Housing and Regeneration Bill

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Housing and Regeneration Bill

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 3 — Registration
47

115
De-registration: voluntary
(1)
A registered provider may ask the regulator to remove it from the register.
(2)
The regulator may comply with a request—
(a)
on the grounds that the registered provider no longer is or intends to be
a provider of social housing in England,
5
(b)
on the grounds that the registered provider is subject to regulation by
another authority whose control is likely to be sufficient, or
(c)
on some other grounds that appear to the regulator to make de-
registration appropriate.
(3)
Before deciding whether or not to comply, the regulator must consult any local
10
authority in whose area the registered provider acts.
(4)
Having decided whether or not to remove the registered provider the regulator
must notify—
(a)
the provider, and
(b)
any authority consulted.
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116
Notice
(1)
As soon as is reasonably practicable after registering or de-registering a body
the regulator shall notify—
(a)
in the case of a registered charity, the Charity Commission,
(b)
in the case of an industrial and provident society, the Financial Services
20
Authority, and
(c)
in the case of a registered company (whether or not also a registered
charity), the registrar of companies for England and Wales.
(2)
A notice of registration shall specify whether the person registered is
designated as a non-profit or profit-making organisation.
25
(3)
If the designation changes, the regulator shall notify any person notified of the
registration.
(4)
A person to whom notice is given under this section must keep a record of it.
117
Appeal
(1)
A body may appeal to the High Court against a decision of the regulator—
30
(a)
to refuse to register it,
(b)
to de-register it, or
(c)
to refuse to de-register it.
(2)
The regulator shall not de-register a body while an appeal is pending.

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers
48

Chapter 4
Registered providers
General provisions
118
Payments to members etc.
(1)
This section restricts the making of gifts, and the payment of dividends and
5
bonuses, by a non-profit registered provider to—
(a)
a member or former member of the registered provider,
(b)
a member of the family of a member or former member,
(c)
a company which has as a director a person within paragraph (a) or (b).
(2)
A gift may be made, and a dividend or bonus may be paid, only if it falls within
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one of the following permitted classes.
(3)
Class 1 is payments which—
(a)
are in accordance with the constitution of the registered provider, and
(b)
are due as interest on capital lent to the provider or subscribed in its
shares.
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(4)
Class 2 is payments which—
(a)
are paid by a fully mutual housing association (within the meaning of
section 1(2) of the Housing Associations Act 1985 (c. 69)),
(b)
are paid to former members of the association, and
(c)
are due under—
20
(i)
tenancy agreements with the association, or
(ii)
agreements under which the former members became members
of the association.
(5)
Class 3 is payments which—
(a)
are in accordance with the constitution of the registered provider
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making the payment (“the payer”), and
(b)
are made to a registered provider which is a subsidiary or associate of
the payer.
(6)
If a registered company or industrial and provident society contravenes this
section—
30
(a)
it may recover the wrongful gift or payment as a debt from the
recipient, and
(b)
the regulator may require it to take action to recover the gift or
payment.
119
Disposal of property
35
Chapter 5 makes provision about disposal of property.
120
Complaints
Section 51 of, and Schedule 2 to, the Housing Act 1996 (c. 52) (schemes for
investigation of complaints by housing ombudsman) continue to have effect,
with the following amendments.
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Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers
49

Provision or expression
Substitution

Section 51(2)(a)
”(a) a registered provider, or former

registered provider, within the

meaning of Part 2 of the Housing and

Regeneration Act 2008;

5

(aa) a former registered social

landlord;”

“Relevant Authority”
“Regulator of Social Housing”

121
Voluntary undertaking
(1)
A registered provider may give the regulator an undertaking in respect of any
10
matter concerning social housing.
(2)
The regulator may prescribe a procedure to be followed in giving an
undertaking.
(3)
In exercising a power under Chapter 6 or 7 the regulator must have regard to
any undertaking offered or given.
15
(4)
The regulator may found a decision about whether to exercise a power under
Chapter 6 or 7 wholly or partly on the extent to which an undertaking has been
honoured.
122
Sustainable community strategies
If invited by a local authority to participate in the preparation or modification
20
of a sustainable community strategy under section 4 of the Local Government
Act 2000 (c. 22), a registered provider must co-operate with the local authority.
Accounts
123
Directions
(1)
The regulator may give directions to non-profit registered providers about the
25
preparation of their accounts.
(2)
The power must be exercised with a view to ensuring that accounts—
(a)
are prepared in proper form, and
(b)
present a true and fair view of—
(i)
the state of affairs of each registered provider in relation to its
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social housing activities, and
(ii)
the disposition of funds and assets which are, or have been, in
its hands in connection with those activities.
(3)
A direction may require a registered charity to use a specified method for
distinguishing in its accounts between—
35
(a)
matters relating to its social housing activities, and
(b)
other matters.
(4)
A direction—
(a)
may make provision that applies generally or only to specified cases,
circumstances or registered providers, and
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Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers
50

