6(1)No contribution shall be made by the Secretary of State by virtue of Part II of Schedule 15 to the M1Housing Act 1985 (exchequer contributions for agricultural housing) in respect of any year after the year ending on 31st March 1996.E+W
(2)Part II of Schedule 15 to that Act is amended as follows.
(3)For the heading substitute—
(4)For paragraph 1 substitute—
1(1)Annual grants shall, notwithstanding the abolition of exchequer contributions by paragraph 6(1) of Schedule 18 to the M2Housing Act 1996, continue to be payable by local housing authorities in respect of agricultural housing provided in pursuance of arrangements made under section 46 of the Housing (Financial Provisions) Act 1958.
(2)Subject to the provisions of this Part of this Schedule, such annual grants are payable, in respect of any house as to which the Secretary of State originally undertook to make annual contributions under section 46 of the M3Housing (Financial Provisions) Act 1958, for the remainder of the 40 year period for which that undertaking was given.
(3)The amount paid by way of annual grant to the owner of a house shall not be less than the amount of the last annual contribution paid by the Secretary of State in respect of the house.”.
(5)For paragraph 2(1) substitute—
2(1)It is a condition of the payment of a grant in respect of a house in any year that throughout the year the house—
(a)is reserved for members of the agricultural population, and
(b)if let, is let at a rent not exceeding the limit applicable in accordance with the following provisions of this paragraph,
and that in the opinion of the local housing authority all reasonable steps have been taken to secure the maintenance of the house in a proper state of repair during the year.”.
(6)In paragraph 3(1), for “contribution” substitute “ grant ”.
(7)For paragraph 4 substitute—
“4A grant shall not be made or shall be reduced, as the local housing authority think fit, if (before the grant is paid) the local housing authority are of the opinion that during the whole or the greater part of the period to which the payment of the grant is referable the house has not been available as a dwelling fit for habitation, unless the authority is satisfied that that could not with reasonable diligence have been achieved.”.
(8)In paragraph 5 omit the words “the Secretary of State or”.
(9)After paragraph 5 insert—
6(1)A local authority may make an offer in writing to the person who is for the time being the owner of a house as respects which annual grant is payable under this Part of this Schedule to pay a lump sum in lieu of—
(a)the annual grant payable for the year in which the offer is accepted; and
(b)any further payments of annual grant that would (apart from this paragraph) be payable for the remainder of the period for which the original arrangements under section 46 of the Housing (Financial Provisions) Act 1958 were made.
(2)An owner may accept an offer made under this paragraph by notice in writing to the local housing authority.
(3)Subject to sub-paragraph (4) below, where such an offer is accepted the local housing authority shall pay to the owner a lump sum calculated in such manner as the authority may determine.
(4)A lump sum shall not be paid as respects a house unless the local housing authority are satisfied that the conditions in this Part of this Schedule have been observed throughout the year preceding the date on which the lump sum would otherwise be paid.
(5)On payment of a lump sum under this paragraph to the owner of a house—
(a)no further annual grants under this Part of this Schedule shall be payable in respect of the house; and
(b)the conditions described in this Part of this Schedule shall cease to apply to the house.”.
(10)Nothing in this paragraph affects the operation of Part II of Schedule 15 to the M4Housing Act 1985 in respect of any year ending before 1st April 1996.