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 4 — Registered providers
63

152
Assistance by regulator
(1)
The regulator may give financial or other assistance to a registered provider for
the purpose of preserving its position pending the agreement of proposals.
(2)
The regulator may give financial or other assistance to a registered provider, or
a manager appointed under section 149, to facilitate the implementation of
5
agreed proposals.
(3)
In particular, the regulator may—
(a)
lend staff;
(b)
arrange payment of the manager’s remuneration and expenses.
(4)
The regulator may do the following only with the Secretary of State’s
10
consent—
(a)
make grants,
(b)
make loans,
(c)
indemnify a manager,
(d)
make payments in connection with secured loans, and
15
(e)
guarantee payments in connection with secured loans.
153
Applications to court
(1)
A registered provider may apply to the High Court where the registered
provider thinks that action taken by a manager is not in accordance with the
agreed proposals.
20
(2)
A creditor of a registered provider may apply to the High Court where the
creditor thinks that action taken by a manager is not in accordance with the
agreed proposals.
(3)
The High Court may—
(a)
confirm, annul or modify an act of the manager;
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(b)
give the manager directions;
(c)
make any other order.
(4)
If a person bound by agreed proposals (P1) thinks that action by another
person (P2) breaches section 148, P1 may apply to the High Court.
(5)
The High Court may—
30
(a)
confirm, annul or modify the action;
(b)
grant relief by way of injunction, damages or otherwise.
Restructuring and dissolution
154
Company: arrangements and reconstructions
(1)
This section applies to a non-profit registered provider which is a registered
35
company.
(2)
A voluntary arrangement under Part 1 of the Insolvency Act 1986 (c. 45) in
relation to the company is effective only if the regulator has first consented.
(3)
An order under section 899 of the Companies Act 2006 (c. 46) (court sanction
for compromise or arrangement)—
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Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers
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(a)
is effective only if the regulator has first consented, and
(b)
does not take effect until a copy of the consent is delivered to the
registrar of companies.
(4)
An order under section 900 of the Companies Act 2006 (c. 46) (powers of court
to facilitate reconstruction or amalgamation) is effective only if the regulator
5
has first consented.
(5)
The requirement in section 900(6) of the Companies Act 2006 (c. 46) (sending
copy of order to registrar) is satisfied only if the copy is accompanied by a copy
of the regulator’s consent.
155
Company: conversion into industrial and provident society
10
(1)
This section applies to a non-profit registered provider which is a registered
company.
(2)
The registrar of companies may register a resolution under section 53 of the
Industrial and Provident Societies Act 1965 (c. 12) for converting the company
into an industrial and provident society only if—
15
(a)
the regulator has consented to the resolution, and
(b)
a copy of the consent accompanies the resolution as sent to the registrar.
(3)
The regulator shall register the body created by the conversion and designate
it as a non-profit organisation.
(4)
Pending registration the body shall be treated as if it were registered and
20
designated as a non-profit organisation.
156
Company: winding up
(1)
This section applies to a non-profit registered provider which is a registered
company.
(2)
A special resolution for the voluntary winding-up of the company under the
25
Insolvency Act 1986 (c. 45) is effective only if the regulator has first consented.
(3)
The requirement under section 30 of the Companies Act 2006 (c. 46) (sending
copy of resolution to registrar) is satisfied only if the copy is accompanied by a
copy of the regulator’s consent.
157
Industrial and provident society: restructuring
30
(1)
This section applies to a non-profit registered provider which is a industrial
and provident society.
(2)
The Financial Services Authority may register a resolution passed by the
society for the purposes of restructuring provisions listed in subsection (3) only
if—
35
(a)
the regulator has consented to the resolution, and
(b)
a copy of the consent accompanies the resolution as sent to the
Authority.
(3)
The following provisions of the Industrial and Provident Societies Act 1965 are
the restructuring provisions—
40
(a)
section 50 (amalgamation of societies),

