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(1) Subject to section 61 below, the Secretary of State may by order designate an area of land for which, in his opinion, it is expedient that a corporation, to be known as a housing action trust, having the functions specified in this Part of this Act, should be established.
(2) The area designated by an order under this section may comprise two or more parcels of land which—
(a) need not be contiguous; and
(b) need not be in the district of the same local housing authority.
(3) An order under this section shall be made by statutory instrument but no such order shall be made unless a draft of it has been laid before, and approved by a resolution of, each House of Parliament.
(4) In deciding whether to make an order under this section designating any area of land, the Secretary of State shall have regard to such matters as he thinks fit.
(5) Without prejudice to the generality of subsection (4) above, among the matters to which the Secretary of State may have regard in deciding whether to include a particular area of land in an order under this section, are—
(a) the extent to which the housing accommodation in the area as a whole is occupied by tenants or owner-occupiers and the extent to which it is local authority housing;
(b) the physical state and design of the housing accommodation in the area and any need to repair or improve it;
(c) the way in which the local authority housing in the area is being managed; and
(d) the living conditions of those who live in the area and the social conditions and general environment of the area.
(6) An area designated by an order under this section shall be known as a housing action trust area and in the following provisions of this Part of this Act—
(a) such an area is referred to as a “designated area”; and
(b) an order under this section is referred to as a “designation order”.
(1) Before making a designation order, the Secretary of State shall consult every local housing authority any part of whose district is to be included in the proposed designated area.
(2) Where the Secretary of State is considering a proposal to make a designation order, he shall use his best endeavours to secure that notice of the proposal is given to all tenants of houses in the area proposed to be designated who are either secure tenants or tenants of such description as may be prescribed by regulations.
(3) After having taken the action required by subsection (2) above, the Secretary of State shall either—
(a) make arrangements for such independent persons as appear to him to be appropriate to conduct, in such manner as seems best to them, a ballot or poll of the tenants who have been given notice of the proposal as mentioned in that subsection with a view to establishing their opinions about the proposal to make a designation order; or
(b) if it seems appropriate to him to do so, arrange for the conduct of a ballot or poll of those tenants in such manner as appears to him best suited to establish their opinions about the proposal.
(4) If it appears from a ballot or poll conducted as mentioned in subsection (3) above that a majority of the tenants who, on that ballot or poll, express an opinion about the proposal to make the designation order are opposed to it, the Secretary of State shall not make the order proposed.
(5) The power to make regulations under subsection (2) above shall be exercisable by the Secretary of State by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(6) Consultation undertaken before the passing of this Act shall constitute as effective compliance with subsection (1) above as if undertaken after that passing.
(1) Subject to subsection (2) below, where the Secretary of State makes a designation order, he shall, in that order or by a separate order, either—
(a) establish a housing action trust for the designated area; or
(b) specify as the housing action trust for the designated area a housing action trust already established for another designated area.
(2) Such a separate order as is referred to in subsection (1) above shall be made by statutory instrument but no such order shall be made unless a draft of it has been laid before, and approved by a resolution of, each House of Parliament.
(3) Subject to subsection (4) below, a housing action trust shall be a body corporate by such name as may be prescribed by the order establishing it.
(4) Where the Secretary of State makes the provision referred to in subsection (1)(b) above,—
(a) the housing action trust specified in the order shall, by virtue of the order, be treated as established for the new designated area (as well as for any designated area for which it is already established); and
(b) the order may alter the name of the trust to take account of the addition of the new designated area.
(5) Schedule 7 to this Act shall have effect with respect to the constitution of housing action trusts and Schedule 8 to this Act shall have effect with respect to their finances.
(6) It is hereby declared that a housing action trust is not to be regarded as the servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown and that the trust’s property is not to be regarded as the property of, or property held on behalf of, the Crown.
