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(1)A local housing authority shall not under section 206(1)(a) discharge their housing functions under this Part by providing accommodation other than—
(a)accommodation in a hostel within the meaning of section 622 of the [1985 c. 68.] Housing Act 1985, or
(b)accommodation leased to the authority as mentioned in subsection (2) below,
for more than two years (continuously or in aggregate) in any period of three years.
This applies irrespective of the number of applications for accommodation or assistance in obtaining accommodation made by the person concerned.
(2)The accommodation referred to in subsection (1)(b) is accommodation—
(a)leased to the authority with vacant possession for use as temporary housing accommodation on terms which include provision for the lessor to obtain vacant possession from the authority on the expiry of a specified period or when required by the lessor,
(b)the lessor of which is not an authority or body within section 80(1) of the [1985 c. 68.] Housing Act 1985 (the landlord condition for secure tenancies), and
(c)in which the authority have no interest other than under the lease in question or as a mortgagee.
(3)The authority shall not discharge such functions in relation to a person who—
(a)normally resides with another person as a member of his family, or
(b)might reasonably be expected to reside with another person,
in such a way that subsection (1) would be contravened if the functions were discharged in relation to that other person.
(4)The Secretary of State may, on the application of a local housing authority, by direction exclude or modify the operation of subsection (1) in relation to that authority if it appears to him that the authority will not otherwise be able reasonably to discharge their housing functions under this Part.
(5)Any such direction shall have effect only—
(a)with respect to applicants of a description specified in the direction, and
(b)for a period specified in the direction, which shall not exceed one year,
and may be expressed to have effect subject to any conditions specified in the direction.
(6)Where the Secretary of State gives or has given a direction under subsection (4), he may give the authority such directions as he considers appropriate as to the discharge of their housing functions under this Part in cases affected by the direction having or ceasing to have effect.
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