Housing (Miscellaneous Provisions) Act 2009

(b) the costs of the proposed measures referred to in subsection (2) and the financial resources that are available or are likely to be available for the period of the homelessness action plan to the housing authority or housing authorities concerned, the Health Service Executive or any specified body, as the case may be, for the purposes of undertaking those measures and the need to ensure the most beneficial, effective and efficient use of such resources,

(c) such policies and objectives for the time being of the Government or the Minister in so far as they may affect or relate to the provision of services to homeless persons, and

(d) such other matters as the Minister may specify in a direction given to the housing authority under subsection (4), including (except in the case of the first homelessness action plan) a review of progress made in the implementation of the homelessness action plan during the period of the previous plan.

(4) (a) The Minister may, from time to time, give directions in writing to a housing authority for the purpose of either or both of the following—

(i) providing guidance as to the form and content of a homelessness action plan, and

(ii) specifying the period for which such a plan is to remain in force, which period shall not in any case be less than 3 years.

(b) The housing authority shall comply with any directions given under paragraph (a).

38. Homelessness consultative forum.

38.— (1) Subject to subsections (3) and (4), as soon as practicable after the coming into operation of this Chapter and having regard to section 37 (1), a housing authority shall establish a body to be known as the homelessness consultative forum and shall appoint its members.

(2) The functions of a homelessness consultative forum are to provide information, views, advice or reports, as appropriate, to the management group in relation to—

(a) homelessness and the operation and implementation of the homelessness action plan in the administrative area concerned,

(b) the provisions of the draft homelessness action plan, and

(c) any proposed modification of the draft homelessness action plan pursuant to section 40 (6).

(3) Where either or both of the conditions specified in subsection (4) (a) are met or where the Minister so directs pursuant to subsection (4) (b), a housing authority shall enter into an arrangement with any other housing authority whose administrative area adjoins the administrative area of the housing authority concerned or with any other housing authority, as appropriate, to establish a joint homelessness consultative forum which shall perform the functions specified in subsection (2)in relation to the administrative areas of the housing authorities which are parties to the arrangement.

(4) (a) The conditions referred to in subsection (3) are that the housing authority considers that—

(i) a joint homelessness consultative forum would further the objectives of a homelessness action plan because of the extent or nature of homelessness in its administrative area, or

(ii) a joint homelessness consultative forum and the sharing of administrative services relating thereto would ensure the most beneficial, effective and efficient use of resources.

(b) The Minister may, where he or she considers it appropriate, direct housing authorities to enter into an arrangement pursuant tosubsection (3) and the housing authorities shall comply with any such direction.

(5) In the case of an arrangement pursuant to subsection (3) for the establishment of a joint homelessness consultative forum, the housing authorities concerned shall, by agreement in writing, appoint one housing authority (in this Chapter referred to as the “responsible housing authority”) for the purposes of the performance, on behalf of the housing authorities concerned, of their functions under this Chapter.

(6) A housing authority or, in the case of a joint homelessness consultative forum, the responsible housing authority, in accordance with such directions as the Minister may give under section 41, shall appoint a chairperson of the homelessness consultative forum or joint homelessness consultative forum, as the case may be, from the membership thereof.

(7) The chairperson appointed under subsection (6) shall also be the chairperson of the management group.

(8) The membership of the homelessness consultative forum shall comprise the following persons:

(a) one or more than one employee of the housing authority or, in the case of a joint homelessness consultative forum, one or more than one employee of each of the housing authorities concerned nominated by the housing authority or housing authorities concerned, as the case may be;

(b) one or more than one employee of the Health Service Executive nominated by the Health Service Executive;

(c) subject to such directions as the Minister may give under section 41 (1) (a), persons nominated by specified bodies, and

(d) subject to subsection (9), persons nominated by—

(i) approved bodies, and

(ii) any other bodies,

providing services to homeless persons in the administrative area or, in the case of a joint homelessness consultative forum, administrative areas concerned or the performance of whose functions may affect or relate to the provision of such services, as the housing authority or responsible authority, as the case may be, consider appropriate in accordance with such directions as the Minister may give under section 41.

(9) The number of persons referred to in subsection (8) (d) shall not exceed one half of the membership of the homelessness consultative forum or joint homelessness consultative forum, as the case may be.

(10) A homelessness consultative forum or joint homelessness consultative forum, as the case may be, shall regulate, by standing orders or otherwise, the meetings and proceedings of the forum.

(11) The housing authority or, in the case of a joint homelessness consultative forum, the housing authorities concerned, may provide such services and support relating to the operation of the homelessness consultative forum or joint homelessness consultative forum, as the case may be, as is considered necessary by the housing authority or housing authorities, in accordance with such directions as the Minister may give under section 41.

(12) The proceedings of a homelessness consultative forum or joint homelessness consultative forum, as the case may be, shall not be invalidated by any vacancies among the membership.

39. Management group.

39.— (1) The housing authority or responsible housing authority, as the case may be, shall appoint a group (in this Chapter referred to as a “ management group ”) consisting of certain members of the homelessness consultative forum or joint homelessness consultative forum, as the case may be, being such person or persons referred to in section 38 (8) (a), (b) and (c) as the housing authority or responsible authority, as the case may be, considers appropriate in accordance with such directions as the Minister may give under section 41.

(2) The management group may regulate, by standing orders or otherwise, its meetings and proceedings.

(3) The housing authority or responsible housing authority, as the case may be, may provide such services and support relating to the operation of the management group, as such housing authority considers appropriate, in accordance with such directions as the Minister may give under section 41.

(4) The management group—

(a) shall perform the functions conferred on it by this Chapter in relation to the preparation and modification of the draft homelessness action plan and the review of the homelessness action plan, and

(b) may make recommendations to the housing authority or, in the case of a joint homelessness consultative forum, the housing authorities concerned, to the Health Service Executive or to any specified body, in relation to all or any of the following:

(i) services required to address homelessness in the administrative area or administrative areas concerned;

(ii) funding for such services taking into account the financial resources that are available or are likely to be available;

(iii) the operation of the homelessness action plan having regard to any information, views, advice or reports provided by the homelessness consultative forum or joint homelessness consultative forum, as the case may be.

(5) The proceedings of a management group shall not be invalidated by any vacancies among the membership.

40. Preparation of draft plan and making of plan.

40.— (1) The F59[chief executive] of a housing authority or of a responsible housing authority, as the case may be, not later than 6 weeks after the coming into operation of this Chapter, shall send a request, in writing, to the chairperson of the management group to arrange for the preparation of a draft homelessness action plan in respect of the administrative area concerned or, in the case of a joint homelessness consultative forum, the administrative areas concerned.

(2) For the purposes of preparing a draft homelessness action plan under this section and before submission of the draft homelessness action plan pursuant to subsection (3), the management group—

(a) F59[shall consult the other members of the homelessness consultative forum or joint homelessness consultative forum, as the case may be, and]

and

(b) may consult any housing authority whose administrative area adjoins the administrative area of the housing authority concerned or, in the case of a joint homelessness consultative forum, the administrative areas of the housing authorities concerned.

(3) Not later than 10 weeks from the date on which the request referred to in subsection (1)is sent, the management group shall approve and submit the draft homelessness action plan to the housing authority or, in the case of a joint homelessness consultative forum, each of the housing authorities concerned for adoption.

(4) Subject to subsections (5) to (8), the housing authority, or, in the case of a joint homelessness consultative forum, each of the housing authorities concerned, shall adopt the homelessness action plan within 6 weeks of receipt of the draft homelessness action plan, with or without modification.

(5) Where any part of a draft homelessness action plan relates to the functions of the Health Service Executive or of a specified body, the housing authority, or responsible housing authority, as the case may be, shall send a request in writing to the chairperson of the management group to seek its approval to any proposed modification pursuant to subsection (4)in respect of such part of the draft plan.

(6) The management group, not later than 3 weeks from the date on which the request referred to in subsection (5) is sent, following consultation with the other members of the homelessness consultative forum, or joint homelessness consultative forum, as the case may be, shall—

(a) accept or reject the proposed modification referred to in subsection (5), and

(b) notify, in writing, the housing authority or responsible housing authority, as the case may be, of the decision and the reasons for that decision.

(7) The housing authority or, in the case of a joint homelessness consultative forum, each of the housing authorities concerned, shall adopt the homelessness action plan not later than 6 weeks from the date on which the notification under subsection (6) is sent, with the modification, in a case where it is accepted by the management group, or without the modification, in a case where it is rejected.

