|
| |
|
Interim management orders: variation and revocation |
| |
105 | Variation of interim management orders |
| |
(1) | The local housing authority may vary an interim management order if they |
| |
consider it appropriate to do so. |
| |
(2) | A variation does not come into force until such time, if any, as is the operative |
| 5 |
time for the purposes of this subsection under paragraph 31 of Schedule 6 (time |
| |
when period for appealing expires without an appeal being made or when |
| |
decision to vary is confirmed on appeal). |
| |
(3) | The power to vary an order under this section is exercisable by the authority |
| |
| 10 |
(a) | on an application made by a relevant person, or |
| |
(b) | on the authority’s own initiative. |
| |
(4) | In this section “relevant person” means— |
| |
(a) | any person who has an estate or interest in the house or part of it (but |
| |
is not a tenant under a lease with an unexpired term of 3 years or less), |
| 15 |
| |
(b) | any other person who (but for the order) would be a person managing |
| |
or having control of the house or part of it. |
| |
106 | Revocation of interim management orders |
| |
(1) | The local housing authority may revoke an interim management order in the |
| 20 |
| |
(a) | if the order was made under section 97(2) or (3) and the house has |
| |
ceased to be an HMO to which Part 2 applies or a Part 3 house (as the |
| |
| |
(b) | if the order was made under section 97(2) or (3) and a licence granted |
| 25 |
by them in respect of the house is due to come into force under Part 2 |
| |
or Part 3 on the revocation of the order; |
| |
(c) | if a final management order has been made by them in respect of the |
| |
house so as to replace the order; |
| |
(d) | if in any other circumstances the authority consider it appropriate to |
| 30 |
| |
(2) | A revocation does not come into force until such time, if any, as is the operative |
| |
time for the purposes of this subsection under paragraph 31 of Schedule 6 (time |
| |
when period for appealing expires without an appeal being made or when |
| |
decision to revoke is confirmed on appeal). |
| 35 |
(3) | The power to revoke an order under this section is exercisable by the authority |
| |
| |
(a) | on an application made by a relevant person, or |
| |
(b) | on the authority’s own initiative. |
| |
(4) | In this section “relevant person” means— |
| 40 |
(a) | any person who has an estate or interest in the house or part of it (but |
| |
is not a tenant under a lease with an unexpired term of 3 years or less), |
| |
| |
(b) | any other person who (but for the order) would be a person managing |
| |
or having control of the house or part of it. |
| 45 |
|
| |
|
| |
|
Final management orders: making and operation of orders |
| |
107 | Making of final management orders |
| |
(1) | A local housing authority who have made an interim management order in |
| |
respect of a house under section 97 (“the IMO”)— |
| |
(a) | have a duty to make a final management order in respect of the house |
| 5 |
in a case within subsection (2), and |
| |
(b) | have power to make such an order in a case within subsection (3). |
| |
(2) | The authority must make a final management order so as to replace the IMO as |
| |
| |
(a) | on that date the house would be required to be licensed under Part 2 or |
| 10 |
3 of this Act (see section 60(1) or 82(1)), and |
| |
(b) | the authority consider that they are unable to grant a licence under Part |
| |
2 or 3 in respect of the house that would replace the IMO as from that |
| |
| |
(3) | The authority may make a final management order so as to replace the IMO as |
| 15 |
| |
(a) | on that date the house will be an HMO other than one to which Part 2 |
| |
| |
(b) | the authority consider that making the final management order is |
| |
necessary for the purpose of protecting, on a long-term basis, the |
| 20 |
health, safety or welfare of persons occupying the house, or persons |
| |
occupying or having an estate or interest in any premises in the vicinity. |
| |
(4) | A local housing authority who have made a final management order in respect |
| |
of a house under this section (“the existing order”)— |
| |
(a) | have a duty to make a final management order in respect of the house |
| 25 |
in a case within subsection (5), and |
| |
(b) | have power to make such an order in a case within subsection (6). |
| |
(5) | The authority must make a new final management order so as to replace the |
| |
existing order as from its expiry date if— |
| |
(a) | on that date the condition in subsection (2)(a) will be satisfied in |
| 30 |
relation to the house, and |
| |
(b) | the authority consider that they are unable to grant a licence under Part |
| |
2 or 3 in respect of the house that would replace the existing order as |
| |
| |
(6) | The authority may make a new final management order so as to replace the |
| 35 |
existing order as from its expiry date if— |
| |
(a) | on that date the condition in subsection (3)(a) will be satisfied in |
| |
relation to the house, and |
| |
