HOUSING BILL

EXPLANATORY AND FINANCIAL MEMORANDUM

INTRODUCTION

1. This Explanatory and Financial Memorandum has been prepared by the Department for Social Development (the Department) in order to assist the reader of the Bill and to help inform debate on it. It does not form part of the Bill and has not been endorsed by the Assembly.
2. The Memorandum needs to be read in conjunction with the Bill. It does not give, and is not meant to be, a comprehensive description of the Bill. So where a clause or part of a clause (or Schedule) does not seem to require any explanation or comment, none is given.

BACKGROUND AND POLICY OBJECTIVES

3. The existing legislation is contained in the Housing (Northern Ireland) Orders of 1981, 1983, 1986, 1988 and 1992 and the Rent (Northern Ireland) Order 1978. In the light of experience in operating the legislation and having regard to developments in Great Britain, the Department has identified a number of issues that need to be addressed - in particular, with respect to the conduct of tenants, payment of grants and various miscellaneous matters. The policy objectives are to deal with nuisance caused by the conduct of certain persons at residential premises let to tenants of the Northern Ireland Housing Executive ("the Executive") and registered housing associations (RHAs); to provide a more flexible grants scheme for the renewal of private sector housing that can be targetted more effectively; and to amend the Rent (NI) Order 1978 and the Housing (NI) Orders 1981 to 1992 in order to address issues including responsibility for the register of rents, allocation of housing accommodation, caravan sites for members of the Irish Traveller community and a registration scheme for houses in multiple occupation (HMOs).

Part I of the Bill

4. Part I of the Bill deals with introductory tenancies, repossession of houses let under secure tenancies and injunctions against anti-social behaviour. The policy objectives are to create tenancies that are more easily brought to an end than secure tenancies (Chapter I); to extend the grounds for regaining possession of secure tenancies, with revision of proceedings (Chapter II); and to enable the Executive and RHAs to apply for injunctions where nuisance is being caused to occupants of Executive or RHA property (Chapter III).

Introductory tenancies

5. Chapter I of Part I provides for introductory tenancies. Executive and RHA tenancies are normally "secure" and cannot be brought to an end except by a court order (an "order for possession"). While the courts will not grant an order for possession in respect of a secure tenancy unless there are statutory grounds for making such an order, proving such grounds to the court's satisfaction can be difficult and time-consuming. It is proposed to allow the Executive and RHAs to offer "introductory" tenancies with no security of tenure for a 12 month probationary period. If the tenant misbehaves during the probationary period, the landlord can seek an order for possession without any requirement to prove grounds. Otherwise, the tenancy will become secure when the 12 month period expires. It is proposed to give the Executive and RHAs the option of offering all new tenancies on an introductory basis.

Grounds for possession

6. Chapter II of Part I extends the grounds, listed in Schedule 3 to the Housing (Northern Ireland) Order 1983, on which a court may grant an order for possession in the case of a secure tenancy. The existing grounds provide landlords with no scope for action where nuisance is caused by persons not resident in the area. The Bill addresses this issue by amending the grounds for possession to enable the courts to grant orders for possession on the basis of:

• nuisance caused by a tenant's visitors or guests;

• nuisance caused to persons visiting or having lawful business in the area (which allows "professional" witnesses such as council officials and police officers to give evidence in court), and
• an arrestable offence committed by the tenant or by his visitors or guests.

7. The Bill would also enable the courts to grant orders for possession where:

• domestic violence has been committed by the tenant, or

• the tenancy is found to have been awarded on the basis of a false statement made by another party at the tenant's instigation.

Proceedings for possession

8. Where the court has granted an order for possession, the landlord can, if necessary, evict the tenant. However, the existing procedures for obtaining such an order can be complex and time-consuming. It is therefore proposed to streamline the legal process e.g. by empowering the courts to dispense with the serving of certain notices in urgent cases.

Injunctions against anti-social behaviour

9. Chapter III of Part I will allow the Executive and RHAs to apply for an injunction, which can be granted against any person who engages in specific forms of anti-social behaviour affecting social housing stock. Under the current legislation a social landlord in Northern Ireland has no scope for action where nuisance is caused to his tenants by a non-tenant.
   
   

Part II of the Bill

10. Part II of the Bill deals with grants for the renewal of private sector housing. The policy objective, reflecting New Targeting of Social Need principles, is to allow the Executive greater flexibility to target the grants budget more effectively in order to reduce levels of housing unfitness.



Move from mandatory to discretionary grants scheme

11. Chapter I of Part II deals with grants to the private sector. The Executive has a mandatory duty under Part III of the Housing (Northern Ireland) Order 1992 to provide grant aid (through renovation and replacement grants) to reduce unfitness in the private sector and (through disabled facilities grant) to enhance the potential for a more independent lifestyle for people with disabilities. The range of grants broadly reflects those available in Great Britain (although replacement grant, which provides for the complete replacement of isolated rural dwellings where renovation would be uneconomic or impracticable, is unique to Northern Ireland). The demand-led nature of the mandatory grant system reduces the Executive's flexibility in dealing with the problem of unfit housing. Chapter I provides for a move to a largely discretionary scheme, while continuing to pay mandatory and discretionary disabled facilities grant, and sets out the main grants that can be paid.

Group repair scheme

12. Chapter II of Part I provides for a group repair scheme. At present the Executive has a group repair scheme to assist householders (mainly in the private sector, although the scheme can include a small number of houses belonging to social landlords in order to take a viable scheme forward) improve the exterior of their homes. The scheme takes account of the condition of the dwelling as well as the householder's ability to meet the costs of the required work. The scheme has helped to regenerate housing in a number of areas and it is proposed to take powers under Chapter II to widen eligibility e.g. to include purpose built flats and to deal with structural instability.

Home Repair Assistance

13. Chapter III of Part II replaces Minor Works Assistance (which is available mainly to the elderly) with Home Repair Assistance, which will provide higher levels of grant-aid for a wider range of works, and be available to anyone in receipt of income-related benefits.

Deferred action notices

14. Chapter IV of Part II enables the Executive to serve a deferred action notice where it is satisfied that a house is unfit for human habitation but immediate remedial action may not be the best way to meet the needs of the individuals concerned.

Part III of the Bill

15. Part III of the Bill makes a series of amendments to the Rent (NI) Order 1978, the Housing (NI) Orders 1981 to 1992 and the Commissioner for Complaints (Northern Ireland) Order 1996.

Register of rents

16. Chapter I of Part III transfers the Department's responsibility for the Rent Register to the Executive. Under Articles 25 and 26 of the Rent (Northern Ireland) Order 1978, the Department maintains a register of rents payable under regulated and restricted tenancies of dwelling houses. The purpose of these categories of tenancies (collectively known as "protected" tenancies), which are peculiar to Northern Ireland, is to ensure that rents are raised and repairs enforced only in respect of those dwellings which are above a given standard (regulated tenancies) and, conversely, that rents would not be raised nor onerous repairing duties imposed on landlords in respect of less satisfactory dwellings (restricted tenancies). The policy objectives are to enhance the Executive's role as the single, comprehensive, regional housing authority in Northern Ireland and to allow the Department to concentrate on policy and legislative matters.

Proceedings for offences with respect to rent books

17. Chapter I of Part III also gives district councils the power to enforce the Rent Book Regulations. Article 38 of the Rent (Northern Ireland) Order 1978 requires that a tenant under a private tenancy must have a rent book containing such information relating to the tenancy as may be prescribed in regulations. While the Rent Book Regulations (Northern Ireland) 1978 prescribe the information to be contained in the rent book, there is no provision for enforcement of these requirements. District councils in Northern Ireland already have power to enforce the provisions of the Rent Order in relation to unlawful eviction. The policy objective is to ensure that the statutory provisions relating to rent books are properly enforced.

Eligibility for social housing

18. Chapter II of Part III relates to the allocation of social housing. Article 22 of the Housing (Northern Ireland) Order 1981 requires the Executive to grant tenancies of its houses in accordance with an allocation scheme. The Homelessness Act 2002 for England and Wales provides that public sector housing should be allocated only to "eligible persons" and that certain descriptions of persons should not be eligible to be allocated such housing. It is proposed to introduce this concept of eligibility in Northern Ireland, along the lines set out below.