(b)
may make different provision for different cases, circumstances or
registered providers.
(5)
A direction that relates to more than one registered provider may be given
only—
(a)
with the Secretary of State’s consent, and
5
(b)
after consulting one or more bodies appearing to the regulator to
represent the interests of registered providers.
(6)
The regulator shall make arrangements for bringing a direction to the attention
of every registered provider to which it applies.
124
Submission to regulator
10
(1)
Each non-profit registered provider shall send a copy of its accounts to the
regulator within the period of 6 months beginning with the end of the period
to which the accounts relate.
(2)
The accounts must be accompanied by—
(a)
an auditor’s report, or
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(b)
in the case of accounts that by virtue of an enactment are not subject to
audit, any report that is required to be prepared in respect of the
accounts by virtue of an enactment.
(3)
The report must specify whether the accounts comply with any relevant
directions under section 123.
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125
Non-audited industrial and provident society
(1)
This section applies to a non-profit registered provider which is an industrial
and provident society.
(2)
Section 9A of the Friendly and Industrial and Provident Societies Act 1968
(c. 55) applies to the society as if subsection (1)(b) were omitted (accountant’s
25
report required only where turnover exceeds specified sum).
(3)
The regulator may require the society to—
(a)
appoint a qualified auditor to audit the society’s accounts and balance
sheet for any year of account in respect of which section 4 of the
Friendly and Industrial and Provident Societies Act 1968 (audit
30
requirements) has been disapplied (see section 4A of that Act), and
(b)
send a copy of the auditor’s report to the regulator by a specified date.
(4)
A requirement under subsection (3) may be imposed only during the year of
account following the year to which the accounts relate.
(5)
In this section—
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“qualified auditor” means a person who is a qualified auditor for the
purposes of Friendly and Industrial and Provident Societies Act 1968,
and
“year of account” has the meaning given by section 21(1) of that Act.
126
Charity
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(1)
This section applies to a non-profit registered provider which is a registered
charity.

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers
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(2)
The charity shall—
(a)
keep proper accounting records of its transactions and its assets and
liabilities in relation to its housing activities, and
(b)
maintain a satisfactory system of control of those records, its cash
holdings and its receipts and remittances in relation to those activities.
5
(3)
For each period of account the charity shall prepare—
(a)
a revenue account giving a true and fair view of the charity’s income
and expenditure during the period, so far as relating to its housing
activities, and
(b)
a balance sheet giving a true and fair view of the state of affairs of the
10
charity as at the end of the period.
(4)
The revenue account and balance sheet must be signed by at least two directors
or trustees.
(5)
“Period of account” means—
(a)
a period of 12 months, or
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(b)
such other period not less than 6 months nor more than 18 as the charity
may, with the consent of the regulator, determine.
(6)
This section does not affect any obligation under sections 41 to 45 of the
Charities Act 1993 (c. 10) (charity accounts).
127
Charity: audit
20
(1)
This section applies in relation to the accounts of a charity under section 126(3).
(2)
If Condition 1 or 2 is met, the charity shall cause a qualified person to audit the
accounts and report on them in accordance with section 128.
(3)
If neither Condition is met, the charity shall cause a qualified person (“the
reporting accountant”) to report on the accounts in accordance with section
25
129.
(4)
Condition 1 is met if the accounts relate to a period during which the charity’s
gross income arising in connection with its housing activities was greater than
the sum specified in section 43(1)(a) of the Charities Act 1993.
(5)
Condition 2 is met if—
30
(a)
the accounts relate to a period during which the charity’s gross income
arising in connection with its housing activities was greater than the
accounts threshold as defined by section 43(1) of the Charities Act 1993,
and
(b)
at the end of the period the aggregate value of its assets (before
35
deduction of liabilities) in respect of its housing activities was greater
than the sum specified in section 43(1)(b).
(6)
“Gross income” has the same meaning as in section 43 of the Charities Act 1993.
(7)
“Qualified person” means a person professionally qualified as an accountant.
128
Charity: auditor’s report
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(1)
An auditor appointed for the purposes of section 127(2) or 130(2) in respect of
a charity’s accounts shall make a report to the charity in accordance with this
section.

