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Explanatory Memorandum to Housing (Amendment) (Northern Ireland) Order 2006

Commentary on Articles

A brief commentary on Article 3 and Schedule is provided below. Comments are not given where the wording is self-explanatory.

Article 3introduces the Schedule to the Order.

The Schedule contains provisions about arrangements for the payment and recovery of grant made to registered housing associations.

Paragraph 1 of the Schedule introduces the amendments to the Order of 1992.

Paragraph 2 of the Schedule amends Article 4(1)(c) of the Order of 1992 to remove considering applications for and making grants to registered housing associations from the Department’s functions.

Paragraph 3 of the Schedule substitutes new paragraphs for paragraphs (1) to (3) of Article 33 of the Order of 1992. This amendment will allow the Executive to make housing association grants under Article 33(1) to all registered housing associations, except those which are designated by the Department under Article 33A (1).

Under Article 33 (2) the Department may give directions to the Executive as regards the procedure, circumstances and method of calculating payment of grant.

Paragraph 4 of the Schedule inserts a new Article 33A into the Order of 1992. It provides that the Department may designate any registered association and where it designates an association it must specify the activities in relation to which the designation has effect. The Department will continue to pay grant to designated associations and may specify the procedure, circumstances and conditions for the payment of such grants.

Paragraph 5 of the Schedule makes a consequential amendment to Article 34 of the Order of 1992. That Article provides that the Department may pay revenue deficit grant to registered housing associations.

Paragraph 6 of the Schedule amends Article 35 of the Order of 1992. The Executive may recover any grant made under Article 33 of that Order before the commencement of Article 3 of this Order to a registered housing association (other than a designated association), and may recover any grant made under that Article after that commencement. The Department may recover any grant made under Article 33 of that Order before the commencement of Article 3 of this Order to a registered housing association which is a designated association, and may recover any grant made under Article 33A of that Order.

Paragraph 7 of the Schedule amends the definition of “public subsidy” in section 130(7) of the Finance Act 2000 to include grants made under Article 33A of the Order of 1992. The amendment ensures that stamp duty will continue not to be chargeable where any registered housing association purchases land with the assistance of a public subsidy.

Paragraph 8 of the Schedule makes a similar amendment to the definition of “public subsidy” in section 71 of the Finance Act 2003. The amendment continues exemption from stamp duty land tax for land transactions where the purchaser is a registered housing association funded with the assistance of a public subsidy.

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