Housing Act 1980

(104A) (1) Any consent of the Minister required under section 104(2) or (5) of this Act may be given either generally to all local authorities or to any particular local authority or description of authority and either in relation to any particular land or description of land. (2) Any such consent may be given subject to such conditions as the Minister sees fit to impose. (3) Without prejudice to the generality of subsection (2) above, any such consent may be given subject to conditions as to the price, premium or rent to be obtained on a disposal under section 104. including conditions as to the amount by which, on the disposal of a house by way of sale or by the grant or assignment of a lease at a premium, the price or premium is to be, or may be, discounted by the local authority. (104B) (1) This section applies where, on a disposal under section 104 of this Act (the "first disposal "), a discount has been given to the purchaser by the local authority in accordance with a consent given by the Minister under subsection (2) of that section; but this section does not apply in any such case if the consent so provides. (2) On the first disposal, the conveyance, grant or assignment shall contain a covenant binding on the purchaser and his successors in title to pay to the local authority on demand the amount specified in subsection (3) below if, within a period of five years, there is a disposal falling within subsection (4) below, (the " further disposal"); but if there is more than one further disposal, then only on the first of them. (3) The amount payable under the covenant is an amount equal to the discount given to the purchaser, but reduced by 20 per cent, of that discount for each complete year which elapses after the first disposal and before the further disposal. (4) A disposal falls within this subsection if it is— (a) a conveyance of the freehold or an assignment of the lease; or (b) the grant of a lease or sub-lease for a term of more than twenty-one years otherwise than at a rack rent; whether the disposal is of the whole or part of the house; but a disposal in pursuance of an order under section 24 of the Matrimonial Causes Act 1973 or under section 2 of the Inheritance (Provision for Family and Dependants) Act 1975 or a vesting in a person taking under a will or on an intestacy is not a disposal falling within this subsection. (5) The liability that may arise under the covenant required by subsection (2) above shall be a charge on the house— (a) taking effect as if it had been created by deed expressed to be by way of legal mortgage; and (b) having priority immediately after any legal charge securing any amount left outstanding by the purchaser or advanced to him by a body specified in subsection (6) below for the purpose of enabling him to acquire the interest disposed of on the first disposal or further advanced to him by that body. (6) The bodies referred to in subsection (5)(b) above are any building society and any of the bodies specified in paragraph 6, 7 or 8 of the Schedule to the Home Purchase Assistance and Housing Corporation Guarantee Act 1978. (7) A charge taking effect by virtue of subsection (5) above shall, notwithstanding subsection (5) of section 59 of the Land Registration Act 1925, be a land charge for the purposes of that section, and subsection (2) of that section shall apply accordingly with respect to its protection and realisation. (8) The reference in subsection (4) above to a lease or sub-lease does not include a mortgage term. (9) In this section " building society" means a building society within the meaning of the Building Societies Act 1962 or the Building Societies Act (Northern Ireland) 1967 and " purchaser" means the person acquiring the interest disposed of by the first disposal; and for the purposes of this section the grant of an option enabling a person to call for a disposal falling within subsection (4) above shall be treated as such a disposal. (104C) (1) Where a conveyance, grant or assignment executed under section 104 of this Act (the " first disposal ") is of a house situated in a National Park, or an area designated under section 87 of the National Parks and Access to the Countryside Act 1949 as an area of outstanding natural beauty, or an area designated by order of the Secretary of State as a rural area, the conveyance, grant or assignment may (unless it contains a condition of a kind mentioned in section 104(6)(b) or (c) above) contain a covenant limiting the freedom of the purchaser and his successors in title to dispose of the house in the manner specified in subsection (2) below. (2) The limitation is that, until such time (if any) as may be notified in writing by the local authority to the purchaser or his successors in title there will be no disposal falling within subsection (4) below (the " further disposal") without the written consent of the local authority; but that consent shall not be withheld if the further disposal is to a person satisfying the condition stated in subsection (3) below. (3) The condition is that the person to whom the further disposal is made (or, if it is made to more than one person, at least one of them) has, throughout the period of three years immediately preceding the application for consent, either— (a) had his place of work in a designated region which or part of which is comprised in the National Park or area ; or (b) had his only or principal home in such a region; or has had the one in part or parts of that period and the other in the remainder; but the region need not have been the same throughout the whole of the period. (4) A disposal falls within this subsection if it is— (a) a conveyance of the freehold or an assignment of the lease ; or (b) the grant of a lease or sub-lease for a term of more than 21 years otherwise than at a rack rent; whether the disposal is of the whole or part of the house; but a disposal in pursuance of an order under section 24 of the Matrimonial Causes Act 1973 or under section 2 of the Inheritance (Provision for Family and Dependants) Act 1975 or a vesting in a person taking under a will or on an intestacy is not a disposal falling within this subsection. (5) If the further disposal is in breach of the covenant mentioned in subsection (1) above, it shall be void. (6) The limitation imposed by such a covenant shall be a local land charge and, if the land is registered under the Land Registration Act 1925, the Chief Land Registrar shall enter the appropriate restriction on the register of title as if application therefor had been made under section 58 of that Act. (7) The reference in subsection (4) above to a lease or sub-lease does not include a mortgage term. (8) In this section " purchaser " means the person acquiring the interest disposed of by the first disposal. (9) In this section " designated region " means an area designated for the purposes of this section by order of the Secretary of State. (10) For the purposes of this section the grant to any person of an option enabling him to call for a disposal falling within subsection (4) above shall be treated as such a disposal made to that person and a consent to such a grant as a consent to a disposal made in pursuance of the option.

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Acquisition of land for purpose of its subsequent disposal

93

It is hereby declared that—

• (a) the power of a local authority to acquire land under section 96 of the 1957 Act (power of local authority to acquire land for provision of housing accommodation) includes power to do so for the purpose of disposing of houses erected, or to be erected, on the land or of disposing of the land to a person who intends to provide housing accommodation on it; and

• (b) the things that a local authority may do under section 92 of that Act (mode of provision of accommodation) may equally be done in relation to land acquired for either of those purposes.

Options granted before commencement of section 91

94

The limitations on a local authority's statutory power to dispose of houses acquired or appropriated for the purposes of Part V of the 1957 Act shall not be taken to have prevented a local authority, at any time before the commencement of section 91 of this Act, from granting to the tenant of a house an option to purchase the freehold of, or any other interest in, the house.

Appropriation of land

95

After section 110 of the 1957 Act there is inserted the following section—

(110A) (1) Where a local authority have acquired or appropriated any land for the purposes of this Part of this Act they shall not, without the consent of the Minister, appropriate any part of that land which consists of a house or part of a house for any other purpose. (2) Any consent under this section may be given either generally to all local authorities or to any particular local authority or description of authority and either in relation to any particular land or description of land. (3) Any such consent may be given subject to such conditions as the Minister sees fit to impose.