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers
65

(b)
section 51 (transfer of engagements between societies), and
(c)
section 52 of that Act (conversion into or amalgamation with registered
company).
(4)
Where a resolution is registered in accordance with subsection (2), any body
created or to whom engagements are transferred—
5
(a)
must be registered by the regulator and designated as a non-profit
organisation, and
(b)
pending registration shall be treated as registered and designated as a
non-profit organisation.
158
Industrial and provident society: winding up
10
(1)
This section applies to non-profit registered provider which is an industrial
and provident society.
(2)
A resolution for the voluntary winding-up of the society under the Insolvency
Act 1986 (c. 45) is effective only if the regulator has first consented.
(3)
The requirement in section 30 of the Companies Act 2006 (c. 46) (as applied by
15
section 55 of the Industrial and Provident Societies Act 1965 and section 84(3)
of the Insolvency Act 1986) (sending copy of resolution to FSA) is satisfied only
if the copy is accompanied by a copy of the regulator’s consent.
159
Industrial and provident society: dissolution
(1)
This section applies to a non-profit registered provider which is—
20
(a)
an industrial and provident society, and
(b)
to be dissolved by instrument of dissolution in accordance with section
58 of the Industrial and Provident Societies Act 1965 (c. 12).
(2)
The Financial Services Authority may register the instrument under section
58(5), or cause notice of the dissolution to be advertised under section 58(6),
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only if—
(a)
the regulator has consented to the dissolution, and
(b)
a copy of the consent accompanies the instrument as sent to the
Authority.
160
Winding up petition by regulator
30
(1)
This section applies to a non-profit registered provider which is—
(a)
a registered company, or
(b)
an industrial and provident society.
(2)
The regulator may present a petition for the registered provider to be wound
up under the Insolvency Act 1986 on any of the following grounds.
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(3)
Ground 1 is that the registered provider is failing properly to carry out its
objects.
(4)
Ground 2 is that the registered provider is unable to pay its debts within the
meaning of section 123 of the Insolvency Act 1986.
(5)
Ground 3 is that the regulator has directed the registered provider under
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section 240 to transfer all its land to another person.

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers
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161
Transfer of property
(1)
This section applies—
(a)
where a non-profit registered provider which is an industrial and
provident society is dissolved in accordance with section 55(a) or (b) of
the Industrial and Provident Societies Act 1965 (c. 12), and
5
(b)
where a non-profit registered provider which is a registered company
is wound up under the Insolvency Act 1986 (c. 45).
(2)
Any surplus property that is available after satisfying the registered provider’s
liabilities shall be transferred—
(a)
to the regulator, or
10
(b)
if the regulator directs, to a specified registered provider.
(3)
If land belonging to the registered provider needs to be sold to satisfy its
liabilities, the regulator may discharge those liabilities so as to ensure that the
land is instead transferred in accordance with subsection (2).
(4)
Where the registered provider dissolved or wound up is a charity, a registered
15
provider may be specified under subsection (2)(b) only if it is a charity whose
objects the regulator thinks are similar to those of the original charity.
(5)
This section has effect despite anything in—
(a)
the Industrial and Provident Societies Act 1965,
(b)
the Insolvency Act 1986,
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(c)
the Companies Act 2006 (c. 46), or
(d)
the constitution of a registered provider.
162
Section 161: supplemental
(1)
This section applies to property transferred to the regulator in accordance with
section 161(2)(a).
25
(2)
The regulator may dispose of the property only to a registered provider.
(3)
Where the registered provider wound up or dissolved was a charity, the
regulator may dispose of the property only to a registered provider—
(a)
which is a charity, and
(b)
whose objects the regulator thinks are similar to those of the original
30
charity.
(4)
If the property includes land subject to a mortgage or charge, the regulator may
dispose of the land—
(a)
subject to that mortgage or charge, or
(b)
subject to a new mortgage or charge in favour of the regulator.
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163
Extension of sections 161 and 162
The Secretary of State may by regulations provide for sections 161 and 162 to
apply in relation to a registered provider which is a charity but not a registered
company—
(a)
in specified circumstances, and
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(b)
with specified modifications.

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 5 — Disposal of property
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Chapter 5
Disposal of property
Introductory
164
Overview
This Chapter makes provision about the disposal of property by registered
5
providers.
165
Power to dispose
(1)
A registered provider may dispose of land.
(2)
Subsection (1) is subject to the following provisions of this Chapter (which
include provisions requiring the regulator’s consent for certain disposals).
10
Regulator’s consent
166
Requirement of consent
(1)
Any disposal of land by a non-profit registered provider requires the
regulator’s consent unless it falls within an exception.
(2)
Any disposal of social housing by a profit-making registered provider requires
15
the regulator’s consent unless it falls within an exception.
(3)
The regulator shall not consent to a disposal by a non-profit registered
provider which it thinks is being made with a view to enabling the provider to
distribute assets to members.
(4)
The exceptions are listed in section 167.
20
167
Exceptions
(1)
This section lists exceptions to the requirement of consent in section 166.
(2)
Exception 1 is that consent is not required for disposal by a non-profit
registered provider by way of—
(a)
an assured tenancy,
25
(b)
an assured agricultural occupancy,
(c)
an arrangement that would be an assured tenancy or an assured
agricultural occupancy but for any of paragraphs 4 to 8, 12(1)(h) and
12ZA to 12B of Schedule 1 to the Housing Act 1988 (exclusions),
(d)
a secure tenancy, or
30
(e)
an arrangement that would be a secure tenancy but for any of
paragraphs 2 to 12 of Schedule 1 to the Housing Act 1985 (exclusions).
(3)
Exception 2 is that consent is not required for a disposal to which section 81 or
133 of the Housing Act 1988 applies (disposals requiring consent).
(4)
Exception 3 is that consent is not required for a disposal under Part V of the
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Housing Act 1985 (right to buy).