Persons from abroad

19. By virtue of the Immigration and Asylum Act 1999, the Executive cannot allocate housing accommodation to persons who are subject to immigration control unless those persons belong to a class specified in regulations made by the Secretary of State. That Act also makes similar provision for England and Wales. The Homelessness Act 2002 for England and Wales provides that persons who, by virtue of the Immigration and Asylum Act, cannot be allocated housing accommodation, should be "ineligible persons", and that there should be power to prescribe other classes of persons from abroad who are to be treated as "ineligible". Chapter II of Part III proposes to amend the Housing (Northern Ireland) Order 1981 to provide that persons who, by virtue of the Immigration and Asylum Act, cannot be allocated housing accommodation in Northern Ireland are "ineligible persons". The Secretary of State would also have power to prescribe that other classes of persons from abroad are to be treated as "ineligible". The policy objective is to ensure that the eligibility of persons from abroad to access social housing is broadly similar throughout the United Kingdom.

Persons guilty of unacceptable behaviour

20. Chapter II of Part III proposes to amend the Housing (Northern Ireland) Order 1981 to give the Executive and RHAs discretion to treat applicants for housing accommodation as "ineligible" for such accommodation if they, or members of their households, have been guilty of unacceptable behaviour which would, if the person concerned had been a secure tenant, provide grounds for possession relating to anti-social behaviour. The policy objective is to discourage anti-social behaviour.

Caravan sites for members of the Irish Traveller community

21. Chapter II of Part III gives the Executive power to provide and manage caravan sites for Travellers. A Working Party on Travellers' Accommodation, which was set up in 1996, confirmed that existing local authority provision of serviced sites for Travellers was inadequate. It also confirmed that some Travellers, especially those, who have been living on "settled" sites for a number of years, wish to have access to social housing specifically designed to meet their needs. It was therefore proposed that the Executive should take responsibility for the future acquisition and management of serviced sites. The policy objective is to ensure that the housing needs of travellers are addressed in a holistic and consistent way.

Acquisition of land for amenity purposes

22. The Executive has no power to acquire land other than for the provision of housing. It is thus unable to act in cases where its housing stock is blighted by adjacent pockets of private land containing derelict or undesirable buildings. It is therefore proposed that the Executive should be allowed to acquire land for the purpose of improving the amenities of a housing area. Having acquired such land, the Executive would be in a position to demolish any offending buildings and to carry out any necessary landscaping or environmental improvement works. The policy objective is to enable the Executive to improve the environment of housing areas.

Home insulation scheme

23. The provisions of the Housing (Northern Ireland) Order 1981 relating to home insulation grants have been superseded by more recent legislation providing for a "Warm Homes" scheme. It is therefore proposed to repeal the spent provisions of the 1981 Order. The policy objective is the removal of obsolete legislation.

Disposal of houses (large scale voluntary transfers)

24. Article 88C of the Housing (Northern Ireland) Order 1981 (as substituted by Article 92 of the Housing (Northern Ireland) Order 1992) provides that the Executive can transfer housing stock to other landlords (such disposals are known as large scale voluntary transfers (LSVTs). However, the existing legislation is unsatisfactory because it allows a single tenant to veto a LSVT proposal.
25. On the basis that implementation of any future LSVT plans should not be subject to veto by a single tenant, it is proposed to amend the 1981 Order to allow an LSVT proposal to proceed where a majority of tenants are in favour of the transfer. The policy objective is to facilitate the transfer of Executive properties.

Increase of penalty for obstruction

26. Article 160(1) of the Housing (Northern Ireland) Order 1981 makes it an offence to obstruct an authorised officer in the performance of his duties under that Order. It is proposed to increase the maximum fine for committing the offence from level 3 to level 4 on the standard scale (currently £2500). The policy objective is to support the enforcement provisions in respect of houses in multiple occupation.

Membership of the Executive Board

27. Schedule 1 to the Housing (Northern Ireland) Order 1981 provides that 3 places on the Executive's Board shall be reserved for members of the Northern Ireland Housing Council (an advisory body appointed by the Department and comprising representatives from each of Northern Ireland's district councils). Current guidance on public appointments recommends that nominating bodies should be asked for a selection of candidates from which appointments can be made. It is therefore proposed to amend the existing legislation so that the Department can ask the Housing Council to nominate a selection of candidates, while retaining the Council's right to 3 places on the Board.
28. It is also proposed to place a duty on the Minister to ensure that the membership of the Board is, so far as possible, representative of the community as a whole.
29. The policy objectives are to enable the Department to comply with guidance on public appointments and to ensure that the Executive Board is representative of the whole community.

House sales by RHAs

30. Chapter III of Part III provides a statutory right for RHA tenants to buy their homes. This would require all RHAs to operate a scheme for the sale of their houses at a discount. Whilst a voluntary sales scheme, similar in design to the Executive's house sales scheme, has been in operation for some time some associations have chosen not to participate in the scheme. The policy objective is to ensure that all tenants of social housing enjoy the same statutory right to become home owners.

Executive tenants: right to compensation for improvements

31. Article 35 of the Housing (Northern Ireland) Order 1983 gives Executive tenants the right to make improvements to their homes, provided that the Executive has given its consent. The Executive has been operating a discretionary scheme whereby tenants can be reimbursed for improvements which have materially added to the value of the dwelling, whether for rent or for sale on the open market. It is proposed that the Executive should be required to have a statutory scheme for compensating its tenants for improving their homes which includes mandatory compensation for certain "qualifying improvements". This reflects a commitment in the Northern Ireland Citizens' Charter. The policy objective is to enable Executive tenants to be adequately compensated where they have paid for their own home improvements, but leave the property before they have gained the full benefit of their investment.

Executive tenants: right to repair

32. Article 38A of the Housing (Northern Ireland) Order 1983 (as inserted by Article 39 of the Housing (Northern Ireland) Order 1986) provides that Executive tenants may apply for the right to carry out minor repairs to their homes and to recover the costs of that work from the Executive. However, the Executive has, since October 1997, been operating a more comprehensive non-statutory right to repair scheme, which enables tenants to get minor but urgent repairs affecting health, safety or security done quickly and at no cost to themselves. It is proposed to substitute a new Article 38A in the 1983 Order, with the policy objective of providing statutory authority for this scheme.

Tenancies which are not secure tenancies

Premises occupied under contract of employment

33. Some Executive and RHA accommodation may be occupied by employees of these bodies (e.g. caretakers) as part of their contract of employment. In circumstances where the occupier ceases to be an employee, the Executive or RHA may wish to regain possession of the premises. For this reason, Schedule 2 to the Housing (Northern Ireland) Order 1983 provides that such tenancies are not "secure". However, it may be desirable, for housing management reasons, that the occupier remains in the premises as a secure tenant. It is therefore proposed that the Executive and RHAs should have the power to create a secure tenancy by notifying an occupier that his tenancy is secure. The policy objective is to enable the Executive and RHAs to be more flexible in managing premises occupied under contract of employment.

Accommodation provided for Homeless Persons

34. Schedule 2 to the Housing (Northern Ireland) Order 1988 amends Schedule 2 to the Housing (Northern Ireland) Order 1983 to enable the Executive to provide temporary accommodation in its own housing stock for certain descriptions of homeless persons without creating a secure tenancy. Schedule 2 to the 1988 Order provides that such accommodation will become secure after 12 months of continuous occupation. However, if the Executive uses its own or RHA housing stock as temporary accommodation for other descriptions of homeless applicants, a secure tenancy might be created. It is therefore proposed to make a further amendment to the 1983 Order to provide that a tenancy granted in pursuance of any of the Executive's functions under the homelessness legislation is not to be regarded as a secure tenancy unless the landlord wishes it to be so regarded. The policy objective is to enable the Executive to be more flexible in its response to homelessness.

