Localism Bill

Session 2010 - 11
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Localism Bill

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

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
5
(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
10
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—
15
(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.
20
      (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
25
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.
      (2)
In relation to such a time—
30
(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
Schedule does not affect the validity of anything done (or having effect as if
35
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
by virtue of this Schedule, and
40
(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
legal proceedings) that—
45

Localism Bill
Schedule 17 — Regulation of social housing
351

(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—
(a)
relates to a function transferred by virtue of this Schedule, and
5
(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
the HCA.
10
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
comes into force;
15
“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
as originally enacted.
20
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.
2     (1)
Section 192 (overview of Chapter 6) is amended as follows.
25
      (2)
In paragraph (a) for “198” substitute “198B”.
      (3)
In paragraph (d) for “complaints” substitute “the submission of information
and opinions”.
3     (1)
Section 193 (standards as to provision of social housing) is amended as
follows.
30
      (2)
In the heading for “Provision of social housing” substitute “Standards
relating to consumer matters”.
      (3)
In subsection (2) omit paragraph (c).
4     (1)
Section 194 (management of financial and other affairs of registered
providers) is amended as follows.
35
      (2)
In the heading for “Management” substitute “Standards relating to
economic matters”.
      (3)
In subsection (1) omit “the management of”.

Localism Bill
Schedule 17 — Regulation of social housing
352

      (4)
After that subsection insert—
“(1A)
Standards under subsection (1) may, in particular, require private
registered providers to comply with specified rules about—
(a)
the management of their financial and other affairs, and
(b)
their efficiency in carrying on their financial and other
5
affairs.”
      (5)
After subsection (2) insert—
“(2A)
The regulator may set standards for registered providers requiring
them to comply with specified rules about their levels of rent (and
the rules may, in particular, include provision for minimum or
10
maximum levels of rent or levels of increase or decrease of rent).”
5     (1)
Section 195 (code of practice relating to standards) is amended as follows.
      (2)
In subsection (1)(a) after “standard” insert “under section 194”.
      (3)
In subsection (2) after “standards” insert “under that section”.
6
In section 197(1) (directions by Secretary of State as to standards) in each of
15
paragraphs (a) and (b) after “193” insert “or 194”.
7
In section 198 (supplemental provision about standards) omit subsection (1).
8
After that section insert—
“198A
Failure to meet standard under section 193
(1)
Failure by a registered provider to meet a standard under section 193
20
(standards relating to consumers matters) is a ground for exercising
a power in this Chapter or Chapter 7.
(2)
But a power to which this subsection applies may be exercised on
that ground only if the regulator thinks there are reasonable grounds
to suspect that—
25
(a)
the failure has resulted in a serious detriment to the
registered provider’s tenants or potential tenants, or
(b)
there is a significant risk that, if no action is taken by the
regulator, the failure will result in a serious detriment to the
registered provider’s tenants or potential tenants.
30
(3)
Subsection (2) applies to the powers conferred by any of the
following—
(a)
section 199 (surveys);
(b)
section 201 (inspections);
(c)
section 206 (inquiries);
35
(d)
section 220 (enforcement notices);
(e)
section 227 (penalties);
(f)
section 237 (compensation);
(g)
section 247 (management tender);
(h)
section 251 (appointment of manager).
40
(4)
The risk that, if no action is taken by a registered provider or the
regulator, the registered provider will fail to meet a standard under
section 193 is a ground for exercising a power in this Chapter.

