Establishment of housing action trusts HA 1988 s. 62
HA 1988 s. 62 lets the Secretary of State establish a housing action trust or assign an existing one via order, making it an independent body corporate.
Subject to subsection (2) below, where the Secretary of State makes a designation order, he shall, in that order or by a separate order, either— establish a housing action trust for the designated area; or specify as the housing action trust for the designated area a housing action trust already established for another designated area. Such a separate order as is referred to in subsection (1) above shall be made by statutory instrument but no such order shall be made unless a draft of it has been laid before, and approved by a resolution of, each House of Parliament. Subject to subsection (4) below, a housing action trust shall be a body corporate by such name as may be prescribed by the order establishing it. Where the Secretary of State makes the provision referred to in subsection (1)(b) above,— the housing action trust specified in the order shall, by virtue of the order, be treated as established for the new designated area (as well as for any designated area for which it is already established); and the order may alter the name of the trust to take account of the addition of the new designated area. Schedule 7 to this Act shall have effect with respect to the constitution of housing action trusts and Schedule 8 to this Act shall have effect with respect to their finances. It is hereby declared that a housing action trust is not to be regarded as the servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown and that the trust’s property is not to be regarded as the property of, or property held on behalf of, the Crown. At the end of section 4 of the Housing Act 1985 (descriptions of authority) there shall be added— “ housing action trust ” means a housing action trust established under Part III of the Housing Act 1988 ; and at the end of section 14 of the Rent Act 1977 (landlord’s interest belonging to local authority etc.) there shall be added— a housing action trust established under Part III of the Housing Act 1988 .
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
When the Secretary of State designates a housing action trust area, they must either create a new housing action trust for that area or assign an existing trust to it. This can be done in the designation order itself or by a separate order. If a separate order is used, it must be laid before and approved by resolutions of both Houses of Parliament.
A housing action trust is a body corporate named in the order that establishes it. If an existing trust is assigned to an additional designated area, it is legally treated as established for that new area as well, and its corporate name may be altered to reflect the change.
Housing action trusts are independent legal entities. They are not Crown agents or servants, do not hold Crown status or privileges, and their property is not Crown property. This provision also adds housing action trusts to statutory definitions of housing authorities and landlords under primary housing legislation.
When it applies
- The Secretary of State creates a new corporate trust to manage housing regeneration in a designated area.
- The Secretary of State expands an existing housing action trust so that it also covers a second designated area.
- A tenant or contractor brings a legal claim against a housing action trust directly as an independent body corporate rather than against the Crown.
- A local authority checks whether a housing action trust qualifies as a statutory landlord or housing authority under legislation.
What this section does not say
- Deciding whether a local area qualifies to be designated as a housing action trust area.
- The public consultation procedures that must take place before designating an area.
- The general operational duties, corporate powers, and objectives of a trust once established.
Related sections
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This page reproduces the text of HA 1988 s. 62 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.