Housing Associations Act 1985

15 Payments and benefits to committee members, etc.

(1) A registered housing association which is a society registered under the 1965 Act shall not make a payment or grant a benefit to—

(a) a committee member (including a co-opted member), officer or employee of the association, or

(b) a person who at any time within the preceding twelve months has been a person within paragraph (a), or

(c) a close relative of a person within paragraph (a) or (b), or

(d) a business trading for profit of which a person falling within paragraph (a), (b) or (c) is a principal proprietor or in the management of which such a person is directly concerned,

except as permitted by this section.

(2) The following are permitted—

(a) payments made or benefits granted to an officer or employee under his contract of employment with the association;

(b) the payment of expenses to a committee member (including a co-opted member) or to an officer of the association who does not have a contract of employment with the association;

(c) any such payment as may be made in accordance with section 13(2) (interest payable in accordance with the rules and certain sums payable by a fully mutual housing association to a person who has ceased to be a member);

(d) the grant or renewal of a tenancy by a co-operative housing association;

(e) where a tenancy of a house has been granted to, or to a close relative of, a person who later became a committee member (including a co-opted member), officer or employee, the grant to that tenant of a new tenancy, whether of the same or another house.

(3) Where an association pays a sum or grants a benefit in contravention of this section, the association may recover the sum or the value of the benefit, and proceedings for its recovery shall be taken by the association if the Housing Corporation so directs.