Housing Act 1988

• (a) on becoming a member of the staff of the Corporation in consequence of that paragraph, or

• (b) having unreasonably refused the offer,

. . . he shall not be treated for the purposes of any scheme under section 24 of the Superannuation Act 1972 or any other scheme as having been retired on redundancy.

• (3) Without prejudice to sub-paragraph (2) above, where a person has unreasonably refused an offer made to him in pursuance of paragraph 9 above, the Housing Corporation shall not terminate that person’s employment unless it has first had regard to the feasibility of employing him in a suitable alternative position with it.

• (4) Where a person continues in employment in the Housing Corporation either—

• (a) not having unreasonably refused an offer made to him in pursuance of this paragraph, or

• (b) not having been placed in a suitable alternative position as mentioned in sub-paragraph (3) above,

he shall be treated for all purposes as if the offer mentioned in paragraph 9 above had not been made.

11

• (1) Any dispute as to whether an offer of employment complies with sub-paragraph (2) of paragraph 9 above shall be referred to and be determined by an employment tribunal.

• (2) An employment tribunal shall not consider a complaint referred to it under sub-paragraph (1) above unless the complaint is presented to the tribunal before the end of the period of 3 months beginning with the date of the offer of employment or, in a case where the tribunal is satisfied that it was not reasonably practicable for the complaint to be presented before the end of the period of 3 months, within such further period as the tribunal considers reasonable.

• (3) Subject to sub-paragraph (4) below, there shall be no appeal from the decision of an employment tribunal under this paragraph.

• (4) An appeal to the Employment Appeal Tribunal may be made only on a question of law arising from the decision of, or in proceedings before, an employment tribunal under this paragraph.

Proceedings

12

• (1) The quorum of the Corporation and the arrangements relating to its meetings shall, subject to any directions given by the Secretary of State, be such as the Corporation may determine.

• (2) The validity of proceedings of the Corporation is not affected by any defect in the appointment of any of its members.

13

• (1) Where a member of the Corporation is in any way directly or indirectly interested in a contract made or proposed to be made by the Corporation—

• (a) he shall disclose the nature of his interest at a meeting of the Corporation, and the disclosure shall be recorded in the minutes of the Corporation; and

• (b) he shall not take any part in any decision of the Corporation with respect to the contract.

• (2) A general notice given by a member at a meeting of the Corporation to the effect that he is a member of a specified company or firm and is to be regarded as interested in any contract which may be made with the company or firm is a sufficient disclosure of his interest for the purposes of this paragraph in relation to a contract made after the date of the notice.

• (3) A member need not attend in person at a meeting of the Corporation in order to make any disclosure which he is required to make under this paragraph provided he takes reasonable steps to secure that the disclosure is brought up and read at the meeting.

14

• (1) The fixing of the Corporation’s seal may be authenticated by the signature of the Chairman or of any other person authorised for the purpose.

• (2) A document purporting to be duly executed under the seal of the Corporation shall be received in evidence and be deemed to be so executed unless the contrary is proved.

SCHEDULE 6

Part I — Amendments of Part I with Respect to the Housing Corporation, Housing for Wales and Scottish Homes

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

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3

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4

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5

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6

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7

• (1) In section 9 (control by Corporation of disposition of land by housing associations) for subsection (1) there shall be substituted the following subsections—

(1) Subject to section 10 and sections 81(7), 105(6) and 133(7) of the Housing Act 1988, the consent of the Corporation is required for any disposition of land by a registered housing association. (1A) Subject to section 10, the consent of the relevant Corporation is required for any disposition of grant-aided land (as defined in Schedule 1) by an unregistered housing association; and for this purpose “ the relevant Corporation ” means,— (a) if the land is in England, the Housing Corporation; (b) if the land is in Scotland, Scottish Homes, and (c) if the land is in Wales, Housing for Wales.

• (2) In subsection (3) of that section—

• (a) for the words “the consent of the Corporation”, in the first place where they occur, there shall be substituted “consent”; and

• (b) for the words “the consent of the Corporation”, in the second place where they occur, there shall be substituted “that consent”.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

• (1) In section 10 (dispositions excepted from section 9), in subsection (1) for the words from “the Charity Commissioners”, in the second place where they occur, onwards there shall be substituted

before making an order in such a case the Charity Commissioners shall consult,— (a) in the case of dispositions of land in England, the Housing Corporation; (b) in the case of dispositions of land in Scotland, Scottish Homes; and (c) in the case of dispositions of land in Wales, Housing for Wales.

• (2) In subsection (2) of that section at the end of paragraph (b) there shall be inserted

or (c) a letting of land under an assured tenancy or an assured agricultural occupancy, or (d) a letting of land in England or Wales under what would be an assured tenancy or an assured agricultural occupancy but for any of paragraphs 4 to 8 of Schedule 1 to the Housing Act 1988, or (e) a letting of land in Scotland under what would be an assured tenancy but for any of paragraphs 3 to 8 and 12 of Schedule 4 to the Housing (Scotland) Act 1988.

9

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10

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11

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12

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13

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14

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15

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16

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17

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18

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19

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20

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21

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22

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23

In section 33 (recognition of central association), in subsection (1) after “housing associations” there shall be inserted “in Great Britain or in any part of Great Britain”.

24

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25

In section 39 (minor definitions) before the definition of “mental disorder” there shall be inserted—

“assured tenancy” has, in England and Wales, the same meaning as in Part I of the Housing Act 1988 and, in Scotland, the same meaning as in Part II of the Housing (Scotland) Act 1988; “assured agricultural occupancy” has the same meaning as in Part I of the Housing Act 1988.

26

In section 40 (index of defined expressions in Part I)—

• (a) after the entry relating to “appropriate registrar” there shall be inserted—

“assured agricultural occupancy” section 39 “assured tenancy” section 39

;

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II — Amendments of Part II with Respect to the Housing Corporation and Housing for Wales

27

• (1) In section 63 (building society advances) for the words “the Housing Corporation”, in each place where they occur in subsections (1) and (2), there shall be substituted “one of the Corporations” and in subsection (1) (b) for the words “the Corporation” there shall be substituted “that one of the Corporations which is concerned”.

• (2) After subsection (2) of that section there shall be inserted the following subsection—

(2A) In this section “the Corporations” means the Housing Corporation and Housing for Wales

.

28

• (1) In section 69 (power to vary or terminate certain agreements) at the end of subsection (1)(a) there shall be added “(including such an agreement under which rights and obligations have been transferred to Housing for Wales)”.

• (2) After subsection (2) of that section there shall be inserted the following subsection—

(2A) In the case of an agreement under which rights and obligations have been transferred to Housing for Wales, the reference to a party to the agreement includes a reference to Housing for Wales.

29

In section 69A (land subject to housing management agreement) for the words “housing association grant, revenue deficit grant or hostel deficit grant” there shall be substituted “grant under section 50 (housing association grant) or section 51 (revenue deficit grant) of the Housing Act 1988”.

30

• (1) In Part I of Schedule 5 (residual subsidies)—

• (a) in paragraph 5(3) the words “at such times and in such places as the Treasury may direct” and “with the approval of the Treasury” shall be omitted; . . .

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) In Part II of that Schedule, in paragraph 5(3) the words “at such times and in such places as the Treasury may direct” and “with the approval of the Treasury” shall be omitted.

Part III — Amendments of Part III with Respect to the Housing Corporation and Housing for Wales

31

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) In subsection (2) of that section for the words “the Corporation” there shall be substituted “the Housing Corporation”.

• (3) At the end of that section there shall be inserted the following subsections—

(3) In this Part “registered housing association” in relation to the Corporation, means a housing association registered in the register maintained by the Corporation. (4) In this Part,— (a) in relation to land in Wales held by an unregistered housing association, “the Corporation” means Housing for Wales; and (b) in relation to land outside Wales held by such an association, “the Corporation” means the Housing Corporation.

32

In section 75 (general functions), in subsection (1)(c) for the words “a register of housing associations” there shall be substituted “the register of housing associations referred to in section 3”.

33

At the end of section 77 (advisory service) there shall be added the following subsection—

(3) The powers conferred on the Corporation by subsections (1) and (2) may be exercised by the Housing Corporation and Housing for Wales acting jointly

.

34

• (1) In section 83 (power to guarantee loans), in subsection (3) (maximum amount outstanding in respect of loans etc.) for the words “the Corporation”, in each place where they occur, there shall be substituted “the Housing Corporation”.

