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(1)A local authority may make an agreement with a society, company or body of trustees for the time being approved by the Secretary of State for the purposes of this section (in this section called a "housing co-operative")—
(a)for the exercise by the co-operative, on such terms as may be provided in the agreement, of any of the local authority's powers relating to land or any interest in land held by them for the purposes of this Part, and the performance by the cooperative of any of the local authority's duties relating to such land or interest; or
(b)for the exercise by the co-operative, in connection with any such land or interest, of any of the local authority's powers under section 4 or 5 (powers to provide furniture, board and laundry facilities).
(2)An agreement to which this section applies may only be made with the approval of the Secretary of State.
(3)The Secretary of State's approval to the making of such an agreement may be given either generally or to any local authority or description of local authority or in any particular case, and may be given unconditionally or subject to any conditions.
(4)A housing association is not entitled under the [1985 c. 69.] Housing Associations Act 1985 to housing association grant, revenue deficit grant or hostel deficit grant in respect of land comprised in an agreement to which this section applies.
(5)Houses on land included in an agreement to which this section applies shall continue to be included in the local authority's housing revenue account; and neither the fact that the authority have made the agreement nor any letting of land in pursuance of it shall be treated as a ground for the reduction, suspension or discontinuance of any Exchequer contribution or subsidy under section 202.
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