The monthly round-up from the Anthony Collins Solicitors charities team.
This clarification overrides the discrepancy in the Recovery of Capital Grants and Recycled Capital Grant Fund General Determination 2017 (the “Determination”) that indicates otherwise.
It is a long accepted practice that on the transfer of properties from one RP to another, any grant would automatically transfer. The HCA would usually approve this as part of an application for disposal under Sections 172 or 133 for consent to disposal: those sections have now been repealed and replaced by the new notification regime.
The Determination sets out a number of “Relevant Events”. Those Relevant Events trigger an obligation to repay or recycle the grant in accordance with Determination and Capital Funding Guide (“CFG”). Disposals of land would usually trigger liability, but there is an exception (under category (o)(i)), which states:
“to a Registered Provider (taking the property or land subject to liability for the Capital Grant within it pursuant to section 33 of the Housing and Regeneration Act 2008, Section 27(6) of the Housing Act 1996 or any other predecessor legislation with equivalent effect) with prior approval of the Agency;” (our emphasis).
A strict interpretation of this wording implies the HCA will have to give prior consent to the transfer of grant on disposals between RPs to ensure the grant transfers automatically. We questioned whether this was really the interpretation of this wording?
The HCA has confirmed that this is not the intention. Whilst the wording of the Determination implies that consent is required, the HCA will not require that RPs seek its approval where they are transferring grant-funded property or land to another RP. The HCA is not proposing to alter the wording of the Determination in the meantime.
So what does this mean?
When property is transferring between RPs, any grant will automatically transfer. There is no need to obtain the consent of the HCA to this. The parties simply have to notify the HCA of the transfer in accordance with the procedures and processes set down in the CFG.
For more information
For more information, please contact Jonathan Cox.
In this ebriefing, we identify what we see as the key messages arising from recent prosecutions in the care and housing sectors.
A recent High Court case on costs could prove essential reading for clients who have cases in the magistrates' courts.
The employment and pensions team offer practical advice on whistleblowing.
Partners, David Alcock and Sarah Patrice, have been involved in reviewing the new Code of Governance for community-led housing, published on 21 May 2021 by the Confederation for Coop Housing.
Following the eviction ban being lifted on 31 May 2021 and further to our previous ebriefing, the new notice of seeking possession forms are now available on the Government website as Word versions.
The European Court of Justice's standpoint on the Wiener Wohnen landowning developer case, and how the level of influence over the work did not amount to a decisive influence.
The Law Commission's Technical Issues in Charity Law report revealed that many charities struggle with a range of technical issue in the law.
The Law Commission recommended four key changes to the law in respect of mergers and the incorporation of charities which we have detailed in this ebriefing.
Over the last few weeks, we have published individual ebriefings on some of the key changes to be implemented following the Government’s response to the Law Commission’s report.
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