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 5 — Disposal of property
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(5)
Exception 4 is that consent is not required for a disposal in pursuance of a
tenant’s right to acquire under section 16 of the Housing Act 1996 (c. 52) (as
applied by section 172).
168
Procedure
(1)
Consent may be—
5
(a)
general, or
(b)
specific (whether as to particular registered providers, as to particular
property, as to particular forms of disposal or in any other way).
(2)
Consent may be retrospective.
(3)
Consent may be expressed by reference to a policy for disposals submitted by
10
a registered provider.
(4)
Consent may be conditional.
(5)
Before giving consent the regulator must consult—
(a)
the HCA,
(b)
one or more bodies appearing to it to represent the interests of
15
registered providers, and
(c)
one or more bodies appearing to it to represent the interests of tenants.
(6)
Subsection (5) does not apply to specific consent relating only to one or more
particular registered providers or properties.
169
Disposal without consent
20
(1)
A purported disposal by a registered provider is void if—
(a)
it requires the regulator’s consent, and
(b)
the regulator has not given consent.
(2)
But subsection (1) does not apply to a disposal by a non-profit registered
provider if either of the following cases applies.
25
(3)
Case 1 applies where the disposal is of land other than a dwelling.
(4)
Case 2 applies where the disposal is to one or more individuals (“the buyer”)
if—
(a)
the disposal is of a single dwelling, and
(b)
the registered provider reasonably believes at the time of the disposal
30
that the buyer intends to use the property as the buyer’s principal
residence.
Proceeds
170
Separate accounting
(1)
The accounts of a registered provider must show its net disposal proceeds, as
35
a separate “disposal proceeds fund”.
(2)
The following are net disposal proceeds—
(a)
net proceeds of sale to a tenant in pursuance of the right to acquire
conferred by section 16 of the Housing Act 1996,

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Part 2 — Regulation of Social Housing
Chapter 5 — Disposal of property
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(b)
net proceeds of sale of property in respect of which a grant was made
under section 21 of that Act,
(c)
net proceeds of sale of property in respect of which a grant was made
under section 22 of this Act in respect of discounts given by a registered
provider on disposals of dwellings to tenants,
5
(d)
grant received under section 20 or 21 of the 1996 Act,
(e)
grant received under section 22 of this Act in respect of discounts given
by a registered provider on disposals of dwellings to tenants,
(f)
repayments of discount in respect of which grant was received under
section 20 or 21 of the 1996 Act,
10
(g)
repayments of discount in respect of which grant was received under
section 22 of this Act in respect of discounts given by a registered
provider on disposals of dwellings to tenants,
(h)
other proceeds of sale specified by the regulator, and
(i)
other grants specified by the regulator.
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(3)
The regulator shall determine amounts to be deducted in determining net
proceeds of sale.
(4)
The method of constituting the disposal proceeds fund and showing it in the
accounts shall be in accordance with a direction of the regulator.
(5)
Subsections (4) to (6) of section 127 apply to a direction under this section as to
20
a direction under that section.
(6)
Sections 136 and 137 apply in relation to a direction under this section as in
relation to a direction under section 127.
(7)
Interest shall be added to the fund in accordance with a determination made
by the regulator.
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171
Use of proceeds
(1)
Sums in a registered provider’s disposal proceeds fund may be used or
allocated only in accordance with a direction by the regulator.
(2)
If at the end of a period specified by the regulator the disposal proceeds fund
includes sums which have not been allocated in accordance with subsection
30
(1), the regulator may require the registered provider to pay the sums to the
HCA.
Tenants’ rights and duties
172
Application of Housing Act 1996
(1)
The following provisions of the Housing Act 1996 (c. 52) shall continue to have
35
effect in relation to social housing in England, with the modifications set out in
subsection (3) (and any other necessary modifications).
(2)
The provisions are—
(a)
sections 11 to 12 (repayment of discount on disposal),
(b)
sections 12A and 12B (landlord’s right of first refusal),
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(c)
section 13 (disposal of property in National Park),
(d)
sections 14 and 15 (supplemental), and
(e)
sections 16 to 17 (tenant’s right to acquire).