Commentary on provisions of Act Registered providers: insolvency, restructuring etc Section 12: Moratorium on disposal of land
Section 12 amends the moratorium process, including provision as to how and when the moratorium period commences and ends. During a housing moratorium, the prior consent of the regulator is required for disposals of a registered provider’s land. This protects social housing stock while solutions can be explored to support a provider experiencing financial difficulty.
	This is achieved in a new section 145 that sets out the events that trigger the commencement of a moratorium. These are:
Presentation of a petition for the winding up of a provider;
An application by the provider to pass a resolution for voluntary winding up;
Application for an administration order;
Notice of the appointment of an administrator; and
Notice of intention to enforce a security over the property of a provider.
	This modifies the existing position in relation to all but the last of the events mentioned above (where currently the moratorium is triggered by the giving of a notification to the regulator that a relevant event has occurred).
	Subsection (3) makes changes to section 146 relating to the ending of the moratorium by expiry of the relevant period (which is usually 28 days from the "relevant day" unless the moratorium is extended in accordance with section 146(3)). A housing moratorium can also be brought to an end by the making of an administration order or the cancellation of the moratorium in accordance with section 146(5).
	Section 12 widens the regulator’s powers to cancel a moratorium so the regulator can cancel it for any reason. Normal public law principles would apply to any cancellation decision which provides a safeguard against the regulator improperly cancelling a moratorium.
	Subsection (4) amends section 147(3) to provide that the regulator can impose a further moratorium where it has made reasonable enquiries but been unable to locate any secured creditors of the registered provider (as well as where secured creditors have been located and agreed to it). Subsection (3)(f) makes an amendment to enable the regulator to extend the moratorium in the same circumstances.
	Subsection (6) changes the process by which proposals about future management of a registered provider made during a moratorium are agreed. This is to provide a clear process for putting in place proposals and amending them if no secured creditors can be identified to agree to them. Subsection (6) also amends section 151 of the Housing and Regeneration Act 2008 to make clear that the appointment of an interim manager comes to an end when the regulator notifies the interim manager that proposals have been agreed.
	Subsection (7) clarifies that the regulator may give financial or other assistance to a registered provider during a moratorium to preserve the provider’s position until it decides whether or not to make proposals, and if it makes proposals, pending the agreement of proposals.