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(  64  )

 
 

(i)   

the dwelling will either become or continue to be

 

occupied, despite the order being revoked, or

 

(ii)   

that the dwelling is to be sold;

 

(c)   

where a final EDMO has been made by the authority in respect

 

of the dwelling so as to replace the order;

 

(d)   

where the authority conclude that it would be appropriate to

 

revoke the order in order to prevent or stop interference with the

 

rights of a third party in consequence of the order; and

 

(e)   

where in any other circumstances the authority consider it

 

appropriate to revoke the order.

 

      (2)  

But, in a case where the dwelling is occupied, the local housing authority

 

may not revoke an interim EDMO under sub-paragraph (1)(b), (d) or (e)

 

unless the relevant proprietor consents.

 

      (3)  

A revocation does not come into force until such time, if any, as is the

 

operative time for the purposes of this sub-paragraph under paragraph

 

33 (time when period for appealing expires without an appeal being

 

made or when decision to revoke is confirmed on appeal).

 

      (4)  

The power to revoke an order under this paragraph is exercisable by the

 

authority either—

 

(a)   

on an application made by a relevant person, or

 

(b)   

on the authority’s own initiative.

 

      (5)  

Where a relevant person applies to the authority for the revocation of an

 

order under this paragraph, the authority may refuse to revoke the order

 

unless the relevant proprietor (or some other person) agrees to pay to the

 

authority any deficit such as is mentioned in paragraph 23(4).

 

      (6)  

In this paragraph “relevant person” means any person who has an estate

 

or interest in the dwelling (other than a person who is a tenant under a

 

lease or licence granted under paragraph 2(3)(c)).

 

8     (1)  

Part 2 of Schedule 6 applies in relation to the variation or revocation of

 

an interim EDMO as it applies in relation to the variation or revocation

 

of an interim management order.

 

      (2)  

But Part 2 of that Schedule so applies as if—

 

(a)   

references to the right of appeal under Part 3 of the Schedule and

 

to paragraph 29(2) were to the right of appeal under Part 4 of this

 

Schedule and to paragraph 31(2) of this Schedule, and

 

(b)   

paragraph 23(4) defined “relevant person” as any person who, to

 

the knowledge of the local housing authority, is a person having

 

an estate or interest in the dwelling (other than a person who is a

 

tenant under a lease or licence granted under paragraph 2(3)(c)

 

of this Schedule).

 

Part 2

 

Final EDMOs

 

Operation of final EDMOs

 

9     (1)  

This paragraph deals with the time when a final EDMO comes into 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 sub-paragraph under paragraph


 

(  65  )

 
 

29 (time when period for appealing expires without an appeal being

 

made or when order is confirmed on appeal).

 

      (3)  

The order ceases to have effect at the end of the period of 7 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.

 

      (5)  

If—

 

(a)   

the order provides that it is to cease to have effect on a date falling

 

after the end of that period, and

 

(b)   

the relevant proprietor of the dwelling has consented to that

 

provision,

 

           

the order accordingly ceases to have effect on that date.

 

      (6)  

Sub-paragraphs (7) and (8) apply where—

 

(a)   

a new final EDMO (“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 26 against the

 

making of that order.

 

      (7)  

If the date on which the new order comes into force in relation to the

 

dwelling following the disposal of the appeal is later than the date on

 

which the existing order would cease to have effect apart from this sub-

 

paragraph, the existing order continues in force until that later date.

 

      (8)  

If, 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 sub-paragraph, the existing order

 

accordingly continues in force until that later date.

 

      (9)  

This paragraph has effect subject to paragraphs 15 and 16 (variation or

 

revocation of orders) and to the power of revocation exercisable by a

 

residential property tribunal on an appeal made under paragraph 26 or

 

30.

 

General effect of final EDMOs

 

10    (1)  

This paragraph applies while a final EDMO is in force in relation to a

 

dwelling.

 

      (2)  

The rights and powers conferred by sub-paragraph (3) are exercisable by

 

the authority in performing their duties under section (Local housing

 

authority’s duties once final EDMO in force)(1) to (3) in respect of the

 

dwelling.

