The Regulation of Social Housing (Influence of Local Authorities) (England) Regulations 2017

EXPLANATORY NOTE

(This note is not part of the Regulations)

These regulations make provision to reduce the amount of local authority influence over private registered providers (PRPs). PRPs are defined in Part 2 of the Housing and Regeneration Act 2008 (c.17).

These regulations apply notwithstanding any provision in a PRP’s constitution or any contractual arrangement a PRP may have in relation to its constitutional arrangements.

These regulations do not apply to a body which is both a wholly-controlled subsidiary of a local authority and is a non-profit organisation within the meaning of section 115 of the Housing and Regeneration Act 2008.

Regulation 3 requires that the percentage of a PRP’s total board membership which is comprised of officers appointed by a local authority must be no more than 24%. A local authority must nominate before the appointed day (which falls six months from the date the instrument is made) which of its officers is to be removed. In the event that it does not, a PRP itself may, after that date, select which of those officers to remove.

Regulation 4 provides that any provision of a constitution of a PRP requiring local authority officers to be present for a quorum to be reached shall have no effect on and after the appointed day.

Regulation 5 is concerned with the voting rights a local authority may have as part of its membership of a PRP. It provides for the re-assignment of voting rights of a local authority which are held before these regulations come into force. If a PRP’s constitution is not amended accordingly by the appointed day, local authority membership voting rights are thereafter re-assigned to the remaining members, in a pro-rata proportion to their existing share of votes.

Where a constitution of a PRP (whose board contains local authority officers) provides for a resolution to be approved other than by a majority, regulation 6 provides that, on and after the appointed day, that provision has effect to require a majority of no more than 75% of the eligible votes cast. It also makes provision to ensure amendment of the constitution of a PRP to reflect this requirement.

A full regulatory impact assessment has not been prepared for this instrument as no impact on business or the private or voluntary sector is foreseen. PRPs are classified to the public sector at the time this instrument is made.