The Local Government Reorganisation (Greater London Council Transferred Housing and Nomination Rights) Order 1986

• Citation: S.I. 1986/442
• Sections: 20

Section 1 Citation, commencement and interpretation

(1) This order may be cited as the Local Government Reorganisation (Greater London Council Transferred Housing and Nomination Rights) Order 1986 and shall come into operation on 1st April 1986.

(2) In this order—

“ the Council ” means the Greater London Council;

“ successor authority ” means a body or authority in which property of the Council is vested by or under the 1985 Act or which exercises functions after the abolition date which were previously exercisable by the Council;

“ the transfer orders ” means the orders made under section 23 of the London Government Act 1963 (transfers of Greater London Council housing land) referred to in column 1 of Schedule 1 to this order;

“ transferee authority ” means a London borough council or district council to which land has been transferred by the transfer orders;

“ the 1971 order ” means the London Authorities (Transfer of Housing Estates etc. ) Order 1971 ;

“ the 1972 No. 1 order ” means the London Authorities (Transfer of Housing Estates etc.) (No. 1) Order 1972;

“ the 1972 No. 2 order ” means the London Authorities (Transfer of Housing Estates etc.) (No. 2) Order 1972 ;

“ the 1972 No. 3 order ” means the London Authorities (Transfer of Housing Estates etc.) (No. 3) Order 1972 ;

“ the 1973 order ” means the London Authorities (Transfer of Housing Estates etc.) Order 1973;

“ the 1980 order ” means the Greater London Council (Transfer of Land and Housing Accommodation) Order 1980 ;

“ the 1981 No. 1 order ” means the Greater London Council (Transfer of Land and Housing Accommodation) Order 1981 ;

“ the 1981 No. 2 order ” means the Greater London Council (Transfer of Land and Housing Accommodation) (No. 2) Order 1981;

“ the 1981 No. 3 order ” means the Greater London Council (Transfer of Land and Housing Accommodation) (No. 3) Order 1981 ;

“ the 1982 order ” means the Greater London Council (Transfer of Land and Housing Accommodation) Order 1982;

“ the 1983 order ” means the Greater London Council (Transfer of Land and Housing Accommodation) Order 1983; and

“ the 1985 Act ” means the Local Government Act 1985.

Section 2 Revocation of the transfer orders

The transfer orders are, so far as they confer rights which are exercisable on or after the abolition date or impose liabilities which fall to be discharged on or after that date, revoked to the extent specified in column 3 of Schedule 1, subject to the savings set out in Part II of Schedule 2.

Section 3 Savings and other provisions

Schedule 2 (which amends the transfer orders, makes savings in relation to the revocations made by article 2 and makes other provision in relation to the orders) shall have effect.

Section 4 Nomination rights

(1) There shall be conferred on the Secretary of State rights to nominate tenants for housing accommodation transferred by the transfer orders which correspond to those conferred on the Council by the provisions of the transfer orders specified in paragraph 1 of Part I of Schedule 3, with the modifications as to the matters to be taken into account in their exercise set out in paragraph 3 of that Part.

(2) The provisions of the transfer orders specified in paragraphs 2 and 4 of Part I of Schedule 3 (which are provisions incidental to the rights of nomination conferred by the orders) shall have effect in the manner provided by those paragraphs.

(3) There shall be transferred to the Secretary of State the rights of the Council specified in Part II of Schedule 3 to nominate tenants for housing accommodation belonging to other authorities or bodies.

Section 5 Residuary rights and liabilities of the Council

Where not otherwise provided for by this order, the rights conferred and liabilities imposed on the Council by the transfer orders shall be transferred to the London Residuary Body.

Section 1

(1) This paragraph applies where—

(a) immediately before the abolition date an officer of the Council occupies a dwelling pursuant to paragraph (c) of article 31 of the 1971 order, paragraph (c) of article 29 of the 1972 No. 1 order, paragraph (b) of article 30 of the 1972 No. 2 order or article 34 of the 1973 order; and

(b) he is employed as an officer of a successor authority with effect from the abolition date (whether pursuant to an order made under section 52 of the 1985 Act or otherwise) for the like purposes as those for which he was employed by the Council.

(2) In a case where this paragraph applies, the articles specified in sub-paragraph (1)(a) shall have effect from the abolition date as if references to the authority by whom the officer is employed were references to the successor authority by whom the officer is employed.

Section 1

Subject to paragraph 4, the revocations made by this order shall not extinguish the rights and liabilities of the Council to receive payments from or make payments to transferee authorities for periods before the abolition date where on that date the payments remain to be received or made; and such rights and liabilities of the Council shall be enforceable by or against the London Residuary Body.