(8) Where the housing authority or, in the case of a joint homelessness consultative forum, any of the housing authorities concerned, fail to adopt the homelessness action plan in accordance with this section, the F59[chief executive] of each housing authority, as appropriate, shall, by order, as soon as practicable and in any event not later than the end of the period referred to in section 37 (1), adopt the draft homelessness action plan in accordance with subsection (4) or (7), as appropriate.

(9) The housing authority or responsible housing authority, as the case may be, shall—

(a) give a copy of the homelessness action plan to the Minister and each member of the homelessness consultative forum or joint homelessness consultative forum, as the case may be, as soon as practicable after it is adopted,

(b) make the homelessness action plan available for inspection on request by any person, without charge, at its offices and such other places as it considers appropriate, during normal office hours,

(c) on request by any person, provide a copy of the homelessness action plan at a price not exceeding the reasonable cost of reproduction, and

(d) publish and maintain a copy of the homelessness action plan on the Internet for the period of the plan.

(10) A housing authority or responsible housing authority, as the case may be, may, at any time, and shall, in any case, not less than 8 months before the end of the period of the homelessness action plan decide to arrange for—

(a) the review and, where appropriate, amendment of the homelessness action plan, or

(b) the preparation and adoption of a new homelessness action plan.

(11) Where a housing authority or responsible housing authority, as the case may be, makes a decision for the purposes of subsection (10), the manager of the housing authority or responsible housing authority, as the case may be, shall send a request in writing to the chairperson of the management group to arrange for the review of the homelessness action plan or the preparation of a new homelessness action plan and subsections (2) to (9) shall apply accordingly with any necessary modifications.

(12) Subject to subsection (8), the adoption or amendment of a homelessness action plan is a reserved function.

(13) (a) Notwithstanding section 37 (1), where, before the coming into operation of this Chapter, a housing authority has adopted a plan which meets the conditions specified in paragraph (b), then such a plan is deemed to be a homelessness action plan duly adopted by the housing authority for the purposes of this Chapter.

(b) The conditions referred to in paragraph (a) are that the plan—

(i) specifies the measures proposed to be undertaken to achieve the objectives of a homelessness action plan specified in section 37 (2), and

(ii) does not expire before the end of one year after the date of coming into operation of this Chapter.

41. Ministerial directions.

41.— (1) The Minister may give directions to a housing authority or responsible housing authority, as the case may be, in relation to all or any of the following:

(a) the number of members and composition, including an appropriate gender balance, of a homelessness consultative forum or joint homelessness consultative forum, as the case may be;

(b) the number of members and composition of a management group;

(c) the period of appointment of the members of a homelessness consultative forum or joint homelessness consultative forum, as the case may be, and the management group;

(d) the terms and conditions of appointment (including terms and conditions relating to removal, resignation, the filling of casual vacancies and re-appointment) of the members of a homelessness consultative forum or joint homelessness consultative forum, as the case may be, and the management group;

(e) the appointment of the chairperson of a homelessness consultative forum or of the joint homelessness consultative forum, as the case may be;

(f) services and support relating to the operation of the homelessness consultative forum, joint homelessness consultative forum or management group, as the case may be.

(2) A housing authority or responsible housing authority, as the case may be, shall, in the performance of its functions under this Chapter, comply with any directions given by the Minister under subsection (1).

42. Power of Minister to prescribe body as specified body.

42.— The Minister may prescribe any body which provides services to address homelessness or the performance of whose functions may affect or relate to the provision of such services to be a specified body and any body so prescribed shall be a specified body for the purposes of this Chapter.

PART 3 INCREMENTAL PURCHASE ARRANGEMENTS

43. Interpretation (Part 3).

43.— (1) In this Part—

“charging order” has the meaning given to it by section 46;

“charged period” has the meaning given to it by section 46;

“charged share” has the meaning given to it by section 46;

“eligible household” means—

F60[(a) a household assessed by a housing authority undersection 20as being qualified for social housing support, which has been allocated a dwelling to which this Part applies in accordance with an allocation scheme, and which applies to purchase the dwelling under this Part within 5 years from the date of such allocation, or]

(b) subject to subsection (2), a household referred to in section 22 (5) (c) which has been allocated a dwelling to which this Part applies in accordance with an allocation scheme;

“incremental purchase arrangement” has the meaning given to it by section 45;

“incremental release” has the meaning given to it by section 46;

“market value”, in relation to a dwelling to which this Part applies, means the price for which the unencumbered fee simple of the dwelling might reasonably be expected to be sold on the open market and, in a case where the site for the dwelling was provided to the housing authority by the eligible household for a nominal sum, excludes an amount equal to the excess (if any) of the market value of the site over such sum;

“net market value” means the market value reduced by an allowance equal to the amount of the market value attributable to material improvements;

“purchase money”, in relation to a dwelling to which this Part applies, means the monetary value of the proportion of the purchase price of the dwelling fixed by the housing authority, in accordance with regulations made under section 49for the purposes of calculating the purchase money, as the proportion that is required to be paid to purchase the dwelling;

“purchase price”, in relation to a dwelling to which this Part applies, means the price of the dwelling determined by a housing authority in accordance with regulations made under section 49 for the purposes of calculating the purchase price;

“purchaser” means a person who purchases a dwelling under an incremental purchase arrangement and includes a person in whom there subsequently becomes vested (other than for valuable consideration) the interest of the purchaser or his or her successor in title and the personal representative of that person or successor in title;

“transfer order” has the meaning given to it by section 45.

F61[(2) (a) A housing authority shall not proceed with the sale of a dwelling under an incremental purchase arrangement to a household referred to inparagraph (b)of the definition of "eligible household" insubsection (1)where—

(i) at any time during the 3 years immediately before applying to the authority to purchase a dwelling under this Part, the household or a household member was in arrears of rent, rent contributions, charges, fees or any other moneys due and owing to a housing authority or an approved body for an accumulated period of 12 weeks or more in respect of a dwelling or site to whichChapter 3ofPart 2of theAct of 2009relates, and

(ii) subject toparagraph (b), the household or the member concerned has not entered into rescheduling arrangements with the housing authority or approved body concerned for the payment of such arrears, or, having entered into such arrangements, has not, in the opinion of the authority or body, substantially complied with their terms.

(b) In applyingparagraph (a)(ii), a housing authority shall disregard the case where the authority or approved body concerned is satisfied that the failure of the household or the member concerned to substantially comply with the terms of the rescheduling arrangements was due to circumstances outside the control of such household or member.]

44. Application of Part 3 to certain dwellings.

44.— (1) Subject to subsection (2), this Part applies to a dwelling—

(a) provided by a housing authority under the Housing Acts 1966 to 2009 or by an approved body with the assistance of a housing authority under section 6 of the Act of 1992 or provided under Part V of the Planning and Development Act 2000—

(i) constructed after the coming into operation of this Part, or the construction of which began before the coming into operation of this Part and which is completed after such coming into operation and which is allocated to an eligible household in accordance with an allocation scheme within one year of its completion, or

(ii) which has not previously been let in accordance with an allocation scheme and is vacant on the coming into operation of this Part,

and

(b) and which is of a class of dwelling prescribed for the purposes of this Part as being a class of dwelling to which an incremental purchase arrangement may apply.

(2) (a) This Part does not apply to a dwelling referred to in subsection (1) which is—

(i) an apartment in a designated apartment complex, or

(ii) a dwelling which is a separate and self-contained apartment in a premises, divided into 2 or more apartments, which requires arrangements for the upkeep and management of all or any part of the common areas, structures, works or services other than by the purchaser.

(b) For the purposes of paragraph (a) (i), “apartment” and “designated apartment complex” have the same meaning as they have in section 50.

45. Sale of dwelling by incremental purchase arrangement.

45.— (1) Subject to and in accordance with this Part and the Housing Acts 1966 to 2009 and subject to such regulations as may be made under section 49, a housing authority or an approved body may enter into an arrangement (in this Part referred to as an “ incremental pur chase arrangement ”) with an eligible household whereby, in consideration of the receipt by the housing authority of the purchase money, the housing authority may sell a dwelling to which this Part applies, in the state of repair and condition existing on the date of sale, to the eligible household, by means of an order (in this Part referred to as a “ transfer order ”), in the prescribed form, which shall be expressed and shall operate to vest, on the date specified in the order, the interest specified in the order, in accordance with the terms and conditions specified in subsection (2) and the terms and conditions of a charging order.

