Localism Bill (HL Bill 71)

Localism BillPage 360

(b) the Secretary of State considers that there are special
circumstances that make it appropriate for the person to
receive compensation.

(5) The Secretary of State may require the HCA to pay the person such
5amount as the Secretary of State may decide.

92F Sub-committees of the Regulation Committee

(1) The Regulation Committee may establish one or more sub-
committees.

(2) A sub-committee may include persons who are not members of the
10Committee.

(3) The Secretary of State may require the HCA to pay such
remuneration and allowances as the Secretary of State may decide to
any person who—

(a) is a member of a sub-committee, but

(b) 15is not a member of the Committee.

(4) The HCA may dissolve a sub-committee.

92G Procedure of the Committee and its sub-committees

(1) The Regulation Committee may decide—

(a) its own procedure, and

(b) 20the procedure of any of its sub-committees.

(2) Subject to subsection (1), a sub-committee may decide its own
procedure.

(3) The validity of proceedings of the Committee or of any of its sub-
committees is not affected by—

(a) 25any vacancy in its membership,

(b) any defect in the appointment of a member, or

(c) any contravention of section 92H (members’ interests).

(4) In this section “procedure” includes quorum.

92H Members’ interests

(1) 30A member of the Regulation Committee who is directly or indirectly
interested in any matter arising at a meeting of the Committee must
disclose the nature of that interest to the meeting.

(2) A member of a sub-committee of the Committee who is directly or
indirectly interested in any matter arising at a meeting of the sub-
35committee must disclose the nature of that interest to the meeting.

(3) In a case within subsection (1) or (2)—

(a) the member must not take part in any deliberation or
decision about the matter if it is a contract or agreement of
any description, but

(b) 40may otherwise take part in any deliberation or decision about
the matter unless at least one-third of the other members at
the meeting decide that the interests disclosed might
prejudicially affect the member’s consideration of the matter.

92I Exercise of functions

(1) 45The Regulation Committee may delegate any of the functions of the
regulator to—

(a) any of its members,

(b) any of its sub-committees, or

(c) any member of staff of the HCA.

(2) 50A sub-committee of the Committee may delegate any function
conferred on it to any member of staff of the HCA.

(3) A power of the HCA that is a function of the regulator—

(a) may be exercised separately or together with, or as part of,
another such power;

(b) 55does not limit the scope of another such power.

92J Recommendations to HCA

(1) The Regulation Committee may make recommendations to the HCA
about the exercise of the HCA’s functions.

(2) The HCA must publish, in such manner as it thinks fit—

(a) 60a recommendation received from the Regulation Committee
under this section, and

(b) the HCA’s response to it.

(3) In this section the reference to the HCA’s functions does not include
the functions of the regulator.

Localism BillPage 361

Fundamental objectives

92K Fundamental objectives

(1) The regulator must perform its functions with a view to achieving (so
far as is possible)—

(a) 5the economic regulation objective, and

(b) the consumer regulation objective.

(2) The economic regulation objective is—

(a) to ensure that registered providers of social housing are
financially viable and properly managed, and perform their
10functions efficiently and economically,

(b) to support the provision of social housing sufficient to meet
reasonable demands (including by encouraging and
promoting private investment in social housing),

(c) to ensure that value for money is obtained from public
15investment in social housing,

(d) to ensure that an unreasonable burden is not imposed
(directly or indirectly) on public funds, and

(e) to guard against the misuse of public funds.

(3) The consumer regulation objective is—

(a) 20to support the provision of social housing that is well-
managed and of appropriate quality,

(b) to ensure that actual or potential tenants of social housing
have an appropriate degree of choice and protection,

Localism BillPage 362

(c) to ensure that tenants of social housing have the opportunity
to be involved in its management and to hold their landlords
to account, and

(d) to encourage registered providers of social housing to
5contribute to the environmental, social and economic well-
being of the areas in which the housing is situated.

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

(5) The regulator must exercise its functions in a way that—

(a) 10minimises interference, and

(b) (so far as is possible) is proportionate, consistent, transparent
and accountable.

27 In section 93(1) (the regulator: general functions) for “conferred on it by this
Part or another enactment” substitute “of the regulator”.

28 15Omit section 99 (the regulator: remuneration).

29 In section 100 (charging)—

(a) at the beginning insert “(1)”, and

(b) at the end of the subsection (1) so formed insert—

(2) The functions of billing for and receiving the payment of
20charges under this section are exercisable by the HCA rather
than by the HCA acting through its Regulation Committee.

