1 Tenant Led Stock Transfer – will new regulations open doors for TMOs? Board update Tom Hopkins FCIH Managing Director.

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Presentation transcript:

1 Tenant Led Stock Transfer – will new regulations open doors for TMOs? Board update Tom Hopkins FCIH Managing Director

Right to Transfer (from a Local Authority Landlord) Regulations Issued on 14 th March 2012 Consultation period closed on 23 rd May 2012 Government keen to promote stock transfer which:-  Good value for money  Lever additional investment levels DCLG will offer proposals for a new transfer proposals imminently Make it easier for tenants to take the lead in stock transfer Places a requirement on Councils to co-operate with tenants who wish to transfer to an alternate landlord

Conditions for tenant led stock transfer Tenant led stock transfer proposals will be subject to:-  Independent Assessment  Support from tenants affected by the proposal  Local Authority not being able to prove a wider negative impact where there are wider plans for regeneration or a disproportionately detrimental impact on an authority’s wider housing services

How does a Council stop the tenant led transfer process? The Council has to seek permission from the Secretary of State to stop the process based on evidence of wider negative impact upon its housing services The Council may refer the process to an arbitrator

How does the Right To Transfer work? Initial Stage Feasibility Stage Development Stage

Initial Stage The tenant group must:-  Apply for the appointment of an Independent Approved Assessor  Have a constitution with unrestricted membership  Represent substantive section of the community (i.e. 20%)  Demonstrate tenant support for transfer and evidence notification to all tenants of the proposal  Issue a proposal notice to the Council for properties in excess of 25 council tenancies  Define a geographically distinct and coherent area  Pass a competency test by Independent Approved Assessor  Once the notice is served the Council can stop the process by applying to the Secretary of State

What happens if you are not competent to proceed? You can reapply again once more time You can only apply to the Approved Assessor Service for a competency test twice in any twelve month period

Timescales Upon serving a notice the Council must respond within 28 days to :-  Accept the notice  Reject the notice where the notice is technically incorrect  Notify the tenant group of their decision to apply to the Secretary of State to stop the process within a further 21 days period  Notify other ‘ interested parties’ If the Council does nothing the notice is accepted

Feasibility Stage Review of the area of benefit Agreement between tenant group and Council on timetable Council must offer ‘reasonable facilities’ to the group Co-operate by offering sufficient information to complete the study Agree the options for transfer (i.e. straight transfer to existing Housing Association, group structure or stand alone Housing Association) and the Feasibility of each option Identifies active support for transfer from the tenant group and the majority of tenants affected Study concludes with the Final Report notice going to the Council

What’s in the Feasibility Final Report? Minutes of the tenants group committee decision to proceed to transfer Minutes of a general meeting where a positive vote on transfer has been taken in accordance with the constitution Statement from the tenant group which confirms that the majority of tenants support the proposal

Timescales Within 28 days of receiving the Feasibility Notice the Council must:-  Accept the notice  Reject the notice where the notice is technically incorrect  Notify the tenant group of their decision to apply to the Secretary of State to stop the process within a further 21 days period  If the Council does nothing the notice is accepted

Development Stage The Council has to:-  Agree a timetable for the development study  Continue to provide reasonable facilities  Notify ‘interested parties’  Notify the Secretary of State of the plan to transfer stock  consult with tenants (and leaseholders) by ballot on the transfer proposal The Development Study must allow:-  The agreement for the transfer option(s)  The agreement of the ‘Offer Document’  The agreement of a ‘Stage 2 notice’ (i.e. changes to the Offer)  Opportunity to formally consult tenants on the transfer proposal by ballot

Will new regulations open doors for TMOs?

Implications & Questions DCLG has offered ‘support’ to assist tenant led transfer  Is this fees, dowry or TEP???? The stock condition survey needs to be carried out and stock transfer valuation and business plan needs to be created. How much will this cost? Who pays the fees? What’s your Councils current position? Will the CLG allow TMOS to transfer their estates to small independent Registered Providers?