(i) dedicated as a highway or open space; or

(ii) appropriated, sold, or let for the erection of dwellings for the working classes; or

(iii) exchanged with other neighbouring land which is more suitable for the erection of such dwellings, and on exchange will be appropriated, sold, or let for such erection;

[If the obstructive building adjoining a dwelling house can be demolished separately, then a provisional order must be obtained to deal with the dwelling house and clear the area for an open space].

Improvement scheme for small area.

or (b) where it appears to the local authority that the closeness, narrowness, and bad arrangement or bad condition of any buildings, or the want of light, air, ventilation, or proper conveniences, or any other sanitary defect in any buildings is dangerous or prejudicial to the health of the inhabitants either of the said buildings or of the neighbouring buildings, and that the demolition or the reconstruction and re-arrangement of the said buildings or of some of them is necessary to remedy the said evils, and that the area comprising those buildings and the yards, outhouses, and appurtenances thereof, and the site thereof, is too small to be dealt with as an unhealthy area under Part I of this Act,

the local authority shall pass a resolution to the above effect and direct a scheme to be prepared for the improvement of the said area.

Notice of scheme.

(2) Notice of the scheme may at any time after the preparation thereof be served in manner provided in Part I of this Act with respect to notices of lands proposed to be taken compulsorily under a scheme made in pursuance of that part of this Act, on every owner or reputed owner, lessee or reputed lessee, and occupier of any part of the area comprised in the scheme, so far as those persons can reasonably be ascertained.

Proceedings for obtaining sanction to scheme.

(3) The local authority shall, after service of such notice, petition the Local Government Board for an order sanctioning the scheme, and the Board may cause a local inquiry to be held, and, if satisfied on the report of such local inquiry that the carrying into effect of the scheme, either absolutely or subject to conditions or modifications, [sec. 40 provides for erection of dwellings for displaced population] would be beneficial to the health of the inhabitants of the said buildings or of the neighbouring dwelling houses, may by order sanction the scheme with or without such conditions or modifications.

Clearing of area by local authority.

(4) Upon such order being made, the local authority may purchase by agreement the area comprised in the scheme as so sanctioned, and if they agree for the purchase of the whole area, the order, save so far as it provides for the taking of land otherwise than by agreement, shall take effect without confirmation. If they do not so agree, the order shall be published by the local authority by inserting a notice thereof in the London Gazette, and by serving notice thereof on the owners of every part of the area.

(5) Any owner may, within two months after such publication, petition the Local Government Board against the order, and if such petition is presented and is not withdrawn, the order shall be provisional unless it is confirmed by Act of Parliament.

Confirmation of an unopposed order without going to Parliament.

(6) If the Local Government Board are satisfied that the order has been duly published, and that two months after such publication have expired, and that either a petition has not been presented, or if presented has been withdrawn, they shall confirm the order, and thereupon such order shall come int▷ operation, and have effect as if it were enacted by this Act.

(7) The order may incorporate the provisions of the Lands Clauses Acts, and for the purpose of those provisions this Act shall be deemed to be the special Act, and the local authority to be the promoters of the undertaking, and the area shall be

acquired within three years after the date of the confirmation of the order: Provided that the amount of compensation shall, in case of difference, be settled by arbitration in manner provided by this part of this Act. [Sec. 41).

Application of various provisions of Part I of the Act.
[Secs. 9, 12, 13, and 22].

(8) The provisions of Part I of this Act relating to costs to be awarded in certain cases by a committee of either House of Parliament, to the duty of a local authority to carry a scheme when confirmed into execution, to the completion of a scheme on failure by a local authority, and to the extinction of rights of way and other easements, shall, with the necessary modifications, apply for the purpose of any scheme under this section in like manner as if it were a scheme under Part I of this Act.

Modification of scheme.

(9) The Local Government Board, on being satisfied by the local authority that an improvement can be made in the details of any scheme under this section, may by order permit the local authority to modify any part of the scheme which it may appear inexpedient to carry into execution : Provided that—

(a) if the order sanctioning the scheme was confirmed by Parliament, a statement of such modification shall be laid by the Local Government Board before both Houses of Parliament as soon as practicable;

and (b) in any case, if the modification requires a larger expenditure than that sanctioned by the original scheme, or authorises the taking of any property otherwise than by agreeement, or injuriously affects any property in a manner different from that proposed in the original scheme, without the consent of the owner or occupier of such property, notice of the order authorising the modification shall be published, and the order may be petitioned against and shall be subject to confirmation in like manner as if it were an order sanctioning an original scheme under this section.

Provisions for accommodation of persons of the working classes.

40. The Local Government Board shall in any order sanctioning a scheme under this part of this Act require the insertion in the scheme of such provisions (if any) for the dwelling accommodation of persons of the working classes displaced by the scheme as seem to the Board required by the circumstances.

