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Housing Bill


Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

75

 

(c)   

if a final management order has been made by them in respect of the

house so as to replace the order;

(d)   

if in any other circumstances the authority consider it appropriate to

revoke the order.

(2)   

A revocation does not come into force until such time, if any, as is the operative

5

time for the purposes of this subsection under paragraph 31 of Schedule 6 (time

when period for appealing expires without an appeal being made or when

decision to revoke is confirmed on appeal).

(3)   

The power to revoke an order under this section is exercisable by the authority

either—

10

(a)   

on an application made by a relevant person, or

(b)   

on the authority’s own initiative.

(4)   

In this section “relevant person” means—

(a)   

any person who has an estate or interest in the house or part of it (but

is not a tenant under a lease with an unexpired term of 3 years or less),

15

or

(b)   

any other person who (but for the order) would be a person managing

or having control of the house or part of it.

Final management orders: making and operation of orders

107     

Making of final management orders

20

(1)   

A local housing authority who have made an interim management order in

respect of a house under section 97 (“the IMO”)—

(a)   

have a duty to make a final management order in respect of the house

in a case within subsection (2), and

(b)   

have power to make such an order in a case within subsection (3).

25

(2)   

The authority must make a final management order so as to replace the IMO as

from its expiry date if—

(a)   

on that date the house would be required to be licensed under Part 2 or

3 of this Act (see section 60(1) or 82(1)), and

(b)   

the authority consider that they are unable to grant a licence under Part

30

2 or 3 in respect of the house that would replace the IMO as from that

date.

(3)   

The authority may make a final management order so as to replace the IMO as

from its expiry date if—

(a)   

on that date the house will not be one that would be required to be

35

licensed as mentioned in subsection (2)(a), and

(b)   

the authority consider that making the final management order is

necessary for the purpose of protecting, on a long-term basis, the

health, safety or welfare of persons occupying the house, or persons

occupying or having an estate or interest in any premises in the vicinity.

40

(4)   

A local housing authority who have made a final management order in respect

of a house under this section (“the existing order”)—

(a)   

have a duty to make a final management order in respect of the house

in a case within subsection (5), and

(b)   

have power to make such an order in a case within subsection (6).

45

 

 

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

76

 

(5)   

The authority must make a new final management order so as to replace the

existing order as from its expiry date if—

(a)   

on that date the condition in subsection (2)(a) will be satisfied in

relation to the house, and

(b)   

the authority consider that they are unable to grant a licence under Part

5

2 or 3 in respect of the house that would replace the existing order as

from that date.

(6)   

The authority may make a new final management order so as to replace the

existing order as from its expiry date if—

(a)   

on that date the condition in subsection (3)(a) will be satisfied in

10

relation to the house, and

(b)   

the authority consider that making the new order is necessary for the

purpose of protecting, on a long-term basis, the health, safety or welfare

of persons within subsection (3)(b).

(7)   

The authority may make a final management order which is expressed not to

15

apply to a part of the house that is occupied by a person who has an estate or

interest in the whole of the house.

   

In relation to such an order, a reference in this Part to “the house” does not

include the part so excluded (unless the context requires otherwise, such as

where the reference is to the house as an HMO or a Part 3 house).

20

(8)   

In this section “expiry date”, in relation to an interim or final management

order, means—

(a)   

where the order is revoked, the date as from which it is revoked, and

(b)   

otherwise the date on which the order ceases to have effect under

section 100 or 108;

25

   

and nothing in this section applies in relation to an interim or final

management order which has been revoked on an appeal under Part 3 of

Schedule 6.

108     

Operation of final management orders

(1)   

This section deals with the time when a final management order comes into

30

force or ceases to have effect.

(2)   

The order does not come into force until such time (if any) as is the operative

time for the purposes of this subsection under paragraph 27 of Schedule 6 (time

when period for appealing expires without an appeal being made or when

order is confirmed on appeal).

