CHAPTER II REGISTRATION OF HOUSING ASSOCIATIONS

Payments and grant of benefits by registered housing associations31

1

Subject to paragraph (5), a registered housing association shall not make any payment or grant any benefit to—

a

a person who is, or at any time within the relevant period has been, a committee member, officer or employee of the association;

b

a close relative of such a person; or

c

a business trading for profit in which a person falling within sub-paragraph (a) has a personal interest.

2

In paragraph (1)(a), “the relevant period” means the period of 12 months immediately preceding the making of the payment or the grant of the benefit.

3

For the purposes of paragraph (1)(c), a person has a personal interest in a business if he, or a close relative of his, either is one of the principal proprietors of the business or is directly concerned with its management.

4

Any sum paid, or the value of any benefit granted, by a registered housing association in breach of paragraph (1) shall be recoverable by the association; and proceedings for its recovery shall be taken by the association if the Department gives it a direction to that effect.

5

This Article does not apply to—

a

any payment made or benefit granted by a registered housing association to an officer or employee under his contract of employment with the association;

b

any payment of expenses made by such an association to a member of its committee;

c

any payment to which, by virtue of paragraph (2) of Article 30, paragraph (1) of that Article does not apply;

d

any payment of expenses to which Article 30(3)(c) applies;

e

the grant or renewal of a tenancy of a house; or

f

any payment made or benefit granted by a registered housing association in such class or classes of case as may be specified in a determination made by the Department.

6

The Department may make different determinations for the purposes of paragraph (5)(f) and, before making such a determination, the Department shall consult such bodies appearing to it to be representative of registered housing associations as it considers appropriate; and after making such a determination the Department shall publish the determination in such manner as it considers appropriate for bringing it to the notice of the associations concerned.