(1)Where a report with respect to an area which consists primarily of housing accommodation and which, in accordance with subsection (2) below, is appropriate to be declared a priority neighbourhood, is submitted to the local authority within whose district the area lies by a person or persons appearing to the authority to be suitably qualified (whether or not that person is or those persons include an officer of the authority) and, upon consideration of the report and of any other information in their possession, the authority are satisfied that, having regard to—
(a)the physical state of the housing accommodation in the area as a whole, and
(b)social conditions in the area,
the requirements in subsection (3) below are fulfilled with respect to the area, the authority may cause the area to be defined on a map and by resolution declare it to be a priority neighbourhood.
(2)For the purposes of this section, an area is appropriate to be declared a priority neighbourhood if, immediately before the declaration, it surrounds, or has a common boundary with,—
(a)a housing action area other than an area in respect of which the Secretary of State has notified the local authority as mentioned in subsection (2)(c) of section 37 above and has not yet sent a further notification under subsection (4) of that section ; or
(b)a general improvement area in respect of which a confirmatory resolution, within the meaning of section 28 of the [1969 c. 33.] Housing Act 1969, has been passed.
(3)The requirements referred to in subsection (1) above are—
(a)that the living conditions in the area are unsatisfactory;
(b)that it is not, at the date of the resolution, practicable for the local authority to declare the area or any part of it to be a housing action area or a general improvement area or to declare as a housing action area or a general improvement area an area which includes any part of the proposed priority neighbourhood; and
(c)that it is necessary to secure in the area all or any of the objectives specified in paragraphs (a) to (c) of section 36(2) above and that that need can best be met by declaring the area to be a priority neighbourhood.
(4)In considering whether to take action under subsection (1) above with respect to any area, a local authority shall have regard to such guidance as may from time to time be given by the Secretary of State, either generally or with respect to a particular authority or description of authority or in any particular case, with regard to the identification of areas suitable to be declared as priority neighbourhoods.
(5)As soon as may be after passing a resolution declaring an area to be a priority neighbourhood, a local authority shall—
(a)publish in two or more newspapers circulating in the locality (of which at least one shall, if practicable, be a local newspaper) a notice of the resolution identifying the priority neighbourhood and naming a place or places where a copy of the resolution, of the map on which the neighbourhood is defined and of the report referred to in subsection (1) above may be inspected at all reasonable times;
(b)take such further steps as may appear to them best designed to secure that the resolution is brought to the attention of persons residing or owning property in the priority neighbourhood and that those persons are informed of the name and address of the person to whom any inquiries and representations concerning any action to be taken with respect to the neighbourhood should be addressed ; and
(c)send to the Secretary of State a copy of the resolution, the map and a copy of the report mentioned in paragraph (a) above and a statement containing such information as the Secretary of State may for the time being require, either generally or with respect to a particular authority or description of authority or in any particular case, to show the basis on which the local authority satisfied themselves that the area concerned was suitable to be declared a priority neighbourhood, having regard to the matters specified in paragraphs (a) and (b) of subsection (1) above and any relevant guidance given under subsection (4) above.
(6)As soon as may be after a resolution has been passed declaring an area to be a priority neighbourhood, the resolution shall be registered in the register of local land charges—
(a)by the proper officer, for the purposes of section 15 of the [1925 c. 22.] Land Charges Act 1925, of the local authority in whose area the priority neighbourhood is situated ; and
(b)in such manner as may be prescribed by rules under section 19 of that Act.
(7)Section 37 above shall apply in relation to the declaration of a priority neighbourhood with the substitution—
(a)for any reference to a housing action area of a reference to a priority neighbourhood ; and
(b)for any reference to section 36(4)(c) above of a reference to subsection (5)(c) of this section.
(8)In this section " housing accommodation" means dwellings, houses in multiple occupation and hostels.