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PART VI — Housing Subsidies

New housing subsidy to replace certain existing subsidies and contributions Local authorities

96

• (1) For the year 1981-82 and subsequent years—

• (a) a subsidy, to be known as housing subsidy, shall be payable to local authorities, new town corporations and the Development Board for Rural Wales in accordance with this Part of this Act;

• (b) no payment shall be made under any of the enactments listed in Part I of Schedule 11 to this Act; and

• (c) no payment shall be made under any of the enactments listed in Part II of Schedule 11 to this Act in respect of dwellings within a local authority's Housing Revenue Account or a new town corporation's housing account.

• (2) No grant shall be made after 31st March 1981 under section 14 of the Housing (Financial Provisions) Act 1958 (grants for building experiments).

Local authorities

Housing subsidy for local authorities

97

• (1) The amount of the housing subsidy payable to a local authority for any year (the year of account) shall be calculated from the amounts which are the authority's—

• (a) base amount (BA);

• (b) housing costs differential (HCD); and

• (c) local contribution differential (LCD);

for that 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 authority for the year of account.

The base amount

98

• (1) A local authority's base amount is, subject to any adjustment under this section.—

• (a) for the year 1982-83 or any subsequent year, the amount calculated for the preceding year under section 97, that is to say, the amount of subsidy payable to the authority for the year (or, if none was payable, nil or a negative amount, as the case may be);

• (b) for the year 1981-82, the aggregate of the following amounts payable to the authority for the year 1980-81, that is to say—

• (i) the amount of housing subsidy under section 2 of the 1975 Act;

• (ii) the amount (if any) of expanding towns subsidy under section 4 of the 1975 Act; and

• (iii) the amount of any contribution under the enactments listed in Part II of Schedule 11 which is payable in respect of any dwelling within the authority's Housing Revenue Account.

• (2) If the Secretary of State is of opinion that particular circumstances require it, he may adjust the base amount for any year by increasing or decreasing it, either generally or in relation to any description of authority or any particular authority ; and, without prejudice to the generality of this provision, he may adjust the base amount for the year 1981-82 by excluding from the amount taken into account as housing subsidy under section 2 of the 1975 Act so much of the new capital costs element and the high costs element as was in his opinion attributable to capital costs directly charged to revenue.

The housing costs differential

99

• (1) A local authority's housing costs differential for any year of account is the amount by which its reckonable expenditure for that year exceeds its reckonable expenditure for the preceding year (and accordingly is nil or, as the case may be, a negative amount if its reckonable expenditure for the year of account is the same or less).

• (2) A local authority's reckonable expenditure for any year is the aggregate of—

• (a) so much of the expenditure incurred by the authority in that year and falling to be debited to its Housing Revenue Account as the Secretary of State may determine ; and

• (b) so much of any other expenditure incurred by the local authority in that year or treated, in accordance with any determination made by the Secretary of State, as so incurred, as the Secretary of State may determine to take into account for the purposes of housing subsidy.

• (3) A determination under this section may be made for all local authorities or different determinations may be made for authorities of different descriptions or for authorities in England and authorities in Wales or in different parts of England or Wales or for individual authorities ; and any such determination may be varied or revoked in relation to all or any of the authorities for which it was made.

• (4) Before making a determination for all local authorities the Secretary of State shall consult with organisations appearing to him to be representative of local authorities.

The local contribution differential

100

• (1) A local authority's local contribution differential for any year of account is the amount by which its reckonable income for that year exceeds its reckonable income for the preceding year (and accordingly is nil or, as the case may be, a negative amount if its reckonable income for the year of account is the same or less).

• (2) A local authority's reckonable income for any year is the amount which, in accordance with any determination made by the Secretory of State, the local authority is assumed to receive for that year as income which it is required to carry to its Housing Revenue Account, but—

• (a) excluding, subject to paragraph (b) below, any income derived from any subsidy, grant or contribution; and

• (b) including any contribution made by the authority out of its general rate fund as well as any modified rent rebate subsidy payable under section 3 of the 1975 Act.

• (3) A determination under this section 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, among other things, to past and expected movements in incomes, costs and prices.

• (4) A determination under this section may be made for all local authorities or different determinations may be made for authorities of different descriptions or for authorities in England and authorities in Wales or in different parts of England or Wales or for individual authorities, and every determination shall be made known in the year preceding the year of account to the local authorities for which it is made.

• (5) Before making a determination for all local authorities the Secretary of State shall consult with organisations appearing to him to be representative of local authorities.

Other housing authorities

Housing subsidy for other bodies

101

• (1) Sections 97 to 100 above apply in relation to new town corporations and the Development Board for Rural Wales as they apply in relation to local authorities, but subject to the following provisions of this section.

• (2) In relation to a new town corporation—

• (a) section 98 has effect as if the aggregate mentioned in subsection (1)(b) included so much of the grant made to the corporation for the year 1980-81 under section 42(2) or 42(3A) of the New Towns Act 1965 as was to be credited to the corporation's housing account; and

• (b) sections 98, 99 and 100 have effect as if for references to the Housing Revenue Account there were substituted references to the housing account and for the reference to the general rate fund a reference to the general revenue account.

• (3) In relation to the Board.—

• (a) section 98 has effect as if for the references to section 2 of the 1975 Act there were substituted references to section 18 of the Development of Rural Wales Act 1976 and the aggregate mentioned in subsection (1)(b) included so much of the grants made to the Board for the year 1980-81 under section 11 of the Act of 1976 as was to be credited to its housing account; and

• (b) sections 99 and 100 have effect as if for references to the Housing Revenue Account there were substituted references to the housing account, and the contribution and rent rebate subsidy referred to in section 100(2)(6) were respectively any contribution made by the Board out of revenue and the subsidy payable under section 19 of the Act of 1976.

• (4) The consultations required by section 99(4) or 100(5) shall be with organisations appearing to the Secretary of State to be representative of new town corporations or, as the case may be, with the Development Board for Rural Wales.

• (5) The Commission for the New Towns is to be treated as a separate body in respect of each of its new towns.

Recoupment

Recoupment of subsidy

102

• (1) Where any subsidy has been paid to any local authority or other body under this Part of this Act, 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 the authority or other body 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 be recovered either as a simple contract debt or by withholding or reducing housing subsidy payable in any year or in successive years.

• (3) The withholding or reduction under this section of housing subsidy payable to a local authority or other body for any year shall not affect the authority's or other body's base amount for the following year.