Qualifying shorthold tenancies

35. A large number of privately-owned properties in Northern Ireland are currently vacant. Research indicates that, while many of the owners would be reluctant to sell, they might be persuaded to lease such properties to RHAs, provided that the properties could be handed back, with vacant possession, within an agreed period. At present, RHAs are not in a position to enter into such arrangements because Article 25 of the Housing (Northern Ireland) Order 1983 provides that all housing association tenants have security of tenure. It is therefore proposed to create a new form of tenancy, to be known as a "qualifying shorthold tenancy". This should enable RHAs to make use of some privately-owned properties, which would otherwise be vacant, for the purpose of meeting short-term housing need. The policy objectives are to reduce the amount of new social housing required and to contribute to town centre rejuvenation and rural regeneration.

Homelessness

Definition of homelessness

36. Article 3 of the Housing (Northern Ireland) Order 1988 provides that persons are homeless if they have no accommodation in Northern Ireland. This provision was designed to complement the homelessness legislation for Great Britain which provided that persons were homeless if they had no accommodation in England, Wales or Scotland. However, the Housing Act 1996 (which applies in England and Wales) subsequently provided for persons to be treated as homeless if they had no accommodation available for their occupation in the United Kingdom or elsewhere. It is proposed to adopt the same definition for Northern Ireland. The policy objective is to ensure that applicants cannot be accepted as homeless by the Executive if they have accommodation available for their occupation outside Northern Ireland.

Intentional homelessness

37. The Housing Executive has only a limited duty under the Housing (Northern Ireland) Order 1988 to a person who becomes homeless "intentionally" i.e. who does anything, or fails to do anything, in consequence of which he ceases to occupy accommodation.
38. Some individuals arrange for their families (or other persons who should be in a position to provide them with accommodation) to support their claims to be homeless, with a view to gaining priority for re-housing under the homelessness legislation. Such misrepresentation is an offence under Article 17 of the Housing (Northern Ireland) Order 1988 and, where the Executive has good reason to believe that an arrangement of this kind has been entered into, its policy is to treat the applicant as intentionally homeless. In order to provide a clear statutory basis for the Executive's policy in these cases, it is proposed to provide that applicants shall be treated as intentionally homeless if, in order to take improper advantage of the legislation, they have dishonestly arranged for other parties to support their claims. The objective is to ensure that social housing is allocated to those with a genuine need for it. This would mirror provision made for England and Wales in the Housing Act 1996.

Eligibility for homelessness assistance: persons from abroad

39. By virtue of the Immigration and Asylum Act 1999, the Executive cannot provide accommodation for homeless applicants if the applicants are persons subject to immigration control, unless the applicants belong to a class specified in an order made by the Secretary of State. The Housing Act 1996 makes similar provision in respect of homelessness assistance provided by housing authorities in England and Wales, and also contains power to prescribe other classes of persons from abroad who are to be treated as ineligible for such assistance. There is no similar power currently available in Northern Ireland to prescribe classes of persons who are ineligible for homelessness assistance. It is proposed to amend the Housing (Northern Ireland) Order 1988 to provide that homeless persons who, by virtue of the Immigration and Asylum Act 1999, cannot be provided with accommodation are "ineligible" persons for the purposes of the homelessness legislation, with power for the Secretary of State to prescribe other classes of persons to be treated as persons from abroad who are ineligible for homelessness assistance. The policy objective is to ensure that homeless persons from abroad have similar entitlements throughout the United Kingdom.

Eligibility for homelessness assistance: persons guilty of unacceptable behaviour

40. It is proposed to amend the Housing (Northern Ireland) Order 1988 to provide that applicants for homelessness assistance may be treated as ineligible for re-housing if they, or members of their households, have been guilty of unacceptable behaviour which would, if the relevant person had been a secure tenant, render the person liable to eviction. This would complement similar provision elsewhere in the Bill in respect of applicants for housing accommodation (see paragraph 20). The policy objective is to discourage anti-social behaviour.

Emergency grants

41. Where an Executive tenant has been forced to leave his home as a result of intimidation, the Executive may pay an emergency grant to help with the immediate crisis. Such payments are made under general powers contained in Article 39(1)(a)(ii) of the Land Acquisition and Compensation (Northern Ireland) Order 1973, as substituted by paragraph 4 of Schedule 11 to the Housing (Northern Ireland) Order 1981. However where the Executive wishes to pay such grant to a private sector tenant, it must rely on special authorisation granted in July 1996. It is proposed to make specific statutory provision for the payment of emergency grants, with the policy objective of establishing a sound legal basis for these payments.

Sale of housing association loan portfolio

42. RHAs currently operate on a mixture of public subsidy in the form of Housing Association Grant (HAG) and private finance. Because associations are not required to repay HAG, rents can be kept at affordable levels. Prior to 1992, however, associations received 100% funding by means of a long-term loan, repayable to the Department. The outstanding loan is approximately £35m. In England, the housing association loans portfolio was successfully sold off by the Housing Corporation in 1997 and it is proposed to give the Department power to do likewise. The policy objective is to ensure that there would be no legal barrier to prevent the Department from disposing of the housing association loans portfolio in the event that it might be deemed expedient to do so.

Housing association rents

43. Article 8(7) of the Housing (Northern Ireland) Order 1992 provides that RHAs shall not increase the level of rent during the first 12 months of a tenancy, and may increase the rent on one occasion only during any subsequent period of 12 months. Associations find this restrictive, as they have to assume a rent increase when setting a rent for an in-year letting. This creates anomalies between rents on similar properties, as well as artificially high average rent figures. The restriction also discourages associations from making all rent increases on an agreed date. It is therefore proposed to amend Article 8(7) to allow associations to increase the rent payable under a tenancy on one occasion only during any financial year. The policy objective is to enable registered housing associations to synchronise rent increases.

Disposal of land by RHAs

44. Article 13 of the Housing (Northern Ireland) Order 1992 requires that a statutory charge shall be registered in respect of property acquired by RHAs. Where the Northern Ireland Co-Ownership Housing Association acquires property for the purpose of granting an equity-sharing lease, no useful purpose is served by registering a charge. It is therefore proposed to remove the requirement for a statutory charge to be registered where the property was acquired for the purpose of granting an equity-sharing lease. The policy aim is to remove unnecessary bureaucracy.

Repairs grants

45. Article 74 of the Housing (Northern Ireland) Order 1992 provides that grant shall be payable towards the cost of meeting repairing obligations imposed by certificates of disrepair or public health notices. These grants are not means-tested. It is proposed that repairs grants should only be available for properties in the private rented sector, with the policy objective of ensuring that resources are targeted at those in greatest need.

Houses in multiple occupation (HMOs)

46. HMOs, which form part of the private rented sector, provide accommodation suitable for students and other young people. Because of the separate living arrangements of the occupants, there are increased demands on the management of the properties, many of which are of poor quality and lack adequate fire precautions. The Executive has existing powers under Part IV of the Housing (Northern Ireland) Order 1992 to require that HMOs, as defined in Article 75 of that Order, meet certain standards.
47. Case law has narrowed the statutory definition of an HMO to such an extent that it may not cover all student lettings (which account for up to 50% of the sector). The proposal therefore is to strengthen the definition of an HMO so that there can be no doubt that it includes student accommodation. It is proposed to use a definition similar to that used in Scottish law.
48. The Bill also includes a power for the introduction of a registration scheme for HMOs. The policy objective is to improve the quality and safety of HMOs by bringing more properties within the scope of the statutory agencies concerned with such standards.

Service of documents

49. Article 104 of the Housing (Northern Ireland) Order 1992 provides that the Executive can effect legal service of certain documents by ordinary post. It is proposed to extend this dispensation to RHAs. The policy objective is to facilitate the day to day operations of RHAs.

RHAs to be subject to investigation by Commissioner for Complaints

50. Executive tenants have a statutory right to approach the Northern Ireland Commissioner for Complaints if they feel that there has been maladministration on the part of the Executive. It is proposed that the Commissioner for Complaints (Northern Ireland) Order 1996 should be amended to extend the Commissioner's remit to cover actions taken in exercise of administrative functions by RHAs. The policy objective is to ensure that all tenants of social housing have equal access to redress.

