Affordable Housing Act 2021


Realisation event and realisation notice

18. (1) The housing authority shall be entitled to demand the redemption of the affordable dwelling equity by serving a notice (in this Part referred to as a “realisation notice”) on the homeowner on the occurrence of such event (in this Part referred to as a “realisation event”) as is specified in the affordable dwelling purchase arrangement.

(2) Without prejudice to the generality of subsection (1), each of the following shall be a realisation event:

(a) the affordable dwelling equity is not redeemed in its entirety by the homeowner by the later of the following dates:

(i) the long stop date;

(ii) the date 3 months from the date on which written notice of the expiration of the long stop date is given by the housing authority to the homeowner, which notice is to be given at any time within the period of 6 months ending on the long stop date or after the long stop date;

(b) the person who purchased the affordable dwelling under an affordable dwelling purchase arrangement, or, where pursuant to the arrangement the dwelling was purchased by more than one person, each such person, dies, commits an act of bankruptcy, or is adjudicated a bankrupt;

(c) any mortgagee, incumbrancer or receiver enters into possession of all or part of the affordable dwelling or the rents and profits thereof;

(d) the affordable dwelling becomes subject to an order or process for compulsory purchase;

(e) the affordable dwelling is demolished or destroyed, whether by fire or otherwise, or is damaged so as to materially affect its market value;

(f) the affordable dwelling is abandoned by the homeowner;

(g) following the giving of notice by the housing authority to the homeowner to remedy a material breach of a covenant in the affordable dwelling purchase arrangement within such reasonable period as may be specified in the notice, the breach is not remedied in the period specified;

(h) the housing authority is satisfied that the homeowner wilfully misled it in respect of any material fact having regard to which the eligibility or priority of the homeowner was determined in accordance with section 10 or 11 .

(3) The housing authority may communicate with the homeowner for the purposes of advising, consulting or negotiating with the homeowner in relation to any actual or anticipated realisation event provided that the occurrence of a realisation event shall not oblige the housing authority to serve a realisation notice and neither its failure to serve a realisation notice nor any advice, consultation or negotiations with the homeowner shall constitute any waiver of its entitlement to serve a realisation notice.

(4) A realisation notice shall specify a period, not shorter than 3 months commencing on the date of its service (save in exceptional circumstances where the housing authority’s ability to realise the affordable dwelling equity would be compromised), after which the housing authority shall be entitled to realise the affordable dwelling equity in accordance with section 19, unless the homeowner has first redeemed in its entirety the affordable dwelling equity.