Section 16 inserts Schedule 2ZA (Financial penalties under sections 16I and 16K) into the Housing Act 1988. Paragraphs 1 and 2 impose a duty on a local housing authority to issue a notice of intent before imposing a financial penalty on a person under sections 16I or 16K within specific timeframes. The notice must be issued either within six months of the local housing authority collecting sufficient evidence of the conduct to which the financial penalty relates or, if the person is continuing the conduct, any time during the period that the conduct is continuing or within six months of the conduct ending. Paragraph 3 details the information the notice must include, for example the amount of the proposed penalty and information about the person’s right to make representations.
	Paragraph 4 provides that a person who is given a notice of intent has the right to make written representations to the local housing authority about the proposed fine within 28 days of the notice being served.
	Paragraphs 5, 6, 7 and 8 set out the procedure the local housing authority must follow once the period during which written representations can be made has ended. The local housing authority must decide whether to issue a financial penalty and the amount. If they decide to issue a penalty, the local housing authority must give the person a final notice imposing the penalty. The final notice must set out certain information, including the reasons for imposing the penalty, how to pay the penalty, information about rights of appeal, and the consequences of failure to comply with the notice.
	Paragraph 9 provides for a local housing authority to withdraw a notice of intent or final notice or reduce the amount of the financial penalty. A decision to do so must be communicated to the person in writing.
	Paragraph 10 sets out the appeals process for a person who has been issued a final notice. They may appeal to the Tribunal within 28 days from the day after the date the final notice was given. The Tribunal can either confirm, vary, or cancel the fine. Varying the fine means the Tribunal can either reduce the fine or increase it up to the statutory maximum fine stipulated in sections 16I and 16K. If a person appeals the local housing authority’s decision, the final notice is suspended until the appeal is determined, withdrawn, or abandoned. The appeal may take into account additional evidence of which the enforcement authority was unaware.
	Paragraph 11 details the process that local housing authorities should follow to recover unpaid fines. Should a person fail to pay all or part of a fine, the local housing authority can recover the unpaid amount by obtaining a county court order. In county court proceedings, a signed certificate by the chief finance officer of the local housing authority confirming the amount has not been paid is conclusive evidence of that fact.
	Paragraphs 12, 13 and 14 provide for how local housing authorities may use the proceeds of financial penalties. Local housing authorities may use the proceeds towards costs and expenses associated with carrying out enforcement functions relating to the private rented sector. Any proceeds not used for this purpose must be paid to the Secretary of State.
Part 1: Tenancy reform Chapter 1: Assured Tenancies Section 16: Financial penalties: procedure, appeals and enforcement Effect