CONSULTATION

51. Certain proposals in the draft Bill originally formed part of a draft Order in Council (intended to give effect to various housing commitments in the Tenants and Citizens Charters) and were subject to the full consultation procedures required for an Order in Council in 1996. Other proposals arise mainly from a Housing Policy Review published in 1996 and recommendations in a report on Travellers accommodation published in 1998 both of which were subject to consultation.
52. Initial consideration of relevant issues has taken place with the Northern Ireland Human Rights Commission, the Housing Executive, the Northern Ireland Federation of Housing Associations, District Councils, the Northern Ireland Courts Service, the Northern Ireland Office, the Department of Finance and Personnel and the Department of Health, Social Services and Public Safety. Details of the proposals were also provided to the Equality Commission for Northern Ireland.
53. The draft Bill was also published for consultation and further comments invited for consideration before the Bill was introduced in the Assembly.

OPTIONS CONSIDERED

54. Much of Northern Ireland's existing housing legislation is based on corresponding legislation applying in Great Britain. In developing proposals for inclusion in the Bill the Department has therefore, in addition to consideration of the operation of the Northern Ireland legislation, had regard to developments in the housing legislation in Great Britain.

Conduct of tenants

55. The Housing Policy Review completed in 1996 considered a number of representations about the need for effective measures to deal with anti-social behaviour. The Review recognised that this is a complex issue which needs to be dealt with through a variety of approaches, including advising tenants of their rights and responsibilities, mediation, multi-agency initiatives and estate design. However, it was also recognised that, in the worst cases, legal action, including injunction and eviction, may be appropriate. The legal remedies currently available are excessively time-consuming and costly. It is therefore proposed that measures introduced in England and Wales under the Housing Act 1996, including introductory tenancies, additional grounds for possession, streamlining the eviction process and providing for injunctions against anti-social behaviour, should form the basis of the proposals to be included in the draft Bill.
56. In Great Britain the provisions relating to introductory tenancies only apply to local authorities. However RHAs have a major role in the provision of social housing in Northern Ireland and it is proposed that both the Executive and RHAs should also be able to offer introductory tenancies.
57. In England and Wales injunctions against anti-social behaviour are backed by a power of arrest without warrant where there is an actual threat of violence and a significant risk of harm. Because of different judicial procedures in relation to bail and remand applying in Northern Ireland, it is not practicable to introduce a power of arrest without warrant here. It is therefore proposed that injunctions in Northern Ireland should be granted where there is a significant risk of harm only.

Grants for renewal of Private Sector Housing

58. In order to meet the objective of a more flexible grants scheme, there are no alternatives to the proposal to change the nature of the scheme from mandatory to largely discretionary.

Transfer of duty to keep Rent Register

59. While the Department could continue to maintain the Rent Register, the Housing Policy Review completed in 1996 recognised that the private rented sector in Northern Ireland was declining, and took the view that a strategic approach was the best way to revive it. The Review emphasised the role of the Executive as the single, comprehensive, regional housing authority, and proposed that the Executive would be best placed to take the lead in developing a strategic approach to the private rented sector. The transfer of responsibility for maintaining the Rent Register will support this strategic role for the Executive.

Eligibility for social housing

Persons from abroad

60. The Immigration and Asylum Act 1999 provides that persons who are subject to immigration control are not entitled to be allocated accommodation by housing authorities throughout the United Kingdom unless they are of a class specified in an order by the Secretary of State. For England and Wales, the Housing Act 1996 also allows regulations to prescribe other classes of persons from abroad, who are not subject to immigration control, as "not qualified" to be allocated accommodation. Because there is no corresponding legislation to this further provision in Northern Ireland, some persons from abroad who cannot access local authority housing in England and Wales can apply for housing here. Such applicants would have no entitlement to housing benefit and, possibly no means to pay rent. Given that the Secretary of State already has responsibility for making the regulations which confer entitlement on persons from abroad to apply for social housing, it is proposed that the power to prescribe the classes of persons who are not eligible for such housing should also be conferred on the Secretary of State (rather than the Department).

Persons guilty of anti-social behaviour

61. The proposal to allow the Executive to treat applicants with a history of unacceptable behaviour as ineligible to be allocated tenancies reflects the position in England and Wales and is complementary to other aspects of the Bill covering conduct of tenants and access to assistance under homelessness legislation.

Traveller sites

62. The Working Party on Travellers' Accommodation considered a number of options for delivering and administering, within available resources, new arrangements for meeting Travellers' accommodation needs. The Working Party published its report for consultation in 1998, seeking views on the provision of accommodation through the existing system of serviced sites (provided by district councils) and housing (provided by the Executive); or, alternatively, sites and accommodation, or a mixture of both, to be provided by district councils or housing associations. Responses indicated strong support for the strategic role in relation to Traveller accommodation to be given to a single agency. It is therefore proposed that the Executive should be responsible for providing Traveller sites and a range of appropriate accommodation through the normal mechanisms for the funding, programming and allocation of social housing. The provisions in the Local Government (Miscellaneous Provisions) (NI) Order 1985, under which district councils could make provision for Travellers are to be repealed.

Acquisition of land for amenity purposes

63. The proposal to allow the Executive to acquire land for the purpose of improving amenities offers the best means by which the Executive can protect its housing stock from blight caused by derelict buildings etc.

Disposal of houses (Large scale voluntary transfers)

64. Legislation is needed to enable a LSVT to proceed where a majority of tenants are in favour of the transfer. This would be in line with provision already operating successfully in Great Britain.

Membership of Executive Board

65. The proposal that the Department should have the power to direct the Housing Council to nominate a selection of candidates from which appointments can be made to the Executive Board is in line with guidance on public appointments and can only be achieved through legislation.
66. Legislation is also required to place a duty on the Minister to ensure that the Executive Board is representative of the community in line with other public appointments.

House sales by RHAs

67. The Department has encouraged RHAs to allow tenants to purchase their homes at a discount by paying a voluntary purchase grant (which makes up the difference between the sale price and the market value) to associations and by allowing associations to retain the proceeds from house sales. However some associations still do not allow tenants to purchase their homes. The introduction of a statutory right to purchase their home is the only way of ensuring that RHA tenants can enjoy the rights to purchase which are already available to Executive tenants.

Executive tenants: right to compensation for improvements and right to repair

68. The introduction of legislation is the only means of providing a proper statutory footing to ensure that Executive tenants have the right to receive compensation for improvements they have carried out and to have minor repairs carried out at the Executive's expense.

Qualifying shorthold tenancies

69. In the interests of promoting regeneration and meeting housing need, it is desirable to bring privately-owned vacant properties back into the housing market. Rather than taking a draconian approach such as compulsory acquisition, it is proposed to encourage the owners of empty properties to lease them to RHAs. Research indicates that this could be achieved in many cases if associations were in a position to offer short-term tenancies.

Homelessness

70. It is important that homeless people have similar entitlement to assistance in all parts of the United Kingdom. The proposals set out below are designed to ensure that Northern Ireland's homelessness legislation remains broadly in line with the provisions which apply in the rest of the United Kingdom.

Definition of homelessness

71. The introduction under the Housing Act 1996 of a wider definition of homelessness for England and Wales (i.e. that a person is homeless if he has no accommodation available for his occupation in the United Kingdom or elsewhere) makes it desirable to adopt the same definition in Northern Ireland. The aim is to ensure that this aspect of Northern Ireland's homelessness legislation meshes effectively with the equivalent provisions in other parts of the United Kingdom.

Intentional homelessness

72. The principle that individuals should not be able to gain preferential access to social housing by deliberately misrepresenting their circumstances is already implicit in homelessness legislation. It is therefore the Executive's policy to treat applicants as intentionally homeless if they appear to have entered into arrangements with other parties in order to take advantage of the legislation. Explicit statutory authority is needed to cover this policy, which reflects similar provision for England and Wales in the Housing Act 1996.

