Localism Bill

House of Commons

Session 2010 - 11
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Other Bills before Parliament

Localism Bill

Localism Bill
Schedule 16 — Transfer of functions from the Office for Tenants and Social Landlords to the Homes and Communities Agency
Part 1 — Amendments to the Housing and Regeneration Act 2008
345

Fundamental objectives
92K
Fundamental objectives
(1)
The regulator must perform its functions with a view to achieving (so
far as is possible)—
(a)
the economic regulation objective, and
5
(b)
the consumer regulation objective.
(2)
The economic regulation objective is—
(a)
to ensure that registered providers of social housing are
financially viable and properly managed, and perform their
functions efficiently and economically,
10
(b)
to support the provision of social housing sufficient to meet
reasonable demands (including by encouraging and
promoting private investment in social housing),
(c)
to ensure that value for money is obtained from public
investment in social housing,
15
(d)
to ensure that an unreasonable burden is not imposed
(directly or indirectly) on public funds, and
(e)
to guard against the misuse of public funds.
(3)
The consumer regulation objective is—
(a)
to support the provision of social housing that is well-
20
managed and of appropriate quality,
(b)
to ensure that actual or potential tenants of social housing
have an appropriate degree of choice and protection,
(c)
to ensure that tenants of social housing have the opportunity
to be involved in its management and to hold their landlords
25
to account, and
(d)
to encourage registered providers of social housing to
contribute to the environmental, social and economic well-
being of the areas in which the housing is situated.
(4)
The objectives are referred to in this Part as the regulator’s
30
fundamental objectives.
(5)
The regulator must exercise its functions in a way that—
(a)
minimises interference, and
(b)
(so far as is possible) is proportionate, consistent, transparent
and accountable.”
35
27
In section 93(1) (the regulator: general functions) for “conferred on it by this
Part or another enactment” substitute “of the regulator”.
28
Omit section 99 (the regulator: remuneration).
29
In section 100 (charging)—
(a)
at the beginning insert “(1)”, and
40
(b)
at the end of the subsection (1) so formed insert—
“(2)
The functions of billing for and receiving the payment of
charges under this section are exercisable by the HCA rather
than by the HCA acting through its Regulation Committee.”
30
Omit section 101 (the regulator: assistance by Secretary of State).
45

Localism Bill
Schedule 16 — Transfer of functions from the Office for Tenants and Social Landlords to the Homes and Communities Agency
Part 1 — Amendments to the Housing and Regeneration Act 2008
346

31
Omit section 102 (the regulator: borrowing).
32
Omit section 103 (the regulator: accounts).
33
Omit section 104 (the regulator: financial year).
34
Omit section 105 (the regulator: co-operation with the HCA).
35
Omit section 106 (the regulator: direction to the HCA).
5
36
In section 112(4) (duty to consult before setting criteria for voluntary
registration) omit paragraph (a).
37    (1)
Section 117 (the regulator: fees) is amended as follows.
      (2)
In subsection (5)(a) after “the performance of” insert “the regulator’s”.
      (3)
In subsection (9) for “regulator’s” substitute “HCA’s”.
10
      (4)
After that subsection insert—
“(10)
The functions of billing for and receiving the payment of fees under
this section are exercisable by the HCA rather than by the HCA
acting through its Regulation Committee.”
38
In section 145 (moratorium) omit subsection (4).
15
39    (1)
Section 146 (duration of moratorium) is amended as follows.
      (2)
In subsection (4)—
(a)
at the end of paragraph (a) insert “and”, and
(b)
omit paragraph (c).
      (3)
Omit subsection (8).
20
40
In section 147(4) (further moratorium)—
(a)
at the end of paragraph (a) insert “and”, and
(b)
omit paragraph (c).
41
In section 174(5) (procedure for consent to disposal of social housing) omit
paragraph (a).
25
42
In section 196(1) (consultation on standards and codes of practice) omit
paragraph (f).
43
In section 197(4) (direction by Secretary of State) omit paragraph (b).
44
In section 202 (inspections: supplemental) after subsection (7) insert—
“(8)
The functions of billing for and receiving the payment of fees under
30
this section are exercisable by the HCA rather than by the HCA
acting through its Regulation Committee.”
45
In section 216 (consultation on use of intervention powers) omit paragraph
(e).
46
In section 222 (notification of use of enforcement notice) omit paragraph (a).
35
47
In section 230(2) (pre-penalty warning) omit paragraph (a).
48
Omit section 232 (duty to notify HCA of penalty notice).
49
In section 242(3) (pre-compensation warning) omit paragraph (a).

