Dissolution of housing action trust - HA 1988 s. 88
Process to dissolve a housing action trust: duty to dispose and submit proposals to Secretary of State, who may order dissolution by statutory instrument.
A housing action trust shall use its best endeavours to secure that its objects are achieved as soon as practicable. Where it appears to a trust that its objects have been substantially achieved, it shall— so far as practicable, dispose or arrange to dispose of any remaining property, rights or liabilities of the trust in accordance with the preceding provisions of this Part of this Act; and submit proposals to the Secretary of State for— the dissolution of the trust; the disposal to any person of any remaining property, rights or liabilities of the trust which it has not been able to dispose of or arrange to dispose of under paragraph (a) above;and the transfer of any function exercisable by the trust to another person (including, where appropriate, a person with whom the trust has entered into an agreement under section 87 above). The Secretary of State may by order provide for the dissolution of a housing action trust and for any such disposal or transfer as is mentioned in subsection (2)(b) above, whether by way of giving effect (with or without modifications) to any proposals submitted to him under subsection (2) above or otherwise. Any order under this section— where it provides for any such disposal or transfer as is mentioned in subsection (2)(b) above, may be on such terms, including financial terms, as the Secretary of State thinks fit and may create or impose such new rights or liabilities in respect of what is transferred as appear to him to be necessary or expedient; where it provides for any such disposal or transfer as is mentioned in subsection (2)(b) above, may contain provisions— establishing new bodies corporate to receive the disposal or transfer; or amending, repealing or otherwise modifying any enactment for the purpose of enabling any body established under any enactment to receive the disposal or transfer; may contain such supplementary and transitional provisions as the Secretary of State thinks necessary or expedient, including provisions amending , repealing or otherwise modifying any enactment ; and shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament. In this section “enactment” includes any instrument made under any enactment.
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
A housing action trust must use its best efforts to achieve its objects as soon as possible. When it appears to the trust that its objects have been substantially achieved, the trust must (as far as practicable) dispose of any remaining property, rights or liabilities in accordance with the other provisions of Part III of the Housing Act 1988, and then submit proposals to the Secretary of State for the trust's dissolution, the disposal of anything it could not dispose of, and the transfer of any of its functions to another person (including a person with whom it has an agency agreement under section 87).
The Secretary of State may then make an order to dissolve the trust and to give effect to the proposals (with or without changes). The order can impose financial terms and create new rights or liabilities. It may also establish new bodies, or amend or repeal any enactment to allow an existing body to receive the transfer. The order can include any supplementary or transitional provisions the Secretary of State thinks necessary.
The order is made by statutory instrument, which can be annulled by a resolution of either House of Parliament. 'Enactment' in this section includes any instrument made under an enactment.
When it applies
- A housing action trust that was set up to regenerate a council estate has completed all new housing and community facilities; its board considers the objects substantially achieved and begins the dissolution process.
- The trust identifies a few remaining parcels of land it cannot sell before dissolution and proposes to transfer them to the local authority under the Secretary of State's order.
- The Secretary of State uses the order power to dissolve the trust and simultaneously transfer its remaining rights (e.g., leases) to a new housing association.
- The trust submits a proposal that includes transferring its function of managing certain properties to a private company under an existing agency agreement (section 87).
- Parliament scrutinises the draft dissolution order; MPs may move to annul it within the required period.
What this section does not say
- This provision does not govern the initial establishment of a housing action trust or its powers to acquire land (those are in other sections of Part III).
- It does not set out the specific objects of a housing action trust (those are defined elsewhere, e.g., in the trust's order or section 62).
- It does not provide a remedy for tenants who are unhappy with the trust's performance before dissolution (tenants' rights are covered by sections 82, 84, etc.).
- It does not regulate the disposal of land by a trust that is still operating (that is governed by sections 79-81).
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This page reproduces the text of HA 1988 s. 88 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.