(71-77)

House of Commons

Session 2002 - 03
Internet Publications
Other Bills before Parliament

(  71  )

Application to residential property tribunal in respect of breach of management scheme

14    (1)
An affected person may apply to a residential property tribunal for an

order requiring the local housing authority to manage a dwelling in

accordance with the management scheme contained in a final EDMO

made in respect of the dwelling.

      (2)
On such an application the tribunal may, if it considers it appropriate to

do so, make an order—

(a)
requiring the authority to manage the dwelling in accordance

with the management scheme, or

(b)
revoking the final EDMO as from a date specified in the

tribunal’s order.

      (3)
An order under sub-paragraph (2) may—

(a)
set out the steps which the authority are to take to manage the

dwelling in accordance with the management scheme,

(b)
include provision varying the final EDMO, and

(c)
require the payment of money to an affected person by way of

damages.

      (4)
In this paragraph “affected person” means—

(a)
the relevant proprietor, and

(b)
any third party to whom compensation is payable by virtue of an

order under section (Authorisation to make interim EDMOs)(4) or

(Compensation payable to third parties)(2) or a decision of the

authority under section (Making of final EDMOs)(4) or

(Compensation payable to third parties)(3) or who was a lessor,

lessee, licensor or licensee under a lease or licence determined by

an order of the residential property tribunal under paragraph 22

and to whom compensation is payable by virtue of an order

under sub-paragraph (5) of that paragraph.

Variation or revocation of final EDMOs

15    (1)
The local housing authority may vary a final EDMO 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 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 vary is confirmed on appeal).

      (3)
The power to vary 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.

      (4)
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) or 10(3)(c)).

16    (1)
The local housing authority may revoke a final EDMO in the following

cases—

(a)
where the authority conclude that there are no steps which they

could appropriately take as mentioned in section (Local housing

authority’s duties once final EDMO in force)(4)(b) or that keeping

the order in force is not necessary as mentioned in section (Local

housing authority’s duties once final EDMO in force)(4)(c);

(  72  )

(b)
where the authority are satisfied that—

(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 further 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 a final 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) or 10(3)(c)).

17    (1)
Part 2 of Schedule 6 applies in relation to the variation or revocation of a

final EDMO as it applies in relation to the variation or revocation of a

final 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)

or 10(3)(c) of this Schedule).

Part 3

Interim and final EDMOs: general provisions (other than provisions

relating to appeals)

Effect of EDMOs: persons occupying or having a right to occupy the dwelling

18    (1)
This paragraph applies to existing and new occupiers of a dwelling in

relation to which an interim EDMO or final EDMO is in force.

(  73  )

      (2)
In this paragraph—


“existing occupier” means a person other than the relevant

proprietor who, at the time when the order comes into force—

(a)
has the right to occupy the dwelling, but

(b)
is not a new occupier within sub-paragraph (4);


“new occupier” means a person who, at a time when the order is

in force, is occupying the dwelling under a lease or licence

granted under paragraph 2(3)(c) or 10(3)(c).

      (3)
Paragraphs 2 and 10 do not affect the rights or liabilities of an existing

occupier under a lease or licence (whether in writing or not) under which

he has the right to occupy the dwelling at the commencement date.

      (4)
Paragraph 10 does not affect the rights and liabilities of a new occupier

who, in the case of a final EDMO, is occupying the dwelling at the time

when the order comes into force.

      (5)
The provisions mentioned in sub-paragraph (6) do not apply to a lease

or agreement under which a new occupier has the right to occupy or is

occupying the dwelling.

      (6)
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).

      (7)
If, immediately before the coming into force of an interim EDMO or final

EDMO, an existing occupier had the right to occupy the dwelling

under—

(a)
a protected or statutory tenancy within the meaning of the Rent

Act 1977,

(b)
a protected or statutory tenancy within the meaning of the Rent

(Agriculture) Act 1976, or

(c)
an assured tenancy or assured agricultural occupancy within the

meaning of Part 1 of the Housing Act 1988 (c. 50),


nothing in this Chapter (except an order under paragraph 22

determining a lease or licence) prevents the continuance of that tenancy

or occupancy or affects the continued operation of any of those Acts in

relation to the tenancy or occupancy after the coming into force of the

order.

      (8)
In this paragraph “the commencement date” means the date on which

the order came into force (or, if that order was preceded by one or more

orders under this Chapter, the date when the first order came into force).

Effect of EDMOs: agreements and legal proceedings

19    (1)
An agreement or instrument within sub-paragraph (2) has effect, while

an interim EDMO or final EDMO is in force, as if any rights or liabilities

of the relevant proprietor under the agreement or instrument were

instead rights or liabilities of the local housing authority.