30 Omit section 101 (the regulator: assistance by Secretary of State).

31 Omit section 102 (the regulator: borrowing).

32 Omit section 103 (the regulator: accounts).

33 25Omit section 104 (the regulator: financial year).

34 Omit section 105 (the regulator: co-operation with the HCA).

35 Omit section 106 (the regulator: direction to the HCA).

36 In section 112(4) (duty to consult before setting criteria for voluntary
registration) omit paragraph (a).

37 (1) 30Section 117 (the regulator: fees) is amended as follows.

(2) In subsection (5)(a) after “the performance of” insert “the regulator’s”.

(3) In subsection (9) for “regulator’s” substitute “HCA’s”.

(4) After that subsection insert—

(10) The functions of billing for and receiving the payment of fees under
35this section are exercisable by the HCA rather than by the HCA
acting through its Regulation Committee.

38 In section 145 (moratorium) omit subsection (4).

39 (1) Section 146 (duration of moratorium) is amended as follows.

(2) In subsection (4)—

(a) 40at the end of paragraph (a) insert “and”, and

Localism BillPage 363

(b) omit paragraph (c).

(3) Omit subsection (8).

40 In section 147(4) (further moratorium)—

(a) at the end of paragraph (a) insert “and”, and

(b) 5omit paragraph (c).

41 In section 174(5) (procedure for consent to disposal of social housing) omit
paragraph (a).

42 In section 196(1) (consultation on standards and codes of practice) omit
paragraph (f).

43 10In section 197(4) (direction by Secretary of State) omit paragraph (b).

44 In section 202 (inspections: supplemental) after subsection (7) insert—

(8) The functions of billing for and receiving the payment of fees under
this section are exercisable by the HCA rather than by the HCA
acting through its Regulation Committee.

45 15In section 216 (consultation on use of intervention powers) omit paragraph
(e).

46 In section 222 (notification of use of enforcement notice) omit paragraph (a).

47 In section 230(2) (pre-penalty warning) omit paragraph (a).

48 Omit section 232 (duty to notify HCA of penalty notice).

49 20In section 242(3) (pre-compensation warning) omit paragraph (a).

50 (1) Section 248 (supplemental provisions about management tenders) is
amended as follows.

(2) In subsection (4) omit paragraph (a).

(3) In subsection (7) omit paragraph (c).

(4) 25In subsection (8) omit paragraph (a).

51 (1) Section 250 (supplemental provisions about management transfers) is
amended as follows.

(2) In subsection (4) omit paragraph (a).

(3) In subsection (7) omit paragraph (c).

(4) 30In subsection (8) omit paragraph (a).

52 (1) Section 252 (supplemental provisions about appointment of managers) is
amended as follows.

(2) In subsection (4) omit paragraph (a).

(3) Omit subsection (7).

53 (1) 35The Table in section 276 (Part 2: index of defined terms) is amended as
follows.

(2) Omit the entry for “Appointed member”.

Localism BillPage 364

(3) In the entry for “Fundamental objectives” for “Section 86” substitute “Section
92K”.

(4) In the entry for “The regulator” for “Section 81” substitute “Section 92A”.

(5) In the entry for “The Regulator of Social Housing” for “Section 81” substitute
5“Section 92A”.

(6) Insert the following entries at the appropriate place—

The chair Section 92C”;
“External member Section 92C”;
“The internal member Section 92C.

54 (1) 10Schedule 1 (constitution of the Homes and Communities Agency) is
amended as follows.

(2) In paragraph 1 (appointment of membership) after sub-paragraph (4)
insert—

(5) A person who is an external member of the Regulation Committee
15(see section 92C) may not be appointed as a member of the HCA.

(3) After paragraph 17 insert—

18 The provisions in this Schedule about the HCA’s committees and
their sub-committees do not apply in relation to the Regulation
Committee or its sub-committees (as to which see in particular
20sections 92A to 92I).

Part 2 Amendments consequential on Part 1

Public Records Act 1958 (c. 51)Public Records Act 1958 (c. 51)

55 In Schedule 1 to the Public Records Act 1958 (definition of public records),
25in Part 2 of the Table at the end of paragraph 3 omit the entry for the Office
for Tenants and Social Landlords.

Parliamentary Commissioner Act 1967 (c. 13)Parliamentary Commissioner Act 1967 (c. 13)

56 In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments etc
subject to investigation) omit the entry for the Office for Tenants and Social
30Landlords.

House of Commons Disqualification Act 1975 (c. 24)House of Commons Disqualification Act 1975 (c. 24)

57 In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975
(bodies of which all members are disqualified) omit the entry for the Office
for Tenants and Social Landlords.

