Section62:     Appeal against decision on registration or removal

102. This section provides an appeal mechanism for bodies who are aggrieved by a decision of the Scottish Ministers not to register it as a social landlord or to remove it or not remove it from the register. The appeal is to the Court of Session, and where the appeal is against the decision relating to the removal of a body from the register Ministers must not remove the body from the register until the appeals process is complete. Ministers must also give notice to the Financial Services Authority of any appeal against a decision relating to the removal of a body which is an industrial and provident society from the register.

Section63:     Regulation of registered social landlords

103. This section introduces schedule7, which makes detailed provision about the regulation of registered social landlords. The schedule is largely a restatement and updating of the provisions of the Housing Associations Act 1985 (most of which is repealed by paragraph 11 of

104. schedule 10). Parts 1 and 2 of schedule 7 include provisions which cover:

• the control of payments by a registered social landlord to members, officers and employees of the landlord;

• the constitution of registered social landlords, and changes to the rules of the registered social landlord;

• powers to remove members of the governing body or to appoint new members to the governing body;

• the amalgamation, dissolution, rearrangement or reconstruction of the registered social landlord; and,

• powers to deal with circumstances where a registered social landlord is being wound up or dissolved.

105. Part3 of schedule 7 allows the Scottish Ministers to lay down requirements as to accounts and audit arrangements for a registered social landlord. Part4 gives powers to Ministers to undertake an inquiry into the affairs of a registered social landlord and to take action following an inquiry or audit. Those powers include the power to direct the transfer of part or all of the land of a registered social landlord where Ministers are satisfied that there has been misconduct or mismanagement or where the management of its land would otherwise be improved.

Section64:     Insolvency etc

106. This section introduces schedule8, which makes provision about the insolvency of registered social landlords. These provisions effectively replicate the insolvency provisions currently in place in England and Wales. The key difference is the extension of the moratorium period from 28 to 56days.

Sections65 to 68: Disposal of land and related matters

107. These sections together set out the provisions governing registered social landlords who wish to dispose of land (including houses). "Disposal" is defined in section66(6).

Section65:     Power of registered social landlord to dispose of land

108. This section provides the basic power for a registered social landlord to dispose of land held by it, subject to sections 66 to 68 and 76 and schedules7 and 9, and without prejudice to tenants' right to buy.

Section66:     Consent required for disposal of land by registered social landlord

109. This section requires the consent of the Scottish Ministers for any disposal of land by a registered social landlord. Consent may be given generally or in particular circumstances. Before giving their consent, Ministers must have regard to the views expressed by those consulted - section68 and schedule 9 set out the circumstances in which consultation is to take place.

Section67:     Disposals not requiring consent

110. This section specifies those disposals which do not require the consent of the Scottish Ministers - principally the granting of a tenancy or the sale of a property under the right to buy. It includes a power for Ministers to specify further disposals which do not require their consent.

Section68:     Disposals of land: consultation with tenants

111. This section requires a registered social landlord to consult its tenants before making a disposal. There are exemptions from this requirement for certain categories of disposals: disposals which do not require consent under section66 (these are defined in section67); disposals covered by the alternative consultation arrangements in schedule9; and disposals of an interest by way of security for a loan.

Section69:     Inspections

112. This section gives the Scottish Ministers powers to carry out an inspection of the management of the affairs of a registered social landlord in relation to the provision of housing accommodation and related services. (The scope of this term is set out in section83.) An inspector has right of access at reasonable times to the premises of the registered social landlord and to any relevant document, and the landlord must ensure that the inspector is given all information, explanation or other facility which the inspector may reasonably require for the purposes of the inspection. It is a criminal offence not to comply with the requirement of an inspector without a reasonable excuse. This section mirrors the provisions of section72, which applies to inspections of local authorities' housing functions.

Section70:     Inspection reports

113. This section requires the Scottish Ministers to issue and publish a report of any inspection carried out under section 69, and to send a copy of it to the registered social landlord and any registered tenant organisation. The report must identify any ways in which the landlord's activities were found to be unsatisfactory. This section mirrors the provisions of section73, which apply to reports on local authorities' housing functions.