Localism Bill
Schedule 16 — Transfer of functions from the Office for Tenants and Social Landlords to the Homes and Communities Agency
Part 1 — Amendments to the Housing and Regeneration Act 2008
347

50    (1)
Section 248 (supplemental provisions about management tenders) is
amended as follows.
      (2)
In subsection (4) omit paragraph (a).
      (3)
In subsection (7) omit paragraph (c).
      (4)
In subsection (8) omit paragraph (a).
5
51    (1)
Section 250 (supplemental provisions about management transfers) is
amended as follows.
      (2)
In subsection (4) omit paragraph (a).
      (3)
In subsection (7) omit paragraph (c).
      (4)
In subsection (8) omit paragraph (a).
10
52    (1)
Section 252 (supplemental provisions about about appointment of
managers) is amended as follows.
      (2)
In subsection (4) omit paragraph (a).
      (3)
Omit subsection (7).
53    (1)
The Table in section 276 (Part 2: index of defined terms) is amended as
15
follows.
      (2)
Omit the entry for “Appointed member”.
      (3)
In the entry for “Fundamental objectives” for “Section 86” substitute “Section
92K”.
      (4)
In the entry for “The regulator” for “Section 81” substitute “Section 92A”.
20
      (5)
In the entry for “The Regulator of Social Housing” for “Section 81” substitute
“Section 92A”.
      (6)
Insert the following entries at the appropriate place—

“The chair
Section 92C”;

“External member
Section 92C”;

25

“The internal member
Section 92C”.

54    (1)
Schedule 1 (constitution of the Homes and Communities Agency) is
amended as follows.
      (2)
In paragraph 1 (appointment of membership) after sub-paragraph (4)
insert—
30
    “(5)
A person who is an external member of the Regulation Committee
(see section 92C) may not be appointed as a member of the HCA.”
      (3)
After paragraph 17 insert—
“18
The provisions in this Schedule about the HCA’s committees and
their sub-committees do not apply in relation to the Regulation
35
Committee or its sub-committees (as to which see in particular
sections 92A to 92I).”

Localism Bill
Schedule 16 — Transfer of functions from the Office for Tenants and Social Landlords to the Homes and Communities Agency
Part 3 — Transfer of property, rights and liabilities
348

Part 2
Amendments consequential on Part 1
Public Records Act 1958 (c. 51)
55
In Schedule 1 to the Public Records Act 1958 (definition of public records),
in Part 2 of the Table at the end of paragraph 3 omit the entry for the Office
5
for Tenants and Social Landlords.
Parliamentary Commissioner Act 1967 (c. 13)
56
In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments etc
subject to investigation) omit the entry for the Office for Tenants and Social
Landlords.
10
House of Commons Disqualification Act 1975 (c. 24)
57
In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975
(bodies of which all members are disqualified) omit the entry for the Office
for Tenants and Social Landlords.
Race Relations Act 1976 (c. 74)
15
58
In Schedule 1A to the Race Relations Act 1976 (bodies and other persons
subject to general statutory duty) omit paragraph 52 (the Office for Tenants
and Social Landlords).
Freedom of Information Act 2000 (c. 36)
59
In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public
20
authorities) omit the entry for the Office for Tenants and Social Landlords.
Part 3
Transfer of property, rights and liabilities
Transfer of property, rights and liabilities
60    (1)
The property, rights and liabilities to which the Office is entitled or subject
25
immediately before the commencement of this paragraph transfer to and
vest in the HCA.
      (2)
This paragraph has effect in spite of any provision (of whatever nature) that
would otherwise prevent, penalise or restrict the transfer of the property,
rights or liabilities.
30
      (3)
In particular, it has effect regardless of a contravention, liability or
interference with an interest or right that would otherwise exist by reason of
such a provision having effect in relation to the terms on which the Office is
entitled to the property or right, or subject to the liability, in question.
      (4)
A certificate by the Secretary of State that anything specified in the certificate
35
has vested in the HCA under this paragraph is conclusive evidence for all
purposes of that fact.

Localism Bill
Schedule 16 — Transfer of functions from the Office for Tenants and Social Landlords to the Homes and Communities Agency
Part 4 — Transitional and saving provisions
349

Employment contracts: transfer of rights and liabilities
61    (1)
The rights and liabilities transferred by paragraph 60 include rights or
liabilities under a contract of employment.
      (2)
The Transfer of Undertakings (Protection of Employment) Regulations 2006
(S.I. 2006/246) apply to the transfer by virtue of that paragraph of rights or
5
liabilities under a contract of employment (whether or not it is a relevant
transfer for the purposes of those regulations).
Continuity
62    (1)
The transfer of property, rights and liabilities by virtue of paragraph 60 does
not affect the validity of anything done (or having effect as if done) by or in
10
relation to the Office before the transfer takes effect.
      (2)
Anything that—
(a)
is done (or has effect as if done) by or in relation to the Office for the
purposes of, or otherwise in connection with, anything transferred
by paragraph 60, and
15
(b)
has effect immediately before the transfer date,

is to be treated as done by or in relation to the HCA.
      (3)
There may be continued by or in relation to the HCA anything (including
legal proceedings) that—
(a)
relates to anything transferred under paragraph 60, and
20
(b)
is in the process of being done by or in relation to the Office
immediately before the transfer date.
      (4)
Sub-paragraph (5) applies to any document that—
(a)
relates to anything transferred under paragraph 60, and
(b)
is in effect immediately before the transfer date.
25
      (5)
Any references (however expressed) in the document to the Office are to be
read, so far as is necessary for the purposes of the transfer, as references to
the HCA.
Interpretation
63
In this Part of this Schedule—
30
“the Office” means the Office for Tenants and Social Landlords
constituted by Chapter 2 of the Housing and Regeneration Act 2008
as originally enacted;
“the transfer date” means the date on which paragraph 60 comes into
force.
35
Part 4
Transitional and saving provisions
Final annual report
64    (1)
As soon as is reasonably practicable after the abolition date, the HCA must
prepare a report on the performance of the functions of the Office—
40
(a)
in the last financial year to end before the abolition date, and