Section 2

(1) The provisions of the transfer orders specified in sub-paragraph (2) shall (so far as is applicable) have effect from the abolition date as if references to the Council were references to a successor authority; and any terms agreed before the abolition date under those provisions for the use of property transferred under the transfer orders or of excluded property shall be of full force and effect in favour of or against the successor authority which is exercising the function previously exercisable by the Council to which the terms relate or, as the case may be, in which the excluded property to which the terms relate has been vested by or under the 1985 Act.

(2) The provisions of the transfer orders referred to in sub-paragraph (1) are—

(a) article 12 of the 1980 order;

(b) article 12 of the 1981 No. 1 order;

(c) article 13 of the 1981 No. 2 order; and

(d) article 12 of the 1981 No. 3 order;

and in that sub-paragraph “ excluded property ” has the same meaning as it has in those orders.

Section 2

(1) This paragraph applies where, before the abolition date, a review has been conducted, commenced or required pursuant to any of the following provisions of the transfer orders, namely—

(a) paragraphs 6 and 7 of Part I and paragraph 11 of Part II of Schedule 4 to the 1980 order;

(b) paragraph 8 of Schedule 3 to the 1981 No. 1 order;

(c) paragraph 8 of Schedule 2 to the 1981 No. 2 order;

(d) paragraph 9 of Part II of Schedule 3 to the 1981 No. 3 order;

(e) paragraph 7 of Schedule 3 to the 1982 order; and

(f) paragraph 8 of Schedule 2 to the 1983 Order.

(2) Without prejudice to the generality of paragraph 1, where this paragraph applies the provisions of the transfer orders referred to in sub-paragraph (1) shall continue to have effect in relation to any such review as is mentioned in that sub-paragraph with respect to payments to be made to transferee authorities for periods ending before the abolition date, and shall so have effect (so far as is applicable) as if references to the Council were references to the London Residuary Body; and the rights and liabilities of the Council with respect to payments for such periods in consequence of the review shall be transferred to that Body.

Section 3

(1) The following provisions of the transfer orders, namely—

(a) article 8 of and paragraph 10 of Part I of Schedule 1 to the 1971 order;

(b) paragraph 1 of Part I of Schedule 1 to the 1972 No. 1 order;

(c) article 8 of and paragraph 10 of Part I of Schedule 1 to the 1972 No. 2 order;

(d) article 8 of and paragraph 10 of Part I of the Schedule to the 1972 No. 3 order;

(e) paragraph 7 of Part I of Schedule 1 to the 1973 order;

(f) paragraph 1 of Part I of Schedule 2 to the 1973 order;

(g) articles 19 and 20 of and paragraph 3(3) of Parts I and II of Schedule 2 to the 1980 order;

(h) articles 18 and 19(1) of and paragraph 2(1) of Schedule 1 to the 1981 No. 1 order;

(i) article 20 of the 1981 No. 2 order;

(j) articles 18 and 19(1) of and paragraph 2(1) of Schedule 1 to the 1981 No. 3 order;

(k) articles 15 and 16 of and paragraph 2(1) of Schedule 1 to the 1982 order; and

(l) articles 12 and 13 of and paragraph 2(1) of Schedule 1 to the 1983 order,

shall have effect from the abolition date in the manner described in this paragraph.

(2) Subject to the provisions of this paragraph, the liability of a transferee authority to make payments under the provisions of the transfer orders referred to in sub-paragraph (1) shall continue as if the Council had not been abolished, and the payments which would accordingly, on falling due for payment, be made to the Council shall be made to the London Residuary Body.

(3) For the purposes of sub-paragraph (2)—

(a) a transferee authority's liability to make payments under paragraph 2(1) of Schedule 1 to the 1981 No. 1 order, the 1981 No. 3 order, the 1982 order or the 1983 order is to be taken as its liability before deduction of the net cost referred to in those provisions;

(b) a transferee authority's liability to the Council under any of the provisions of the transfer orders referred to in sub-paragraph (1)(b) and (f) to (l) to make payments to meet management expenses relating to any loan debt shall, with respect to periods beginning on or after the abolition date, be treated as a liability to make payments to meet the management expenses of the London Residuary Body relating to the debt;

(c) references in paragraph 10 of Part I of Schedule 1 to the 1971 order, paragraph 10 of Part I of Schedule 1 to the 1972 No. 2 order, paragraph 10 of Part I of the Schedule to the 1972 No. 3 order and paragraph 7 of Part I of Schedule 1 to the 1973 order to grant or subsidy receivable by the Council shall, with respect to periods beginning on or after the abolition date, be treated as references to grant or subsidy received by or to be received by the London Residuary Body; and

(d) where, under any of the provisions of the transfer orders referred to in sub-paragraph (1), matters relating to the payments to be made to the Council fall to be agreed by or with the Council, from the abolition date the matters shall, subject to the provisions of this paragraph, fall to be agreed by or with the London Residuary Body.