(b) | the authority consider that making the new order is necessary for the |
| |
purpose of protecting, on a long-term basis, the health, safety or welfare |
| 40 |
of persons within subsection (3)(b). |
| |
(7) | The authority may make a final management order which is expressed not to |
| |
apply to a part of the house that is occupied by a person who has an estate or |
| |
interest in the whole of the house. |
| |
| In relation to such an order, a reference in this Part to “the house” does not |
| 45 |
include the part so excluded (unless the context requires otherwise, such as |
| |
where the reference is to the house as an HMO or a Part 3 house). |
| |
|
| |
|
| |
|
(8) | In this section “expiry date”, in relation to an interim or final management |
| |
| |
(a) | where the order is revoked, the date as from which it is revoked, and |
| |
(b) | otherwise the date on which the order ceases to have effect under |
| |
| 5 |
| and nothing in this section applies in relation to an interim or final |
| |
management order which has been revoked on an appeal under Part 3 of |
| |
| |
108 | Operation of final management orders |
| |
(1) | This section deals with the time when a final management order comes into |
| 10 |
force or ceases to have effect. |
| |
(2) | The order does not come into force until such time (if any) as is the operative |
| |
time for the purposes of this subsection under paragraph 27 of Schedule 6 (time |
| |
when period for appealing expires without an appeal being made or when |
| |
order is confirmed on appeal). |
| 15 |
(3) | The order ceases to have effect at the end of the period of 5 years beginning |
| |
with the date on which it comes into force, unless it ceases to have effect at |
| |
some other time as mentioned below. |
| |
(4) | If the order provides that it is to cease to have effect on a date falling before the |
| |
end of that period, it accordingly ceases to have effect on that date. |
| 20 |
(5) | Subsections (6) and (7) apply where— |
| |
(a) | a new final management order (“the new order”) has been made so as |
| |
to replace the order (“the existing order”), but |
| |
(b) | the new order has not come into force because of an appeal to a |
| |
residential property tribunal under paragraph 24 of Schedule 6 against |
| 25 |
the making of that order. |
| |
| |
(a) | the house would (but for the existing order being in force) be required |
| |
to be licensed under Part 2 or 3 of this Act (see section 60(1) or 82(1)), |
| |
| 30 |
| |
| |
(ii) | any licence under Part 2 or 3, or |
| |
(iii) | a temporary exemption notice under section 61 or 83, |
| |
| comes into force in relation to the house (or part of it) following the |
| 35 |
disposal of the appeal is later than the date on which the existing order |
| |
would cease to have effect apart from this subsection, |
| |
| the existing order continues in force until that later date. |
| |
| |
(a) | the house is an HMO other than one to which Part 2 of this Act applies, |
| 40 |
| |
(b) | on the application of the authority, the tribunal makes an order |
| |
providing for the existing order to continue in force, pending the |
| |
disposal of the appeal, until a date later than that on which it would |
| |
cease to have effect apart from this subsection, |
| 45 |
| the existing order accordingly continues in force until that later date. |
| |
|
| |
|
| |
|
(8) | This section has effect subject to sections 113 and 114 (variation or revocation |
| |
of orders) and to the power of revocation exercisable by a residential property |
| |
tribunal on an appeal made under paragraph 24 or 28 of Schedule 6. |
| |
109 | Local housing authority’s duties once final management order in force |
| |
(1) | A local housing authority who have made a final management order in respect |
| 5 |
of a house must comply with the following provisions once the order has come |
| |
| |
(2) | The local housing authority must take such steps as they consider appropriate |
| |
with a view to the proper management of the house in accordance with the |
| |
management scheme contained in the order (see section 112). |
| 10 |
(3) | The local housing authority must from time to time review— |
| |
(a) | the operation of the order and in particular the management scheme |
| |
| |
(b) | whether keeping the order in force in relation to the house (with or |
| |
without making any variations under section 113) is the best alternative |
| 15 |
| |
(4) | If on a review the authority consider that any variations should be made under |
| |
section 113, they must proceed to make those variations. |
| |
(5) | If on a review the authority consider that either— |
| |
(a) | granting a licence under Part 2 or 3 in respect of the house, or |
| 20 |
(b) | revoking the order under section 114 and taking no further action, |
| |
| is the best alternative available to them, the authority must grant such a licence |
| |
or revoke the order (as the case may be). |
| |
(6) | For the avoidance of doubt, the authority’s duty under subsection (2) includes |
| |
