Schedule 7: Special Measures Paragraph 2: Notification by regulator before applying for special measures order Effect
This paragraph sets out the procedure that the Building Safety Regulator must follow before applying for a special measures order.
	The Building Safety Regulator must notify persons, with information as set out in paragraph 2(3), that it proposes to put the building into special measures and intends to apply to the First-tier Tribunal to appoint a Special Measures Manager to carry out functions in place of any Accountable Person in the building.
	Paragraph 2(4) and (7) set out that where applicable, the notices must also include a copy of a financial management proposal for cases where payments need to be made to the Special Measures Manager by the Accountable Person. These notifications will be in the form of an initial notice and then a final notice - once a decision has been made. The initial notice will set out the proposed terms of the draft order and give reasons for the proposed application and allow a period in which representations from recipients can be made.
	Paragraph 2(2) and (4) set out that the Building Safety Regulator must give initial and final notices of the proposal to the following persons listed below:
Each Accountable Person for the building;
Each resident aged 16 year or older of the building;
Each owner of a residential unit in the building;
Any managing agent of the building in scope, or any part of it;
A recognised tenants’ association for the building, as defined by s.29 of the Landlord and Tenant Act 1985;
A manager appointed under s.24 of the Landlord and Tenant Act 1987;
The fire and rescue authority for the area in which the building is situated;
The local housing authority for the area in which the building is situated;
The regulator of social housing (if the Accountable Person is a registered provider); and
Where the building is in mixed use, the Responsible Person under the Regulatory Reform (Fire Safety) Order 2005, of that part of the building which is occupied for business purposes.
	Paragraph 2(12) gives a power to the Secretary of State to amend the list of persons detailed above by way of regulations.
	Paragraph 2 specifies the content that must be included in the notice, including the way in which persons can submit comments and observations, to the Building Safety Regulator about the proposals for special measures. The Building Safety Regulator must then decide whether to make the application to the First-tier Tribunal and communicate its final decision with those persons it notified of its intention to do so. The Building Safety Regulator must comply with paragraph 2 (5) to (7) before making an application for a special measures order. These sub-paragraphs require that the Building Safety Regulator must decide whether to make an application for special measures and give final notice of that decision, together with any financial management proposal. That notice must also include the reasons for its final decision and, if necessary, also set out the final terms of the proposed special measures order which the Tribunal will be asked to make.
	Paragraph 2(9) provides that with regard to the duties under sub-paragraph (2), (4), (5)(b) or (7), the Building Safety Regulator only has to notify those it has knowledge of and has taken reasonable steps to make itself aware of.
	Paragraph 2(10) clarifies references made in Paragraph 2 on the meaning of "relevant part" and "financial management proposal"
	Paragraph 2(11) gives the power to the Secretary of State to make provisions in regulations about the form of the notices and the way in which the notices must be given.
	The circumstances in which a Special Measures Manager can be appointed and the functions they can be given are set out in paragraph 4.