Localism Act 2011

9 After that section insert—

“198A Failure to meet standard under section 193

(1) Failure by a registered provider to meet a standard under section 193 (standards relating to consumers matters) is a ground for exercising a power in this Chapter or Chapter 7.

(2) But a power to which this subsection applies may be exercised on that ground only if the regulator thinks there are reasonable grounds to suspect that—

(a) the failure has resulted in a serious detriment to the registered provider’s tenants or potential tenants, or

(b) there is a significant risk that, if no action is taken by the regulator, the failure will result in a serious detriment to the registered provider’s tenants or potential tenants.

(3) Subsection (2) applies to the powers conferred by any of the following—

(a) section 199 (surveys);

(b) section 201 (inspections);

(c) section 206 (inquiries);

(d) section 220 (enforcement notices);

(e) section 227 (penalties);

(f) section 237 (compensation);

(g) section 247 (management tender);

(h) section 251 (appointment of manager).

(4) The risk that, if no action is taken by a registered provider or the regulator, the registered provider will fail to meet a standard under section 193 is a ground for exercising a power in this Chapter.

(5) But a power in this Chapter may be exercised on that ground only if the regulator thinks there are reasonable grounds to suspect that, if the failure occurs—

(a) the failure will result in a serious detriment to the registered provider’s tenants or potential tenants, or

(b) there will be a significant risk that, if no action is taken by the regulator, the failure will result in a serious detriment to the registered provider’s tenants or potential tenants.

(6) In considering whether to exercise a power within subsection (1) or (4) on the ground mentioned in that subsection, the regulator must have regard to any information it has received from any of the following—

(a) the Commission for Local Administration in England;

(b) a housing ombudsman appointed in accordance with a scheme approved under Schedule 2 to the Housing Act 1996;

(c) any body appearing to the regulator to represent the interests of tenants of social housing in England;

(d) a county council in England, a district council, a London borough council, the Common Council of the City of London in its capacity as a local authority, the Council of the Isles of Scilly or a parish council;

(e) a member of any of the bodies listed in paragraph (d);

(f) the Greater London Authority;

(g) a Member of Parliament;

(h) a fire and rescue authority under the Fire and Rescue Services Act 2004;

(i) the Health and Safety Executive;

(j) the Secretary of State.

198B Failure to meet standard under section 194

(1) Failure by a registered provider to meet a standard under section 194 (standards relating to economic matters) is a ground for exercising a power in this Chapter or Chapter 7 (if the power is otherwise exercisable in relation to a registered provider of that kind).

(2) The risk that, if no action is taken by a registered provider or the regulator, the registered provider will fail to meet a standard under section 194 is a ground for exercising a power in this Chapter.”