• (2) After subsection (3) of that section there shall be inserted the following subsection—

(3A) The aggregate amount outstanding in respect of— (a) loans for which Housing for Wales has given a guarantee under this section, and (b) payments made by Housing for Wales in meeting an obligation arising by virtue of such a guarantee and not repaid to Housing for Wales, shall not exceed £30 million or such greater sum not exceeding £50 million as the Secretary of State may specify by order made with the approval of the Treasury

.

• (3) In subsection (4) of that section (procedure for orders of Secretary of State) after the words “subsection (3)” there shall be inserted “or subsection (3A)”.

35

36

In section 106(1) (minor definitions: general) for the definition of “housing activities” there shall be substituted the following—

“housing activities”, in relation to a registered housing association, means all its activities in pursuance of such of its purposes, objects or powers as are of a description mentioned in section 1(1) (a) or subsections (2) to (4) of section 4.

37

In Schedule 6, paragraph 3(3)(b) shall be omitted.

SCHEDULE 7

Members

1

A housing action trust (in this Schedule referred to as a “trust”) shall consist of a chairman and such number of other members (not less than five but not exceeding eleven) as the Secretary of State may from time to time appoint.

2

• (1) In appointing members of a trust the Secretary of State shall have regard to the desirability of securing the services of persons who live in or have special knowledge of the locality in which the designated area is situated and before appointing any such person as a member he shall consult every local housing authority any part of whose district is included in the designated area.

• (2) Before appointing a person to be a member of a trust the Secretary of State shall satisfy himself that that person will have no financial or other interest likely to affect prejudicially the exercise of his functions as a member; and the Secretary of State may require a person whom he proposes to appoint to give him such information as he considers necessary for that purpose.

• (3) For the purposes of sub-paragraph (2) above, the fact that a person is or may become a tenant of a trust shall not be regarded as giving to that person an interest likely to affect prejudicially the exercise of his functions as a member.

• (4) The Secretary of State shall appoint one of the members to be chairman and, if he thinks fit, another to be deputy chairman of the trust.

3

Subject to the following provisions of this Schedule, each member of the trust as such and the chairman and deputy chairman as such shall hold and vacate office in accordance with his appointment.

4

If the chairman or deputy chairman ceases to be a member of the trust, he shall also cease to be chairman or deputy chairman, as the case may be.

5

Any member of the trust may, by notice in writing addressed to the Secretary of State, resign his membership; and the chairman or deputy chairman may, by like notice, resign his office as such.

6

If the Secretary of State is satisfied that a member of the trust (including the chairman or deputy chairman)—

• (a) has become bankrupt or made an arrangement with his creditors or has had a debt relief order (under Part 7A of the Insolvency Act 1986) made in respect of him, or

• (b) has been absent from meetings of the trust for a period longer than three consecutive months without the permission of the trust, or

• (c) is otherwise unable or unfit to discharge the functions of a member, or is unsuitable to continue as a member,

the Secretary of State may remove him from his office.

7

A member of the trust who ceases to be a member or ceases to be chairman or deputy chairman shall be eligible for reappointment.

Remuneration

8

The trust may pay to each member such remuneration and allowances as the Secretary of State may . . . determine.

9

The trust may pay or make provision for paying, to or in respect of any member, such sums by way of pensions, allowances and gratuities as the Secretary of State may . . . determine and, . . ., the Secretary of State may undertake to meet any liabilities arising in respect of such pensions, allowances or gratuities after the dissolution of the trust.

10

Where a person ceases to be a member of a trust and it appears to the Secretary of State that there are special circumstances which make it right for him to receive compensation, the trust may make to him payment of such amount as the Secretary of State may . . . determine.

Staff

11

• (1) There shall be a chief officer of the trust who shall be appointed by the trust with the approval of the Secretary of State.

• (2) The chief officer shall be responsible to the trust for the general exercise of the trust’s functions.

• (3) The trust may appoint such number of other employees as may be approved by the Secretary of State.

• (4) References in paragraph 12 below to employees of the trust include references to the chief officer as well as other employees.

12

• (1) Employees of the trust shall be appointed at such remuneration and on such other terms and conditions as the trust may determine.

• (2) The trust may pay such pensions, allowances or gratuities as it may determine to or in respect of any of its employees, make such payments as it may determine towards the provision of pensions, allowances or gratuities to or in respect of any of its employees or provide and maintain such schemes as it may determine (whether contributory or not) for the payment of pensions, allowances or gratuities to or in respect of any of its employees; and . . . the Secretary of State may undertake to meet any liabilities arising in respect of such pensions, allowances or gratuities after the dissolution of the trust.

• (3) The reference in sub-paragraph (2) above to pensions, allowances or gratuities to or in respect of any of the trust’s employees includes a reference to pensions, allowances or gratuities by way of compensation to or in respect of any of the trust’s employees who suffer loss of office or employment or loss or diminution of emoluments.

• (4) If an employee of the trust becomes a member and was by reference to his employment by the trust a participant in a pension scheme maintained by the trust for the benefit of any of its employees, the trust may determine that his service as a member shall be treated for the purposes of the scheme as service as an employee of the trust whether or not any benefits are to be payable to or in respect of him by virtue of paragraph 9 above.

• (5) A determination of the trust for the purposes of this paragraph is ineffective unless made with the approval of the Secretary of State . . ..

Meetings and proceedings

13

The quorum of the trust and the arrangements relating to its meetings shall, subject to any directions given by the Secretary of State, be such as the trust may determine.

14

The validity of any proceedings of the trust shall not be affected by any vacancy among its members or by any defect in the appointment of any of its members.

Instruments, etc.

15

The fixing of the seal of the trust shall be authenticated by the signature of the chairman or of some other member authorised either generally or specially by the trust to act for that purpose.

16

Any document purporting to be a document duly executed under the seal of the trust shall be received in evidence and shall, unless the contrary is proved, be deemed to be so executed.

17

A document purporting to be signed on behalf of a trust shall be received in evidence and shall, unless the contrary is proved, be deemed to be so signed.

House of Commons disqualification

18

In Part III of Schedule 1 to the House of Commons Disqualification Act 1975 (disqualifying offices), there shall be inserted at the appropriate place the following entry— “ Any member, in receipt of remuneration, of a housing action trust (within the meaning of Part III of the Housing Act 1988). ”

SCHEDULE 8

Part I — Preliminary

1

• (1) References in this Schedule to a trust are to a housing action trust.

• (2) The financial year of a trust shall begin with 1 April and references to a financial year in relation to a trust shall be construed accordingly.

Part II — Finance

Financial duties

2

• (1) After consultation with a trust, the Secretary of State may, with the Treasury’s approval, determine the financial duties of the trust, and different determinations may be made in relation to different trusts or for different functions and activities of the same trust.

• (2) The Secretary of State shall give the trust notice of every determination, and a determination may—

• (a) relate to a period beginning before the date on which it is made;

• (b) contain incidental or supplementary provisions; and

• (c) be varied by a subsequent determination.

Government grants

3

• (1) The Secretary of State may (out of moneys provided by Parliament and with the consent of the Treasury) pay to a trust, in respect of the exercise of its functions and in respect of its administrative expenses, such sums as he may (with the approval of the Treasury) determine.

(2)

The payment may be made on such terms as the Secretary of State (with the approval of the Treasury) provides.

Borrowing

4

• (1) A trust may borrow temporarily, by way of overdraft or otherwise, such sums as it may require for meeting its obligations and discharging its functions—

• (a) in sterling from the Secretary of State; or

• (b) with the consent of the Secretary of State, or in accordance with any general authority given by the Secretary of State, either in sterling or in currency other than sterling from a person other than the Secretary of State.

• (2) A trust may borrow otherwise than by way of temporary loan such sums as the trust may require—

• (a) in sterling from the Secretary of State; or

• (b) with the consent of the Secretary of State, in a currency other than sterling from a person other than the Secretary of State.

• (3) The Secretary of State may lend to a trust any sums it has power to borrow from him under sub-paragraph (1) or sub-paragraph (2) above.

(4)

The Treasury may issue to the Secretary of State out of the National Loans Fund any sums necessary to enable him to make loans under sub-paragraph (3) above.

• (5) Loans made under sub-paragraph (3)

above shall be repaid to the Secretary of State at such times and by such methods, and interest on the loans shall be paid to him at such times and at such rates, as he may determine.

• (6) All sums received by the Secretary of State under sub-paragraph (5)

above shall be paid into the National Loans Fund.

