Part 2Regulation of Social Housing
Chapter 3Registration
Eligibility
I1115Profit-making and non-profit organisations
1
Each entry in the register shall designate the body registered as either—
a
a non-profit organisation, or
b
a profit-making organisation.
2
A body is a non-profit organisation if it is a registered or non-registrable charity.
3
A body is also a non-profit organisation if it satisfies the following conditions.
4
Condition 1 is that the body—
a
does not trade for profit, or
b
is prohibited by its constitution from issuing capital with interest or dividend at a rate exceeding that prescribed under section 1(1)(b) of the Housing Associations Act 1985 (c. 69).
5
Condition 2 is that a purpose of the body is the provision or management of housing.
6
Condition 3 is that any other purposes of the body are connected with or incidental to the provision of housing.
7
The Secretary of State may make regulations providing that a specified purpose is to be, or not to be, treated as connected with or incidental to the provision of housing.
8
A body which is not a non-profit organisation under subsection (2) or (3) is a profit-making organisation.
9
If the regulator thinks that what was a profit-making organisation has become a non-profit organisation, the regulator must change the registered designation accordingly.
F110
Subsection (1) does not apply to the entry of a local authority in the register (and, accordingly, references to “profit-making” and “non-profit” in connection with a registered provider do not refer to a local authority).