Section71:     Appointment of manager

114. This section allows the Scottish Ministers to appoint a special manager to a registered social landlord. They can either appoint a manager themselves or can require the landlord to appoint a manager. Ministers can make such an appointment to ensure that the management of the affairs by a registered social landlord is of an appropriate standard either generally or in relation to a particular matter, and they may specify which of the affairs of the landlord the manager is to manage. Subsection(2) allows Ministers to determine the period and terms and conditions for the appointment of the manager. The manager will have general powers to do what is necessary to fulfil their functions, and may also be given specific powers by Ministers.

CHAPTER 2 - LOCAL AUTHORITY HOUSING MANAGEMENT

Section72:     Inspections

115. This section provides powers for the Scottish Ministers to carry out an inspection of the exercise of the functions of a local authority in relation to the management of housing accommodation and the provision of related services. The provisions of this section mirror the provisions of section69, which applies to inspections of registered social landlords' housing activities.

Section73:     Inspection reports

116. This section requires the Scottish Ministers to issue and publish a report of an inspection carried out under section 72 and send a copy to the local authority and to any registered tenant organisation. The provisions mirror the provisions of section70, which applies to reports on registered social landlords' housing activities.

Section74:     Remedial plans

117. This section allows the Scottish Ministers to require a local authority to prepare and submit to them a remedial plan setting out the authority's proposals for dealing with matters which have been found to be unsatisfactory in an inspection report. Before requiring a local authority to submit a remedial plan, Ministers must send a draft requirement to the authority, specifying a period within which the authority may make comments to Ministers on the proposed requirement. Ministers must have regard to those comments before imposing any requirement on the local authority to produce a remedial plan. When a local authority has submitted a remedial plan, Ministers may approve it, reject it or approve it with modifications. They may also approve it and impose conditions as to its adoption and implementation by the authority. If a plan is approved by Ministers the authority must adopt and implement it in accordance with any conditions imposed. When a plan is rejected, the authority must prepare a revised plan and submit it to Ministers.

Section75:     Remedial plans: appointment of manager

118. This section empowers the Scottish Ministers to carry out an inspection of the implementation of a remedial plan, imposed under the previous section, by a local authority. Where, as a result of such an inspection, Ministers consider that the remedial plan is not being implemented satisfactorily, they may appoint a manager to exercise such functions of the authority as they specify. Such functions must be in relation to the management of housing accommodation and the provision of related services. Such a manager must not be appointed before consultation with the local authority, representative bodies of local authorities, and the Accounts Commission for Scotland, and Ministers must have regard to any comments received from those bodies before making an appointment of a manager. A manager is to be appointed on such terms and conditions and for such period as Ministers may determine. The manager has general powers necessary to carry out the functions imposed on them, and also has such specific powers as Ministers may specify.

CHAPTER 3 - COMMON PROVISIONS

Section76:     Disposals of tenanted houses: consultation and consent

119. This section, together with schedule9, sets out the duties of local authorities, registered social landlords and the Scottish Ministers in relation to consultation of tenants before a disposal which would result in a change of landlord. It includes a requirement to carry out a ballot of affected tenants before their houses are transferred into new ownership, and a duty on Ministers not to give their consent to such a transfer unless they are satisfied that a majority of those expressing a view in the ballot wish the disposal to proceed.

120. Subsection(2) provides that no tenanted property of a local authority or registered social landlord should be transferred to any landlord other than a registered social landlord, unless Ministers are satisfied that transfer to a registered social landlord is not appropriate.

Section77:     Power to obtain information

121. This section and section 78 make provision for the Scottish Ministers to have access to the information held by a registered social landlord or a local authority in connection with the management of housing accommodation and the provision of related services. Ministers can serve a notice on a person requiring the person to provide them or a person authorised by them with such information or documents as they may specify. Subsections(3) to (6) specify the persons on which a notice may be served: in general, no notice is to be served on an officer, member, employee or agent of the local authority or landlord unless a notice has previously been served on the local authority or landlord and has not been complied with or the information or documents are not believed to be in the possession of the local authority or landlord.