(7)

References in this paragraph to the Secretary of State are references to him acting with the approval of the Treasury.

Guarantees

5

• (1) The Treasury may guarantee, in such manner and on such conditions as they think fit, the repayment of the principal of and the payment of interest on any sums which a trust borrows from a person or body other than the Secretary of State.

• (2) Immediately after a guarantee is given under this paragraph, the Treasury shall lay a statement of the guarantee before each House of Parliament; and, where any sum is issued for fulfilling a guarantee so given, the Treasury shall lay before each House of Parliament a statement relating to that sum, as soon as possible after the end of each financial year, beginning with that in which the sum is issued and ending with that in which all liability in respect of the principal of the sum and in respect of interest on it is finally discharged.

• (3) Any sums required by the Treasury for fulfilling a guarantee under this paragraph are to be charged on and issued out of the Consolidated Fund.

• (4) If any sums are issued in fulfilment of a guarantee given under this paragraph, the trust shall make to the Treasury, at such times and in such manner as the Treasury may from time to time direct, payments of such amounts as the Treasury so direct in or towards repayment of the sums so issued and payments of interest, at such rates as the Treasury so direct, on what is outstanding for the time being in respect of sums so issued.

• (5) Any sums received by the Treasury in pursuance of sub-paragraph (4) above shall be paid into the Consolidated Fund.

Assumed debt

6

• (1) On any acquisition to which this paragraph applies, a trust shall assume a debt to the Secretary of State of such amount as may be notified to the trust in writing by him, with the approval of the Treasury.

• (2) This paragraph applies to any acquisition by the trust of property held—

• (a) by or on behalf of the Crown; or

• (b) by a company all of whose shares are held by or on behalf of the Crown or by a wholly owned subsidiary of such a company.

• (3) Subject to sub-paragraph (4) below, the amount to be notified is the aggregate of the following—

• (a) the consideration given when the property was first brought into public ownership; and

• (b) the costs and expenses of and incidental to its being brought into public ownership.

• (4) If it appears to the Secretary of State that there has been such a change in circumstances since the property was first brought into public ownership that its true value would not be reflected by reference to the consideration mentioned in sub-paragraph (3) above, the Secretary of State, with the approval of the Treasury, shall determine the amount to be notified.

• (5) The rate of interest payable on the debt assumed by a trust under this paragraph, and the date from which interest is to begin to accrue, the arrangements for paying off the principal, and the other terms of the debt shall be such as the Secretary of State, with the approval of the Treasury, may from time to time determine.

• (6) Different rates and dates may be determined under sub-paragraph (5) above with respect to different portions of the debt.

• (7) Any sums received by the Secretary of State under sub-paragraph (5)

above shall be paid into the National Loans Fund.

Surplus funds

7

• (1) Where it appears to the Secretary of State, after consultation with the Treasury and the trust, that a trust has a surplus, whether on capital or on revenue account, after making allowance by way of transfer to reserve or otherwise for its future requirements, the trust shall, if the Secretary of State with the approval of the Treasury and after consultation with the trust so directs, pay to the Secretary of State such sum not exceeding the amount of that surplus as may be specified in the direction.

(2)

Any sum received by the Secretary of State under this paragraph shall, subject to sub-paragraph (4) below, be paid into the Consolidated Fund.

(3)

The whole or part of any payment made to the Secretary of State by a trust under sub-paragraph (1) above shall, if the Secretary of State with the approval of the Treasury so determines, be treated as made by way of repayment of such part of the principal of loans under paragraph 4(3) above, and as made in respect of the repayments due at such times, as may be so determined.

• (4) Any sum treated under sub-paragraph (3)

above as a repayment of a loan shall be paid by the Secretary of State into the National Loans Fund.

Financial limits

8

• (1) The aggregate amount of the sums mentioned in sub-paragraph (2) below shall not exceed such sum as the Secretary of State, with the consent of the Treasury, may by order made by statutory instrument specify.

• (2) The sums are—

• (a) sums borrowed by all trusts under paragraph 4 above minus repayments made in respect of the sums; and

• (b) sums issued by the Treasury in fulfilment of guarantees under paragraph 5 above of debts of all trusts.

• (3) No order shall be made under sub-paragraph (1) above unless a draft of it has been laid before, and approved by a resolution of, the House of Commons.

Grants and loans: accounts

9

• (1) The Secretary of State shall prepare in respect of each financial year an account—

• (a) of the sums paid to trusts under paragraph 3 above;

• (b) of the sums issued to him under paragraph 4(4) above and the sums received by him under paragraph 4(5) above and of the disposal by him of those sums; and

• (c) of the sums paid into the Consolidated Fund or National Loans Fund under paragraph 7 above.

• (2) The Secretary of State shall send the account to the Comptroller and Auditor General before the end of the month of November next following the end of that year.

• (3) The Comptroller and Auditor General shall examine, certify and report on the account and lay copies of it and of his report before each House of Parliament.

• (4) The form of the account and the manner of preparing it shall be such as the Treasury may direct.

Part III — General Accounts Etc.

Accounts

10

• (1) A trust shall keep proper accounts and other records in relation to them.

• (2) The accounts and records shall show, in respect of the financial year to which they relate, a true and fair view of the trust’s activities.

• (3) A trust shall prepare in respect of each financial year a statement of accounts complying with any requirement which the Secretary of State has (with the consent of the Treasury) notified in writing to the trust relating to—

• (a) the information to be contained in the statement;

• (b) the manner in which the information is to be presented; and

• (c) the methods and principles according to which the statement is to be prepared.

• (4) Subject to any requirement notified to the trust under sub-paragraph (3) above, in preparing any statement of accounts in accordance with that sub-paragraph the trust shall follow, with respect to each of the matters specified in paragraphs (a) to (c) of that sub-paragraph, such course as may for the time being be approved by the Secretary of State with the consent of the Treasury.

• (5) Section 6 of the National Audit Act 1983 (which enables the Comptroller and Auditor General to conduct examinations into the economy, efficiency and effectiveness with which certain departments, authorities and bodies have used their resources) shall apply to a trust.

Audit

11

• (1) The trust’s accounts and statements of accounts shall be audited by an auditor to be appointed annually by the Secretary of State in relation to the trust.

• (2) A person shall not be appointed under sub-paragraph (1) above unless he is eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006.

• (3) A person shall not be qualified for appointment under sub-paragraph (1) above if the person is—

• (a) a member, officer or servant of the trust,

• (b) a partner of, or employed by, a member, officer or servant of the trust, . . .

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Transmission to Secretary of State

12

As soon as the accounts and statement of accounts of the trust for any financial year have been audited, the trust shall send to the Secretary of State a copy of the statement, together with a copy of any report made by the auditor on the statement or on the accounts.

Reports

13

• (1) As soon as possible after the end of each financial year, a trust shall make to the Secretary of State a report dealing generally with the trust’s operations during the year, and shall include in the report a copy of its audited statement of accounts for that year.

• (2) Without prejudice to the generality of sub-paragraph (1) above, a report shall give particulars of the name and address of every person who, in the financial year to which the report relates, has received financial assistance from the trust under section 71(1) of this Act, together with particulars of the form of the assistance, the amount involved and the purpose for which the assistance was given.

• (3) The Secretary of State shall lay a copy of the report before each House of Parliament.

Information

14

Without prejudice to paragraph 13 above, a trust shall provide the Secretary of State with such information relating to its activities as he may require, and for that purpose shall permit any person authorised by the Secretary of State to inspect and make copies of the accounts, books, documents or papers of the trust and shall afford such explanation of them as that person or the Secretary of State may reasonably require.

SCHEDULE 9

Part I — Provisions Supplementing Section 76(1)—(3)

1

In this Part of this Schedule “the principal section” means section 76 of this Act.

2

• (1) In the principal section and paragraph 3 below, “statutory undertakers” and “statutory undertaking” shall be construed in accordance with paragraph 4 below.

• (2) In the principal section and the following provisions of this Part of this Schedule, “wholly-owned subsidiary” has the meaning given by section 1159 of the Companies Act 2006.

3

• (1) In subsection (3) of the principal section the reference to the Secretary of State and the appropriate Minister—

• (a) in relation to statutory undertakers who are also statutory undertakers for the purposes of any provision of Part XI of the Town and Country Planning Act 1990, shall be construed as if contained in that Part; and

• (b) in relation to any other statutory undertakers shall be construed in accordance with an order made by the Secretary of State.