 

      (3)  

The authority—

 

(a)   

have the right to possession of the dwelling (subject to the rights

 

of existing and other occupiers preserved by paragraph 18(3) and

 

(4));

 

(b)   

have the right to do (and authorise a manager or other person to

 

do) in relation to the dwelling anything which the relevant

 

proprietor of the dwelling would (but for the order) be entitled to

 

do;

 

(c)   

may create one or more of the following—


 

(  66  )

 
 

(i)   

an interest in the dwelling which, as far as possible, has

 

all the incidents of a leasehold, or

 

(ii)   

a right in the nature of a licence to occupy part of the

 

dwelling;

 

(d)   

may apply to a residential property tribunal for an order under

 

paragraph 22 determining a lease or licence of the dwelling.

 

      (4)  

The powers of the authority under sub-paragraph (3)(c) are restricted as

 

follows—

 

(a)   

they may not create any interest or right in the nature of a lease

 

or licence—

 

(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, or an equivalent notice, of more than 4 weeks,

 

   

unless consent in writing has been given by the relevant

 

proprietor;

 

(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 beginning of the period of 6 months that ends with the date

 

on which the order is due to expire.

 

      (5)  

The authority—

 

(a)   

do not under this paragraph acquire any estate or interest in the

 

dwelling, and

 

(b)   

accordingly are not entitled by virtue of this paragraph to sell,

 

lease, charge or make any other disposition of any such estate or

 

interest.

 

      (6)  

But, where the relevant proprietor of the dwelling is a lessee under a

 

lease of the dwelling, the authority are to be treated (subject to sub-

 

paragraph (5)(a)) as if they were the lessee instead.

 

      (7)  

Any enactment or rule of law relating to landlords and tenants or leases

 

applies in relation to—

 

(a)   

a lease in relation to which the authority are to be treated as the

 

lessee under sub-paragraph (6), or

 

(b)   

a lease to which the authority become a party under paragraph

 

12(2),

 

           

as if the authority were the legal owner of the premises (but this is subject

 

to paragraph 12(4) to (6)).

 

      (8)  

None of the following, namely—

 

(a)   

the authority, or

 

(b)   

any person authorised under sub-paragraph (3)(b),

 

           

is liable to any person having an estate or interest in the dwelling for

 

anything done or omitted to be done in the performance (or intended

 

performance) of the authority’s duties under section (Local housing

 

authority’s duties once final EDMO in force)(1) to (3) unless the act or

 

omission is due to negligence of the authority or any such person.

 

      (9)  

A final EDMO which has come into force is a local land charge.

 

     (10)  

The authority may apply to the Chief Land Registrar for the entry of an

 

appropriate restriction in the register in respect of such an order.


 

(  67  )

 
 

     (11)  

In this paragraph “enactment” includes an enactment comprised in

 

subordinate legislation (within the meaning of the Interpretation Act

 

1978 (c. 30)).

 

General effect of final EDMOs: leases and licences granted by authority

 

11    (1)  

This paragraph applies in relation to any interest or right created by the

 

authority under paragraph 10(3)(c).

 

      (2)  

For the purposes of any enactment or rule of law—

 

(a)   

any interest created by the authority under paragraph 10(3)(c)(i)

 

is to be treated as if it were a legal lease, and

 

(b)   

any right created by the authority under paragraph 10(3)(c)(ii) is

 

to be treated as if it were a licence to occupy granted by the legal

 

owner of the dwelling,

 

           

despite the fact that the authority have no legal estate in the dwelling

 

(see paragraph 10(5)(a)).

 

      (3)  

Any enactment or rule of law relating to landlords and tenants or leases

 

accordingly applies in relation to any interest created by the authority

 

under paragraph 10(3)(c)(i) as if the authority were the legal owner of the

 

dwelling.

 

      (4)  

References to leases and licences—

 

(a)   

in this Chapter, and

 

(b)   

in any other enactment,

 

           

accordingly include (where the context permits) interests and rights

 

created by the authority under paragraph 10(3)(c).

 

      (5)  

The preceding provisions of this paragraph have effect subject to—

 

(a)   

paragraph 12(4) to (6), and

 

(b)   

any provision to the contrary contained in an order made by the

 

appropriate national authority.

 

      (6)  

In paragraph 10(5)(b) the reference to leasing does not include the

 

creation of interests under paragraph 10(3)(c)(i).

 

      (7)  

In this paragraph—

 

         

“enactment” has the meaning given by paragraph 10(11);

 

         

“legal lease” means a term of years absolute (within section 1(1)(b)

 

of the Law of Property Act 1925 (c. 20)).

 

General effect of final EDMOs: relevant proprietor, mortgagees etc.