Eligibility for assistance: persons from abroad

73. The proposals relating to persons from abroad and their eligibility to homelessness assistance is the only way to bring Northern Ireland into line with the provisions applying in England and Wales.

Eligibility for homelessness assistance: persons guilty of anti-social behaviour

74. Given that applicants with a history of anti-social behaviour are to be treated as unsuitable to be awarded secure tenancies via the waiting list (see paragraph 61), it would be undesirable for such applicants to gain access to secure tenancies via the homelessness legislation. However it is proposed that the Executive should have a duty to provide advice and whatever other assistance it considers appropriate to all homeless applicants, even where those persons have been guilty of unacceptable behaviour.
75. Because anti-social individuals can become homeless as a direct result of their own behaviour, consideration was given to the possibility of treating such applicants as "intentionally homeless". However, this could be seen as condoning illegal eviction, thereby lending credibility to groups and organisations involved in such actions. It was therefore decided to deal with the issue in the context of eligibility for assistance under the homelessness legislation. It should be noted that this is a discretionary provision which is intended to enable the Executive to refuse to award secure tenancies in circumstances where it would clearly not be in the public interest to do so.

Sale of housing association loans portfolio

76. Legislation is the only way to remove the legal obstacles which would prevent the Department from disposing of the housing association loans portfolio.

Housing association rents

77. It would help with administration if RHAs could introduce their rent increases on the one date. While associations could be required to do so by legislation, such a course of action would conflict with Government policies on deregulation and reducing the legislative burdens on small businesses. That option has therefore been rejected in favour of voluntary synchronisation of rent increases. However, an existing legal prohibition on increasing rents during the first 12 months of a tenancy creates administrative problems and extra costs for associations if they attempt to synchronise their rent changes and it is therefore proposed to remove this impediment.

Houses in multiple occupation (HMOs)

78. Because of the poor safety standards of many HMOs, the "do nothing" option has been ruled out. The proposal to follow the example of England and Wales, where a change in the statutory definition of HMOs has brought more properties within the scope of review etc. by the relevant agencies, will help improve standards in this part of the private rented sector. The Department is however mindful that such a scheme could lead to increased costs for some landlords.

RHA tenants: Investigation of complaints

79. In the past, proposals to extend the remit of the Commissioner for Complaints to cover RHAs were rejected on the basis that, although funded by the Department, associations are private organisations. Other options considered included appointing a housing association ombudsman on a non-statutory basis (as in Great Britain), or extending the jurisdiction of one of the English housing association ombudsmen to cover Northern Ireland.
80. It is thought that the volume of work would be insufficient to merit the appointment of a separate housing association ombudsman. As it is important that RHA tenants should have the same rights of redress as the Executive's tenants it was decided that the remit of the Northern Ireland Commissioner for Complaints should be extended to cover RHAs.

OVERVIEW

81. The Bill is divided into 4 Parts and has 150 clauses and 4 Schedules. Broadly speaking, the contents of the Bill fall into the following areas:

• Conduct of tenants

• Grants
• Powers of the Executive
• Rights of secure tenants
• Access to social housing
• Miscellaneous

COMMENTARY ON CLAUSES

Part I: Conduct of tenants

This Part deals with conduct by persons at residential premises let by the Executive or RHAs which causes nuisance or annoyance to others.

Chapter I: Introductory tenancies

This Chapter enables the Executive or a RHA to establish an introductory tenancy regime and makes provision as to the nature of an introductory tenancy. Such a tenancy takes effect for a trial period, during which the landlord may apply to a county court for an order to bring the tenancy to an end.

Clauses 1 to 3 are general provisions about introductory tenancies. Clause 1 provides that where the Executive or a RHA has elected to operate an introductory tenancy regime, tenancies granted shall have effect as introductory tenancies rather than secure tenancies (subsection (2)). Under Clause 2 the trial period for an introductory tenancy will normally last for one year (subsection (2)) unless certain events occur (subsection (5)). Clause 3 provides that certain licences to occupy a dwelling house can be treated as granted on an introductory basis.

Clauses 4 to 7 make provision relating to proceeding for possession of a dwelling-house let under an introductory tenancy. Clause 4 provides that to bring an introductory tenancy to an end the Executive or a RHA must obtain an order of possession from the Court (subsection (1)) and subject to notice of the proceedings being appropriately served on the tenant the court shall make such an order (subsection (2)). Clause 5 details information to be included in the notice of proceedings. Clause 6 sets out how a decision to seek an order for possession should be reviewed by the Executive or a RHA. Clause 7 provides that if a tenancy comes to an end or the trial period comes to an end while proceedings for possession are continuing the tenancy will remain an introductory tenancy (subsection (2)(a) and (b)).

Clauses 8 to 10 determine who is entitled to succeed to the tenancy when an introductory tenant dies. Clause 8 enables the tenant's spouse or a member of his family to succeed to the tenancy unless the tenant was himself a successor (as defined in Clause 9). Clause 10(2) sets out the order in which persons can succeed to the tenancy where there is more than one person so qualified.

Clause 11 prohibits an introductory tenancy from being assigned except in the cases listed in subsection (2).

Clause 12 provides that introductory tenants of the Executive can have repairs carried out in the same way that repairs are carried out for secure tenants.

Clauses 13 and 14 require the Executive and RHAs to provide information about the tenancies to introductory tenants and to consult them about housing matters which are likely to affect them.

Clauses 15 provides that county courts have jurisdiction to determine questions in connection with introductory tenancies and clause 16 enables the Department to make any necessary changes to existing legislation to take account of introductory tenancies.

Chapter II: Repossession &c. of dwelling-houses let under secure tenancies

This chapter extends the grounds under which the Executive or a RHA can seek repossession of a dwelling-house. It also requires that a notice of proceedings should normally be served on the tenant, sets out the information to be included in that notice and allows proceedings to begin immediately in cases of anti-social behaviour.

Clauses 17 to 19 extend the grounds for repossession. Clause 17 allows repossession where nuisance is caused by or to persons visiting a tenant. Clause 18 enables repossession where a partner has had to leave a dwelling-house because of violence, or fear of violence, by the other partner. Clause 19 enables repossession where the tenancy was awarded on the basis of a false statement by the tenant or by someone else on his behalf.

Clause 20 substitutes new Articles 28 and 28A in the Housing (Northern Ireland) Order 1983 which set out details relating to the notice of proceedings that have to be fulfilled before a court can entertain proceedings for possession.

Chapter III: Injunctions against anti-social behaviour

This chapter enables the Executive or a RHA to take court action against people involved in anti-social behaviour which affects their property.

Clause 21(1) empowers the courts to grant injunctions prohibiting persons from engaging in such behaviour and from entering or being found in the vicinity of residential premises belonging to the Executive or a RHA. Clause 21(3) provides that an injunction can only be granted where there is significant risk of harm.

Chapter IV: Supplementary provisions

This chapter provides for the interpretation of expressions used in Part I.

Part II: Grants &c. for renewal of private sector housing

This Part sets out provisions relating to grants that the Executive can pay towards the costs of private sector renewal.

Chapter I: The main grants

This chapter details the main grants and the conditions that have to be satisfied before they can be paid.

Clause 25 provides for a "renovation grant", a "common parts grant", a "disabled facilities grant" and a "HMO grant" to be available from the Executive. Clause 26 requires an application for a grant to be made in writing and supported by estimates and particulars in relation to the works to be carried out.

Clauses 27 to 29 set out general conditions that have to be met before a grant can be paid. Clause 27(1) requires an applicant to be aged 18 or over and clause 28(1) requires, except in relation to an application for a disabled facilities grant or a HMO grant for conversion of premises, the premises to be at least 10 years old. Clause 29 enables the Department to direct that certain descriptions of work will not qualify for grant aid.

Clauses 30 to 34 set out conditions applying to applications for renovation grants. Clause 30 provides that an application for a renovation grant can only be made by an owner, or someone proposing to become the owner, or a tenant of the premises. Clauses 31 and 32 require owners and tenants to provide certain certificates (which are detailed in the Clauses) in support of their applications. Clause 33 sets out the purposes for which a renovation grant can be approved by the Executive and clause 34 provisions governing that approval.

