Citation, commencement and interpretation

1.-(1) These Regulations may be cited as the Housing (Change of Landlord) (Payment of Disposal Cost by Instalments) Regulations 1990 and shall come into force on 31st May 1990.

(2) in these Regulations-

"the Act" means the Housing Act 1988;

"the 1989 Regulations" means the Housing (Change of Landlord) (Prescribed Forms) Regulations 1989(3);

"capital expenditure on housing" means-

"financial year" means a period of twelve months begining on 1st April;

"relevant financial year" means the financial year which, at the date of the service of the notice referred to in section 99(7), is the most recent financial year for which the audit of the landlord's accounts has been concluded;

"relevant payment" means any payment (other than that of interest) in respect of any disposal cost under Part IV of the Act which, at the date of the notice referred to in section 99(7), the landlord has an obligation to make during any financial year after the financial year in which that notice was served or given.

(3) References in these regulations to sections by number are references to sections bearing those numbers in the Act.

Information relating to payment of disposal cost by instalments

2.-(1) The information prescribed for the purposes of section 99(8) is-

(a)the date of the last day in the relevant financial year;

(b)the capital expenditure on housing for the relevant financial year;

(c)the total of any relevant payments, the dates of completion of acquisitions giving rise to them, the amount of each payment and the date on which each payment is due.

(2) The said information shall be furnished to the applicant in the form of either Parts H to J of the form of notice set out in Schedule 4 to the 1989 Regulations or Parts B, C and D of the form of notice set out in Schedule 8 to those Regulations.

(3) The said information shall be certified-

(a)by the landlord's chief finance officer or a person acting on his behalf, by the signing of the certificate in Part K of the form of notice set out in Schedule 4 to the 1989 Regulations or of the certificate in Part E of the form of notice set out in Schedule 8 to those Regulations, and

(b)by an auditor appointed by the Audit Commission for Local Authorities in England and Wales, by the signing of the certificate set out in Part L of the form of notice set out in the said Schedule 4 or of the certificate in Part F of the form set out in the said Schedule 8.

Payment by instalments

3.-(1) The cases prescribed for the purposes of section 104(2A) are those where the amount of the disposal cost in relation to the acquisition is not less than 7 per cent. of the capital expenditure on housing of the landlord.

(2) In any case to which section 104(2A) applies, the disposal cost may be paid by instalments of such amounts, at such times and over such period as is prescribed in accordance with the following Table-

(3) The interest included in the amount of an instalment shall be calculated at the rate of 154 per cent. on the amount outstanding on completion of the acquisition or, as the case may be, immediately after payment of the previous instalment for the period from the date of completion or the payment of that instalment (as the case may be) to the date of payment of the present instalment.

Explanatory Note

(This note is not part of the Regulations)

These Regulations provide for matters relating to the payment of disposal cost by instalments. Where, in the exercise of the right to acquire the fee simple estate in buildingsand other property from a public sector landlord conferred by Part IV of the Housing Act 1985 (change of landlord: secure tenants), it is determined that the property to which the acquisition relates would not realise any price, section 99(3) of that Act provides that there is a disposal cost attributable to that property. Sections 99(7)and 104(2A), which were inserted by section 174 of the Local Governmentand Housing Act 1989, provide for such a disposal cost to be paid by instalments in prescribed casesand for prescribed information to be furnished by the landlord to the applicant.

Regulation 1(2) contains definitions. Regulation 2 prescribes the information to be furnished to the applicantand the form in which it is to be furnished,and provides that the information is to be certified, in the manner prescribed, by or on behalf of the landlord's chief finance officerand by an auditor appointed by the Audit Commission for Local Authorities in Englandand Wales. The forms to which regulation 2 refers are contained in the Housing (Change of Landlord) (Prescribed Forms) Regulations 1989 (S.I. 1989/374), to which amendments are made by the Housing (Change of Landlord) (Prescribed Forms) (Amendment) Regulations 1990 (S.I. 1990/1059).

Regulation 3 prescribes the cases in which a disposal cost may be paid by instalments, the amount of each instalmentand the times at whichand period over which the instalments are payable. The regulation provides that the amount of each instalment shall include interest at 154 per cent. on the outstanding amount.