Section78:     Power to obtain information: further provision

122. This section contains supplementary provisions in relation to the power of the Scottish Ministers to obtain information under section77. It includes provisions relating to the disclosure of confidential information. It provides technical clarification of what is meant by a document and producing it, and entitles a person receiving documents under section77 to copy or make extracts of them. This section also makes it a criminal offence to fail to do anything necessary to provide information under section77, or to alter, suppress or destroy a document which a person may have been required to produce.

Section79:     Issue of guidance by the Scottish Ministers

123. This section gives the Scottish Ministers the power to issue guidance with respect to the management of housing accommodation and related services by local authorities and registered social landlords. Subsection(2) lists particular matters which guidance may cover. Before issuing any guidance, or revised guidance, Ministers must consult such persons as they think fit. Subsection(7) provides that any guidance issued under this section, under Part1 of the Act or under section37 of the Housing (Scotland) Act 1987 (homelessness), is relevant in determining whether or not there has been mismanagement by a local authority or a registered social landlord, or whether action needs to be taken to ensure a proper level of management.

Section80:     Code of good practice

124. This section places a duty on the Scottish Ministers to publish a code of practice at least once every 5years on the operation of regulation under this Part of the Act.

Section81:     Charges for regulatory functions of the Scottish Ministers

125. This section allows the Scottish Ministers to charge a local authority or registered social landlord an amount in respect of their expenses in exercising their regulatory functions in connection with the provision of housing accommodation and related services by the authority or landlord. Ministers are required to consult the authority or landlord before charging them.

CHAPTER 4 - INTERPRETATION OF PART 3

Section82:     Meaning of "subsidiary" and "associate"

126. This section defines terms which occur in this Part of the Act in relation to the provisions concerning the power to obtain information from registered social landlords.

Section83:     Interpretation of Part3

127. This section clarifies the meaning of certain terms which occur in this Part of the Act.

PART 4 - SCOTTISH HOMES

Section84:     Transfer of functions to the Scottish Ministers

128. This section transfers to the Scottish Ministers the functions currently exercised by Scottish Homes. Those functions are mainly the functions set out in Part1 of the 1988 Act, which is modified by paragraph 14 of schedule10 to the Act.

Section85:     Property and liabilities

129. Under this section the Scottish Ministers may make orders to deal with the transfer of Scottish Homes' property and liabilities either to them or to such other person as the order specifies, regardless of any pre-existing provision which would act to inhibit the transfer. Ministers may also under this section issue a certificate in order to provide conclusive evidence that a property or liability has or has not transferred.

Section86:     Transfer of staff

130. This section provides that the Scottish Ministers may make an order transferring the staff of Scottish Homes to the staff of the Scottish Administration. The terms and conditions of transferring staff will be determined by Ministers but, taken as a whole, must not be less favourable than those enjoyed by an individual employed by Scottish Homes immediately before the transfer. Subsections(3) and (4) are designed to provide protection to the staff that a transfer of employment under this section is not construed as a break in the continuity of their employment.

Section87:     Dissolution etc.

131. This section provides that Scottish Homes as a separate legal entity may be dissolved on a date set by the Scottish Ministers in an order. Ministers may also make an order to deal with any residual matters associated with the transfer of the functions, property, liabilities and staff of Scottish Homes and its dissolution. Provision made under this power may include retaining Scottish Homes in a residuary form to deal with issues arising from its winding up.

PART 5 - STRATEGIC HOUSING FUNCTIONS

Section 88:     Statement on Fuel Poverty

132. This section places a requirement on Scottish Ministers to publish a statement about the measures they and local authorities have taken and will be taking to ensure as far as is practicable that people do not live in fuel poverty. Subsection (2) specifies that the statement must include energy efficient measures. Subsections(3) and (4) specify that the statement must set a target date (a maximum of 15 years) and interim targets and provides for the statement to be reviewed, modified and republished. Subsection (5) makes provision for Scottish Ministers to consult interested persons before preparing or modifying the statement. Subsection (6) specifies that Scottish Ministers must at least once every 4 years publish a report on the measures detailed in the statement which have been completed.