(7) At the end of section 4 of the [1985 c. 68.] Housing Act 1985 (descriptions of authority) there shall be added—
“(f) “housing action trust” means a housing action trust established under Part III of the Housing Act 1988”; and at the end of section 14 of the [1977 c. 42.] Rent Act 1977 (landlord’s interest belonging to local authority etc.) there shall be added—
“(h) a housing action trust established under Part III of the Housing Act 1988”.
(1) The primary objects of a housing action trust in relation to the designated area for which it is established shall be—
(a) to secure the repair or improvement of housing accommodation for the time being held by the trust;
(b) to secure the proper and effective management and use of that housing accommodation;
(c) to encourage diversity in the interests by virtue of which housing accommodation in the area is occupied and, in the case of accommodation which is occupied under tenancies, diversity in the identity of the landlords; and
(d) generally to secure or facilitate the improvement of living conditions in the area and the social conditions and general environment of the area.
(2) Without prejudice to subsection (1) above, a housing action trust may—
(a) provide and maintain housing accommodation; and
(b) facilitate the provision of shops, advice centres and other facilities for the benefit of the community or communities who live in the designated area.
(3) For the purpose of achieving its objects and exercising the powers conferred on it by subsection (2) above, a housing action trust may—
(a) acquire, hold, manage, reclaim and dispose of land and other property;
(b) carry out building and other operations;
(c) seek to ensure the provision of water, electricity, gas, sewerage and other services; and
(d) carry on any business or undertaking;
and may generally do anything necessary or expedient for the purposes of those objects and powers or for purposes incidental thereto.
(4) For the avoidance of doubt it is hereby declared that subsection (3) above relates only to the capacity of a housing action trust as a statutory corporation; and nothing in this section authorises such a trust to disregard any enactment or rule of law.
(5) Section 71 of the [1976 c. 74.] Race Relations Act 1976 (local authorities: general statutory duty) shall apply to a housing action trust as it applies to a local authority.
(6) A transaction between any person and a housing action trust shall not be invalidated by reason of any failure by the trust to observe the objects in subsection (1) above or the requirement that the trust shall exercise the powers conferred by subsections (2) and (3) above for the purpose referred to in that subsection.
(1) As soon as practicable after a housing action trust has been established for a designated area, the trust shall prepare a statement of its proposals with regard to the exercise of its functions in the area.
(2) The trust shall consult every local housing authority or county council, any part of whose area lies within the designated area, with regard to the proposals contained in the statement prepared under subsection (1) above.
(3) A housing action trust shall take such steps as it considers appropriate to secure—
(a) that adequate publicity is given in the designated area to the proposals contained in the statement prepared under subsection (1) above;
(b) that those who live in the designated area are made aware that they have an opportunity to make, within such time as the trust may specify, representations to the trust with respect to those proposals; and
(c) that those who live in the designated area are given an adequate opportunity of making such representations;
and the trust shall consider any such representations as may be made within the time specified.
(4) As soon as may be after a housing action trust has complied with the requirements of subsections (1) to (3) above it shall send to the Secretary of State a copy of the statement prepared under subsection (1) above together with a report of—
(a) the steps the trust has taken to consult as mentioned in subsection (2) above and to secure the matters referred to in subsection (3) above; and
(b) the consideration it has given to points raised in the course of consultation and to representations received.
(5) At such times as a housing action trust considers appropriate or as it may be directed by the Secretary of State, the trust shall prepare a further statement of its proposals with regard to the exercise of its functions in its area; and subsections (2) to (4) above shall again apply as they applied in relation to the first statement.
(1) If the Secretary of State so provides by order, in a designated area or, as the case may be, in such part of the area as may be specified in the order, the housing action trust for the area shall have such of the functions described in subsection (2) below as may be so specified.