Clauses 35 to 39 set out conditions applying to applications for a common parts grant. Clause 35 provides that such an application will only be approved if at least three-quarters of the flats concerned are occupied by qualifying tenants. Subsection (3) enables the Department to amend this proportion. Clause 36 requires an applicant to have a duty to carry out the works or contribute towards their costs. Clause 37 requires applicants to certify their interest in the premises and that the required proportion of flats will be occupied by qualifying tenants. Clause 38 sets out the purposes for which a common parts grant can be approved by the Executive and clause 39 provisions governing that approval.

Clauses 40 to 45 set out conditions applying to applications for a disabled facilities grant. Clause 40 requires an application to be made by an owner, someone proposing to become the owner, or a tenant of the premises concerned. Clause 42 requires an owner to support his application by certifying that he has, or proposes to have, an owner's interest in the premises and intends that a disabled person will live there. Clause 43 requires a tenant to support his application by certifying that he (if he is disabled) or another disabled person will be living in the premises. Clause 44(1) sets out the purposes for which a disabled facilities grant must be approved (mandatory) and clause 44(2) provides that a grant may be approved for other purposes necessary to make the premises suitable for the accommodation, welfare or employment of a disabled occupant (discretionary). Clause 45 sets out provisions governing approval of applications by the Executive.

Clauses 46 to 49 set out conditions applying to applications for HMO grants. Clause 46 requires an applicant for a HMO grant to have, or propose to have an owner's interest in the property. Clause 47 requires an applicant to certify such an interest and that the premises will be let to persons not connected to him. Clause 48 sets out the purposes for which a HMO grant may be approved and clause 49 provisions governing that approval.

Clauses 50 to 54 contain restrictions relating to the level of grant aid available. Clause 50 provides that grants will not normally be approved where work has begun or been completed before the application is approved. Clause 51 makes provision for a means test to assess the contribution that an applicant should make towards a renovation or disabled facilities grant and enables the Department to make regulations in respect of that test. Clause 52 sets out issues to be taken into account in determining the amount of grant to be given to a landlord. Clause 53 requires the Executive, in determining applications for common parts grants, to apportion the costs of relevant works between applicants and details how that apportionment should be carried out. Clause 54 enables the Department to specify a maximum amount, or formula for calculating a maximum amount, of grant that can be paid.

Clause 55 requires the Executive to notify applicants, within 6 months, whether their application has been approved, detailing the works and costs taken into account and the amount of grant awarded or the reasons why an application has been refused. It also allows the Executive to redetermine the grant awarded if circumstances subsequently change (subsection (5)).

Clauses 56 to 64 set out conditions relating to the payment of grants. Clause 56 allows grants to be paid in full after the works have been completed or by instalments as the works progress. Clause 57 allows the Executive up to 12 months to pay a mandatory disabled facilities grant. Clause 58 requires works normally to be completed within 12 months of the date of approval. Clause 59 requires works to be carried out by a contractor acceptable to the Executive and for the Executive to publish the criteria by which it will determine whether a contractor is acceptable. Clause 60 provides for grants normally to be paid to the contractor but for the Executive, if it thinks it appropriate, to pay the grant to the applicant where he is not satisfied with the works. Clause 61 sets out the circumstances wherein a person is to be treated as ceasing to be entitled to various grants and allows the Executive to stop payment and demand repayment of any grant paid. Clause 62 enables the Executive to redetermine an application for a disabled facilities grant where the circumstances of the disabled occupant change before the grant is fully paid and where appropriate to demand repayment of grant already paid. Clause 63 sets out circumstances in which the Executive can redetermine grants e.g., where a grant was decided on inaccurate information or works not completed satisfactorily, and empowers the Executive to demand repayment of grant already paid. Clause 64 allows the Executive to demand repayment where it is subsequently discovered that the applicant was not entitled to the grant when the application was approved. Subsections (3) to (5) set out the circumstances in which a person is to be considered as not entitled to various grants for the purposes of this clause.

Clauses 65 to 76 set out grant conditions with respect to grants; enable the Executive to seek repayment where those conditions are not met; and specifies the grant period (normally 5 years) during which the grant conditions remain in force. Clauses 66 to 68 require repayment of a renovation grant, common parts grant or a HMO grant where the owner or landlord disposes of the premises before the end of the grant period. Clauses 69 and 70 require applicants for a renovation grant to comply with undertakings set out in an owner occupation certificate or a certificate of intended letting throughout the grant period. Clause 71 requires a HMO to remain available for residential accommodation throughout the grant period. Under clause 72 applicants will be expected to pursue other avenues of finance in appropriate cases, e.g. an insurance claim or a claim for damages, and to repay any grant paid out of any proceeds awarded. Clauses 74 and 75 define expressions used in previous sections and clause 76 provides for the grant conditions to cease to apply where the grant is repaid.

Clause 77 enables grant to be paid in respect of charges incurred or works carried out before an applicant died and clause 78 allows the Executive, where the applicant agrees and at his expense, to carry out works on his behalf. Clause 79 defines expressions used in chapter I.

Chapter II: Group repair schemes

This chapter empowers the Executive to prepare a group repair scheme, sets out the works that can be included in such a scheme and who can participate in a scheme.

Clauses 80 to 83 make general provisions about group repair schemes. Clause 80(1) enables the Executive to prepare a group scheme which can contain works to put the exterior of buildings into reasonable repair or to make the buildings structurally sound. Under Clause 81 a scheme must relate to qualifying buildings and subsection (2) enables the Department to set out in regulations the conditions that have to be satisfied for a building to be a qualifying building. Clause 82 details the types of work that can qualify for help under a group repair scheme and clause 83 requires the Executive to obtain the Department's approval to any group repair scheme.

Clauses 84 to 87 set out the persons who can participate in a group repair scheme and the contribution they may have to make towards the costs of the works. Clause 84 requires an applicant to have an owner's interest in the premises; be able to give consent, or have the consent of the occupier, to the works being carried out; and sets out who can participate as an assisted or unassisted participant. Under clause 85 works can normally only proceed provided the consent mentioned in clause 84 is given. Clause 86 requires the Executive to send each assisted participant notice of the date on which works were completed to its satisfaction. Clause 87 sets out the rates of contribution that participants may have to pay towards the costs of scheme works.

Clause 88 allows the Executive, with the approval of the Department, to vary a scheme before it is completed and subsection (4) requires the Executive to consult existing participants before it varies a scheme.

Clauses 89 to 93 set out further conditions governing participation in a group repair scheme. Under clause 89 the further conditions apply for a protected period (normally 5 years). Clause 90 makes it a condition that a participant will repay costs demanded by the Executive if he disposes of the premises. Clause 91 requires the property to be used (throughout the protected period) in accordance with any owner-occupation certificate, certificate of intended letting or certificate of future occupation provided in support of the application. Under clause 93 the conditions will no longer apply if the applicant refunds certain monies to the Executive.

Clause 94 empowers the Department to direct that any of the conditions need not apply to particular schemes. Clause 95 provides for the interpretation of expressions used in chapter II.

Chapter III: Home repair assistance

This chapter sets out other help that can be given towards repairs of a private sector home including a mobile home.

Clause 96 enables the Executive to provide a grant or materials to help with works which are outside the scope of grants available under chapter I and II and empowers the Department to make an order setting out the total amount or value of assistance that may be given. Clause 97 requires an applicant to be aged 18 or over; live in the dwelling as his only or main home; and be either an owner or tenant of the dwelling or have an exclusive right of residence. Clause 98 entitles persons living in a mobile home on its present site for more than 3 years to help under the home repair assistance scheme. Clause 99 enables the Department to make regulations relating to the processing of claims for home repair assistance and for extending or restricting the availability of the assistance.

Chapter IV: Deferred action notices

This chapter allows the Executive to serve deferred action notices; sets out procedures for appeals against, and review of, such notices and empowers the Executive to charge for enforcement action it takes in relation to unfit properties.

