PART 2 continued CHAPTER 4 continued
(1) The regulator may give financial or other assistance to a registered provider for the purpose of preserving its position pending the agreement of proposals.
(2) The regulator may give financial or other assistance to a registered provider, or a manager appointed under section 155, to facilitate the implementation of agreed proposals.
(3) In particular, the regulator may—
(a) lend staff;
(b) arrange payment of the manager’s remuneration and expenses.
(4) The regulator may do the following only with the Secretary of State’s consent—
(a) make grants,
(b) make loans,
(c) indemnify a manager,
(d) make payments in connection with secured loans, and
(e) guarantee payments in connection with secured loans.
(1) A registered provider may apply to the High Court where the registered provider thinks that action taken by a manager is not in accordance with the agreed proposals.
(2) A creditor of a registered provider may apply to the High Court where the creditor thinks that action taken by a manager is not in accordance with the agreed proposals.
(3) The High Court may—
(a) confirm, annul or modify an act of the manager;
(b) give the manager directions;
(c) make any other order.
(4) If a person bound by agreed proposals (P1) thinks that action by another person (P2) breaches section 154, P1 may apply to the High Court.
(5) The High Court may—
(a) confirm, annul or modify the action;
(b) grant relief by way of injunction, damages or otherwise.
(1) This section applies to a non-profit registered provider which is a registered company.
(2) A voluntary arrangement under Part 1 of the Insolvency Act 1986 (c. 45) in relation to the company is effective only if the regulator has first consented.
(3) An order under section 899 of the Companies Act 2006 (c. 46) (court sanction for compromise or arrangement)—
(a) is effective only if the regulator has first consented, and
(b) does not take effect until a copy of the consent is delivered to the registrar of companies.
(4) An order under section 900 of the Companies Act 2006 (powers of court to facilitate reconstruction or amalgamation) is effective only if the regulator has first consented.
(5) The requirement in section 900(6) of the Companies Act 2006 (sending copy of order to registrar) is satisfied only if the copy is accompanied by a copy of the regulator’s consent.
(1) This section applies to a non-profit registered provider which is a registered company.
(2) The registrar of companies may register a resolution under section 53 of the Industrial and Provident Societies Act 1965 (c. 12) for converting the company into an industrial and provident society only if—
(a) the regulator has consented to the resolution, and
(b) a copy of the consent accompanies the resolution as sent to the registrar.
(3) The regulator shall register the body created by the conversion and designate it as a non-profit organisation.
(4) Pending registration the body shall be treated as if it were registered and designated as a non-profit organisation.
(1) This section applies to a non-profit registered provider which is a registered company.
(2) A special resolution for the voluntary winding-up of the company under the Insolvency Act 1986 (c. 45) is effective only if the regulator has first consented.
(3) The requirement under section 30 of the Companies Act 2006 (c. 46) (sending copy of resolution to registrar) is satisfied only if the copy is accompanied by a copy of the regulator’s consent.
(1) This section applies to a non-profit registered provider which is an industrial and provident society.
(2) The Financial Services Authority may register a resolution passed by the society for the purposes of restructuring provisions listed in subsection (3) only if—
(a) the regulator has consented to the resolution, and
(b) a copy of the consent accompanies the resolution as sent to the Authority.
(3) The following provisions of the Industrial and Provident Societies Act 1965 (c. 12) are the restructuring provisions—
(a) section 50 (amalgamation of societies),
(b) section 51 (transfer of engagements between societies), and
(c) section 52 of that Act (conversion into or amalgamation with registered company).
(4) Where a resolution is registered in accordance with subsection (2), any body created or to whom engagements are transferred—
(a) must be registered by the regulator and designated as a non-profit organisation, and
(b) pending registration shall be treated as registered and designated as a non-profit organisation.
(1) This section applies to a non-profit registered provider which is an industrial and provident society.
(2) A resolution for the voluntary winding-up of the society under the Insolvency Act 1986 is effective only if the regulator has first consented.
(3) The requirement in section 30 of the Companies Act 2006 (c. 46) (as applied by section 55 of the Industrial and Provident Societies Act 1965 and section 84(3) of the Insolvency Act 1986) (sending copy of resolution to FSA) is satisfied only if the copy is accompanied by a copy of the regulator’s consent.
(1) This section applies to a non-profit registered provider which is—
(a) an industrial and provident society, and
(b) to be dissolved by instrument of dissolution in accordance with section 58 of the Industrial and Provident Societies Act 1965.