(2) The functions referred to in subsection (1) above are—
(a) the functions conferred on a local housing authority by Parts II, VI, VII and IX to XII and XVI of the [1985 c. 68.] Housing Act 1985 and section 3(1) of the [1970 c. 44.] Chronically Sick and Disabled Persons Act 1970;
(b) the functions conferred by Part II of the [1985 c. 69.] Housing Associations Act 1985 on a local authority, within the meaning of that Act; and
(c) the functions conferred by sections 39 to 41 of the [1973 c. 26.] Land Compensation Act 1973 on the authority which is “the relevant authority” for the purposes of section 39 of that Act.
(3) As respects the designated area or part thereof to which an order under this section applies, on the coming into force of the order, any function conferred on a housing action trust by the order shall, according to the terms of the order, be exercisable either—
(a) by the trust instead of by the authority by which, apart from the order, the function would be exercisable; or
(b) by the trust concurrently with that authority.
(4) Any enactment under which a housing action trust is to exercise a function by virtue of an order under this section shall have effect—
(a) in relation to the trust, and
(b) where the trust is to have the function concurrently with another authority, in relation to that authority,
subject to such modifications (if any) as may be specified in the order.
(5) Where a housing action trust is to exercise functions conferred on a local housing authority by any of Parts VI, VII, IX and XI of the Housing Act 1985, section 36 of the [1974 c. 7.] Local Government Act 1974 (recovery by local authorities of establishment charges) shall apply to the housing action trust as if it were a local authority within the meaning of that section.
(6) Such (if any) of the provisions of Parts XVII and XVIII of the Housing Act 1985 (compulsory purchase, land acquisition and general provisions) as may be specified in an order under this section shall have effect in relation to a housing action trust subject to such modifications as may be specified in the order.
(7) An order under this section—
(a) may contain such savings and transitional and supplementary provisions as appear to the Secretary of State to be appropriate; and
(b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(1) A housing action trust may submit to the Secretary of State proposals for the development of land within its designated area and the Secretary of State, after consultation with the local planning authority within whose area the land is situated and with any other local authority which appears to him to be concerned, may approve any such proposals either with or without modification.
(2) Without prejudice to the generality of the powers conferred by section 24 of the 1971 Act, a special development order made by the Secretary of State under that section with respect to a designated area may grant permission for any development of land in accordance with proposals approved under subsection (1) above, subject to such conditions, if any (including conditions requiring details of any proposed development to be submitted to the local planning authority), as may be specified in the order.
(3) The Secretary of State shall give to a housing action trust such directions with regard to the disposal of land held by it and with respect to the development by it of such land as appear to him to be necessary or expedient for securing, so far as practicable, the preservation of any features of special architectural or historical interest and, in particular, of any buildings included in any list compiled or approved or having effect as if compiled or approved under section 54(1) of the 1971 Act (which relates to the compilation or approval by the Secretary of State of lists of buildings of special architectural or historical interest).
(4) Any reference in this section to the local planning authority,—
(a) in relation to land in Greater London or a metropolitan county, is a reference to the authority which is the local planning authority as ascertained in accordance with section 1 of the 1971 Act; and
(b) in relation to other land, is a reference to the district planning authority and also (in relation to proposals for any development which is a county matter, as defined in paragraph 32 of Schedule 16 to the [1972 c. 70.] Local Government Act 1972) to the county planning authority.
(1) If the Secretary of State so provides by order, for such purposes of Part III of the 1971 Act and in relation to such kinds of development as may be specified in the order, a housing action trust shall be the local planning authority for the whole or such part as may be so specified of its designated area in place of any authority which would otherwise be the local planning authority.
(2) An order under subsection (1) above may provide—
(a) that any enactment relating to local planning authorities shall not apply to the trust; and
(b) that any such enactment which applies to the trust shall apply to it subject to such modifications as may be specified in the order.
(3) An order made by the Secretary of State may provide—
(a) that, subject to any modifications specified in the order, a housing action trust specified in the order shall have, in the whole or any part of its designated area and in place of any authority (except the Secretary of State) which would otherwise have them, such of the functions conferred by Parts IV, V and XV of the 1971 Act as may be so specified; and
(b) that such of the provisions of Part IX and sections 212 and 214 of the 1971 Act as are mentioned in the order shall have effect, in relation to the housing action trust specified in the order and to land in the trust’s area, subject to the modifications there specified.