Clause 101 enables the Executive to serve a deferred action notice where a house is unfit for human habitation and the Executive is satisfied that deferred action is the best course of action. Subsection (2) describes the information to be included in such a notice. Clause 102 provides for the notice to be normally served on the owner of the house or building concerned but for a HMO it can be served on the person managing the HMO. Clause 103 makes provision regarding the bringing and processing of appeals against a deferred action notice and clause 104 requires the Executive to review a deferred notice within intervals of 2 years. Clause 105 requires the Executive when processing deferred action notices to have regard to guidance issued by the Department.

Clause 106 allows the Executive to make a reasonable charge for its costs in processing notices relating to unfit properties. Clause 107(2) details the persons from whom the charges can be recovered and clause 107(5) provides for the charge to remain a charge against the premises concerned until it is recovered. Clause 108 empowers the Department to make regulations setting out the form of a deferred action notice, a notice reviewing a deferred action notice or a demand for payment of charges under clause 106.

Chapter V: Supplementary provisions

Clause 110 amends the grants provisions in their application to religious denominations and charities. Subsections (2) and (4) remove the requirements to provide various certificates in support of applications and subsection (5) provides that an individual applying for home repair assistance in respect of the residence house of a religious denomination does not need to prove that he has an owner's interest or tenancy.

Clauses 111 to 116 provide for the interpretation of expressions used in Part II.

Clause 117 makes transitional provisions and savings in relation to applications for grants that are made under the current legislation but have not been approved or refused by the time the new provisions set out in Part II come into operation.

PART III: Miscellaneous amendments

This Part carries miscellaneous amendments to the Rent (Northern Ireland) Order 1978; the Housing (Northern Ireland) Orders 1981, 1983, 1988 and 1982; and the Commissioner for Complaints (Northern Ireland) Order 1996.

Chapter I: Amendments to the Rent (Northern Ireland) Order 1978

Clause 118 transfers the Department's responsibilities under the Rent Order for maintaining a register of rents to the Executive and introduces Schedule 1 which makes consequential amendments flowing from the transfer. Clause 119 empowers district councils to institute proceedings against landlords and their agents if they fail to provide a tenant with a proper rent book.

Chapter II: Amendments to the Housing (Northern Ireland) Order 1981

Clause 120 extends the term "member of a person's family" to include persons living together as husband and wife. Clause 121 amends the Order by making provision requiring the Executive to submit to the Department a scheme for allocating its housing accommodation to prospective tenants or occupiers (subsection (2)). It also provides for the Executive to allocate accommodation to "eligible persons" only and defines who is and who is not to be treated as an eligible person (subsection (5)).

Clause 122 inserts a new Article into the Order to enable the Executive to provide and manage caravan sites for Travellers. Under the new Article the Executive will be able to acquire land to be used, or already being used, as a caravan site (paragraph (2)); provide services and facilities at the sites (paragraph (3)) and make reasonable charges for the sites and services it provides (paragraph (5)). The clause also introduces Schedule 2 which provides for the transfer to the Executive of Travellers' caravan sites that have been provided by district councils and for the repeal of the legislation under which such sites were provided.

Clause 123 inserts a new Article empowering the Executive to acquire land with a view to improving the amenity of a housing area and to carry out improvements to the land.

Clause 124 repeals Chapter II of Part IV of the Order which contains spent provisions relating to the old home insulation grants.

Clause 125 amends the Order to allow the Executive to dispose of a group of houses to another landlord where a majority of tenants agree to the disposal.

Clause 126 increases from level 3 to level 4 on the standard scale, the penalty for obstructing an authorised officer in the performance of anything he is required or authorised to do under the Order.

Clause 127 amends the Order to require the Northern Ireland Housing Council to nominate such number of its members as the Department may direct for consideration for appointment as members of the Executive (subsection (3)). It also amends the Order to require the Minister to ensure that as far as practicable the membership of the Executive Board is representative of the community as a whole (subsection (4)).

Chapter III: Amendments to the Housing (Northern Ireland) Order 1983

Clause 128 introduces a new Article 3A into the Order enabling the Department to make a scheme providing for the sale or lease of RHA dwelling houses to secure tenants (paragraph (1) of the new Article) and requiring RHAs to comply with the scheme (new paragraph (4)).

Clause 129 introduces a new Article 34A requiring the Executive to prepare a scheme entitling its secure tenants to be compensated for improvements they have carried out to their home if their tenancy comes to an end (new paragraph (2)). New paragraph (3) sets out details of provisions to be included in the scheme including information about the types of improvement that qualify for compensation; the conditions under which compensation is not payable; and the amounts of compensation payable.

Clause 130 substitutes a new Article 38A requiring the Executive to prepare a scheme entitling its secure tenants to have qualifying repairs carried out at the Executive's expense (new paragraph (1)). New paragraph (2) sets out provisions to be included in the scheme such as the period during which the Executive should carry out repairs and how compensation will be calculated where repairs are not carried out within that period. The scheme will also specify a description of the repairs that qualify for compensation.

Clause 131 makes amendments concerning secure tenancies. Subsection (2) enables the Executive and RHAs to treat the tenancy of an employee who occupies a tenancy under his contract of employment as a secure tenancy. Subsection (3) provides that tenancies granted under the Executive's homelessness functions are not secure tenancies unless the Executive or RHA notifies the tenant otherwise. Subsection (4) provides for qualifying shorthold tenancies which are not to be regarded as secure tenancies.

Chapter IV: Amendments to the Housing (Northern Ireland) Order 1988

Clause 132 amends Article 3 of the Order to provide that a person is homeless if he has no accommodation available for his occupation in the United Kingdom or elsewhere.

Clause 133 inserts a new paragraph (3A) in Article 6 of the Order to provide that a person who becomes homeless or threatened with homelessness as a result of entering into an arrangement to enable him to become entitled to homelessness assistance, shall be treated as intentionally homeless.

Clause 134 inserts a new Article 7A in the Order which provides that a person from abroad is not eligible for assistance, other than advice, under the homelessness provisions if he is subject to immigration control and ineligible for such help by virtue of section 119 of the Immigration and Asylum Act 1999 or has been guilty of unacceptable behaviour. The new Article also empowers the Secretary of State to specify in regulations other descriptions of persons who are to be treated as persons from abroad who are ineligible for homelessness assistance. The clause also inserts a new Article 7B in the Order which requires the Secretary of State to supply information to the Executive to help it determine whether a person from abroad is entitled to homelessness assistance.

Clause 135 inserts a new Article 29A in the Order which provides for a scheme for the payment of grants to tenants who are forced to leave their homes as a consequence of violence or intimidation. Paragraph (1) of the new Article requires the Executive to submit a scheme for the payment of such grants to the Department. Under paragraph (3) the scheme shall set out the circumstances in which grants are to be payable; the method for calculating grants; and any conditions attached to the grant including in particular conditions for repayment. Paragraph (10) provides that the power for the Executive to operate such a scheme shall apply retrospectively.

Chapter V: Amendments to the Housing (Northern Ireland) Order 1992

Clause 136 inserts a new Article 6A in the Order which makes provision to allow the Department to enter into arrangements to dispose of its housing association loans portfolio (new paragraph (1)) and the scope of such arrangements is set out in new paragraph (2).

Clause 137 amends Article 8 of the Order to enable RHAs to fix rents charged in connection with an equity-sharing lease (currently a function of the Department) (subsection (2)) and to allow RHAs to increase rents on one occasion only during any financial year (subsection (4)).

Clause 138 inserts a new paragraph (7A) in Article 13 of the Order which removes the requirement for land acquired by a RHA for the purpose of granting an equity-sharing lease to be registered in the statutory charges register.

Clause 139 amends Article 74 of the Order to provide that repairs grant shall not be payable to owner-occupiers or tenants of the Crown, a department, the Executive or a RHA, or other descriptions of person prescribed by the Department (subsection (1)). It also sets the maximum amount of grant at £7,500 or such other amount as the Department may specify by order (subsection (2)).