• (2) If, for the purposes of subsection (3) of the principal section, any question arises as to which Minister is the appropriate Minister in relation to any statutory undertakers, that question shall be determined by the Treasury.

4

In the principal section and, except where the context otherwise requires, in paragraph 3 above “statutory undertakers” means—

• (a) persons authorised by any enactment to carry on any railway, light railway, tramway, road transport, water transport, canal, inland navigation, dock, harbour, pier or lighthouse undertaking, or any undertaking for the supply of electricity, hydraulic power or water;

• (b) ... the British Steel Corporation, the Civil Aviation Authority, . . ., . . ., . . . and any other authority, body or undertakers which, by virtue of any enactment, are to be treated as statutory undertakers for any of the purposes of the Town and Country Planning Act 1990, the Planning (Listed Buildings and Conservation Areas) Act 1990 or the Planning (Hazardous Substances) Act 1990;

• (c) any other authority, body or undertakers specified in an order made by the Secretary of State; and

• (d) any wholly-owned subsidiary of any person, authority, body or undertakers mentioned in sub-paragraphs (a) and (b) above or specified in an order made under sub-paragraph (c) above;

and “statutory undertaking” shall be construed accordingly.

5

An order under any provision of this Part of this Schedule shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Part II — Modifications of Enactments

Land Compensation Act 1961

6

The Land Compensation Act 1961 shall have effect in relation to orders under section 76 of this Act subject to the modifications in paragraphs 7 to 11 below.

7

References to the date of service of a notice to treat shall be treated as references to the date on which an order under section 76 of this Act comes into force.

8

Section 17(2) shall be treated as if for the words “the acquiring authority have served a notice to treat in respect of the interest or an agreement has been made for the sale of the interest to that authority” there were substituted the words “an order under section 76 of the Housing Act 1988 vesting the land in which the interest subsists in a housing action trust has come into force, or an agreement has been made for the sale of the interest to such a trust”.

9

In section 22—

• (a) subsection (2) shall be treated as if at the end of paragraph (c) there were added the words

or (cc) where an order has been made under section 76 of the Housing Act 1988 vesting the land in which the interest subsists in a housing action trust

; and

• (b) subsection (3) shall be treated as if, in paragraph (a), after the words “paragraph (b)” there were inserted “or paragraph (cc)”.

10

Any reference to a notice to treat in section 39(2) shall be treated as a reference to an order under section 76 of this Act.

11

In Schedule 2, paragraph 1(2) shall be treated as if at the end there were added the following paragraph—

(k) an acquisition by means of an order under section 76 of the Housing Act 1988 vesting land in a housing action trust.

Compulsory Purchase (Vesting Declarations) Act 1981

12

• (1) In Schedule 2 to the Compulsory Purchase (Vesting Declarations) Act 1981 (vesting of land in urban development corporation), in paragraph I after the word “declaration)” there shall be inserted “ or under section 76 of the Housing Act 1988 (subsection (5) of which contains similar provision) ”.

• (2) At the end of sub-paragraph (a) of paragraph 3 of that Schedule there shall be added “ or, as the case may be, the housing action trust ”.

SCHEDULE 10

Part I — Modifications of Acquisition of Land Act 1981

1

The Acquisition of Land Act 1981 (in this Part referred to as “the 1981 Act”) shall apply in relation to the compulsory acquisition of land under section 77 of this Act with the modifications made by this Part of this Schedule.

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

The reference in section 17(3) of the 1981 Act to statutory undertakers includes a reference to a housing action trust.

Part II — Land: Supplementary

Extinguishment of rights over land

4

• (1) Subject to this paragraph, on an order under section 76 of this Act coming into force or the completion by a housing action trust of a compulsory acquisition of land under Part III of this Act, all private rights of way and rights of laying down, erecting, continuing or maintaining any apparatus on, under or over the land shall be extinguished, and any such apparatus shall vest in the trust.

• (2) Sub-paragraph (1) above does not apply—

• (a) to any right vested in, or apparatus belonging to, statutory undertakers for the purpose of carrying on their undertaking; or

• (b) to any right conferred by or in accordance with the electronic communications code on the operator of an electronic communications code network system or to any electronic communications apparatus kept installed for the purposes of any such network .

• (3) In respect of any right or apparatus not falling within sub-paragraph (2) above, sub-paragraph (1) above shall have effect subject—

• (a) to any direction given by the Secretary of State before the coming into force of the order (or, as the case may be, by the trust before the completion of the acquisition) that sub-paragraph (1) above shall not apply to any right or apparatus specified in the direction, and

• (b) to any agreement which may be made (whether before or after the coming into force of the order or completion of the acquisition) between the Secretary of State (or trust) and the person in or to whom the right or apparatus in question is vested or belongs.

• (4) Any person who suffers loss by the extinguishment of a right or the vesting of any apparatus under this paragraph shall be entitled to compensation from the trust.

• (5) Any compensation payable under this paragraph shall be determined in accordance with the Land Compensation Act 1961.

...

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Consecrated land and burial grounds

6

• (1) Any consecrated land, whether including a building or not, which has been vested in or acquired by a housing action trust for the purposes of Part III of this Act may (subject to the following provisions of this paragraph) be used by the trust, or by any other person, in any manner in accordance with planning permission, notwithstanding any obligation or restriction imposed under ecclesiastical law or otherwise in respect of consecrated land.

• (2) Sub-paragraph (1) above does not apply to land which consists or forms part of a burial ground.

• (3) Any use of consecrated land authorised by sub-paragraph (1) above, and the use of any land, not being consecrated land, vested or acquired as mentioned in that sub-paragraph which at the time of acquisition included a church or other building used or formerly used for religious worship or the site thereof, shall be subject to compliance with the prescribed requirements with respect to the removal and reinterment of any human remains, and the disposal of monuments and fixtures and furnishings; and, in the case of consecrated land, shall be subject to such provisions as may be prescribed for prohibiting or restricting the use of the land, either absolutely or until the prescribed consent has been obtained, so long as any church or other building used or formerly used for religious worship, or any part thereof, remains on the land.

• (4) Any regulations made for the purposes of sub-paragraph (3) above—

• (a) shall contain such provisions as appear to the Secretary of State to be requisite for securing that any use of land which is subject to compliance with the regulations shall, as nearly as may be, be subject to the like control as is imposed by law in the case of a similar use authorised by an enactment not contained in this Act or by a Measure, or as it would be proper to impose on a disposal of the land in question otherwise than in pursuance of an enactment or Measure;

• (b) shall contain requirements relating to the disposal of any such land as is mentioned in sub-paragraph (3) above such as appear to the Secretary of State requisite for securing that the provisions of that sub-paragraph shall be complied with in relation to the use of the land; and

• (c) may contain such incidental and consequential provisions (including provision as to the closing of registers) as appear to the Secretary of State to be expedient for the purposes of the regulations.

• (5) Any land consisting of a burial ground or part of a burial ground which has been vested in or acquired by a housing action trust for the purposes of Part III of this Act may be used by the trust in any manner in accordance with planning permission, notwithstanding anything in any enactment relating to burial grounds or any obligation or restriction imposed under ecclesiastical law or otherwise in respect of burial grounds.

• (6) Sub-paragraph (5) above shall not have effect in respect of any land which has been used for the burial of the dead until the prescribed requirements with respect to the removal and reinterment of human remains and the disposal of monuments in or upon the land have been complied with.

• (7) Provision shall be made by any regulations made for the purposes ofsub-paragraphs (3) and (6) above—

• (a) for requiring the persons in whom the land is vested to publish notice of their intention to carry out the removal and reinterment of any human remains or the disposal of any monuments; and

• (b) for enabling the personal representatives or relatives of any deceased person themselves to undertake the removal and reinterment of the remains of the deceased and the disposal of any monument commemorating the deceased, and for requiring the persons in whom the land is vested to defray the expenses of such removal, reinterment and disposal, not exceeding such amount as may be prescribed; and

• (c) for requiring compliance with such reasonable conditions (if any) as may be imposed, in the case of consecrated land, by the bishop of the diocese, with respect to the manner of removal and the place and manner of reinterment of any human remains and the disposal of any monuments; and

• (d) for requiring compliance with any directions given in any case by the Secretary of State with respect to the removal and reinterment of any human remains.

• (8) Subject to the provisions of any such regulations as are referred to in sub-paragraph (7) above, no faculty shall be required for the removal and reinterment in accordance with the regulations of any human remains or for the removal or disposal of any monuments, and the provisions of section 25 of the Burial Act 1857 (which prohibits the removal of human remains without the licence of the Secretary of State except in certain cases) shall not apply to a removal carried out in accordance with the regulations.