(4) A transferee authority's liability to make payments of interest in relation to relevant loan debt for periods beginning on or after the abolition date shall be discharged as follows—

(a) the authority shall on 30th September of each financial year pay to the London Residuary Body an amount calculated by multiplying the sum of the amounts of relevant loan debt which remain outstanding with respect to the authority on the first day of each month of that year from April to September inclusive by 1/12th of the estimated interest rate for that year;

(b) the authority shall on 31st March of each financial year pay to the London Residuary Body an amount calculated by multiplying the sum of the amounts of relevant loan debt which remain outstanding with respect to the authority on the first day of each month of that year from October to March inclusive by 1/12th of the revised interest rate for the year;

(c) the authority shall on 31st March of each financial year pay to, or, as the case may be, be entitled to receive from, the London Residuary Body the amount of any difference between the amount paid by the authority under paragraph (a) and the amount which would have been so paid if it had been calculated by reference to the revised interest rate for that year; and

(d) the authority shall on 30th September of each financial year beginning with the year 1987–88 pay to, or, as the case may be, be entitled to receive from, the London Residuary Body the amount of any difference between the amounts paid by the authority under paragraphs (a) and (b) (after adjustment under paragraph (c)) for the preceding financial year and the amounts which would have been so paid if they had been calculated by reference to the actual interest rate for that year.

(5) Where a payment falls to be made by a district council under sub-paragraph (4) in relation to any financial year, the London Residuary Body shall notify the council of the estimated interest rate, revised interest rate and actual interest rate for that year on or before the dates by which it is required to notify relevant authorities within the meaning of the Local Government Reorganisation (Repayment of Loans) (Greater London) Order 1986 of those rates under article 6 of that order.

(6) In this paragraph—

“ actual interest rate ” in relation to any financial year means the rate notified under article 6(5) of the Local Government Reorganisation (Repayment of Loans) (Greater London) Order 1986 as the actual interest rate for that year;

“ estimated interest rate ” in relation to any financial year means the rate notified under article 6(1) of the Local Government Reorganisation (Repayment of Loans) (Greater London) Order 1986 as the London Residuary Body's estimate of the interest rate which is to apply in relation to that year;

“ financial year ” means the period of 12 months ending with 31st March;

“ relevant loan debt ” with respect to a transferee authority means the loan debt in relation to which the authority is under a liability (as continued by sub-paragraph (2)) to make payments of interest to the London Residuary Body under any of the provisions of the transfer orders referred to in sub-paragraph (1)(b) and (f) to (l); and

“ revised interest rate ” in relation to any financial year means the rate notified under article 6(1) of the Local Government Reorganisation (Repayment of Loans) (Greater London) Order 1986 as the London Residuary Body's revised estimate of the interest rate which is to apply in relation to that year.

Section 3

(1) The rights and liabilities of the Council under contracts, deeds, bonds and other instruments relating to the carrying out of works to or on property transferred by the transfer orders shall be transferred to the transferee authority to whom the property has been transferred.

(2) The London Residuary Body shall indemnify transferee authorities with respect to any relevant payment made by them pursuant to a liability transferred by sub-paragraph (1) which is not recoverable from any other person.

(3) In sub-paragraph (2) “ relevant payment ” means a payment for which, but for the abolition of the Council and the provisions of this order, the Council would be liable under paragraph 2 of Part III of Schedule 1 to the 1971 order, paragraph 3 of Part III of Schedule 1 to the 1972 No. 1 order, paragraph 4 of Part III of Schedule 1 to the 1972 No. 2 order, paragraph 3 of Part III of the Schedule to the 1972 No. 3 order or paragraph 3 of Part III of Schedules 1 or 2 to the 1973 order.

(4) Any action or other proceeding instituted by or against the Council with respect to a right or liability transferred by sub-paragraph (1) may be continued and enforced by or against the transferee authority to which the right or liability has been so transferred.

Section 4

(1) In a case falling within sub-paragraph (2), the saving in paragraph 1 of this Part shall not apply to the liability of the Council or a transferee authority to make a payment to the other under the following provisions of the transfer orders, namely—

(a) article 6(1) of, the proviso to paragraph 3(1) of Part I of Schedule 2 to, and paragraph 3(2) of Parts I and II of Schedule 2 to, the 1980 order;

(b) article 7 of the 1981 No. 1 order, the 1981 No. 3 order, the 1982 order and the 1983 order; and

(c) article 6(6) of and paragraph 4 of Schedule 1 to the 1981 No. 2 order.

(2) A case falls within this sub-paragraph if, but for the abolition of the Council and the provisions of this order, the payment referred to in sub-paragraph (1) would have fallen to increase, or as the case may be to reduce, the amount of loan debt outstanding and due to the Council's consolidated loans fund with respect to which the transferee authority would have been liable to make payments to the Council under the provisions of the transfer orders referred to in paragraph 3(1) of Part I of this Schedule.