Administration

Administration of housing subsidy

103

• (1) Housing subsidy shall be paid out of moneys provided by Parliament and shall be credited—

• (a) if paid to a local authority, to the authority's Housing Revenue Account; and

• (b) if paid to another body, to that body's housing account or appropriate housing account.

• (2) 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.

• (3) Payment of subsidy shall be 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.

Transitional town development subsidy

Power to commute transitional town development subsidy and payments to receiving authority

104

• (1) Where, under section 5 of the 1975 Act, transitional town development subsidy is payable to a sending authority for years later than the year 1979-80 the Secretary of State may, with the agreement of the sending authority and of the receiving authority, determine—

• (a) to commute further payments of transitional development subsidy into a single payment of an amount determined by him or calculated in a manner determined by him; and

• (b) to commute the corresponding payments by the sending authority to the receiving authority under subsection (6) of that section into a single payment of an amount four times that payable under paragraph (a) above.

• (2) In making a determination under this section the Secretary of State shall make such allowance (if any) as appears to him appropriate for circumstances in which, if there were no commutation, his power under section 5 of the 1975 Act to reduce or discontinue the sending authority's transitional town development subsidy might be exercised.

Interpretation

Interpretation of Part VI

105

In this Part of this Act—

• " local authority " means the council of a district or London borough, the Greater London Council, the Common Council of the City of London or the Council of the Isles of Scilly;

• " new town corporation" means a development corporation (within the meaning of the New Towns Act 1965) or the Commission for the New Towns ;

• " year " means any period of 12 months beginning on a 1st April;

• " year of account" means the year for which any housing subsidy is or may be payable under this Part of this Act.

PART VII — Housing: Financial and Related Provisions

Repairs and improvements

Grants for tenants under Part VII of Housing Act 1974

106

• (1) A local authority may entertain an application for a grant under Part VII of the 1974 Act from a person who has, in relation to his dwelling—

• (a) a protected tenancy or a statutory tenancy ;

• (b) a secure tenancy ;

• (c) a tenancy to which section 1 of the Landlord and Tenant Act 1954 applies and of which less than 5 years remain unexpired at the date of the application ;

• (d) a protected occupancy or statutory tenancy within the meaning of the Rent (Agriculture) Act 1976 ; or

• (e) a tenancy which satisfies such conditions as may be prescribed,

but not where the application is for an improvement grant in respect of works required for the provision of a dwelling.

• (2) A local authority may refuse to entertain the application unless it is accompanied by a certificate given by a qualified person and stating his intention that, throughout the period of 5 years beginning with the certified date—

• (a) the dwelling will be let or available for letting as a residence, and not for a holiday, to a person other than a member of the family of the person giving the certificate; or

• (b) the dwelling will be occupied or available for occupation by a member of the agricultural population in pursuance of a contract of service and otherwise than as a tenant,

(disregarding any part of that period in which neither of the above paragraphs applies but the dwelling is occupied by a protected occupier under the Rent (Agriculture) Act 1976).

• (3) A person is qualified to give a certificate for the purposes of subsection (2) if the local authority could (apart from this section) have entertained an application from him.

• (4) Unless the application is accompanied by that certificate, the authority shall not impose any of the grant conditions specified in section 74(2) of the 1974 Act (future letting of a dwelling).

• (5) Expressions defined for the purposes of Part VII of the 1974 Act have the same meanings in this section as they have in that Part.

Miscellaneous changes in Part VII of Housing Act 1974

107

The provisions of Part VII of the 1974 Act relating to local authority improvement, repairs and other grants are amended in accordance with Schedule 12 to this Act (amendments to alter certain conditions of grants, relax other conditions, and make other minor and consequential changes).

Disposal of houses after repair, improvement or conversion

108

• (1) The Secretary of State may, with the consent of the Treasury, make schemes for making contributions out of moneys provided by Parliament to the net cost (as determined under the schemes) to local authorities of disposing of dwellings in cases of the kind mentioned in subsection (2) below.

• (2) Those cases are where an 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.

• (3) The cost towards which contributions may be made under such a scheme shall not exceed £5,000 for any one dwelling, but the Secretary of State may, by order made with the consent of the Treasury, substitute another amount for £5,000.

• (4) In this section—

• " house " includes a flat;

• " local authority " means the council of a district or London borough, the Greater London Council, the Common Council of the City of London or the Council of the Isles of Scilly.

• (5) Section 79 of the 1974 Act (payment of improvement contributions to housing authorities) is hereby repealed.

General improvement areas, housing action areas and priority neighbourhoods

109

• (1) The enactments relating to general improvement areas and housing action areas are amended in accordance with Schedule 13 to this Act.

• (2) Part VI of the 1974 Act (priority neighbourhoods) shall cease to have effect but without prejudice to the status of any land as part of a priority neighbourhood declared before the commencement of this section.

• (3) Section 29B of the 1969 Act (incorporation of priority neighbourhood into general improvement area) shall cease to have effect; but—

• (a) any land comprised in a priority neighbourhood declared before the commencement of this section shall cease to be such land on the area comprising the land becoming a general improvement area; and

• (b) this subsection does not affect the operation of section 29B in any case where a preliminary resolution under that section was passed before the commencement of this section.

Mortgages and home ownership

Local authority mortgage interest rates

110

• (1) Where, after the commencement of this subsection, a local authority—

• (a) advances money for any of the purposes mentioned in subsection (2) below ; or

• (b) on the disposal of any dwelling-house, allows or has to allow any sum to be left outstanding on the security of the dwelling-house; or

• (c) takes a transfer of a mortgage in pursuance of section 111 of this Act;

the provision to be made by it with respect to interest on the sum advanced or remaining outstanding shall comply with the following provisions of this section, unless the advance, disposal or transfer is made in pursuance of a binding contract entered into before the commencement of this subsection or entered into by the acceptance of an offer made by the local authority which was capable of being accepted before the commencement of this subsection.

• (2) The purposes mentioned in subsection (1)(a) above are—

• (a) acquiring a house ;

• (b) constructing a house ;

• (c) converting another building into a house or houses or acquiring another building and converting it into a house or houses;

• (d) altering, enlarging, repairing or improving a house ; and

• (e) facilitating the repayment of an amount outstanding on a previous loan made for any of the purposes specified in paragraphs (a) to (d) above ;

and " house " in this subsection has the same meaning as in the Housing (Financial Provisions) Act 1958.

• (3) The rate of interest shall be whichever is for the time being the higher of the following, namely—

• (a) the standard national rate (as defined in subsection (4) below); and

• (b) the applicable local average rate (as defined in subsection (5) below);

and shall be capable of being varied by the local authority whenever a change in either or both of those rates requires it; and the amount of the periodic payments shall be capable of being varied correspondingly.

