PART XIII GENERAL FINANCIAL PROVISIONS

417. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1

Housing subsidy

421C1Housing subsidy.

1

Housing subsidy is payable for each year to F2F3development corporations F4. . ..

2

Housing subsidy shall be credited F5to the F6corporation's housing account

3

Housing subsidy shall be paid by the Secretary of State at such times, in such manner and subject to such conditions as to records, certificates, audit or otherwise as he may, with the agreement of the Treasury, determine.

4

Payment of housing subsidy is subject to the making of a claim for it in such form, and containing such particulars, as the Secretary of State may from time to time determine.

422C2Calculation of housing subsidy for local housing authorities.

1

The amount of the housing subsidy payable to a F7F8development corporation for a year (the year of account) shall be calculated from the amounts which, in accordance with sections 423 to 425, are the F7corporation’s—

a

base amount (BA),

b

housing costs differential (HCD), and

c

local contribution differential (LCD),

for the year, and shall be so calculated by using the formula BA+HCD-LCD.

2

If the amount so calculated is nil or a negative amount, no housing subsidy is payable to the F9corporation for that year.

423C3The base amount.

1

A F10F11development corporation’s base amount for a year of account is, subject to any adjustment under subsection (2), the amount calculated for the preceding year under section 422, that is to say, the amount of the housing subsidy payable to the F10corporation for that year or, if none was payable, nil or a negative amount, as the case may be.

2

If the Secretary of State is of opinion that particular circumstances require it, he may adjust the base amount for amy year by increasing or decreasing it, either generally or in relation to . . . F12 any particular F13corporation .

424C4The housing costs differential.

1

A F14F15development corporation’s housing costs differential for a year of account is the amount by which their reckonable expenditure for that year exceeds their reckonable expenditure for the preceding year (and accordingly is nil or, as the case may be, a negative amount if the reckonable expenditure for the year is the same as or less than that for the preceding year).

2

A F16F15development corporation’s reckonable expenditure for a year is the aggregate of—

a

so much of the expenditure incurred by the F16corporation in that year and falling to be debited to F16the corporation’s housing account as the Secretary of State may determine, and

b

so much of any other expenditure incurred by the F16corporation in that year, or treated as so incurred in accordance with a determination made by the Secretary of State, as the Secretary of State may determine to be taken into account for the purposes of housing subsidy.

F173

A determination may be made for all F15development corporations or different determinations may be made for individual corporations; and a determination may be varied or revoked in relation to all or any of the corporations for which it was made.

4

Before making a determination for all F18F15development corporations the Secretary of State shall consult organisations appearing to him to be representative of F18F15development corporations.

425C5The local contribution differential.

1

A F19F20development corporation’s local contribution differential for a year of account is the amount by which their reckonable income for that year exceeds their reckonable income for the preceding year (and accordingly is nil or, as the case may be, a negative amount if their reckonable income for the year is the same as or less than that for the preceding year).

2

F21A corporation’s reckonable income for a year is the amount which, in accordance with any determination made by the Secretary of State, the F22corporation are assumed to receive for that year as income which they are required to carry to their F21housing account including—

a

any contribution made by the F22corporation out of their F21general revenue account, and

b

any rent rebate subsidy payable under F23F24section 140Aof the Social Security Administration Act 1992,

but excluding any other subsidy, grant or contribution.

3

A determination shall state the assumptions on which it is based and the method of calculation used in it, and in making it the Secretary of State shall have regard, amongst other things, to past and expected movements in incomes, costs and prices.

F254

A determination may be made for all F20development corporations or different determinations may be made for different corporations or groups of corporations.

5

Before making a determination for all F26F20development corporations the Secretary of State shall consult organisations appearing to him to be representative of F26F20development corporations.

6

A determination shall be made known to the F27corporations for which it is made in the year preceding the year of account for which it is to have effect.

F28426. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

427C6Recoupment of subsidy in certain cases.

1

Where housing subsidy has been paid to a F29F30development corporation F31. . . and it appears to the Secretary of State that—

a

the purpose for which it was paid has not been fulfilled or not completely or adequately or not without unreasonable delay, and

b

that the case falls within rules published by him,

he may recover from F29that F32corporation the whole or such part of the payment as he may determine in accordance with the rules, with interest from such time and at such rates as he may so determine.

2

A sum recoverable under this section may, without prejudice to other methods of recovery, be recovered by withholding or reducing housing subsidy.

3

The withholding or reduction under this section of housing subsidy for a year does not affect the base amount for the following year.

427AC7F33 Entitlement to subsidy in case of land subject to management agreement.

F531

The fact that a F34F35 development corporation F36 . . . has entered into a management agreement, and any letting of land in connection with such an agreement—

a

shall be disregarded in determining F34that F37corporation's reckonable income or expenditure for the purposes of housing subsidy, and

b

shall not be regarded as a ground for recovering, withholding or reducing any sum under section 427 (recoupment of housing subsidy).

F542

Reference in subsection (1) to a management agreement includes a section 247 or 249 arrangement, as defined by section 250A(6) of the Housing and Regeneration Act 2008.

Borrowing powers

428 Continuance of certain powers to borrow for housing purposes.

1

A local authority may borrow for any of the purposes for which borrowing was, before the commencement of this Act, authorised by—

  • section 136(1) of the M1Housing Act 1957,

  • section 54(1) of the M2Housing (Financial Provisions) Act 1958, or

  • paragraph 19 of Schedule 8 to the M3Housing Act 1969.

