Corporation may get new powers to enforce charity law

The draft Charities Bill, published on 27 May, would make the Housing Corporation responsible for checking that charitable associations not registered with the Charity Commission adhere to charity law. At present, it only regulates these so-called "exempt charities".

But housing law experts believe a new role policing charity law would lead to increased bureaucracy.

Sarah Hayes, partner at Trowers and Hamlins, said: "Will the Housing Corporation will be obliged to make charities comply with their charitable objectives? The Housing Corporation has never had to think through that test before."

Under the draft bill, the Charity Commission would get powers to investigate associations if requested to do so by the Housing Corporation.

Some housing law experts believe involving the Charity Commission in the affairs of troubled associations could delay remedial action.

The draft bill also sets forth options on the registration of charities. It suggests all charities could be compelled to register with the commission, or that only those that are companies or industrial and provident societies not registered with the Housing Corporation should be obliged to register.

It had been expected that the draft bill would designate social housing as a charitable objective for the first time. However, Hayes thought this measure did not make it into the draft bill because it was too difficult to provide an accurate definition of social housing.