Part 1 The Homes and Communities Agency

Chapter 1 General

1 Establishment and constitution

(1) There shall be a body corporate known as the Homes and Communities Agency (“the HCA”).

(2) Schedule 1 (which makes further provision about the HCA) has effect.

2 Objects

(1) The objects of the HCA are—

(a) to improve the supply and quality of housing in England,

(b) to secure the regeneration or development of land or infrastructure in England,

(c) to support in other ways the creation, regeneration or development of communities in England or their continued well-being, and

(d) to contribute to the achievement of sustainable development and good design in England,

with a view to meeting the needs of people living in England.

(2) In subsection (1)—

• “good design” includes design which has due regard to the needs of elderly persons and disabled persons,

• “needs” includes future needs,

and the reference to improving the supply of housing includes a reference to improving the supply of particular kinds of housing.

(3) In this Part—

• “building” means a building or other structure (including a house-boat or caravan),

• “caravan” has the meaning given by section 29(1) of the Caravan Sites and Control of Development Act 1960 (c. 2),

• “housing” means a building, or part of a building, occupied or intended to be occupied as a dwelling or as more than one dwelling; and includes a hostel which provides temporary residential accommodation,

• “infrastructure” includes—

  (a)

  water, electricity, gas, telecommunications, sewerage or other services,

  (b)

  roads or other transport facilities,

  (c)

  retail or other business facilities,

  (d)

  health, educational, employment or training facilities,

  (e)

  social, religious or recreational facilities,

  (f)

  cremation or burial facilities, and

  (g)

  community facilities not falling within paragraphs (a) to (f),

• “land” includes housing or other buildings (and see also the definition in Schedule 1 to the Interpretation Act 1978 (c. 30)),

and references to housing include (where the context permits) any yard, garden, outhouses and appurtenances belonging to, or usually enjoyed with, the building or part of building concerned.

(4) See also sections 19(5) (financial assistance), 44 (local government involvement) and 52 (role of the HCA in relation to certain former functions of the Commission for the New Towns).

3 Principal powers

The HCA may do anything it considers appropriate for the purposes of its objects or for purposes incidental to those purposes.

4 Powers: general

(1) This Part contains various specific powers of the HCA.

(2) The specific powers of the HCA (whether contained in this Part or elsewhere) are to be exercised for the purposes of its objects or for purposes incidental to those purposes.

(3) Each power may be exercised separately or together with, or as part of, another power.

(4) Each power does not limit the scope of another power.

(5) Each power does not limit the scope of the powers conferred by section 3.

(6) But—

(a) subsections (2) and (3) do not apply to the HCA in its capacity as a local planning authority by virtue of sections 13 and 14 or in its exercise of other functions by virtue of those sections, and

(b) the powers conferred by section 3 must not be used to override a restriction imposed on the exercise of a specific power.

Chapter 2 Land and infrastructure

General

5 Powers to provide housing or other land

(1) The HCA may provide housing or other land.

(2) The HCA may facilitate the provision of housing or other land.

(3) In this section “provide” includes provide by way of acquisition, construction, conversion, improvement or repair (and “provision” is to be read in the same way).

6 Powers for regeneration, development or effective use of land

(1) The HCA may regenerate or develop land.

(2) The HCA may bring about the more effective use of land.

(3) The HCA may facilitate—

(a) the regeneration or development of land, or

(b) the more effective use of land.

7 Powers in relation to infrastructure

(1) The HCA may provide infrastructure.

(2) The HCA may facilitate the provision of infrastructure.

(3) In this section “provide” includes provide by way of acquisition, construction, conversion, improvement or repair (and “provision” is to be read in the same way).

Powers to deal with land etc.

8 Powers to deal with land etc.

The HCA may carry out, or facilitate the carrying out of, any of the following activities in relation to land—

(a) acquiring, holding, improving, managing, reclaiming, repairing or disposing of housing,

(b) acquiring, holding, improving, managing, reclaiming, repairing or disposing of other land, plant, machinery, equipment or other property, and

(c) carrying out building and other operations (including converting or demolishing buildings).

9 Acquisition of land

(1) The HCA may acquire land by agreement.

(2) The HCA may acquire land compulsorily if the Secretary of State authorises it to do so.

(3) The power of acquiring land compulsorily under subsection (2) includes power to acquire new rights over land.

(4) Subsection (5) applies where—

(a) land or new rights over land are being acquired compulsorily under subsection (2), and

(b) the land which is being acquired, or over which new rights are being acquired, forms part of a common, open space or allotment.

(5) The power under subsection (2) to acquire land compulsorily includes the power to acquire land compulsorily for giving in exchange for the land or (as the case may be) new rights mentioned in subsection (4)(a).

(6) Schedule 2 (which makes further provision in relation to the acquisition of land by the HCA) has effect.

(7) In this Part—

• “allotment” means a fuel or field garden allotment,

• “common” has the meaning given by section 19(4) of the Acquisition of Land Act 1981 (c. 67),

• “open space” means any land which is—

  (a)

  laid out as a public garden,

  (b)

  used for the purposes of public recreation, or

  (c)

  a disused burial ground.

10 Restrictions on disposal of land

(1) The HCA may not dispose of land for less than the best consideration which can reasonably be obtained unless the Secretary of State consents.

(2) Subsection (1) does not apply to a disposal by way of a short tenancy if the disposal consists of—

(a) the grant of a term of not more than 7 years, or

(b) the assignment of a term which, at the date of assignment, has not more than 7 years to run.

(3) The HCA may not dispose of land which has been compulsorily acquired by it under this Part unless the Secretary of State consents.

(4) Subject as above, the HCA may dispose of land held by it in any way it considers appropriate.

Powers in relation to acquired land

11 Main powers in relation to acquired land

Schedule 3 (which makes provision about powers in relation to land of the HCA) has effect.

12 Powers in relation to, and for, statutory undertakers

Schedule 4 (which provides for powers in relation to, and for, statutory undertakers) has effect.

Planning

13 Power of Secretary of State to make designation orders

(1) The Secretary of State may by order designate an area in England if the Secretary of State considers that—

(a) the area is suitable for development, and

(b) it is appropriate for the HCA to be the local planning authority for the whole or any part of the area—

(i) for particular permitted purposes, and

(ii) in relation to particular kinds of development.

(2) In deciding whether it is appropriate for the HCA to be the local planning authority as mentioned in subsection (1)(b), the Secretary of State must, in particular, be satisfied that making the designation order is likely to improve the effectiveness with which the functions of the local planning authority for the area or part are discharged.

(3) The Secretary of State must, before making a designation order—

(a) publish—

(i) a draft of the order, and

(ii) the Secretary of State’s reasons for making the order, and

(b) consult the persons mentioned in subsection (4).

(4) The persons are—

(a) every local authority any part of whose area is intended to be included in the proposed designated area,

(b) any person, other than a local authority, who is the local planning authority for the proposed designated area or any part of it,

(c) such persons which appear to the Secretary of State to represent the interests of local authorities as the Secretary of State considers appropriate, and

(d) persons who reside or carry on business in the proposed designated area.

(5) In this Part—

• “designated area” means an area designated by a designation order,

• “designation order” means an order under this section,

• “local planning authority”, in relation to a designation order or proposed designation order, means—

  (a)

  so far as the order relates to permitted purposes under Part 2 of the Planning and Compulsory Purchase Act 2004 (c. 5), the local planning authority within the meaning of that Part of that Act, and

  (b)

  in any other case, the local planning authority within the meaning of Part 1 of the Town and Country Planning Act 1990 (c. 8),

• “permitted purposes” means any purposes of—

  (a)

  the Town and Country Planning Act 1990 (other than section 137A, Parts 9 and 13, and sections 325A, 329A and 330A, of that Act),

  (b)

  the Planning (Listed Buildings and Conservation Areas) Act 1990 (c. 9) (other than section 32A, Chapter 5 of Part 1, and sections 82A to 82F and 88C, of that Act), and

  (c)

  Part 2 of the Planning and Compulsory Purchase Act 2004,

and references to a designated area, in the case of an area whose boundaries have been amended by an order made under this section by virtue of section 14 of the Interpretation Act 1978 (c. 30), are to be read as references to the designated area as so amended.

(6) In this section “local authority” means a county council in England, a district council, a London borough council or the Common Council of the City of London.

14 Contents of designation orders

(1) A designation order may contain provisions of the following kind.

(2) The order may provide for the HCA to be the local planning authority for the whole or any part of the designated area—

(a) for specified permitted purposes, and

(b) in relation to specified kinds of development.

(3) The order may provide that where the HCA is the local planning authority for the whole or any part of the designated area it is to have—

(a) in relation to the whole or any part of the designated area, and

(b) subject to any specified modifications,

specified relevant functions conferred by or under specified planning-related provisions.

(4) An order which makes provision of the kind mentioned in subsection (2) may make provision about the application of enactments relating to local planning authorities to the HCA in its capacity as the local planning authority by virtue of the order.

(5) An order which makes provision of the kind mentioned in subsection (3)—

(a) may provide for the HCA to have the functions concerned instead of, or concurrently with, other persons who have them,

(b) may make provision about the application to the HCA of enactments relating to the functions concerned.

(6) Provision made by virtue of subsection (4) or (5), or section 320(1)(d) in its application to an order of a kind falling within this section, may, in particular, provide that any enactment—

(a) is to apply to the HCA without modification,

(b) is to apply to it subject to specified modifications.

(7) In this section—

• “planning-related provisions” means—

  (a)

  Chapter 1 of Part 6 (other than section 137A), and sections 188 and 330, of the Town and Country Planning Act 1990 (c. 8),

  (b)

  sections 32 and 33 to 37, 54 and 55 of the Planning (Listed Buildings and Conservation Areas) Act 1990 (c. 9), and

  (c)

  the Planning (Hazardous Substances) Act 1990 (c. 10) (other than sections 30A to 31A and 36C of that Act),

• “relevant functions” means functions of—

  (a)

  a district council, a London borough council, the Common Council of the City of London, or any other body which is a local authority within the meaning of the Town and Country Planning Act 1990,

  (b)

  a district planning authority (within the meaning of that Act), or

  (c)

  a hazardous substances authority (within the meaning of the Planning (Hazardous Substances) Act 1990),

• “specified”, in relation to a designation order, means specified or described in the order.

15 HCA as local planning authority: local involvement

(1) Subsections (2) to (6) apply where a designation order provides for the HCA to be the local planning authority for the whole or any part of the designated area.

(2) The HCA must prepare and publish a statement of local involvement.

(3) The statement of local involvement is a statement of the HCA’s policy as to the extent to which it intends to involve persons mentioned in subsection (4) in relation to the exercise by the HCA of functions conferred on it by virtue of the designation order.

(4) The persons are—

(a) every local authority for the designated area or any part of the area in relation to which a function is to be exercised, and

(b) persons appearing to the HCA to have special knowledge or experience of matters relevant to functions to be exercised in relation to the area or part.

(5) The HCA must—

(a) keep the statement under review, and

(b) publish any revision of it.

(6) In deciding its policy about the extent of involvement of persons mentioned in subsection (4), the HCA must, in particular, have regard to—

(a) the benefits that it might receive from their knowledge and experience, and

(b) the nature of the functions concerned.

(7) Subsection (8) applies where—

(a) the HCA establishes a committee for the purpose of exercising functions conferred on the HCA by virtue of a designation order,

(b) such a committee establishes a sub-committee for such a purpose, or

(c) a new or replacement member is to be appointed to such a committee or sub-committee.

(8) The HCA must—

(a) inform every local authority for the designated area or any part of the area in relation to which the functions are to be, or are being, exercised of—

(i) the establishment of the committee or sub-committee concerned, or

(ii) (as the case may be) the proposed appointment, and

(b) invite the authority to suggest one or more candidates for membership of the committee or (as the case may be) sub-committee.

(9) In this section “local authority” has the same meaning as in section 13.

16 Regional planning

(1) Section 4 of the Planning and Compulsory Purchase Act 2004 (c. 5) (assistance for regional planning bodies from certain local authorities) is amended as follows.