Section 5

Notwithstanding the revocation of article 19 of and Schedule 1 to the 1981 No. 2 order, paragraph 6(1)(a) and, with respect to the case mentioned in paragraph 6(1)(a), paragraph 6(2) of that Schedule shall continue to have effect in relation to—

(a) the demolition by the Council of a dwelling taking place before the abolition date; and

(b) the demolition of a dwelling taking place under a contract for demolition entered into by the Council before that date,

and to that extent may be enforced against the London Residuary Body.

Section 6

(1) This paragraph applies to a covenant referred to in—

(a) article 10 of the 1971 order;

(b) article 9 of the 1972 No. 1 order;

(c) article 10 of the 1972 No. 2 order;

(d) article 10 of the 1972 No. 3 order;

(e) article 10 of the 1973 order;

(f) article 10 of the 1980 order;

(g) article 10 of the 1981 No. 1 order;

(h) article 11 of the 1981 No. 2 order;

(i) article 10 of the 1981 No. 3 order; or

(j) article 10 of the 1982 order.

(2) Where a covenant to which this paragraph applies burdens land which is situated within the extent of land transferred to a transferee authority under the transfer orders, the benefit of the covenant shall be transferred to that authority, and any action or other proceeding instituted by the Council may be continued and enforced by the authority as if instituted by it.

Section 1

The provisions of the transfer orders which confer on the Council rights of nomination in respect of which corresponding rights are conferred by article 4(1) are—

(a) article 16(1) of the 1972 No. 1 order;

(b) article 22(1) of the 1973 order;

(c) paragraph 2 of Schedule 1 to the 1980 order;

(d) paragraph 2 of Schedule 2 to the 1981 No. 1 order;

(e) article 18(1), (5) and (6) of the 1981 No. 2 order;

(f) paragraph 2 of Schedule 2 to the 1981 No. 3 order;

(g) paragraph 2 of Schedule 2 to the 1982 order; and

(h) article 11 of the 1983 order.

Section 1

The rights of the Council to nominate tenants for housing accommodation which are transferred to the Secretary of State by article 4(3) are those such rights—

(a) which are the subject of an agreement having effect between the Council and a London borough council, a district council or a housing association with respect to housing accommodation belonging to those bodies (including housing accommodation transferred under the transfer orders); or

(b) which are exercisable pursuant to conditions to which payments of contributions undertaken to be made under the Town Development Act 1952 are subject.

Section 2

Subject to the modifications specified in paragraph 3, the following provisions of the transfer orders, namely—

(a) paragraph 1(1) to (5) of Schedule 1 to the 1980 order;

(b) paragraph 1(1) to (5) of Schedule 2 to the 1981 No. 1 order;

(c) article 18(3), (4) and (7) of the 1981 No. 2 order;

(d) paragraph 1(1) to (5) of Schedule 2 to the 1981 No. 3 order; and

(e) paragraph 1(1) to (5) of Schedule 2 to the 1982 order,

shall have effect in relation to the respective corresponding rights of nomination conferred by article 4(1) as if references to the Council were references to the Secretary of State.

Section 2

In paragraph 1(a) “ housing association ” has the same meaning as in the Housing Associations Act 1985.

Section 3

As to the matters to be taken into account in the exercise of the rights conferred by article 4(1), the following shall cease to have effect—

(a) in paragraph 1(1)(a) of Schedule 1 to the 1980 order, paragraph 1(1)(a) of Schedule 2 to the 1981 No. 1 order, article 18(1)(a) of the 1981 No. 2 order, paragraph 1(1)(a) of Schedule 2 to the 1981 No. 3 order, paragraph 1(1)(a) of Schedule 2 to the 1982 order and article 11(1)(a) of the 1983 order, the reference to the requirements of the Council;

(b) in paragraph 1(1)(b) of Schedule 1 to the 1980 order, paragraph 1(1)(b) of Schedule 2 to the 1981 No. 1 order and paragraph 1(1)(b) of Schedule 2 to the 1982 order, the reference to housing accommodation owned by the Council; and

(c) paragraph 1(2)(a) of Schedule 1 to the 1980 order, paragraph 1(2)(a) of Schedule 2 to the 1981 No. 1 order, article 18(2) of the 1981 No. 2 order, paragraph 1(2)(a) of Schedule 2 to the 1981 No. 3 order and paragraph 1(2)(a) of Schedule 2 to the 1982 order.

Section 4

The London Residuary Body shall continue to make the payments in pursuance of any agreement or determination made under article 16(2) and (3) of the 1972 No. 1 order or article 22(2) and (3) of the 1973 order that would have been made by the Council with respect to the nomination rights conferred on the Council under those orders.