.     These powers enable the HCA to operate a system similar to the Housing Corporation's "Recycled Capital Grant Fund" operated under section 27 of the Housing Act 1996. This enables the Housing Corporation to require, as a condition of grant that, for example, when a property grant-funded by the Corporation is disposed of, a sum specified by the Corporation (which could be the amount of original grant, or a proportion of the property value) is either repaid to the Corporation, or is applied by the grant recipient to a purpose specified by the Corporation, such as the provision of new social housing.

64.     Subsection (11) requires the HCA to notify the Regulator of Social Housing 14 days before exercising any power under section 32(2), (3) or (4) to reduce, suspend or cancel grant, or require repayment or reapplication of specified sums, in relation to a registered provider of social housing.

65.     The HCA must determine in advance of (or at the time of) providing the financial assistance the events in which (and the principles according to which) it will exercise its powers to recover the assistance.

Section 33: interest and successors in title

66.     Subsections (1) to (5) provide that the HCA may add interest to sums to be repaid under section 32 and enter into agreements with recipients of grants which include arrangements for sharing equity uplift between the HCA and the recipient. It also has power to suspend or reduce interest. This section replicates the provisions in sections 27(4) and (5) of the Housing Act 1996.

67.     Subsections (6) and (7) provide that a person acquiring social housing from the recipient of social housing assistance will also be subject to the HCA's powers of recovery under section 32. This section replicates section 27(6) of the Housing Act 1996.

68.     This section also requires that any determination on the principles of adding interest or entering into an equity sharing agreement have to be made at or before the award of grant funding.

Section 34 - Determinations under sections 32 and 33

69.     This section sets out the process for determinations under sections 32 and 33. A determination could define the "relevant events" which would trigger these requirements (e.g. the disposal of a grant-funded property), or it could specify the purposes to which sums may be applied (e.g. the provision of similar properties, the refurbishment of others, etc.).

70.     Subsection (1) prohibits the HCA from making a general determination without the consent of the Secretary of State. And subsection (2) requires the HCA, before making such a determination, to consult the Regulator of Social Housing, and other appropriate persons.

71.     The HCA may vary or revoke a determination but, in varying or revoking a determination, the HCA cannot override the provision that events and principles according to which it exercises its powers to recover grants must be predetermined.

Section 35 - Duty to give financial assistance in respect of certain disposals

72.     Section 35 broadly replicates the effect of the duties placed on the Housing Corporation under sections 20 and 21 of the Housing Act 1996.

73.     It places a statutory duty on the HCA to provide financial assistance by way of grant to a registered provider of social housing or a registered social landlord in respect of discount provided to a tenant exercising their right to acquire under the right to acquire provisions in Part 2 of the Act (or under section 16 of the Housing Act 1996, where a Welsh social landlord is disposing of a dwelling in England). The requirement also applies if a tenant entitled to the right to acquire chooses to purchase an alternative property in England offered by their landlord.

74.     The grant given to a person in any one year is limited to the total value of the discounts given by the person in that year. The HCA is required to specify the procedure to be followed in relation to applications for the grant; the method for calculating and any other limitations on the amount of grant; the manner and timing of payment and any other terms and conditions under which the grant will be given.

75.     The purpose of this duty is to ensure that providers of social housing receive the market value for the properties they are required to sell to tenants at a discount. This duty ensures that they receive full market value for the property while the disposal proceeds fund system ensures that proceeds are spent on replacement social housing.

Section 36 - Information in relation to social housing

76.     This section enables the Secretary of State to make an order requiring the HCA to produce information about its provision of accommodation for the purposes of social housing and the consequences of that accommodation being social housing. For example, the intention is that where funding is provided by the HCA for the purposes of providing housing, the HCA would be required to notify the Regulator of Social Housing about which housing will be low cost rental accommodation and thus should be transferred to a registered provider of social housing, if the recipient of the funding is not such a provider.

Section 37 - Duty to co-operate with Regulator of Social Housing

77.     Under this section the HCA is required to co-operate and consult with the Regulator of Social Housing on matters of general interest. For example, the HCA should take account of the regulator's views when it proposes to invest in the provision of social housing. The Regulator of Social Housing is under a corresponding duty to co-operate with the HCA by virtue of section 105.

Information, education and guidance etc.