taking such steps as are necessary to ensure that, while the order is in force, |
| 25 |
reasonable provision is made for insurance of the house against destruction or |
| |
damage by fire or other causes. |
| |
110 | General effect of final management orders |
| |
(1) | This section applies while a final management order is in force in relation to a |
| |
| 30 |
(2) | The rights and powers conferred by subsection (3) are exercisable by the |
| |
authority in performing their duty under section 109(2) in respect of the house. |
| |
| |
(a) | have the right to possession of the house (subject to the rights of |
| |
existing occupiers preserved by section 116(2)); |
| 35 |
(b) | have the right to do (and authorise a manager or other person to do) in |
| |
relation to the house anything which a person having an estate or |
| |
interest in the house would (but for the order) be entitled to do; |
| |
(c) | may create one or more of the following— |
| |
(i) | an interest in the house which, as far as possible, has all the |
| 40 |
incidents of a leasehold, or |
| |
(ii) | a right in the nature of a licence to occupy part of the house. |
| |
(4) | The powers of the authority under subsection (3)(c) are restricted as follows— |
| |
|
| |
|
| |
|
(a) | they may not create any interest or right in the nature of a lease or |
| |
| |
(i) | which is for a fixed term expiring after the date on which the |
| |
order is due to expire, or |
| |
(ii) | (subject to paragraph (b)) which is terminable by notice to quit, |
| 5 |
or an equivalent notice, of more than 4 weeks, |
| |
| unless consent in writing has been given by the person who would (but |
| |
for the order) have power to create the lease or licence in question; |
| |
(b) | they may create an interest in the nature of an assured shorthold |
| |
tenancy without any such consent so long as it is created before the |
| 10 |
beginning of the period of 6 months that ends with the date on which |
| |
the order is due to expire. |
| |
| |
(a) | do not under this section acquire any estate or interest in the house, and |
| |
(b) | accordingly are not entitled by virtue of this section to sell, lease, charge |
| 15 |
or make any other disposition of any such estate or interest; |
| |
| but, where the immediate landlord of the house or part of it (within the |
| |
meaning of section 111) is a lessee under a lease of the house or part, the |
| |
authority is to be treated (subject to paragraph (a)) as if they were the lessee |
| |
| 20 |
(6) | Any enactment or rule of law relating to landlords and tenants or leases applies |
| |
| |
(a) | an interest created by the authority under subsection (3)(c), |
| |
(b) | a lease in relation to which the authority are to be treated as the lessee |
| |
| 25 |
(c) | a lease to which the authority become a party under section 116(3), |
| |
| as if the authority were the legal owner of the premises (but this is subject to |
| |
| |
(7) | None of the following, namely— |
| |
| 30 |
(b) | any person authorised under subsection (3)(b), |
| |
| is liable to any person having an estate or interest in the house for anything |
| |
done or omitted to be done in the performance (or intended performance) of |
| |
the authority’s duty under section 109(2) unless the act or omission is due to |
| |
the negligence of the authority or any such person. |
| 35 |
(8) | References in any enactment to housing accommodation provided or managed |
| |
by a local housing authority do not include a house in relation to which a final |
| |
management order is in force. |
| |
(9) | A final management order which has come into force is a local land charge. |
| |
(10) | In this section “enactment” includes an enactment comprised in subordinate |
| 40 |
legislation (within the meaning of the Interpretation Act 1978 (c. 30)). |
| |
111 | General effect of final management orders: immediate landlords, mortgagees |
| |
| |
(1) | This section applies in relation to— |
| |
(a) | immediate landlords, and |
| 45 |
(b) | other persons with an estate or interest in the house, |
| |
|
| |
|
| |
|
| while a final management order is in force in relation to a house. |
| |
(2) | A person who is an immediate landlord of the house or a part of it— |
| |
(a) | is not entitled to receive— |
| |
(i) | any rents or other payments from persons occupying the house |
| |
or part which are payable to the local housing authority by |
| 5 |
virtue of section 116(3), or |
| |
(ii) | any rents or other payments from persons occupying the house |
| |
or part which are payable to the authority by virtue of any |
| |
interest or right created by them under section 110(3)(c), |
| |
(b) | may not exercise any rights or powers with respect to the management |
| 10 |
of the house or part; and |
| |
(c) | may not create any of the following— |
| |
(i) | any leasehold interest in the house or part (other than a lease of |
| |
| |
(ii) | any licence or other right to occupy it. |
| 15 |
(3) | However (subject to subsection (2)(c)) nothing in section 110 or this section |
| |
affects the ability of a person having an estate or interest in the house to make |
