Housing (Miscellaneous Provisions) Act, 1992

Power of housing authorities to sell certain dwellings provided under Principal Act.

26.—(1) The Principal Act is hereby amended by the substitution for section 90 of the following:

“90. (1) Subject to the provisions of this section and to such regulations as may be made by the Minister for the purposes of this section, a housing authority may sell a dwelling in the state of repair and condition existing at the date of the sale—

(a) where the dwelling is occupied by a tenant—

(i) to the tenant in accordance with a scheme under which the dwelling is offered for sale (in this section referred to as a ‘purchase scheme’),

(ii) to another housing authority, or

(iii) to a body standing approved of for the purposes of section 6 of the Housing (Miscellaneous Provisions) Act, 1992;

(b) where the dwelling is not occupied by a tenant, to any person (including another housing authority).

(2) A purchase scheme—

(a) shall be subject to such regulations as may be made by the Minister,

(b) may relate to all dwellings or to dwellings of a specified class or classes,

(c) shall be adopted by a housing authority by resolution,

(d) may be expressed to apply in respect of a specified period of time.

(3) If so directed by the Minister, a housing authority shall, on or before such date as the Minister may specify, adopt a purchase scheme or schemes and offer for sale dwellings to which the purchase scheme or schemes apply.

(4) Subject to any regulations made under this section, section 83 of the Local Government Act, 1946 , shall apply in relation to the sale of a dwelling under subparagraph (ii) or (iii) of paragraph (a), or paragraph (b), of subsection (1) of this section and have effect as if for paragraphs (b), (c) and (d) of subsection (1) of the said section 83 there were substituted the following:

‘(b) at a meeting of the local authority held after the expiration of ten clear days from the day on which such notices are sent, the authority shall resolve as follows:

(i) that the sale shall be carried out in accordance with the terms specified in such notices, or

(ii) that the sale shall be carried out in accordance with the terms specified in the resolution, or

(iii) that the sale shall not be carried out,

(c) if the local authority resolve pursuant to paragraph (b) of this subsection that the sale shall be carried out in accordance with the terms specified in such notices, the sale may be carried out in accordance with those terms,

(d) if the local authority resolve pursuant to paragraph (b) of this subsection that the sale shall be carried out in accordance with the terms specified in the resolution, the sale may, with the consent of the Minister, be carried out in accordance with those terms,’.

(5) A sale of a dwelling under this section shall be effected by means of an order (in this section referred to as a ‘transfer order’) made by the housing authority which shall be expressed and shall operate to vest, on the date specified in the order, the interest specified therein, subject to such terms and conditions, including special conditions, as may be specified therein.

(6) Where a dwelling, being a separate and self-contained flat in premises divided into two or more such flats, is sold under this section, a housing authority may—

(a) make a periodic or other charge on the purchaser in respect of the management, control, maintenance or improvement of the areas, works or services in the said premises that are common to two or more such dwellings where such functions are performed by the authority,

(b) as respects any sum due to them under paragraph (a) of this subsection and remaining unpaid after the due date—

(i) secure payment of the sum by charging the dwelling under the Registration of Title Act, 1964 ,

(ii) without prejudice to subparagraph (i) of this paragraph, recover the sum as a simple contract debt in any court of competent jurisdiction,

(c) subject to the requirements of regulations (if any) under this section, transfer the ownership or control of the areas, works or services in the said premises that are common to two or more such dwellings to a company or other body having as an object the management, control, maintenance or improvement of the said premises, areas, works or services.