Section 89:     Local housing strategies

133. This section entitles the Scottish Ministers to require a local authority to carry out an assessment of housing needs and provision, and the provision of related services, within the local authority's area for a given period. Subsection(2) specifies core factors that a local authority must include within its assessment; there is provision at subsection(2)(e) for this to include such other matters as Ministers may specify at the time of requiring an assessment.

134. In addition, a local authority is required to prepare, and submit to Ministers, a local housing strategy. The strategy must cover the exercise of the local authority's functions both on its own and in co-operation with registered social landlords and other bodies in its area with a view to ensuring the economic, efficient and effective provision of housing and related services in a way which, so far as is reasonably practicable, ensures that people do not live in fuel poverty. Subsection(7) requires that the strategy must also state how the local authority will comply with its duty to exercise its functions in a way which encourages equal opportunities and observes equal opportunity requirements. Provision is made for local authorities to produce, with the agreement of Ministers, joint strategies. Subsection(6) makes provision for Ministers to specify such matters as: the period to be covered by the strategy; the matters to be included in the strategy; the procedures and consultation processes to be followed in preparing the strategy; the form and manner of the production of the strategy and its accompanying documentation; and the time by which it must be submitted.

135. The Scottish Ministers must make such requirements of local authorities as are necessary to ensure that every local government area is included in a local housing strategy. The section places a duty upon local authorities to keep their strategy under review and provide information concerning the implementation of their strategies to Ministers upon their request; it also allows for a local authority to modify and resubmit a strategy.

Section90:     Grants for housing purposes

136. This section gives the Scottish Ministers powers to make grants to local authorities for housing purposes of such amount, and subject to such terms and conditions, as they see fit. This grant is intended to allow local authorities to fund registered social landlords and other bodies and existing arrangements will continue for funding expenditure on local authorities own stock. It will be possible, however, for grants to be paid in connection with relevant housing-related debt.

137. Subsection(3) establishes that grant payments in respect of housing related debt will be confined to the debt which would otherwise have been charged to the Housing Revenue Account (HRA) under the terms of paragraph3(a) of Schedule15 to the 1987 Act. The grant may be towards some or all of the following: the servicing of debt remaining on the HRA following a partial stock transfer; repayments in relation to servicing of debt following a whole stock transfer; debt repayments in respect of breakage costs resulting from the early repayment of debt; and the repayment of principal. Following a whole stock transfer an order, under section94(2), will remove the duty to keep a HRA.

138. Subsection (5) allows a local authority to enter into a management or agency agreement with the Scottish Ministers to enable Ministers to exercise the authority's functions in relation to some or all of the sums received by the authority under this section.

Section91:     Grants for housing support services

139. This section enables the Scottish Ministers to pay grants for housing support services to local authorities. Grants can be of such amount and subject to such terms and conditions as Ministers see fit. Provision is also made for Ministers to make regulations prescribing the types of service, and categories of accommodation, eligible for grant.

Section92:     Assistance for housing purposes

140. This section provides local authorities with the powers necessary to provide assistance, financial or otherwise, to registered social landlords and other persons for housing purposes and for preventing or alleviating homelessness, and to individuals for constructing and maintaining housing. Where assistance is provided by means of guarantees or indemnities, or from Housing Revenue Account resources, the authority needs to secure the consent of the Scottish Ministers. Assistance is also subject to regulations and guidance made by Ministers under section 93.

Section93:     Assistance for housing purposes: further provision

141. This section allows the Scottish Ministers to set out in regulations and in guidance provisions governing assistance from local authorities to registered social landlords and other persons (including individuals), and provides powers for local authorities to set terms and conditions on the grants that they themselves make. Subsection (5) allows Ministers to amend earlier legislation so as to ensure that assistance which could be given under this section does not conflict with or duplicate existing powers.

Section94:     Alteration of housing finance arrangements

142. This section enables the Scottish Ministers to change the housing finance arrangements of a local authority.

143. Where local authorities transfer ownership of their housing to another body, it will no longer be appropriate to retain the requirement on Ministers to estimate Housing Support Grant in respect of that authority. Similarly, if an authority's housing stock is transferred there is no need for them to continue to operate a Housing Revenue Account (HRA) under the terms of section203 of the 1987 Act. Subsections (1) and (2) therefore enable Ministers to disapply, by order, the relevant sections of the 1987 Act.

