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In Part II of the [1985 c. 68.] Housing Act 1985, after the provisions inserted by section 10 above insert—
(1)If a qualifying tenants' association serves written notice on the local housing authority—
(a)proposing that the authority should enter into a management agreement with the association with respect to houses and other land specified in the notice, or
(b)proposing that the association should acquire from the authority houses and other land specified in the notice at a specified price,
the authority shall take the proposal into consideration.
(2)If the authority have not, by the end of the period of six months after service of the notice, accepted the proposal in principle, they shall give the association a written statement of the reasons why they have not done so.
(3)A tenants' association is a qualifying association for the purposes of this section if—
(a)it is a housing association of which at least half the members are tenants of houses specified in the notice,
(b)it has at least 50 such members or is registered under the Industrial and Provident Societies Act 1965, and
(c)at least half the tenants of the specified houses are members of the association.”.
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