28.2 Management Agreements 194

28.2.1 In accordance with an approval dated [insert date] given by the Secretary of State under Section 27 (the Section 27 Consent), the Authority agrees that the Contractor shall exercise, such of the Authority's housing management functions in relation to Dwellings and Properties as shall be set out in Schedule 23 (Housing Management Functions) and such other housing management functions as shall be necessary to enable the Contractor properly to perform its obligations under this Agreement (the Housing Management Functions) (and this Agreement shall be a Management Agreement for the purpose of Section 27).

28.2.2 The Authority agrees that from the date of the Section 27 Consent that the Contractor is authorised to appoint the Sub-Contractors to exercise any Housing Management Function exercisable by the Contractor in relation to the Dwellings or Properties under this Agreement (and any Sub-Contract, or a replacement of the Sub-Contracts or a replacement of replacement sub-contracts containing Housing Management Functions shall be a Sub-Agreement for the purposes of this Agreement and Section 27).

28.2.3 Notwithstanding clauses 27 (Market Testing) and 63.3 (Assignment and Sub-Contracting) but subject to clause 28.2.5 (Management Agreements) the approval of the Authority (such approval not to be unreasonably withheld or delayed) and of the Secretary of State will be required for:-

(a) any variations or amendments to the provisions of this Agreement or a Sub-Agreement which are of a description specified in the Section 27 Consent;

(b) the making of any new Management Agreement or Sub-Agreement; and

and the Authority shall determine which Tenants with whom it is necessary to consult and shall undertake all consultation required by Law.

28.2.4 As stipulated by the Secretary of State in the Section 27 Consent the moratorium period for the purposes of Section 27 shall be 6 months commencing upon the termination of a Sub-Agreement (which shall be an emergency for the purposes of the RRO) and such additional period as may be further stipulated by the Secretary of State from time to time (the Moratorium Period).

28.2.5 The Contractor may make a new Sub-Agreement for a period no longer than a Moratorium Period without the approval of the Secretary of State but with the approval of the Authority (such approval not to be unreasonably withheld or delayed).

28.2.6 No later than [five (5)] Business Days after the termination of any Sub-Agreement where approval of the Secretary of State is required under Section 27, the Contractor shall provide to the Authority a copy of the proposed Sub-Agreement and the identity of the proposed new sub-contractor and all other necessary information which the Secretary of State will require to consider such an approval in accordance with applicable Guidance.

28.2.7 The Authority shall within [ten (10)] Business Days of receipt of the proposed Sub-Agreement and identity of the proposed sub-contractor and other information referred to in clause 28.2.6 (Management Agreements) commence to carry out the consultation of Tenants in accordance with Section 105 Housing Act 1985 and after the completion of such consultation the Authority shall (provided it has given its approval in accordance with clause 28.2.3 (Management Agreements)) submit an application for the approval for consideration by the Secretary of State.195

28.2.8 The Authority shall within [ten (10)] Business Days of receipt by the Authority of a request for any matter for which an approval of the Secretary of State is required, in accordance with clause 28.2.3 (Management Agreements) commence to carry out the consultation in so far as such consultation is required of Tenants in accordance with Section 105 Housing Act 1985 and after the completion of such consultation then provided all necessary information has been given to the Authority (in accordance with Guidance or otherwise) to enable the Secretary of State to consider the grant of an approval and that the Authority has itself given its approval in accordance with clause 28.2.3 (Management Agreements), the Authority shall submit the request to the Secretary of State.

28.2.9 If by the expiry of the Moratorium Period the Secretary of State has not given an approval to the matters contained in clause 28.2.3 (Management Agreements) then the Authority shall apply to the Secretary of State for an extension of the Moratorium Period and the Contractor shall be entitled to continue with the existing Sub-Agreement or make a new Sub-Agreement for a period no longer than the new Moratorium Period, and the procedure for obtaining such consent set out in this clause 28.2 (Management Agreements) shall re-apply.

28.2.10 If the Secretary of State fails to grant an extension of the Moratorium Period or if any Moratorium Period expires without having been extended and the Secretary of State has not given an approval to the matters contained in clause 28.2.3(b) (Management Agreements) or where the Secretary of State has not (where such has a material adverse affect upon the sub-contractor performing of its obligations under the Sub-Agreement) given an approval to the matters contained in clauses 28.2.3(a) (Management Agreements) or 28.2.3(c) (Management Agreements) then either the Authority or the Contractor may terminate this Agreement by 20 Business Days' written notice to the other and the Authority shall pay to the Contractor compensation in accordance with the provisions of clauses 42 (Force Majeure Compensation), 48.1 (Gross Up), 48.2 (Set Off on Termination and Exclusivity) and 49 (Method of Payment).

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194 Relevant only to HRA projects.

195 The Authority may wish to appoint the Contractor /Sub-Contractor to carry out the consultation.