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers
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(2)
The report must state—
(a)
whether the revenue account gives a true and fair view of the charity’s
income and expenditure, so far as relating to its housing activities, and
(b)
whether the balance sheet gives a true and fair view of the state of
affairs of the charity as at the end of the period to which the accounts
5
relate.
(3)
The report must give the name of the auditor and be signed.
(4)
The auditor shall, in preparing the report, carry out such investigations as are
necessary to form an opinion as to—
(a)
whether the charity has complied with section 126(2) during the period
10
to which the accounts relate, and
(b)
whether the accounts are in accordance with accounting records kept
under section 126(2)(a).
(5)
If the auditor thinks that the charity has not complied section 126(2) or that the
accounts are not in accordance with its accounting records, that must be stated
15
in the report.
(6)
If the auditor fails to obtain all the information and explanations which the
auditor thinks necessary for the purposes of the audit, that must be stated in
the report.
129
Charity: accountant’s report
20
(1)
A reporting accountant appointed for the purposes of section 127(3) in respect
of a charity’s accounts shall make a report to the charity in accordance with this
section.
(2)
The report must state whether the accounts are in accordance with accounting
records kept under section 126(2)(a).
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(3)
On the basis of the information in the accounting records the report must also
state whether—
(a)
the accounts comply with the requirements of the Charities Act 1993;
(b)
section 127(3) applied in respect of the accounts.
(4)
The report must give the name of the reporting accountant and be signed.
30
(5)
If the reporting accountant fails to obtain all the information and explanations
which the reporting accountant thinks necessary for the purposes of preparing
the report, that must be stated in the report.
130
Charity: extraordinary audit
(1)
This section applies where, in accordance with section 127(3), a charity
35
appoints a reporting accountant to prepare a report in respect of any accounts.
(2)
The regulator may require the charity to—
(a)
cause a qualified person to audit the accounts and prepare a report on
them in accordance with section 128, and
(b)
send a copy of the report to the regulator by a specified date.
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(3)
A requirement under subsection (2) may be imposed only during the period of
account following the period to which the accounts relate.

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers
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(4)
In this section—
“period of account” has the meaning given by section 126(5), and
“qualified person” has the meaning given by section 127(7).
131
Charity: auditor’s powers
(1)
This section applies to a person who is appointed by a charity for the purposes
5
of section 127(2) or (3) or 130(2).
(2)
The charity must grant the person access to its documents, if or in so far as they
relate to social housing.
(3)
An officer of the charity must provide such information or explanations as the
person thinks necessary.
10
132
Offences
(1)
A registered provider commits an offence if it fails, without reasonable excuse,
to comply with—
(a)
a direction under section 123,
(b)
a provision listed in subsection (2), or
15
(c)
a requirement imposed under a provision listed in subsection (3).
(2)
The provisions referred to in subsection (1)(b) are—
(a)
section 124;
(b)
section 126;
(c)
section 127.
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(3)
The provisions referred to in subsection (1)(c) are—
(a)
section 125;
(b)
section 130.
(4)
If a registered provider fails to comply with a direction, provision or
requirement mentioned in subsection (1) every officer of the registered
25
provider is guilty of an offence.
(5)
It is a defence for an officer to show that the officer did everything that could
reasonably have been expected to ensure compliance by the registered
provider.
(6)
A person guilty of an offence under this section is liable on summary
30
conviction to a fine not exceeding level 5 on the standard scale.
(7)
Proceedings for an offence may be brought only by or with the consent of—
(a)
the regulator, or
(b)
the Director of Public Prosecutions.
133
High Court
35
(1)
If a registered provider fails to comply with a direction, provision or
requirement mentioned in section 132(1), the High Court may on the
application of the regulator make an order for the purpose of remedying the
failure.
(2)
An order may include provision about costs.
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