(7) Regulations under this section may, in particular, but without prejudice to the generality of subsection (1) of this section, make provision in relation to all or any one or more of the following:

(a) the class or classes of dwellings to which a purchase scheme shall or shall not apply;

(b) the period in respect of which a purchase scheme shall apply;

(c) the period within which an application by a tenant to acquire a dwelling under a purchase scheme shall be received by a housing authority;

(d) the determination of the amount of the purchase price of a dwelling;

(e) the determination of any discount or other allowance to be deducted from the purchase price of a dwelling;

(f) the manner of payment of the purchase money for a dwelling;

(g) the determination from time to time of the rate of interest (if any) payable to a housing authority on moneys owing to the authority in respect of a dwelling;

(h) the security (if any) to be taken for moneys owing to a housing authority and the manner of assessing its adequacy;

(i) the form of, or the matters to be specified in, a transfer order;

(j) such other terms and conditions, including special conditions and the period for which they shall apply, in relation to the sale of a dwelling as the Minister considers appropriate;

(k) in case of a sale of a dwelling under paragraph (a)(iii) of the said subsection (1)—

(i) the form of or the matters to be specified in an agreement between the housing authority and the body in relation to the sale of the dwelling;

(ii) the obtaining of the tenant's consent to the sale of the dwelling and the manner of so doing;

(iii) the furnishing of information to the tenant for the purpose of obtaining his consent;

(iv) the tenant's occupation of the dwelling following its sale;

(l) in case of a sale of a dwelling under subparagraph (ii) or (iii) of paragraph (a), or paragraph (b), of subsection (1) of this section, the obtaining of the consent of the Minister to the sale;

(m) the application of section 3 of the Housing (Miscellaneous Provisions) Act, 1992, to the sale of a dwelling under this section.

(8) No warranty shall apply or be deemed to be implied as to the state of repair or condition or the fitness for human habitation of a dwelling sold under this section.

(9) Where a housing authority give or have given consent to a mortgage in respect of a dwelling sold by them under this section, the authority shall be regarded as having consented to—

(a) any further or consolidated mortgage effected by the same mortgagor, and

(b) the exercise by the mortgagee of his powers under either such mortgage.

(10) Where, in relation to a house sold under this section, a written report on the value of a house and any factors likely to affect its value is furnished by a housing authority in connection with the making of a loan by a building society to be secured on the house, the authority may be deemed to be a person competent to value and not disqualified from making a report for the purposes of section 25 (1) (c) of the Building Societies Act, 1989 .

(11) (a) The power under this section to sell a dwelling, other than a dwelling being a separate and self-contained flat in premises divided into two or more such flats or a dwelling to which regulations made pursuant to paragraph (m) of subsection (7) of this section apply, shall, except where the dwelling is vested in another housing authority or a body approved of under section 6 of the Housing (Miscellaneous Provisions) Act, 1992, be exercised only by the vesting of the fee simple in the dwelling.

(b) The Landlord and Tenant (Ground Rents) Act, 1978 , shall not apply in relation to the sale of a dwelling under subparagraph (ii) or (iii) of paragraph (a) of subsection (1) of this section.

(12) The following additional provisions shall apply in respect of a dwelling to which a special condition described in paragraph (c) of section 89 of this Act applies:

(a) the housing authority may, without prejudice to any other power in that behalf, refuse to consent to a sale of the dwelling if they are of opinion that—

(i) the intended purchaser is not a person in need of housing, or

(ii) the intended sale would, if completed, leave the seller or any person who might reasonably be expected to reside with him without adequate housing;

(b) where, in relation to the dwelling—

(i) a housing authority give or have given consent to a sale, or

(ii) a mortgagee has exercised his powers of sale under a mortgage,

the condition shall, from the date of such sale, no longer apply;

(c) any attempted or purported mortgaging, charging or alienation in contravention of the special condition shall be null and void against all persons; provided, however, that in any case where the consent of the housing authority is given after the attempted or purported mortgaging, charging or alienation, such consent shall, if the authority so direct, so operate as to validate with retrospective effect such attempted or purported mortgaging, charging or alienation.”.

(2) Where, before the commencement of this section, an application to acquire a dwelling has been received from the tenant thereof by a housing authority and the authority propose to vest the dwelling in the said tenant on the terms applicable to the sale of the dwelling on the date of receipt of such application, the vesting may, notwithstanding the commencement of this section, be completed on the said terms.

(3) Section 90 of the Principal Act (as amended by this Act) shall not apply to a house during a period it is let by a housing authority under an agreement, entered into before the commencement of section 3 which requires the tenant to accept from the authority when offered by them a shared ownership lease.