• (4) The standard national rate is the rate for the time being declared as such by the Secretary of State after taking into account interest rates charged by building societies in the United Kingdom and any movement in those rates.

• (5) The applicable local average rate is whichever of the two rates for the time being declared by the local authority in accordance with subsection (6) below is applicable.

• (6) A local authority shall for such period not exceeding six months and beginning at the commencement of subsection (1) above as it may determine and for every subsequent period of six months declare, on a date falling within the month immediately preceding that period, a rate applicable to the advances and transfers mentioned in subsection (1)(a) and (c) above and a rate applicable to the sums left outstanding as mentioned in subsection (1)(6) above; and—

• (a) the rate applicable to those advances and transfers shall be a rate exceeding by \ per cent, that which the authority estimates it has to charge in order to service the loan charges on money borrowed or to be borrowed by the authority for the purpose of such advances and transfers; and

• (b) the rate applicable to the sums left outstanding shall be a rate exceeding by \ per cent, the average, on the date the rate is declared, of the rates at which all loan charges debited to the authority's appropriate account are serviced.

• (7) The appropriate account for the purposes of paragraph (b) of subsection (6) above is—

• (a) for sums left outstanding on the disposal of dwelling houses held by a local authority under Part V of the 1957 Act, the authority's Housing Revenue Account; and

• (b) for any other sums left outstanding, the general fund if the authority is the Greater London Council or the Council of the Isles of Scilly, the county fund if it is the council of a county, the general rate if it is the Common Council of the City of London and the general rate fund in any other case ;

and in that subsection " loan charges " has the meaning given by section 104(3)(b) of the 1972 Act (or, in relation to the council of a county, the meaning that would be so given if the council were a housing authority within the meaning of that Act).

• (8) Where, on any such change as is mentioned in subsection (3) above, a rate of interest is capable of being varied, the local authority shall vary it and shall serve on the person liable to pay the interest notice in writing of the variation not later than two months after the change; and the variation shall take effect with the first payment of interest due after a date specified in the notice, which—

• (a) if the variation is a reduction, shall be not later than one month after the change ; and

• (b) if the variation is an increase, shall be not earlier than one month nor later than three months after the service of the notice.

• (9) On a variation, in accordance with subsection (8) above, of a rate of interest the local authority may make a corresponding variation of the periodic payments, which shall be notified and take effect together with the variation of the rate of interest; and it shall do so if otherwise the period over which the repayment of principal is to be made would be reduced below the period fixed when the mortgage was effected.

• (10) The Secretary of State may by notice in writing to a local authority direct it to treat a rate specified in the notice as being the higher of the rates mentioned in subsection (3) above, either during a period specified in the notice or until further notice, and may by a further notice in writing vary or withdraw any direction so given ; and where such a direction is given the preceding provisions of this section shall have effect accordingly.

• (11) This section shall not prevent a local authority, if the conditions stated in subsection (12) below are satisfied, from giving assistance to a person acquiring a house in need of repair or improvement by making provision for waiving or reducing, for a period ending not later than five years after the date of the advance mentioned in subsection (1)(a) above or the disposal mentioned in subsection (1)(b) above, the interest payable on the sum advanced or remaining outstanding and for dispensing during that period with any repayment of principal.

• (12) The conditions mentioned in subsection (11) above are that—

• (a) the assistance is given in accordance with a scheme which either has been approved by the Secretary of State or conforms with such requirements as may be specified in an order made by the Secretary of State with the consent of the Treasury ; and

• (b) the person acquiring the house has entered into an agreement with the local authority to carry out, within a period specified in the agreement, such works of repair or improvement as are so specified.

• (13) This section shall not prevent a local authority from giving assistance in the manner provided by section 1(4)(b) of the Home Purchase Assistance and Housing Corporation Guarantee Act 1978 (part of certain loans to be free of interest for up to five years).

• (14) This section does not apply to loans made by local authorities to housing associations under section 119 of the 1957 Act.

• (15) In this section " local authority " means the council of a county, the council of a district or London borough, the Greater London Council, the Common Council of the City of London or the Council of the Isles of Stilly.

Local authority and Housing Corporation indemnities for building societies

111

• (1) Local authorities and the Housing Corporation may, with the approval of the Secretary of State, enter into agreements with building societies lending on the security of house property whereby, in the event of default by the mortgagor, and in circumstances and subject to conditions specified in the agreements, an authority or the Corporation binds itself to indemnify the building society in respect of—

• (a) the whole or part of the mortgagor's outstanding indebtedness ; and

• (b) any loss or expense falling on the building society in consequence of the mortgagor's default.

• (2) In subsection (1) above " house property " means any property which is a house for the purposes of the Housing (Financial Provisions) Act 1958.

• (3) The agreement may also, where the mortgagor is made party to it, enable or require the authority or the Corporation in specified circumstances to take a transfer of the mortgage and assume rights and liabilities under it, the building society being then discharged in respect of them.

• (4) The transfer may be made to take effect—

• (a) on any terms provided for by the agreement (including terms involving substitution of a new mortgage agreement or modification of the existing one); and

• (b) so that the authority or the Corporation are treated as acquiring (for and in relation to the purposes of the mortgage) the benefit and burden of all preceding acts, omissions and events.

• (5) The Secretary of State may under subsection (1) approve particular agreements or give notice that particular forms of agreement have his approval; and—

• (a) he may in either case make the approval subject to conditions;

• (b) he shall, before giving notice that a particular form has his approval, consult the Chief Registrar of Friendly Societies and such organisations representative of building societies and local authorities as he thinks expedient.

• (6) In this section " local authority " means a county or district council, the Greater London Council, a London borough council, the Common Council of the City of London or the Council of the Isles of Scilly.

• (7) In this section " building society " means a society within the Building Societies Act 1962 or the Building Societies Act (Northern Ireland) 1967.

• (8) Section 16(3) and (5) of the Restrictive Trade Practices Act 1976 (recommendations by services supply association to members) shall not apply to recommendations made to building societies about the making of agreements under this section, provided that the recommendations are made with the approval of the Secretary of State, which may be withdrawn at any time on one month's notice.

Vesting of mortgaged property by local authorities

112

• (1) The following provisions of this section apply where, before the commencement of section 91(1) above, a local authority has sold any property under the powers of section 104(1) of the 1957 Act and—

• (a) part of the price was secured by a mortgage on the property; and

• (b) such a condition was imposed on the sale as is mentioned in section 104(3)(c) of that Act (right of pre-emption) ; and

• (c) the period during which the authority has the right to re-acquire the property under that condition has not expired.