SETTLEMENT OF COMPENSATION.

Provisions as to arbitration.

41. In all cases in which the amount of any compensation is, in pursuance of this part of this Act, to be settled by arbitration, the following provisions shall have effect; (namely)

(1) The amount of compensation shall be settled by an arbitrator to be appointed and removable by the Local Government Board.

Estimation of value.

(2) In settling the amount of any compensation

(a) The estimate of the value of the dwelling house shall be based on the fair market value as estimated at the time of the valuation being made of such dwelling house, and of the several interests in such dwelling house, due regard being had to the nature and then condition of the property and the probable duration of the buildings in their existing state, and to the state of repair thereof, and without any additional allowance in respect of compulsory purchase:

Deductions from value.

and (b) The arbitrator shall have regard to and make an allowance in respect of any increased value which, in his opinion, will be given to other dwelling houses of the same owner by the

alteration or demolition by the local authority of any buildings. [Kind of Betterment Clause (not in Part I Schemes), and apparently does not affect owners whose land is not taken].

(3) Evidence shall be receivable by the arbitrator to prove

(1st) that the rental of the dwelling house was enhanced by reason of the same being used for illegal purposes or being so overcrowded as to be dangerous or injurious to the health of the inmates;

or (2ndly) that the dwelling house is in a state of defective sanitation, or is not in reasonably good repair;

or (3rdly) that the dwelling house is unfit, and not reasonably capable
of being made fit, for human habitation;

and, if the arbitrator is satisfied by such evidence, then the compensation--
(a) shall in the first case so far as it is based on rental be based on
the rental which would have been obtainable if the dwelling
house was occupied for legal purposes and only by the number
of persons whom the dwelling house was under all the
circumstances of the case fitted to accommodate without such
overcrowding as is dangerous or injurious to the health of the
inmates;

and (b) shall in the second case be the amount estimated as the value
of the dwelling house if it had been put into a sanitary
condition, or into reasonably good repair, after deducting the
estimated expense of putting it into such condition or repair;
and (c) shall in the third case be the value of the land, and of the
materials of the buildings thereon.

(4) On payment or tender to the person entitled to receive the same of the amount of compensation agreed or awarded to be paid in respect of the dwelling house, or on payment thereof in manner prescribed by the Lands Clauses Acts, [into the Bank (see secs. 69-80, Lands Clauses Acts, 1845)] the owner shall, when required by the local authority, [at cost of local authority] convey his interest in such dwelling house to them, or as they may direct; and in default thereof, or if the owner fails to adduce a good title to such dwelling house to the satisfaction of the local authority, it shall be lawful for the local authority, if they think fit, to execute a deed poll in such manner and with such consequences as are mentioned in the Lands Clauses Acts.

(5) Sections 32, 33, 35, 36, and 37 of the Lands Clauses Consolidation Act, 1845, shall apply, with any necessary modifications, to an arbitration and to an arbitrator appointed under this part of this Act. [These sections apply to acquisition of land under Part III, and also to the new Act of 1900]. (6) The arbitrator may, by one award, settle the amount or amounts of compensation payable in respect of all or any of the dwelling houses included in one or more order or orders made by the local authority; but he may, and, if the local authority request him so to do shall, from time to time make an award respecting a portion only of the disputed cases brought before him.

(7) In the event of the death, removal, resignation, or incapacity, refusal, or neglect to act of any arbitrator before he shall have made his award, the Local Government Board may appoint another arbitrator, to whom all the documents relating to the matter of the arbitration which were in the possession of the former arbitrator shall be delivered.

Costs in discretion of arbitrator to save taxing them, except in cases coming under sub. sec. 9.

(8) The arbitrator may, where he thinks fit, on the request of any party by whom any claim has been made before him, certify the amount of the costs properly incurred by such party in relation to the arbitration, and the amount of the costs so certified shall be paid by the local authority.

(9) The arbitrator shall not give such certificate where the arbitrator has awarded the same or a less sum than has been offered by the local authority in respect of such claim before the appointment of the arbitrator, and need not give such certificate to any party where he considers that such party neglected, after due notice from the local authority, to deliver to that authority a statement in writing within such time, and containing such particulars respecting the compensation claimed, as would have enabled the local authority to make a proper offer of compensation to such party before the appointment of the arbitrator.

(10) If within seven days after demand the amount so certified be not paid to the party entitled to receive the same, such amount shall be recoverable as a debt from the local authority with interest at the rate of five per cent. per annum for any time during which the same remains unpaid after such seven days as aforesaid.

(11) The award of the arbitrator shall be final and binding on all parties. [Subject to the statement of a special case].

EXPENSES AND BORROWING.