(2) The Financial Services Authority may register the instrument under section 58(5), or cause notice of the dissolution to be advertised under section 58(6), only if—
(a) the regulator has consented to the dissolution, and
(b) a copy of the consent accompanies the instrument as sent to the Authority.
(1) This section applies to a non-profit registered provider which is—
(a) a registered company, or
(b) an industrial and provident society.
(2) The regulator may present a petition for the registered provider to be wound up under the Insolvency Act 1986 (c. 45) on any of the following grounds.
(3) Ground 1 is that the registered provider is failing properly to carry out its objects.
(4) Ground 2 is that the registered provider is unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986.
(5) Ground 3 is that the regulator has directed the registered provider under section 253 to transfer all its land to another person.
(1) This section applies—
(a) where a non-profit registered provider which is an industrial and provident society is dissolved in accordance with section 55(a) or (b) of the Industrial and Provident Societies Act 1965 (c. 12), and
(b) where a non-profit registered provider which is a registered company is wound up under the Insolvency Act 1986.
(2) Any surplus property that is available after satisfying the registered provider’s liabilities shall be transferred—
(a) to the regulator, or
(b) if the regulator directs, to a specified non-profit registered provider.
(3) If land belonging to the registered provider needs to be sold to satisfy its liabilities, the regulator may discharge those liabilities so as to ensure that the land is instead transferred in accordance with subsection (2).
(4) Where the registered provider dissolved or wound up is a charity, a registered provider may be specified under subsection (2)(b) only if it is a charity whose objects the regulator thinks are similar to those of the original charity.
(5) This section has effect despite anything in—
(a) the Industrial and Provident Societies Act 1965,
(b) the Insolvency Act 1986,
(c) the Companies Act 2006 (c. 46), or
(d) the constitution of a registered provider.
(1) This section applies to property transferred to the regulator in accordance with section 167(2)(a).
(2) The regulator may dispose of the property only to a non-profit registered provider.
(3) Where the registered provider wound up or dissolved was a charity, the regulator may dispose of the property only to a registered provider—
(a) which is a charity, and
(b) whose objects the regulator thinks are similar to those of the original charity.
(4) If the property includes land subject to a mortgage or charge, the regulator may dispose of the land—
(a) subject to that mortgage or charge, or
(b) subject to a new mortgage or charge in favour of the regulator.
The Secretary of State may by regulations provide for sections 167 and 168 to apply in relation to a registered provider which is a charity but not a registered company—
(a) in specified circumstances, and
(b) with specified modifications.
This Chapter makes provision about the disposal of property by registered providers.
(1) A registered provider may dispose of land.
(2) But a non-profit registered provider may dispose of the landlord’s interest under a secure tenancy only to another non-profit registered provider.
(3) Subsection (1) is subject to the following provisions of this Chapter (which include provisions requiring the regulator’s consent for certain disposals).
(1) Disposal of a dwelling by a registered provider requires the regulator’s consent if the dwelling is social housing.
(2) The regulator shall not consent to a disposal by a non-profit registered provider which it thinks is being made with a view to enabling the provider to distribute assets to members.
(3) Consent is not required under this section if the disposal falls within an exception listed in section 173.
(1) This section lists exceptions to the requirement of consent in section 172.
(2) Exception 1 is that consent is not required for disposal by a registered provider by way of—
(a) an assured tenancy,
(b) an assured agricultural occupancy,
(c) an arrangement that would be an assured tenancy or an assured agricultural occupancy but for any of paragraphs 4 to 8, 12(1)(h) and 12ZA to 12B of Schedule 1 to the Housing Act 1988 (c. 50) (exclusions),
(d) a secure tenancy, or
(e) an arrangement that would be a secure tenancy but for any of paragraphs 2 to 12 of Schedule 1 to the Housing Act 1985 (c. 68) (exclusions).
(3) Exception 2 is that consent is not required for a disposal for which consent is required under—
(a) section 81 or 133 of the Housing Act 1988, or
(b) section 173 of the Local Government and Housing Act 1989 (c. 42).
(4) Exception 3 is that consent is not required for a disposal under Part V of the Housing Act 1985 (right to buy).
(5) Exception 4 is that consent is not required for a disposal in pursuance of a tenant’s right to acquire under—
(a) section 180, or
(b) section 16 of the Housing Act 1996 (c. 52) (tenant’s right to acquire social housing in Wales).
(1) Consent may be—
(a) general, or
(b) specific (whether as to particular registered providers, as to particular property, as to particular forms of disposal or in any other way).