Sections 38 and 39 - Information services; Advice, education and training

78.     These sections allow the HCA to publish, provide, disseminate or facilitate ideas or information. It can also undertake research and provide, or facilitate the provision of, education and training services. This for example might include providing accreditation or sponsorship programmes, running conferences or developing training modules.

79.     Section 24 enables the HCA to charge a reasonable amount for such services. The intention is that the amount charged will not exceed the cost of providing the service.

Section 40 - Guidance

80.     In addition to providing information and training, the HCA can also provide guidance (or vary existing guidance) about matters relating to its work. However, before doing so, the HCA must consult appropriate persons and then bring the published guidance to the notice of those affected by it.

81.     The HCA can revoke its guidance, but, prior to revocation, it must consult those affected by the guidance and, upon revocation, inform those affected by it.

Functions in relation to companies and other persons

Section 41 - Control of subsidiaries

82.     A subsidiary of the HCA will not have the power to engage in an activity that the HCA itself would not be required or permitted to carry out unless the subsidiary has the consent of the Secretary of State.

83.     The HCA must take steps to ensure that its subsidiaries do not borrow money from anyone other than the HCA, nor issue shares or stocks to anyone other than the HCA, without the consent of the Secretary of State.

Sections 42 and 43 - Agency arrangements with urban development corporations; Acting with, or for other persons: general

84.     With the consent of the Secretary of State, the HCA can appoint an urban development corporation ("UDC") to carry out functions on its behalf (other than its functions in connection with Chapter 3 of Part 1 (financial provision)). The UDC must act within the terms specified in the appointment. The UDC may arrange for any of its property or staff to be made available to the HCA, if requested, and if the purpose of the request is to assist the HCA to exercise its functions.

85.     The HCA can form partnerships or enter into working arrangements in conjunction with others, or enter into arrangements to act on behalf others.

Section 44 - Local government involvement

86.     Section 44 requires the HCA to consult with such representatives of local government as it considers appropriate about how it pursues its objects and to publish a statement about how it proposes to do that (having consulted with such persons as it considers appropriate).

Other

Section 45 - Support services

87.     The HCA may provide or facilitate the provision of services in support of a project. In particular, this could include seconding staff, providing consultants, or providing technical and financial resources.

Chapter 5 - Supplementary

Certain supervisory powers of the Secretary of State

Section 46 - Guidance by the Secretary of State

88.     This section gives the Secretary of State power, following consultation with appropriate persons, to give guidance to the HCA about how to carry out its functions. The guidance must be published as soon as is reasonably practical after it has been given. If the guidance is to be revoked, the same consultation and notification process must be followed.

89.     The HCA is required to have regard to any guidance issued to it by the Secretary of State which is in force.

Section 47 - Directions by the Secretary of State

90.     This section gives the Secretary of State power to give general or specific directions to the HCA as to how it should carry out its functions. It requires that those directions must be published as soon as practicable. If the Secretary of State revokes those directions, that fact must also be published. Publication of the making or revocation of directions does not apply to directions given in connection with the HCA's own, or its committees', procedure.

91.     The HCA is required to comply with the Secretary of State's directions.

Section 48 - Consents by the Secretary of State

92.     Where the Secretary of State may give consent, such as under section 10 for the disposal of land for less than best consideration, the Secretary of State may give consent with or without conditions, or, depending upon the circumstances, in either general or specific terms.

93.     A consent may be varied or revoked, except where something has already been done on the authority of that consent. A variation or revocation only takes effect once the Secretary of State has given notice of it to the HCA or anyone else to whom the consent was given.

Abolition of existing bodies

Sections 49 and 50 - Abolition of the Urban Regeneration Agency; Abolition of the Commission for the New Towns

94.     These sections enable the Secretary of State to make an order dissolving the Urban Regeneration Agency and the Commission for the New Towns on a specified date.

95.     Section 50 also introduces Schedule 5.

Section 51 - Property etc. transfers to the HCA and the Welsh Ministers

96.     This section makes provision for the transfer of property, rights or liabilities in connection with the dissolution of the Urban Regeneration Agency and the Commission for the New Towns, and also for the transfer of property, rights or liabilities of a regional development agency and a Minister of the Crown.