35

(3)   

The order ceases to have effect at the end of the period of 5 years beginning

with the date on which it comes into force, unless it ceases to have effect at

some other time as mentioned below.

(4)   

If the order provides that it is to cease to have effect on a date falling before the

end of that period, it accordingly ceases to have effect on that date.

40

(5)   

Subsections (6) and (7) apply where—

(a)   

a new final management order (“the new order”) has been made so as

to replace the order (“the existing order”), but

(b)   

the new order has not come into force because of an appeal to a

residential property tribunal under paragraph 24 of Schedule 6 against

45

the making of that order.

 

 

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

77

 

(6)   

If—

(a)   

the house would (but for the existing order being in force) be required

to be licensed under Part 2 or 3 of this Act (see section 60(1) or 82(1)),

and

(b)   

the date on which—

5

(i)   

the new order, or

(ii)   

any licence under Part 2 or 3, or

(iii)   

a temporary exemption notice under section 61 or 83,

   

comes into force in relation to the house (or part of it) following the

disposal of the appeal is later than the date on which the existing order

10

would cease to have effect apart from this subsection,

   

the existing order continues in force until that later date.

(7)   

If, on the application of the authority, the tribunal makes an order providing

for the existing order to continue in force, pending the disposal of the appeal,

until a date later than that on which it would cease to have effect apart from

15

this subsection, the existing order accordingly continues in force until that later

date.

(8)   

This section has effect subject to sections 113 and 114 (variation or revocation

of orders) and to the power of revocation exercisable by a residential property

tribunal on an appeal made under paragraph 24 or 28 of Schedule 6.

20

109     

Local housing authority’s duties once final management order in force

(1)   

A local housing authority who have made a final management order in respect

of a house must comply with the following provisions once the order has come

into force.

(2)   

The local housing authority must take such steps as they consider appropriate

25

with a view to the proper management of the house in accordance with the

management scheme contained in the order (see section 112).

(3)   

The local housing authority must from time to time review—

(a)   

the operation of the order and in particular the management scheme

contained in it, and

30

(b)   

whether keeping the order in force in relation to the house (with or

without making any variations under section 113) is the best alternative

available to them.

(4)   

If on a review the authority consider that any variations should be made under

section 113, they must proceed to make those variations.

35

(5)   

If on a review the authority consider that either—

(a)   

granting a licence under Part 2 or 3 in respect of the house, or

(b)   

revoking the order under section 114 and taking no further action,

   

is the best alternative available to them, the authority must grant such a licence

or revoke the order (as the case may be).

40

(6)   

For the avoidance of doubt, the authority’s duty under subsection (2) includes

taking such steps as are necessary to ensure that, while the order is in force,

reasonable provision is made for insurance of the house against destruction or

damage by fire or other causes.

 

 

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

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110     

General effect of final management orders

(1)   

This section applies while a final management order is in force in relation to a

house.

(2)   

The rights and powers conferred by subsection (3) are exercisable by the

authority in performing their duty under section 109(2) in respect of the house.

5

(3)   

The authority—

(a)   

have the right to possession of the house (subject to the rights of

existing occupiers preserved by section 116(2));

(b)   

have the right to do (and authorise a manager or other person to do) in

relation to the house anything which a person having an estate or

10

interest in the house would (but for the order) be entitled to do;

(c)   

may create one or more of the following—

(i)   

an interest in the house which, as far as possible, has all the

incidents of a leasehold, or

(ii)   

a right in the nature of a licence to occupy part of the house.

15

(4)   

The powers of the authority under subsection (3)(c) are restricted as follows—

(a)   

they may not create any interest or right in the nature of a lease or

licence—

(i)   

which is for a fixed term expiring after the date on which the

order is due to expire, or

20

(ii)   

(subject to paragraph (b)) which is terminable by notice to quit,

or an equivalent notice, of more than 4 weeks,

   

unless consent in writing has been given by the person who would (but

for the order) have power to create the lease or licence in question;

(b)   

they may create an interest in the nature of an assured shorthold

25

tenancy without any such consent so long as it is created before the

beginning of the period of 6 months that ends with the date on which

the order is due to expire.