(2) For subsection (4) substitute—

“(4) These are the authorities which fall within this subsection—

(a) each of the following if their area or any part of their area is in the RPB’s region—

(i) a county council;

(ii) a metropolitan district council;

(iii) a district council for an area for which there is no county council;

(iv) a National Park authority; and

(b) the Homes and Communities Agency if it is the local planning authority for an area or part of an area in the RPB’s region.

(4A) For the purposes of subsection (4), the Homes and Communities Agency is the local planning authority for an area or part of an area in the RPB’s region if it is the local planning authority for that area or part, or for an area which includes that area or part, by virtue of an order of the kind mentioned in section 14(2) of the Housing and Regeneration Act 2008 (designation orders).

(4B) In subsections (4) and (4A) “local planning authority” has the same meaning as in Part 1 of the Housing and Regeneration Act 2008 (see section 13(5) of that Act).”

(3) In subsection (8) after “(5)” insert “other than arrangements with the Homes and Communities Agency”.

Other powers etc. in relation to land

17 Power to enter and survey land

(1) Any person authorised by the HCA may, at any reasonable time and subject as follows, enter any land for the purpose of surveying it, or estimating its value, in connection with—

(a) any proposal for the HCA to acquire that land or any other land, or

(b) any claim for compensation in respect of any such acquisition.

(2) A person authorised under subsection (1) to enter any land—

(a) must, if required, produce evidence of the authority before entering the land, and

(b) must not demand admission as of right to the land unless the HCA has served notice of the intended entry on every owner or occupier of the land not less than 28 days before the making of the demand.

(3) A notice under subsection (2)(b) must—

(a) state the purpose for which entry is required, and

(b) inform the person to whom it is given of the person’s rights under this section and, if applicable, section 18.

(4) A person interested in any land may recover compensation from the HCA in respect of any damage done to the land—

(a) in the exercise of a right of entry under this section, or

(b) in making a survey under this section.

(5) Section 118 of the Town and Country Planning Act 1990 (c. 8) (determination of claims for compensation) applies in relation to compensation under subsection (4) as it applies in relation to compensation under Part 4 of that Act.

(6) A person (“A”) commits an offence if A intentionally obstructs another person (“B”) in the exercise of B’s powers under subsection (1) above.

(7) A person who commits an offence under subsection (6) is liable on summary conviction to a fine not exceeding level 2 on the standard scale.

(8) In subsection (2)(b) “owner” has the same meaning as in the Acquisition of Land Act 1981 (c. 67).

(9) The references in subsections (4) and (6) to this section or subsection (1) include references to those provisions as extended by section 18.

18 Section 17: supplementary

(1) The power to survey land conferred by section 17(1) includes power to search and bore for the purpose of ascertaining—

(a) the nature of the subsoil, or

(b) the presence of minerals in it.

(2) But this is subject to subsections (3) to (5).

(3) No person may carry out any works authorised by virtue of subsection (1) unless notice of the person’s intention to do so was included in the notice required by section 17(2)(b).

(4) The authority of the appropriate Minister is required for the carrying out of any works authorised by virtue of subsection (1) if—

(a) the land concerned is held by statutory undertakers, and

(b) they object to the proposed works on the ground that the execution of the works would be seriously detrimental to carrying on their undertaking.

(5) The references in subsection (4) to the appropriate Minister, statutory undertakers and their undertaking have the same meanings as they have in section 325(9) of the Town and Country Planning Act 1990 (c. 8) (supplementary provisions as to rights of entry).

Chapter 3 Financial provision

Powers to give financial assistance

19 Financial assistance

(1) The HCA may, with the consent of the Secretary of State, give financial assistance to any person.

(2) Financial assistance under this section may be given in any form.

(3) Financial assistance under this section may, in particular, be given by way of—

(a) grants,

(b) loans,

(c) guarantee or indemnity,

(d) investment, or

(e) incurring expenditure for the benefit of the person assisted.

(4) Financial assistance under this section may be given on such terms and conditions as the HCA considers appropriate (including provision for repayment, with or without interest).

(5) The objects of the HCA are not to be read as preventing the HCA from exercising functions in relation to financial assistance (whether under this section or otherwise) which—

(a) are transferred to the HCA from the Housing Corporation by virtue of this Act, or

(b) would supersede functions of the Housing Corporation,

in ways corresponding to those in which the Housing Corporation could have exercised its functions.

(6) See also sections 31 to 35 (further provision about certain types of financial assistance: social housing).

Borrowing powers of the HCA

20 Powers to borrow

(1) The HCA may, for the purpose of what it considers to be the short-term management of its finances, borrow from any person by way of overdraft or otherwise.

(2) Subject to this, the HCA may only borrow from the Secretary of State or the European Investment Bank.

(3) The HCA may not borrow in currencies other than sterling.

21 Loans by the Secretary of State

(1) The Secretary of State may lend to the HCA any sums it has power to borrow from the Secretary of State under section 20.

(2) Loans under subsection (1) may be made on such terms and conditions as the Secretary of State considers appropriate (including provision for repayment with or without interest).

22 Guarantees by the Secretary of State

(1) The Secretary of State may guarantee—

(a) the repayment of the principal of any sums which the HCA borrows from a person other than the Secretary of State, and

(b) the payment of interest on such sums.

(2) Such a guarantee is to be in such manner, and on such terms and conditions, as the Secretary of State considers appropriate.

(3) The Secretary of State must lay a statement of any such guarantee before Parliament immediately after giving the guarantee.

(4) The Secretary of State must lay before Parliament a statement relating to any sum issued for fulfilling such a guarantee.

(5) A statement under subsection (4) must be laid as soon as possible after the end of each financial year—

(a) beginning with that in which the sum is issued, and

(b) ending with that in which all liability in respect of the principal of the sum guaranteed, and of interest on it, is finally discharged.

(6) In respect of any sums issued in fulfilment of a guarantee given under this section, the HCA must make payments to the Secretary of State—

(a) of such amounts as the Secretary of State may direct in or towards repayment of those sums, and

(b) of interest on what is outstanding in respect of those sums, at such rates as the Secretary of State may direct.

(7) Payments under subsection (6) must be made at such times, and in such manner, as the Secretary of State may direct.

23 Financial limits

(1) The current borrowings of the HCA must not exceed £2,300 million.

(2) The Secretary of State may by order amend subsection (1) so as to specify a greater amount than that for the time being specified there.

(3) But an order under subsection (2) may not specify an amount of more than £3,000 million.

(4) In this section “current borrowings of the HCA” means—

(a) the aggregate amount at any time of—

(i) sums borrowed by the HCA under section 20, and

(ii) sums borrowed by subsidiaries of the HCA (other than from the HCA), less

(b) repayments made, or treated as made, in respect of those sums.

(5) In this Part “subsidiary” has the meaning given by section 1159 of the Companies Act 2006 (c. 46).

Other

24 Power to charge for certain activities

(1) The HCA may impose charges for, or in connection with, anything done by it by virtue of section 38, 39 or 45.

(2) Any such charges must be of such amounts as the HCA considers to be reasonable.

25 Directions as to surplus funds

(1) Subsection (2) applies if the Secretary of State considers that the HCA or any subsidiary of the HCA has a surplus, whether on capital or on revenue account, after making allowance by way of transfer to reserve or otherwise for its future requirements.

(2) The Secretary of State may give a direction to the HCA to pay to the Secretary of State such sum not exceeding the amount of the surplus as may be specified in the direction.

(3) The Secretary of State must consult the HCA before coming to a decision of the kind mentioned in subsection (1) or giving a direction as mentioned in subsection (2).

(4) The Secretary of State may decide to treat the whole or part of any payment under subsection (2) as made—

(a) by way of repayment of such part of the principal of loans under section 21(1), and

(b) in respect of the repayments due at such times,

as the Secretary of State may decide.

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

(1) The Secretary of State may appoint the HCA to act as the agent of the Secretary of State in connection with such financial assistance functions as the Secretary of State may specify.

(2) In subsection (1) “financial assistance functions” means, so far as exercisable in relation to England, functions under sections 126 to 128 of the Housing Grants, Construction and Regeneration Act 1996 (c. 53) (financial assistance for regeneration and development).

(3) An appointment under this section is to be on such terms as the Secretary of State may specify.

(4) The HCA must, if appointed, act as agent in accordance with the terms of its appointment.

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

(1) The Secretary of State may appoint the HCA to act as the agent of the Secretary of State in connection with such derelict land functions as the Secretary of State may specify.

(2) In subsection (1) “derelict land functions” means functions under—

(a) section 1 of the Derelict Land Act 1982 (c. 42) (grants for reclaiming or improving land or bringing land into use), or

(b) any enactment superseded by that section,

but excluding the powers to make orders under section 1(5) and (7) of that Act.

(3) An appointment under this section is to be on such terms as the Secretary of State may specify.

(4) The HCA must, if appointed, act as agent in accordance with the terms of its appointment.

Chapter 4 Other functions of the HCA

General

28 Business

(1) The HCA may carry on any business.

(2) In subsection (1) “business” includes undertaking.

29 Powers to form companies etc.

The HCA may, with the consent of the Secretary of State, form, or acquire interests in, bodies corporate.

30 Community services

The HCA may provide such services for communities as it considers appropriate or facilitate the provision of such services.

Social housing

31 Duties in relation to social housing

(1) Subsection (2) applies if the HCA acquires, constructs or converts any housing or other land for use as low cost rental accommodation.

(2) The HCA must ensure that a relevant provider of low cost rental accommodation is the landlord of the accommodation when it is made available for rent.

(3) Subsection (4) applies if the HCA disposes of any housing or other land to a person on condition that the person provides low cost rental accommodation (whether in the same or different housing or other land).

(4) The HCA must impose a further condition that a relevant provider of low cost rental accommodation is the landlord of the accommodation when it is made available for rent.

(5) Subsection (6) applies if the HCA provides infrastructure to a person on condition that the person provides low cost rental accommodation.

(6) The HCA must impose a further condition ensuring that a relevant provider of low cost rental accommodation is the landlord of the accommodation when it is made available for rent.

(7) Subsection (8) applies if the HCA is proposing to give financial assistance on condition that the recipient provides low cost rental accommodation.

(8) The HCA must impose a further condition ensuring that a relevant provider of low cost rental accommodation is the landlord of the accommodation when it is made available for rent.

(9) Subsection (10) applies if the HCA is proposing to give financial assistance on condition that the recipient provides low cost home ownership accommodation.

(10) The HCA must consult the Regulator of Social Housing about the proposals.

(11) For the purposes of this section, a person provides low cost rental accommodation or low cost home ownership accommodation if (and only if) the person acquires, constructs or converts any housing or other land for use as low cost rental accommodation or (as the case may be) low cost home ownership accommodation or ensures such acquisition, construction or conversion by another.

(12) In this section—

• “English local housing authority” means a local housing authority (within the meaning of section 1 of the Housing Act 1985 (c. 68)) but excluding a Welsh county council or county borough council,

• “low cost home ownership accommodation” has the meaning given by section 70,

• “low cost rental accommodation” has the meaning given by section 69,

• “relevant provider of low cost rental accommodation” means a registered provider of social housing, an English local housing authority, a county council in England or a person controlled by an English local housing authority or county council in England (and regulations under subsections (5) and (6) of section 113 apply for the purposes of this definition as they apply for the purposes of subsection (4) of that section).

32 Recovery etc. of social housing assistance

(1) The HCA may, in such events as it may determine, exercise the powers conferred by subsections (2) to (4) in relation to a person who has received social housing assistance.

(2) The HCA may reduce any grant payable by it or restrict any other social housing assistance due from it.

(3) The HCA may suspend or cancel any instalment of any grant payable by it or any aspect of any other social housing assistance due from it.

(4) The HCA may direct the recipient of any social housing assistance given 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.

(5) The HCA may not specify an amount which exceeds the recoverable amount.

(6) The recoverable amount is—

(a) the total amount of grant received by the person to whom the direction is given, less

(b) the total of any amounts applied, appropriated or paid in accordance with any previous directions given in respect of that grant under subsection (4),

and for the purposes of paragraph (b) any amounts provided for by virtue of section 33(1) are to be ignored.