• (9) Any power conferred by this paragraph to use land in a manner therein mentioned shall be construed as a power so to use the land, whether it involves the erection, construction or carrying out of any building or work, or the maintenance of any building or work, or not.

• (10) Nothing in this paragraph shall be construed as authorising any act or omission on the part of any person which is actionable at the suit of any person on any grounds other than contravention of any such obligation, restriction or enactment as is mentioned in sub-paragraph (1) or sub-paragraph (5) above.

• (11) Nothing in this paragraph shall be construed as authorising any act or omission on the part of a housing action trust, or of any body corporate, in contravention of any limitation imposed by law on its capacity by virtue of the constitution of the trust or body.

• (12) In this paragraph “burial ground” includes any churchyard, cemetery or other ground, whether consecrated or not, which has at any time been set apart for the purposes of interment, and “monument” includes a tombstone or other memorial.

• (13) In this paragraph “prescribed” means prescribed by regulations made by the Secretary of State.

• (14) The power to make regulations under this paragraph shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Open spaces

7

• (1) Any land being, or forming part of, a common, open space or fuel or field garden allotment, which has been vested in or acquired by a housing action trust for the purposes of Part III of this Act may be used by the trust, or by any other person, in any manner in accordance with planning permission, notwithstanding anything in any enactment relating to land of that kind, or in any enactment by which the land is specially regulated.

• (2) Nothing in this paragraph shall be construed as authorising any act or omission on the part of any person which is actionable at the suit of any person on any grounds other than contravention of any such enactment as is mentioned in sub-paragraph (1) above.

• (3) Nothing in this paragraph shall be construed as authorising any act or omission on the part of a housing action trust, or of any body corporate, in contravention of any limitation imposed by law on its capacity by virtue of the constitution of the trust or body.

Displacement of persons

8

If the Secretary of State certifies that possession of a house which has been vested in or acquired by a housing action trust for the purposes of Part III of this Act and is for the time being held by that trust for the purposes for which it was acquired, is immediately required for those purposes, nothing in the Rent (Agriculture) Act 1976 or the Rent Act 1977 or this Act shall prevent that trust from obtaining possession of the house.

Extinguishment of public rights of way

9

• (1) Where any land has been vested in or acquired by a housing action trust for the purposes of Part III of this Act and is for the time being held by that trust for those purposes, the Secretary of State may by order extinguish any public right of way over the land.

• (2) Where the Secretary of State proposes to make an order under this paragraph, he shall publish in such manner as appears to him to be requisite a notice—

• (a) stating the effect of the order, and

• (b) specifying the time (not being less than 28 days from the publication of the notice) within which, and the manner in which, objections to the proposal may be made,

and shall serve a like notice—

• (i) on the local planning authority in whose area the land is situated; and

• (ii) on the relevant highway authority.

• (3) In sub-paragraph (2) above “the relevant highway authority” means any authority which is a highway authority in relation to the right of way proposed to be extinguished by the order under this paragraph.

• (4) Where an objection to a proposal to make an order under this paragraph is duly made and is not withdrawn, the provisions of paragraph 10 below shall have effect in relation to the proposal.

• (5) For the purposes of this paragraph an objection to such a proposal shall not be treated as duly made unless—

• (a) it is made within the time and in the manner specified in the notice required by this paragraph; and

• (b) a statement in writing of the grounds of the objection is comprised in or submitted with the objection.

• (6) Where it is proposed to make an order under this paragraph extinguishing a public right of way over a road on land acquired for the purposes of this Act by a housing action trust and compensation in respect of restrictions imposed under section 1 or section 2 of the Restriction of Ribbon Development Act 1935 in respect of that road has been paid by the highway authority (or, in the case of a trunk road, by the authority which, when the compensation was paid, was the authority for the purposes of section 4 of the Trunk Roads Act 1936), the order may provide for the payment by the housing action trust to that authority, in respect of the compensation so paid, of such sums as the Secretary of State, with the consent of the Treasury, may determine.

• (7) Where the Secretary of State makes an order under this paragraph on the application of a housing action trust, he shall send a copy of it to the universal service provider (within the meaning of Part 3 of the Postal Services Act 2011) who provides a universal postal service (within the meaning of that Part) for the area in which the land is situated.

10

• (1) In this paragraph any reference to making a final decision, in relation to an order, is a reference to deciding whether to make the order or what modification, if any, ought to be made.

• (2) Unless the Secretary of State decides apart from the objection not to make the order, or decides to make a modification which is agreed to by the objector as meeting the objection, the Secretary of State shall, before making a final decision, consider the grounds of the objection as set out in the statement comprised in or submitted with the objection, and may, if he thinks fit, require the objector to submit within a specified period a further statement in writing as to any of the matters to which the objection relates.

• (3) In so far as the Secretary of State, after considering the grounds of the objection as set out in the original statement and in any such further statement, is satisfied that the objection relates to a matter which can be dealt with in the assessment of compensation, the Secretary of State may treat the objection as irrelevant for the purpose of making a final decision.

• (4) If, after considering the grounds of the objection as set out in the original statement and in any such further statement, the Secretary of State is satisfied that, for the purpose of making a final decision, he is sufficiently informed as to the matters to which the objection relates, or if, where a further statement has been required, it is not submitted within the specified period, the Secretary of State may make a final decision without further investigation as to those matters.

• (5) Subject to sub-paragraphs (3) and (4) above, the Secretary of State, before making a final decision, shall afford to the objector an opportunity of appearing before, and being heard by, a person appointed for the purpose by the Secretary of State; and if the objector avails himself of that opportunity, the Secretary of State shall afford an opportunity of appearing and being heard on the same occasion to the housing action trust on whose representation the order is proposed to be made, and to any other persons to whom it appears to the Secretary of State to be expedient to afford such an opportunity.

• (6) Notwithstanding anything in the preceding provisions of this paragraph, if it appears to the Secretary of State that the matters to which the objection relates are such as to require investigation by public local inquiry before he makes a final decision, he shall cause such an inquiry to be held; and where he determines to cause such an inquiry to be held, any of the requirements of those provisions to which effect has not been given at the time of that determination shall be dispensed with.

Telegraphic lines

11

• (1) Where an order under paragraph 9 above extinguishing a public right of way is made on the application of a housing action trust and at the time of the publication of the notice required by sub-paragraph (2) of that paragraph any electronic communications apparatus was kept installed for the purposes of an electronic communications code network under, in, on, over, along or across the land over which the right of way subsisted—

• (a) the power of the operator of the network to remove the apparatus shall, notwithstanding the making of the order, be exercisable at any time not later than the end of the period of three months from the date on which the right of way is extinguished and shall be exercisable in respect of the whole or any part of the apparatus after the end of that period if before the end of that period the operator of the network has given notice to the trust of his intention to remove the apparatus or that part of it, as the case may be;

• (b) the operator of the network may by notice given in that behalf to the trust not later than the end of the said period of three months abandon the electronic communications apparatus or any part of it;

• (c) subject to paragraph (b) above, the operator of the network shall be deemed at the end of that period to have abandoned any part of the apparatus which he has then neither removed nor given notice of his intention to remove;

• (d) the operator of the network shall be entitled to recover from the trust the expense of providing, in substitution for the apparatus and any other electronic communications apparatus connected with it which is rendered useless in consequence of the removal or abandonment of the first-mentioned apparatus, any telecommunication apparatus in such other place as the operator may require; and

• (e) where under the preceding provisions of this sub-paragraph the operator of the network has abandoned the whole or any part of any electronic communications apparatus , that apparatus or that part of it shall vest in the trust and shall be deemed, with its abandonment, to cease to be kept installed for the purposes of an electronic communications code network

• (2) As soon as practicable after the making of an order under paragraph 9 above extinguishing a public right of way in circumstances in which sub-paragraph (1) above applies in relation to the operator of an electronic communications code network , the Secretary of State shall give notice to the operator of the making of the order.

Statutory undertakers

12

• (1) Where any land has been acquired by a housing action trust under section 77 of this Act and—

• (a) there subsists over that land a right vested in or belonging to statutory undertakers for the purpose of the carrying on of their undertaking, being a right of way or a right of laying down, erecting, continuing or maintaining apparatus on, under or over that land, or

• (b) there is on, under or over the land apparatus vested in or belonging to statutory undertakers for the purpose of the carrying on of their undertaking,

the trust, if satisfied that the extinguishment of the right or, as the case may be, the removal of the apparatus, is necessary for the purpose of carrying out any development, may serve on the statutory undertakers a notice stating that, at the end of the period of 28 days from the date of service of the notice or such longer period as may be specified therein, the right will be extinguished or requiring that, before the end of that period, the apparatus shall be removed.

