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 6 — Regulatory powers
79

200
Companies: change of articles
(1)
This section applies to a registered company.
(2)
The company must notify the regulator if it changes its—
(a)
name, or
(b)
registered office.
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(3)
An amendment of the company’s articles of association is effective only if the
regulator has first consented.
(4)
The regulator may not consent to an amendment which it thinks would turn
the company into a profit-making organisation.
(5)
The requirement in section 30 of the Companies Act 2006 (c. 46) (sending copy
10
of resolution to registrar) is satisfied only if the copy is accompanied by a copy
of the regulator’s consent.
Guidance
201
Use of intervention powers
(1)
The regulator shall give registered providers guidance on how it uses and
15
intends to use powers under this Chapter and Chapter 7.
(2)
The regulator shall have regard to the guidance in exercising those powers.
202
Consultation
Before giving guidance the regulator must consult—
(a)
one or more bodies appearing to it to represent the interests of
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registered providers,
(b)
one or more bodies appearing to it to represent the interests of tenants,
and
(c)
the HCA.
Managers of social housing
25
203
Accreditation
(1)
The regulator may operate a scheme for the purpose of accrediting persons
who provide services in connection with the management of social housing.
(2)
The regulator may approve a scheme operated by someone else for that
purpose.
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(3)
Approval may be withdrawn.
(4)
A scheme may include provision about—
(a)
eligibility for accreditation;
(b)
standards to be met by accredited persons (which may operate by
reference to standards under section 180);
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(c)
monitoring compliance;
(d)
complaints against accredited persons;
(e)
renewal, suspension and withdrawal of accreditation.

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 7 — Enforcement powers
80

(5)
Accreditation, or continued accreditation, may be conditional on the payment
of fees.
(6)
Standards under section 180 may refer to accreditation under this section.
Chapter 7
Enforcement powers
5
Enforcement notice
204
Overview
This group of sections allows the regulator to require a registered provider to
take specified action to resolve a specified failure or other problem.
205
Grounds for giving notice
10
(1)
The regulator may give an enforcement notice to a registered provider if the
regulator is satisfied that—
(a)
any of the following cases applies, and
(b)
giving an enforcement notice is appropriate (whether it is likely to be
sufficient in itself or a prelude to further action).
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(2)
Case 1 is where the registered provider has failed to meet a standard under
section 180 or 181.
(3)
Case 2 is where the affairs of the registered provider have been mismanaged.
(4)
Case 3 is where the registered provider has failed to comply with an earlier
enforcement notice.
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(5)
Case 4 is where the registered provider has failed to publish information in
accordance with a requirement under section 215(3) or 227(3).
(6)
Case 5 is where the interests of tenants of the registered provider require
protection.
(7)
Case 6 is where the assets of the registered provider require protection.
25
(8)
Case 7 is where the registered provider has given an undertaking under section
125 and failed to comply with it.
(9)
Case 8 is where the registered provider has failed to pay an annual fee under
section 117(2).
(10)
Case 9 is where an offence under this Part has been committed by the
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registered provider.
(11)
Where the regulator is satisfied that an offence under this Part has been
committed in respect of a registered provider but by another person (such as a
member, employee or agent of the registered provider)—
(a)
Case 9 applies,
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(b)
the regulator may give an enforcement notice to the other person, and
(c)
this Chapter applies with the substitution of references to that other
person for references to the registered provider.

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 7 — Enforcement powers
81

206
Content
(1)
An enforcement notice must—
(a)
specify the grounds on which it is given,
(b)
specify the action the regulator wants the registered provider to take in
response to the notice,
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(c)
specify when the action is to be taken (which may be immediately on
receipt of the notice), and
(d)
explain the effect of sections 210 to 212.
(2)
The action specified in an enforcement notice may include publishing the
notice in a specified manner.
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207
Warning
(1)
Before giving an enforcement notice to a registered provider the regulator
must give the provider a notice (a “pre-enforcement warning”)—
(a)
specifying grounds on which the regulator thinks an enforcement
notice could be given,
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(b)
warning the provider that the regulator is considering giving an
enforcement notice in respect of specified matters,
(c)
specifying the action that the enforcement notice might require the
registered provider to take, and
(d)
explaining the effect of sections 208 to 212.
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(2)
If the regulator gives a pre-enforcement warning it must send a copy to—
(a)
the HCA, and
(b)
any other persons it thinks appropriate.
(3)
For the purposes of subsection (2)(b) the regulator shall consider, in particular,
any person who provided information as a result of which the pre-enforcement
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warning is given.
(4)
A pre-enforcement warning must—
(a)
refer to section 125 (voluntary undertaking), and
(b)
indicate whether or to what extent the regulator would accept a
voluntary undertaking instead of, or in mitigation of, an enforcement
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notice.
(5)
A pre-enforcement warning may be combined with notice under one or more
of sections 217, 229, 235, 237 and 239.
208
Representations
(1)
A pre-enforcement warning must specify a period during which the registered
35
provider may make representations to the regulator.
(2)
The period must—
(a)
be a period of at least 28 days, and
(b)
begin with the date on which the registered provider receives the pre-
enforcement warning.
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(3)
After the end of the period the regulator shall—
(a)
consider any representations made, and
(b)
decide whether to give an enforcement notice.