(7) Subsection (5) is without prejudice to the power of the HCA under section 33(1).

(8) In exercising its powers under subsections (2) to (4) the HCA must act in accordance with such principles as it has determined.

(9) A person who has received social housing assistance must notify the HCA if an event of a kind determined by the HCA under subsection (1) occurs after the assistance has been given.

(10) Such a person must, if required by notice of the HCA, supply the HCA with such particulars of, and information relating to, the event as are specified in the notice.

(11) The HCA must notify the Regulator of Social Housing at least 14 days before exercising, in relation to a registered provider of social housing, any of the powers conferred by subsections (2) to (4).

(12) Events determined by the HCA under subsection (1), and principles determined by the HCA under subsection (8), must be determined on or before the time the HCA gives the social housing assistance concerned unless they are determined subsequently with the agreement of the recipient of the assistance.

(13) In this Part—

• “social housing” has the same meaning as in Part 2,

• “social housing assistance” means financial assistance given under section 19 on condition that the recipient provides social housing (whether by itself or as part of a wider project);

and, for the purposes of this Part, a person provides social housing if (and only if) the person acquires, constructs, converts, improves or repairs any housing or other land for use as social housing or ensures such acquisition, construction, conversion, improvement or repair by another.

33 Section 32: interest and successors in title

(1) A direction by the HCA under section 32(4) may require the application, appropriation or payment, in addition to the specified amount, of one or more of the following—

(a) interest on the specified amount,

(b) an amount calculated by reference to any increase in the market value of any housing or other land acquired, constructed, converted, improved or repaired as a result of the grant, and

(c) interest on the amount falling within paragraph (b).

(2) Any direction falling within subsection (1)(a) or (c) must specify—

(a) the applicable rate or rates of interest (whether fixed or variable),

(b) the date from which interest is payable, and

(c) any provision for suspended or reduced interest which is applicable.

(3) The date specified under subsection (2)(b) must not be earlier than the date of the event giving rise to the power to give a direction.

(4) In subsection (2)(c)—

(a) provision for suspended interest means provision to the effect that if the principal amount is applied, appropriated or paid before a date specified in the direction, no interest will be payable for any period after the date of the direction, and

(b) provision for reduced interest means provision to the effect that if the principal amount is so applied, appropriated or paid, any interest payable will be payable at a rate or rates lower than the rate or rates which would otherwise be applicable.

(5) Any direction falling within subsection (1)(b) must specify—

(a) the housing or other land concerned, and

(b) the method of calculating the amount concerned.

(6) Subsection (7) applies if—

(a) social housing assistance has been given to a person, and

(b) at any time the social housing provided as a result of the assistance becomes vested in, or is leased for a term of years to, or reverts to, another person.

(7) Section 32 and this section (including this subsection) have effect in relation to periods after that time as if the assistance, or such element of it as may be determined by the HCA to be appropriate, had been given to that other person.

(8) The matters specified in a direction under subsection (2)(a) to (c) or (5), and the element mentioned in subsection (7), are to be—

(a) such as the HCA, acting in accordance with such principles as it may determine, may specify as being appropriate, or

(b) such as the HCA may determine to be appropriate in the particular case.

(9) Principles determined by the HCA under subsection (8)(a), and determinations by the HCA under subsection (8)(b), must be determined on or before the time the HCA gives the social housing assistance concerned unless they are determined subsequently with the agreement of the recipient of the assistance.

34 Determinations under sections 32 and 33

(1) The HCA must not make a general determination under section 32 or 33 without the consent of the Secretary of State.

(2) Before making such a determination, the HCA must consult—

(a) the Regulator of Social Housing, and

(b) such other persons as it considers appropriate.

(3) Subsection (4) applies if a general determination under section 32 or 33 about relevant events relates to social housing assistance given to a registered provider of social housing.

(4) The HCA must, in particular, consult such bodies appearing to it to represent the interests of registered providers of social housing as it considers appropriate.

(5) The HCA must publish a general determination made under section 32 or 33 in such manner as it considers appropriate for bringing the determination to the attention of those affected by it.

(6) A general determination of the HCA under section 32 or 33 may make different provision for different cases or descriptions of case (including different provision for different areas).

(7) For the purposes of subsection (6) descriptions may be framed by reference to any matters whatever.

(8) A determination of the HCA under section 32 or 33 may be varied or revoked by it (subject to any provision as to the time by which such a determination must be made).

(9) In this section—

• “general determination” means a determination which does not relate solely to a particular case,

• “relevant event” means an event of a kind determined by the HCA under section 32(1).

35 Duty to give financial assistance in respect of certain disposals

(1) The HCA must exercise its powers under section 19 to give financial assistance by way of grant to a relevant provider of social housing in respect of any discount given by the provider—

(a) to a person exercising the right to acquire conferred by section 180, or

(b) on a disposal of a dwelling in England by the provider to a qualifying tenant otherwise than in pursuance of the right conferred by that section.

(2) In subsection (1)(b) “qualifying tenant” means a tenant who was entitled to exercise the right to acquire conferred by section 180, or by section 16 of the Housing Act 1996 (c. 52), in relation to a dwelling of the relevant provider of social housing other than the dwelling being disposed of by the provider.

(3) The amount of the grant given by virtue of subsection (1)(a) to a relevant provider of social housing for any year is to be the aggregate value of the discounts given by that provider in that year.

(4) The amount of the grant given by virtue of subsection (1)(b) to a relevant provider of social housing must not exceed the amount of the discount to which the tenant would have been entitled in respect of the other dwelling.

(5) The HCA must specify—

(a) the procedure to be followed in relation to applications for a grant by virtue of this section,

(b) in the case of a grant by virtue of subsection (1)(b), the method for calculating, and any other limitations on, the amount of the grant,

(c) the manner in which, and time or times at which, a grant by virtue of this section is to be paid,

(d) any other terms or conditions on which such a grant is given.

(6) In this section—

• “dwelling” has the same meaning as in Part 2,

• “registered provider of social housing” includes a person falling within section 180(3),

• “registered social landlord” has the same meaning as in Part 1 of the Housing Act 1996,

• “relevant provider of social housing” means—

  (a)

  a registered provider of social housing, or

  (b)

  a registered social landlord,

• “tenant” has the same meaning as in Part 2.

36 Information in relation to social housing

(1) The Secretary of State may by order provide for the HCA to supply such information about—

(a) which accommodation provided directly or indirectly by it is to be social housing,

(b) the type of social housing to be so provided, and

(c) the consequences of it being social housing,

as may be specified or described in the order.

(2) An order under this section may, in particular, provide for—

(a) the person or persons to whom the information is to be provided,

(b) the time at which, or period or frequency within which, the information is to be provided,

(c) the form and manner in which the information is to be provided.

37 Duty to co-operate with Regulator of Social Housing

(1) The HCA must co-operate with the Regulator of Social Housing.

(2) In particular, the HCA must consult the regulator on matters likely to interest the regulator.

Information, education and guidance etc.

38 Information services

(1) The HCA may—

(a) publish ideas or information, or

(b) disseminate or promote ideas or information in other ways.

(2) The HCA may undertake research or experimentation.

(3) The HCA may provide other information services.

(4) The HCA may facilitate—

(a) the publication or other dissemination or promotion of ideas or information,

(b) research or experimentation, or

(c) the provision of other information services.

39 Advice, education and training

(1) The HCA may provide—

(a) advice, education or training, or

(b) other advisory, education or training services.

(2) The HCA may facilitate the provision of—

(a) advice, education or training, or

(b) other advisory, education or training services.

40 Guidance

(1) The HCA may give guidance to such persons as it considers appropriate about any matters relating to its objects.

(2) Before giving guidance under this section, the HCA must consult such persons as it considers appropriate.

(3) As soon as reasonably practicable after giving guidance under this section, the HCA must take such steps as the HCA considers appropriate to bring it to the attention of those affected by it.

(4) The HCA may revoke guidance given under this section.

(5) The HCA—

(a) must, before revoking guidance under this section, consult such persons as it considers appropriate, and

(b) must, as soon as reasonably practicable after the revocation, take such steps as it considers appropriate to bring the revocation to the attention of those affected by it.

(6) References in this section to giving guidance include references to giving guidance by varying existing guidance.

Functions in relation to companies and other persons

41 Control of subsidiaries

(1) The HCA must ensure that no subsidiary of the HCA engages, without the consent of the Secretary of State, in an activity which the HCA would not be required or permitted to carry on.

(2) The HCA must ensure that no subsidiary of the HCA—

(a) borrows from a person other than the HCA, or

(b) raises money by the issue of shares or stock to a person other than the HCA,

without the consent of the Secretary of State.

42 Agency arrangements with UDCs

(1) The HCA may, with the consent of the Secretary of State, appoint an urban development corporation to act as its agent.

(2) The appointment—

(a) may be in connection with any of the functions of the HCA other than its functions in connection with Chapter 3, and

(b) is to be on such terms as may be agreed.

(3) The appointment must specify the functions in connection with which it is made.

(4) An urban development corporation must act as agent in accordance with the terms of its appointment.

(5) An urban development corporation may arrange for any of its property or staff to be made available to the HCA if—

(a) the purpose is to assist the HCA to exercise any of its functions, and

(b) the HCA asks the urban development corporation to make the property or staff available.

(6) The property or staff are to be made available for such period, and on such other terms, as the urban development corporation considers appropriate.

(7) In this Part “urban development corporation” means a corporation established by an order under section 135 of the Local Government, Planning and Land Act 1980 (c. 65).

43 Acting with, or for, other persons: general

(1) The HCA may act with other persons (whether in partnership or otherwise).

(2) The HCA may act as agent for other persons.

44 Local government involvement

(1) The HCA must from time to time consult such representatives of local government as the HCA considers appropriate about how the HCA pursues its objects.

(2) The HCA must from time to time publish a statement about how it proposes to comply with subsection (1).

(3) Before publishing a statement the HCA must consult such persons as it considers appropriate.

Other

45 Support services

(1) The HCA may provide services in support of a project.

(2) The HCA may, in particular—

(a) second staff to the project,

(b) provide consultants or other manpower resources to the project on a temporary basis, or

(c) lend or otherwise provide technical, property or other resources to the project.

(3) The HCA may facilitate the provision of services in support of a project.

Chapter 5 Supplementary

Certain supervisory powers of the Secretary of State

46 Guidance by the Secretary of State

(1) The Secretary of State may give guidance to the HCA as to the exercise of any of its functions.

(2) Before giving guidance under this section, the Secretary of State must consult such persons as the Secretary of State considers appropriate.

(3) The Secretary of State must publish any guidance given under this section as soon as reasonably practicable after giving it.

(4) The Secretary of State may revoke guidance given under this section.

(5) The Secretary of State must—

(a) consult, before revoking guidance under this section, such persons as the Secretary of State considers appropriate, and

(b) publish the fact that the guidance has been revoked as soon as reasonably practicable after the revocation.

(6) The HCA must, in exercising its functions, have regard to any guidance for the time being in force under this section.

(7) References in this section to giving guidance include references to giving guidance by varying existing guidance.

47 Directions by the Secretary of State

(1) The Secretary of State may give the HCA general or specific directions as to the exercise of any of its functions.

(2) The Secretary of State must publish any directions given by the Secretary of State under this Part as soon as reasonably practicable after giving them.

(3) The Secretary of State—

(a) may revoke any directions given by the Secretary of State under this Part, and

(b) must publish the fact that the directions have been revoked as soon as reasonably practicable after the revocation.

(4) The HCA must comply with any directions of the Secretary of State in force under this Part.

(5) Subsections (2) and (3)(b) do not apply to directions given under section 22 or paragraph 7 of Schedule 1; and this section does not apply to directions given under Schedule 4.

(6) References in this Part to the Secretary of State giving directions include references to the Secretary of State giving directions by varying existing directions.

48 Consents of the Secretary of State

(1) Any consent of the Secretary of State required under this Part may be given—

(a) unconditionally or subject to conditions, and

(b) generally or specifically.

(2) The Secretary of State may vary or revoke any such consent except in the case of anything already done, or agreed to be done, on the authority of it.