(2) The terms and conditions referred to in subsection (1) shall include the following:

(a) that where the purchaser sells the dwelling to a person other than a housing authority or approved body during the charged period, the purchaser shall pay to the authority or approved body, as appropriate, an amount calculated in accordance with section 48 (5) or (6);

(b) that the dwelling shall, during the charged period, unless the housing authority or approved body, as appropriate, gives its prior written consent, be occupied as the normal place of residence of the purchaser or of a member of the purchaser’s household;

(c) that the dwelling or any part thereof shall not, during the charged period, without the prior written consent of the housing authority or approved body, as the case may be, be sold, assigned, let or sublet or otherwise disposed of or mortgaged, charged or alienated, otherwise than by devise or operation of law;

(d) F63[…]

(e) terms and conditions relating to—

(i) maintenance of the dwelling by the purchaser, and

(ii) the provision and maintenance of adequate property insurance by the purchaser in respect of the dwelling;

(f) such other terms and conditions relating to the sale of the dwelling as may be prescribed for the purposes of a transfer order.

(3) Save as provided for by any other enactment or regulations made thereunder, the sale of a dwelling to which this Part applies under an incremental purchase arrangement shall not imply any warranty on the part of the housing authority or approved body concerned in relation to the state of repair or condition of the dwelling or its fitness for human habitation.

(4) An approved body may, with the consent of the housing authority and subject to such regulations as may be made under section 49, reserve a number of dwellings for sale under this Part, being dwellings provided with the assistance of a housing authority under section 6 of the Act of 1992.

(5) Section 211(2) of the Planning and Development Act 2000 and section 183 of the Local Government Act 2001 shall not apply to the sale of a dwelling to an eligible household under this section.

46. Charging order.

46.— (1) As soon as practicable after a dwelling to which this Part applies is sold under an incremental purchase arrangement, the housing authority or approved body, as appropriate, shall, subject to such regulations as may be made under section 49, shall make an order (in this Part referred to as a “charging order”), in the prescribed form, charging the dwelling in the terms specified in this section for the period specified in the order (in this Part referred to as the “charged period” ).

(2) The charging order shall create a charge in favour of the housing authority or approved body concerned in respect of an undivided percentage share (in this Part referred to as the “charged share”), calculated in accordance with subsection (3), in the dwelling which charged share shall be reduced in accordance with subsection (4).

(3) The charged share is calculated in accordance with the following formula:

Y x 100

Z

where—

(a) Y is the difference between the purchase price of the dwelling at the time of sale to the purchaser and the purchase money, and

(b) Z is the purchase price of the dwelling at the time of sale to the purchaser.

(4) (a) Subject to paragraph (b) and section 47, the charged share shall be reduced, in equal proportions (referred to in this section as “incremental releases”) applied annually, on the anniversary of the date of the transfer order, in respect of each complete year after that date during which a purchaser or a member of his or her household has been in occupation of the dwelling as his or her normal place of residence, until the earlier of—

(i) subject to section 48, the first resale of the dwelling, or

(ii) subject to section 47, the expiration of the charged period.

(b) The reduction of the charged share for the period of 5 years from the date of the transfer order shall be cumulative and shall not apply until the expiration of that period, provided the purchaser or a member of his or her household has been in occupation of the dwelling as his or her normal place of residence for that period.

(5) The housing authority or approved body, as the case may be, shall, at any time where requested by the purchaser, give a statement in writing, in the prescribed form, to the purchaser indicating the accumulated amount of incremental releases that have been applied under the charging order.

(6) A charging order shall be deemed to be a mortgage made by deed within the meaning of the Conveyancing Acts 1881 to 1911 and to have been executed, at the time of the sale of the dwelling, in favour of the housing authority or approved body, as appropriate, for a charge in the terms provided for in this section.

(7) Accordingly, the housing authority or approved body shall, as on and from the making of the charging order—

(a) be deemed to be a mortgagee of the dwelling for the purposes of the Conveyancing Acts 1881 to 1911, and

(b) have, in relation to the charge referred to in subsection (6), all the powers conferred by those Acts on mortgagees under mortgages made by deed.

(8) Where a housing authority or an approved body makes a charging order, it shall, as soon as practicable thereafter, cause the order to be registered in the Registry of Deeds or the Land Registry, as appropriate, and it shall be a sufficient description of the charge in respect of which the order is being registered to state that charge to be the charge referred to in section 46 (2) of the Housing (Miscellaneous Provisions) Act 2009.

(9) A charging order affecting a dwelling which is registered land within the meaning of the Registration of Title Act 1964 shall be registrable as a burden affecting such land whether the person named in the order as the owner of the land is or is not registered under the said Act as the owner of the land.

(10) A housing authority or an approved body may, subject to subsection (11), enter into an agreement with a holder of a licence under the Central Bank Act 1971, a building society or other financial institution that a charge proposed to be created by it by a charging order shall have a priority, as against a mortgage or charge proposed to be created in favour of that holder, society or institution, that is different from the priority the charge would otherwise have if this subsection had not been enacted.

(11) A housing authority or an approved body may only enter into an agreement referred to in subsection (10) if it considers that the agreement will—

(a) enable an eligible household to whom it is proposing to sell a dwelling to which this Part applies under an incremental purchase arrangement to obtain an advance of moneys from the holder, society or institution referred to in subsection (10) for the purposes of purchasing the dwelling, or

(b) enable a purchaser—

(i) to refinance an existing advance of moneys from the holder, society or institution referred to in subsection (10), or

(ii) to obtain a further advance of moneys from the holder, society or institution referred to in subsection (10), for any purpose.

(12) Any amount that becomes payable to a housing authority or an approved body under section 47 or 48may, without prejudice to any other power in that behalf, be recovered by the authority or approved body, as the case may be, from the person concerned as a simple contract debt in any court of competent jurisdiction.

(13) For the avoidance of doubt, neither a charging order nor a charge that arises under it shall be regarded as a conveyance for the purposes of section 3 of the Family Home Protection Act 1976.

(14) (a) On the occurrence of the earlier of the events specified in subsection (4)(a) and subject to the terms and conditions of the transfer order and of the charging order having been complied with, the housing authority or approved body, as the case may be, shall, where requested to do so by the purchaser, execute a deed of discharge in respect of the charging order.

(b) The housing authority or approved body, as the case may be, shall be liable for any expenses incurred in the execution and registration of a deed of discharge but shall not otherwise be liable for any expenses incurred by a purchaser under this section or under section 47 or 48.

47. Suspension of reduction of charged share.

47.— (1) A housing authority or approved body, as the case may be, may suspend the reduction of the charged share provided for under section 46 in respect of any year ending on the anniversary of the transfer order, where the purchaser fails to comply with any of the terms and conditions of the transfer order.

(2) Where the housing authority or approved body suspends the reduction of the charged share under subsection (1), the charged share on the dwelling shall be calculated in accordance with the following formula:

Y x 100—R

Z

where—

(a) Y is the difference between the purchase price of the dwelling at the time of sale to the purchaser and the purchase money,

(b) Z is the purchase price of the dwelling at the time of sale to the purchaser, and

(c) R is the portion of the charged share that has been released in accordance with this subsection.

(3) (a) Where a housing authority or approved body has suspended the reduction of the charged share under subsection (1), the housing authority or approved body, as appropriate, shall, as soon as practicable thereafter, notify the purchaser in writing of the suspension and the reasons for the suspension.

(b) The housing authority or approved body, as the case may be, shall, on the expiration of the charged period, give a statement to the purchaser in writing, in the prescribed form, indicating the amount of the charge outstanding under the charging order on the date of expiration of the charged period, which amount shall be expressed as a percentage of the market value of the dwelling, equivalent to the charged share of the housing authority or approved body, as appropriate, in the dwelling on that date calculated in accordance with subsection (2).

(4) (a) The purchaser shall, within 2 months of receipt of the statement referred to in subsection (3), pay to the housing authority the amount set out in the statement.

(b) Where the purchaser fails to pay the amount referred to in paragraph (a), section 46 (12) applies.

(5) For the purposes of this section, “ market value ” means the price for which a dwelling might reasonably be expected to be sold on the date of expiration of the charged period, in its existing state of repair and condition and not subject to the conditions specified in section 45 (2) or to a charging order.

