Section 20 consultation and subsidiaries — another dilemma

By Emma Duke

One of the early decisions of the First-Tier Tribunal Property Chamber (which replaced the Leasehold Valuation Tribunal) has illustrated another complication in the already tangled web of meeting both leaseholder consultation and EU procurement requirements. This complication arises in the context of subsidiary companies (including ALMOs and DLOs that are based in a separate organisation from the landlord) undertaking works for social landlords.

An application was made by the London Borough of Hackney (the ‘council’) in relation to a proposed contract between the council and its ALMO Hackney Homes Ltd (HHL). The proposed contract was for up to five years and required HHL decorate the external and communal parts of the council’s housing stock.

Despite there being no need to tender the work (since it was being awarded to an ALMO), the council chose to tender the work via the Official Journal of the European Union (OJEU). HHL won the tender for the contract…

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