(3) A variation or revocation under subsection (2) does not have effect until the Secretary of State has served notice of it on the HCA or (as the case may be) the other person to whom the consent is given.

Abolition of existing bodies

49 Abolition of Urban Regeneration Agency

The Urban Regeneration Agency shall cease to exist on such day as the Secretary of State may by order appoint.

50 Abolition of the Commission for the New Towns

(1) The Commission for the New Towns shall cease to exist on such day as the Secretary of State may by order appoint.

(2) Schedule 5 (which transfers Welsh functions of the Commission to the Welsh Ministers and makes other amendments of the New Towns Act 1981 (c. 64)) has effect.

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

(1) The Secretary of State may make one or more schemes for—

(a) the transfer to the HCA of designated property, rights or liabilities of—

(i) the Urban Regeneration Agency,

(ii) the Commission for the New Towns,

(iii) a regional development agency (within the meaning of the Regional Development Agencies Act 1998 (c. 45)), or

(iv) a Minister of the Crown, or

(b) the transfer to the Welsh Ministers of designated property, rights or liabilities of—

(i) the Urban Regeneration Agency, or

(ii) the Commission for the New Towns.

(2) On the transfer date, the designated property, rights or liabilities are transferred and vest in accordance with the scheme.

(3) Schedule 6 (which makes further provision about the making of schemes) has effect.

(4) In this section and in Schedule 6—

• “designated” in relation to a scheme, means specified in, or determined in accordance with, the scheme,

• “Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975 (c. 26),

• “the transfer date” means a date specified by a scheme as the date on which the scheme is to have effect.

(5) Schedule 7 makes provision about the tax implications of schemes under this section (and schemes under section 65).

52 Role of the HCA in relation to former CNT functions

(1) The HCA must, so far as practicable, exercise its powers in relation to—

(a) any property, rights or liabilities of the Commission for the New Towns transferred to it by virtue of section 51 and Schedule 6,

(b) any property, rights or liabilities of a new town development corporation transferred to it by virtue of section 41 of, and Schedule 10 to, the New Towns Act 1981 (c. 64),

(c) any undertaking, or part of an undertaking, of an urban development corporation transferred to it by virtue of an agreement under section 165 of the Local Government, Planning and Land Act 1980 (c. 65), or

(d) any property, rights or liabilities of an urban development corporation transferred to it by virtue of an order under section 165B of that Act,

for the purposes of the objects mentioned in section 2(1) or for purposes incidental to those purposes.

(2) But subsection (1) does not apply if the HCA does not consider it appropriate to exercise its powers in this way having regard, in particular, to the purposes for which the transferred property was held by the Commission for the New Towns, the new town development corporation or (as the case may be) the urban development corporation.

(3) In such a case, the HCA must exercise its powers in relation to the transferred property in such a way as it considers appropriate having regard, in particular, to—

(a) the objects mentioned in section 2(1), and

(b) the purposes for which the transferred property was held by the body concerned,

and the references in this Part to the objects of the HCA are to be read accordingly.

(4) In this section—

• “new town development corporation” means a development corporation established under section 3 of the New Towns Act 1981 (c. 64),

• “transferred property” means any property, rights or liabilities, or any undertaking or part of an undertaking, falling within paragraphs (a) to (d) of subsection (1) above.

53 Interim arrangements

(1) The Secretary of State may by notice 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—

(a) the HCA, or

(b) the Welsh Ministers.

(2) In paragraph 1(1) of Schedule 17 to the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) (constitution of the Urban Regeneration Agency: number of members), for “six” substitute “two”.

(3) This section is without prejudice to the power of the Secretary of State under section 322(1).

Other

54 Validity of transactions

(1) A transaction between a person and the HCA is not invalid merely because of a failure by the HCA to exercise its powers for the purposes mentioned in sections 3 and 4(2).

(2) A transaction between a person and the HCA is not invalid merely because it was carried out in contravention of a direction under section 47.

(3) A transaction between a person and a subsidiary of the HCA is not invalid merely because of a failure by the HCA to comply with section 41(1) or (2).

(4) A person entering into a transaction with the HCA or a subsidiary of the HCA need not be concerned as to whether—

(a) there has been a failure of the kind mentioned in subsection (1) or (3), or

(b) a direction of the kind mentioned in subsection (2) has been given or complied with.

(5) A disposal of land by the HCA is not invalid merely because any consent required by section 10(1) or (3) has not been given.

(6) A person dealing with—

(a) the HCA, or

(b) a person claiming under the HCA,

in relation to any land need not be concerned as to whether any consent required by section 10(1) or (3) has been given.

55 Notices

(1) Any notice required or authorised under this Part to be served on any person may be served by—

(a) delivering it to the person,

(b) leaving it at the person’s proper address, or

(c) sending it by post to the person at that address.

(2) Any such notice may—

(a) in the case of a body corporate, be served in accordance with subsection (1) on an officer of the body, and

(b) in the case of a partnership, be served in accordance with subsection (1) on a partner or a person having the control or management of the partnership business.

(3) For the purposes of this section and section 7 of the Interpretation Act 1978 (c. 30) (service of documents by post) in its application to this section, the proper address of any person on whom a notice is to be served is the person’s last known address except as follows.

(4) For the purposes of this section and section 7 of the Act of 1978 in its application to this section, the proper address is—

(a) in the case of service on a body corporate or an officer of the body, the address of the registered or principal office of the body, and

(b) in the case of service on a partnership, a partner or a person having the control or management of the partnership business, the address of the principal office of the partnership.

(5) For the purposes of subsection (4) the principal office of a company registered outside the United Kingdom or of a partnership carrying on business outside the United Kingdom is its principal office within the United Kingdom.

(6) Subsection (7) applies if a person to be served under this Part with a notice has specified an address within the United Kingdom other than the person’s proper address (as decided under subsections (3) and (4)) as the one at which the person, or someone on the person’s behalf, will accept documents of the same description as the notice.

(7) The specified address is also to be treated for the purposes of this section and section 7 of the Act of 1978 in its application to this section as the person’s proper address.

(8) Subsection (9) applies if the name or address of any owner, lessee or occupier of land on whom a notice is to be served under this Part cannot, after reasonable inquiry, be ascertained.

(9) The notice may be served by—

(a) leaving it in the hands of a person who is, or appears to be, resident or employed on the land, or

(b) leaving it conspicuously affixed to a building or object on the land.

(10) Any notice required or authorised under this Part to be served on any person may be served on the person by transmitting the text of the notice to the person by means of an electronic communications network or by other means but while in electronic form provided the text is received by the person in legible form and is capable of being used for subsequent reference.

(11) In this section—

• “body corporate” includes a limited liability partnership,

• “director”, in relation to a body corporate whose affairs are managed by its members, means a member of the body corporate,

• “officer of a body corporate” means any director, manager, secretary or other similar officer of the body corporate,

• “partnership” does not include a limited liability partnership,

and references to serving include references to similar expressions (such as giving or sending).

56 Consequential amendments: Part 1

Schedule 8 (which contains amendments of enactments) has effect.

57 Interpretation: Part 1

(1) In this Part—

• “conduit system” has the same meaning as in the electronic communications code; and references to providing a conduit system are to be read in accordance with paragraph 1(3A) of that code,

• “develop” (and development), in relation to land or infrastructure, includes redevelop (and redevelopment),

• “electronic communications apparatus” has the same meaning as in the electronic communications code,

• “the electronic communications code” has the same meaning as in Chapter 1 of Part 2 of the Communications Act 2003 (c. 21),

• “electronic communications code network” means—

  (a)

  so much of an electronic communications network or conduit system provided by an electronic communications code operator as is not excluded from the application of the electronic communications code by a direction under section 106 of the Act of 2003 (application of the electronic communications code), and

  (b)

  an electronic communications network which the Secretary of State is providing or proposing to provide,

• “electronic communications code operator” means a person in whose case the electronic communications code is applied by a direction under section 106 of the Act of 2003,

• “electronic communications network” has the same meaning as in the Act of 2003,

• “enactment” includes subordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30)),

• “financial year” means—

  (a)

  the period beginning with the day on which the HCA is established and ending with the next 31 March, and

  (b)

  each subsequent period of 12 months ending with 31 March,

• “improve”, in relation to housing and other land, includes refurbish, equip and fit out,

• “modifications” includes omissions,

• “notice” means notice in writing,

• “operator”, in relation to an electronic communications code network means—

  (a)

  the electronic communications code operator providing that network, or

  (b)

  the Secretary of State, so far as the Secretary of State is providing or proposing to provide that network,

• “provide” and related expressions, in relation to an electronic communications network, are to be read in accordance with section 32(4) of the Communications Act 2003 (c. 21).

(2) References in this Part to powers of the HCA do not include references to powers contained in duties imposed on the HCA.

58 Index of defined expressions: Part 1

In this Part, the expressions listed in the left-hand column have the meaning given by, or are to be interpreted in accordance with, the provisions listed in the right-hand column.

Part 2 Regulation of Social Housing

Chapter 1 Introduction

Preliminary

59 Purpose

The purpose of this Part is to regulate the provision of social housing (as defined in sections 68 to 77) by English bodies (as defined in section 79).

60 Structural overview

(1) This Part replaces the system of “registered social landlords” under Part 1 of the Housing Act 1996 (c. 52).

(2) That Part will continue to apply in relation to Wales (see section 61).

(3) Certain provisions of that Part—

(a) are applied in relation to England by this Part (see section 179), or

(b) are preserved although they apply to England only (see section 124).

(4) The Table describes the content of this Part.

61 Restriction of “registered social landlord” system to Wales

(1) Part 1 of the Housing Act 1996 (c. 52) (social rented sector) is amended as follows (and the title of Part 1 becomes “Social Rented Sector in Wales”).

(2) Before section 1 (register of social landlords) insert—

“A1 Introduction

This Chapter provides for the registration of social landlords in Wales.”

(3) In section 1—

(a) for “The Relevant Authority” substitute “The Welsh Ministers”, and

(b) omit subsections (1A) and (1B).

(4) After section 1 insert—

“1A Welsh bodies

In this Chapter “Welsh body” means a body which is—

(a) a registered charity whose address, for the purposes of registration by the Charity Commission for England and Wales, is in Wales,

(b) an industrial and provident society whose registered office for the purposes of the Industrial and Provident Societies Act 1965 is in Wales, or

(c) a company within the meaning of the Companies Act 2006 which has its registered office for the purposes of that Act in Wales.”

(5) In section 2 (eligibility for registration)—

(a) in subsection (1), for “A body” substitute “A Welsh body”,

(b) in subsection (2) after “that the body is” insert “principally concerned with Welsh housing, is”,

(c) after subsection (2) insert—

“(2A) A body is principally concerned with Welsh housing if the Welsh Ministers think—

(a) that it owns housing only or mainly in Wales, or

(b) that its activities are principally undertaken in respect of Wales;

and once a body has been registered in reliance on paragraph (a) or (b) it does not cease to be eligible for registration by virtue only of ceasing to satisfy that paragraph.”,

(d) in subsection (7) for “Secretary of State” (in each place) substitute “Welsh Ministers”, and

(e) in subsection (8) for “either House of Parliament” substitute “the National Assembly for Wales”.

(6) In section 3 (registration)—

(a) in subsection (1) for “any body” substitute “any Welsh body”, and

(b) in subsection (4) for “A body” substitute “A Welsh body”.

(7) The table sets out substitutions which have effect throughout the Part (except section 51 and Schedule 2); and where necessary in consequence of those substitutions, for words in the singular substitute appropriate corresponding words in the plural.

(8) Omit section 56 (meaning of “the Relevant Authority”).

(9) Sections 62 and 63 make other consequential amendments.

62 References to Welsh Ministers

In the following provisions of the Housing Act 1996 (c. 52)—

(a) for “Secretary of State” substitute “Welsh Ministers”,

(b) for “Secretary of State makes” substitute “Welsh Ministers make”,

(c) for “he” substitute “they”,

(d) for “him” substitute “them” (except in section 12A(4)), and

(e) for “considers” substitute “consider”.