| |
any disposition of that estate or interest. |
| |
(4) | Nothing in section 110 or this section affects— |
| |
(a) | the validity of any mortgage relating to the house or any rights or |
| 20 |
remedies available to the mortgagee under such a mortgage, or |
| |
(b) | the validity of any lease of the house or part of it under which the |
| |
immediate landlord is a lessee, or any superior lease, or (subject to |
| |
section 110(5)) any rights or remedies available to the lessor under such |
| |
| 25 |
| and in proceedings for the enforcement of any such rights or remedies the |
| |
court may make such order as it thinks fit as regards the operation of the final |
| |
management order (including an order quashing it). |
| |
(5) | For the purposes of this Part, as it applies in relation to a final management |
| |
order, a person is an “immediate landlord” of the house or a part of it if— |
| 30 |
(a) | he is an owner or lessee of the house or part, and |
| |
(b) | (but for the order) he would be entitled to receive the rents or other |
| |
payments from persons occupying the house or part which are payable |
| |
to the authority by virtue of section 116(3). |
| |
112 | Management scheme and accounts |
| 35 |
(1) | A final management order must contain a management scheme. |
| |
(2) | A “management scheme” is a scheme setting out how the local housing |
| |
authority are to carry out their duty under section 109(2) as respects the |
| |
| |
(3) | A management scheme is to be divided into two parts. |
| 40 |
(4) | Part 1 of the scheme is to contain a plan giving details of the way in which the |
| |
authority propose to manage the house, which must (in particular) include— |
| |
(a) | details of any works that the authority intend to carry out in connection |
| |
| |
(b) | an estimate of the capital and other expenditure to be incurred by the |
| 45 |
authority in respect of the house while the order is in force; |
| |
|
| |
|
| |
|
(c) | the amount of rent or other payments that the authority will seek to |
| |
obtain having regard to the condition or expected condition of the |
| |
house at any time while the order is in force; |
| |
(d) | provision as to the payment by the authority to a relevant landlord, |
| |
from time to time, of amounts of rent or other payments that remain |
| 5 |
after the deduction of relevant expenditure; |
| |
(e) | as to the manner in which the authority are to pay to a relevant |
| |
landlord, on the termination of the final management order, any |
| |
amounts of rent or other payments that remain after the deduction of |
| |
relevant expenditure (as mentioned in section 120(4)). |
| 10 |
(5) | Part 1 of the scheme may also state— |
| |
(a) | the authority’s intentions as regards the use of rent or other payments |
| |
to meet relevant expenditure; |
| |
(b) | the authority intentions as regards the payment to a relevant landlord |
| |
(where appropriate) of interest on amounts within subsection (4)(c) and |
| 15 |
| |
(c) | that section 120(2) is not to apply in respect of an interim management |
| |
order that immediately preceded the final management order, and that |
| |
instead the authority intend to use any balance such as is mentioned in |
| |
that subsection to meet relevant expenditure incurred during the |
| 20 |
currency of the final management order; |
| |
(d) | the authority’s intentions as regards the use of rent or other payments |
| |
collected or recovered during the currency of the final management |
| |
order to meet any deficit such as is mentioned in section 120(3) in |
| |
respect of an interim management order that immediately preceded the |
| 25 |
| |
(e) | the authority’s intentions as regards the recovery from a relevant |
| |
landlord, with or without interest, of any amount of relevant |
| |
expenditure that cannot be reimbursed out of the total amount of rent |
| |
| 30 |
(6) | Part 2 of the scheme is to describe in general terms how the authority intend to |
| |
address the matters which caused them to make the final management order |
| |
and may, for example, include— |
| |
(a) | descriptions of any steps that the authority intend to take to require |
| |
persons occupying the house to comply with their obligations under |
| 35 |
any lease or licence or under the general law; |
| |
(b) | descriptions of any repairs that are needed to the property and an |
| |
explanation as to why those repairs are necessary. |
| |
| |
(a) | keep full accounts of their income and expenditure in respect of the |
| 40 |
| |
(b) | afford to each relevant landlord, and to any other person who has an |
| |
estate or interest in the house, all reasonable facilities for inspecting, |
| |
taking copies of and verifying those accounts. |
| |
| 45 |
| “relevant expenditure” means expenditure reasonably incurred by the |
| |
authority in connection with performing their duties under section |
| |
109(2) in respect of the house (including any reasonable administrative |
| |
costs and any premiums paid for insurance of the premises); |
| |
|
| |
|