2

The maximum period which may be sanctioned as the period for which money may be borrowed for any of those purposes by the Common Council of the City of London is 80 years, notwithstanding the provisions of any Act of Parliament.

Miscellaneous

429 The improvement for sale scheme.

1

The Secretary of State may, with the consent of the Treasury, make schemes for making contributions to the net cost (as determined under the schemes) to local housing authorities of disposing of dwellings where the authority—

a

disposes of a house as one dwelling,

b

divides a house into two or more separate dwellings and disposes of them, or

c

combines two houses to form one dwelling and disposes of it,

after carrying out works of repair, improvement or conversion.

2

The cost towards which contributions may be made under such a scheme shall not exceed, for any one dwelling—

a

in respect of a dwelling in Greater London, £10,000.

b

elsewhere, £7,500,

or such other amount as may be prescribed by order of the Secretary of State made with the consent of the Treasury.

3

An order under this section—

a

may make different provision in respect of different cases or descriptions of case, including different provision for different areas, and

b

shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

4

In this section “house” includes a flat.

429AF38 Housing management: financial assistance etc.

1

The Secretary of State may, F39 . . ., give financial assistance—

a

to persons managing public sector or former public sector housing, and

b

to persons seeking to facilitate or encourage improvements in, or providing services in connection with, the management of such housing;

and may, F39 . . ., make payments otherwise than by way of financial assistance in pursuance of arrangements made with any such person.

2

For this purpose—

a

“ public sector housing ” means housing accommodation in which an authority or body within section 80 (the landlord condition for secure tenancies) F40 or subsection (2A) has an interest by virtue of which it receives a rack-rent, or would do so if the premises were let at a rack-rent; and

b

“ former public sector housing ” means housing accommodation in which such an authority, or a predecessor of such an authority or an authority abolished by the Local Government Act 1985 formerly had such an interest.

C8F40 2A

Subsection (2)(a) applies to the following bodies—

F55 a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F41 b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c

a housing trust which is a charity;

d

a F56private registered provider of social housing, or a registered social landlord, other than a co-operative housing association; and

F42e

a co-operative housing association which is F57neither a private registered provider of social housing nor a registered social landlord.

F432B

The reference in subsection (2)(a) to a body within subsection (2A) includes the Secretary of State if he has the interest as the result of the exercise by him (or Housing for Wales) of functions under Part III of the M4 Housing Associations Act 1985.

3

The Secretary of State may, F39 . . ., give financial assistance—

a

to persons providing educational or training courses in housing management,

b

to persons providing services for those providing such courses, and

c

to persons providing financial or other assistance for those attending such courses;

and may, F39 . . ., make payments otherwise than by way of financial assistance in pursuance of arrangements made with any such person.

4

Financial assistance given by the Secretary of State under subsection (1) or (3) may be given in any form, and may in particular be given by way of grants, loans or guarantees or by incurring expenditure for the benefit of the person assisted; but the Secretary of State shall not in giving such assistance purchase loan or share capital in a company.

5

Financial assistance may be given and other payments made on such terms as the Secretary of State, F44 . . ., considers appropriate; and the terms may, in particular, include provision as to the circumstances in which the assistance or other payment must be repaid or otherwise made good to the Secretary of State and the manner in which that is to be done.

6

A person receiving financial assistance under this section shall comply with the terms on which it is given and compliance may be enforced by the Secretary of State.

430

— . . . F45

431 Control of expenditure by housing authorities on works of conversion or improvement.

1

A local authority or F46development corporation may not incur expenses in—

a

providing dwellings by the conversion of houses or other buildings, or

b

carrying out works required for the improvement of dwellings, with or without associated works of repair,

except in accordance with proposals submitted by the authority or corporation to the Secretary of State and for the time being approved by him.

2

The Secretary of State’s approval may be given subject to such conditions, and may be varied in such circumstances, as appear to him to be appropriate; but before varying the terms of an approval he shall consult the authority or corporation concerned.

3

In this section “dwelling” has the same meaning as in Part XV (grants for works of improvement, repair and conversion).

432 Superseded contributions, subsidies, grants, and other financial matters.

The provisions of Schedule 15 have effect with respect to superseded contributions, subsidies, grants and other financial matters, as follows—

  • Part I—Loans under the Housing (Rural Workers) Acts 1926 to 1942.

  • F47. . .

  • Part III—Contributions for improvement of dwellings by housing authorities.

  • Part IV—Town development subsidy.

Supplementary

433 Minor definitions.

In this Part—

“year” means a period of twelve months beginning on a 1st April.

434 Index of defined expressions: Part XIII.

The following Table shows provisions defining or otherwise explaining expressions used in this Part (other than provisions defining or explaining an expression used in the same section or paragraph):—

base amount

section 423

F48charity

F48section 622

F48co-operative housing association

F48section 5(2)

development corporation

section 4(c)

. . . F49

. . . F49

. . . F49

. . . F49

. . . F49

. . . F49

F48housing association

F48section 5(1)

housing authority

section 4(a)

housing costs differential

section 424

. . . F49

. . . F49

. . . F49

. . . F49

housing subsidy

section 421(1)

F48housing trust

F48section 6

. . . F49

. . . F49

local authority

section 4(e)

local contribution differential

section 425

local housing authority

section 1, 2(2)

F50management agreement

F50sections 27(2) and 27B(4)

F51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

receiving authority (in Part IV of Schedule 15)

paragraph 6 of that Part

F52 registered social landlord

F52 section 5(4) and (5)

year

section 433

year of account (in relation to housing subsidy)

section 422