63 References to National Assembly for Wales

In the following provisions of the Housing Act 1996 (c. 52) for “either House of Parliament” substitute “the National Assembly for Wales”.

64 Dissolution of Housing Corporation

(1) The Secretary of State shall by order make provision for the dissolution of the Housing Corporation.

(2) The Secretary of State may by order make consequential amendment of enactments referring to the Housing Corporation.

(3) Omit section 33A of the Housing Associations Act 1985 (c. 69) (provision of services between the Corporations).

65 Transfer schemes

(1) The Secretary of State may make one or more schemes for the transfer of the Housing Corporation’s property, rights or liabilities to—

(a) the regulator,

(b) the HCA, or

(c) the Secretary of State.

(2) On the transfer date, the designated property, rights or liabilities are transferred and vest in accordance with the scheme.

(3) Schedule 6 applies to a scheme under this section.

(4) In this section—

• “designated”, in relation to a scheme, means specified in or determined in accordance with the scheme;

• “the transfer date” means the date specified by a scheme as the date on which the scheme is to have effect.

(5) Schedule 7 makes provision about the tax implications of schemes under this section (and schemes under section 51).

66 Interim arrangements

The Secretary of State may by notice require the Housing Corporation to provide staff, premises, facilities or other assistance to—

(a) the regulator, or

(b) the HCA.

67 Transitional arrangements

(1) The Secretary of State may by order transfer functions of the Housing Corporation to—

(a) the regulator,

(b) the HCA, or

(c) the regulator and the HCA jointly or concurrently.

(2) An order under subsection (1) may make provision in relation to English registered social landlords which is similar to any provision made by this Part in relation to registered providers.

(3) “English registered social landlord” means a body—

(a) which is registered as a social landlord under Part 1 of the Housing Act 1996, and

(b) which does not fall within paragraphs (a) to (c) of section 56(2) of that Act (Welsh bodies).

(4) The Secretary of State may by order make further provision in respect of a function transferred under this section (which may, in particular, include provision for the function to cease to be exercisable).

(5) Provision made under this section, including provision made by virtue of section 320(1)(d), may modify an enactment.

(6) Provision under section 322(1) in connection with the coming into force of a provision of this Act may, in particular, include transitional provision having regard to the effect of provision made under this section.

Social housing

68 Basic principle

(1) In this Part “social housing” means—

(a) low cost rental accommodation (defined by section 69), and

(b) low cost home ownership accommodation (defined by section 70).

(2) Accommodation which becomes “social housing” by satisfying subsection (1)(a) or (b) remains “social housing” for the purposes of this Part unless and until an event specified in sections 73 to 76 occurs.

(3) Section 77 makes transitional provision as a result of which certain accommodation is to be treated as “social housing” whether or not it satisfies subsection (1)(a) or (b).

69 Low cost rental

Accommodation is low cost rental accommodation if—

(a) it is made available for rent,

(b) the rent is below the market rate, and

(c) the accommodation is made available in accordance with rules designed to ensure that it is made available to people whose needs are not adequately served by the commercial housing market.

70 Low cost home ownership

(1) Accommodation is low cost home ownership accommodation if the following conditions are satisfied.

(2) Condition 1 is that the accommodation is occupied, or made available for occupation, in accordance with—

(a) shared ownership arrangements,

(b) equity percentage arrangements, or

(c) shared ownership trusts.

(3) Condition 2 is that the accommodation is made available in accordance with rules designed to ensure that it is made available to people whose needs are not adequately served by the commercial housing market.

(4) “Shared ownership arrangements” means arrangements under a lease which—

(a) is granted on payment of a premium calculated by reference to a percentage of either the value of the accommodation or the cost of providing it, and

(b) provides that the tenant (or the tenant’s personal representatives) will or may be entitled to a sum calculated by reference to the value of the accommodation.

(5) “Equity percentage arrangements” means arrangements under which—

(a) the owner of a freehold or leasehold interest in residential property (“the seller”) conveys it to an individual (“the buyer”),

(b) the buyer, in consideration for the conveyance—

(i) pays the seller a sum (the “initial payment”) expressed to represent a percentage of the value of the interest at the time of the conveyance, and

(ii) agrees to pay the seller other sums calculated by reference to a percentage of the value of the interest at the time when each sum is to be paid, and

(c) the liability to make any payment required by the arrangements (apart from the initial payment) is secured by a mortgage.

(6) Shared ownership trusts has the same meaning as in Schedule 9 to the Finance Act 2003 (c. 14) (stamp duty land tax).

(7) The Secretary of State may make regulations amending—

(a) the definition of “low cost home ownership accommodation”;

(b) the definition of any of the sub-categories specified in that definition.

71 Shared ownership low cost rental

Accommodation which is both low cost rental accommodation and low cost home ownership accommodation is to be treated as the latter and not as the former.

72 Regulations

(1) The Secretary of State may make regulations providing that specified property, or a specified class of property, is or is not to be treated as social housing for the purposes of this Part.

(2) The regulations may provide for property to be social housing despite not satisfying section 68(1)(a) or (b) where the Secretary of State thinks the property is of a kind, or is provided in circumstances, that serve the needs of a group whose needs are not adequately served by the commercial housing market.

(3) The regulations—

(a) may override section 68(2),

(b) are subject to sections 68(3) and 77, and

(c) are subject to sections 69 and 70 (but may clarify doubt about the application of those sections).

(4) The regulations—

(a) may make provision by reference to the opinion of the regulator or another specified person, and

(b) may make provision by reference to designation, agreement or other action by the regulator or another specified person.

73 Leaving the social housing stock: sale

(1) A dwelling ceases to be social housing if it is sold to the tenant.

(2) Low cost rental accommodation is “sold to the tenant” when the tenant exercises a statutory or contractual right and as a result becomes the owner of—

(a) the freehold interest in the property, or

(b) the leasehold interest previously owned by the person providing the social housing.

(3) Low cost home ownership accommodation of the shared ownership kind is “sold to the tenant” when the tenant exercises a statutory or contractual right and as a result becomes the owner of—

(a) the freehold interest in the property, or

(b) the leasehold interest previously owned by the person providing the social housing.

(4) Low cost home ownership accommodation of the equity percentage kind is “sold to the tenant” when the “buyer” (see section 70(5)(a)) exercises a statutory or contractual right as a result of which the equity percentage arrangements (see section 70(5)) come to an end.

(5) Low cost home ownership accommodation of the shared ownership trust kind comes to an end when the “purchaser” (see paragraph 7(4)(a) of Schedule 9 to the Finance Act 2003 (c. 14)) exercises a statutory or contractual right as a result of which the trust comes to an end.

74 Leaving the social housing stock: expired lease

(1) A dwelling ceases to be social housing if—

(a) the provider holds a leasehold interest in the dwelling, and

(b) the leasehold interest expires.

(2) A lease from an associate or subsidiary of the provider is disregarded for the purposes of subsection (1).

75 Leaving the social housing stock: disposal with consent

(1) A dwelling ceases to be social housing if it is disposed of with the regulator’s consent in accordance with—

(a) Chapter 5,

(b) section 171D of the Housing Act 1985 (c. 68) (consent to certain disposals of housing obtained subject to the preserved right to buy), or

(c) section 81 or 133 of the Housing Act 1988 (c. 50) (consent to certain disposals of housing obtained from housing action trusts or local authorities).

(2) Subsection (1) does not apply to a disposal in pursuance of shared ownership arrangements or equity percentage arrangements.

(3) Subsection (1) does not apply if the consent is conditional upon the dwelling continuing to be low cost rental accommodation or low cost home ownership accommodation.

(4) A condition of that kind shall include provision for determining when the dwelling ceases to be social housing.

76 Leaving the social housing stock: regulator’s direction

(1) The regulator may direct that a specified dwelling is to cease to be social housing.

(2) The regulator may make a direction only on the application of the provider.

77 Housing stock under Housing Act 1996

(1) This section applies to property owned by a registered social landlord within the meaning of Part 1 of the Housing Act 1996 (c. 52) before the coming into force of section 61 of this Act.

(2) Property to which this section applies is social housing—

(a) whether or not it satisfies section 68(1)(a) or (b), and

(b) unless and until an event specified in sections 73 to 76 occurs.

(3) But property to which any of the exceptions below applies when section 61 comes into force is social housing only if the purchase, construction or renovation of the property was funded by means of a grant under—

(a) section 19 (financial assistance by the HCA),

(b) section 18 of the Housing Act 1996 (social housing grant), or

(c) section 50 of the Housing Act 1988, section 41 of the Housing Associations Act 1985 (c. 69) or section 29 or 29A of the Housing Act 1974 (c. 44) (housing association grant).

(4) Exception 1 is accommodation let on the open market.

(5) Exception 2 is accommodation made available only to students in full-time education or training.

(6) Exception 3 is a care home (within the meaning of the Care Standards Act 2000 (c. 14)) in which nursing is provided.

(7) Exception 4 is accommodation provided in response to a request by the Secretary of State under section 100 of the Immigration and Asylum Act 1999 (c. 33) (support for asylum seekers).

(8) Exception 5 is property of a kind specified by regulations made by the Secretary of State.

Other key concepts

78 Regulator of Social Housing

(1) Section 81 establishes the Office referred to in this Part as “the regulator”.

(2) Chapter 2 makes provision for the regulator’s constitution and general powers.

(3) Other provisions of this Part confer functions on the regulator.

79 English bodies

(1) In this Part “English body” means—

(a) a registered charity whose address for the purposes of registration by the Charity Commission is in England,

(b) an industrial and provident society whose registered office for the purposes of the Industrial and Provident Societies Act 1965 (c. 12) is in England,

(c) a registered company which has its registered office in England,

(d) a community land trust which owns land in England, and

(e) any other person (whether or not a body corporate registered under the law of the United Kingdom) which—

(i) is not a Welsh body within the meaning of section 1A of the Housing Act 1996 (c. 52), and

(ii) makes available, or intends to make available, accommodation in England.

(2) In subsection (1)(d) “community land trust” means a body corporate which satisfies the conditions below.

(3) In those conditions “local community” means the individuals who live or work, or want to live or work, in a specified area.

(4) Condition 1 is that the body is established for the express purpose of furthering the social, economic and environmental interests of a local community by acquiring and managing land and other assets in order—

(a) to provide a benefit to the local community, and

(b) to ensure that the assets are not sold or developed except in a manner which the trust’s members think benefits the local community.

(5) Condition 2 is that the body is established under arrangements which are expressly designed to ensure that—

(a) any profits from its activities will be used to benefit the local community (otherwise than by being paid directly to members),

(b) individuals who live or work in the specified area have the opportunity to become members of the trust (whether or not others can also become members), and

(c) the members of the trust control it.

80 Provider of social housing

(1) In this Chapter a reference to the provider of social housing is to be construed as follows.

(2) Chapter 3 provides for the establishment of a register of providers of social housing: persons listed in the register—

(a) may be referred to in an enactment or other instrument as “registered providers of social housing”, and

(b) are referred to in this Part as “registered providers”.

Chapter 2 The Social Housing Regulator

Constitution

81 Establishment

(1) There shall be a body corporate to be known as the Office for Tenants and Social Landlords.

(2) The Office—

(a) may be referred to in an enactment or other instrument as “the Regulator of Social Housing”, and

(b) is referred to in this Part as “the regulator”.

(3) The Office (and any member of the Office)—

(a) is not the servant or agent of the Crown, and

(b) does not share any immunity or privilege of the Crown.

82 Membership

(1) The regulator shall consist of—

(a) a person appointed by the Secretary of State as chair,

(b) neither less than 3 nor more than 10 other members appointed by the Secretary of State, and

(c) the chief executive appointed under section 84.

(2) The Secretary of State must consult the chair before appointing other members.

(3) The Secretary of State may appoint a person under subsection (1) only if satisfied that the person has no financial or other personal interest in the performance of functions.

(4) Former membership of the Housing Corporation is not a bar to appointment.

(5) In this Part “appointed member” means—

(a) the chair, or

(b) a member appointed under subsection (1)(b).

(6) A vacancy for, or a defect in the appointment of, the chair, the chief executive or another member does not prevent or invalidate proceedings.

