A Stratford co-operative housing association launched a High Court challenge today against a ruling that it must transfer its property to a non-co-operative social landlord following allegations of mismanagement.
Clays Lane Housing Co-operative Ltd, whose 450 members are tenants of its premises in Clays Lane, Stratford, is asking Keith J to quash a decision by the Housing Corporation ordering it to transfer its housing stock to the governors of the Peabody Trust.
Instead, it wants to merge with Scottish-based Tenants First Housing Co-operative, the UK’s largest fully mutual co-operative housing association.
The Housing Corporation had concluded that Clays Lane had been guilty of maladministration. But the association argues that those responsible no longer form part of its management.
It maintains that the new management team has substantially improved its finances, reduced unoccupied property, and introduced improved maintenance programmes.
The proposed merger would take the form of a takeover, with the management team of Tenants First taking overall strategic responsibility for the properties.
Counsel for Clays Lane, David Wolfe, told the judge: “In effect, by its decision of 24 July 2003, the Housing Corporation has compulsorily deprived Clays Lane Housing Co-operative of its property, rather than allowing it to deal with it as it wishes to do.”
He argued that both English common law and the European Convention on Human Rights provide “strong protections for property”, and strictly limit the ways in which property can be appropriated. He said that the Housing Corporation had acted “unlawfully”, in breach of both the common law and the Convention.
Keith J is expected to reserve his decision until a later date, and will probably give it in writing.
Clays Lane Housing Co-operative Ltd v The Housing Corporation Administrative Court (Keith J) 25 March 2004.
References: EGi Legal News 26/3/04