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
46

112
The register
(1)
The regulator shall maintain a register of providers of social housing.
(2)
The regulator shall make the register available for inspection by the public.
Eligibility
113
Eligibility for registration
5
(1)
An English body is eligible for registration if—
(a)
it satisfies the following conditions, and
(b)
it does not fall within the exceptions in section 114.
(2)
Condition 1 is that the body—
(a)
is a provider of social housing in England, or
10
(b)
intends to become a provider of social housing in England.
(3)
Condition 2 is that the body satisfies any relevant criteria set by the regulator
as to—
(a)
its financial situation,
(b)
its constitution, and
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(c)
other arrangements for its management.
(4)
Before setting criteria the regulator must consult—
(a)
the HCA,
(b)
one or more bodies appearing to it to represent the interests of
registered providers, and
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(c)
one or more bodies appearing to it to represent the interests of tenants.
114
Local authority non-registrable bodies
(1)
This section sets out the exceptions to section 113(1).
(2)
Exception 1 is a local housing authority within the meaning of section 1 of the
Housing Act 1985 (c. 68).
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(3)
Exception 2 is a county council.
(4)
Exception 3 is a person controlled by an authority within Exception 1 or 2.
(5)
The Secretary of State may make regulations defining when a person is
controlled by an authority for the purpose of Exception 3.
(6)
The definition may be expressed by reference to a definition for the time being
30
given in a document identified by regulations under section 21(2)(b) of the
Local Government Act 2003 (accounting practices for local authorities).
115
Profit-making and non-profit organisations
(1)
Each entry in the register shall designate the body registered as either—
(a)
a non-profit organisation, or
35
(b)
a profit-making organisation.
(2)
A body is a non-profit organisation if it is a registered or non-registrable
charity.

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

(3)
A body is also a non-profit organisation if it satisfies the following conditions.
(4)
Condition 1 is that the body—
(a)
does not trade for profit, or
(b)
is prohibited by its constitution from issuing capital with interest or
dividend at a rate exceeding that prescribed under section 1(1)(b) of the
5
Housing Associations Act 1985 (c. 69).
(5)
Condition 2 is that a purpose of the body is the provision or management of
housing.
(6)
Condition 3 is that any other purposes of the body are connected with or
incidental to the provision of housing.
10
(7)
The Secretary of State may make regulations providing that a specified
purpose is to be, or not to be, treated as connected with or incidental to the
provision of housing.
(8)
A body which is not a non-profit organisation under subsection (2) or (3) is a
profit-making organisation.
15
(9)
If the regulator thinks that what was a profit-making organisation has become
a non-profit organisation, the regulator must change the registered designation
accordingly.
Procedure
116
Entry
20
(1)
The regulator shall register anyone who—
(a)
is eligible for registration, and
(b)
applies to be registered.
(2)
The regulator may make provision about—
(a)
the form of an application;
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(b)
the information to be contained in it or provided with it;
(c)
the manner in which an application is to submitted;
(d)
the consequences of failure to comply with provision under paragraphs
(a) to (c).
(3)
This section is subject to section 117 (fees).
30
(4)
Once entered a body remains registered unless and until removed under
section 118 or 119.
(5)
It shall be presumed for all purposes that a person entered in the register is
eligible for registration while the registration lasts (irrespective of whether and
why the person is later removed from the register).
35
117
Fees
(1)
The regulator may make initial registration conditional upon payment of a fee.
(2)
The regulator may make continued registration conditional upon payment of
an annual fee.
(3)
The regulator shall—
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Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 3 — Registration
48