(6) (a) For the purposes of this section, the market value of a dwelling shall be determined by the housing authority or approved body, as appropriate, or, where the purchaser does not agree with the market value so determined, by an independent valuer nominated by the purchaser from a panel of suitably qualified persons, established by the housing authority, who are of a class or description prescribed under section 49.

(b) The housing authority or approved body shall not be liable for any expenses incurred by the purchaser under paragraph (a).

48. Control on resale of dwelling sold under an incremental purchase arrangement.

48.— (1) Where a purchaser proposes to sell a dwelling which is subject to a charging order which has not been discharged, he or she shall give prior written notice to the housing authority or approved body, as appropriate, in accordance with the terms and conditions specified in the transfer order.

(2) Upon receipt of a notice referred to in subsection (1), the housing authority or approved body may, subject to subsection (4), purchase the dwelling for a sum equivalent to its market value, reduced by an amount equal to that proportion of the market value of the dwelling corresponding to the charged share in the dwelling on the date of resale.

(3) Without prejudice to any other power in that behalf, a housing authority or an approved body, as appropriate, may refuse to consent to the sale to any person of the dwelling where the housing authority or an approved body, as the case may be, is of the opinion that—

(a) the proposed sale price is less than the market value,

(b) the said person is or was engaged in anti-social behaviour or the sale would not be in the interest of good estate management, or

(c) the intended sale would, if completed, leave the vendor or any person who might reasonably be expected to reside with him or her without adequate housing.

(4) Where the housing authority or approved body purchases the dwelling in accordance with subsection (2) and material improvements have been made to the dwelling with the prior written consent of the housing authority or approved body, as appropriate, in accordance with the terms and conditions of the transfer order, the price payable by the authority or approved body shall be the market value of the dwelling, reduced by an amount equal to that proportion of the net market value of the dwelling as corresponds to the charged share of the authority or approved body in the dwelling on the date of its resale.

(5) Where a purchaser resells a dwelling to a person other than a housing authority or an approved body during the charged period, the purchaser shall pay to the housing authority or approved body concerned an amount equal to a percentage of the market value, such percentage being the equivalent of the charged share of the authority or approved body in the dwelling on the date of resale of the dwelling.

(6) Where a purchaser resells a dwelling to which material improvements have been made with the prior written consent of the authority or approved body, as appropriate, to a person other than a housing authority or an approved body, the purchaser shall pay to the housing authority or approved body an amount equal to that proportion of the net market value of the dwelling as corresponds to the charged share of the authority or approved body in the dwelling on the date of its resale.

(7) Where the amount payable under any of the provisions of this section would reduce the proceeds of the sale (disregarding solicitor and estate agent’s costs and fees) below the purchase money, the amount payable under the charging order shall be reduced to the extent necessary to avoid that result.

(8) (a) Subject to paragraph (b), where a purchaser resells a dwelling which is subject to a charging order the charged period of which has expired and in respect of which the amount referred to in section 47 (3) has not been paid in accordance with that section, section 46 (12) applies.

(b) No account shall be taken of any material improvements made to the dwelling after the expiration of the charged period.

(9) The housing authority may take account of any moneys likely to accrue to an approved body from the sale of dwellings under incremental purchase arrangements when providing assistance to such a body under section 6 of the Act of 1992 in respect of the provision of housing accommodation.

(10) (a) Subject to paragraph (b), any moneys accruing to an approved body from the sale of a dwelling under an incremental purchase arrangement or the resale of such a dwelling shall be paid to the housing authority for use by the housing authority for the purposes specified in section 13.

(b) Repayment of the moneys referred to in paragraph (a) shall be limited to the extent that those moneys have been taken into account by the housing authority when providing assistance under section 6 of the Act of 1992 in respect of the provision of housing accommodation.

(11) For the purposes of this section, the current market value of a dwelling shall be determined by the housing authority or the approved body, as appropriate, or, where the vendor does not agree with the market value so determined, by an independent valuer nominated by the vendor from a panel of suitably qualified persons, established by the housing authority, who are of a class or description prescribed under section 49.

(12) The housing authority or approved body, as the case may be, shall not be liable for any expenses incurred by a vendor under subsection (11).

49. Regulations (Part 3).

49.— The Minister may make regulations in relation to all or any one or more of the following:

(a) the class or classes of dwelling to which incremental purchase arrangements may apply;

(b) the class of classes of households with whom incremental purchase arrangements may be entered into;

(c) the method for determining the purchase price of a dwelling which method may—

(i) differentiate between different classes of dwelling, and

(ii) take account of the age of the dwelling;

(d) the method for determining the purchase money taking account of the financial circumstances of households with whom incremental purchase arrangements may be entered into;

(e) the determination of the minimum period, or the range within which a housing authority shall fix the minimum period, for which a charging order shall apply in respect of a dwelling sold under an incremental purchase arrangement, which period shall not in any case be less than 20 years from the date of the transfer order;

(f) in the case of an approved body, the reservation by it of a specified number or proportion of newly-constructed dwellings provided with the assistance of a housing authority under section 6 of the Act of 1992;

(g) the form and manner of, and terms and conditions to be specified in, a transfer order and a charging order;

(h) the class or classes or description of persons who are suitably qualified by reference to their qualifications and experience to determine the market value of a dwelling or site, as the case may be, for the purposes of this Part;

(i) the form of the statement for the purposes of sections 46(5) and 47(3);

(j) such other matters as the Minister considers necessary and appropriate relating to incremental purchase arrangements.

PART 4 TENANT PURCHASE OF APARTMENTS

50. Interpretation (Part 4).

50.— (1) In this Part—

“apartment” means a separate and self-contained dwelling in an apartment complex which requires arrangements for the upkeep and management of all or any part of the common areas, structures, works or services other than by the owner of the apartment;

“apartment assignment order” has the meaning given to it by section 64 (2);

“apartment complex” means land on which there stands erected a building or buildings, comprising or together comprising not less than 5 apartments (but not including any community apartment) and the common areas, structures, works and services;

“apartment complex service charge” has the meaning given to it by section 67 (1) and “ service charge ” shall be construed accordingly;

“apartment complex support fund” has the meaning given to it by section 70;

“ apartment complex transfer order ” has the meaning given to it by section 59;

“apartment owner” , in relation to an apartment (including a community apartment) in a designated apartment complex, means, subject to section 65 (1) (b)—

(a) an apartment purchaser, or

(b) the housing authority, in the case of an apartment which has not been sold by the housing authority—

(i) under section 90 of the Principal Act, whether before or after the coming into operation of this Part, or

(ii) under this Part and any regulations made thereunder;

“apartment purchaser” means, subject to section 76, a person who purchases an apartment under this Part and includes a person in whom there subsequently becomes vested the interest of the apartment purchaser or his or her successor in title and the personal representative of that person or successor in title and references to “purchaser” shall be construed accordingly;

“apartment transfer order” has the meaning given to it by section 60;

“charging order” has the meaning given to it by section 74;

“charged period” has the meaning given to it by section 74;

“charged share” has the meaning given to it by section 74;

“common areas, structures, works and services” means, in relation to an apartment complex, areas, structures, works and services that are, or are intended to be, common to apartments (including community apartments) in the apartment complex and enjoyed therewith, including where relevant access and side roads, architectural features, circulation areas, footpaths, internal common stairways, open spaces, parking areas, utility rooms and that portion of the roof or exterior of any building not intended to form or not forming part of any individual apartment;

“community apartment” means an apartment in an apartment complex that is authorised by the housing authority to be used for activities for the common benefit or enjoyment of the occupiers of apartments in the apartment complex;

“current market value” means the price for which an apartment might reasonably be expected to be sold, on the open market, on the date of sale under section 76, in its existing state of repair and condition and not subject to the conditions specified in section 64 (5) or to a charging order;

“designated apartment complex” has the meaning given to it by section 55 (1);

“financial year”, in relation to a management company, means a period of 12 months ending on 31 December in any year, and, in the case of the first financial year of a management company, means the period commencing on the expiry of the period specified in section 63 (1) and ending on 31 December next following;

“initial selling period” has the meaning given to it by section 56 (2);

“management company” has the meaning given to it by section 57 (2);

“management company annual charges” has the meaning given to it by section 69;

“member” means a member of the management company;

“property management services” means services in respect of the management of an apartment complex carried out on behalf of a management company, and such services include—

(a) administrative services, and

(b) the procurement of or any combination of the maintenance, servicing, repair, improvement or insurance of the apartment complex or any part or parts of the apartment complex;

“purchase money”, in relation to an apartment, means the monetary value of the proportion of the purchase price of the apartment fixed by the housing authority, in accordance with regulations made under section 77 for the purposes of calculating the purchase money, as the proportion that is required to be paid to purchase the apartment;

“purchase price”, in relation to an apartment, means the price of the apartment determined by a housing authority in accordance with regulations made under section 77 for the purposes of calculating the purchase price;

“section 53 proposal” has the meaning given to it by section 53;

“sell”, in relation to an apartment, means to sell or assign a leasehold estate or interest;

“sinking fund” has the meaning given to it by section 68 (1);

“sinking fund contribution” has the meaning given to it by section 68 (3);

“tenant” means the tenant of an apartment pursuant to a tenancy agreement between the household and a housing authority.

