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Housing and Regeneration Bill


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

84

 

217     

Warning

(1)   

Before giving a penalty notice to a registered provider the regulator must give

the provider a notice (a “pre-penalty warning”)—

(a)   

specifying grounds on which the regulator thinks a penalty could be

imposed,

5

(b)   

warning the provider that the regulator is considering imposing a

penalty,

(c)   

including any indication that the regulator is able to give of the likely

amount of any penalty, and

(d)   

explaining the effect of sections 218 to 222.

10

(2)   

If the regulator gives a pre-penalty 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-penalty

15

warning is given.

(4)   

A pre-penalty 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, a penalty.

20

(5)   

A pre-penalty warning may be combined with notice under one or more of

sections 207, 229, 235, 237 and 239.

218     

Representations

(1)   

A pre-penalty warning must specify a period during which the registered

provider may make representations to the regulator.

25

(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-

penalty warning.

(3)   

Representations may concern—

30

(a)   

whether a penalty should be imposed;

(b)   

the amount of any penalty that may be imposed.

(4)   

After the end of the period specified under subsection (1) the regulator shall—

(a)   

consider any representations made, and

(b)   

decide whether to impose a penalty.

35

219     

Notifying HCA

If the regulator imposes a penalty it must send a copy of the penalty notice to

the HCA.

220     

Destination

(1)   

This section applies where the regulator receives money by way of penalty.

40

 
 

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

85

 

(2)   

The regulator may deduct a sum which represents—

(a)   

the direct costs to the regulator of imposing and enforcing the penalty,

and

(b)   

a reasonable share of expenditure by the regulator which is indirectly

referable to the imposition and enforcement of the penalty.

5

(3)   

Any excess shall be paid to the HCA, to be used for purposes which appear to

it to amount to investment in social housing.

221     

Enforcement

(1)   

A penalty shall be treated as a debt owed to the regulator.

(2)   

The Treasury may make regulations authorising the regulator—

10

(a)   

to charge interest on penalty not paid during the period specified under

section 215(2)(d);

(b)   

to impose one or more additional penalties where a penalty is not paid

during that period.

(3)   

Interest and additional penalty shall be treated as penalty (and may have the

15

effect of increasing the penalty above a limit set by section 216).

(4)   

Regulations under subsection (2)(a) may provide for an interest rate to be—

(a)   

set by a specified person, or

(b)   

determined in accordance with the regulations.

(5)   

A penalty notice may include provision allowing a discount if the penalty is

20

paid on or before a date specified in the notice (falling within the period

specified under section 215(2)(d)).

(6)   

A person to whom a penalty notice is given on the ground in Case 6 of section

214 may not be prosecuted for the offence by reference to which the penalty

notice was given.

25

222     

Appeal

A registered provider who is given a penalty notice may appeal to the High

Court against—

(a)   

the imposition of the penalty,

(b)   

its amount, or

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(c)   

both.

Compensation

223     

Overview

This group of sections allows the regulator to award compensation to a victim

of a failure on the part of a registered provider.

35

224     

Grounds for award

(1)   

The regulator may require a registered provider to pay compensation if the

regulator is satisfied that—

(a)   

either of the following cases applies, and

 
 

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

86

 

(b)   

the award of compensation 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 registered provider has given an undertaking under section

5

125 and failed to comply with it.

225     

Nature

(1)   

Compensation in respect of a failure may be awarded to one or more persons

who have suffered as a result of the failure.

(2)   

But an award may be made only to—

10

(a)   

a specified tenant or occupier of social housing provided by the

registered provider,

(b)   

each member of a specified class of tenants or occupiers of social

housing provided by the registered provider, or

(c)   

each member of the class of tenants and occupiers of social housing

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provided by the registered provider.

226     

Social housing ombudsman compensation

(1)   

The regulator may not award compensation to a person in respect of a matter

if an ombudsman appointed by virtue of section 124 has awarded

compensation to the person in respect of the matter.

20

(2)   

But if compensation awarded by an ombudsman by virtue of section 124 has

not been paid as required, the regulator may award compensation.

227     

Imposition

(1)   

Compensation is awarded by the regulator giving notice (a “compensation

notice”) to—

25

(a)   

the registered provider, and

(b)   

the person to be compensated.

(2)   

The notice must specify—

(a)   

the grounds on which the compensation is awarded,

(b)   

the amount of the compensation,

30

(c)   

the person to be compensated,

(d)   

any interest or additional compensation which, by virtue of section

231(2), is payable in the event of late payment, and

(e)   

a period within which it must be paid.

(3)   

The notice may require the registered provider to publish information about

35

the compensation award in a specified manner.

(4)   

The notice must explain the effect of sections 231(1) and (3) and 232.

(5)   

The Secretary of State—

(a)   

shall make regulations about the period under subsection (2)(e),

(b)   

may make other regulations about the form and content of a

40

compensation notice, and

 
 

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

87

 

(c)   

may make regulations about the manner in which a compensation

notice is given.

228     

Impact

(1)   

This section applies when the regulator is considering—

(a)   

whether to award compensation, or

5

(b)   

the amount of compensation to award.

(2)   

The regulator must take account of any information available to it about the

financial situation of the registered provider.

(3)   

The regulator must consider the likely impact of the compensation on the

registered provider’s ability to provide services.

10

(4)   

In particular, the regulator must aim to avoid—

(a)   

jeopardising the financial viability of the registered provider,

(b)   

preventing the registered provider from honouring financial

commitments, or

(c)   

preventing the registered provider from taking action to remedy the

15

matters on the grounds of which the compensation might be awarded.

229     

Warning

(1)   

Before giving a compensation notice to a registered provider the regulator

must give the provider a notice (a “pre-compensation warning”)—

(a)   

specifying grounds on which the regulator thinks compensation could

20

be awarded,

(b)   

warning the provider that the regulator is considering awarding

compensation to a specified person,

(c)   

including any indication that the regulator is able to give of the likely

amount of any compensation, and

25

(d)   

explaining the effect of sections 230 to 232.

(2)   

Before giving a pre-compensation warning the regulator must consult the

person appointed by virtue of section 124 as the ombudsman for the scheme of

which the registered provider is a member.

(3)   

If the regulator gives a pre-compensation warning it must send a copy to—

30

(a)   

the HCA, and

(b)   

any other persons it thinks appropriate.

(4)   

For the purposes of subsection (3)(b) the regulator shall consider, in particular,

any person who provided information as a result of which the pre-

compensation warning is given.

35

(5)   

A pre-compensation 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, awarding

compensation.

40

(6)   

A pre-compensation warning may be combined with notice under one or more

of sections 207, 217, 235, 237 and 239.

 
 

 
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