Office of Public Sector Information
PART 2 continued CHAPTER 7 continued
(1) Compensation shall be treated as a debt owed to the person to whom it is awarded.
(2) The Treasury may make regulations authorising the regulator—
(a) to award interest on compensation not paid during the period specified under section 240(2)(e);
(b) to award additional compensation where compensation is not paid during that period.
(3) Interest and additional compensation shall be treated as compensation.
(4) Regulations under subsection (2)(a) may provide for an interest rate to be—
(a) set by a specified person, or
(b) determined in accordance with the regulations.
A registered provider who is given a compensation notice may appeal to the High Court against—
(a) the award of compensation,
(b) its amount, or
(c) both.
This group of sections gives the regulator various powers in relation to the management and constitution of registered providers.
(1) This section applies if the regulator is satisfied that—
(a) a registered provider has failed to meet a standard under section 193 or 194, or
(b) the affairs of a registered provider have been mismanaged in relation to social housing.
(2) The regulator may require the registered provider to implement a process specified by the regulator for the purpose of—
(a) inviting persons to apply to undertake management functions of the registered provider, and
(b) selecting from the applications and making an appointment.
(3) A requirement may relate to—
(a) the registered provider’s affairs generally in so far as they relate to social housing, or
(b) specified affairs relating to social housing.
(4) A requirement must include—
(a) provision about the constitution of a selection panel (which must include provision for ensuring representation of tenants' interests),
(b) provision for ensuring best procurement practice, and
(c) provision about the terms and conditions on which the manager is to be appointed (including provision about—
(i) setting, monitoring and enforcing performance standards, and
(ii) resources).
(1) Before acting under section 247(2) the regulator must give the registered provider a notice—
(a) specifying grounds on which action might be taken under that section,
(b) warning the provider that the regulator is considering action under that section, and
(c) explaining the effect of this section.
(2) The notice must specify a period during which the registered provider may make representations to the regulator.
(3) The period must—
(a) be a period of at least 28 days, and
(b) begin with the date on which the registered provider receives the notice.
(4) The regulator must send a copy of a notice under subsection (1) to—
(a) the HCA, and
(b) any other persons it thinks appropriate (having regard, in particular, to any person who provided information as a result of which the notice is given).
(5) A notice under subsection (1) must—
(a) refer to section 125 (voluntary undertaking), and
(b) indicate whether or to what extent the regulator would accept a voluntary undertaking instead of, or in mitigation of, action under section 247(2).
(6) Notice under subsection (1) may be combined with notice under one or more of sections 230, 242, 250 and 252.
(7) In imposing a requirement the regulator must have regard to views of—
(a) relevant tenants,
(b) the registered provider,
(c) the HCA, and
(d) if the regulator thinks it appropriate, any relevant local housing authority.
(8) If the regulator imposes a requirement it must send a copy to the HCA.
(9) A registered provider may appeal to the High Court against a requirement under section 247(2).
(1) This section applies if as a result of an inquiry under section 206 or an audit under section 210 the regulator is satisfied that—
(a) the affairs of a registered provider have been mismanaged in relation to social housing, or
(b) a transfer of certain of a registered provider’s management functions would be likely to improve the management of some or all of its social housing.
(2) The regulator may require the registered provider to transfer management functions to a specified person.
(3) A requirement to transfer management functions may be imposed only with the Secretary of State’s consent (both as to the transfer and the terms).
(4) A requirement may relate to—
(a) the registered provider’s affairs generally in so far as they relate to social housing, or
(b) specified affairs relating to social housing.
(5) Transfer shall be on terms and conditions (including as to remuneration) specified in, or determined in accordance with, the requirement.
(6) A transferee manager shall have—
(a) any power specified in the requirement, and
(b) any other power in relation to the registered provider’s affairs required by the manager for the purposes specified in the requirement (including the power to enter into agreements and take other action on behalf of the registered provider).
(1) Before acting under section 249(2) the regulator must give the registered provider a notice—
(a) specifying grounds on which action might be taken under that section,
(b) warning the provider that the regulator is considering action under that section, and
(c) explaining the effect of this section.
(2) The notice must specify a period during which the registered provider may make representations to the regulator.
(3) The period must—
(a) be a period of at least 28 days, and
(b) begin with the date on which the registered provider receives the notice.
