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(1)Before deciding whether to declare an area to be a clearance area under section 289 of the [1985 c. 68.] Housing Act 1985, a local housing authority shall—
(a)consider whether their resources are sufficient for the purpose of carrying into effect a resolution declaring the power to pay relocation grants to be exercisable as regards that area; and
(b)in deciding that question, have regard to such guidance as may from time to time be given by the Secretary of State.
(2)Where a local housing authority decide that their resources are sufficient for that purpose, they shall—
(a)consider whether to pass such a resolution; and
(b)notify every person on whom notice is required to be served under subsection (2B)(a) of section 289 of the Housing Act 1985 that they are so considering and invite him to make representations.
(3)In deciding whether to pass such a resolution, a local housing authority shall—
(a)have regard to such guidance as may from time to time be given by the Secretary of State; and
(b)take account of any representations made by persons notified under subsection (2)(b).
(4)Where a local housing authority pass such a resolution, they shall transmit a copy of it to the Secretary of State at the same time as they transmit to him a copy of the resolution under section 289 of the Housing Act 1985.
(5)Subsections (2) to (4) of section 604A of the Housing Act 1985 (duty to consider guidance before taking enforcement action) shall apply in relation to guidance under subsection (1)(b) or (3)(a) as they apply in relation to guidance under subsection (1) of that section.
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