144. Subsection(3) establishes that, where a local authority holds land formerly held on the HRA, an order repealing the duty to keep a HRA under subsection(2) may also make provision about the holding of, and accounting for, such land. Subsection (4) directs that a local authority disposing of such land cannot do so for other than the best price reasonably obtainable, unless Ministers consent to alternative arrangements. Where such former HRA land is disposed of, subsections (5) and (6) allow for Ministers to direct that any receipt from the sale of the land be used to reduce any outstanding former HRA debt, or for some other housing related function.

Section 95:     Meaning of "fuel poverty"

145. This section sets a definition of a person living in fuel poverty and allows Scottish Ministers to make regulations to set out what the terms used in that definition mean (for example, what is meant by " a low income"). This section makes provision for consultation with appropriate bodies before making the regulations.

PART 6 - GRANTS FOR IMPROVEMENT, REPAIRS ETC.

Section96:     Extension of power to make improvement grants

146. This section amends section236 (power of local authorities to make improvement grants) of the Housing (Scotland) Act 1987.

147. Subsection(1) extends the works eligible for grant to include the provision of heating systems and insulation, replacement of unsafe electrical wiring and installation of mains-powered smoke detectors. Subsection(2) details more works in buildings in common ownership that may be eligible for grant. Subsection (3) amends the definition of a disabled person to bring it into line with the Disability Discrimination Act 1995.

148. Subsection(4) inserts a new section in the 1987 Act to the effect that, where improvement grant is applied for by a tenant, that tenant must have had responsibility for the works in respect of which grant is sought for 2 years previous to application. The new subsection also sets out the terms under which the Scottish Ministers are entitled to vary, by order, the works and cases eligible for grant.

Section97:     Application for grant

149. This section amends section237 of the 1987 Act to extend the information required upon application for a grant to include details of the income and financial circumstances of the applicant. This section also makes it a criminal offence for an applicant to make a fraudulent or misrepresentative application.

Section98:     Age of buildings eligible for grant

150. This section amends section240 of the 1987 Act with the effect that grant will normally only be paid in respect of houses provided 10 years or more prior to the date of an application for grant. There continues to be provision for grant to be paid in respect of newer housing, where the Scottish Ministers agree to a local authority's request for permission to do so.

Section99:     Applicant's contribution to expense of works

151. This section inserts a new section 240A in the 1987 Act with the effect that local authorities will be able to assess the appropriate level of contribution to works made by an applicant. Provision is made for the Scottish Ministers to make regulations concerning the assessment of the financial circumstances of an applicant or by reference to other criteria as Ministers think fit.

152. The section also enables an applicant to request a review of a decision of a local authority where, for example, the applicant believes the local authority has wrongly assessed the level of the applicant's contribution. The review is to be carried out by someone senior to the person who made the applicant's original assessment.

Section100:     Approval of application

153. This section amends section241 of the 1987 Act requiring local authorities to take account of the approved expense and the applicant's contribution in advising an applicant of the amount of grant approved.

Section101:     Amount of grant

154. This section amends section242 of the 1987 Act with the effect that the maximum limit of the approved expense of an improvement grant shall not exceed £20,000. This section provides that the amount of grant awarded shall be the approved expense minus the applicant's contribution.

155. Provision is also made for the Scottish Ministers to determine cases in which grants shall be paid as a percentage of the approved expense. These "minimum percentage grants" will be determined by order. In such cases a local authority will pay the minimum percentage grant or the amount referred to in paragraph 153 above, whichever is the greater.

156. This section also makes provision about successive awards of grant where an application for grant is made less than 10years after an earlier award. Such earlier award or awards are subtracted from the amount of grant awarded. Certain categories of work are exempt from this calculation. Those works include grants made in respect of works to provide standard amenities (under section244 of the 1987 Act), minimum percentage grants and works to adapt a house for a disabled person (as under section236 of the 1987 Act).