(4) The regulator must send a copy of a notice under subsection (1) to—
(a) the HCA, and
(b) any other persons it thinks appropriate (having regard, in particular, to any person who provided information as a result of which the notice is given).
(5) A notice under subsection (1) must—
(a) refer to section 125, and
(b) indicate whether or to what extent the regulator would accept a voluntary undertaking under that section instead of, or in mitigation of, action under section 249(2).
(6) Notice under subsection (1) may be combined with notice under one or more of sections 230, 242, 248 and 252.
(7) In imposing a requirement the regulator must have regard to views of—
(a) relevant tenants,
(b) the registered provider,
(c) the HCA, and
(d) if the regulator thinks it appropriate, any relevant local housing authority.
(8) If the regulator imposes a requirement it must send a copy to the HCA.
(9) A registered provider may appeal to the High Court against a requirement under section 249(2).
(1) This section applies if the regulator is satisfied that—
(a) a registered provider has failed to meet a standard under section 193 or 194, or
(b) the affairs of a registered provider have been mismanaged in relation to social housing.
(2) The regulator may—
(a) appoint an individual as a manager of the registered provider, or
(b) require the registered provider to appoint an individual as a manager.
(3) An appointment or requirement may relate to a manager—
(a) of the registered provider’s affairs generally in so far as they relate to social housing, or
(b) of specified affairs relating to social housing.
(4) Appointment shall be on terms and conditions (including as to remuneration) specified in, or determined in accordance with, the appointment or requirement.
(5) A manager shall have—
(a) any power specified in the appointment or requirement, and
(b) any other power in relation to the registered provider’s affairs required by the manager for the purposes specified in the appointment or requirement (including the power to enter into agreements and take other action on behalf of the registered provider).
(1) Before acting under section 251(2) the regulator must give the registered provider a notice—
(a) specifying grounds on which action might be taken under that section,
(b) warning the provider that the regulator is considering action under that section, and
(c) explaining the effect of this section.
(2) The notice must specify a period during which the registered provider may make representations to the regulator.
(3) The period must—
(a) be a period of at least 28 days, and
(b) begin with the date on which the registered provider receives the notice.
(4) The regulator must send a copy of a notice under subsection (1) to—
(a) the HCA, and
(b) any other persons it thinks appropriate (having regard, in particular, to any person who provided information as a result of which the notice is given).
(5) A notice under subsection (1) must—
(a) refer to section 125 (voluntary undertaking), and
(b) indicate whether or to what extent the regulator would accept a voluntary undertaking instead of, or in mitigation of, action under section 251(2).
(6) Notice under subsection (1) may be combined with notice under one or more of sections 230, 242, 248 and 250.
(7) The regulator must notify the HCA of an appointment or requirement under section 251(2).
(8) The regulator may require a manager to report to the regulator on the affairs specified in the appointment or requirement under section 251(3).
(9) A registered provider may appeal to the High Court against an appointment or requirement under section 251(2).
(1) This section applies if as a result of an inquiry under section 206 or an audit under section 210 the regulator is satisfied that—
(a) the affairs of a registered provider have been mismanaged in relation to social housing, or
(b) a transfer of land by a registered provider would be likely to improve the management of the land.
(2) The regulator may require the registered provider to transfer specified land—
(a) to the regulator, or
(b) to another specified registered provider.
(3) A requirement may be imposed on a profit-making registered provider only in relation to its social housing and associated land.
(4) For the purposes of subsection (3) land is associated with social housing if the regulator thinks that it is used in connection with the social housing or its management.
(5) A requirement may not be imposed on a non-profit registered provider requiring it to transfer land to a profit-making registered provider.
(6) A requirement may not be imposed on a registered charity.
(7) A requirement may be imposed on a charity which is not registered (C1), but only for transfer to another charity (C2) whose objects the regulator thinks are similar to those of C1.
(1) A transfer under section 253 shall be on terms specified in, or determined in accordance with, the requirement.
(2) The price shall be not less than an amount certified by the district valuer as the amount the property would fetch if sold by a willing seller to another registered provider.
(3) The terms shall include provision as to the payment of any debts or liabilities in respect of the land (whether or not secured on it).
(4) A requirement to transfer land may be imposed only with the Secretary of State’s consent (both as to the transfer and the terms).
