ࡱ> :<97 HbjbjUU ,67|7|Hl$$$$$$$8 D8 $I i8$ 8$$ M $ $  $$ v98N zc0!f"!88$$$$THE SOCIAL LANDLORDS DISCRETIONARY REDUCTION OF SERVICE CHARGES (ENGLAND) DIRECTIONS 1997 The Secretary of State for the Environment in the exercise of the powers conferred upon him by sections 219 and 220 of the Housing Act 19961 and of all other powers enabling him in that behalf, hereby gives the following Directions - Citation and Commencement 1. These Directions may be cited as the Social Landlords Discretionary Reduction of Service Charges (England) Directions 1997 and shall come into force on 25 February 1997. Interpretation 2. In these Directions - programme means a programme specified in the Schedule to these Directions; relevant assistance means that part of a grant or other financial assistance of any kind from any programme which is used for the costs of works of repair, maintenance or improvement. Application 3. These Directions shall apply to social landlords making a service charge which is payable by a lessee in respect of a dwelling in England. Discretion to Reduce Service Charges where Works Undertaken with Relevant Assistance 4. Subject to paragraph 6, where - (a) relevant assistance is granted in respect of an application made before the date 1996 c. 52. 1996 c.52 1 these Directions come into force, and (b) a social landlord makes a service charge in respect of the costs of works of repair, maintenance or improvement which have been or are to be undertaken wholly or partly with such relevant assistance, a social landlord may waive or reduce the service charge by any amount provided that the total amount of such waivers and reductions shall not exceed the total amount of relevant assistance for the costs of such works which is, in the opinion of the social landlord, attributable to the leasehold dwellings where such works have been or are to be undertaken. Discretion to Reduce Service Charges Exceeding 10,000 in any Period of Five Years 5. Subject to paragraph 6, where service charges (whether paid or payable) exceed a total sum of 10,000 in respect of the same dwelling in any period of five years, a social landlord may waive or reduce such charges by any amount except that such charges shall not be waived or reduced to less than 10,000 in respect of the same dwelling in the same period of five years. Criteria 6. The social landlord is to have regard to the following criteria in deciding whether to waive or reduce the service charge under paragraph 4or 5 and to what extent - (a) any estimate of the costs of the works of repair, maintenance or improvement notified to the lessee or any predecessor in title before his or their purchase of the lease of the dwelling; (b) whether the purchase price paid by the lessee took account of the costs of the works of repair, maintenance or improvement; (c) any benefit which a social landlord considers the lessee has received or will receive as a result of the works of repair, maintenance or improvement including an increase in the value of the lease (including a reduction in the negative value of the lease), an increase in the energy efficiency of the dwelling, an improvement in the security of the dwelling and an improvement in services or facilities; 2 (d) whether, upon receipt of an application by a lessee, a social landlord, having regard to the criteria set out in paragraph 7, considers that the lessee would suffer exceptional hardship in paying the service charge; and (e) any other circumstance of the lessee which the social landlord considers relevant. Exceptional hardship 7. In considering an application to reduce the service charge because of exceptional hardship a social landlord is to have regard to the following criteria - (a) whether the dwelling is the lessees only or principal home; (b) the total amount of the service charges which have been paid or are payable by the lessee since the lessees purchase of the lease of the dwelling; (c) the amount of the service charge payable in the year in which the lessee applies for a reduction because of exceptional hardship; (d) the financial resources available to the lessee; (e) the ability of the lessee to raise funds to pay the service charge; (f) the ability of the lessee to pay the service charge if the social landlord were to extend the period for payment; and (g) any other circumstance of the lessee which the social landlord considers relevant. Waivers and reductions 8. Any waiver or reduction made under any paragraph in these Directions is in addition to any other waiver or reduction which may be made. 3 Previous service charges 9. These Directions permitting the waiver or reduction of service charges shall have corresponding effect- (a) in relation to charges already demanded so as to permit the non enforcement of the charges; and (b) in relation to charges already paid so as to permit a refund. Signed by the authority of the Secretary of State for the Environment Bridget Campbell Grade 5 (Assistant Secretary) 4 February 1997 SCHEDULE Paragraph 2 GOVERNMENT ASSISTANCE PROGRAMMES 1. Such assistance under the following statutory powers which is or has been designated under the title Estate Action (known prior to 28 November 1986 by the title of the Urban Housing Renewal Unit) - section 1 of the Local Government Grants (Social Need) Act 1969a section 72 of the Local Government, Planning and Land Act 1980b section 27 of the Housing and Planning Act 1986c sections 54 and 132 of the Local Government and Housing Act 1989d a 1969 c.2. b 1980 c.65. c 1986 c.63; section 27 was substituted by section 174 of the Leasehold Reform, Housing and Urban Development Act 1993 (c.28). d 1989 c.42. 4 section 126 of the Housing Grants, Construction and Regeneration Act 1996. 2. Such assistance under the following statutory powers which is or has been designated under the title City Challenge - section 1 of the Local Government Grants (Social Need) Act 1969 section 27 of the Housing and Planning Act 1986 section 50 of the Housing Act 1988b section 126 of the Housing Grants, Construction and Regeneration Act 1996. 3. Such assistance under the following statutory powers which is or has been designated under the title Single Regeneration Budget Challenge Fund - section 11 of the Local Government Act 1966c section 1 of the Local Government Grants (Social Need) Act 1969 sections 2 and 3 of the Employment and Training Act 1973d sections 11 and 12 of the Industrial Development Act 1982e section 27 of the Housing and Planning Act 1986 section 169 of the Criminal Justice and Public Order Act 1994-- section 126 of the Housing Grants, Construction and Regeneration Act 1996. 4. Such assistance under the following statutory powers which is or has been designated under the title Estates Renewal Challenge Fund - section 27 of the Housing and Planning Act 1986 section 126 of the Housing Grants, Construction and Regeneration Act 1996. a 1996 c.53 b 1988 c.50 c 1966 c.42 d 1973 c.50 e 1982 c.52 f 1994 c.33 5 Z\F` <H+ s u v ,QSz,-7:novwtu0S56   "#$)-./059:;<FHH*]H*\H*]65U0Z[\F` 5<H+N x1$7$8$H$ x1$7$8$H$^ x1$7$8$H$ x1$7$8$H$ x1$7$8$H$ x1$7$8$H$H x1$7$8$H$ x1$7$8$H$^$ x1$7$8$H$a$ x1$7$8$H$ x1$7$8$H$^ x1$7$8$H$ x1$7$8$H$^ s Yqrstuvwxyz{| x1$7$8$H$ x1$7$8$H$ x1$7$8$H$ x1$7$8$H$ x1$7$8$H$^|~^hAD, x1$7$8$H$ x1$7$8$H$ x1$7$8$H$^$ x1$7$8$H$a$L89:Kiy  x1$7$8$H$ x1$7$8$H$^ x1$7$8$H$$ x1$7$8$H$a$ x1$7$8$H$|.pqrstuv 0x1$7$8$H$^`0 x1$7$8$H$^ 1$7$8$H$^ x1$7$8$H$  x1$7$8$H$i"RvU7g{ 1$7$8$H$^ 1$7$8$H$ x1$7$8$H$^$ x1$7$8$H$a$ :FH$ x1$7$8$H$a$ Ex1$7$8$H$ x1$7$8$H$ 9x1$7$8$H$ x1$7$8$H$^ * 00P. 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