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 7 — Enforcement powers
82

209
Notifying HCA
If the regulator gives an enforcement notice it must send a copy to the HCA.
210
Appeal
A registered provider who is given an enforcement notice may appeal to the
High Court.
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211
Withdrawal
The regulator may withdraw an enforcement notice by notice to the registered
provider.
212
Sanction
(1)
If a registered provider does not comply with an enforcement notice the
10
regulator shall consider exercising another power under Chapter 6 or this
Chapter.
(2)
In the case of an enforcement notice given to a person other than the registered
provider by virtue of section 205(11), the regulator may only—
(a)
exercise the power to issue a penalty notice to the person in accordance
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with the next group of sections, or
(b)
take steps to have the person prosecuted for the offence by reference to
which the enforcement notice was given.
(3)
A person to whom an enforcement notice is given on the ground in Case 9 of
section 205 may not be prosecuted for the offence by reference to which the
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enforcement notice was given unless the person fails to comply with the
enforcement notice.
Penalty
213
Overview
This group of sections allows the regulator to penalise failures on the part of
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registered providers by the imposition of fines.
214
Grounds for imposition
(1)
The regulator may require a registered provider to pay a penalty if the
regulator is satisfied that—
(a)
any of the following cases applies, and
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(b)
the imposition of a penalty is appropriate (whether or not as part of a
response including other action).
(2)
Case 1 is where the registered provider has failed to meet a standard under
section 180 or 181.
(3)
Case 2 is where the affairs of the registered provider have been mismanaged.
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(4)
Case 3 is where the registered provider has failed to comply with an
enforcement notice.

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 7 — Enforcement powers
83

(5)
Case 4 is where the registered provider has given an undertaking under section
125 and failed to comply with it.
(6)
Case 5 is where the registered provider has failed to pay an annual fee under
section 117(2).
(7)
Case 6 is where an offence under this Part has been committed by the
5
registered provider.
(8)
Where the regulator is satisfied that an offence under this Part has been
committed in respect of a registered provider but by another person (such as a
member, employee or agent of the registered provider)—
(a)
Case 6 applies,
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(b)
the regulator may require the other person to pay a penalty, and
(c)
this Chapter applies with the substitution of references to that other
person for references to the registered provider.
(9)
In order to rely on Case 6 the regulator must be satisfied beyond reasonable
doubt that it applies.
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215
Imposition
(1)
A penalty is imposed by the regulator giving notice (a “penalty notice”) to the
registered provider.
(2)
The notice must specify—
(a)
the grounds on which the penalty is imposed,
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(b)
the amount of the penalty,
(c)
how the penalty must be paid,
(d)
a period within which it must be paid, and
(e)
any interest or additional penalty which, by virtue of section 221(2), is
payable in the event of late payment.
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(3)
The notice may require the registered provider to publish information about
the penalty in a specified manner.
(4)
The notice must explain the effect of sections 221(1), (3) and (6) and 222.
(5)
The Secretary of State—
(a)
shall make regulations about the period under subsection (2)(d),
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(b)
may make other regulations about the form and content of a penalty
notice, and
(c)
may make regulations about the manner in which a penalty notice is
given.
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Amount
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(1)
The amount of a penalty imposed on the ground specified in Case 6 of section
214 may not exceed the maximum amount of fine that a magistrates’ court
could impose for the relevant offence.
(2)
The amount of a penalty imposed on the ground specified in any other Case of
that section may not exceed £5,000.
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(3)
The Secretary of State may by order amend the amount specified in subsection
(3).