C1Part 2Regulation of Social Housing

Annotations:
Modifications etc. (not altering text)

Chapter 3Registration

Eligibility

I1115Profit-making and non-profit organisations

1

Each entry in the register shall designate the body registered as either—

a

a non-profit organisation, or

b

a profit-making organisation.

2

A body is a non-profit organisation if it is a registered or non-registrable charity.

3

A body is also a non-profit organisation if it satisfies the following conditions.

4

Condition 1 is that the body—

a

does not trade for profit, or

b

is prohibited by its constitution from issuing capital with interest or dividend at a rate exceeding that prescribed under section 1(1)(b) of the Housing Associations Act 1985 (c. 69).

5

Condition 2 is that a purpose of the body is the provision or management of housing.

6

Condition 3 is that any other purposes of the body are connected with or incidental to the provision of housing.

7

The Secretary of State may make regulations providing that a specified purpose is to be, or not to be, treated as connected with or incidental to the provision of housing.

8

A body which is not a non-profit organisation under subsection (2) or (3) is a profit-making organisation.

9

If the regulator thinks that what was a profit-making organisation has become a non-profit organisation F2or vice versa, the regulator must change the registered designation accordingly F3and notify the body it has done so.

F110

Subsection (1) does not apply to the entry of a local authority in the register (and, accordingly, references to “profit-making” and “non-profit” in connection with a registered provider do not refer to a local authority).