 

12    (1)  

This paragraph applies in relation to—

 

(a)   

the relevant proprietor, and

 

(b)   

other persons with an estate or interest in the dwelling,

 

           

while a final EDMO is in force in relation to a dwelling.

 

      (2)  

Where the relevant proprietor is a lessor or licensor under a lease or

 

licence of the dwelling, the lease or licence has effect while the order is

 

in force as if the local housing authority were substituted in it for the

 

lessor or licensor.

 

      (3)  

Such a lease continues to have effect, as far as possible, as a lease despite

 

the fact that the rights of the local housing authority, as substituted for

 

the lessor, do not amount to an estate in law in the dwelling.


 

(  68  )

 
 

      (4)  

The provisions mentioned in sub-paragraph (5) do not apply to a lease

 

or licence within sub-paragraph (2).

 

      (5)  

The provisions are—

 

(a)   

the provisions which exclude local authority lettings from the

 

Rent Acts, namely—

 

(i)   

sections 14 to 16 of the Rent Act 1977 (c. 42), and

 

(ii)   

those sections as applied by Schedule 2 to the Rent

 

(Agriculture) Act 1976 (c. 80) and section 5(2) to (4) of that

 

Act; and

 

(b)   

section 1(2) of, and paragraph 12 of Part 1 of Schedule 1 to, the

 

Housing Act 1988 (c. 50) (which exclude local authority lettings

 

from Part 1 of that Act).

 

      (6)  

Nothing in this Chapter has the result that the authority are to be treated

 

as the legal owner of any premises for the purposes of—

 

(a)   

section 80 of the Housing Act 1985 (c. 68) (the landlord condition

 

for secure tenancies); or

 

(b)   

section 124 of the Housing Act 1996 (c. 52) (introductory

 

tenancies).

 

      (7)  

The relevant proprietor of the dwelling—

 

(a)   

is not entitled to receive any rents or other payments made in

 

respect of occupation of the dwelling;

 

(b)   

may not exercise any rights or powers with respect to the

 

management of the dwelling; and

 

(c)   

may not create any of the following—

 

(i)   

any leasehold interest in the dwelling or a part of it (other

 

than a lease of a reversion), or

 

(ii)   

any licence or other right to occupy it.

 

      (8)  

However (subject to sub-paragraph (7)(c)) nothing in paragraph 10 or

 

this paragraph affects the ability of a person having an estate or interest

 

in the dwelling to make any disposition of that estate or interest.

 

      (9)  

Nothing in paragraph 10 or this paragraph affects—

 

(a)   

the validity of any mortgage relating to the dwelling or any

 

rights or remedies available to the mortgagee under such a

 

mortgage, or

 

(b)   

the validity of any lease of the dwelling under which the relevant

 

proprietor is a lessee, or any superior lease, or (subject to

 

paragraph 10(6)) any rights or remedies available to the lessor

 

under such a lease,

 

           

except to the extent that any of those rights or remedies would prevent

 

the local housing authority from exercising their power under

 

paragraph 10(3)(c).

 

     (10)  

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 EDMO (including an order quashing it).

 

Management scheme and accounts

 

13    (1)  

A final EDMO must contain a management scheme.

 

      (2)  

A “management scheme” is a scheme setting out how the local housing

 

authority are to carry out their duties under section (Local housing


 

(  69  )

 
 

authority’s duties once final EDMO in force)(1) to (3) as respects the

 

dwelling.

 

      (3)  

The scheme is to contain a plan giving details of the way in which the

 

authority propose to manage the dwelling, which must (in particular)

 

include—

 

(a)   

details of any works that the authority intend to carry out in

 

connection with the dwelling;

 

(b)   

an estimate of the capital and other expenditure to be incurred by

 

the authority in respect of the dwelling while the order is in force;

 

(c)   

the amount of rent which, in the opinion of the authority, the

 

dwelling might reasonably be expected to fetch on the open

 

market at the time the management scheme is made;

 

(d)   

the amount of rent or other payments that the authority will seek

 

to obtain;

 

(e)   

the amount of any compensation that is payable to a third party

 

by virtue of a decision of the authority under section (Making of

 

final EDMOs)(4) or (Compensation payable to third parties)(3) in

 

respect of any interference in consequence of the final EDMO

 

with the rights of that person;

 

(f)   

provision as to the payment of any such compensation and of any

 

compensation payable to a dispossessed landlord or tenant by

 

virtue of an order under paragraph 22(5);