(5) Where land is transferred to the regulator under section 253(2)(a)—
(a) the regulator may dispose of it only to a registered provider, and
(b) if it is transferred by a non-profit registered provider, the regulator may dispose of it only to a non-profit registered provider.
(1) This section applies if as a result of an inquiry under section 206 or an audit under section 210 the regulator is satisfied that—
(a) the affairs of a non-profit registered provider which is an industrial and provident society have been mismanaged in relation to social housing, or
(b) the management of social housing owned by a non-profit registered provider which is an industrial and provident society would be improved if the provider were amalgamated with another industrial and provident society.
(2) The regulator may make and execute on behalf of the society an instrument providing for the amalgamation of the society with another industrial and provident society.
(3) The regulator may act under subsection (2) only with the Secretary of State’s consent.
(4) An instrument providing for the amalgamation of a society (“S1”) with another has the same effect as a resolution by S1 under section 50 of the Industrial and Provident Societies Act 1965 (c. 12) (amalgamation of societies by special resolution).
(5) A copy of an instrument shall be sent to and registered by the Financial Services Authority.
(6) An instrument does not take effect until the copy is registered.
(7) The copy must be sent for registration during the period of 14 days beginning with the date of execution; but a copy registered after that period is valid.
(8) Any body created by virtue of an amalgamation—
(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) The regulator may make an order under this section if—
(a) an inquiry under section 206 is in progress in respect of a non-profit registered provider, and
(b) either of the following cases applies.
(2) Case 1 applies if the regulator has reasonable grounds for believing—
(a) that the affairs of the registered provider have been mismanaged, and
(b) that the interests of tenants of the registered provider, or its assets, require protection.
(3) Case 2 applies if as a result of an inquirer’s interim report under section 207 the regulator is satisfied that the affairs of the registered provider have been mismanaged.
(4) The regulator may order a bank or other person who holds money or securities on behalf of the registered provider not to part with the money or securities without the regulator’s consent.
(5) The regulator may make an order restricting—
(a) the transactions that may be entered into by the registered provider, or
(b) the nature and amounts of payments that may be made by it.
(6) An order under subsection (5) may in particular provide that transactions may not be entered into or payments made without the regulator’s consent.
(7) The regulator may make an order in respect of a registered provider that is a registered charity only if it has received public assistance.
(8) An order ceases to have effect at the end of the period of 6 months beginning with the day on which the inquirer’s final report under section 207 is made.
(9) But the regulator—
(a) may revoke the order before that time;
(b) may by order extend it for a specified period of up to 6 months.
(1) This section applies if as a result of an inquiry under section 206 or an audit under section 210 the regulator is satisfied that the affairs of a non-profit registered provider have been mismanaged.
(2) The regulator may order a bank or other person who holds money or securities on behalf of the registered provider not to part with the money or securities without the regulator’s consent.
(3) The regulator may make an order restricting—
(a) the transactions that may be entered into by the registered provider, or
(b) the nature and amounts of payments that may be made by it.
(4) An order under subsection (3) may in particular provide that transactions may not be entered into or payments made without the regulator’s consent.
(5) The regulator may make an order in respect of a registered provider that is a registered charity only if it has received public assistance.
(6) An order under this section has effect until revoked by the regulator.
(1) Before making an order under section 256 or 257 the regulator must take all reasonable steps to give notice to—
(a) the registered provider, and
(b) in the case of an order under section 256(4) or 257(2), the person to whom the order is directed.
(2) Contravention of an order under section 256(4) or 257(2) is an offence.
(3) A person guilty of an offence is liable on summary conviction to a fine not exceeding level 5 on the standard scale.
(4) Proceedings for an offence may be brought only by or with the consent of—
(a) the regulator, or
(b) the Director of Public Prosecutions.
(1) The regulator may make an order under this section if—
(a) an inquiry under section 206 is in progress in respect of a non-profit registered provider, and
(b) either of the following cases applies.
(2) Case 1 applies if the regulator has reasonable grounds for believing—
(a) that the affairs of the registered provider have been mismanaged, and
(b) that the interests of tenants of the registered provider, or its assets, require protection.
(3) Case 2 applies if as a result of an inquirer’s interim report under section 207 the regulator is satisfied that the affairs of the registered provider have been mismanaged.