Localism Bill
Schedule 17 — Regulation of social housing
353

(5)
But a power in this Chapter may be exercised on that ground only if
the regulator thinks there are reasonable grounds to suspect that, if
the failure occurs—
(a)
the failure will result in a serious detriment to the registered
provider’s tenants or potential tenants, or
5
(b)
there will be a significant risk that, if no action is taken by the
regulator, the failure will result in a serious detriment to the
registered provider’s tenants or potential tenants.
(6)
In considering whether to exercise a power within subsection (1) or
(4) on the ground mentioned in that subsection, the regulator must
10
have regard to any information it has received from any of the
following—
(a)
the Commission for Local Administration in England;
(b)
a housing ombudsman appointed in accordance with a
scheme approved under section 51 of the Housing Act 1996;
15
(c)
any body appearing to the regulator to represent the interests
of tenants of social housing in England;
(d)
a county council in England, a district council, a London
borough council, the Common Council of the City of London
in its capacity as a local authority, the Council of the Isles of
20
Scilly or a parish council;
(e)
a member of any of the bodies listed in paragraph (d);
(f)
the Greater London Authority;
(g)
a Member of Parliament;
(h)
a fire and rescue authority under the Fire and Rescue Services
25
Act 2004;
(i)
the Health and Safety Executive;
(j)
the Secretary of State.
198B
Failure to meet standard under section 194
(1)
Failure by a registered provider to meet a standard under section 194
30
(standards relating to economic matters) is a ground for exercising a
power in this Chapter or Chapter 7 (if the power is otherwise
exercisable in relation to a registered provider of that kind).
(2)
The risk that, if no action is taken by a registered provider or the
regulator, the registered provider will fail to meet a standard under
35
section 194 is a ground for exercising a power in this Chapter.”
9     (1)
Section 201 (inspections) is amended as follows.
      (2)
For subsection (2) substitute—
“(2)
The person may be a member of the regulator’s staff if the Secretary
of State consents.
40
(2A)
Consent under subsection (2) may be general or specific.”
      (3)
Omit subsection (3).
      (4)
Omit subsection (6).

Localism Bill
Schedule 17 — Regulation of social housing
354

      (5)
For subsection (7) substitute—
“(7)
Arrangements for a person other than a member of the regulator’s
staff to carry out an inspection may include provision about
payments.”
      (6)
In subsection (7A) after “person” insert “other than a member of the
5
regulator’s staff”.
      (7)
Omit subsection (8).
10    (1)
Section 202 (inspections: supplemental) is amended as follows.
      (2)
In subsection (6) omit paragraph (c).
      (3)
In subsection (7)—
10
(a)
at the end of paragraph (a) insert “and”, and
(b)
omit paragraph (c).
11
In section 203 (inspector’s powers) for subsection (12) substitute—
“(12)
In this section “inspector” means a person authorised in writing by
the regulator to exercise the powers under this section for the
15
purposes of an inspection under section 201.”
12
Omit section 204 (performance information).
13
Omit section 205 (publication of performance information).
14    (1)
Section 215 (guidance on use of intervention powers) is amended as follows.
      (2)
In subsection (1)(a) for “complaints” substitute “the submission of
20
information”.
      (3)
In subsection (2) for paragraphs (a) to (c) substitute “how the regulator will
deal with the submissions it receives.”
      (4)
Before subsection (3) insert—
“(2A)
Guidance under subsection (1)(b) must, in particular, specify how
25
the regulator applies and intends to apply the tests in section 198A
(use of certain powers in cases of failure or potential failure to
comply with standards under section 193).”
15
In section 216 (consultation)—
(a)
before paragraph (a) insert—
30
“(za)
the Secretary of State,”, and
(b)
omit paragraph (d).
16    (1)
Section 218 (exercise of enforcement powers) is amended as follows.
      (2)
In subsection (1) for “This section” substitute “Subsection (2)”.
      (3)
In subsection (2) omit paragraphs (b) and (c).
35
      (4)
After that subsection insert—
“(3)
Subsection (4) applies where the regulator is making a decision in
relation to—

Localism Bill
Schedule 19 — Housing and regeneration: consequential amendments
355