Localism Bill
Schedule 16 — Transfer of functions from the Office for Tenants and Social Landlords to the Homes and Communities Agency
Part 4 — Transitional and saving provisions
350

(b)
in the period (if any) beginning immediately after the end of that
financial year and ending immediately before the abolition date.
      (2)
Sub-paragraph (1)(a) does not apply if the Office has already sent a report
under section 92 of the Housing and Regeneration Act 2008 to the Secretary
of State in respect of the financial year.
5
      (3)
The report must, in particular—
(a)
specify any direction given to the Office by the Secretary of State in
the period to which it relates under section 197 of the Housing and
Regeneration Act 2008, and
(b)
contain a general description of complaints made to the Office in that
10
period about the performance of registered providers of social
housing and of how those complaints have been dealt with.
      (4)
The HCA must send a report under this paragraph to the Secretary of State
as soon as is reasonably practicable after preparing it.
      (5)
The Secretary of State must lay the report before Parliament.
15
Final accounts
65    (1)
As soon as is reasonably practicable after the abolition date, the HCA must
prepare—
(a)
a statement of the accounts of the Office for the last financial year to
end before the abolition date, and
20
(b)
a statement of the accounts of the Office for the period (if any)
beginning immediately after the end of that financial year and
ending immediately before the abolition date.
      (2)
A statement under this paragraph must be prepared in accordance with the
direction given by the Secretary of State to the Office dated 12th August
25
2009.
      (3)
The HCA must, as soon as is reasonable practicable after preparing a
statement under this section, send a copy of it to the Secretary of State and
the Comptroller and Auditor General.
      (4)
The Comptroller and Auditor General must—
30
(a)
examine, certify and report on the statement, and
(b)
lay a copy of the report before Parliament.
      (5)
Sub-paragraph (1)(a) does not apply if the Office has already sent a copy of
its statement of accounts for the year to the Comptroller and Auditor
General.
35
      (6)
In such a case the repeal of section 103(5) of the Housing and Regeneration
Act 2008 does not remove the obligation of the Comptroller and Auditor
General to take the steps specified in that provision in relation to the
statement of accounts if the Comptroller has not already done so.
General transitional and saving provisions
40
66    (1)
Section 92A of the Housing and Regeneration Act 2008 does not apply to an
enactment or instrument if and to the extent that it makes provision about a
time before the commencement of the insertion of that section by paragraph
26.

Localism Bill
Schedule 17 — Regulation of social housing
351

      (2)
In relation to such a time—
(a)
references in Part 2 of that Act to “the regulator” are to the Office, and
(b)
references in any other enactment or instrument to “the Regulator of
Social Housing” are to the Office.
      (3)
The transfer of functions from the Office to the HCA by virtue of this
5
Schedule does not affect the validity of anything done (or having effect as if
done) by or in relation to the Office before the transfer takes effect.
      (4)
Anything that—
(a)
is done (or has effect as if done) by or in relation to the Office for the
purposes of, or otherwise in connection with, a function transferred
10
by virtue of this Schedule, and
(b)
has effect immediately before the date on which the function is
transferred,

is to be treated as done by or in relation to the HCA.
      (5)
There may be continued by or in relation to the HCA anything (including
15
legal proceedings) that—
(a)
relates to a function transferred by virtue of this Schedule, and
(b)
is in the process of being done by or in relation to the Office
immediately before the date on which the function is transferred.
      (6)
Sub-paragraph (7) applies to any document that—
20
(a)
relates to a function transferred by virtue of this Schedule, and
(b)
is in effect immediately before the date on which the function is
transferred.
      (7)
Any references (however expressed) in the document to the Office are to be
read, so far as is necessary for the purposes of the transfer, as references to
25
the HCA.
Interpretation
67
In this Part of this Schedule—
“the abolition date” means the date on which the repeal of section 81 of
the Housing and Regeneration Act 2008 by Part 1 of this Schedule
30
comes into force;
“financial year” mean the period of 12 months ending with 31st March
in any year;
“the Office” means the Office for Tenants and Social Landlords
constituted by Chapter 2 of the Housing and Regeneration Act 2008
35
as originally enacted.
Schedule 17
Section 151

Regulation of social housing
1
Part 2 of the Housing and Regeneration Act 2008 (regulation of social
housing) is amended as follows.
40
2     (1)
Section 192 (overview of Chapter 6) is amended as follows.