Service charges
C1C220F1 Limitation of service charges: consultation requirements
1
Where this section applies to any qualifying works or qualifying long term agreement, the relevant contributions of tenants are limited in accordance with subsection (6) or (7) (or both) unless the consultation requirements have been either—
a
complied with in relation to the works or agreement, or
2
In this section “relevant contribution”, in relation to a tenant and any works or agreement, is the amount which he may be required under the terms of his lease to contribute (by the payment of service charges) to relevant costs incurred on carrying out the works or under the agreement.
3
This section applies to qualifying works if relevant costs incurred on carrying out the works exceed an appropriate amount.
4
The Secretary of State may by regulations provide that this section applies to a qualifying long term agreement—
a
if relevant costs incurred under the agreement exceed an appropriate amount, or
b
if relevant costs incurred under the agreement during a period prescribed by the regulations exceed an appropriate amount.
5
An appropriate amount is an amount set by regulations made by the Secretary of State; and the regulations may make provision for either or both of the following to be an appropriate amount—
a
an amount prescribed by, or determined in accordance with, the regulations, and
b
an amount which results in the relevant contribution of any one or more tenants being an amount prescribed by, or determined in accordance with, the regulations.
6
Where an appropriate amount is set by virtue of paragraph (a) of subsection (5), the amount of the relevant costs incurred on carrying out the works or under the agreement which may be taken into account in determining the relevant contributions of tenants is limited to the appropriate amount.
7
Where an appropriate amount is set by virtue of paragraph (b) of that subsection, the amount of the relevant contribution of the tenant, or each of the tenants, whose relevant contribution would otherwise exceed the amount prescribed by, or determined in accordance with, the regulations is limited to the amount so prescribed or determined.