1 ELIGIBLE PROPERTIES

1.1  The purchase grant only applies to secure and assured tenants occupying self contained accommodation for rent. Assured shorthold tenancies, those who   hold long leases or tenants of shared accommodation will not be eligible for the scheme. See RTA 02
 
1.2  The RSL may dispose of self-contained properties for rent that are not    included in the list of exempted properties below

 
 
2 EXCLUDED PROPERTIES

2.1 The RSL is obliged to exclude certain categories and in addition may  determine other categories. The RSL is required to publish their sales policy  making it clear to applicants which properties are excluded from the scheme  and which areas they will be operating the scheme in.
 
 
2.2 Properties to be excluded from SHB include the following:

• properties where the landlord has insufficient legal interest i.e. where the property is a house, a lease with a term less than 21 years and for a flat, a lease with a term less than 50 years;
  
• the landlord is a co-operative housing association;
  
• properties situated in a rural area designated by order of the Secretary of State under Section 17(1)(b) (Right to Acquire: Supplementary Provisions) of the Housing Act 1996 ;
  
• properties let in connection with employment;
  
• properties designed with special features for letting to people with physical disabilities. To gain exemption the property should be one of a group of properties normally let to people with physical disabilities and a social service or special facility is provided close by wholly or partly to assist the tenants;
  
• properties with special facilities let to tenants who are suffering or have suffered from a mental disorder. As above the property must be one of a group of properties and a social service or special facility must be provided close by wholly or partly to assist the tenants;
  
• properties which are one of a group of properties which it is the practice of the landlord to keep for occupation by persons who have special needs and require intensive housing assistance and such intensive housing assistance is provided either directly or indirectly by the landlord;
  
• properties let to persons of pensionable age. Such properties must be one of a group of properties let to the elderly and have special facilities consisting of or including a resident warden, a non-resident warden with a calling facility and a common room close by;
  
• properties held on Crown tenancies;
  
• properties where the attributable loan debt is equal to or greater that its current market value.
  

2.3 RSLs are advised to take their own legal advice in determining whether properties may be excluded from the provisions of the purchase grant requirements for reasons additional to the above. 
  

3 RSLS' DISCRETION TO EXEMPT OTHER CATEGORIES OF PROPERTY

3.1 In addition to the mandatory exclusions listed above, the RSL may exclude other categories of properties. Examples are where, because of their type or location, they would be difficult to replace.  However, RSL’s should remember that they have the opportunity to exercise the right of first refusal in respect of future re-sales and therefore should limit the exercise of this restriction as far as possible.  The RSL may decide to target properties for sale where it wishes to introduce tenure mix on an estate.
 
3.2 The RSL has complete discretion over which properties it decides to include in the scheme in each local authority area but must draw up a published policy, specifying a list of properties, or types of properties, that are excluded from the programme which is available to tenants and can be seen to be operated on a fair and consistent basis. It would not be acceptable, for example, for the RSL to decide whether to sell on a case-by-case basis in response to demand from individual tenants. Once published, the policy must stay in place for the whole programme to which it applies.  However, the RSL can vary the list of eligible properties that it would wish to include in the scheme during the programme period subject to the agreement of the HC regional office.  Where a tenant has received a formal offer provided that the tenant responds within 8 weeks and otherwise complies with the requirements of the scheme, they must be allowed to complete the purchase even if the policy has changed and that property is now in an exempt category.
 
3.3 When drawing up their policy (which has to be in place at the beginning of the sales and marketing programme), the participating RSL should consult the local authorities in which it is proposing to offer SHB to its tenants. If no policy is in place by the start of the sales and marketing programme, it will be assumed that all properties in that local authority will be included in the scheme, other than those covered by the mandatory exemptions
 
3.4 Other examples of categories the RSL may consider for exclusions are:

• homes where the current value is below the cost of provision, including the costs of rehabilitation or conversion but not repair;
  
• homes subject to restrictive covenants or agreements regarding their continued use, excluding nomination agreements which are not part of a Section 106 agreement or similar covenant;
  
• homes where the RSL is carrying out major works improvement or can demonstrate that the contract will be let within the  next three years.