• (2) If the authority as mortgagee has become entitled to exercise the power of sale conferred by section 101 of the Law of Property Act 1925 or by the mortgage deed, it may, if the county court gives it leave to do so, by deed vest the property in itself—

• (a) for such estate and interest in the property as is the subject of the mortgage or as it would be authorised to sell or convey under that Act on exercising its power of sale; and

• (b) freed from all estates, interests and rights to which the mortgage has priority,

but subject to all estates, interests and rights which have priority to the mortgage.

• (3) Accordingly, on the vesting of the property the authority's mortgage term or charge by way of legal mortgage, and any subsequent mortgage term or charge, shall merge or be extinguished as respects the property vested.

• (4) Where the title to the property is registered under the Land Registration Acts 1925 to 1971 the Chief Land Registrar shall, on application being made to him by the local authority, register the authority as proprietor of the property, free from all estates, interests and rights to which its mortgage had priority, and he shall not be concerned to inquire whether any of the requirements of this and the following section were complied with.

• (5) Where a local authority conveys the property, or part of it, to any person—

• (a) he shall not be concerned to inquire whether any of the provisions of this or the following section were complied with; and

• (b) his title shall not be impeachable on the ground that the property was not properly vested in the authority or that those provisions were not complied with.

• (6) Where application for leave under this section is made to the county court, the county court may adjourn the proceedings or postpone the date for the execution of the local authority's deed for such period or periods as the court thinks reasonable.

• (7) Any such adjournment or postponement may be made subject to such conditions with regard to payment by the mortgagor of any sum secured by the mortgage or the remedy of any default as the court thinks fit; and the court may from time to time vary or revoke any such condition.

• (8) Property vested under this section shall be treated as acquired under Part V of the 1957 Act.

Compensation and accounting under s. 112

113

• (1) Where, under section 112 above, a local authority has vested any property in itself it shall appropriate a fund equal to the aggregate of—

• (a) the price at which the authority could have re-acquired the property by virtue of the condition mentioned in section 112(1)(b) above; and

• (b) interest on that price for the period beginning with the vesting and ending with the appropriation at the rate or rates prescribed for that period under section 32 of the Land Compensation Act 1961.

• (2) The fund shall be applied—

• (a) first, in discharging, or paying sums into court for meeting, any prior incumbrances to which the vesting is not made subject;

• (b) secondly, in recovering costs, charges and expenses properly incurred by the authority as incidental to the vesting of the property; and

• (c) thirdly, in recovering the mortgage money, interest, costs, and other money (if any) due under the mortgage ;

and any residue then remaining in the fund shall be paid to the person entitled to the mortgaged property, or who would have been entitled to give receipts for the proceeds of sale of the property if it had been sold in exercise of the power of sale.

• (3) Section 107(1) of the Law of Property Act 1925 (mortgagee's written receipt sufficient discharge for money arising under power of sale) applies to money payable under this section as it applies to money arising under the power of sale conferred by that Act.

Subsidised home loans-amendments as to options

114

• (1) If an option notice under Part II of the Housing Subsidies Act 1967 (subsidised loans for house purchase and improvement) is given—

• (a) with the qualifying lender's agreement and in such circumstances or in such cases or descriptions of case as may be specified in directions given by the Secretary of State; or

• (b) not earlier than twelve months after the date of the repayment contract;

it shall have effect notwithstanding that the conditions specified in section 24(3) (a) and (b) of the Act are not satisfied.

• (2) An option notice given under subsection (1) above takes effect from the first day of April falling not less than three months after the notice is given; but if it is given under subsection (1)(a) above and it is so agreed between the borrower and the qualifying lender, it takes effect on the first day of such month beginning not less than three months after it is given as is so agreed.

• (3) An option notice may be cancelled as from any end of March falling not less than twelve months after the date of the repayment contract by a notice given by the borrower to the lender not less than three months before the cancellation.

• (4) Unless authorised by order under subsection (5) below—

• (a) an option notice given by virtue of subsection (1)(b) above cannot be cancelled by a notice under subsection (3) above; and

• (b) where an option notice has been cancelled under subsection (3) above no further option notice can be given under subsection (1)(b) above in respect of the same repayment contract.

• (5) If it appears to the Secretary of State appropriate to do so having regard to any material change in taxation or other conditions likely to affect a borrower's decision whether or not to take a subsidised loan, he may by order authorise the giving or cancellation of option notices in accordance with subsections (1) to (3) above in such circumstances or descriptions of case as may be specified in the order.

• (6) An order under subsection (5) above shall not authorise the giving of any option notice or of a notice cancelling an option notice later than twelve months after the end of the year in which the order is made.

• (7) A notice under subsection (3) above must be in writing and in such form as the Secretary of State may direct; and the reference in that subsection to the borrower includes persons in whom the rights and obligations under the repayment contract are for the time being vested.

• (8) Before making an order under subsection (5) above the Secretary of State shall have such consultations with qualifying lenders or organisations representative of them as he thinks appropriate having regard to the purposes of the proposed order.

• (9) This section shall be construed, and Part II of the Act of 1967 shall have effect, as if this section were contained in that Part.

Subsidised loans-further application of Part II of 1967 Act

115

• (1) In relation to a loan which satisfies the two conditions stated in subsections (2) and (3) below Part II of the Housing Subsidies Act 1967 shall have effect as if the loan were for or in connection with one or more of the purposes specified in section 24(1 )(b) of that Act.

• (2) The first condition is that the loan—

• (a) is made as part of a scheme under which not less than nine-tenths of the proceeds of the loan are applied to the purchase by the person or persons to whom it is made of an annuity—

• (i) ending, if the loan is made to one person, with his life or with the life of the survivor of two or more persons who include that person, and

• (ii) ending, if the loan is made to more than one person, with the life of the survivor of two or more persons who include the persons to whom the loan is made; or

• (b) was made under such a scheme before the commencement of this section.

• (3) The second condition is that each of the persons mentioned in subsection (2) above has attained the age of sixty-five years at the time the loan is made (or, if the loan was made before the commencement of this section, had attained that age at the time the loan was made).

Other amendments relating to subsidised loans

116

• (1) Part II of the Housing Subsidies Act 1967 is amended as shown in Schedule 14 (amendments to make new or altered provision about the conditions on which subsidised loans are to be available, the duration of subsidy and the bodies who are to be qualifying lenders).