Localism BillPage 365

Race Relations Act 1976 (c. 74)Race Relations Act 1976 (c. 74)

58 In Schedule 1A to the Race Relations Act 1976 (bodies and other persons
subject to general statutory duty) omit paragraph 52 (the Office for Tenants
and Social Landlords).

5Freedom of Information Act 2000 (c. 36)Freedom of Information Act 2000 (c. 36)

59 In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public
authorities) omit the entry for the Office for Tenants and Social Landlords.

Part 3 Transfer of property, rights and liabilities

10Transfer of property, rights and liabilities

60 (1) The property, rights and liabilities to which the Office is entitled or subject
immediately before the commencement of this paragraph transfer to and
vest in the HCA.

(2) This paragraph has effect in spite of any provision (of whatever nature) that
15would otherwise prevent, penalise or restrict the transfer of the property,
rights or liabilities.

(3) In particular, it has effect regardless of a contravention, liability or
interference with an interest or right that would otherwise exist by reason of
such a provision having effect in relation to the terms on which the Office is
20entitled to the property or right, or subject to the liability, in question.

(4) A certificate by the Secretary of State that anything specified in the certificate
has vested in the HCA under this paragraph is conclusive evidence for all
purposes of that fact.

Employment contracts: transfer of rights and liabilities

61 (1) 25The rights and liabilities transferred by paragraph 60 include rights or
liabilities under a contract of employment.

(2) The Transfer of Undertakings (Protection of Employment) Regulations 2006
(S.I. 2006/246S.I. 2006/246) apply to the transfer by virtue of that paragraph of rights or
liabilities under a contract of employment (whether or not it is a relevant
30transfer for the purposes of those regulations).

Continuity

62 (1) The transfer of property, rights and liabilities by virtue of paragraph 60 does
not affect the validity of anything done (or having effect as if done) by or in
relation to the Office before the transfer takes effect.

(2) 35Anything that—

(a) is done (or has effect as if done) by or in relation to the Office for the
purposes of, or otherwise in connection with, anything transferred
by paragraph 60, and

(b) has effect immediately before the transfer date,

40is to be treated as done by or in relation to the HCA.

Localism BillPage 366

(3) There may be continued by or in relation to the HCA anything (including
legal proceedings) that—

(a) relates to anything transferred under paragraph 60, and

(b) is in the process of being done by or in relation to the Office
5immediately before the transfer date.

(4) Sub-paragraph (5) applies to any document that—

(a) relates to anything transferred under paragraph 60, and

(b) is in effect immediately before the transfer date.

(5) Any references (however expressed) in the document to the Office are to be
10read, so far as is necessary for the purposes of the transfer, as references to
the HCA.

Interpretation

63 In this Part of this Schedule—

  • “the Office” means the Office for Tenants and Social Landlords
    15constituted by Chapter 2 of the Housing and Regeneration Act 2008
    as originally enacted;

  • “the transfer date” means the date on which paragraph 60 comes into
    force.

Part 4 20Transitional and saving provisions

Final annual report

64 (1) As soon as is reasonably practicable after the abolition date, the HCA must
prepare a report on the performance of the functions of the Office—

(a) in the last financial year to end before the abolition date, and

(b) 25in the period (if any) beginning immediately after the end of that
financial year and ending immediately before the abolition date.

(2) Sub-paragraph (1)(a) does not apply if the Office has already sent a report
under section 92 of the Housing and Regeneration Act 2008 to the Secretary
of State in respect of the financial year.

(3) 30The report must, in particular—

(a) specify any direction given to the Office by the Secretary of State in
the period to which it relates under section 197 of the Housing and
Regeneration Act 2008, and

(b) contain a general description of complaints made to the Office in that
35period about the performance of registered providers of social
housing and of how those complaints have been dealt with.

(4) The HCA must send a report under this paragraph to the Secretary of State
as soon as is reasonably practicable after preparing it.

(5) The Secretary of State must lay the report before Parliament.

Localism BillPage 367

Final accounts

65 (1) As soon as is reasonably practicable after the abolition date, the HCA must
prepare—

(a) a statement of the accounts of the Office for the last financial year to
5end before the abolition date, and

(b) a statement of the accounts of the Office for the period (if any)
beginning immediately after the end of that financial year and
ending immediately before the abolition date.

(2) A statement under this paragraph must be prepared in accordance with the
10direction given by the Secretary of State to the Office dated 12 August 2009.

(3) The HCA must, as soon as is reasonable practicable after preparing a
statement under this section, send a copy of it to the Secretary of State and
the Comptroller and Auditor General.

