The Regulatory Reform (Housing Management Agreements) Order 2003

Explanatory Note

(This note is not part of the Order)

Section 27 of the Housing Act 1985 (“the 1985 Act”) enables a local housing authority, with the approval of the Secretary of State, to appoint a manager to exercise specified housing management functions in respect of specified houses and associated land. This Order substitutes a new section 27 with amendments.

The amendments, principally:

• enable a manager, by a sub-agreement, to appoint another person to exercise some or all of the delegated functions provided the authority has consented and the Secretary of State has given approval.

• require the approval of the Secretary of State to the variation of a provision of a management agreement where the provision has been specified, or is within a description specified, by the Secretary of State in giving approval to the making of a management agreement.

• enable the Secretary of State to specify a moratorium period during which approval is not required to a sub-agreement and the circumstances in which this is to apply.

• enable the Secretary of State to specify circumstances when approval is not required to the making of a sub-agreement under a management agreement.

• removes the reference to a manager acting as agent of the local housing authority. The new subsections (13), (14) and (15) inserted into section 27 determine the responsibilities of the parties. Subsections (13) and (14) provide that the authority is liable for any act or omission of a manager in the exercise of the management functions under a management agreement. Two exceptions to this are provided by subsection (15). The management agreement between the authority and the manager, or between one manager and another, will determine the responsibilities and liabilities of the parties to the agreement. The second exception is where criminal liability arises from the manager’s actions or failure to act in connection with the exercise of the functions under the management agreement.

The functions of the Secretary of State under section 27 are, as respects Wales, exercisable by the National Assembly for Wales by virtue of article 2 of and Schedule 1 to the National Assembly for Wales (Transfer of Functions) Order 1999. Article 3 of this Order provides that the reference in that Order to the 1985 Act is treated as a reference to that Act as amended by this Order. Accordingly the additional functions of the Secretary of State of approving sub-agreements or variations to agreements are, as respects Wales, exercisable by the National Assembly.