83 Tenure

(1) An appointed member holds and vacates office in accordance with the terms of appointment (subject to this section).

(2) A period of appointment may not exceed 5 years (but a member may be reappointed).

(3) An appointed member may resign by notice to the Secretary of State.

(4) The Secretary of State may dismiss an appointed member if satisfied that any of the following cases applies—

(a) Case 1 is where a member has been absent from meetings of the regulator for a period of more than 6 months without its permission.

(b) Case 2 is where a member is subject to—

(i) a bankruptcy restrictions order, or

(ii) an interim bankruptcy restrictions order.

(c) Case 3 is where—

(i) a member’s estate has been sequestrated by a court in Scotland, or

(ii) under the law of Scotland, a member has made a composition or arrangement with, or granted a trust deed for, creditors.

(d) Case 4 is where a member has a financial or other personal interest which is likely to influence the performance of functions.

(e) Case 5 is where a member has misbehaved or is for any other reason unable, unsuitable or unwilling to perform functions.

84 Chief executive

(1) The regulator shall appoint a chief executive.

(2) The regulator may appoint a person only if approved by the Secretary of State.

(3) The first chief executive shall be appointed by the Secretary of State, having consulted the chair.

85 Other staff

The regulator may appoint employees (in addition to the chief executive).

Proceedings

86 Fundamental objectives

(1) The regulator shall perform its functions with a view to achieving the following objectives so far as possible.

(2) Objective 1 is to encourage and support a supply of well-managed social housing, of appropriate quality, sufficient to meet reasonable demands.

(3) Objective 2 is to ensure that actual or potential tenants of social housing have an appropriate degree of—

(a) choice, and

(b) protection.

(4) Objective 3 is to ensure that tenants of social housing have the opportunity to be involved in its management.

(5) Objective 4 is to ensure that registered providers of social housing perform their functions efficiently, effectively and economically.

(6) Objective 5 is to ensure that registered providers of social housing are financially viable and properly managed.

(7) Objective 6 is to encourage registered providers of social housing to contribute to the environmental, social and economic well-being of the areas in which the housing is situated.

(8) Objective 7 is to encourage investment in social housing (including by promoting the availability of financial services to registered providers of social housing).

(9) Objective 8 is to avoid the imposition of an unreasonable burden (directly or indirectly) on public funds.

(10) Objective 9 is to guard against the misuse of public funds.

(11) Objective 10 is to regulate in a manner which—

(a) minimises interference, and

(b) is proportionate, consistent, transparent and accountable.

(12) Pursuit of Objective 10 includes, but is not necessarily limited to, compliance with any duty of the regulator under section 22 of the Legislative and Regulatory Reform Act 2006 (c. 51) (code of practice).

(13) The order in which the objectives are listed in this section is not significant; the regulator shall balance them as it thinks appropriate.

(14) The objectives are referred to in this Part as the regulator’s fundamental objectives.

87 Procedure

(1) The regulator may determine its own procedure (which may include provision about a quorum).

(2) The regulator shall make such arrangements as it thinks appropriate for publishing its procedure.

88 Conflict of interest

(1) The regulator’s procedural arrangements under section 87 must include arrangements for dealing with any conflict of interest of—

(a) members,

(b) employees, or

(c) members of committees and sub-committees.

(2) The arrangements must oblige a person—

(a) to declare any financial or other personal interest relevant to the exercise of a function, and

(b) to withdraw from the performance of that function unless the regulator directs otherwise, being satisfied that the interest will not influence performance of the function.

89 Committees

(1) The regulator may establish committees and sub-committees.

(2) A committee or sub-committee may include non-members (provided that it includes at least one member).

90 Delegation

The regulator may authorise any of the following to exercise a function—

(a) a committee,

(b) a sub-committee,

(c) a member, and

(d) an employee.

91 Seal

(1) The application of the regulator’s seal shall be authenticated by a member or by some other person authorised (generally or specially) for that purpose.

(2) A document purporting to be duly executed under the seal—

(a) shall be received in evidence, and

(b) shall be treated as so executed unless the contrary is shown.

92 Annual report

(1) As soon as is reasonably practicable after the end of each financial year the regulator shall—

(a) prepare a report on the performance of its functions during the year, and

(b) send a copy to the Secretary of State.

(2) The report must, in particular—

(a) include a statement of the regulator’s accounts,

(b) specify any direction given to the regulator by the Secretary of State in that year under section 197, and

(c) contain a general description of complaints made to the regulator in that year about the performance of registered providers and of how those complaints have been dealt with.

(3) The Secretary of State shall lay a copy before Parliament.

Powers

93 General

(1) The regulator may do anything it thinks necessary or expedient for the purpose of or in connection with the performance of a function conferred on it by this Part or another enactment.

(2) In particular, the regulator may do anything it thinks appropriate for advancing its fundamental objectives.

94 Studies

(1) The regulator may carry out or commission studies designed to improve the economy, effectiveness and efficiency of registered providers.

(2) The regulator may publish a report on a study.

95 Financial assistance

(1) The regulator may, where it thinks it advances a fundamental objective, give financial assistance to a person in connection with—

(a) undertaking research,

(b) preparing guidance,

(c) developing and publicising best practice, or

(d) facilitating the management of social housing by tenants.

(2) Financial assistance under subsection (1) may be given—

(a) by way of grant,

(b) by way of loan,

(c) by defraying expenditure on behalf of a person, or

(d) in any other way except purchasing loan or share capital of a body corporate or giving a guarantee or indemnity.

(3) The regulator may, where it thinks it advances a fundamental objective, give financial assistance to a registered provider by—

(a) lending money to or in respect of the registered provider, or

(b) giving a guarantee or indemnity in respect of the registered provider.

(4) Financial assistance may be given under subsection (3) only with the consent of the Secretary of State (given with the approval of the Treasury).

(5) Financial assistance under subsection (1) or (3) may be given on conditions (which may include provision for repayment, with or without interest).

96 Evidence

In considering whether to exercise a power under this Part the regulator may have regard to information or opinions from any source including, in particular, from—

(a) tenants,

(b) bodies representing tenants,

(c) local housing authorities, or

(d) an ombudsman appointed by virtue of section 124.

97 Information, advice etc.

(1) The regulator may for the purpose of advancing its fundamental objectives—

(a) publish ideas or information;

(b) undertake research in relation to social housing;

(c) provide guidance, advice, education or training.

(2) The regulator may for that purpose—

(a) arrange for another person to do anything within subsection (1)(a) to (c);

(b) act jointly with, cooperate with or assist another person doing anything within subsection (1)(a) to (c).

(3) The persons to whom advice may be given under subsection (1) include—

(a) unregistered housing associations (as defined by section 2B of the Housing Associations Act 1985 (c. 69)), and

(b) persons who may be forming a housing association (within the meaning of section 1(1) of that Act).

98 Tenant involvement

(1) The regulator shall—

(a) promote awareness of the regulator’s functions among tenants of social housing,

(b) where the regulator thinks it appropriate, consult them about the exercise of its functions (for example, by holding meetings), and

(c) where the regulator thinks it appropriate, involve them in the exercise of its functions (for example, by appointing them to committees or sub-committees).

(2) The regulator shall from time to time publish a statement about how it proposes to comply with subsection (1).

(3) Before publishing a statement the regulator must consult such persons as it thinks appropriate.

Money

99 Remuneration

(1) The regulator may pay to or in respect of appointed members—

(a) remuneration,

(b) travelling and other allowances, and

(c) sums by way of or in respect of pensions and gratuities.

(2) The Secretary of State shall determine rates and eligibility criteria for payments under subsection (1).

(3) If the Secretary of State thinks there are special circumstances that make it right to compensate a person on ceasing to be an appointed member, the regulator may pay compensation determined by the Secretary of State.

(4) The regulator may pay to or in respect of employees —

(a) remuneration,

(b) travelling and other allowances, and

(c) sums by way of or in respect of pensions and gratuities.

(5) In this section a reference to a member or employee includes a reference to a former member or employee.

100 Charging

The regulator may charge for giving advice, conducting research or providing other services.

101 Assistance by Secretary of State

(1) The Secretary of State may make payments to the regulator by way of grant or loan.

(2) A grant or loan may be subject to conditions (which may include provision for repayment, with or without interest).

102 Borrowing

(1) The regulator may borrow—

(a) by way of overdraft or otherwise, for the purpose of what it considers to be short-term management of its finances, or

(b) from the Secretary of State.

(2) The regulator may not borrow otherwise.

103 Accounts

(1) The regulator shall keep accounts (and records of its accounts).

(2) As soon as is reasonably practicable after the end of each financial year the regulator shall prepare a statement of accounts in respect of that financial year.

(3) The statement must be in such form as the Secretary of State may direct.

(4) The regulator shall, within such period as the Secretary of State may direct, send a copy of the statement to—

(a) the Secretary of State, and

(b) the Comptroller and Auditor General.

(5) The Comptroller and Auditor General shall—

(a) examine, certify and report on the statement, and

(b) lay a copy of the report before Parliament.

104 Financial year

(1) The regulator’s financial year is each period of 12 months beginning with 1st April.

(2) But the first financial year is the period—

(a) beginning with the day on which section 81 comes into force, and

(b) ending with the next 31st March.

Relationship with other bodies

105 Cooperation with the HCA

(1) The regulator shall cooperate with the HCA.

(2) In particular, the regulator shall consult the HCA on matters likely to interest it.

106 Direction to the HCA

(1) The regulator may direct the HCA not to give financial assistance to a specified registered provider—

(a) under section 19, and

(b) in connection with social housing.

(2) A direction may be given if—

(a) the regulator has decided to hold an inquiry into affairs of the registered provider under section 206 (and the inquiry is not concluded),

(b) the regulator has received notice in respect of the registered provider under section 145, or

(c) the regulator has appointed an officer of the registered provider under section 269 (and the person appointed has not vacated office).

(3) A direction may prohibit the HCA from giving assistance of a specified kind (whether or not in pursuance of a decision already taken and communicated to the registered provider).

(4) A direction may not prohibit grants to a registered provider in respect of discounts given by the provider on disposals of dwellings to tenants.

(5) A direction shall have effect until withdrawn.

Information

107 Collection

(1) The regulator may for a purpose connected with its functions require a person to provide documents or information which it has reason to believe is or may be in the person’s possession and which relates to—

(a) the financial or other affairs of a registered provider;

(b) activities which are or may be carried out by a person who is, or who has applied to become, a registered provider.

(2) A requirement may be imposed on a person other than the body to which the document or information relates only if—

(a) the body has been required to provide the document or information but has failed to do so, or

(b) the regulator thinks that the body is unable to provide it.

(3) A requirement may specify—

(a) the form and manner in which a document or information is to be provided (which may include the provision of a legible copy of information stored electronically);

(b) when and where it is to be provided.

(4) The regulator may copy or record documents or information provided.

(5) Failure to comply with a requirement without reasonable excuse is an offence.

(6) Intentionally altering, suppressing or destroying a document or information to which a requirement relates is an offence.

(7) If a person fails to comply with a requirement the High Court may, on an application by the regulator, make an order for the purpose of remedying the failure.

108 Section 107: supplemental

(1) A requirement does not require a person to disclose anything which the person would be entitled to refuse to disclose on grounds of legal professional privilege in proceedings in the High Court.

(2) A requirement does not require a banker to breach a duty of confidentiality owed to a person who is not—

(a) the registered provider to whose affairs or activities the documents or information relates,

(b) a subsidiary of the registered provider, or

(c) an associate of the registered provider.

(3) A person guilty of an offence under section 107(5) is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(4) A person guilty of an offence under section 107(6) is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to—

(i) imprisonment for a term not exceeding two years,

(ii) a fine, or

(iii) both.

(5) Proceedings for an offence under section 107(5) or (6) may be brought only by or with the consent of—

(a) the regulator, or

(b) the Director of Public Prosecutions.

(6) An order under section 107(7) may include provision about costs.

109 Disclosure

(1) A public authority may disclose information to the regulator if the authority thinks that the disclosure is necessary for a purpose connected with the regulator’s functions.

