Management etc.
246Overview
This group of sections gives the regulator various powers in relation to the management and constitution of registered providers.
247Management tender
(1)This section applies if the regulator is satisfied that—
(a)a registered provider has failed to meet a standard under section 193 or 194, or
(b)the affairs of a registered provider have been mismanaged in relation to social housing.
(2)The regulator may require the registered provider to implement a process specified by the regulator for the purpose of—
(a)inviting persons to apply to undertake management functions of the registered provider, and
(b)selecting from the applications and making an appointment.
(3)A requirement may relate to—
(a)the registered provider’s affairs generally in so far as they relate to social housing, or
(b)specified affairs relating to social housing.
(4)A requirement must include—
(a)provision about the constitution of a selection panel (which must include provision for ensuring representation of tenants' interests),
(b)provision for ensuring best procurement practice, and
(c)provision about the terms and conditions on which the manager is to be appointed (including provision about—
(i)setting, monitoring and enforcing performance standards, and
(ii)resources).
248Section 247: supplemental
(1)Before acting under section 247(2) the regulator must give the registered provider a notice—
(a)specifying grounds on which action might be taken under that section,
(b)warning the provider that the regulator is considering action under that section, and
(c)explaining the effect of this section.
(2)The notice must specify a period during which the registered provider may make representations to the regulator.
(3)The period must—
(a)be a period of at least 28 days, and
(b)begin with the date on which the registered provider receives the notice.
(4)The regulator must send a copy of a notice under subsection (1) to—
(a)the HCA, and
(b)any other persons it thinks appropriate (having regard, in particular, to any person who provided information as a result of which the notice is given).
(5)A notice under subsection (1) must—
(a)refer to section 125 (voluntary undertaking), and
(b)indicate whether or to what extent the regulator would accept a voluntary undertaking instead of, or in mitigation of, action under section 247(2).
(6)Notice under subsection (1) may be combined with notice under one or more of sections 230, 242, 250 and 252.
(7)In imposing a requirement the regulator must have regard to views of—
(a)relevant tenants,
(b)the registered provider,
(c)the HCA, and
(d)if the regulator thinks it appropriate, any relevant local housing authority.
(8)If the regulator imposes a requirement it must send a copy to the HCA.
(9)A registered provider may appeal to the High Court against a requirement under section 247(2).
249Management transfer
(1)This section applies if as a result of an inquiry under section 206 or an audit under section 210 the regulator is satisfied that—
(a)the affairs of a registered provider have been mismanaged in relation to social housing, or
(b)a transfer of certain of a registered provider’s management functions would be likely to improve the management of some or all of its social housing.
(2)The regulator may require the registered provider to transfer management functions to a specified person.
(3)A requirement to transfer management functions may be imposed only with the Secretary of State’s consent (both as to the transfer and the terms).
(4)A requirement may relate to—
(a)the registered provider’s affairs generally in so far as they relate to social housing, or
(b)specified affairs relating to social housing.
(5)Transfer shall be on terms and conditions (including as to remuneration) specified in, or determined in accordance with, the requirement.
(6)A transferee manager shall have—
(a)any power specified in the requirement, and
(b)any other power in relation to the registered provider’s affairs required by the manager for the purposes specified in the requirement (including the power to enter into agreements and take other action on behalf of the registered provider).
250Section 249: supplemental
(1)Before acting under section 249(2) the regulator must give the registered provider a notice—
(a)specifying grounds on which action might be taken under that section,
(b)warning the provider that the regulator is considering action under that section, and
(c)explaining the effect of this section.
(2)The notice must specify a period during which the registered provider may make representations to the regulator.
(3)The period must—
(a)be a period of at least 28 days, and
(b)begin with the date on which the registered provider receives the notice.
(4)The regulator must send a copy of a notice under subsection (1) to—
(a)the HCA, and
(b)any other persons it thinks appropriate (having regard, in particular, to any person who provided information as a result of which the notice is given).
(5)A notice under subsection (1) must—
(a)refer to section 125, and
(b)indicate whether or to what extent the regulator would accept a voluntary undertaking under that section instead of, or in mitigation of, action under section 249(2).
(6)Notice under subsection (1) may be combined with notice under one or more of sections 230, 242, 248 and 252.
(7)In imposing a requirement the regulator must have regard to views of—
(a)relevant tenants,
(b)the registered provider,
(c)the HCA, and
(d)if the regulator thinks it appropriate, any relevant local housing authority.
(8)If the regulator imposes a requirement it must send a copy to the HCA.
(9)A registered provider may appeal to the High Court against a requirement under section 249(2).
251Appointment of manager
(1)This section applies if the regulator is satisfied that—
(a)a registered provider has failed to meet a standard under section 193 or 194, or
(b)the affairs of a registered provider have been mismanaged in relation to social housing.