(5)   

The authority—

(a)   

do not under this section acquire any estate or interest in the house, and

30

(b)   

accordingly are not entitled by virtue of this section to sell, lease, charge

or make any other disposition of any such estate or interest;

   

but, where the immediate landlord of the house or part of it (within the

meaning of section 111) is a lessee under a lease of the house or part, the

authority is to be treated (subject to paragraph (a)) as if they were the lessee

35

instead.

(6)   

Any enactment or rule of law relating to landlords and tenants or leases applies

in relation to—

(a)   

an interest created by the authority under subsection (3)(c),

(b)   

a lease in relation to which the authority are to be treated as the lessee

40

under subsection (5), or

(c)   

a lease to which the authority become a party under section 116(3),

   

as if the authority were the legal owner of the premises (but this is subject to

section 116(5) to (7)).

(7)   

None of the following, namely—

45

(a)   

the authority, or

(b)   

any person authorised under subsection (3)(b),

 

 

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

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is liable to any person having an estate or interest in the house for anything

done or omitted to be done in the performance (or intended performance) of

the authority’s duty under section 109(2) unless the act or omission is due to

the negligence of the authority or any such person.

(8)   

References in any enactment to housing accommodation provided or managed

5

by a local housing authority do not include a house in relation to which a final

management order is in force.

(9)   

A final management order which has come into force is a local land charge.

(10)   

In this section “enactment” includes an enactment comprised in subordinate

legislation (within the meaning of the Interpretation Act 1978 (c. 30)).

10

111     

General effect of final management orders: immediate landlords, mortgagees

etc.

(1)   

This section applies in relation to—

(a)   

immediate landlords, and

(b)   

other persons with an estate or interest in the house,

15

   

while a final management order is in force in relation to a house.

(2)   

A person who is an immediate landlord of the house or a part of it—

(a)   

is not entitled to receive—

(i)   

any rents or other payments from persons occupying the house

or part which are payable to the local housing authority by

20

virtue of section 116(3), or

(ii)   

any rents or other payments from persons occupying the house

or part which are payable to the authority by virtue of any

interest or right created by them under section 110(3)(c),

(b)   

may not exercise any rights or powers with respect to the management

25

of the house or part; and

(c)   

may not create any of the following—

(i)   

any leasehold interest in the house or part (other than a lease of

a reversion), or

(ii)   

any licence or other right to occupy it.

30

(3)   

However (subject to subsection (2)(c)) nothing in section 110 or this section

affects the ability of a person having an estate or interest in the house to make

any disposition of that estate or interest.

(4)   

Nothing in section 110 or this section affects—

(a)   

the validity of any mortgage relating to the house or any rights or

35

remedies available to the mortgagee under such a mortgage, or

(b)   

the validity of any lease of the house or part of it under which the

immediate landlord is a lessee, or any superior lease, or (subject to

section 110(5)) any rights or remedies available to the lessor under such

a lease;

40

   

and in proceedings for the enforcement of any such rights or remedies the

court may make such order as it thinks fit as regards the operation of the final

management order (including an order quashing it).

(5)   

For the purposes of this Part, as it applies in relation to a final management

order, a person is an “immediate landlord” of the house or a part of it if—

45

(a)   

he is an owner or lessee of the house or part, and

 

 

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

80

 

(b)   

(but for the order) he would be entitled to receive the rents or other

payments from persons occupying the house or part which are payable

to the authority by virtue of section 116(3).

112     

Management scheme and accounts

(1)   

A final management order must contain a management scheme.

5

(2)   

A “management scheme” is a scheme setting out how the local housing

authority are to carry out their duty under section 109(2) as respects the

management of the house.

(3)   

A management scheme is to be divided into two parts.

