1 ELIGIBILITY CRITERIA FOR APPLICANTS

1.1 To qualify for the scheme tenants must be:

• secure or assured tenants (excluding shorthold assured tenants and long leaseholders) of the RSL and occupy self contained accommodation (tenants may jointly purchase with up to 3 members of their family who currently live with them in the RSL property);
• have been a public sector tenant for a minimum of 2 years (5 years for tenancies granted after 18 January 2005) (See 1.5 and 1.6 below)  Previous public sector tenancies (see RTA 02 for list of Public Sector landlords) can count towards the qualifying period and need not be continuous.  The one exception is where the RSL acquired the property under a mortgage rescue arrangement and the previous owner is now the tenant. In these cases the tenant must have been a tenant of their current home for two complete years ( or 5 years as set out above) ;
• occupy an eligible property.

1.2 The following categories of tenants are not eligible for the scheme:

• tenants occupying property on an assured shorthold tenancy, licence or a long lease;
• tenants of Abbeyfields or Almshouses;
• tenants of fully mutual co-operatives;
• tenants of co-ownership societies;
• an undischarged bankrupt or who has a bankruptcy petition pending against him/her or has an arrangement with creditors, the terms of which remain to be fulfilled;
• a tenant who is obliged to give up possession of the tenanted property in pursuance of an order of the court or will be obliged to at a date notified in the order
• is the subject of a ‘suspension order’ or ‘suspension status’ see SHB-6, 3 etc

1.3 Tenants meeting the eligibility criteria at application stage must continue to do so up to the exchange of contracts.
 
1.4 The RSL may offer the SHB scheme to tenants who have the RTB, RTA or preserved RTB but in that case the tenant must opt for one scheme or another. Discounts cannot be combined, nor can an RSL claim Grant other than for sales through SHB or RTA.
 
1.5 For new tenancies created on or after 18.1.2005 SHB can only be exercised in cases where the tenant has been a tenant of a public sector landlord, see paragraph 2 below, for a qualifying period of at least five complete years, (s180, Housing Act 2004). 
 
1.6 For tenancies created before 18.1.2005 the qualifying period continues to be two complete years.
 
1.7     As at April 2006 tenants, with RTA, RTB or PRTB whose landlords have chosen to include their properties within a SHB programme, will have the additional option to purchase on shared ownership terms under Social HomeBuy if they cannot afford to buy 100% under the statutory schemes. Those tenants whose homes attract a higher RTB discount than the local RTA discount will be limited to the RTA discount limits if purchasing on shared ownership terms through SHB. 

 
 
2 LIST OF PUBLIC SECTOR LANDLORDS

 
2.1 A tenancy of any of the public bodies listed below will count as an eligible residency for SHB purposes.

• a district council
• a county council
• a London borough council
• the Common Council of the City of London
• a Council on the Isles of Scilly
• any of the following bodies which were set up when the Greater London Council and the metropolitan county councils were abolished:
   a metropolitan county policy authority the Northumbria Police Authority
   a metropolitan county fire and civil defence authority
   the London Fire and Civil Defence Authority
   a metropolitan county passenger transport authority
   the London Waste Regulation Authority
   the West London, North London, East London and Western Riverside Waste Disposal Authorities
   the Merseyside and Greater Manchester Waste Disposal Authorities
   the London Residuary Body
   a metropolitan county residuary body
•  a new town or urban development corporation
• the Commission for the New Towns
• the Development Board for Rural Wales
• a housing action trust
• a Registered Social Landlord which is registered with the Housing Corporation or Housing for Wales (including charitable RSLs and RSLs which do not get public funds, but not fully mutual co-ops)
• The Housing Corporation 
• Housing for Wales
• Fire authorities
• Internal drainage boards
• London Regional Transport
• Parish councils
• Passenger transport executives
• Police authorities
• AFRC Institute for Grassland and Animal Production
• Agricultural and Food Research Council
• Area Electricity Boards
• British Airports Authority
• British Broadcasting Corporation 
• British Coal Corporation
• British Gas Corporation British Railways Board
• British Steel Corporation British Waterways Board
• Central Electricity Generating Board Church Commissioners
• Civil Aviation Authority
• Electricity Council
• English Sports Councils
• Government Departments+
• Historic Buildings and Monuments Commission for England
• Lake District Special Planning Board
• Lee Valley Regional Park Authority
• Medical Research Council
• National Bus Company
• National Health Service Trusts
• National Rivers Authority
• National Environment Research Council
• Nature Conservancy Council for England
• Peak Park Joint Planning Board
• Post Office
• Science and Engineering Research Council
• Trinity House ++
• United Kingdom Atomic Energy Authority
• United Kingdom Sports Council
• Water Authorities
• Community councils in Wales
• Countryside Council for Wales
• National Library of Wales
• National Museum of Wales
• Sports Council for Wales
• Welsh Development Agency
• Commissioners of Northern Lighthouses
• Highlands and Islands Enterprise Board
• North of Scotland Hydro-Electric Board
• Scottish Homes
• Scottish Natural Heritage
• Scottish Sports Council
• South of Scotland Electricity Board
• Education and Library Boards in Northern Ireland
• Fire Authority for Northern Ireland
• Northern Ireland Electricity Service
• Northern Ireland Housing Executive
• Northern Ireland Transport Holding Company
• Police Authority for Northern Ireland
• Sports Council for Northern Ireland
    AND ANY PREDECESSOR OF THESE LANDLORDS 
    + Includes National Health Service properties
    ++ Only in its capacity as a lighthouse authority 