(4) An order under subsection (3) above may provide that, for the purposes of any of the provisions specified in the order, any enactment relating to local planning authorities shall apply to the housing action trust specified in the order subject to such modifications as may be so specified.
(5) In relation to a housing action trust which, by virtue of an order under subsection (1) above, is the local planning authority for the whole or part of its area, section 270 of the 1971 Act (application to local planning authorities of provisions as to planning control and enforcement) shall have effect for the purposes of Part III of the 1971 Act prescribed by that order, and in relation to the kinds of development so prescribed, as if—
(a) in subsection (1) the reference to the development by local authorities of land in respect of which they are the local planning authorities included a reference to the development by the trust of land in respect of which it is the local planning authority;
(b) in subsection (2),—
(i) in paragraph (a) for the words “such an authority” there were substituted “housing action trust” and for the words “local planning authority” there were substituted “housing action trust”; and
(ii) in paragraph (b) for the words “local planning authority” there were substituted “housing action trust”.
(6) If, by virtue of an order under subsection (1) above, a housing action trust is the local planning authority in relation to all kinds of development for the whole or part of its area, it shall be the hazardous substances authority for that area or, as the case may be, that part for the purposes of the 1971 Act.
(7) Any power to make an order under this section shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament; and any such order shall have effect subject to such savings and transitional provisions as may be specified in the order.
(1) The Secretary of State may by order provide that, in relation to premises comprising or consisting of housing accommodation, a housing action trust shall have in its designated area (or in such part of its designated area as may be specified in the order) the functions conferred on a local authority—
(a) by sections 83 and 84 of the [1936 c. 49.] Public Health Act 1936 (the “1936 Act”) and section 36 of the [1961 c. 64.] Public Health Act 1961 (all of which relate to filthy or verminous premises or articles);
(b) by any enactment contained in Part III (nuisances and offensive trades) of the 1936 Act;
(c) by so much of Part XII of the 1936 Act as relates to any of the enactments mentioned in paragraphs (a) and (b) above; and
(d) by Part I of the [1949 c. 55.] Prevention of Damage by Pests Act 1949 (rats and mice).
(2) On the order coming into force, the trust shall have the functions conferred in relation to the designated area (or part) instead of or concurrently with any such authority, depending on the terms of the order.
(3) The order may provide that any enactment under which the trust is to exercise functions by virtue of the order shall have effect in relation to the trust and, where the trust is to have any function concurrently with another authority, in relation to that authority, as modified by the order.
(4) Where an order under this section provides that a housing action trust shall have the functions conferred upon a local authority by Part III of the 1936 Act, section 36 of the [1974 c. 7.] Local Government Act 1974 (recovery by local authorities of establishment charges) shall apply to the housing action trust as if it were a local authority within the meaning of that section.
(5) The order shall have effect subject to such savings and transitional and supplementary provisions as may be specified in the order.
(6) The power to make an order under this section shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(1) When any street works have been executed in a private street (or part of a private street) in a designated area, the housing action trust may serve a notice on the street works authority requiring it to declare the street (or part) to be a highway which for the purposes of the [1980 c. 66.] Highways Act 1980 is a highway maintainable at the public expense.
(2) Within the period of two months beginning on the date of the service of a notice under subsection (1) above, the street works authority may appeal against the notice to the Secretary of State on grounds relating to all or any of the following matters—
(a) the construction of the street (or part);
(b) its design;
(c) its layout; and
(d) the state of its maintenance.
(3) After considering any representations made to him by the housing action trust and the street works authority, the Secretary of State shall determine an appeal under subsection (2) above by setting aside or confirming the notice under subsection (1) above (with or without modifications).