• (2) Where a guarantee in respect of an advance by a building society to a borrower in Northern Ireland is given by an insurance company in pursuance of arrangements made under Article 14 of the Housing (Northern Ireland) Order 1978 (guarantee of advances in excess of normal amount)—

• (a) the guarantee is to be regarded as an appropriate policy for the purposes of section 33(1) of the Building Societies Act 1962 (advances for the payment of certain premiums); and

• (b) section 26(3) of that Act (which limits the amount of an advance where certain guarantees are given) does not apply to the guarantee.

Other provisions about local authority housing finance

Rent allowance and rent rebate subsidy

117

• (1) The amount of rent allowance subsidy payable to a local authority (for the credit of the general rate fund) shall be 90 per cent, of the authority's standard amount of rent allowances for the year, as defined by section 20(8) of the 1972 Act.

• (2) In section 3 of the 1975 Act (modified rent rebate subsidy)—

• (a) in subsection (3) (rate of subsidy) "90 per cent." Is substituted for " 75 per cent. "; and

• (b) in subsection (4)(a) (rate fund contribution) " 10 per cent." is substituted for " 25 per cent. ".

• (3) A local authority's rate fund contribution under section 3(4) of the 1975 Act, so far as payable under paragraph (a) of that subsection (percentage of standard amount of rent rebates), is not to count as relevant expenditure for the purposes of section 1 of the Local Government Act 1974 (rate support grant).

• (4) In section 19(2) of the Development of Rural Wales Act 1976 (rate of rent rebate subsidy payable to the Development Board for Rural Wales), " 90 per cent." is substituted for " 75 per cent. ".

• (5) This section applies in respect of subsidies payable for 1981-82 and subsequent years.

Rent rebates and allowances

118

Part II of the 1972 Act (rent rebates and allowances) shall have effect, in relation to the operation of rebate and allowance schemes after such date as the Secretary of State may by order appoint, subject to the amendments set out in Schedule 15 to this Act.

Rent rebates etc. and supplementary benefits

119

• (1) Except in accordance with directions of the Secretary of State, no rebate or allowance shall be paid by an authority under or by virtue of Part II of the 1972 Act to any person if, to the authority's knowledge—

• (a) he is receiving supplementary benefit; or

• (b) his income or resources fall to be aggregated under the 1972 Act or the Supplementary Benefits Act 1976 with those of another person who is receiving that benefit.

• (2) The Secretary of State may also give directions modifying the application of Part II of the 1972 Act (including Schedules 3 and 4) in circumstances where a person's entitlement to rebate or allowance is or may be affected by subsection (1) or directions under it.

• (3) Authorities shall supply the Secretary of State with such information in their possession as may be required to give effect to the Supplementary Benefits Act 1976; and the Secretary of State shall supply authorities with such information concerning claims for and payments of supplementary benefits as authorities may require to give effect to their rebate and allowance schemes.

• (4) Part II of Schedule 3 to the 1972 Act and Part II of Schedule 4 to that Act (provisions superseded by this section regarding relationship between supplementary benefits and rent rebates and allowances) are hereby repealed.

• (5) In this section " authority " means any of those bodies which under Part II of the 1972 Act operate rent rebate or rent allowance schemes; and " supplementary benefit" means the same as in that Part of that Act.

• (6) In section 22 of the 1972 Act (permitted totals of rent rebates and allowances) after subsection (1) there are inserted the following subsections—

(1A) The Secretary of State may, on application by an authority, direct that the authority's permitted total of rebates or allowances for such period as may be specified in the direction shall be such proportion of their standard amount of rent rebates or, as the case may be, standard amount of rent allowances, greater than 110 per cent., as may be specified in the direction. (1B) Any direction given under subsection (1A) above may be made conditional upon compliance by the authority concerned with such conditions as may be specified in the direction.

PART VIII — Housing Associations and the Housing Corporation

Borrowing powers of Housing Corporation

120

• (1) In section 7(5) of the 1974 Act (which limits the aggregate amount outstanding in respect of certain advances and loans to the Housing Corporation and its subsidiaries to £400 million but enables the limit to be raised to £750 million) for " £400 million " and " £750 million " there are substituted respectively " £2,000 million " and " £3,000 million ".

• (2) In ascertaining the limit imposed by that section any interest payable under section 7(6) of that Act on a loan made by the Secretary of State to the Housing Corporation which, with the approval of the Treasury, is deferred and treated as part of the loan, shall, so far as outstanding, be treated as outstanding by way of principal, whether the loan was made before or is made after the commencement of this section.

Grants to and by Housing Corporation

121

• (1) The Secretary of State may, with the consent of the Treasury, make out of moneys provided by Parliament such grants to the Housing Corporation as appear to him required to enable the Corporation to meet the expenses incurred by it in the exercise of its functions, and any such grant may be made subject to such conditions as he may with the consent of the Treasury determine.

• (2) In exercising its functions under section 1(2)(a) and (b) of the 1974 Act the Housing Corporation may, with the consent of the Secretary of State and of the Treasury, make grants—

• (a) to registered housing associations towards the expenses incurred by them in carrying out the objects mentioned in section 13(3)(c) and (d) of that Act (advice on formation or running of other housing associations and provision of services for them); and

• (b) to other voluntary organisations towards the expenses incurred by them in carrying out the like objects ;

and any such grant may be made subject to such conditions as the Corporation may, with the consent of the Secretary of State and of the Treasury, determine.

• (3) In this section "voluntary organisation" means a body the activities of which are carried on otherwise than for profit.

Disposal of land by registered housing associations

122

• (1) Without prejudice to the provisions of Chapter I of Part I of this Act, every registered housing association shall, subject to section 2 of the 1974 Act (control by Housing Corporation of dispositions by housing associations), have power by virtue of this section, but not otherwise, to dispose in such manner as it thinks fit of any land held by it.

• (2) If, in a case where a registered housing association disposes of any land, section 39 of the Settled Land Act 1925 (disposal of land by trustees) would apply but for this subsection, that section shall not apply in relation to the disposal; and accordingly the disposal need not be for the best consideration in money that can reasonably be obtained.

• (3) Nothing in subsection (2) above shall be taken to authorise any action on the part of a charity that would conflict with the trusts of the charity.

• (4) Subsections (2) to (9) of section 104B of the 1957 Act (repayment of discount on early disposal of freehold or lease), which is inserted in that Act by section 92 of this Act, apply (with the modification specified in subsection (5) below) in relation to a disposal by a registered housing association made under this section with the consent of the Housing Corporation, as they apply to a disposal by the local authority made under section 104 of that Act with the consent of the Secretary of State; and accordingly do not apply in any such case if the consent so provides.

• (5) The modification referred to in subsection (4) above is that the Housing Corporation is added to the bodies specified in subsection (6) of section 104B.