2.2 Armed forces accommodation

For the purposes of establishing a qualifying public sector tenancy, time spent   in accommodation provided by the armed services qualifies. 

 
3. REFUSAL OF A SHB APPLICATION DUE TO ANTI-SOCIAL BEHAVIOUR

3.1  Sections 192 -193 of the Housing Act 2004 introduced provision from June 6th 2005 for Right to Buy/Acquire applications to be suspended on the grounds of anti-social behaviour. In RTB/RTA cases RSLs may apply to a court for a ‘suspension order’. Whilst Social Homebuy is not a statutory scheme, the same principles as introduced by the Housing Act 2004 to RTB/RTA applications will apply to SHB applications.  Where a ‘suspension order’ exists in respect of RTB/RTA, RSLs should apply a ‘suspension status’ to Social HomeBuy applications also.  RSLs should also consider the application of ‘suspension status’ to other applications as necessary. 
 
 
3.2  When producing their SHB sales policy (see Social Homebuy 07 , 2.1) RSLs should include guidance regarding the possibility that ‘suspension status’ may be applied to relevant tenancies. The application of a  ‘suspension status’ may be considered only if RSLs are satisfied that the tenant or a person living in the property, or visiting the property, has engaged or threatened to engage in anti-social behaviour (which includes using the premises for unlawful purposes), and that it is reasonable for a ‘suspension status’ to be applied.  The reasoned consideration of and application of a ‘suspension status’ to a tenancy should be fully documented and the existing tenants notified that it has been applied to their tenancy for SHB purposes. 
 
 
3.3  Following a SHB application RSLs will need to decide whether a ‘suspension status’ should be applied in respect of the tenancy. Once applied,  ‘suspension status’ will have the effect of suspending an existing Social HomeBuy application and purchase grant claim and/or preventing new applications and claims being made during the period the ‘suspension status’ covers. RSLs may also consider whether it would be appropriate for any existing ‘suspension status’ to be extended. 
 
 
3.4  Formal consideration of applying a ‘suspension status’ will also remove RSLs obligations to complete sales (e.g. convey the freehold or grant a lease) during this consideration and also while the application for a ‘suspension order’ in respect of statutory RTB/RTA schemes is pending. Having submitted an application for a ‘suspension order’, RSLs are under no obligation to complete a Social HomeBuy sale until such time as they decide not to apply a ‘suspension order’, or withdraw it.  
 
 
3.5 The existence of a ‘suspension order’ or ‘suspension status’ does not affect the accumulation of a tenant’s purchase grant qualifying period.
 
 
 
3.6  As explained at SHB-6 para 1.4 some tenants may be eligible to apply for  SHB whilst also having the Right to Buy or Acquire. Tenants cannot apply to buy  under both statutory and voluntary schemes, but when processing SHB applications  RSLs will need to take into account which of the following categories a SHB applicant falls into:
o SHB applicants who may have title to RTB/RTA and who are already subject to a ‘suspension order’
o SHB applicants who could be subject to an application for a RTB/RTA ‘suspension order’ during their SHB claim and sales process
o SHB applicants who don’t currently have the Right to Buy/Acquire but are in the process of meeting the two/five year tenancy qualification period and could  not be the subject of a ‘suspension order’ until they qualify for RTB/RTA but where RSLs may wish to apply a ‘suspension status’
o SHB applicants who don’t have the Right to Buy/Acquire and will therefore never  be the subject of a ‘suspension order’ but where RSLs may wish to apply a ‘suspension status’

As advised in para 3.1 above where a RTB/RTA ‘suspension order’ already exists RSLS should apply a ‘suspension status’ in respect of SHB applications. Where RSLs are in the process of applying for a RTB/RTA ‘suspension order’ they should simultaneously consider applying a ‘suspension status’ to any SHB applications. .  
 
3.7 In cases of doubt RSLs should initially approach the Corporation for further guidance.