(4) Where, under subsection (3) above, the Secretary of State confirms a notice,—
(a) he may at the same time impose conditions (including financial conditions) upon the housing action trust with which the trust must comply in order for the notice to take effect, and
(b) the highway (or part) shall become a highway maintainable at the public expense with effect from such date as the Secretary of State may specify.
(5) Where a street works authority neither complies with the notice under subsection (1) above, nor appeals under subsection (2) above, the street (or part) concerned shall become a highway maintainable at the public expense upon the expiry of the period of two months referred to in subsection (2) above.
(6) In this section “private street” and “street works authority” have the same meanings as in Part XI of the [1980 c. 66.] Highways Act 1980.
In paragraph (a) of section 72 of the [1985 c. 68.] Housing Act 1985 (which provides that, on a request by a local housing authority for assistance in the discharge of certain statutory functions relating to homelessness, or threatened homelessness, a body of a description specified in the paragraph shall co-operate in rendering such assistance as is reasonable in the circumstances) after the words “a registered housing association” there shall be inserted “a housing action trust”; and in the words following paragraph (c) of that section after the word “authority” there shall be inserted “or other body”.
(1) For the purpose of achieving its objects a housing action trust may, with the consent of the Secretary of State, give financial assistance to any person.
(2) Financial assistance under subsection (1) above may be given in any form and, in particular, may be given by way of—
(a) grants,
(b) loans,
(c) guarantees,
(d) incurring expenditure for the benefit of the person assisted, or
(e) purchasing loan or share capital in a company.
(3) Financial assistance under subsection (1) above may be given on such terms as the housing action trust, with the consent of the Secretary of State, considers appropriate.
(4) Any consent under this section—
(a) may be given either unconditionally or subject to conditions; and
(b) may be given in relation to a particular case or in relation to such description of cases as may be specified in the consent;
and the reference in subsection (3) above to the consent of the Secretary of State is a reference to his consent given with the approval of the Treasury.
(5) The terms referred to in subsection (3) above may, in particular, include provision as to—
(a) the circumstances in which the assistance must be repaid or otherwise made good to the housing action trust and the manner in which that is to be done; or
(b) the circumstances in which the housing action trust is entitled to recover the proceeds or part of the proceeds of any disposal of land or buildings in respect of which assistance was provided.
(6) Any person receiving assistance under subsection (1) above shall comply with the terms on which it is given and compliance may be enforced by the housing action trust.
(1) In the exercise of its functions, a housing action trust shall comply with any directions given by the Secretary of State.
(2) Directions given by the Secretary of State may be of a general or particular character and may be varied or revoked by subsequent directions.
(3) The Secretary of State shall publish any direction given under this section.
(4) A transaction between any person and a housing action trust acting in purported exercise of its powers under this Part of this Act shall not be void by reason only that the transaction was carried out in contravention of a direction given under this section; and a person dealing with a housing action trust shall not be concerned to see or enquire whether a direction under this section has been given or complied with.
(1) If, in the case of any designated area, it appears to the Secretary of State that it is expedient that the functions of a housing action trust established for the area should be transferred—
(a) to the housing action trust established for another designated area, or
(b) to a new housing action trust to be established for the area,
he may by order provide for the dissolution of the first-mentioned trust and for the transfer of its functions, property, rights and liabilities to the trust referred to in paragraph (a) above, or, as the case may be, to a new housing action trust established for the area by the order.
(2) Where an order under this section provides for the functions of a housing action trust established for a designated area to be transferred to the housing action trust established for another designated area—
(a) the latter trust shall, by virtue of the order, be treated as established for the first-mentioned designated area (as well as the area referred to in subsection (1)(a) above); and
(b) the order may alter the name of the latter trust in such manner as appears to the Secretary of State to be expedient.
(3) Before making an order under this section the Secretary of State shall consult the housing action trust whose functions are to be transferred and also, in a case falling within subsection (1)(a) above, the housing action trust to whom the functions are to be transferred.