Clauses 140 and 141 amend the Order to make provision relating to HMOs. Clause 140 inserts a new definition for a house in multiple occupation. Clause 141 introduces Schedule 3 which provides for a registration scheme for HMOs.

Clause 142 amends Article 104 of the Order to enable RHAs to serve certain documents by ordinary rather than registered post.

Chapter VI: Other amendments

Clause 143 amends Schedule 2 to the Commissioner for Complaints (Northern Ireland) Order 1996 to include RHAs in the list of bodies whose administrative functions are subject to investigation by the Commissioner for Complaints.

Clause 144 provides for the statutory provisions mentioned in Schedule 4 to be amended in accordance with that Schedule and empowers the Department to make other necessary amendments by order.

Part IV: Supplemental provisions

This Part makes supplementary provisions with respect to the Bill.

Clause 145 enables regulations and orders under the Bill to make any necessary incidental, supplementary or transitional provisions or savings and provides for those regulations and orders (except for commencement orders and regulations prescribing forms) to be subject to negative resolution. Clause 146 defines expressions used in the Bill and clause 147 defines who is to be treated as a member of another's family. Clause 148 introduces Schedule 5 which provides for repeals of statutory provisions. Clause 149 makes provision regarding the coming into operation of the Bill and clause 150 sets out the title of the Bill.

Schedule 1: Amendments relating to the transfer of duty to keep register of rents

This Schedule makes consequential amendments to the Rent (Northern Ireland) Order 1978 and the Housing (Northern Ireland) Order 1983 flowing from the transfer of responsibility for maintaining the register of rents from the Department to the Executive.

Schedule 2: Transfer to the Executive of Travellers' caravan sites

This Schedule makes provision for the transfer of existing Travellers' caravan sites from district councils to the Executive and the repeal of the legislation under which such sites were provided.

Schedule 3: Registration scheme for houses in multiple occupation

This Schedule inserts new Articles 75A to 75N in the Housing (Northern Ireland) Order 1992 which provide for the registration scheme that is to apply to houses in multiple occupation. Article 75B provides that the Executive shall prepare and submit such a scheme to the Department for approval. Under Article 75C the scheme will place a duty on specified persons to register houses under the scheme; provide for the registration to last for a renewable period of 5 years; specify information to be included in the register and require persons to provide that information; and require payment of a reasonable fee for registration. Article 75D enables the scheme to have control provisions preventing multiple occupation unless the house is registered and the number of households or persons does not exceed the number registered for it. Articles 75E to 75H set out control provisions applying to applications, decisions and appeals and Articles 75I and 75J control provisions concerning occupancy directions issued by the Executive. Article 75L makes it an offence for a person to contravene or fail to comply with a provision of the registration scheme and sets out the levels of fine applying to those offences. Article 75M sets out the steps that the Executive will take to inform the public about the registration scheme. Article 75N gives the Executive power to require relevant persons to provide information needed in connection with the registration of a house and makes it an offence for a person to fail to provide, or provide misleading, information.

Schedule 4: Minor and consequential amendments

This Schedule sets out a number of minor amendments to statutory provisions which are consequential to provisions included in the Bill.

Schedule 5: Repeals

This Schedule provides for repeals of various statutory provisions.

FINANCIAL EFFECTS OF THE BILL

82. It is expected that in the main any financial requirements arising from the proposals in the Bill will be met from within existing housing resources.
83. The proposals relating to anti-social behaviour, the private grants scheme, regulation of the private rented sector, right to repairs and compensation for improvements will not have any significant financial implications.
84. The costs of acquiring sites and providing services for Travellers will not be fully known until the Executive has completed a survey aimed at identifying Travellers' needs. However, the indications are that there may be funding implications in terms of the capital expenditure required to create any new sites and the revenue funding required to manage these and existing sites. In view of this, and the many pressures on the housing budget, it is likely that additional funding will be required if it is not possible to meet this responsibility from within existing resources.
85. It is not possible to accurately estimate the costs of the introduction of a statutory house sales scheme for RHAs as associations cannot anticipate the demand from tenants to purchase. However in the first three years of the voluntary sales scheme 250 units of general need stock were sold. While sales would inevitably result in associations receiving less rental income the costs will be contained within the housing budgets. Associations would be required to use the finance received from sales to provide new housing which would introduce more private finance into the housing programme and help reduce maintenance and improvement costs.
86. A registration scheme for HMOs would have staff resource implications for the Executive however these would be off-set by the fees charged by the Executive to landlords.
87. The proposal to extend the remit of the Commissioner for Complaints to cover registered housing associations should have no financial implications for the Department. It is unlikely that the broader remit would create significant resource issues for the Commissioner.
88. At present repayment of loans (both interest and capital) under the Housing Association loans portfolio amounts to approximately £4.6m each year. These receipts are used to subsidise the new build programme. While the sale of the loans portfolio would bring in an extra receipt in-year there would in subsequent years be a reduction of £4.6m in the funding available for the new build programme and the Department would have to bid for additional funding. If the bids were unsuccessful it would mean a reduction in the number of houses being built and/or a reduction in the amount of Housing Association grant with a knock-on effect on rents.

EFFECTS ON EQUAL OPPORTUNITY

89. An equality impact assessment in relation to the proposed private sector grants scheme was issued for consultation. This indicated that the proposals did not impact adversely on the equality of opportunity of section 75 categories. An equality impact assessment concerning the provision of accommodation for Travellers will issue shortly. Preliminary consideration of the proposals indicates that the proposals promote equality of opportunity, whilst respecting the Travellers' lifestyle and that better living conditions should also lead to an improvement in other areas such as health and education.
90. Equality screening of the remaining provisions in the Bill has indicated that the proposals do not have any significant implications concerning equality of opportunity between any of the section 75 categories. Although the Bill removes a current requirement that the membership of the Executive Board should include at least one woman that provision is replaced by a requirement for the Minister to ensure that as far as practicable the Board is representative of the community as a whole.
91. Copies of the equality impact assessment in relation to the private sector grants scheme and the Equality screening exercise for other provisions in the Bill are available on the Department's website at www.dsdni.gov.uk. In due course the equality impact assessment concerning Traveller accommodation will also be available on the website.

HUMAN RIGHTS ISSUES

92. The Department has given careful consideration to the Bill proposals in the light of its obligations under human rights legislation. Where human rights issues appear to be involved - e.g. in the provisions relating to conduct of tenants, Travellers, eligibility for social housing and homelessness - the Department considers that the proposals represent a balanced and proportionate response to pressing social needs and to competing rights and responsibilities.

SUMMARY OF THE REGULATORY APPRAISAL

93. The introduction of a registration scheme for HMOs and charges for registration would have an impact on landlords of such properties and increase their administration costs.

SECRETARY OF STATE'S CONSENT

94. The Bill introduces some new offences and penalties, the creation of which is a reserved matter under Schedule 3 to the Northern Ireland Act 1998 and also makes housing provision in relation to persons subject to immigration control, an excepted matter under Schedule 2 to that Act which is ancillary to other provisions in the Bill. The Secretary of State has consented under section 10(3)(b) of the Northern Ireland Act 1998 to the Assembly considering this Bill.

LEGISLATIVE COMPETENCE

95. At Introduction the Minister for Social Development had made the following statement under section 9 of the Northern Ireland Act 1998:

    "In my view the Housing Bill would be within the legislative competence of the Northern Ireland Assembly."

GLOSSARY

In this Memorandum -

"common parts grant" means a grant relating to the improvement or repair of the common parts of a building;

"the Department" means the Department for Social Development;

"disabled facilities grant" means a grant for the provision of facilities for a disabled person in a dwelling or the common parts of a building containing one or more flats;

"the Executive" means the Northern Ireland Housing Executive;

"HMO" means a house in multiple occupation;

"HMO grant" means a grant for the improvement or repair of a HMO or the provision of a HMO by the conversion of a house or other building;

"a LSVT" means a large scale voluntary transfer of Executive property to another landlord;

"a RHA" means a registered housing association; and

"a renovation grant" means a grant relating to the improvement or repair of a dwelling or the provision of dwellings by the conversion of a house or other building.