(2) Save where otherwise provided for by this Part—

(a) references in this Part to an apartment, shall not include a community apartment, and

(b) references in this Part to a tenant, shall not include any tenant of a community apartment.

(3) In this Part, save where the context otherwise requires, a reference to a transfer of ownership shall be construed as a reference to a deed of transfer, conveyance or assignment.

51. Consideration of designation of apartment complex.

51.— (1) Subject to and in accordance with this Part and any regulations made thereunder, a housing authority may propose to designate an apartment complex for the purpose of making all of the apartments comprised therein, in respect of which the housing authority is the apartment owner, available for sale to the tenants thereof, under this Part and any regulations made thereunder, where the housing authority is satisfied that the conditions specified in subsection (2) are met.

(2) The conditions referred to in subsection (1) are that—

(a) the housing authority considers that the sale of the apartments concerned is consistent with good estate management and management of its overall dwelling stock in accordance with the policy objectives set out in its housing services plan relating to the management and maintenance of dwellings owned by the housing authority,

(b) the apartment complex is suitable for designation having regard to, but not necessarily limited to, the following—

(i) the configuration of the apartment complex by reference to its design and layout and to the common areas, structures, works and services,

(ii) the annual cost of managing and maintaining the apartment complex and providing for future capital works to preserve and improve the apartment complex, and

(iii) the number of apartments available for sale,

(c) the housing authority is satisfied, in a case where structural work has been carried out on the apartment complex within the previous 10 years or, in any other case, where a survey of the structural condition of the apartment complex has been carried out within the previous 5 years, that the apartment complex is in good structural condition, order and repair,

(d) with respect to the apartment complex concerned, neither the housing services plan nor the housing action programme contain—

(i) proposals to carry out reconstruction or improvement works by virtue of section 12 of the Act of 1988, or

(ii) plans for the regeneration of the area in which the apartment complex is situated,

(e) good and marketable title may be transferred to a management company under section 59 for the purposes of this Part, and

(f) none of the apartments in the apartment complex is of a class excluded from sale under this Part by regulations made under section 77.

52. Preparation of draft proposal to designate apartment complex.

52.— (1) Where a housing authority proposes to designate an apartment complex, the housing authority shall prepare a draft proposal, which shall—

(a) specify the apartment complex which it is proposed to designate,

(b) include information relating to the arrangements for—

(i) holding a tenant plebiscite in respect of the proposed designation of the apartment complex within 3 months of the adoption by the housing authority of a section 53 proposal,

(ii) transferring ownership of the apartment complex to a management company,

(iii) the sale of apartments in the apartment complex to the tenants of those apartments,

(iv) managing and maintaining the common areas, structures, works and services in the apartment complex, and

(v) funding expenditure of a type referred to in section 68 (1),

(c) include information relating to the terms and conditions of sale of an apartment in the apartment complex to the tenant thereof, including—

(i) the obligation to pay the management company annual charges and the estimated level thereof in the first year after purchase,

(ii) the restrictions on resale of an apartment by an apartment purchaser, and

(iii) the covenants in the apartment assignment order and the consequences for the apartment purchaser of failure to observe same,

(d) include information relating to the performance by the housing authority of its functions in respect of apartments in the apartment complex the subject of tenancy agreements between the housing authority and the tenants thereof,

(e) set out indicative figures for the projected purchase price and purchase money for the different classes of apartment in the apartment complex, and

(f) include any other information that the authority considers relevant to the draft proposal.

(2) The housing authority shall—

(a) publish and maintain on the Internet a copy of a draft proposal under this section to designate an apartment complex,

(b) make the draft proposal available for inspection on request by any person, without charge, at its offices and such other places as it considers appropriate during normal office hours,

(c) give notice of the draft proposal to—

(i) each tenant of an apartment in the apartment complex, and

(ii) each member of the housing authority.

(3) A housing authority shall take such steps as it considers appropriate for the purposes of informing tenants and seeking their views about a draft proposal under this section to designate an apartment complex including but not limited to—

(a) the holding of an information meeting or meetings about the draft proposal, and

(b) arranging to meet with individual tenants, as appropriate, on request, regarding the draft proposal.

(4) For the purposes of subsection (1) (a), the draft proposal may include a map that clearly indicates the boundaries, common areas, structures, works and services of the apartment complex concerned.

53. Proposal to designate apartment complex.

53.— (1) Where, subject to the conditions specified in section 51 (2) continuing to be satisfied and having regard to the views of the tenants concerned expressed at information meetings or otherwise under section 52 (3), the F65[chief executive] decides to proceed with the proposal to designate the apartment complex, the F65[chief executive] shall submit the draft proposal to the members of the housing authority with or without such modifications as the F65[chief executive] considers appropriate.

(2) Where the F65[chief executive] decides not to proceed with the proposal to designate an apartment complex—

(a) because any condition specified in section 51 (2) is no longer satisfied,

(b) having regard to the views of the tenants concerned expressed at information meetings or otherwise under section 52 (3), or

(c) for any other reason,

the F65[chief executive] shall advise the tenants concerned and the members of the housing authority of his or her decision and the reasons for that decision.

(3) The housing authority may, with or without modification, adopt the draft proposal, submitted to it under subsection (1), to designate the apartment complex (in this Part referred to as a “section 53 proposal”).

(4) The adoption under this section of a section 53 proposal is a reserved function.

54. Tenant plebiscite.

54.— (1) Where a housing authority adopts a section 53 proposal, it shall hold a tenant plebiscite in respect of the apartment complex concerned within the period specified in the proposal and in accordance with this section and any regulations made thereunder for the purpose of ascertaining the level of—

(a) support for the designation of the apartment complex, and

(b) willingness of tenants who purchase apartments in the apartment complex under this Part to serve as directors of the management company.

(2) (a) Subject to paragraph (b), each apartment in the apartment complex concerned shall be afforded one vote in the plebiscite.

(b) Where an apartment has been sold by the housing authority under section 90 of the Principal Act, whether before or after the coming into operation of this Part, the apartment shall not be included for the purposes of a tenant plebiscite under this section.

(3) A vote under subsection (2) may only be exercised—

(a) by the tenant of the apartment at the time of the plebiscite, and

(b) by completing and returning a ballot paper in the form and manner prescribed under subsection (6).

(4) In the case of an apartment where there are 2 or more tenants—

(a) they shall be considered as one tenant for the purposes of subsection (3) (a),

(b) they are not entitled to vote in the plebiscite unless a majority of them concurs, and

(c) unless the vote is signed by a majority of them, it shall be disregarded for the purposes of the plebiscite.

(5) Not later than 2 months after the adoption of the proposal to designate the apartment complex, the housing authority shall send to the tenants concerned, by ordinary post or any other means that may be prescribed under subsection (6), all ballot papers for completion under subsection (3) together with a copy of the section 53 proposal and any other explanatory material it considers relevant.

(6) The Minister may make regulations—

(a) relating to and governing the conduct of a tenant plebiscite,

(b) prescribing the form of a ballot paper under this section and the manner in which it is to be completed and returned, and

(c) prescribing means other than post for the delivery and return of ballot papers under this section.

55. Designation of apartment complex.

55.— (1) Where, following the holding of a tenant plebiscite, the conditions specified in section 51 (2) continue to be met, and subject to the conditions specified in subsection (2) being satisfied, the housing authority may designate the apartment complex (in this Part referred to as a “designated apartment complex”) in accordance with the section 53 proposal.