(a)
the exercise, on a ground other than one specified in section
198A(1) (failure to meet standard under section 193), of a
power under this Chapter that is listed in section 198A(3), or
(b)
the exercise of a power under this Chapter that is not listed in
section 198A(3).
5
(4)
The regulator shall consider—
(a)
whether the failure or other problem concerned is serious or
trivial;
(b)
whether the failure or other problem is a recurrent or isolated
incident.”
10
Schedule 18
Section 156

Home information packs: consequential amendments
Terrorism Act 2000 (c. 11)
1
In Schedule 3A to the Terrorism Act 2000 (regulated sector and supervisory
authorities) in paragraph 2(1) (excluded activities)—
15
(a)
at the end of paragraph (d) insert “or”, and
(b)
omit paragraph (f).
Proceeds of Crime Act 2002 (c. 29)
2
In Schedule 9 to the Proceeds of Crime Act 2002 (regulated sector and
supervisory authorities) in paragraph 2(1) (excluded activities)—
20
(a)
at the end of paragraph (d) insert “or”, and
(b)
omit paragraph (f).
Housing and Regeneration Act 2008 (c. 17)
3
In section 290(2)(e) of the Housing and Regeneration Act 2008 (power to
make regulations) omit “made by virtue of Part 5 of the Housing Act 2004
25
(c. 34) (home information packs) or”.
Schedule 19
Section 166

Housing and regeneration: consequential amendments
Public Health Act 1961 (c. 64)
1
In Schedule 4 to the Public Health Act 1961 (attachment of street lighting
30
equipment to certain buildings) in the entry for a building owned by a
development corporation established under the New Towns Act 1946 etc at
the end insert “or the Greater London Authority so far as exercising its new
towns and urban development functions.”

Localism Bill
Schedule 19 — Housing and regeneration: consequential amendments
356

Leasehold Reform Act 1967 (c. 88)
2
In section 37(1)(ba)(i) of the Leasehold Reform Act 1967 (definition of “new
towns residuary body”) after “2008” insert “or the Greater London Authority
so far as exercising its new towns and urban development functions”.
Land Compensation Act 1973 (c. 26)
5
3
In section 39(9)(b)(i) of the Land Compensation Act 1973 (definition of “new
towns residuary body”) after “2008” insert “or the Greater London Authority
so far as exercising its new towns and urban development functions”.
Rent (Agriculture) Act 1976 (c. 80)
4
In section 5(3A) of the Rent (Agriculture) Act 1976 (definition of “English
10
new towns residuary body”) after “2008” insert “or the Greater London
Authority so far as exercising its new towns and urban development
functions”.
Rent Act 1977 (c. 42)
5
In section 14(2) of the Rent Act 1977 (definition of “English new towns
15
residuary body”) after “2008” insert “or the Greater London Authority so far
as exercising its new towns and urban development functions”.
Protection from Eviction Act 1977 (c. 43)
6
In section 3A(8A)(a) of the Protection from Eviction Act 1977 (definition of
“new towns residuary body”) after “2008” insert “or the Greater London
20
Authority so far as exercising its new towns and urban development
functions”.
Local Government, Planning and Land Act 1980 (c. 65)
7
In section 93(1A) of the Local Government, Planning and Land Act 1980
(application of sections 95 to 96A to the Homes and Communities Agency)
25
after “2008” insert “and to the Greater London Authority so far as it is
exercising its new towns and urban development functions”.
Highways Act 1980 (c. 66)
8
In section 219(4B)(a) (definition of “new towns residuary body”) after “2008”
insert “or the Greater London Authority so far as exercising its new towns
30
and urban development functions”.
Local Government (Miscellaneous Provisions) Act 1982 (c. 30)
9
In Schedule 4 to the Local Government (Miscellaneous Provisions) Act 1982
(street trading) in paragraph 2(5A)(a) (definition of “new towns residuary
body”) after “2008” insert “or the Greater London Authority so far as
35
exercising its new towns and urban development functions”.
Housing Act 1985 (c. 68)
10
The Housing Act 1985 is amended as follows.