Part I

Social Rented Sector regulated by the Welsh Ministers
Chapter III

Grants and other financial matters

Grants and other financial assistance

Local loans made by the Treasury
23
1
The Treasury may lend money to a registered social landlord—
a
for the purpose of constructing or improving, or facilitating or encouraging the construction or improvement, of dwellings,
b
for the purchase of dwellings which the landlord desires to purchase with a view to their improvement, and
c
for the purchase and development of land.
2
A loan for any of those purposes, and interest on the loan, shall be secured by a mortgage of—
a
the land in respect of which that purpose is to be carried out, and
b
such other lands (if any) as may be offered as security for the loan;
and the money lent shall not exceed three-quarters (or, if the payment of the principal of, and interest on, the loan is guaranteed by a local authority, nine-tenths) of the value, to be ascertained to the satisfaction of the Treasury, of the estate or interest in the land proposed to be so mortgaged.
3
Loans may be made by instalments as the building of dwellings or other work on the land mortgaged under subsection (2) progresses (so, however, that the total amount lent does not at any time exceed the amount specified in that subsection); and a mortgage may accordingly be made to secure such loans to be so made.
4
If the loan exceeds two-thirds of the value referred to in subsection (2), and is not guaranteed as to principal and interest by a local authority, the Treasury shall require, in addition to such a mortgage as is mentioned in that subsection, such further security as they think fit.
5
Subject to subsection (6), the period for repayment of a loan under this section shall not exceed 40 years, and no money shall be lent on mortgage of any land unless the estate proposed to be mortgaged is either an estate in fee simple absolute in possession or an estate for a term of years absolute of which not less than 50 years are unexpired at the date of the loan.
6
Where a loan under this section is made for the purpose of carrying out a scheme for the provision of houses approved by the Welsh Ministers, the maximum period for the repayment of the loan is 50 instead of 40 years, and money may be lent on the mortgage of an estate for a term of years absolute of which a period of not less than ten years in excess of the period fixed for the repayment of the sums advanced remains unexpired at the date of the loan.
7
Any loan made under subsection (1) is a local loan for the purposes of section 3 of the National Loans Act 1968 (see Schedule 4 to that Act).
S. 23 extended (16.9.1996) by S.I. 1996/2402, art. 3,Sch. para. 1
Part I (ss. 1-64) amended (1.10.1996) by S.I. 1996/2325, art.3
Pt. 1: The system of "registered social landlords" under this Part is replaced (8.9.2008 for specified purposes and 1.12.2008, 16.2.2009, 1.4.2009, 7.9.2009 and 1.4.2010 for further purposes) by Housing and Regeneration Act 2008 (c. 17), Pt. 2. This Part continues to apply in relation to Wales with certain provisions applied in relation to England and certain provisions preserved although they apply to England only, see s. 60 of the affecting Act; S.I. 2008/2358, art. 3; S.I. 2008/3068, art. 3 (with arts. 6-13); S.I. 2009/363, art. 2; S.I. 2009/803, art. 7; S.I. 2009/2096, art. 2(1); S.I. 2010/862, art. 2 (with Sch.)
Pt. I title substituted (1.4.2010) by Housing and Regeneration Act 2008 (c. 17), ss. 61(1), 325(1); S.I. 2010/862, art. 2 (with Sch.)
Words in s. 23(6) substituted (1.4.2010) by Housing and Regeneration Act 2008 (c. 17), ss. 62(a), 325(1); S.I. 2010/862, art. 2 (with Sch.)
Words in Pt. I title substituted (18.10.2011) by Housing (Wales) Measure 2011 (nawm 5), s. 90(2), Sch. para. 2; S.I. 2011/2475, arts. 1(2), 2(u)
Word in s. 23 substituted (25.2.2020) by The Public Bodies (Abolition of Public Works Loan Commissioners) Order 2020 (S.I. 2020/176), art. 1(2), Sch. 1 para. 80(3) (with art. 9)
S. 23(7) inserted (25.2.2020) by The Public Bodies (Abolition of Public Works Loan Commissioners) Order 2020 (S.I. 2020/176), art. 1(2), Sch. 1 para. 80(4) (with art. 9)
S. 23 heading substituted (25.2.2020) by The Public Bodies (Abolition of Public Works Loan Commissioners) Order 2020 (S.I. 2020/176), art. 1(2), Sch. 1 para. 80(2) (with art. 9)