42.-(1) All expenses incurred by a local authority in the execution of this part of this Act shall be defrayed by them out of the local rate; [see sec. 92 and Sched. I and that authority, notwithstanding any limit contained in any Act of Parliament [presumably a local Act] respecting a local rate, may levy such local rate, or any increase thereof, for the purposes of this part of this Act.

Expenses of rural district council to be "special."

(2) Any expenses incurred by a rural sanitary authority under this part of this Act, other than the expenses incurred in and incidental to proceedings for obtaining a closing order, [these will be "general," see secs. 229-232, Public Health Act, 1875] shall be charged as special expenses on the contributory place in respect of which they are incurred.

Provision as to borrowing outside London.

43.-(1) A local authority may borrow for the purpose of raising sums required for purchase money or compensation payable under this part of this Act in like manner, and subject to the like conditions, as for the purpose of defraying the expenses of the execution by such authority of the Public Health Acts.

(2) The Public Works Loan Commissioners may, if they think fit, lend to any local authority the sums borrowed in pursuance of this part of this Act.

[This section extended by Housing Act, 1894, to a scheme for reconstruction].

Annual account to be presented by the local authority.

44. Every local authority shall every year present to the Local Government Board, in such form as they may direct, an account of what has been done, and of all moneys received and paid by them during the previous year, with a view to carrying into effect the purposes of this part of this Act. [In London to be deemed a special report, and copies sent to Local Government Board and County Council].

POWERS OF COUNTY COUNCILS.

Information to be given to county councils by rural district councils and borough councils in London, but not by urban districts and boroughs elsewhere.

45.—(1) Where the medical officer of health or any inhabitant householders make a representation or complaint, or give information to any vestry or district board in the administrative county of London or to the local board of Woolwich, [now borough councils] or to any rural sanitary authority elsewhere (which vestry, board, or authority is in this Act referred to as the district authority), or the medical officer of such authority, either respecting any dwelling house being in a state so dangerous or injurious to health as to be unfit for human habitation, or respecting an obstructive

building, and also where a closing order has been made as respects any dwelling house, the district authority shall forthwith forward to the county council of the county in which the dwelling house or building is situate, a copy of such representation, complaint, information, or closing order, and shall from time to time report to the council such particulars as the council require respecting any proceedings taken by the authority with reference to such representation, complaint, information, or dwelling house."

Vesting powers in the county council where local authority is in default. (2) Where the county council

(a) are of opinion that proceedings for a closing order as respects any dwelling house ought to be instituted, or that an order ought to be made for the demolition of any buildings forming or forming part of any dwelling house as to which a closing order has been made, or that an order ought to be made for pulling down an obstructive building specified in any representation under this part of this Act;

and (b) after reasonable notice, not being less than one month, of such opinion has been given in writing to the district authority, consider that such authority have failed to institute or properly prosecute proceedings, or to make the order for the demolition, or to take steps for pulling down an obstructive building;

the council may pass a resolution to that effect, and thereupon the powers of the district authority as respects the said dwelling house and building under this part of this Act (otherwise than in respect of a scheme), shall be vested in the county council, [see, however, case of London County Council, sec. 46 (5)] and if a closing order or an order for demolition or for pulling down an obstructive building is made, and not disallowed on appeal, the expenses [other than those of ordinary servants of the county council] of the council incurred as respects the said dwelling house and building, including any compensation paid, shall be a simple contract debt to the council from the district authority.

(3) Any debt to the council under this section shall be defrayed by the district authority as part of their expenses in the execution of this part of this Áct.

Power of county council to inspect premises.

(4) The county council and any of their officers shall, for the purposes of this section, have the same right of admission to any premises as any district authority or their officers have for the purpose of the execution of their duties under the enactments relating to public health, and a justice may make the like order for enforcing such admission.

SPECIAL PROVISIONS AS TO LONDON.

[See also secs. 72 and 73].

46. This part of this Act shall apply to the administrative county of London with the following modifications:

(1) The provisions of the Public Health Acts relating to private improvement expenses and to private improvement rates [secs. 213 to 215 Public Health Act, 1875] shall, for the purpose of this part of this Act, extend to the county and to the city of London, and in the construction of the said provisions, as respects the county of London, any local authority in that county, and as respects the city of London the Commissioners of Sewers, shall be deemed to be the urban authority.

Borrowing in London.

(2) The raising of sums required for purchase money or compensation payable under this part of this Act shall be a purpose for which the London County Council or the Commissioners of Sewers of the city of London may borrow under Part I of this Act, [sec. 25, sub. secs. (2) and (3)] and a purpose for which a vestry or district board may borrow under the Metropolis Management Act, 1855, and the provisions of Part I of this Act with respect to borrowing, and sections 183 to 191 of the Metropolis Management Act, 1855, shall apply and have effect accordingly.