(4) The regulator may by order suspend any officer, employee or agent of the registered provider who it thinks has contributed to the failure or mismanagement.
(5) The regulator may suspend an officer, employee or agent of a registered charity only if the charity has received public assistance.
(6) An order ceases to have effect at the end of the period of 6 months beginning with the day on which the inquirer’s final report under section 207 is made.
(7) But the regulator may revoke an order before the end of that period.
(8) The regulator shall notify the Charity Commission if it suspends an officer, employee or agent of a registered charity.
(1) This section applies if as a result of an inquiry under section 206 or an audit under section 210 the regulator is satisfied that the affairs of a non-profit registered provider have been mismanaged.
(2) The regulator may by order remove any officer, employee or agent of the registered provider who it thinks has contributed to the failure or mismanagement.
(3) Pending a decision whether to remove an officer, employee or agent, the regulator may by order suspend the person for a specified period of up to 6 months.
(4) The regulator may remove or suspend an officer, employee or agent of a registered charity only if the charity has received public assistance.
(5) Before making an order the regulator must take all reasonable steps to give at least 14 days' notice to—
(a) the person, and
(b) the registered provider.
(6) The regulator shall notify the Charity Commission if it removes or suspends an officer, employee or agent of a registered charity.
(1) This section applies where the regulator suspends an officer, employee or agent of a registered provider under section 259 or 260.
(2) The regulator may give directions to the registered provider about—
(a) the performance of the suspended person’s functions, and
(b) any other matter arising from the suspension.
(3) The regulator may appoint a person to perform the suspended person’s functions.
(1) A person is disqualified from acting as an officer of a registered provider if the person has been removed under—
(a) section 260, or
(b) paragraph 24(2)(a) of Schedule 1 to the Housing Act 1996 (c. 52), section 30(1)(a) of the Housing Associations Act 1985 (c. 69) or section 20(1)(a) of the Housing Act 1974 (c. 44) (other similar provisions).
(2) The regulator may waive a disqualification either generally or in relation to a particular registered provider or class of registered providers.
(3) A waiver may be granted only on an application by the disqualified person.
(4) The regulator shall notify a person whose disqualification is waived.
(5) If a disqualified person acts as an officer of a registered provider, the person’s acts are not invalid by reason only of the disqualification.
(1) The regulator shall maintain a register of persons disqualified under section 262.
(2) The register must show details of any waivers.
(3) The regulator shall make the register available for inspection by the public.
(1) It is an offence for a person to act as an officer of a registered provider in respect of which the person is disqualified under section 262.
(2) A person guilty of an offence is liable—
(a) on summary conviction, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum or both;
(b) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine or both.
(3) Proceedings for an offence may be brought only by or with the consent of—
(a) the regulator, or
(b) the Director of Public Prosecutions.
(4) In relation to an offence committed before the commencement of section 282 of the Criminal Justice Act 2003 (c. 44) (short sentences) the reference in subsection (2)(a) to 12 months shall have effect as if it were a reference to 6 months.
(1) This section applies where the regulator is satisfied that a person—
(a) has acted as an officer of a registered provider in respect of which the person is disqualified under section 262, and
(b) in doing so, has received payments or other benefits from the registered provider.
(2) The regulator may require the person to repay the sum or, as the case may be, a specified amount representing the whole or part of the value of the benefit.
(3) If a person fails to comply with a requirement the registered provider may recover the sum or specified amount as a debt.
(1) The regulator may by order remove an officer of a non-profit registered provider if a Case listed in this section applies to the officer.
(2) Case 1 applies to a person who has been adjudged bankrupt.
(3) Case 2 applies to a person who has made an arrangement with creditors.
(4) Case 3 applies to a person who is subject to a disqualification order or a disqualification undertaking under the Company Directors Disqualification Act 1986 (c. 46) or equivalent legislation in Northern Ireland.
(5) Case 4 applies to a person who is subject to an order under section 429(2) of the Insolvency Act 1986 (c. 45) (disabilities on revocation of county court administration order).
(6) Case 5 applies to a person who is disqualified under section 72 of the Charities Act 1993 (c. 10) from being a charity trustee.
(7) Case 6 applies to a person who is incapable of acting by reason of mental disorder.
(8) Case 7 applies to a person who is impeding the proper management of the registered provider by reason of absence or failure to act.
Housing and Regeneration Act 2008