(2) The conditions referred to in subsection (1) are that—

(a) the number of votes in favour of the designation of the apartment complex equals or exceeds 65 per cent of the number of tenants entitled to vote at the plebiscite, and

(b) the number of voters who indicate at the plebiscite that, if designation proceeds and they purchase their apartments, they are willing to serve as directors of the management company equals or exceeds the greater of—

(i) the minimum number of tenants specified in column (2) of the Table to this subsection opposite the entry in column (1) of the class of apartment complex corresponding to the class of the apartment complex concerned, or

(ii) the number (rounded up to the nearest higher whole number) of tenants represented by the minimum proportion of all tenants specified in column (3) of the said Table opposite the said entry in column (1).

TABLE

(3) Where an apartment complex is designated under subsection (1), the designation lapses if no apartment is sold by the housing authority under this Part before the expiry of the initial selling period.

(4) The designation of an apartment complex is a reserved function.

56. Initial selling period.

56.— (1) A housing authority shall, within 6 months of designating an apartment complex under section 55, by written notice given to each tenant of an apartment in the apartment complex, invite him or her to submit to the authority an application to purchase the apartment.

(2) Apartments in a designated apartment complex shall be available for sale under this Part to the tenants thereof during the period (in this Part referred to as the “initial selling period”) beginning on the date specified in subsection (3) and ending on the later of the following—

(a) 3 years from the date on which the initial selling period begins, or

(b) 5 years from the date on which the initial selling period begins in a case where the housing authority, before the expiry of the period specified in paragraph (a), extends that period for a further period of 2 years where it is satisfied that the sales of at least the minimum number of apartments available for sale in the designated apartment complex, calculated in accordance with section 64 (4), will proceed during any such extended period.

(3) The specified date for the purposes of subsection (2) is the date of the first occasion following designation of the apartment complex under section 55 on which the housing authority, pursuant to an application referred to in subsection (1), provides to a tenant the necessary information, documentation, particulars of title and terms and conditions of sale relating to the apartment concerned together with information and documentation relating to the management company.

(4) The extension of the initial selling period for the purposes of subsection (2) (b) is a reserved function.

(5) The F66[chief executive] shall arrange for the establishment of a management company under section 57 where the F66[chief executive] is satisfied that—

(a) the sales are ready to proceed, during the initial selling period, of at least the minimum number of apartments available for sale in the designated apartment complex calculated in accordance with subsection (6), and

(b) in relation to those sales that are ready to proceed as referred to in paragraph (a), the number of tenants of the apartments concerned that have indicated their willingness to serve as directors of the management company equals or exceeds half of the minimum number of apartments calculated in accordance with subsection (6).

(6) The minimum number of apartments for the purposes of subsection (5) (a) is calculated as the greater of—

(a) the minimum number of apartments specified in column (2) of the Table to this subsection opposite the entry in column (1) of the class of apartment complex corresponding to the class of the designated apartment complex concerned, and

(b) the minimum number (rounded up to the nearest higher whole number) of tenants represented by the minimum proportion of all apartments in the designated apartment complex concerned specified in column (3) of the said Table opposite the said entry in column (1).

TABLE

(7) For the purposes of subsection (5) and section 64 (3), a sale is ready to proceed where, in accordance with the terms and conditions of sale, the tenant has—

(a) signed the apartment assignment order,

(b) paid such deposit as is payable to the housing authority in respect of the purchase concerned, and

(c) provided to the housing authority written notice of loan approval or otherwise established, to the satisfaction of the housing authority, his or her capacity to pay the balance of the purchase money on the completion of the sale to him or her.

57. Establishment and objects of management company.

57.— (1) In this section references to an apartment include a community apartment.

(2) A housing authority shall, in relation to a designated apartment complex, establish a company (in this Part referred to as a “management company”) to achieve the principal objects specified in subsections (5) and (6) which shall be a company formed and registered under the Companies Acts and limited by—

(a) shares, where there are not more than 6 apartments in the designated apartment complex concerned, or

(b) guarantee, where there are more than 6 apartments in the designated apartment complex.

(3) The name of every management company shall be comprised of the name of the designated apartment complex concerned and the words “owners’ management company” which words may be abbreviated to “OMC”.

(4) The memorandum and articles of association of a management company shall be in such form consistent with this Act as may be determined by the housing authority.

(5) The principal objects of a management company shall be stated in its memorandum of association to be as follows:

(a) to take a transfer of ownership of a designated apartment complex in accordance with an apartment complex transfer order;

(b) in the case of apartments in the designated apartment complex which have not been sold by the housing authority under section 90 of the Principal Act, whether before or after the coming into operation of this Part, to grant a lease or sublease of the apartments to the housing authority in accordance with an apartment transfer order;

(c) to manage, control and maintain the common areas, structures, works and services in accordance with section 63 (3);

(d) to carry out its functions in accordance with this Part.

(6) Subsection (5) does not prevent or restrict the inclusion of objects and powers that are—

(a) reasonably necessary, proper for or incidental or ancillary to attaining the principal objects referred to in subsection (5), and

(b) not inconsistent with this Part or any other enactment.

(7) The articles of association shall include provision for—

(a) the levying and collection annually of an apartment complex service charge and a charge in respect of the sinking fund contribution, and

(b) the covenants and agreements relating to the designated apartment complex and the apartments comprised therein.

58. Annual meetings and reports of management company.

58.— (1) A management company shall—

(a) prepare and furnish to each member an annual report which complies with subsection (2), and

(b) hold a meeting at least once in each year for purposes which include the consideration of the annual report referred to in paragraph (a).

(2) An annual report of a management company shall include:

(a) a statement of income and expenditure relating to the period covered by the report;

(b) a statement of the assets and liabilities of the company;

(c) a statement of the funds standing to the credit of the sinking fund;

(d) a statement of the amount of the apartment complex service charge and the basis of such charge in respect of the period covered by the report;

(e) a statement of the projected or agreed apartment complex service charge relating to the current period;

(f) a statement of any planned expenditure on refurbishment, improvement or maintenance of a non-recurring nature which it is intended to carry out in the current period;

(g) a statement of the insured value of the designated apartment complex, the amount of the premium charged, the name of the insurance company with which the policy of insurance is held and a summary of the principal risks covered; and

(h) a statement fully disclosing any contracts entered into or in force between the management company and a director or shadow director of the company or a person who is a connected person as respects that director or shadow director.

(3) At least 21 days written notice of the meeting referred to in subsection (1) (b) shall be given to each member.

(4) A copy of the annual report referred to in subsection (1) (a) shall be given to each member at least 10 days before the meeting referred to in subsection (1) (b).

(5) The meeting referred to in subsection (1) (b) shall take place within reasonable proximity to the designated apartment complex and at a reasonable time (unless otherwise agreed by 75 per cent majority vote of the members).

(6) The obligations of a management company under this section are in addition to any other obligation or duty of such company whether arising under an Act, statutory instrument, by rule of law or otherwise.

(7) For the purposes of subsection (2) (h), “shadow director” and “connected person” have the same meanings as they have in the Companies Acts.

59. Transfer of ownership of designated apartment complex to management company.

59.— (1) As soon as practicable after the establishment of the management company under section 57 the housing authority shall, for nominal consideration transfer its ownership of the apartment complex (including its interest in any apartment sold under section 90 of the Principal Act whether before or after the coming into operation of this Part) to the management company by means of an order (in this Part referred to as an “apartment complex transfer order”), in the prescribed form, made by the housing authority, which order shall be expressed and shall operate to vest, on the date specified in the order, the interest specified therein, subject as therein provided and to the terms and conditions specified in subsection (2).

(2) The terms and conditions referred to in subsection (1) include the following—

(a) that the management company shall, on the date specified in the apartment complex transfer order or as soon as practicable thereafter, lease or sublease, as the case may be, each apartment (including any community apartment) in the designated apartment complex to the housing authority in accordance with this Part other than any apartments sold by the housing authority under section 90 of the Principal Act whether before or after the coming into operation of this Part,

(b) that the transfer of ownership under subsection (1) is subject to—

(i) the tenancy agreements between the housing authority and the tenants of the apartments concerned entered into before the date of the apartment complex transfer order, and

(ii) any lease entered into between the housing authority before the date of the apartment complex transfer order for the purpose of the sale of an apartment in the designated apartment complex under section 90 of the Principal Act whether before or after the coming into operation of this Part,

(c) that the consent of the management company shall not be required in respect of the sale or letting of apartments by the housing authority under the Housing Acts 1966 to 2009,

(d) that the management company shall, where the designation of an apartment complex lapses under section 55 (3), comply with the requirements of section 61,

(e) such other terms and conditions as may be prescribed for the purposes of an apartment complex transfer order.