(  74  )

      (2)
An agreement or instrument is within this sub-paragraph if—

(a)
it is effective on the commencement date,

(b)
one of the parties to it is the relevant proprietor of the dwelling,

(c)
it relates to the dwelling, whether in connection with any

management activities with respect to it, or otherwise,

(d)
it is specified for the purposes of this sub-paragraph in the order

or falls within a description of agreements or instruments so

specified, and

(e)
the authority serve a notice in writing on all the parties to it

stating that sub-paragraph (1) is to apply to it.

      (3)
An agreement or instrument is not within sub-paragraph (2) if—

(a)
it is a lease or licence within paragraph 2(6) or 10(6), or

(b)
it relates to any disposition by the relevant proprietor which is

not precluded by paragraph 4(7) or 12(7).

      (4)
Proceedings in respect of any cause of action within sub-paragraph (5)

may, while an interim EDMO or final EDMO is in force, be instituted or

continued by or against the local housing authority instead of by or

against the relevant proprietor.

      (5)
A cause of action is within this sub-paragraph if—

(a)
it is a cause of action (of any nature) which accrued to or against

the relevant proprietor of the dwelling before the

commencement date,

(b)
it relates to the dwelling as mentioned in sub-paragraph (2)(c),

(c)
it is specified for the purposes of this sub-paragraph in the order

or falls within a description of causes of action so specified, and

(d)
the authority serve a notice in writing on all interested parties

stating that sub-paragraph (4) is to apply to it.

      (6)
If, by virtue of this paragraph, the authority become subject to any

liability to pay damages in respect of anything done (or omitted to be

done) before the commencement date by or on behalf of the relevant

proprietor of the dwelling, the relevant proprietor is liable to reimburse

to the authority an amount equal to the amount of damages paid by

them.

      (7)
In this paragraph—


“agreement” includes arrangement;


“the commencement date” means the date on which the order

comes into force (or, if that order was preceded by one or more

orders under this Chapter, the date when the first order came

into force);


“management activities” includes repair, maintenance,

improvement and insurance.

Effect of EDMOs: furniture

20    (1)
Sub-paragraph (2) applies where, on the date on which an interim

EDMO or final EDMO comes into force, there is furniture owned by the

relevant proprietor in the dwelling.

      (2)
Subject to sub-paragraphs (3) and (4), the right to possession of the

furniture against all persons vests in the local housing authority on that

date and remains vested in the authority while the order is in force.

(  75  )

      (3)
The right of the local housing authority under sub-paragraph (2) to

possession of the furniture is subject to the rights of any person who, on

the date on which the interim EDMO or final EDMO comes into force,

has the right to possession of the dwelling.

      (4)
Where—

(a)
the local housing authority have the right to possession of the

furniture under sub-paragraph (2), and

(b)
they have not granted a right to possession of the furniture to any

other person,


they must, on a request by the relevant proprietor, give up possession of

the furniture to him.

      (5)
The local housing authority may renounce the right to possession of the

furniture conferred by sub-paragraph (2) by serving notice on the

relevant proprietor not less than two weeks before the renunciation is to

have effect.

      (6)
Where the local housing authority renounce the right to possession of

the furniture under sub-paragraph (5), they must make appropriate

arrangements for storage of the furniture at their own cost.

      (7)
In this paragraph “furniture” includes fittings and other articles.

EDMOs: power to supply furniture

21    (1)
The local housing authority may supply the dwelling to which an

interim EDMO or final EDMO relates with such furniture as they

consider to be required.

      (2)
For the purposes of paragraph 5 or paragraph 13, any expenditure

incurred by the authority under this paragraph constitutes expenditure

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).

      (3)
In this paragraph “furniture” includes fittings and other articles.

Power of a residential property tribunal to determine certain leases and licences

22    (1)
A residential property tribunal may make an order determining a lease

or licence to which this paragraph applies if—

(a)
the case falls within sub-paragraph (3) or (4), and

(b)
the tribunal is satisfied that the dwelling is not being occupied

and that the local housing authority need to have the right to

possession of the dwelling in order to secure that the dwelling

becomes occupied.

      (2)
This paragraph applies to the following leases and licences of a

dwelling—

(a)
a lease of the dwelling in respect of which the relevant proprietor

is the lessor,

(b)
a sub-lease of any such lease, and

(c)
a licence of the dwelling.

      (3)
A case falls within this sub-paragraph if—

(a)
an interim or final EDMO is in force in respect of the dwelling,

and

(  76  )

(b)
the local housing authority have applied under paragraph

2(3)(d) or 10(3)(d) for an order determining the lease or licence.