(4)   

Part 1 of the scheme is to contain a plan giving details of the way in which the

10

authority propose to manage the house, which must (in particular) include—

(a)   

details of any works that the authority intend to carry out in connection

with the house;

(b)   

an estimate of the capital and other expenditure to be incurred by the

authority in respect of the house while the order is in force;

15

(c)   

the amount of rent or other payments that the authority will seek to

obtain having regard to the condition or expected condition of the

house at any time while the order is in force;

(d)   

provision as to the payment by the authority to a relevant landlord,

from time to time, of amounts of rent or other payments that remain

20

after the deduction of relevant expenditure;

(e)   

as to the manner in which the authority are to pay to a relevant

landlord, on the termination of the final management order, any

amounts of rent or other payments that remain after the deduction of

relevant expenditure (as mentioned in section 120(4)).

25

(5)   

Part 1 of the scheme may also state—

(a)   

the authority’s intentions as regards the use of rent or other payments

to meet relevant expenditure;

(b)   

the authority intentions as regards the payment to a relevant landlord

(where appropriate) of interest on amounts within subsection (4)(c) and

30

(d);

(c)   

that section 120(2) is not to apply in respect of an interim management

order that immediately preceded the final management order, and that

instead the authority intend to use any balance such as is mentioned in

that subsection to meet relevant expenditure incurred during the

35

currency of the final management order;

(d)   

the authority’s intentions as regards the use of rent or other payments

collected or recovered during the currency of the final management

order to meet any deficit such as is mentioned in section 120(3) in

respect of an interim management order that immediately preceded the

40

final management order;

(e)   

the authority’s intentions as regards the recovery from a relevant

landlord, with or without interest, of any amount of relevant

expenditure that cannot be reimbursed out of the total amount of rent

or other payments.

45

(6)   

Part 2 of the scheme is to describe in general terms how the authority intend to

address the matters which caused them to make the final management order

and may, for example, include—

 

 

Housing Bill
Part 4 — Additional control provisions in relation to residential accommodation

81

 

(a)   

descriptions of any steps that the authority intend to take to require

persons occupying the house to comply with their obligations under

any lease or licence or under the general law;

(b)   

descriptions of any repairs that are needed to the property and an

explanation as to why those repairs are necessary.

5

(7)   

The authority must—

(a)   

keep full accounts of their income and expenditure in respect of the

house; and

(b)   

afford to each relevant landlord, and to any other person who has an

estate or interest in the house, all reasonable facilities for inspecting,

10

taking copies of and verifying those accounts.

(8)   

In this section—

   

“relevant expenditure” means expenditure reasonably incurred by the

authority in connection with performing their duties under section

109(2) in respect of the house (including any reasonable administrative

15

costs and any premiums paid for insurance of the premises);

   

“relevant landlord” means any person who is an immediate landlord of

the house or part of it;

   

“rent or other payments” means rent or other payments—

(a)   

which are payable under leases or licences or in respect of

20

furniture within section 118(1), and

(b)   

which the authority have collected or recovered by virtue of this

Part.

(9)   

In the provisions of this Part relating to varying, revoking or appealing against

decisions relating to a final management order, any reference to such an order

25

includes (where the context permits) a reference to the management scheme

contained in it.

Final management orders: variation and revocation

113     

Variation of final management orders

(1)   

The local housing authority may vary a final management order if they

30

consider it appropriate to do so.

(2)   

A variation does not come into force until such time, if any, as is the operative

time for the purposes of this subsection under paragraph 31 of Schedule 6 (time

when period for appealing expires without an appeal being made or when

decision to vary is confirmed on appeal).

35

(3)   

The power to vary an order under this section is exercisable by the authority

either—

(a)   

on an application made by a relevant person, or

(b)   

on the authority’s own initiative.

(4)   

In this section “relevant person” means—

40

(a)   

any person who has an estate or interest in the house or part of it (but

is not a tenant under a lease with an unexpired term of 3 years or less),

or

(b)   

any other person who (but for the order) would be a person managing

or having control of the house or part of it.

45

 

 

 
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