(3) Save as provided for by any other enactment or regulations made thereunder, the transfer of ownership of a designated apartment complex to a management company under this section shall not imply any warranty on the part of the housing authority in relation to the state of repair or condition of the apartment complex or the fitness for human habitation of the apartments concerned.

60. Lease of apartment to housing authority.

60.— (1) In this section, in the case of a designated apartment complex in respect of which a leasehold interest is assigned to the management company for the purposes of section 59, a reference to a lease includes a sublease.

(2) Subject to and in accordance with this section, as soon as practicable after the date specified in the apartment complex transfer order for the purposes of section 59 (1), the management company shall, for nominal consideration, grant a lease to the housing authority in respect of each apartment (including any community apartment) in the designated apartment complex, by means of an order (in this Part referred to as an “apartment transfer order”) in the prescribed form, made by the management company, which shall be expressed and shall operate to vest, on the date specified in the order, the interest specified therein, subject as therein provided and to the terms and conditions specified in subsection (3).

(3) The terms and conditions referred to in subsection (2) include the following—

(a) that the housing authority may, without the consent of the management company—

(i) sell the apartment, under this Part, to a tenant thereof, or

(ii) without prejudice to any tenancy agreement entered into between the housing authority and a tenant of the apartment concerned before the date specified in the apartment transfer order for the purposes of subsection (2), let the apartment in accordance with and in the performance of its functions under the Housing Acts 1966 to 2009,

(b) that the housing authority shall not, without the prior written consent of the management company make material improvements to the apartment,

(c) the condition specified in section 69 (3) relating to payment of the management company annual charges in respect of the apartment and the consequences of failing to pay,

(d) that the management company shall, where the designation of an apartment complex lapses under section 55 (3), comply with the requirements of section 61,

(e) terms and conditions relating to membership of the management company, and

(f) such other terms and conditions relating to the lease of an apartment to the housing authority under this section as may be prescribed for the purposes of an apartment transfer order.

(4) This section does not apply to any apartment in a designated apartment complex sold by a housing authority under section 90 of the Principal Act whether before or after the coming into operation of this Part.

(5) In this section “material improvements” means improvements made to an apartment whether for the purposes of extending, enlarging or converting the apartment but does not include internal decoration and repair.

61. Consequences of designation lapsing under section 55 .

61.— (1) Where the designation of an apartment complex lapses under section 55 (3), the housing authority shall notify the management company in writing and the management company shall, as soon as practicable after receipt of the notification—

(a) terminate the leases granted to the housing authority in respect of each apartment in accordance with the terms and conditions of the apartment complex transfer order and the apartment transfer order;

(b) transfer ownership of the apartment complex to the housing authority, subject to any lease referred to in section 59 (2) (b) (ii), and

(c) arrange for the winding up of the management company in accordance with the Companies Acts.

(2) Where the designation of an apartment complex lapses under section 55 (3) and subject to compliance by the management company with the requirements of subsection (1), the housing authority shall continue to perform its functions under the Housing Acts 1966 to 2009 relating to the management and control of the apartment complex.

62. Costs incurred by management company.

62.— A housing authority shall reimburse a management company established by it in respect of such reasonable and vouched expenses as may be incurred by the management company in the performance of its functions under sections 59 , 60 and 61.

63. Management, control and maintenance of designated apartment complex.

63.— (1) Notwithstanding the transfer of ownership of a designated apartment complex to a management company under section 59, the housing authority shall manage and control the designated apartment complex in the performance of its functions under the Housing Acts 1966 to 2009, for the period beginning on the date specified in the apartment complex transfer order for the purposes of section 59 (1) and ending on the date of the first sale of an apartment in the apartment complex to the tenant thereof.

(2) The management company shall pay to the housing authority as soon as practicable after receipt thereof any charges paid to the management company in respect of the period specified in subsection (1) by any person to whom an apartment in the designated apartment complex was sold under section 90 of the Principal Act whether before or after the coming into operation of this Part.

(3) On the date of the first sale under this Part of an apartment in a designated apartment complex to the tenant thereof the management company shall, in relation to the common areas, structures, works and services in the designated apartment complex, in accordance with its memorandum and articles of association ensure the effective management and maintenance of the common areas, structures, works and services, and without prejudice to the generality of the foregoing, ensure that the designated apartment complex functions effectively and otherwise comply with the obligations imposed on the management company under and in accordance with this Part and the apartment complex transfer order.

64. Sale by housing authority of apartments to tenants.

64.— (1) In this section, in the case of an apartment in respect of which a sublease is granted to the housing authority for the purposes of section 60, a reference to a lease includes a sublease.

(2) Subject to and in accordance with this Part and the Housing Acts 1966 to 2004 and subject to such regulations as may be made under section 77, a housing authority may, subject to subsections (3) and (4), in consideration of the receipt by the housing authority of the purchase money, sell an apartment, of which it is the apartment owner, in a designated apartment complex, in the state of repair and condition existing on the date of sale, to the tenant of the apartment (in this Part referred to as an “apartment purchaser”) by assignment of the lease granted to the housing authority under section 60 by means of an order (in this Part referred to as an “apartment assignment order”), in the prescribed form, made by the housing authority, which shall be expressed and shall operate to vest, on the date specified in the order, the interest specified in the order, in accordance with and subject to the terms and conditions specified in subsection (5) and the terms and conditions of a charging order.

(3) The F67[chief executive] shall not sign the apartment assignment order for the sale to a tenant under this Part of the first apartment in a designated apartment complex where—

(a) the initial selling period has expired, or

(b) he or she is not satisfied that the sales are ready to proceed (within the meaning of section 56 (7)) within 4 weeks of the date of signing the assignment order of at least the minimum number of apartments available for sale in the designated apartment complex, calculated in accordance with subsection (4), or

(c) the number of tenants of the apartments referred to in paragraph (b) who have indicated a willingness to serve as directors of the management company is less than half of the minimum number of apartments calculated in accordance with subsection (4).

(4) The minimum number of apartments for the purposes of subsection (3) (b) includes the first apartment referred to in subsection (3) and is calculated as the greater of—

(a) the minimum number of apartments specified in column (2) of the following Table opposite the entry in column (1) of the class of apartment complex corresponding to the class of the designated apartment complex concerned, or

(b) the minimum number (rounded up to the nearest higher whole number) of tenants represented by the minimum proportion of all apartments specified in column (3) of the following Table opposite the said entry in column (1).

TABLE

(5) The terms and conditions referred to in subsection (2) shall include the following—

(a) that the apartment shall, during the charged period, unless the housing authority gives its prior written consent, be occupied as the normal place of residence of the apartment purchaser or of a member of the apartment purchaser’s household;

(b) that the apartment or any part thereof shall not, during the charged period without the prior written consent of the housing authority, be sold, assigned, let or sublet or otherwise disposed of or mortgaged, charged or alienated, otherwise than by devise or operation of law;

(c) terms and conditions relating to the resale of the apartment under section 76 during the charged period;

(d) such other terms and conditions relating to the sale of an apartment as may be prescribed for the purposes of an apartment assignment order.

(6) A tenant who applies to purchase his or her apartment under this Part shall, on or before signing the apartment assignment order, pay to the housing authority a deposit of an amount determined in accordance with such method as may be prescribed under section 77 which deposit, subject to subsection (7), shall not be refundable if the tenant withdraws from the sale for any reason at any time before the expiration of 6 months from the date on which he or she signs the order.

(7) Where a housing authority does not proceed with the sale of an apartment for any reason, the housing authority shall—

(a) notify the tenant in writing,

(b) refund any deposit paid by the tenant and reimburse the tenant in respect of such reasonable legal expenses as may be incurred by him or her in respect of the proposed purchase of the apartment by him or her under this Part, and

(c) pay to the tenant interest on the amount of the deposit refunded under paragraph (b) at the rate prescribed under section 33 for the period beginning on the date the tenant signed the apartment assignment order and ending on the date on which the housing authority notifies the tenant that it is not proceeding with the purchase.

