Part 2Regulation of Social Housing

Chapter 3Registration

Eligibility

112Eligibility for registration

1

An English body is eligible for registration if—

a

it satisfies the following conditions, and

b

it does not fall within the exceptions in section 113.

2

Condition 1 is that the body—

a

is a provider of social housing in England, or

b

intends to become a provider of social housing in England.

3I1

Condition 2 is that the body satisfies any relevant criteria set by the regulator as to—

a

its financial situation,

b

its constitution, and

c

other arrangements for its management.

4I1

Before setting criteria the regulator must consult—

a

the HCA,

b

one or more bodies appearing to it to represent the interests of registered providers,

F1ba

any body for the time being nominated under section 278A,

and

c

one or more F2otherbodies appearing to it to represent the interests of tenants.

113Local authority non-registrable bodies

1

This section sets out the exceptions to section 112(1).

2

Exception 1 is a local housing authority.

3

Exception 2 is a county council.

4

Exception 3 is a person controlled by an authority within Exception 1 or 2.

5I2

The Secretary of State may make regulations defining when a person is controlled by an authority for the purpose of Exception 3.

6I2

The definition may be expressed by reference to a definition for the time being given in a document identified by regulations under section 21(2)(b) of the Local Government Act 2003 (c. 26) (accounting practices for local authorities).

I3I4114Registration of local authorities

1

The Secretary of State may by order—

a

repeal section 113, or

b

amend it so as to permit the registration of specified classes of local authority.

2

The Secretary of State may by order require the regulator to register—

a

a specified local authority, or

b

a specified class of local authority.

3

Registration under subsection (2)—

a

takes effect in accordance with any provision of the order about timing or other procedural or incidental matters,

b

does not require an application for registration, and

c

may apply to a local authority whether or not it is eligible for registration by virtue of subsection (1).

4

If the Secretary of State thinks it necessary or desirable in connection with the registration of local authorities, the Secretary of State may by order—

a

provide for a provision of this Part or any other enactment not to apply in relation to registered local authorities;

b

provide for a provision of this Part or any other enactment to apply with specified modifications in relation to registered local authorities;

c

amend a provision of this Part or any other enactment.

5

In this section—

a

local authority” means an authority or person to whom section 113 applies or has applied, and

b

registered local authorities” means authorities or persons who are registered, registrable or to be registered as a result of an order under subsection (1) or (2) above.

6

Before making an order under this section the Secretary of State shall consult—

a

any authority or person likely to be affected by it, and

b

such other persons as the Secretary of State thinks fit.

115Profit-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.