• (2) The statutory undertakers on whom a notice is served under sub-paragraph (1) above may, before the end of the period of 28 days from the service of the notice, serve a counter-notice on the trust stating that they object to all or any provisions of the notice and specifying the grounds of their objection.

• (3) If no counter-notice is served under sub-paragraph (2) above—

• (a) any right to which the notice relates shall be extinguished at the end of the period specified in that behalf in the notice; and

• (b) if, at the end of the period so specified in relation to any apparatus, any requirement of the notice as to the removal of the apparatus has not been complied with, the trust may remove the apparatus and dispose of it in any way it may think fit.

• (4) If a counter-notice is served under sub-paragraph (2) above on a trust, the trust may either withdraw the notice (without prejudice to the service of a further notice) or may apply to the Secretary of State and the appropriate Minister for an order under this paragraph embodying the provisions of the notice with or without modification.

• (5) Where by virtue of this paragraph any right vested in or belonging to statutory undertakers is extinguished, or any requirement is imposed on statutory undertakers, those undertakers shall be entitled to compensation from the trust.

• (6) Sections 280 and 282 of the Town and Country Planning Act 1990 (measure of compensation to statutory undertakers) shall apply to compensation under sub-paragraph (5) above as they apply to compensation under section 279(2) of that Act.

• (7) Except in a case in which paragraph 11 above has effect—

• (a) the reference in paragraph (a) of sub-paragraph (1) above to a right vested in or belonging to statutory undertakers for the purpose of the carrying on of their undertaking shall include a reference to a right conferred by or in accordance with the electronic communications code on the operator of an electronic communications code network ; and

• (b) the reference in paragraph (b) of that sub-paragraph to apparatus vested in or belonging to statutory undertakers for the purpose of the carrying on of their undertaking shall include a reference to electronic communications apparatus kept installed for the purposes of any such network .

• (8) Where paragraph (a) or paragraph (b) of sub-paragraph (1) above has effect as mentioned in sub-paragraph (7) above, in the rest of this paragraph and in paragraph 13 below,—

• (a) any reference to statutory undertakers shall have effect as a reference to the operator of any such network as is referred to in sub-paragraph (7) above; and

• (b) any reference to the appropriate Minister shall have effect as a reference to the Secretary of State for Trade and Industry.

13

• (1) Before making an order under paragraph 12(4) above the Ministers proposing to make the order—

• (a) shall afford to the statutory undertakers on whom notice was served under paragraph 12(1) above an opportunity of objecting to the application for the order; and

• (b) if any objection is made, shall consider the objection and afford to those statutory undertakers and to the trust on whom the counter-notice was served, an opportunity of appearing before and being heard by a person appointed by the Secretary of State and the appropriate Minister for the purpose;

and the Ministers may then, if they think fit, make the order in accordance with the application either with or without modification.

• (2) Where an order is made under paragraph 12(4) above—

• (a) any right to which the order relates shall be extinguished at the end of the period specified in that behalf in the order; and

• (b) if, at the end of the period so specified in relation to any apparatus, any requirement of the order as to the removal of the apparatus has not been complied with, the trust may remove the apparatus and dispose of it in any way it may think fit.

14

• (1) Subject to this paragraph, where any land has been acquired by a housing action trust under section 77 of this Act and—

• (a) there is on, under or over the land apparatus vested in or belonging to statutory undertakers, and

• (b) the undertakers claim that development to be carried out on the land is such as to require, on technical or other grounds connected with the carrying on of their undertaking, the removal or re-siting of the apparatus affected by the development,

the undertakers may serve on the trust a notice claiming the right to enter on the land and carry out such works for the removal or re-siting of the apparatus or any part of it as may be specified in the notice.

• (2) Where, after the land has been acquired as mentioned in sub-paragraph (1) above, development of the land is begun to be carried out, no notice under this paragraph shall be served later than 21 days after the beginning of the development.

• (3) Where a notice is served under this paragraph the trust on which it is served may, before the end of the period of 28 days from the date of service, serve on the statutory undertakers a counter-notice stating that it objects to all or any of the provisions of the notice and specifying the grounds of its objection.

• (4) If no counter-notice is served under sub-paragraph (3) above, the statutory undertakers shall, after the end of the said period of 28 days, have the rights claimed in their notice.

• (5) If a counter-notice is served under sub-paragraph (3) above, the statutory undertakers who served the notice under this paragraph may either withdraw it or may apply to the Secretary of State and the appropriate Minister for an order under this paragraph conferring on the undertakers the rights claimed in the notice or such modified rights as the Secretary of State and the appropriate Minister think it expedient to confer on them.

• (6) Where by virtue of this paragraph or an order of Ministers made under it, statutory undertakers have the right to execute works for the removal or re-siting of apparatus, they may arrange with the trust for the works to be carried out by the trust, under the superintendence of the undertakers, instead of by the undertakers themselves.

• (7) Where works are carried out for the removal or re-siting of statutory undertakers’ apparatus, being works which the undertakers have the right to carry out by virtue of this paragraph or an order of Ministers made under it, the undertakers shall be entitled to compensation from the trust.

• (8) Sections 280 and 282 of the Town and Country Planning Act 1990 (measure of compensation to statutory undertakers) shall apply to compensation under sub-paragraph (7) above as they apply to compensation under section 279(4) of that Act.

• (9) In sub-paragraph (1)(a) above, the reference to apparatus vested in or belonging to statutory undertakers shall include a reference to electronic communications apparatus kept installed for the purposes of an electronic communications code network .

• (10) Where sub-paragraph (1)(a) above has effect as mentioned in sub-paragraph (9) above, in the rest of this paragraph—

• (a) any reference to statutory undertakers shall have effect as a reference to the operator of any such network as is referred to in sub-paragraph (9) above; and

• (b) any reference to the appropriate Minister shall have effect as a reference to the Secretary of State for Trade and Industry.

15

• (1) The powers conferred by this paragraph shall be exercisable where, on a representation made by statutory undertakers, it appears to the Secretary of State and the appropriate Minister to be expedient that the powers and duties of those undertakers should be extended or modified, in order—

• (a) to secure the provision for a designated area of services which would not otherwise be provided, or which would not otherwise be satisfactorily provided; or

• (b) to facilitate an adjustment of the carrying on of the undertaking necessitated by any of the acts and events mentioned in sub-paragraph (2) below.

• (2) The said acts and events are—

• (a) the acquisition under Part III of this Act of any land in which an interest was held, or which was used, for the purpose of the carrying on of the undertaking of the statutory undertakers in question; and

• (b) the extinguishment of a right or the imposition of any requirements by virtue of paragraph 12 above.

• (3) The powers conferred by this paragraph shall also be exercisable where, on a representation made by a housing action trust, it appears to the Secretary of State and the appropriate Minister to be expedient that the powers and duties of statutory undertakers should be extended or modified, in order to secure the provision of new services, or the extension of existing services, for the purposes of a designated area under Part III of this Act.

• (4) Where the powers conferred by this paragraph are exercisable, the Secretary of State and the appropriate Minister may, if they think fit, by order provide for such extension or modification of the powers and duties of the statutory undertakers as appears to them to be requisite in order to secure the provision of the services in question, as mentioned in sub-paragraph (1)(a) or sub-paragraph (3) above, or to secure the adjustment in question, as mentioned in sub-paragraph (1)(b) above, as the case may be.

• (5) Without prejudice to the generality of sub-paragraph (4) above, an order under this paragraph may make provision—

• (a) for empowering the statutory undertakers to acquire (whether compulsorily or by agreement) any land specified in the order, and to erect or construct any buildings or works so specified;

• (b) for applying, in relation to the acquisition of any such land or the construction of any such works, enactments relating to the acquisition of land and the construction of works;

• (c) where it has been represented that the making of the order is expedient for the purposes mentioned in sub-paragraph (1)(a) or sub-paragraph (3) above, for giving effect to such financial arrangements between the housing action trust and the statutory undertakers as they may agree, or as, in default of agreement, may be determined to be equitable in such manner and by such tribunal as may be specified in the order; and

• (d) for such incidental and supplemental matters as appear to the Secretary of State and the appropriate Minister to be expedient for the purposes of the order.