(4) The Comptroller and Auditor General must—

(a) 15examine, certify and report on the statement, and

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

(5) Sub-paragraph (1)(a) does not apply if the Office has already sent a copy of
its statement of accounts for the year to the Comptroller and Auditor
General.

(6) 20In such a case the repeal of section 103(5) of the Housing and Regeneration
Act 2008 does not remove the obligation of the Comptroller and Auditor
General to take the steps specified in that provision in relation to the
statement of accounts if the Comptroller has not already done so.

General transitional and saving provisions

66 (1) 25Section 92A of the Housing and Regeneration Act 2008 does not apply to an
enactment or instrument if and to the extent that it makes provision about a
time before the commencement of the insertion of that section by paragraph
26.

(2) In relation to such a time—

(a) 30references in Part 2 of that Act to “the regulator” are to the Office, and

(b) references in any other enactment or instrument to “the Regulator of
Social Housing” are to the Office.

(3) The transfer of functions from the Office to the HCA by virtue of this
Schedule does not affect the validity of anything done (or having effect as if
35done) by or in relation to the Office before the transfer takes effect.

(4) Anything that—

(a) is done (or has effect as if done) by or in relation to the Office for the
purposes of, or otherwise in connection with, a function transferred
by virtue of this Schedule, and

(b) 40has effect immediately before the date on which the function is
transferred,

is to be treated as done by or in relation to the HCA.

(5) There may be continued by or in relation to the HCA anything (including
legal proceedings) that—

Localism BillPage 368

(a) relates to a function transferred by virtue of this Schedule, and

(b) is in the process of being done by or in relation to the Office
immediately before the date on which the function is transferred.

(6) Sub-paragraph (7) applies to any document that—

(a) 5relates to a function transferred by virtue of this Schedule, and

(b) is in effect immediately before the date on which the function is
transferred.

(7) Any references (however expressed) in the document to the Office are to be
read, so far as is necessary for the purposes of the transfer, as references to
10the HCA.

Interpretation

67 In this Part of this Schedule—

  • “the abolition date” means the date on which the repeal of section 81 of
    the Housing and Regeneration Act 2008 by Part 1 of this Schedule
    15comes into force;

  • “financial year” mean the period of 12 months ending with 31 March in
    any year;

  • “the Office” means the Office for Tenants and Social Landlords
    constituted by Chapter 2 of the Housing and Regeneration Act 2008
    20as originally enacted.

Section 157

SCHEDULE 17 Regulation of social housing

1 Part 2 of the Housing and Regeneration Act 2008 (regulation of social
housing) is amended as follows.

2 (1) 25Section 192 (overview of Chapter 6) is amended as follows.

(2) In paragraph (a) for “198” substitute “198B”.

(3) In paragraph (d) for “complaints” substitute “the submission of information
and opinions”.

3 (1) Section 193 (standards as to provision of social housing) is amended as
30follows.

(2) In the heading for “Provision of social housing” substitute “Standards
relating to consumer matters”.

(3) In subsection (2) omit paragraph (c).

4 (1) Section 194 (management of financial and other affairs of registered
35providers) is amended as follows.

(2) In the heading for “Management” substitute “Standards relating to
economic matters”.

(3) In subsection (1) omit “the management of”.

Localism BillPage 369

(4) After that subsection insert—

(1A) Standards under subsection (1) may, in particular, require private
registered providers to comply with specified rules about—

(a) the management of their financial and other affairs, and

(b) 5their efficiency in carrying on their financial and other
affairs.

(5) After subsection (2) insert—

(2A) The regulator may set standards for registered providers requiring
them to comply with specified rules about their levels of rent (and
10the rules may, in particular, include provision for minimum or
maximum levels of rent or levels of increase or decrease of rent).

5 (1) Section 195 (code of practice relating to standards) is amended as follows.

(2) In subsection (1)(a) after “standard” insert “under section 194”.

(3) In subsection (2) after “standards” insert “under that section”.

6 15In section 197(1) (directions by Secretary of State as to standards) in each of
paragraphs (a) and (b) after “193” insert “or 194”.

7 In section 198 (supplemental provision about standards) omit subsection (1).

8 After that section insert—

198A Failure to meet standard under section 193

(1) 20Failure by a registered provider to meet a standard under section 193
(standards relating to consumers matters) is a ground for exercising
a power in this Chapter or Chapter 7.

(2) But a power to which this subsection applies may be exercised on
that ground only if the regulator thinks there are reasonable grounds
25to suspect that—

(a) the failure has resulted in a serious detriment to the
registered provider’s tenants or potential tenants, or

(b) there is a significant risk that, if no action is taken by the
regulator, the failure will result in a serious detriment to the
30registered provider’s tenants or potential tenants.