(2) Consent may be retrospective.
(3) Consent may be expressed by reference to a policy for disposals submitted by a registered provider.
(4) Consent may be conditional.
(5) Before giving consent 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.
(6) Subsection (5) does not apply to specific consent relating only to one or more particular registered providers or properties.
(1) A purported disposal by a registered provider is void if—
(a) it requires the regulator’s consent, and
(b) the regulator has not given consent.
(2) But subsection (1) does not apply to a disposal by a non-profit registered provider to one or more individuals (“the buyer”) if—
(a) the disposal is of a single dwelling, and
(b) the registered provider reasonably believes at the time of the disposal that the buyer intends to use the property as the buyer’s principal residence.
(1) If a non-profit registered provider disposes of land other than a dwelling which is social housing it shall notify the regulator as soon as is reasonably practicable.
(2) The regulator may give a direction dispensing with the notification requirement.
(3) Section 174(1) and (3) to (6) applies to a direction under this section as it applies to consent under section 172.
(1) The accounts of a registered provider must show its net disposal proceeds, as a separate “disposal proceeds fund”.
(2) The following are net disposal proceeds—
(a) net proceeds of sale to a tenant in pursuance of the right to acquire conferred by section 180,
(b) net proceeds of sale to a tenant in pursuance of the right to acquire conferred by section 16 of the Housing Act 1996 (c. 52),
(c) net proceeds of sale of property in respect of which a grant was made under section 21 of that Act,
(d) net proceeds of sale of property in respect of which a grant was made under section 19 of this Act in respect of discounts given by a registered provider on disposals of dwellings to tenants,
(e) grant received under section 20 or 21 of the 1996 Act,
(f) grant received under section 19 of this Act in respect of discounts given by a registered provider on disposals of dwellings to tenants,
(g) repayments of discount in respect of which grant was received under section 20 or 21 of the 1996 Act,
(h) repayments of discount in respect of which grant was received under section 19 of this Act in respect of discounts given by a registered provider on disposals of dwellings to tenants,
(i) other proceeds of sale specified by the regulator, and
(j) other grants specified by the regulator.
(3) The regulator shall determine amounts to be deducted in determining net proceeds of sale.
(4) The method of constituting the disposal proceeds fund and showing it in the accounts shall be in accordance with a direction of the regulator.
(5) Subsections (5) to (7) of section 127 apply to a direction under this section as to a direction under that section.
(6) Sections 141 and 142 apply in relation to a direction under this section as in relation to a direction under section 127.
(7) Interest shall be added to the fund in accordance with a determination made by the regulator.
(8) Where this section applies in relation to the proceeds of sale arising on a disposal, section 32 above, section 27 of the Housing Act 1996 (c. 52) and section 52 of the Housing Act 1988 (c. 50) do not apply.
(1) Sums in a registered provider’s disposal proceeds fund may be used or allocated only in accordance with a direction by the regulator.
(2) The regulator may give a direction only with the Secretary of State’s approval.
(3) If at the end of a period specified by the regulator the disposal proceeds fund includes sums which have not been allocated in accordance with subsection (1), the regulator may require the registered provider to pay the sums to the HCA.
(1) The following provisions of the Housing Act 1996 apply in relation to disposals of social housing by registered providers, with the modifications set out below (and any other necessary modifications).
(2) The provisions are—
(a) sections 11 to 12 (repayment of discount on disposal),
(b) sections 12A and 12B (landlord’s right of first refusal),
(c) section 13 (disposal of property in National Park), and
(d) sections 14 and 15 (supplemental).
(3) In those provisions—
(a) references to a registered social landlord shall be treated as references to a registered provider,
(b) references to consent given by the Welsh Ministers under section 9 of the 1996 Act shall be treated as references to consent given by the regulator under section 172 of this Act,
(c) references to the Welsh Ministers in connection with a power to make orders or regulations shall be treated as references to the Secretary of State,
(d) in section 12(5)(b) of the 1996 Act the reference to the Welsh Ministers shall be treated as a reference to the HCA, and
(e) references to a resolution of the National Assembly for Wales shall be treated as references to a resolution of either House of Parliament.
(4) This section does not affect the continued application of the provisions listed in subsection (2) in relation to disposals made before this section comes into force.
(1) The tenant of a dwelling in England has a right to acquire the dwelling if—
(a) the landlord is a registered provider or a registered social landlord,
(b) the tenancy is within subsection (2),
(c) the provision of the dwelling was publicly funded,
(d) the dwelling has remained in the social rented sector ever since that provision, and
(e) the tenant satisfies any qualifying conditions applicable under Part V of the Housing Act 1985 (c. 68) (as it applies by virtue of section 184).