(2)The regulator may—
(a)appoint an individual as a manager of the registered provider, or
(b)require the registered provider to appoint an individual as a manager.
(3)An appointment or requirement may relate to a manager—
(a)of the registered provider’s affairs generally in so far as they relate to social housing, or
(b)of specified affairs relating to social housing.
(4)Appointment shall be on terms and conditions (including as to remuneration) specified in, or determined in accordance with, the appointment or requirement.
(5)A manager shall have—
(a)any power specified in the appointment or requirement, and
(b)any other power in relation to the registered provider’s affairs required by the manager for the purposes specified in the appointment or requirement (including the power to enter into agreements and take other action on behalf of the registered provider).
252Section 251: supplemental
(1)Before acting under section 251(2) the regulator must give the registered provider a notice—
(a)specifying grounds on which action might be taken under that section,
(b)warning the provider that the regulator is considering action under that section, and
(c)explaining the effect of this section.
(2)The notice must specify a period during which the registered provider may make representations to the regulator.
(3)The period must—
(a)be a period of at least 28 days, and
(b)begin with the date on which the registered provider receives the notice.
(4)The regulator must send a copy of a notice under subsection (1) to—
(a)the HCA, and
(b)any other persons it thinks appropriate (having regard, in particular, to any person who provided information as a result of which the notice is given).
(5)A notice under subsection (1) must—
(a)refer to section 125 (voluntary undertaking), and
(b)indicate whether or to what extent the regulator would accept a voluntary undertaking instead of, or in mitigation of, action under section 251(2).
(6)Notice under subsection (1) may be combined with notice under one or more of sections 230, 242, 248 and 250.
(7)The regulator must notify the HCA of an appointment or requirement under section 251(2).
(8)The regulator may require a manager to report to the regulator on the affairs specified in the appointment or requirement under section 251(3).
(9)A registered provider may appeal to the High Court against an appointment or requirement under section 251(2).
253Transfer of land
(1)This section applies if as a result of an inquiry under section 206 or an audit under section 210 the regulator is satisfied that—
(a)the affairs of a registered provider have been mismanaged in relation to social housing, or
(b)a transfer of land by a registered provider would be likely to improve the management of the land.
(2)The regulator may require the registered provider to transfer specified land—
(a)to the regulator, or
(b)to another specified registered provider.
(3)A requirement may be imposed on a profit-making registered provider only in relation to its social housing and associated land.
(4)For the purposes of subsection (3) land is associated with social housing if the regulator thinks that it is used in connection with the social housing or its management.
(5)A requirement may not be imposed on a non-profit registered provider requiring it to transfer land to a profit-making registered provider.
(6)A requirement may not be imposed on a registered charity.
(7)A requirement may be imposed on a charity which is not registered (C1), but only for transfer to another charity (C2) whose objects the regulator thinks are similar to those of C1.
254Section 253: supplemental
(1)A transfer under section 253 shall be on terms specified in, or determined in accordance with, the requirement.
(2)The price shall be not less than an amount certified by the district valuer as the amount the property would fetch if sold by a willing seller to another registered provider.
(3)The terms shall include provision as to the payment of any debts or liabilities in respect of the land (whether or not secured on it).
(4)A requirement to transfer land may be imposed only with the Secretary of State’s consent (both as to the transfer and the terms).
(5)Where land is transferred to the regulator under section 253(2)(a)—
(a)the regulator may dispose of it only to a registered provider, and
(b)if it is transferred by a non-profit registered provider, the regulator may dispose of it only to a non-profit registered provider.
255Amalgamation
(1)This section applies if as a result of an inquiry under section 206 or an audit under section 210 the regulator is satisfied that—
(a)the affairs of a non-profit registered provider which is an industrial and provident society have been mismanaged in relation to social housing, or
(b)the management of social housing owned by a non-profit registered provider which is an industrial and provident society would be improved if the provider were amalgamated with another industrial and provident society.
(2)The regulator may make and execute on behalf of the society an instrument providing for the amalgamation of the society with another industrial and provident society.
(3)The regulator may act under subsection (2) only with the Secretary of State’s consent.
(4)An instrument providing for the amalgamation of a society (“S1”) with another has the same effect as a resolution by S1 under section 50 of the Industrial and Provident Societies Act 1965 (c. 12) (amalgamation of societies by special resolution).
(5)A copy of an instrument shall be sent to and registered by the Financial Services Authority.
(6)An instrument does not take effect until the copy is registered.
(7)The copy must be sent for registration during the period of 14 days beginning with the date of execution; but a copy registered after that period is valid.
(8)Any body created by virtue of an amalgamation—
(a)must be registered by the regulator and designated as a non-profit organisation, and
(b)pending registration shall be treated as registered and designated as a non-profit organisation.