Section 15 inserts new sections 16I, 16J, 16K and 16L into the Housing Act 1988 to set out the financial penalties and offences for the breach of the prohibitions inserted into the 1988 Act by sections 12 and 13, including those relating to the misuse of possession grounds and for not providing a written statement of terms.
	Section 16I (Financial penalties) sets out that a local housing authority will be able to impose a financial penalty if satisfied beyond reasonable doubt that a person (i.e. landlord, former landlord or other relevant person) has contravened prohibitions inserted into the 1988 Act by sections 12 or 13.
	Subsection 16I(2) provides that where a landlord has already provided a written statement of terms, a person contracted by that landlord cannot be fined for non-compliance only by virtue of 16D(8). Subsection 16I(3) provides that if certain conditions are met then more than one financial penalty may be imposed on the same person in relation to the same conduct for a breach under section 16D. These conditions are that the contravention continues for more than 28 days, either after a final notice for a penalty is given or after the person appeals the penalty and it is determined to be unsuccessful. Subsection 16I(5) provides that a local housing authority cannot, for example, impose two financial penalties on a person both for attempting to end a tenancy by serving a tenant a notice to quit as well as for issuing a purported notice of possession where they arise from the same conduct. In this example, the local housing authority should choose one or the other when imposing a financial penalty.
	The amount of the financial penalty imposed is to be determined by the local authority imposing it but must not be more than £7,000 (subsection 16I(6)). Subsection 16I(7) provides that a local authority may impose a joint financial penalty for the same contravention where persons have acted on behalf of others and the local authority is satisfied beyond reasonable doubt that more than one of the persons is guilty of the contravention; each person is jointly and severally liable to pay the fine.
	Subsection 16I(8) provides for circumstances where a financial penalty cannot be imposed, including where a person has been prosecuted for an offence under section 16J in respect of the same conduct and where a financial penalty has been imposed under section 16K as an alternative to prosecution. Subsections 16I(9) and 16I(10) enable the Secretary of State to provide guidance on imposing financial penalties that local housing authorities must have regard to when they are undertaking enforcement activity under this section. Subsection 16I(11) specifies the date on which a financial penalty is imposed.
	Section 16J (Offences) sets out the different conduct which will constitute an offence. Under subsection 16J(1), a person commits an offence by using a possession ground knowing that the landlord would not be able to get a court order for possession using that ground, or they are reckless as to whether the landlord would be able to. This only becomes an offence if the tenant surrenders the tenancy within 4 months of the date the ground was relied upon and an order for possession is not made at that time.
	Under subsection 16J(2), a person commits an offence where they contravene subsections 16E(2) or (3) (when seeking to rely on possession grounds 1 and 1A) by letting or marketing the property within the restricted period, unless the person, who is not the landlord, can prove that they took all reasonable steps to avoid contravening those subsections.
	Under subsection 16J(3), a person commits an offence relating to a continuing breach, if they have not complied with a requirement, have received a financial penalty for that prohibited conduct (a "relevant penalty") and continue the same conduct for more than 28 days thereafter (assuming the final notice has not been withdrawn and any appeal has been determined or concluded). Under subsection 16J(4), a person commits an offence relating to a repeat breach, if they have not complied with a requirement, have received a financial penalty for prohibited conduct (a "relevant penalty") and within the next five years receive either a relevant penalty for different conduct or a conviction for an offence under section 16J for different conduct.
	Subsection 16J(5) defines "relevant penalty" for the purposes of subsections 16J(3) and (4). Subsection 16J(6) provides that a person may not be convicted of an offence under subsection 16J(1), (2) or (4) if a financial penalty has been imposed for the same conduct, under sections 16I or 16K. Subsections 16J(7), (8) and (9) provide that officers and members of bodies corporate that have committed an offence under section 16J may be liable to be prosecuted and punished accordingly, where it can be proven that they either consented to, connived in or were negligent as to the commission of an offence.
	Subsection 16J(10) provides that a guilty person is liable on summary conviction to a fine.
	Section 16K (Financial penalties as an alternative to prosecution under section 16J) provides that a local housing authority can impose a financial penalty of up to £40,000 if they are satisfied beyond reasonable doubt that a person has committed an offence under section 16J. Subsection 16K(2) provides for where a financial penalty cannot be issued, including if the person has already been convicted of a criminal offence under 16J for the same conduct, if criminal proceedings are ongoing, or if criminal proceedings have taken place and the person has not been found guilty. Subsection 16K(4) provides that a local housing authority can impose a joint penalty for the same contravention where persons have acted on behalf of others and the local housing authority is satisfied beyond reasonable doubt that more than one of the persons is guilty of the offence. All persons upon whom the penalty is imposed are jointly and severally liable to pay it.
	Subsections 16K(5) and 16K(6) give the Secretary of State powers to issue guidance on the imposition of financial penalties that local housing authorities must have regard to when they are undertaking enforcement activity under this section.
	Section 16L (Financial penalties: supplementary and interpretation) enables the Secretary of State to give financial assistance to local housing authorities to support their enforcement functions under 16I to 16K. It also gives the Secretary of State powers to amend the maximum penalty levels specified in sections 16I and 16K in regulations to reflect inflation. Regulations made under this power are subject to the negative resolution procedure.
	Subsection 16L(5) introduces Schedule 2ZA which provides more information on the procedures, appeals and enforcement processes of local authorities, as well as how local authorities are to deal with proceeds from fines.
Part 1: Tenancy reform Chapter 1: Assured Tenancies Section 15: Landlords etc: financial penalties and offences Effect