(2) The regulator may disclose information to a public authority if the regulator thinks that the disclosure is necessary—

(a) for a purpose connected with the regulator’s functions, or

(b) for a purpose connected with the authority’s functions.

(3) The regulator may disclose information to a person acting on its behalf for a purpose connected with the regulator’s functions.

(4) A disclosure may be subject to restrictions on further disclosure.

(5) The power to disclose information under this section is subject to any express restriction on disclosure imposed by another enactment (ignoring any restriction which allows disclosure if authorised by an enactment).

(6) Disclosure in contravention of a restriction under subsection (4) is an offence.

(7) A person guilty of an offence is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(8) “Public authority” means a person having functions of a public nature (whether or not in the United Kingdom).

Chapter 3 Registration

Introduction

110 Overview

This Chapter provides for the establishment of a register of providers of social housing.

111 The register

(1) The regulator shall maintain a register of providers of social housing.

(2) The regulator shall make the register available for inspection by the public.

Eligibility

112 Eligibility for registration

(1) An English body is eligible for registration if—

(a) it satisfies the following conditions, and

(b) it does not fall within the exceptions in section 113.

(2) Condition 1 is that the body—

(a) is a provider of social housing in England, or

(b) intends to become a provider of social housing in England.

(3) Condition 2 is that the body satisfies any relevant criteria set by the regulator as to—

(a) its financial situation,

(b) its constitution, and

(c) other arrangements for its management.

(4) Before setting criteria the regulator must consult—

(a) the HCA,

(b) one or more bodies appearing to it to represent the interests of registered providers, and

(c) one or more bodies appearing to it to represent the interests of tenants.

113 Local authority non-registrable bodies

(1) This section sets out the exceptions to section 112(1).

(2) Exception 1 is a local housing authority.

(3) Exception 2 is a county council.

(4) Exception 3 is a person controlled by an authority within Exception 1 or 2.

(5) The Secretary of State may make regulations defining when a person is controlled by an authority for the purpose of Exception 3.

(6) The definition may be expressed by reference to a definition for the time being given in a document identified by regulations under section 21(2)(b) of the Local Government Act 2003 (c. 26) (accounting practices for local authorities).

114 Registration of local authorities

(1) The Secretary of State may by order—

(a) repeal section 113, or

(b) amend it so as to permit the registration of specified classes of local authority.

(2) The Secretary of State may by order require the regulator to register—

(a) a specified local authority, or

(b) a specified class of local authority.

(3) Registration under subsection (2)—

(a) takes effect in accordance with any provision of the order about timing or other procedural or incidental matters,

(b) does not require an application for registration, and

(c) may apply to a local authority whether or not it is eligible for registration by virtue of subsection (1).

(4) If the Secretary of State thinks it necessary or desirable in connection with the registration of local authorities, the Secretary of State may by order—

(a) provide for a provision of this Part or any other enactment not to apply in relation to registered local authorities;

(b) provide for a provision of this Part or any other enactment to apply with specified modifications in relation to registered local authorities;

(c) amend a provision of this Part or any other enactment.

(5) In this section—

(a) “local authority” means an authority or person to whom section 113 applies or has applied, and

(b) “registered local authorities” means authorities or persons who are registered, registrable or to be registered as a result of an order under subsection (1) or (2) above.

(6) Before making an order under this section the Secretary of State shall consult—

(a) any authority or person likely to be affected by it, and

(b) such other persons as the Secretary of State thinks fit.

115 Profit-making and non-profit organisations

(1) Each entry in the register shall designate the body registered as either—

(a) a non-profit organisation, or

(b) a profit-making organisation.

(2) A body is a non-profit organisation if it is a registered or non-registrable charity.

(3) A body is also a non-profit organisation if it satisfies the following conditions.

(4) Condition 1 is that the body—

(a) does not trade for profit, or

(b) is prohibited by its constitution from issuing capital with interest or dividend at a rate exceeding that prescribed under section 1(1)(b) of the Housing Associations Act 1985 (c. 69).

(5) Condition 2 is that a purpose of the body is the provision or management of housing.

(6) Condition 3 is that any other purposes of the body are connected with or incidental to the provision of housing.

(7) The Secretary of State may make regulations providing that a specified purpose is to be, or not to be, treated as connected with or incidental to the provision of housing.

(8) A body which is not a non-profit organisation under subsection (2) or (3) is a profit-making organisation.

(9) If the regulator thinks that what was a profit-making organisation has become a non-profit organisation, the regulator must change the registered designation accordingly.

Procedure

116 Entry

(1) The regulator shall register anyone who—

(a) is eligible for registration, and

(b) applies to be registered.

(2) The regulator may make provision about—

(a) the form of an application;

(b) the information to be contained in it or provided with it;

(c) the manner in which an application is to submitted;

(d) the consequences of failure to comply with provision under paragraphs (a) to (c).

(3) This section is subject to section 117 (fees).

(4) Once entered a body remains registered unless and until removed under section 118 or 119.

(5) It shall be presumed for all purposes that a person entered in the register is eligible for registration while the registration lasts (irrespective of whether and why the person is later removed from the register).

117 Fees

(1) The regulator may make initial registration conditional upon payment of a fee.

(2) The regulator may make continued registration conditional upon payment of an annual fee.

(3) The regulator shall—

(a) prescribe the amount of a fee, and

(b) make provision about the periods during which and in respect of which annual fees are payable.

(4) The regulator may set different fees, and make different provision, for different cases or circumstances.

(5) Fees must be set in accordance with principles which the regulator prepares and publishes and which are designed to ensure that so far as is reasonably practicable—

(a) fee income matches expenditure on the performance of functions,

(b) each fee is reasonable and proportionate to the costs to which it relates, and

(c) actual or potential registered providers can see the relationship between the amount of a fee and the costs to which it relates.

(6) The principles—

(a) shall provide for section 95(3) to be disregarded for the purpose of subsection (5)(a), and

(b) may provide for specified expenditure or potential expenditure under section 95 or otherwise to be disregarded for the purpose of subsection (5)(a).

(7) Principles do not have effect until approved by the Secretary of State.

(8) In preparing (or revising) the principles the regulator shall consult persons appearing to the regulator to represent the interests of fee-payers.

(9) The regulator’s accounts shall show—

(a) fees received, and

(b) fees outstanding.

118 De-registration: compulsory

(1) The regulator may remove from the register a body which the regulator thinks—

(a) is no longer eligible for registration,

(b) has ceased to carry out activities, or

(c) has ceased to exist.

(2) Before removing a body under subsection (1)(a) or (b) the regulator must—

(a) take all reasonable steps to give the body at least 14 days' notice, and

(b) consider any representations it makes in that period.

(3) After removing a body under subsection (1)(a) or (b) the regulator must take all reasonable steps to notify the body.

119 De-registration: voluntary

(1) A registered provider may ask the regulator to remove it from the register.

(2) The regulator may comply with a request—

(a) on the grounds that the registered provider no longer is or intends to be a provider of social housing in England,

(b) on the grounds that the registered provider is subject to regulation by another authority whose control is likely to be sufficient, or

(c) on the grounds that the registered provider meets any relevant criteria for de-registration set by the regulator.

(3) Before deciding whether or not to comply, the regulator must consult such local authorities in whose area the registered provider acts as it thinks appropriate.

(4) The regulator shall not comply with a request by a non-profit registered provider if it thinks that removal is sought with a view to enabling the registered provider to distribute assets to members.

(5) In deciding whether or not to comply, the regulator must (in particular) have regard to—

(a) any conditions imposed in connection with disposal consents given to the registered provider under Chapter 5, and

(b) any conditions imposed in connection with financial assistance given to the registered provider under any enactment.

(6) Having decided whether or not to remove the registered provider the regulator must notify—

(a) the provider, and

(b) any authority consulted.

(7) The regulator shall publish criteria set for the purposes of subsection (2)(c).

120 Notice

(1) As soon as is reasonably practicable after registering or de-registering a body the regulator shall notify—

(a) in the case of a registered charity, the Charity Commission,

(b) in the case of an industrial and provident society, the Financial Services Authority, and

(c) in the case of a registered company (whether or not also a registered charity), the registrar of companies for England and Wales.

(2) A notice of registration shall specify whether the person registered is designated as a non-profit or profit-making organisation.

(3) If the designation changes, the regulator shall notify any person notified of the registration.

(4) A person to whom notice is given under this section must keep a record of it.

121 Appeal

(1) A body may appeal to the High Court against a decision of the regulator—

(a) to refuse to register it,

(b) to de-register it, or

(c) to refuse to de-register it.

(2) The regulator shall not de-register a body while an appeal is pending.

(3) The Secretary of State may by order provide for the First-tier Tribunal to have jurisdiction under this section instead of the High Court.

Chapter 4 Registered providers

General provisions

122 Payments 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.

123 Disposal of property

Chapter 5 makes provision about disposal of property.

124 Complaints

(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—

“General provision about orders

12 Section 52 shall apply to an order of the Secretary of State under this Schedule (with any necessary modifications).”

125 Voluntary 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.

126 Sustainable 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.

Accounts

127 Directions

(1) The regulator may give directions to registered providers about the preparation of their accounts.

(2) A direction may be given to a profit-making registered provider only in so far as its accounts relate to social housing activities.

(3) The power must be exercised with a view to ensuring that accounts—

(a) are prepared in proper form, and

(b) present a true and fair view of—

(i) the state of affairs of each registered provider in relation to its social housing activities, and

(ii) the disposition of funds and assets which are, or have been, in its hands in connection with those activities.

(4) A direction may require a registered charity to use a specified method for distinguishing in its accounts between—

(a) matters relating to its social housing activities, and

(b) other matters.

(5) A direction—

(a) may make provision that applies generally or only to specified cases, circumstances or registered providers, and

(b) may make different provision for different cases, circumstances or registered providers.

(6) A direction that relates to more than one registered provider may be given only after consulting one or more bodies appearing to the regulator to represent the interests of registered providers.

(7) The regulator shall make arrangements for bringing a direction to the attention of every registered provider to which it applies.

128 Submission to regulator

(1) Each registered provider shall send a copy of its accounts to the regulator within the period of 6 months beginning with the end of the period to which the accounts relate.

(2) The accounts must be accompanied by—

(a) an auditor’s report, or

(b) in the case of accounts that by virtue of an enactment are not subject to audit, any report that is required to be prepared in respect of the accounts by virtue of an enactment.

(3) The report must specify whether the accounts comply with any relevant directions under section 127.

129 Companies exempt from audit

(1) This section applies in relation to a registered provider which—

(a) is a registered company other than a charity, and

(b) is exempt from the audit requirements of the Companies Act 2006 (c. 46) by virtue of section 477 of that Act (small companies' exemption).

(2) The directors of the company shall cause a report to be prepared in accordance with section 130 and made to the company’s members in respect of the company’s individual accounts for any year in which the company takes advantage of its exemption from audit.

(3) “Individual accounts” has the same meaning as in section 396 of the Companies Act 2006.

130 Exempt companies: accountant’s report

(1) The report required by section 129 must be prepared by a person (“the reporting accountant”) who is eligible under section 131.

(2) The report must state whether the individual accounts are in accordance with the company’s accounting records kept under section 386 of the Companies Act 2006.

(3) On the basis of the information contained in the accounting records the report must also state whether—

(a) the accounts comply with Part 15 of the Companies Act 2006;

(b) the company is entitled to exemption from audit under section 477 of that Act (small companies' exemption) for the year in question.

(4) The report must give the name of the reporting accountant and be signed and dated.

(5) The report must be signed—

(a) where the reporting accountant is an individual, by that individual, and

(b) where the reporting accountant is a firm, for and on behalf of the firm by an individual authorised to do so.

(6) In this section and sections 131 and 132 “firm” has the meaning given by section 1173(1) of the Companies Act 2006.

131 Exempt companies: reporting accountant

(1) A person is eligible for appointment by a company as a reporting accountant under section 130 if—

(a) either of the following conditions is satisfied, and

(b) the person would not be prohibited from acting as auditor of the company by virtue of section 1214 of the Companies Act 2006 (c. 46).

