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The Housing (Northern Ireland) Order 1992

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Transfer of land of registered housing associationsN.I.

26.[F1(1) This Article applies where the Department is satisfied, as the result of an inquiry under Article 23 or an audit under Article 24, that the three conditions set out in paragraphs (1A) to (1C) are met.

(1A) The first condition is that a registered housing association has failed, or is failing, to comply with—

(a)a duty imposed by this Order or by any other statutory provision, or

(b)a requirement imposed on the association by the Department under this Order or any other statutory provision,

relating to its housing activities or its financial or other affairs.

(1B) The second condition is that it is desirable for the purpose of—

(a)protecting the interests of tenants of the association, or

(b)protecting the assets of the association,

that the land belonging to the association, or any part of that land, should be transferred in accordance with this Article.

(1C) The third condition is that the association is unwilling to take that action.

(1D) The Department may make a direction that—

(a)identifies the land, or such part of it as the Department may determine, and

(b)requires the association to transfer the land so identified to another body in accordance with paragraph (2).]

(2) A direction under [F2paragraph (1D)] may require the association concerned to transfer [F3the land identified in the direction] ,—

(a)in a case where that association is a charity, to another registered housing association which is a charity and the objects of which appear to the Department to be, as nearly as practicable, akin to those of the association directed to make the transfer; and

(b)in any other case, to the Department or to another registered housing association.

(3) A transfer in pursuance of a direction under [F4paragraph (1D)] shall be made on the terms that the Department or, as the case may be, the association to which [F5the identified land] is transferred will pay or undertake to pay to the association making the transfer such sum, if any, as will be necessary to defray all its proper debts and liabilities (including any debts and liabilities secured on [F5the identified land] to be transferred) after taking into account any money or other assets belonging to the association.

(4) If it appears to the Department to be likely that, as a result of a transfer in pursuance of a direction under [F6paragraph (1D)] , the association making the transfer will be dissolved as mentioned in paragraph (a) or paragraph (b) of section 64 of the Act of 1969, the Department shall secure that the costs of such a dissolution are taken into account in determining the sum payable to the association under paragraph (3).

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