16

• (1) As soon as may be after making such a representation as is mentioned in sub-paragraph (1) or sub-paragraph (3) of paragraph 15 above—

• (a) the statutory undertakers, in a case falling within sub-paragraph (1), or

• (b) the housing action trust, in a case falling within sub-paragraph (3),

shall publish, in such form and manner as may be directed by the Secretary of State and the appropriate Minister, a notice giving such particulars as may be so directed of the matters to which representation relates, and specifying the time within which, and the manner in which, objections to the making of an order on the representation may be made, and shall also, if it is so directed by the Secretary of State and the appropriate Minister, serve a like notice on such persons, or persons of such classes, as may be so directed.

• (2) Orders under paragraph 15 above shall be subject to special parliamentary procedure.

17

• (1) Where, on a representation made by statutory undertakers, the appropriate Minister is satisfied that the fulfilment of any obligations incurred by those undertakers in connection with the carrying on of their undertaking has been rendered impracticable by an act or event to which this sub-paragraph applies, the appropriate Minister may, if he thinks fit, by order direct that the statutory undertakers shall be relieved of the fulfilment of that obligation, either absolutely or to such extent as may be specified in the order.

• (2) Sub-paragraph (1) above applies to the following acts and events—

• (a) the compulsory acquisition under this Part of this Act of any land in which an interest was held, or which was used, for the purpose of the carrying on of the undertaking of the statutory undertakers; and

• (b) the extinguishment of a right or the imposition of any requirement by virtue of paragraph 12 above.

• (3) As soon as may be after making a representation to the appropriate Minister under sub-paragraph (1) above, the appropriate statutory undertakers shall, as may be directed by the appropriate Minister, either publish (in such form and manner as may be so directed) a notice giving such particulars as may be so directed of the matters to which the representation relates, and specifying the time within which, and the manner in which, objections to the making of an order on the representation may be made, or serve such a notice on such persons, or persons of such classes, as may be so directed, or both publish and serve such notices.

• (4) If any objection to the making of an order under this paragraph is duly made and is not withdrawn before the order is made, the order shall be subject to special parliamentary procedure.

• (5) Immediately after an order is made under this paragraph by the appropriate Minister, he shall publish a notice stating that the order has been made and naming a place where a copy of it may be seen at all reasonable hours, and shall serve a like notice—

• (a) on any person who duly made an objection to the order and has sent to the appropriate Minister a request in writing to serve him with the notice required by this sub-paragraph, specifying an address for service; and

• (b) on such other persons (if any) as the appropriate Minister thinks fit.

• (6) Subject to the following provisions of this paragraph, an order under this paragraph shall become operative on the date on which the notice required by sub-paragraph (5) above is first published.

• (7) Where in accordance with sub-paragraph (4) above the order is subject to special parliamentary procedure, sub-paragraph (6) above shall not apply.

• (8) If any person aggrieved by an order under this paragraph wishes to question the validity of the order on the ground that it is not within the powers conferred by this paragraph, or that any requirement of this paragraph has not been complied with in relation to the order, he may, within six weeks from the date on which the notice required by sub-paragraph (5) above is first published, make an application to the High Court under this paragraph.

• (9) On any application under sub-paragraph (8) above the High Court—

• (a) may by interim order wholly or in part suspend the operation of the order, either generally or in so far as it affects any property of the applicant, until the final determination of the proceedings; and

• (b) if satisfied that the order is wholly or to any extent outside the powers conferred by this paragraph, or that the interests of the applicant have been substantially prejudiced by the failure to comply with any requirement of this paragraph, may wholly or in part quash the order, either generally or in so far as it affects any property of the applicant.

• (10) Subject to sub-paragraph (8) above, the validity of an order under this paragraph shall not be questioned in any legal proceedings whatsoever, either before or after the order has been made.

18

• (1) For the purposes of paragraphs 15 and 17 above, an objection to the making of an order thereunder shall not be treated as duly made unless—

• (a) the objection is made within the time and in the manner specified in the notice required by paragraph 16 or (as the case may be) paragraph 17 above; and

• (b) a statement in writing of the grounds of the objection is comprised in or submitted with the objection.

• (2) Where an objection to the making of such an order is duly made in accordance with sub-paragraph (1) above and is not withdrawn, the following provisions of this paragraph shall have effect in relation thereto; but, in the application of those provisions to an order under paragraph 15 above, any reference to the appropriate Minister shall be construed as a reference to the Secretary of State and the appropriate Minister.

• (3) Unless the appropriate Minister decides apart from the objection not to make the order, or decides to make a modification which is agreed to by the objector as meeting the objection, the appropriate Minister, before making a final decision, shall consider the grounds of the objection as set out in the statement, and may, if he thinks fit, require the objector to submit within a specified period a further statement in writing as to any of the matters to which the objection relates.

• (4) In so far as the appropriate Minister after considering the grounds of the objection as set out in the original statement and in any such further statement, is satisfied that the objection relates to a matter which can be dealt with in the assessment of compensation, the appropriate Minister may treat the objection as irrelevant for the purpose of making a final decision.

• (5) If, after considering the grounds of the objection as set out in the original statement and in any such further statement, the appropriate Minister is satisfied that, for the purpose of making a final decision, he is sufficiently informed as to the matters to which the objection relates, or if, where a further statement has been required it is not submitted within the specified period, the appropriate Minister may make a final decision without further investigation as to those matters.

• (6) Subject to sub-paragraphs (4) and (5) above, the appropriate Minister, before making a final decision, shall afford to the objector an opportunity of appearing before, and being heard by, a person appointed for the purpose by the appropriate Minister; and if the objector avails himself of that opportunity, the appropriate Minister shall afford an opportunity of appearing and being heard on the same occasion to the statutory undertakers, local authority or Minister on whose representation the order is proposed to be made, and to any other persons to whom it appears to the appropriate Minister to be expedient to afford such an opportunity.

• (7) Notwithstanding anything in the preceding provisions of this paragraph, if it appears to the appropriate Minister that the matters to which the objection relates are such as to require investigation by public local inquiry before he makes a final decision, he shall cause such an inquiry to be held; and where he determines to cause such an inquiry to be held, any of the requirements of those provisions to which effect has not been given at the time of that determination shall be dispensed with.

• (8) In this paragraph any reference to making a final decision, in relation to an order, is a reference to deciding whether to make the order or what modification (if any) ought to be made.

Interpretation

19

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III — Acquisition of Rights

20

• (1) The Compulsory Purchase Act 1965 (in this Part of the Schedule referred to as “the 1965 Act”) shall have effect with the modifications necessary to make it apply to the compulsory purchase of rights by virtue of section 77(5) of this Act as it applies to the compulsory purchase of land so that, in appropriate contexts, references in the 1965 Act to land are read as referring, or as including references, to the rights or to land over which the rights are or are to be exercisable, according to the requirements of the particular context.

• (2) Without prejudice to the generality of sub-paragraph (1) above, in relation to the purchase of rights in pursuance of section 77(5) of this Act—

• (a) Part I of the 1965 Act (which relates to compulsory purchases under the Acquisition of Land Act 1981) shall have effect with the modifications specified in paragraphs 21 to 23 below; and

• (b) the enactments relating to compensation for the compulsory purchase of land shall apply with the necessary modifications as they apply to such compensation.

21

• (1) For section 7 of the 1965 Act (which relates to compensation) there shall be substituted the following—

(7) (1) In assesssing the compensation to be paid by the acquiring authority under this Act regard shall be had not only to the extent, if any, to which the value of the land over which the right is purchased is depreciated by the purchase but also to the damage, if any, to be sustained by the owner of the land by reason of injurious affection of other land of the owner by the exercise of the right. (2) The modifications subject to which subsection (1) of section 44 of the Land Compensation Act 1973 is to have effect, as applied by subsection (2) of that section to compensation for injurious affection under this section, are that for the words “land is acquired or taken” there shall be substituted the words “a right over land is purchased” and for the words “acquired or taken from him” there shall be substituted the words “over which the right is exercisable”.

