Housing Act 1969

21 Contributions for dwellings provided or improved by housing associations under arrangements with local authorities

(1) Where any arrangements between a local authority and a housing association under section 121 of the Act of 1957 (arrangements for provision of dwellings by conversion or for improvement of dwellings) are made after the passing of this Act the following provisions of this section shall apply (and accordingly section 12 of the [1958 c. 42.] Housing (Financial Provisions) Act 1958 and section 12 of the [1967 c. 29.] Housing Subsidies Act 1967 shall not apply).

(2) The approval of the Minister, both to the making of the arrangements and to the terms thereof, may be given either generally to local authorities or to any local authority or class of local authority or in any particular case and may be given unconditionally or subject to any conditions.

(3) The Minister shall pay a contribution towards the cost of carrying out the arrangements if an application therefor containing such particulars and estimates as the Minister may require is made by the local authority and the local authority certify, in such form as the Minister may direct, that the arrangements and the terms thereof comply with any conditions subject to which his approval was given, and that in their opinion the dwellings will provide satisfactory housing accommodation for such period and conform with such requirements with respect to construction and physical conditions and the provision of services and amenities as may for the time being be specified for the purposes of this section by the Minister.

(4) The Minister shall determine an amount as the allowable cost for the purposes of the contribution and that amount shall, subject to the limit imposed by or under the following provisions of this section, be one-half of the aggregate of—

(a) the amount certified by the local authority as appearing to them to be the cost proper to be incurred by the housing association for the purpose of executing any work required under the arrangements ; and

(b) the amount certified by the local authority as being the cost incurred by the housing association in acquiring any estate or interest in any building or dwelling with a view to entering into or for the purpose of carrying out the arrangements.

(5) Subject to subsection (6) of this section, the allowable cost shall not exceed the amount arrived at by taking for each dwelling provided or improved £1,000 or such other sum as the Minister may by order specify, unless the case belongs to a class with respect to which the Minister, on being satisfied that there is good reason for doing so, has determined a higher amount or the Minister is satisfied that in the circumstances of the particular case there is good reason for determining a higher amount.

(6) Where the dwelling is one in which the housing association have acquired an estate or interest with a view to entering into the arrangements or for the purpose of carrying them out or is a dwelling provided by the conversion of a house or other building in which the housing association have acquired an estate or interest with that view or for that purpose, subsection (5) of this section shall have effect, with respect to that dwelling, as if £1,250 or such other sum as the Minister may by order specify were substituted for that specified by or under that subsection.

(7) The contribution shall be a sum payable annually for a period of twenty years beginning with the financial year in which the works carried out in pursuance of the arrangements are completed, equal to three-quarters of the annual loan charges referable to the allowable cost; and for the purposes of this subsection the definition of " annual loan charges " in section 86(5) of this Act shall have effect as if the reference to a housing authority were a reference to a housing association.

(8) A contribution under this section shall be paid to the local authority, who shall pay to the housing association by way of annual grant an amount not less than the contribution.

(9) Where a dwelling is provided or improved by a housing association in pursuance of arrangements in respect of which a contribution is paid under this section, no grant under this Part of this Act shall be made to the housing association towards the cost of improving the dwelling.

(10) The Greater London Council shall be a local authority for the purposes of this section.