(a)
prescribe the amount of a fee, and
(b)
make provision about the periods during which and in respect of which
annual fees are payable.
(4)
The regulator may set different fees, and make different provision, for different
cases or circumstances.
5
(5)
Fees must be set in accordance with principles which the regulator prepares
and publishes and which are designed to ensure that so far as is reasonably
practicable—
(a)
fee income matches expenditure on the performance of functions,
(b)
each fee is reasonable and proportionate to the costs to which it relates,
10
and
(c)
actual or potential registered providers can see the relationship
between the amount of a fee and the costs to which it relates.
(6)
The principles may provide for specified expenditure or potential expenditure
under section 97 or otherwise to be disregarded for the purpose of subsection
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(5)(a).
(7)
In preparing (or revising) the principles the regulator shall consult—
(a)
the Secretary of State, and
(b)
persons appearing to the regulator to represent the interests of fee-
payers.
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(8)
The regulator’s accounts shall show—
(a)
fees received, and
(b)
fees outstanding.
118
De-registration: compulsory
(1)
The regulator may remove from the register a body which the regulator
25
thinks—
(a)
is no longer eligible for registration,
(b)
has ceased to carry out activities, or
(c)
has ceased to exist.
(2)
Before removing a body under subsection (1)(a) or (b) the regulator must—
30
(a)
take all reasonable steps to give the body at least 14 days’ notice, and
(b)
consider any representations it makes in that period.
(3)
After removing a body under subsection (1)(a) or (b) the regulator must take
all reasonable steps to notify the body.
119
De-registration: voluntary
35
(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,
(b)
on the grounds that the registered provider is subject to regulation by
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another authority whose control is likely to be sufficient, or
(c)
on the grounds that the registered provider meets any relevant criteria
for de-registration set by the regulator.

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 3 — Registration
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(3)
Before deciding whether or not to comply, the regulator must consult such
local authorities in whose area the registered provider acts as it thinks
appropriate.
(4)
The regulator shall not comply with a request by a non-profit registered
provider if it thinks that removal is sought with a view to enabling the
5
registered provider to distribute assets to members.
(5)
In deciding whether or not to comply, the regulator must (in particular) have
regard to—
(a)
any conditions imposed in connection with disposal consents given to
the registered provider under Chapter 5, and
10
(b)
any conditions imposed in connection with financial assistance given to
the registered provider under any enactment.
(6)
Having decided whether or not to remove the registered provider the regulator
must notify—
(a)
the provider, and
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(b)
any authority consulted.
(7)
The regulator shall publish criteria set for the purposes of subsection (2)(c).
120
Notice
(1)
As soon as is reasonably practicable after registering or de-registering a body
the regulator shall notify—
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(a)
in the case of a registered charity, the Charity Commission,
(b)
in the case of an industrial and provident society, the Financial Services
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.
25
(2)
A notice of registration shall specify whether the person registered is
designated as a non-profit or profit-making organisation.
(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.
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121
Appeal
(1)
A body may appeal to the High Court against a decision of the regulator—
(a)
to refuse to register it,
(b)
to de-register it, or
(c)
to refuse to de-register it.
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(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
50

Chapter 4
Registered providers
General provisions
122
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
10
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
25
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.
123
Disposal of property
35
Chapter 5 makes provision about disposal of property.
124
Complaints
(1)
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
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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”

“Housing Corporation”
“Regulator of Social Housing”

(2)
In paragraph 11(4) of Schedule 2 to that Act (grants), omit—
10
(a)
“or the Housing Corporation”, and
(b)
“or, as the case may be, the Housing Corporation”.
125
Voluntary undertaking
(1)
A registered provider may give the regulator an undertaking in respect of any
matter concerning social housing.
15
(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.
(4)
The regulator may found a decision about whether to exercise a power under
20
Chapter 6 or 7 wholly or partly on the extent to which an undertaking has been
honoured.
126
Sustainable community strategies
If invited by a local authority to participate in the preparation or modification
of a sustainable community strategy under section 4 of the Local Government
25
Act 2000 (c. 22), a registered provider must co-operate with the local authority.
Accounts
127
Directions
(1)
The regulator may give directions to non-profit registered providers about the
preparation of their accounts.
30
(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
social housing activities, and
35
(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—

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers
52

(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
5
(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
after consulting one or more bodies appearing to the regulator to represent the
interests of registered providers.
10
(6)
The regulator shall make arrangements for bringing a direction to the attention
of every registered provider to which it applies.
128
Submission to regulator
(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
15
to which the accounts relate.
(2)
The accounts must be accompanied by—
(a)
an auditor’s report, or
(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
20
accounts by virtue of an enactment.
(3)
The report must specify whether the accounts comply with any relevant
directions under section 127.
129
Non-audited industrial and provident society
(1)
This section applies to a non-profit registered provider which is an industrial
25
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
report required only where turnover exceeds specified sum).
(3)
The regulator may require the society to—
30
(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
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.
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(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—
“qualified auditor” means a person who is a qualified auditor for the
purposes of Friendly and Industrial and Provident Societies Act 1968,
40
and
“year of account” has the meaning given by section 21(1) of that Act.