1(1)Contributions by the Secretary of State in connection with arrangements made under section 121 of the M1Housing Act 1957 (arrangements between housing associations and local authorities for improvement of housing) remain payable—E+W+S
(a)under section 12 of the M2Housing (Financial Provisions) Act 1958 and section 12 of the M3Housing Subsidies Act 1967 as regards arrangements made before 25th August 1969, and
(b)under section 21 of the M4Housing Act 1969 as regards arrangements made on or after that date and approved under subsection (2) of that section before 1st April 1975.
(2)The contributions are payable at such times and in such manner as the Treasury may direct, and subject to such conditions, as to records, certificates, audit or otherwise as the Secretary of State may, with the approval of the Treasury, impose.
(3)Where such a contribution is paid to a local authority, the authority shall pay to the housing association by way of annual grant an amount not less than the contribution.
2E+W+SIf the Secretary of State is satisfied, in the case of contributions payable under section 12 of the Housing (Financial Provisions) Act 1958, that the housing association have made default in giving effect to the terms of the arrangements, he may, as he thinks just—
(a)reduce the amount of the contribution payable to the local authority, or
(b)suspend or discontinue the payment;
and the local authority may reduce to a proportionate or any less extent the annual grant payable by them to the association or, as the case may be, suspend the payment for a corresponding period or discontinue the payment.
3(1)Contributions by the Secretary of State under section 17 of the M5Housing (Financial Provisions) (Scotland) Act 1968 remain payable in connection with arrangements made under section 121 of the M6Housing (Scotland) Act 1950 or section 155 of the M7Housing (Scotland) Act 1966 (arrangements between housing associations and local authorities for improvement of housing) and approved on or after 16th August 1964 and before 1st April 1975.E+W+S
(2)The contributions are payable at such times and in such manner as the Treasury may direct, and subject to such conditions as to records, certificates, audit or otherwise as the Secretary of State may, with the approval of the Treasury, impose.
(3)Where such a contribution is paid to a local authority, the authority shall pay to the housing association by way of annual grant an amount not less than the contribution.
4(1)The Secretary of State may, in any of the circumstances mentioned in sub-paragraph (2), reduce the amount of the contributions in respect of a particular subsidised unit, or suspend or discontinue the payment of the contributions, or part of them, as he thinks just in the circumstances.E+W+S
(2)The circumstances referred to in sub-paragraph (1) are—
(a)that the housing association has made default in giving effect to the terms of the arrangements with the local authority, or
(b)that the subsidised unit has been converted, demolished or destroyed, is not fit to be used or has ceased to be used for the purpose for which it was intended, has been sold or leased for a stipulated duration exceeding twelve months or has been transferred, whether by sale or otherwise.
(3)The local authority may reduce to a corresponding or less extent the annual grant payable by them to the association, or, as the case may be, suspend payment of the whole or a corresponding part of the payment for a corresponding period, or discontinue the payment or a corresponding part.