97.     Section 51, together with section 65, introduces Schedules 6 and 7.

Section 52 - Role of the HCA in relation to former CNT functions

98.     This section sets out the role of the HCA in relation to functions which were formerly undertaken by the Commission for the New Towns. In relation to any property, rights or liabilities which are transferred to it from the Commission for the New Towns (on its abolition) and any property, rights or liabilities of a new town development corporation or an urban development corporation which are transferred to it on the dissolution of those corporations, the HCA will have to exercise its powers for the purposes of its objects. However, the HCA is not compelled to do so if it does not consider it appropriate to exercise its powers in that way, having regard to the purposes for which those property, rights or liabilities were held by the original bodies. The HCA must then exercise its powers as it considers appropriate, having regard to its objects and to the purposes for which the property, rights or liabilities were held by the body concerned.

Section 53 - Interim arrangements

99.     This section gives the Secretary of State the power to require the Urban Regeneration Agency or the Commission for the New Towns to provide staff, premises, facilities or other assistance on a temporary basis to the HCA or Welsh Ministers.

100.     This power could be used during any period of transition between the establishment of the HCA and the dissolution of the Urban Regeneration Agency and the Commission for the New Towns.

101.     This section also reduces the minimum number of members that the Urban Regeneration Agency may have. This is to facilitate the transition of activities from the Urban Regeneration Agency to the HCA.

Other

Section 54 - Validity of transactions

102.     This section is intended to cover the situation where persons enter into agreements with the HCA or one of its subsidiaries and it subsequently transpires that the HCA or one of its subsidiaries acted unlawfully in carrying out its powers, or in contravention of directions given by the Secretary of State. The agreements are not invalidated by reason of such circumstances.

Section 55 - Notices

103.     There are various references to serving notices throughout Part 1. A notice is served if it is delivered to the person concerned, left at the person's proper address or sent by post to that person at that address. If the notice is to be served on a business, it can be served on an officer of the body or if the business is a partnership on a partner of the business.

Sections 56 to 58 - Consequential amendments: Part 1; Interpretation: Part 1; Index of defined expressions: Part 1

104.     Section 56 introduces Schedule 8 which makes various consequential amendments.

105.     Sections 57 and 58 set out the definitions of key terms used throughout Part 1.

PART 2 - REGULATION OF SOCIAL HOUSING

Chapter 1 - Introduction

Preliminary

Section 59 - Purpose

106.     Section 59 specifies the purpose of Part 2 of the Act, which is to regulate the provision of social housing by English bodies. "Social housing" is defined in sections 68 to 77. "English body" is defined in section 79.

Section 60 - Structural overview

107.     Subsection (1) provides that the system set out in Part 2 broadly replicates the effect of the previous system for regulation of registered social landlords (RSLs) in England under Part 1 of the Housing Act 1996. RSLs are non-profit distributing providers of social housing, which in England are registered with the Housing Corporation.

108.     Subsection (2) specifies that Part 1 of the 1996 Act will continue to operate in respect of Welsh RSLs as set out in section 61.

109.     Subsection (3) specifies that certain provisions of the Housing Act 1996 are applied in England (these are specified in section 178) or are preserved, although they apply only in England (see section 124).

110.     Subsection (4) sets out the contents and organisation of Part 2 of the Act which is as follows:

• Chapter 1: Introduction, including definitions of social housing, the regulator, English and Welsh bodies and registered providers of social housing

• Chapter 2: Establishment of the Office for Tenants and Social Landlords as the regulator of social housing, including its constitution, objectives and its general powers

• Chapter 3: Establishment of a register of providers of social housing, including provisions as to eligibility of providers, their profit or non profit designation, the procedure for registration and removal from the register, and the payment of registration fees

• Chapter 4: Sets out a range of provisions which govern the constitutional arrangements of registered providers, including requirements for accounting, the operation of a moratorium where steps are taken in respect of the insolvency of registered providers, and controls on constitutional changes which result in their restructuring or dissolution

• Chapter 5: Contains a number of provisions in relation to the disposal of property by registered providers, and the regulator's powers in relation to such disposals

• Chapter 6: Sets out the regulator's regulatory powers including the scope of its powers to set standards, the Secretary of State's power to issue directions to the regulator in respect of standards and the regulator's powers for survey, inspection, specifying performance information and carrying out inquiries

• Chapter 7: Gives the regulator various powers of enforcement, including the power to issue enforcement notices, require the payment of fines or compensation and make provision in relation to the management and constitution of registered providers, make restriction on dealings and give powers to suspend and remove officers.

• Chapter 8: Sets out provisions to assist the interpretation of Part 2 and also provides for repeals and consequential amendments