• (6) Section 104C of the 1957 Act (power to impose covenant limiting freedom to dispose of houses in National Parks and areas of outstanding beauty, etc.), which is also inserted in that Act by section 92 of this Act, shall apply in relation to a conveyance, grant or assignment executed under this section by a registered housing association as it applies to a conveyance, grant or assignment executed under section 104 of that Act by a local authority.

Consent of Housing Corporation to disposals of land by housing associations and housing trusts

123

• (1) Section 2 of the 1974 Act (control by Housing Corporation of dispositions of land by housing associations) is amended as follows.

• (2) After subsection (1) there are inserted the following subsections—

(1A) Any consent of the Corporation may be given either generally to all housing associations or to any particular association or description of association and either in relation to any particular land or description of land. (1B) Any such consent may be given subject to such conditions as the Corporation sees fit to impose.

.

• (3) For subsection (2) there is substituted the following subsection—

(2) Subsection (1) above shall not apply to a disposition by an unregistered housing association which is a charity if the disposition is one which, by virtue of subsection (1) or (2) of section 29 of the Charities Act 1960 (certain disposals not to take place without an order of the court or of the Charity Commissioners), cannot be made without such an order as is mentioned in that section.

.

• (4) After subsection (3) there is inserted the following subsection—

(3A) Subsection (1) above shall not apply to the letting, by a registered housing association or by an unregistered housing association which is a housing trust, of any land under a secure tenancy or under what would be a secure tenancy but for any of paragraphs 2 to 13 of Schedule 3 to the Housing Act 1980 or, as the case may be, but for any of paragraphs 2 to 7 of Schedule 1 to the Tenants' Rights, Etc. (Scotland) Act 1980.

.

• (5) In subsection (4), after the word " grant " there are inserted the words " by an unregistered housing association which does not satisfy the landlord condition in section 28 of the Housing Act 1980 (bodies which are capable of granting secure tenancies) ".

• (6) After subsection (5) there is inserted the following subsection—

(5A) Where a housing association has, at any time, made a disposition requiring the consent of the Corporation under this section, then— (a) in favour of any person claiming under the association, the disposition shall not be invalid by reason that any consent of the Corporation which is required has not been given ; and (b) a person dealing with the association or a person claiming under the association shall not be concerned to see or inquire whether any such consent has been given.

.

• (7) After subsection (6) there is inserted the following subsection—

(6A) In this section— - ' housing trust' has the same meaning as in section 15 of the Rent Act 1977 ; and - ' secure tenancy ' has the same meaning as in section 28 of the Housing Act 1980 or section 10 of the Tenants' Rights, Etc. (Scotland) Act 1980.

.

Accounts and audit

124

• (1) The Secretary of State may by order lay down accounting requirements for registered housing associations with a view to ensuring that the accounts of every registered housing association are prepared in the requisite form and give a true and fair view of the state of affairs of the association, so tar as its housing activities are concerned, and of the disposition of funds and assets which are, or at any time have been, in its hands in connection with those activities.

• (2) The accounts of every registered housing association must comply with those requirements; and the auditor's report shall state (in addition to any other matters which it is required to state) whether in the auditor's opinion they do so comply.

• (3) Every registered housing association shall furnish to the Housing Corporation a copy of its accounts, and auditor's report within 6 months of the end of the period to which they relate.

• (4) A registered housing association which is a society registered under the Industrial and Provident Societies Act 1965 shall be subject to section 4(1) of the Friendly and Industrial and Provident Societies Act 1968 (obligation to appoint auditors), without regard to the volume of its receipts and payments, the number of its members or the value of its assets; and such an association is in no case to be treated as an exempt society under that section.

• (5) A registered housing association which is a registered charity but not a society registered under the Act of 1965 shall, in respect of its housing activities (and separately from its other activities, if any) be subject to Part I of Schedule 16 to this Act (provisions corresponding to those of the Act of 1968); but this does not affect any obligation falling on the charity in consequence of section 8 of the Charities Act I960 (statement of accounts to be transmitted to Charity Commissioners).

• (6) The method by which an association shall distinguish in its accounts between its housing activities and other activities shall be as laid down by orders under subsection (1) above.

• (7) Subsections (2) to (6) above apply with respect to any period beginning on or after the day on which the first order under subsection (1) comes into force ; and the requirements contained in any order under that subsection shall not apply in relation to any period beginning before the day on which the order comes into force.

Enforcement of s. 124

125

• (1) All persons who are directly concerned with the conduct and management of the affairs of a registered housing association and are in that capacity responsible for the preparation and audit of accounts shall have the duty to ensure that section 124 and (where applicable) Part I of Schedule 16 are complied with by the association.

• (2) If—

• (a) the accounts of a registered housing association, as furnished to the Housing Corporation under section 124(3), do not comply with the accounting requirements laid down under section 124(1); or

• (b) section 124(3) is not complied with in respect of the accounts and auditor's report; or

• (c) Part I of Schedule 16 is not complied with by an association which is a registered charity but not a society registered under the Act of 1965,

the association as well as each of the persons on whom the above duty is imposed shall be liable on summary conviction to a fine not exceeding £200.

• (3) It is a defence—

• (a) for a person charged under subsection (2) above to prove that he did everything that could reasonably have been expected of him by way of discharging the duty imposed by subsection (1) above ; and

• (b) for an association charged under subsection (2) above to prove that the persons mentioned in subsection (1) above did everything that could reasonably have been expected of them by way of discharging the duty imposed by subsection (1) above in relation to the association.

• (4) No proceedings for an offence under this section shall be instituted in England or Wales except by or with the consent of the Director of Public Prosecutions or the Housing Corporation

Payments to certain committee members and others

126

For subsections (3) to (6) of section 26 and for section 27 of the 1974 Act (payments to members etc. of registered 1965 Act associations and contracts with committee members) there shall be substituted the provisions set out in Part II of Schedule 16 to this Act.

Registration of housing associations

127

• (1) A housing association which is a society registered under the Industrial and Provident Societies Act 1965 may have among its objects those of—

• (a) acquiring houses to be disposed of on sale or on lease, or building houses to be disposed of on leases falling within subsection (2) below ;

• (b) repairing and improving houses, or creating them by conversion of house or other property, with a view to such disposal,

without preventing the association from being or, as the case may be, remaining registered by the Housing Corporation under section 13 of the 1974 Act.

• (2) A lease of a house falls within this subsection if—

• (a) it is granted on payment of a premium which is calculated by reference to a percentage of the value of the house or of the cost of providing it; or

• (b) the tenant (or his personal representatives) will or may be entitled to a sum calculated by reference directly or indirectly to the value of the house.