(2) A tenancy is within this subsection if it is—
(a) an assured tenancy, other than an assured shorthold tenancy or a long tenancy, or
(b) a secure tenancy.
(3) The reference in subsection (1)(a) to a registered provider includes—
(a) a person who provided the dwelling in fulfilment of a condition imposed by the HCA when giving assistance to the person;
(b) a person who provided the dwelling wholly or partly by means of a grant under section 27A of the Housing Act 1996 (c. 52).
(1) The provision of a dwelling was publicly funded if any of the following conditions is satisfied.
(2) Condition 1 is that—
(a) the dwelling was provided by a person in fulfilment of a condition imposed by the HCA when giving assistance to the person, and
(b) before giving the assistance the HCA notified the person that if it did so the provision of the dwelling would be regarded as publicly funded.
(3) Condition 2 is that the dwelling was provided wholly or partly by using sums in the disposal proceeds fund of—
(a) a registered provider, or
(b) a registered social landlord.
(4) Condition 3 is that —
(a) the dwelling was acquired by a registered provider, or a registered social landlord, on a disposal by a public sector landlord,
(b) the disposal was made on or after 1st April 1997, and
(c) at the time of the disposal the dwelling was capable of being let as a separate dwelling.
(5) Condition 3 is not satisfied if the dwelling was acquired in pursuance of a contract made, or option created, before 1st April 1997.
(6) Condition 4 is that—
(a) the dwelling was provided wholly or partly by means of a grant under section 18 or 27A of the Housing Act 1996 (c. 52), and
(b) when the grant was made the recipient was notified under section 16(4) of that Act that the dwelling was to be regarded as funded by means of such a grant.
(1) This section applies for the purposes of determining whether a dwelling has remained in the social rented sector.
(2) A dwelling shall be treated as having remained in the social rented sector for any period during which—
(a) the freeholder was a person within subsection (3), and
(b) each leaseholder was either a person within that subsection or an individual holding otherwise than under a long tenancy.
(3) A person is within this subsection if the person is—
(a) a registered provider,
(b) a registered social landlord, or
(c) a public sector landlord.
(4) A dwelling provided wholly or partly by means of a grant under section 27A of the Housing Act 1996 shall also be treated as having remained in the social rented sector for any period during which it was used exclusively for permitted purposes by—
(a) the recipient of the grant, or
(b) any person treated as the recipient by virtue of section 27B of that Act.
(5) “Permitted purposes” are purposes for which the grant was made and any other purposes agreed by the Housing Corporation or the HCA.
(6) Where a lease of a dwelling has been granted to a former freeholder in pursuance of paragraph 3 of Schedule 9 to the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) (mandatory leaseback to former freeholder on collective enfranchisement) the reference in subsection (1)(a) above to the freeholder shall be construed as a reference to the leaseholder under that lease.
(1) The definitions in this section apply to sections 180 to 182.
(2) The HCA gives “assistance” to a person if it—
(a) transfers housing or other land to the person,
(b) provides infrastructure to the person, or
(c) gives financial assistance to the person,
and for this purpose “infrastructure” has the same meaning as in Part 1.
(3) References to a “registered social landlord” are to a body which, at the time to which the reference relates, was a registered social landlord within the meaning of Part 1 of the Housing Act 1996 (c. 52) as it then had effect.
(4) “Leaseholder” does not include a mortgagee.
(5) “Long tenancy” has the same meaning as in Part V of the Housing Act 1985 (c. 68).
(6) A person provides a dwelling if the person—
(a) acquires, constructs, converts, improves or repairs housing or other land for use as a dwelling, or
(b) ensures such acquisition, construction, conversion, improvement or repair by another.
(7) “Public sector landlord” means anyone falling within section 80(1) of the Housing Act 1985.
(1) Section 17 of the Housing Act 1996 (right to acquire: supplemental) applies in relation to the right to acquire under section 180 of this Act with the modifications set out below.
(2) The modifications are as follows—
(a) references to the right to acquire under section 16 of the 1996 Act shall be treated as references to the right to acquire under section 180 of this Act,
(b) references to the Welsh Ministers shall be treated as references to the Secretary of State,
(c) the reference to registered social landlords shall be treated as a reference to registered providers, and
(d) the reference to a resolution of the National Assembly for Wales shall be treated as a reference to a resolution of either House of Parliament.