(4) An order under this section shall be made by statutory instrument but no such order shall be made unless a draft of it has been laid before, and approved by a resolution of, each House of Parliament.
(1) The Secretary of State may by order provide for the transfer from a local housing authority to a housing action trust of—
(a) all or any of the authority’s local authority housing situated in the designated area; and
(b) any other land held or provided in connection with that local authority housing.
(2) Without prejudice to the powers under subsection (1) above, if in the opinion of the Secretary of State a housing action trust requires for the purposes of its functions any land which, though not falling within that subsection, is situated in the designated area and held (for whatever purpose) by a local authority, the Secretary of State may by order provide for the transfer of that land to the trust.
(3) The Secretary of State may by order transfer from a local housing authority or other local authority to a housing action trust so much as appears to him to be appropriate of any property which is held or used by the authority in connection with any local authority housing or other land transferred to the trust under subsection (1) or subsection (2) above; and for this purpose “property” includes chattels of any description and rights and liabilities, whether arising by contract or otherwise.
(4) A transfer of any local authority housing or other land or property under the preceding provisions of this section shall be on such terms, including financial terms, as the Secretary of State thinks fit; and an order under this section may provide that, notwithstanding anything in section 141 of the [1925 c. 20.] Law of Property Act 1925 (rent and benefit of lessee’s covenants to run with the reversion), any rent or other sum which—
(a) arises under a tenancy of any local authority housing or other land transferred to the housing action trust under subsection (1) or subsection (2) above, and
(b) falls due before the date of the transfer,
shall continue to be recoverable by the local housing authority or, as the case may be, the local authority to the exclusion of the trust and of any other person in whom the reversion on the tenancy may become vested.
(5) Without prejudice to the generality of subsection (4) above, the financial terms referred to in that subsection may include provision for payments by a local authority (as well as or instead of payments to a local authority); and the transfer from a local housing authority or other local authority of any local authority housing or other land or property by virtue of this section shall not be taken to give rise to any right to compensation.
(6) Where an order is made under this section—
(a) payments made by a local authority as mentioned in subsection (5) above shall be prescribed expenditure for the purposes of Part VIII of the [1980 c. 65.] Local Government, Planning and Land Act 1980 (capital expenditure of local authorities); and
(b) unless the order otherwise provides, payments made to a local authority as mentioned in subsection (5) above shall be regarded for the purposes of that Part as sums received by the authority in respect of a disposal falling within section 75(2) of that Act.
(7) Any power to make an order under this section shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(8) In this section “local authority” means any of the following—
(a) a local housing authority;
(b) the council of a county;
(c) the Inner London Education Authority;
(d) an authority established by an order under section 10(1) of the [1985 c. 51.] Local Government Act 1985 (waste disposal);
(e) a joint authority established by Part IV of that Act; and
(f) a residuary body established by Part VII of that Act.
(1) In this section a “transfer order” means an order under any of subsections (1) to (3) of section 74 above and, in relation to a transfer order, “the transferor authority” means the local housing authority or other local authority from whom local authority housing or other land or property is or is to be transferred by the order.
(2) Before making a transfer order, the Secretary of State shall consult the transferor authority with respect to—
(a) the local authority housing or other land or property which it is proposed should be transferred by the order; and
(b) the terms of the proposed transfer.
(3) Before making a transfer order with respect to any local authority housing or other land, the Secretary of State shall take such steps as appear to him to be appropriate to bring the proposed transfer to the attention of any secure tenant or other person (other than a local authority) having an interest in the property proposed to be transferred as lessor, lessee, mortgagor or mortgagee.
(4) In connection with any transfer made by it, a transfer order may contain such incidental, consequential, transitional or supplementary provisions as appear to the Secretary of State to be necessary or expedient and, in particular, may—
(a) apply, with or without modification, any provision made by or under any enactment; and
(b) modify the operation of any provision made by or under any enactment.
Housing Act 1988