Commercial and local authority landlords could benefit from urgently reviewing their legal options.
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as part of an application for disposal under Sections 172 or 133 for consent to disposal: those sections have now been repealed and replaced by the new notification regime.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.
The Cabinet Office has published guidance asking for people to act responsibly, fairly and “in the national interest”.
To help our charity clients look to the future, we summarise key guidance and updates over the last week.
On 18 May 2020, the Ministry of Housing Communities and Local Government (MHCLG) wrote to all social housing residents in England (residents).
For anyone who is currently restrained from holding their General Meeting or have held such in breach of their governing documents, help is on the way!
Social landlords may be surprised to learn that “landlords should be able to carry out routine as well as essential repairs for most households”.
Many housing providers are now re-thinking about gathering information to complete their data return to the Regulator of Social Housing, with the initial exercise having been delayed by Covid-19.
With many premises being left unoccupied (or minimally occupied) during the lockdown, both Public Health England and the Health and Safety Executive have warned of the increased risks of Legionella.
The Court of Appeal judgement in Booth and another v R  EWCA Crim 575 will be welcome news for local authority prosecutors and their investigation teams.
The Local Authorities and Police and Crime Panels (Coronavirus) (Flexibility of Local Authority and Police and Crime Panel Meetings) (England and Wales) Regulations 2020 came into force on 4 April.
To receive invitations to our events, as well as information and articles on legal issues and sector developments that are of interest to you, please sign up to Newsroom.