(2) Condition 1 is satisfied if the person is a member of a body listed in subsection (4) and under its rules—

(a) the person is entitled to engage in public practice, and

(b) is not ineligible for appointment as a reporting accountant.

(3) Condition 2 is satisfied if the person—

(a) is subject to the rules of a body listed in subsection (4) in seeking appointment or acting as a statutory auditor under Part 42 of the Companies Act 2006, and

(b) under those rules, is eligible for appointment as a statutory auditor under that Part.

(4) The bodies mentioned in subsections (2) and (3) are—

(a) the Institute of Chartered Accountants in England and Wales,

(b) the Institute of Chartered Accountants of Scotland,

(c) the Institute of Chartered Accountants in Ireland,

(d) the Association of Chartered Certified Accountants,

(e) the Association of Authorised Public Accountants,

(f) the Association of Accounting Technicians,

(g) the Association of International Accountants,

(h) the Chartered Institute of Management Accountants, and

(i) the Institute of Chartered Secretaries and Administrators.

(5) The Secretary of State may by order amend the list of bodies in subsection (4).

(6) References in this section to the rules of a body are to rules (whether or not laid down by the body itself) which the body has power to enforce and which are relevant for the purposes of Part 42 of the Companies Act 2006 (statutory auditors) or this section; and this includes rules relating to the admission and expulsion of members of the body so far as relevant for the purposes of that Part or this section.

(7) An individual or a firm may be appointed as a reporting accountant; and section 1216 of the Companies Act 2006 applies to the appointment of a partnership constituted under the law of—

(a) England and Wales,

(b) Northern Ireland, or

(c) any other country or territory in which a partnership is not a legal person.

132 Application of Companies Act

(1) The provisions of the Companies Act 2006 listed in subsection (2) apply to the reporting accountant and a reporting accountant’s report as they apply to an auditor of the company and an auditor’s report on the company’s accounts (with any necessary modifications).

(2) The provisions are—

(a) sections 423 to 425 (duty to circulate copies of annual accounts),

(b) sections 431 and 432 (right of member or debenture holder to demand copies of accounts),

(c) sections 434 to 436 (requirements in connection with publication of accounts),

(d) sections 441 to 444A (duty to file accounts with registrar of companies),

(e) section 454(4)(b) and regulations made under that provision (functions of auditor in relation to revised accounts),

(f) sections 499 to 502 (auditor’s right to information), and

(g) sections 505 and 506 (name of auditor to be stated in published copies of report).

(3) In sections 505 and 506 as they apply by virtue of this section in a case where the reporting accountant is a firm, any reference to the senior statutory auditor shall be read as a reference to the person who signed the report on behalf of the firm.

133 Exempt companies: extraordinary audit

(1) This section applies where, in accordance with section 129, a company appoints a reporting accountant to prepare a report in respect of its accounts for any year.

(2) The regulator may require the company to—

(a) cause a qualified auditor to audit its accounts and balance sheet for that year, and

(b) send a copy of the report to the regulator by a specified date.

(3) A requirement may not be imposed before the end of the financial year to which it relates.

(4) “Qualified auditor”, in relation to a company, means a person who—

(a) is eligible for appointment as a statutory auditor of the company under Part 42 of the Companies Act 2006 (c. 46) (statutory auditors), and

(b) is not prohibited from acting as statutory auditor of the company by virtue of section 1214 of that Act (independence requirement).

134 Non-audited industrial and provident society

(1) This section applies to a registered provider which is an industrial and provident society.

(2) Section 9A of the Friendly and Industrial and Provident Societies Act 1968 (c. 55) applies to the society as if subsection (1)(b) were omitted (accountant’s report required only where turnover exceeds specified sum).

(3) The regulator may require the society to—

(a) appoint a qualified auditor to audit the society’s accounts and balance sheet for any year of account in respect of which section 4 of the Friendly and Industrial and Provident Societies Act 1968 (audit requirements) has been disapplied (see section 4A of that Act), and

(b) send a copy of the auditor’s report to the regulator by a specified date.

(4) A requirement under subsection (3) may be imposed only during the year of account following the year to which the accounts relate.

(5) In this section—

• “qualified auditor” means a person who is a qualified auditor for the purposes of Friendly and Industrial and Provident Societies Act 1968 (c. 55), and

• “year of account” has the meaning given by section 21(1) of that Act.

135 Charity

(1) This section applies to a non-profit registered provider which is a registered charity.

(2) The charity shall—

(a) keep proper accounting records of its transactions and its assets and liabilities in relation to its housing activities, and

(b) maintain a satisfactory system of control of those records, its cash holdings and its receipts and remittances in relation to those activities.

(3) For each period of account the charity shall prepare—

(a) a revenue account giving a true and fair view of the charity’s income and expenditure during the period, so far as relating to its housing activities, and

(b) a balance sheet giving a true and fair view of the state of affairs of the charity as at the end of the period.

(4) The revenue account and balance sheet must be signed by at least two directors or trustees.

(5) “Period of account” means—

(a) a period of 12 months, or

(b) such other period not less than 6 months nor more than 18 as the charity may, with the consent of the regulator, determine.

(6) This section does not affect any obligation under sections 41 to 45 of the Charities Act 1993 (c. 10) (charity accounts).

136 Charity: audit

(1) This section applies in relation to the accounts of a charity under section 135(3).

(2) If Condition 1 or 2 is met, the charity shall cause a qualified person to audit the accounts and report on them in accordance with section 137.

(3) If neither Condition is met, the charity shall cause a qualified person (“the reporting accountant”) to report on the accounts in accordance with section 138.

(4) Condition 1 is met if the accounts relate to a period during which the charity’s gross income arising in connection with its housing activities was greater than the sum specified in section 43(1)(a) of the Charities Act 1993.

(5) Condition 2 is met if—

(a) the accounts relate to a period during which the charity’s gross income arising in connection with its housing activities was greater than the accounts threshold as defined by section 43(1) of the Charities Act 1993, and

(b) at the end of the period the aggregate value of its assets (before deduction of liabilities) in respect of its housing activities was greater than the sum specified in section 43(1)(b).

(6) “Gross income” has the same meaning as in section 43 of the Charities Act 1993 (c. 10).

(7) “Qualified person” means a person professionally qualified as an accountant.

137 Charity: auditor’s report

(1) An auditor appointed for the purposes of section 136(2) or 139(2) in respect of a charity’s accounts shall make a report to the charity in accordance with this section.

(2) The report must state—

(a) whether the revenue account gives a true and fair view of the charity’s income and expenditure, so far as relating to its housing activities, and

(b) whether the balance sheet gives a true and fair view of the state of affairs of the charity as at the end of the period to which the accounts relate.

(3) The report must give the name of the auditor and be signed.

(4) The auditor shall, in preparing the report, carry out such investigations as are necessary to form an opinion as to—

(a) whether the charity has complied with section 135(2) during the period to which the accounts relate, and

(b) whether the accounts are in accordance with accounting records kept under section 135(2)(a).

(5) If the auditor thinks that the charity has not complied section 135(2) or that the accounts are not in accordance with its accounting records, that must be stated in the report.

(6) If the auditor fails to obtain all the information and explanations which the auditor thinks necessary for the purposes of the audit, that must be stated in the report.

138 Charity: accountant’s report

(1) A reporting accountant appointed for the purposes of section 136(3) in respect of a charity’s accounts shall make a report to the charity in accordance with this section.

(2) The report must state whether the accounts are in accordance with accounting records kept under section 135(2)(a).

(3) On the basis of the information in the accounting records the report must also state whether—

(a) the accounts comply with the requirements of the Charities Act 1993;

(b) section 136(3) applied in respect of the accounts.

(4) The report must give the name of the reporting accountant and be signed.

(5) If the reporting accountant fails to obtain all the information and explanations which the reporting accountant thinks necessary for the purposes of preparing the report, that must be stated in the report.

139 Charity: extraordinary audit

(1) This section applies where, in accordance with section 136(3), a charity appoints a reporting accountant to prepare a report in respect of any accounts.

(2) The regulator may require the charity to—

(a) cause a qualified person to audit the accounts and prepare a report on them in accordance with section 137, and

(b) send a copy of the report to the regulator by a specified date.

(3) A requirement under subsection (2) may be imposed only during the period of account following the period to which the accounts relate.

(4) In this section—

• “period of account” has the meaning given by section 135(5), and

• “qualified person” has the meaning given by section 136(7).

140 Charity: auditor’s powers

(1) This section applies to a person who is appointed by a charity for the purposes of section 136(2) or (3) or 139(2).

(2) The charity must grant the person access to its documents, if or in so far as they relate to its housing activities.

(3) An officer of the charity must provide such information or explanations as the person thinks necessary.

141 Offences

(1) A registered provider commits an offence if it fails, without reasonable excuse, to comply with—

(a) a direction under section 127,

(b) a provision listed in subsection (2), or

(c) a requirement imposed under a provision listed in subsection (3).

(2) The provisions referred to in subsection (1)(b) are—

(a) section 128;

(b) section 129;

(c) section 135;

(d) section 136.

(3) The provisions referred to in subsection (1)(c) are—

(a) section 133;

(b) section 134;

(c) section 139.

(4) If a registered provider fails to comply with a direction, provision or requirement mentioned in subsection (1) every officer of the registered provider is guilty of an offence.

(5) It is a defence for an officer to show that the officer did everything that could reasonably have been expected to ensure compliance by the registered provider.

(6) A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(7) Proceedings for an offence may be brought only by or with the consent of—

(a) the regulator, or

(b) the Director of Public Prosecutions.

142 High Court

(1) If a registered provider fails to comply with a direction, provision or requirement mentioned in section 141(1), the High Court may on the application of the regulator make an order for the purpose of remedying the failure.

(2) An order may include provision about costs.

143 Disclosure

(1) This section applies to information that a person has received while acting—

(a) as auditor of a registered provider, or

(b) as a reporting accountant in relation to a registered provider.

(2) The person may disclose the information to the regulator for a purpose connected with the regulator’s functions—

(a) despite any duty of confidentiality, and

(b) whether or not the regulator requests the information.

(3) The reference to disclosing information includes expressing an opinion on it.

(4) “Reporting accountant” means a person who is appointed to prepare a report which, by virtue of any enactment, has to be prepared in respect of accounts that are not subject to audit.

Insolvency etc.

144 Preparatory steps: notice

A step specified in the Table has effect only if the person specified has given the regulator notice.

145 Moratorium

(1) If a step specified in the Table below is taken in respect of a registered provider, a moratorium on the disposal of land by the provider begins.

(2) Where a step specified in the Table is taken in respect of a registered provider, the person specified must give the regulator notice as soon as is reasonably practicable.

(3) If the notice is not given the step is not invalidated (but the end of the moratorium depends on the notice being given — see section 146(2)).

(4) The regulator shall give the HCA a copy of any notice received under this section.

146 Duration of moratorium

(1) The moratorium begins when the step specified in section 145 is taken.

(2) The moratorium ends (unless extended or cancelled) with the period of 28 working days beginning with the day on which the regulator receives notice under section 145(2).

(3) During a moratorium the regulator may extend it (or further extend it) for a specified period, with the consent of each secured creditor of the registered provider whom the regulator is able to locate after making reasonable enquiries.

(4) If the regulator extends a moratorium it shall notify—

(a) the registered provider,

(b) any liquidator, administrator, administrative receiver or receiver appointed in respect of the registered provider or its land, and

(c) the HCA.

(5) During a moratorium the regulator may cancel it if satisfied that it is unnecessary to make proposals under section 152.

(6) Before cancelling a moratorium the regulator must consult the person who took the step that triggered it.

(7) When a moratorium ends the regulator shall give notice, and (except in the case of cancellation) an explanation of section 147, to—

(a) the registered provider, and

(b) such of its secured creditors as the regulator is able to locate after making reasonable enquiries.

(8) When a moratorium ends the regulator shall also give notice to the HCA.

(9) Taking a further step during a moratorium does not—

(a) start a new moratorium, or

(b) alter the existing moratorium’s duration.

147 Further moratorium

(1) This section applies if—

(a) a moratorium in respect of a registered provider ends otherwise than by cancellation, and

(b) a further step specified in section 145