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3.—(1) Where, under—
(a)section 107(5) or 116(5) of the Act; or
(b)paragraph 2(6) or 10(6) of Schedule 7 to the Act,
a local housing authority are to be treated as a lessee of premises (or a part of premises) under a lease(1), the following paragraphs apply.
(2) As soon as an order is made the local housing authority making the order must serve on the immediate lessor of the relevant person (“the lessor”) a notice with the following details—
(a)the type of order by reference to the relevant provision of the Act under which it has been made;
(b)the date the order comes into force;
(c)a summary of the effect the order has on the validity of the lease, by reference to the relevant provision of the Act; and
(d)the name and address of the local housing authority or any person authorised to receive on their behalf any future demand for ground rent, service charges or other charges due, or any notices or other documents in respect of the premises.
(3) From the date the order comes into force neither the local housing authority nor the relevant person shall be liable for the payment of ground rent, service charges or other charges due under the lease, whether due before or after the date of the order if—
(a)the notice described in paragraph (2) has been served on the lessor; and
(b)the lessor fails to send the demand for such payment to the local housing authority.
(4) From the date the order comes into force the local housing authority—
(a)are liable to pay any ground rent, service charges or other charges demanded of them that fall due under the lease in respect of a period after such date;
(b)may pay any outstanding ground rent, service charges or other charges due in respect of a period before such date;
(c)may challenge the reasonableness of any demands for such payments referred to in sub-paragraphs (a) or (b), whether on their own behalf or on behalf of the relevant person; and
(d)must send a copy of any demand for payment of ground rent, service charges or other charges, or any other notice or other document they receive from the lessor, to the relevant person (if his whereabouts are known) within 10 days of receiving it.
(5) Where the relevant person receiving a copy of a demand, notice or other document under paragraph (4)(d) wishes to dispute any matter contained in it the local housing authority must provide such information and assistance as he may reasonably require.
(6) The relevant person may not require the local housing authority to delay payment of any ground rent, service charge or other charges that the local housing authority reasonably believe are due or outstanding under the lease, whether or not he disputes a demand for such payment.
For the meaning of “lease”, “lessee” and “lessor” see section 262(1) to (5) of the Act
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