Q&A - Residents Associations 

ANSWER

“Thank you for your enquiry.  Usually (although not always) a residents’ association will be formed by tenants or lessees who hold tenancies/leases from the same landlord which include provisions for the payment of variable service charges.  A group of freeholders in the same estate may also form a residents’ association and I understand this is the case on your private estate?  I have not seen the title documentation / structure set up and whilst I understand there are management problems, which party is the cause of these management problems? 

The association has a right to be recognised either voluntarily by the “landlord” or compulsorily through the Rent Assessment Panel.  To be most effective a residents’ association should really be formally recognised.  As this is a private estate – without knowing the details of the title structure I am unsure whether you have a “landlord” in the usual sense or whether you are all freeholder owners in the true sense. 

Without looking at the title set up it is difficult to advise as to whom Recognition should be obtained.  If you a group of leasehold house owners, recognition would need to be obtained from your “landlord”.  If however you are freehold house owners, then recognition from the councillors of your ward may be sufficient (depending on the title structure) however to be on the safe side, it may be advisable to seek formal recognition from the Rent Assessment Panel.

FORMAL PROCEDURE TO OBTAIN RECOGNITION FROM THE RENT ASSESSMENT PANEL

If the “landlord” refuses to grant your association recognition, it has the legal right to ask a Rent Assessment Panel to grant it the status of a recognised residents’ association.

Before applying for recognition from a Rent Assessment Panel, it may be advisable that a formal resolution to this effect is passed by the Committee or by a General Meeting and duly minuted in case the Panel requires it.

The procedure used by the Rent Assessment Panel is set out in their booklet called “Tenants’ Associations “ Booklet about how Panels recognise associations, free from the Residential Property Tribunal Service. 

The Rent Assessment Panel have a standard application form which can be obtained from one of the Panel offices.

The completed application form must also be accompanied by:

1)                  copy constitution of the association;

2)                  list of subscribing members’ names and addresses;

3)                  description of the properties whose tenants will be eligible for membership and their addresses;

4)                  copies of previous relevant correspondence with the landlord regarding recognition.

When an application is in order the landlord is notified by the Panel and given 14 days in which to comment on the submission.  The Panel will also send the landlord a copy of application form and a copy of the Constitution unless the association has requested that a particular document should be withheld.  

From experience the London Rent Assessment Panel will not now withhold from the landlord the Association’s membership list.   If the Association refuses to agree to such disclosure the RAP in London will not confer a certificate of recognition.   

In broad terms the Panel will need to be satisfied:

• that the constitution is fair and democratic in that there it covers:
• openness of membership (election of officers)
• payment and amount of subscriptions
• notice of meetings, voting arrangements and quorum
• independence from the landlord
• members that are paying variable service charges are able to vote on matters relating to the service charge

If the Panel is minded to grant recognition it will issue a Certificate of Recognition to the secretary of the Association.  A copy will also be sent to the landlord.  The length of validity is at the Panel’s discretion but will usually be for four years.  When the certificate expires, the association can apply for renewal.  It is open to the Panel to cancel a certificate at any time if it is considered that for some reason the association no longer merits recognition.

In the event of refusal both the landlord and the association will be informed of the reasons for the decision.  

A new application can be made once the association has corrected the defects in its previous submission.   Changes to the Constitution and Rules, however, can only be made at a general meeting.

Yashmin Mistry is a Partner at JPC Law