22

Section 8(1) of the Compulsory Purchase Act 1965 has effect as if references to acquiring land were to acquiring a right in the land, and Schedule 2A to that Act is to be read as if, for that Schedule, there were substituted—

SCHEDULE 2A (1) (1) This Schedule applies where an acquiring authority serve a notice to treat in respect of a right over the whole or part of a house, building or factory. (2) But see section 2A of the Acquisition of Land Act 1981 (under which a compulsory purchase order can exclude from this Schedule land that is 9 metres or more below the surface). (2) In this Schedule “house” includes any park or garden belonging to a house. (3) A person who is able to sell the house, building or factory (“the owner”) may serve a counter-notice requiring the authority to purchase the owner's interest in the house, building or factory. (4) A counter-notice under paragraph 3 must be served within the period of 28 days beginning with the day on which the notice to treat was served. (5) On receiving a counter-notice the acquiring authority must decide whether to— (a) withdraw the notice to treat, (b) accept the counter-notice, or (c) refer the counter-notice to the Upper Tribunal. (6) The authority must serve notice of their decision on the owner within the period of 3 months beginning with the day on which the counter-notice is served (“the decision period”). (7) If the authority decide to refer the counter-notice to the Upper Tribunal they must do so within the decision period. (8) If the authority do not serve notice of a decision within the decision period they are to be treated as if they had served notice of a decision to withdraw the notice to treat at the end of that period. (9) If the authority serve notice of a decision to accept the counter-notice, the compulsory purchase order and the notice to treat are to have effect as if they included the owner's interest in the house, building or factory. (10) On a referral under paragraph 7 the Upper Tribunal must determine whether the acquisition of the right would— (a) in the case of a house, building or factory, cause material detriment to the house, building or factory, or (b) in the case of a park or garden, seriously affect the amenity or convenience of the house to which the park or garden belongs. (11) In making its determination, the Upper Tribunal must take into account— (a) the effect of the acquisition of the right, (b) the proposed use of the right, and (c) if the right is proposed to be acquired for works or other purposes extending to other land, the effect of the whole of the works and the use of the other land. (12) If the Upper Tribunal determines that the acquisition of the right would have either of the consequences described in paragraph 10 it must determine how much of the house, building or factory the authority ought to be required to take. (13) If the Upper Tribunal determines that the authority ought to be required to take some or all of the house, building or factory the compulsory purchase order and the notice to treat are to have effect as if they included the owner's interest in that land. (14) (1) If the Upper Tribunal determines that the authority ought to be required to take some or all of the house, building or factory, the authority may at any time within the period of 6 weeks beginning with the day on which the Upper Tribunal makes its determination withdraw the notice to treat in relation to that land. (2) If the acquiring authority withdraws the notice to treat under this paragraph they must pay the person on whom the notice was served compensation for any loss or expense caused by the giving and withdrawal of the notice. (3) Any dispute as to the compensation is to be determined by the Upper Tribunal.

23

• (1) The following provisions of the 1965 Act (which state the effect of a deed poll executed in various circumstances where there is no conveyance by persons with interests in the land), namely—

• section 9(4) (failure of owners to convey),

• paragraph 10(3) of Schedule 1 (owners under incapacity),

• paragraph 2(3) of Schedule 2 (absent and untraced owners), and

• paragraphs 2(3) and 7(2) of Schedule 4 (common land),

shall be so modified as to secure that, as against persons with interests in the land which are expressed to be overridden by the deed, the right which is to be purchased compulsorily is vested absolutely in the acquiring authority.

• (2) Section 11 of the 1965 Act (powers of entry) shall be so modified as to secure that, as from the date on which the acquiring authority has served notice to treat in respect of any right, it has power, exercisable in the like circumstances and subject to the like conditions, to enter for the purpose of exercising that right (which shall be deemed for this purpose to have been created on the date of service of the notice); and sections 12 (penalty for unauthorised entry) and 13 (entry on enforcement officer's or sheriff's warrant in the event of obstruction) of the Act shall be modified correspondingly.

• (3) Section 20 of the 1965 Act (compensation for short-term tenants) shall apply with the modifications necessary to secure that persons with such interests as are mentioned in that section are compensated in a manner corresponding to that in which they would be compensated on a compulsory acquisition of the interests but taking into account only the extent (if any) of such interference with such interests as is actually caused, or likely to be caused, by the exercise of the right in question.

• (4) Section 22 of the 1965 Act (protection of acquiring authority’s possession of land where by inadvertence an interest in the land has not been purchased) shall be so modified as to enable the acquiring authority, in circumstances corresponding to those referred to in that section, to continue to be entitled to exercise the right in question, subject to compliance with that section as respects compensation.

SCHEDULE 11

Repayment of discount on early disposal

1

• (1) This paragraph applies where, on the disposal of a house under section 79 of this Act, a discount is given to the purchaser by the housing action trust in accordance with a consent given by the Secretary of State under subsection (1) of that section and that consent does not exclude the application of this paragraph.

• (2) On the disposal, the conveyance, grant or assignment shall contain a covenant binding on the purchaser and his successors in title to the following effect.

• (3) The covenant shall be to pay to the housing action trust such sum (if any) as the trust may demand in accordance with sub-paragraph (4) on the occasion of the first relevant disposal (other than an exempted disposal) which takes place within the period of five years beginning with the conveyance, grant or assignment.

• (4) The trust may demand such sum as it considers appropriate, up to and including the maximum amount specified in this paragraph.

• (5) The maximum amount which may be demanded by the trust is a percentage of the price or premium paid for the first relevant disposal which is equal to the percentage discount given to the purchaser in respect of the disposal of the house under section 79.

• (6) But for each complete year which has elapsed after the conveyance, grant or assignment and before the first relevant disposal the maximum amount which may be demanded by the trust is reduced by one-fifth.

• (7) Sub-paragraphs (4) to (6) are subject to paragraph 1A.

Obligation to repay a charge on the house

2

• (1) The liability that may arise under the covenant required by paragraph 1 above is a charge on the house, taking effect as if it had been created by deed expressed to be by way of legal mortgage.

• (2) The charge has priority immediately after any legal charge securing an amount—

• (a) left outstanding by the purchaser; or

• (b) advanced to him by an approved lending institution for the purpose of enabling him to acquire the interest disposed of on the first disposal; or

• (c) further advanced to him by that institution;

but the housing action trust may at any time by written notice served on an approved lending institution postpone the charge taking effect by virtue of this paragraph to a legal charge securing an amount advanced or further advanced to the purchaser by that institution.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) The covenant required by paragraph 1 above does not, by virtue of its binding successors in title of the purchaser, bind a person exercising rights under a charge having priority over the charge taking effect by virtue of this paragraph, or a person deriving title under him; and a provision of the conveyance, grant or assignment, or of a collateral agreement, is void in so far as it purports to authorise a forfeiture, or to impose a penalty or disability, in the event of any such person failing to comply with the covenant.

• (5) The approved lending institutions for the purposes of this paragraph are—

• (a) a building society;

• (b) a bank;

• (c) an insurance company;

• (d) a friendly society; and

• (e) an authorised mortgage lender (within the meaning of the Housing Act 1985 (see section 622 of that Act)).

Relevant disposals

3

• (1) A disposal, whether of the whole or part of the house, is a relevant disposal for the purpose of this Schedule if it is—

• (a) a conveyance of the freehold or an assignment of the lease; or

• (b) the grant of a lease or sub-lease (other than a mortgage term) for a term of more than 21 years otherwise than at a rack rent.

• (2) For the purposes of sub-paragraph (1)(b) above it shall be assumed—

• (a) that any option to renew or extend a lease or sub-lease, whether or not forming part of a series of options, is exercised; and

• (b) that any option to terminate a lease or sub-lease is not exercised.

Exempted disposals

4

• (1) A disposal is an exempted disposal for the purposes of this Schedule if—

• (a) it is a disposal of the whole of the house and a conveyance of the freehold or an assignment of the lease and the person or each of the persons to whom it is made is a qualifying person (as defined in sub-paragraph (2) below);

• (b) it is a vesting of the whole of the house in a person taking under a will or on an intestacy;

• (c) it is a disposal of the whole of the house in pursuance of an such order as is mentioned in sub-paragraph (4) below;

• (d) it is a compulsory disposal; or

• (e) the property disposed of is property included with the house as being such a yard, garden, outhouse or appurtenance as is referred to in section 92(1)(b) of this Act.

• (2) For the purposes of sub-paragraph (1)(a) above, a person is a qualifying person in relation to a disposal if—

• (a) he is the person or one of the persons by whom the disposal is made;

• (b) he is the spouse or a former spouse , or the civil partner or a former civil partner, of that person or one of those persons; or

• (c) he is a member of the family of that person or one of those persons and has resided with him throughout the period of twelve months ending with the disposal.