 

(g)   

where the amount of rent payable to the authority in respect of

 

the dwelling for a period is less than the amount of rent

 

mentioned in paragraph (c) in respect of a period of the same

 

length, provision as to the following—

 

(i)   

the deduction from the difference of relevant expenditure

 

and any amounts of compensation payable to a third

 

party or dispossessed landlord or tenant;

 

(ii)   

the payment of any remaining amount to the relevant

 

proprietor;

 

(iii)   

the deduction from time to time of any remaining amount

 

from any amount that the authority are entitled to recover

 

from the proprietor under paragraph 23(5) or (6);

 

(h)   

provision as to the payment by the authority to the relevant

 

proprietor from time to time of amounts of rent or other

 

payments that remain after the deduction of—

 

(i)   

relevant expenditure, and

 

(ii)   

any amount of compensation payable to a third party or

 

dispossessed landlord or tenant;

 

(i)   

provision as to the manner in which the authority are to pay to

 

the relevant proprietor, on the termination of the final EDMO,

 

the balance of any amounts of rent or other payments that remain

 

after the deduction of relevant expenditure and any amounts of

 

compensation payable to a third party or dispossessed landlord

 

or tenant;

 

(j)   

provision as to the manner in which the authority are to pay, on

 

the termination of the final EDMO, any outstanding amount of

 

compensation payable to a third party or dispossessed landlord

 

or tenant.

 

      (4)  

The scheme may also state—

 

(a)   

the authority’s intentions as regards the use of rent or other

 

payments to meet relevant expenditure;


 

(  70  )

 
 

(b)   

the authority’s intentions as regards the payment to the relevant

 

proprietor (where appropriate) of interest on amounts within

 

sub-paragraph (3)(h) and (i);

 

(c)   

that paragraph 23(2) or, where the relevant proprietor consents,

 

paragraph 23(3)(c) is not to apply in relation to an interim EDMO

 

or (as the case may be) final EDMO that immediately preceded

 

the final EDMO, and that instead the authority intend to use any

 

balance such as is mentioned in that sub-paragraph to meet—

 

(i)   

relevant expenditure incurred during the currency of that

 

final EDMO, and

 

(ii)   

any compensation that may become payable to a third

 

party or a dispossessed landlord or tenant;

 

(d)   

that paragraph 23(4) to (6) are not to apply in relation to an

 

interim EDMO or, where the relevant proprietor consents, a final

 

EDMO that immediately preceded the final EDMO, and that

 

instead the authority intend to use rent or other payments

 

collected during the currency of that final EDMO to reimburse

 

the authority in respect of any deficit such as is mentioned in

 

paragraph 23(4);

 

(e)   

the authority’s intentions as regards the recovery from the

 

relevant proprietor, with or without interest, of any amount of

 

relevant expenditure incurred under a previous interim EDMO

 

or final EDMO that the authority are entitled to recover from the

 

proprietor under paragraph 23(5) or (6).

 

      (5)  

The authority must—

 

(a)   

keep full accounts of their income and expenditure in respect of

 

the dwelling; and

 

(b)   

afford to the relevant proprietor, and to any other person who

 

has an estate or interest in the dwelling, all reasonable facilities

 

for inspecting, taking copies of and verifying those accounts.

 

      (6)  

In this paragraph—

 

         

“dispossessed landlord or tenant” means a person who was a

 

lessor, lessee, licensor or licensee under a lease or licence

 

determined by an order under paragraph 22;

 

         

“relevant expenditure” means—

 

(a)   

expenditure incurred by the authority with the consent

 

of the relevant proprietor, or

 

(b)   

any other expenditure reasonably incurred by the

 

authority,

 

         

in connection with performing their duties under section (Local

 

housing authority’s duties once interim EDMO in force)(1) to (3) or

 

(Local housing authority’s duties once final EDMO in force)(1) to (3)

 

in respect of the dwelling (including any reasonable

 

administrative costs and any premiums paid for insurance of

 

the premises);

 

         

“rent or other payments” means rent or other payments collected

 

or recovered, by virtue of this Chapter, from persons occupying

 

or having the right to occupy the dwelling.

 

      (7)  

In any provision of this Chapter relating to varying, revoking or

 

appealing against decisions relating to a final EDMO, any reference to

 

such an order includes (where the context permits) a reference to the

 

management scheme contained in it.


 
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