(8) Save as provided for by any other enactment or regulations made thereunder, the sale of an apartment under this Part to a tenant shall not imply any warranty on the part of the housing authority in relation to the state of repair or condition of the apartment or its fitness for human habitation.

(9) A housing authority shall not proceed with the sale of an apartment under this Part to the tenant thereof—

F68[(a) where—

(i) at any time during the 3 years immediately before applying to the authority to purchase an apartment under this Part, the tenant or a member of his or her household was in arrears of rent, rent contributions, charges, fees or any other moneys due and owing for an accumulated period of 12 weeks or more to a housing authority or an approved body in respect of a dwelling or site to whichChapter 3ofPart 2of theAct of 2009relates, and

(ii) subject tosubsection (9A), the tenant or the household member has not entered into rescheduling arrangements with the housing authority or approved body concerned for the payment of such arrears, or, having entered into such arrangements, has not, in the opinion of the authority or body, substantially complied with their terms,]

(b) where, on the basis of any structural survey of the apartment complex or of an individual apartment that may be carried out after the date of the designation of the apartment complex under section 55, the authority considers that it is not in the interest of good estate management to proceed with the sale,

(c) where the authority is not satisfied, having regard to the provisions of section 65(5), that the number of existing and prospective apartment purchasers willing to serve as directors of the management company is sufficient to enable the company to function effectively, or

(d) where the designation of the apartment complex for tenant purchase has lapsed undersection 55 (3).

F69[(9A) In applyingsubsection (9)(a)(ii), a housing authority shall disregard the case where the authority or approved body concerned is satisfied that the failure of the tenant or the household member concerned to substantially comply with the terms of the rescheduling arrangements was due to circumstances outside the control of such tenant or household member.]

(10) Section 211(2) of the Planning and Development Act 2000 and section 183 of the Local Government Act 2001 shall not apply to the sale of an apartment to a tenant in accordance with this Part.

65. Management company provisions.

65.— (1) In this section—

(a) references to an apartment include a community apartment, and

(b) references to an apartment owner include—

(i) a person to whom an apartment in a designated apartment complex was sold under section 90 of the Principal Act whether before or after the coming into operation of this Part, and

(ii) a person in whom there subsequently becomes vested the interest of the person referred to in subparagraph (i) or his or her successor in title and the personal representative of that person or successor in title.

(2) Each apartment owner shall be a member of the management company.

(3) (a) The voting rights of the members shall be structured in such a manner that in the determination of any matter by the members one vote shall attach to each apartment owner in respect of each apartment in the designated apartment complex to which the management company relates, and that no other person has such a vote.

(b) Each vote referred to in paragraph (a) shall be of equal value.

(4) Where 2 or more persons are joint apartment owners they shall constitute one member in respect of the exercise of the voting and other powers vested in such member.

(5) According as apartments in a designated apartment complex are sold to tenants under this Part, a housing authority shall, subject to subsection (6), nominate for election as directors of the management company such number of persons which, when expressed as a proportion of the total number of directors of the company that will be serving after the election is concluded, does not exceed the proportion of the total number of apartments in the designated apartment complex of which the housing authority is the apartment owner.

(6) A housing authority may decide not to nominate any person for election as a director of the management company where the number of apartments of which the housing authority is the apartment owner is equal to or less than 20 per cent of the total number of apartments in the designated apartment complex.

66. Automatic transfer of membership of management company on sale of apartment.

66.— (1) Where ownership of an apartment in a designated apartment complex is transferred, whether by conveyance, transfer, assignment, by operation of law or otherwise, membership of the management company which arises by virtue of ownership of the apartment shall, notwithstanding any provision to the contrary in the Companies Acts or other enactment, on such transfer stand transferred to the person becoming entitled to the interest in the apartment concerned without the need to execute a transfer or have it approved by the directors of the company, and such person shall—

(a) be entitled to exercise the powers, rights and entitlement of a member in the company concerned, and

(b) subject to subsection (3), be obliged to perform all the obligations (including the payment of the apartment complex service charge, the charge in respect of the sinking fund contribution and any other charges) pertaining to the membership of the company concerned.

(2) Notwithstanding subsection (1) a management company shall take all steps necessary to ensure—

(a) that the share certificate or membership certificate, as appropriate, is issued to the member concerned as soon as practicable following notification of the change of ownership of an apartment,

(b) that the register of members of the company is altered accordingly, and

(c) that there is compliance with all other relevant requirements under the Companies Acts.

(3) This section is without prejudice to the rights, entitlements and obligations of any person to whom an apartment in a designated apartment complex was sold under section 90 of the Principal Act, whether before or after the coming into operation of this Part including a person in whom there subsequently becomes vested the interest of such person or his or her successor in title and the personal representative of that person or successor in title.

67. Apartment complex service charge.

67.— (1) Before the end of the period specified in section 63 (1), and thereafter before the end of the first month of each financial year, the management company shall prepare an estimate of the amount to be raised, in respect of the financial year concerned, by way of an annual charge or charges (in this Part referred to as the “apartment complex service charge”) payable by apartment owners, being the amount required to discharge ongoing expenditure reasonably incurred on the insurance, maintenance (including cleaning and waste management services) and repair of the common areas, structures, works and services of the designated apartment complex concerned and on the provision of common or shared services to the apartment owners and occupiers of the designated apartment complex.

(2) The management company shall prepare the estimate referred to in subsection (1) by reference to the actual or projected expenditure for the financial year in respect of which the service charge is to be levied.

(3) The estimate referred to in subsection (1) shall include the following categories:

(a) insurance;

(b) general maintenance;

(c) repairs;

(d) waste management;

(e) cleaning;

(f) gardening and landscaping;

(g) security services;

(h) legal services and accounts preparation; and

(i) other expenditure anticipated to arise in connection with the maintenance, repair and management of the common areas anticipated to arise.

(4) The apartment complex service charge for each financial year shall not be levied by the management company unless it has been considered by a general meeting of the members called for purposes which include the consideration of the estimate referred to in subsection (1).

(5) The general meeting referred to in subsection (4) shall take place within reasonable proximity to the designated apartment complex and at a reasonable time (unless otherwise agreed by a 75 per cent majority vote of the members).

(6) (a) The proposal in relation to the setting of the apartment complex service charge may be amended at the meeting referred to in subsection (4)with the approval of a 60 per cent majority vote of the members present and voting at the meeting.

(b) Where the apartment complex service charge proposed to the general meeting is disapproved of by not less than a 75 per cent majority vote of the members present and voting at the meeting, the proposed apartment complex service charge shall not take effect but the apartment complex service charge applying to the previous financial year shall continue to apply pending the adoption of an apartment complex service charge in respect of the financial year concerned.

(7) The amount of the apartment complex service charge shall as soon as practicable after its adoption under this section be levied by the management company as a charge on each apartment in the designated apartment complex, the proportion of the apartment complex service charge attributable to any apartment being the same as the proportion which the floor area of that apartment, determined in the prescribed manner, bears to the aggregate floor area of all apartments in the designated apartment complex.

(8) (a) In the case of a designated apartment complex where the housing authority has sold one or more than one apartment under section 90 of the Principal Act, whether before or after the coming into operation of this Part, the management company shall—

(i) determine the net amount of the apartment complex service charge by deducting from the amount of the apartment complex service charge for the financial year concerned the amount of its estimated service charge receipts for the current financial year from the apartment owners of the apartments so sold under the terms and conditions of the transfer orders in respect of the sales of those apartments,

(ii) excluding the apartments so sold from the calculation and subject to the prior approval of the Minister, apportion the net amount of the apartment complex service charge between each of the other apartments in the designated apartment complex by the method of apportionment provided for in the said transfer orders, and

(iii) levy the amount so apportioned in respect of each of those other apartments in the designated apartment complex as a charge on such apartment.

(b) The Minister shall not approve the method of apportionment referred to in paragraph (a) (ii) where he or she is not satisfied that such method is equitable as between the apartments referred to in paragraph (a) (iii).

(c) Where the Minister does not approve the method of apportionment referred to in paragraph (a) (ii), the management company shall, excluding the apartments so sold under section 90 of the Principal Act from the calculation, apportion the net amount of the apartment complex service charge between each of the other apartments in the designated apartment complex by the method of apportionment specified in subsection (7).

(9) (a) To the extent that any part of the apartment complex service charge is not required for the year concerned, any excess shall be taken account of in setting the apartment complex service charge for the following year.