      (4)
A case falls within this sub-paragraph if—

(a)
the local housing authority have applied to the residential

property tribunal under section (Making of interim EDMOs) for an

order authorising them to make an interim EDMO in respect of

the dwelling and an order determining the lease or licence, and

(b)
the residential property tribunal has decided to authorise the

authority to make an interim EDMO in respect of the dwelling.

      (5)
An order under this paragraph may include provision requiring the

local housing authority to pay such amount or amounts to one or more

of the lessor, lessee, licensor or licensee by way of compensation in

respect of the determination of the lease or licence as the tribunal

determines.

      (6)
Where—

(a)
a final EDMO is in force in respect of a dwelling, and

(b)
the tribunal makes an order requiring the local housing authority

to pay an amount of compensation to a lessor, lessee, licensor or

licensee in respect of the determination of a lease or licence of the

dwelling,


the tribunal must make an order varying the management scheme

contained in the final EDMO so as to make provision as to the payment

of that compensation.

Termination of EDMOs: financial arrangements

23    (1)
This paragraph applies where an interim EDMO or final EDMO ceases

to have effect for any reason.

      (2)
If, on the termination date for an interim EDMO, the total amount of rent

or other payments collected or recovered as mentioned in paragraph 5(3)

exceeds the total amount of—

(a)
the authority’s relevant expenditure, and

(b)
any amounts of compensation payable to third parties by virtue

of orders under section (Authorisation to make interim EDMOs)(4)

or (Compensation payable to third parties)(2) or decisions of the

authority under section (Making of final EDMOs)(4) or

(Compensation payable to third parties)(3),


the authority must, as soon as possible after the termination date, pay the

balance to the relevant proprietor.

      (3)
If, on the termination date for a final EDMO, any balance is payable to—

(a)
a third party,

(b)
a dispossessed landlord or tenant, or

(c)
the relevant proprietor,


in accordance with the management scheme under paragraph 13, that

amount must be paid to that person by the local housing authority in the

manner provided by the scheme.

      (4)
Sub-paragraphs (5) and (6) apply where, on the termination date for an

interim EDMO or final EDMO, the total amount of rent or other

payments collected or recovered as mentioned in paragraph 5(3) is less

than the total amount of the authority’s relevant expenditure together

with any such amounts of compensation as are mentioned in sub-

paragraph (2)(b) above.

(  77  )

      (5)
The authority may recover from the relevant proprietor—

(a)
the amount of any relevant expenditure (not exceeding the deficit

mentioned in sub-paragraph (4)) which he has agreed in writing

to pay either as a condition of revocation of the order or

otherwise, and

(b)
where the relevant proprietor is a tenant under a lease in respect

of the dwelling, the amount of any outstanding service charges

payable under the lease.

      (6)
In the case of an interim EDMO ceasing to have effect, the authority may

recover the deficit mentioned in sub-paragraph (4) from the relevant

proprietor if, in their opinion, he unreasonably refused to consent to the

creation of an interest or right as mentioned in paragraph 2(3)(c) while

the order was in force.

      (7)
The provisions of any of sub-paragraphs (2) to (6) do not, however,

apply in relation to the order if—

(a)
the order is followed by a final EDMO, and

(b)
the management scheme contained in that final EDMO provides

for those sub-paragraphs not to apply in relation to the order (see

paragraph 13(4)(c) and (d)).

      (8)
Any sum recoverable by the authority under sub-paragraph (5) or (6) is,

until recovered, a charge on the dwelling.

      (9)
The charge takes effect on the termination date for the order as a legal

charge which is a local land charge.

     (10)
For the purpose of enforcing the charge the authority have the same

powers and remedies under the Law of Property Act 1925 (c. 20) and

otherwise as if they were mortgagees by deed having powers of sale and

lease, of accepting surrenders of leases and of appointing a receiver.

     (11)
The power of appointing a receiver is exercisable at any time after the

end of the period of one month beginning with the date on which the

charge takes effect.

     (12)
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” has the same meaning as in paragraph 5 (in

relation to an interim EDMO) or paragraph 13 (in relation to a

final EDMO);


“service charge” has the meaning given by section 18 of the

Landlord and Tenant Act 1985 (c. 70);


“the termination date” means the date on which the order ceases

to have effect.

Termination of EDMOs: leases, agreements and proceedings

24    (1)
This paragraph applies where—

(a)
an interim EDMO or final EDMO ceases to have effect for any

reason, and

(b)
the order is not immediately followed by a further order under

this Chapter.

      (2)
As from the termination date, an agreement which (in accordance with

paragraph 3 or 11) has effect as a lease or licence granted by the authority