• (3) In this section " house " includes a flat.

• (4) Section 14 of the 1974 Act (the Housing Associations Registration Advisory Committee) is hereby repealed.

Removal of certain housing associations from register

128

• (1) In section 15 of the 1974 Act

• (a) after subsection (2) there is inserted the subsection set out below; and

• (b) in subsection (6) for the words " this section " there are substituted the words " subsection (2) above ".

• (2) The subsection inserted after subsection (2) is:—

(2A) Where a body which is registered— (a) has not at any time received a grant under section 29 or section 32 below or any such payment or loan as is specified in paragraph 2 or paragraph 3 of Schedule 2 to this Act; and (b) requests the Corporation to remove it from the register; the Corporation may, if they think fit, remove it from the register.

Inquiries into affairs of registered housing association and power to act for its protection

129

Sections 19 and 20 of the 1974 Act are amended and extended in accordance with Schedule 17 to this Act.

Housing association grant

130

• (1) The Secretary of State may pay housing association grant under section 29 of the 1974 Act to a registered housing association in cases where the association— :

• (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 maximum grant which may be paid in a case of the kind mentioned in subsection (1) above is £5,000 for any one dwelling, but the Secretary of State may, by order made with the consent of the Treasury, substitute another amount for £5.000.

• (3) In this section " house " includes a flat.

• (4) The provisions of Part III of the 1974 Act relating to housing association grant are amended in accordance with Schedule 18 to this Act.

Recoupment of surplus rental income

131

• (1) Every registered housing association which has at any time received a grant under section 29 of the 1974 Act shall show separately in its accounts for any period the surpluses arising from increased rental income during that period from housing projects in connection with which the grant was made.

• (2) The surpluses are to be shown by each association in a fund to be known as the Grant Redemption Fund; and the method of constituting the Fund and of showing it in the association's accounts is to be as required by order of the Secretary of State under section 124(1) above.

• (3) The surpluses in respect of any period are to be calculated in a manner determined by the Secretary of State for housing associations generally, and in determining it the Secretary of State may take account of the rental income received or capable of being received by an association and the management and maintenance costs and loan charges incurred or likely to be incurred by it.

• (4) The manner of calculating surpluses shall be determined after consultation with organisations appearing to the Secretary of State to be representative of registered housing associations, and shall be made known to the associations from time to time; and surpluses may be calculated differently for housing associations of different kinds or dwellings in different parts of Great Britain.

• (5) The Secretary of State may from time to time give notice to a registered housing association requiring it to pay to him, with interest, if demanded, or to apply or appropriate for purposes he specifies, any sums standing in its Grant Redemption Fund at the end of a period of account.

• (6) Any interest demanded under subsection (5) above

• (a) shall be at the rate or rates previously determined by the Secretary of State with the consent of the Treasury for housing associations generally and published by him or, if no such determination has been made, at the rate or rates specified with the consent of the Treasury in the notice ; and

• (b) shall be payable either from the date of the notice or from such earlier date, but not earlier than the end of the period of account, as the notice may specify.

• (7) Subsections (1) and (2) above apply to an association's accounts for any period beginning on or after the date on which the first order under section 124(1) above comes into force.

Amendment of rules of registered housing association

132

In section 24 of the 1974 Act the following subsection is inserted after subsection (5): —

(5A) In relation to a registered 1965 Act association section 10 of the 1965 Act shall have effect as if— (a) in subsection (1) after the words " shall not be valid" there were inserted the words " without the consent of the Housing Corporation given by order under the seal of the Corporation nor " and after paragraph (b) there were inserted the words " and there shall also be sent with the copies of the amendment a copy of the Corporation's consent " ; and (b) in subsection (2) at the end of the words preceding the paragraphs there were inserted the words " notice of any such change shall be sent to the Housing Corporation and.

Interpretation of Part VIII

133

• (1) In this Part of this Act—

• " registered charity" means a charity registered under section 4 of the Charities Act 1960, and "exempt charity " has the same meaning as in that Act;

• " registered housing association" means an association registered under section 13 of the 1974 Act.

• (2) For the purposes of this Part of this Act, the housing activities of a registered housing association are all those activities by reference to which it is to be regarded as a housing association (within the meaning given to that expression by section 189(1) of the 1957 Act or, as the case may be, section 208(1) of the Housing (Scotland) Act 1966) and as registrable under Part II of the 1974 Act.

Part IX — General

Housing Revenue Account and Housing Repairs Account

Working balance in Housing Revenue Account

134

Housing Repairs Account

135

• (1) Any local authority may, for the year 1981-82 and for subsequent years, keep an account (to be known as the Housing Repairs Account) in accordance with this section.

• (2) Every authority which keeps a Housing Repairs Account shall credit to the account—

• (a) contributions from its Housing Revenue Account;

• (b) income arising from the investment or other use of money credited to the account; and

• (c) sums received by the authority in connection with the repair or maintenance of any of its housing stock, either from its tenants or from the sale of scrapped or salvaged materials.

• (3) Every such authority shall debit to its Housing Repairs Account—

• (a) all expenditure incurred by it in connection with the repair or maintenance of any of its housing stock ;

• (b) any amount which is carried to the credit of its Housing Revenue Account in accordance with subsection (5) below; and

• (c) such expenditure incurred by it in connection with the improvement or replacement of any of its housing stock as may from time to time be determined by the Secretary of State.

• (4) Every such authority shall ensure that sufficient credits are carried to its Housing Repairs Account to secure that the account never shows a debit balance.

• (5) If an authority considers that any credit balance in its Housing Repairs Account at the end of a year will not be required for the purposes of that account, it may carry some or all of the balance to the credit of its Housing Revenue Account.

• (6) If an authority which has opened a Housing Repairs Account ceases to maintain the account, any balance shall be carried to its Housing Revenue Account.

• (7) In paragraph 3(1) of Schedule 1 to the 1972 Act (items to be debited to Housing Revenue Account)—

• (a) at the end of sub-paragraph (c) there are added the words " (except where that expenditure is properly debited to the Housing Repairs Account) "; and

• (b) after that sub-paragraph there is inserted the following sub-paragraph—

(d) contributions from the account to the Housing Repairs Account.

• (8) In paragraph 5(1) of Schedule 1 to the 1972 Act (Secretary of State's directions as to amounts to be credited or debited to Housing Revenue Account), after the words " Revenue Account" there are inserted the words " or, as the case may be, a Housing Repairs Account ".

• (9) Any determination by the Secretary of State under subsection (3)(c) above may be made to apply to local authorities generally or to a particular authority or group of authorities and may make different provision in respect of different cases or descriptions of case.