Schedule 9: Meaning of service charge and management (Section 150)
Loans in respect of service charges
379.Paragraphs 1 to 6 make changes to the provisions of the Housing Act 1985 which enable, and in some cases require, local authorities and registered social landlords to provide loans to their leaseholders to cover the costs of maintenance and repairs recoverable through service charges. The changes extend these provisions to cover the costs of improvements where these are payable by leaseholders.
Service charges
380.Paragraph 7 extends the definition of ‘service charge’ in section 18(1)(a) of the 1985 Act to cover improvements.
Appointment of manager
381.Paragraph 8 extends the meaning of management for the purposes of section 24 of the 1987 Act to include improvements. Failings in relation to improvements will also be grounds for the appointment of a manager under that section.
Right to acquire landlord’s interest
382.Paragraph 9 similarly extends the grounds for the right to acquire the landlord’s interest under section 29 of the 1987 Act to include failings in relation to improvements.
Tenants’ right to management audit
383.Paragraph 10 extends the definition of ‘management functions’ in section 84 of the 1993 Act, which gives tenants a right to a management audit, to include improvements.
Codes of management practice
384.Paragraph 11 extends the definitions of ‘management functions’ and ‘service charge’ in section 87(8) of the 1993 Act, which provides for the approval of codes of management practice, to cover improvements.
Right to appoint surveyor
385.Paragraph 12 extends the definition of ‘management functions’ for the purposes of paragraph 4(2) of Schedule 4 to the Housing Act 1996, which gives recognised tenants’ associations the right to appoint a surveyor who has rights to inspect premises, to cover improvements.
Power to amend certain provisions
386.Paragraph 13 provides that any of the provisions referred to in paragraphs 7 to 12 or section 27A of the 1985 Act (as inserted by section 155 of the Act) may be further amended, by order, to change the meaning of ‘service charge’, ‘management’ or ‘management functions’.
