New Clause 3: Building Safety Bill
New Clause 3
‘(1) The remediation costs condition applies where a landlord has carried out any fire safety works to an applicable building in consequence of any provision, duty or guidance arising from—
(a) the Housing Act 2004;
(b) the Regulatory Reform (Fire Safety Order) 2005;
(c) the Building Safety Act 2021;
(d) any direction, recommendation or suggestion of any public authority or regulatory body;
(e) such other circumstances or enactment as the Secretary of State may prescribe by regulations or in accordance with subsection (9), below.
(2) If the remediation costs condition is met, then the costs incurred by the landlord in connection with those matters may not be the subject of a demand for payment of service charges, administration charges or any other charge permitted or authorised by any provision of any long lease.
(3) Any demand for payment which contravenes this section shall be of no force or effect and will have no validity in law.
(4) Any covenant or agreement, whether contained in a lease or in an agreement collateral to such a lease, is void in so far as it purports to authorise any forfeiture or impose on the tenant any penalty, disability or obligation in the event of the tenant refusing, failing or declining to make a payment to which this section applies.
(5) The remediation costs condition applies to demands for payment before the landlord incurs the costs in the same way as it applies to demands for payment made after the costs have been incurred.
(6) The remediation costs condition does not apply where the landlord is a company in which the majority of the shares are held by leaseholders or where the landlord is an RTM company.
(7) Within six months of the day on which this section comes into force, the Secretary of State must create an agency referred to as the Building Works Agency.
(8) The purpose of the Building Works Agency shall be to administer a programme of cladding remediation and other building safety works, including—
(a) overseeing an audit of cladding, insulation and other building safety issues in buildings over two storeys;
(b) prioritising audited buildings for remediation based on risk;
(c) determining the granting or refusal of grant funding for cladding remediation work;
(d) monitoring progress of remediation work and enforce remediation work where appropriate;
(e) determining buildings to be safe once remediation work has been completed;
(f) seeking to recover costs of remediation where appropriate from responsible parties; and
(g) providing support, information and advice for owners of buildings during the remediation process.
(9) The Building Works Agency shall also have power to recommend that the Secretary of State exercises his power under clause (1)(e) in such terms and to such extent that it sees fit. If such a recommendation is made, the Secretary of State must, within 28 days, either—
(a) accept it and exercise the power under clause 1(e) within 28 days of acceptance; or
(b) reject it and, within 28 days of rejection, lay before Parliament a report setting out the reasons for rejection.
(10) In this section—
(a) “fire safety works” means any work or service carried out for the purpose of eradicating or mitigating (whether permanently or temporarily) any risk associated with the spread of fire, the structural integrity of the building or the ability of people to evacuate the building;
(b) “applicable building” means a building subject to one or more long leases on the day on which section comes into force;
(c) “service charge” has the meaning given by s.18, Landlord and Tenant Act 1985;
(d) “administration charge” has the meaning given by Schedule 11, Commonhold and Leasehold Reform Act 2002;
(e) “long lease” has the meaning given by sections 76 and 77 of the Commonhold and Leasehold Reform Act 2002;
(f) “RTM company” has the meaning given by section 113 of the Commonhold and Leasehold Reform Act 2002.
(11) This section comes into force on the day on which this Act is passed.’—(Matthew Pennycook.)