Housing Act 1980

Section 116.

SCHEDULE 14 Amendments of Housing Subsidies Act 1967 (c.29) Part II

1 In section 24 of the 1967 Act, after subsection (2) insert—

“(2A) Prescribed conditions governing entitlement to subsidy may be imposed by reference to—

(a) a borrower's personal circumstances;

(b) the amount of the loan and the terms of repayment;

(c) the use and occupation foreseen for the property on which the loan is secured ; and

(d) the existence and terms of any loans taken by a borrower or his spouse before the option notice ;

and such other conditions may be prescribed as the Secretary of State thinks necessary to ensure that loans are subsidised only in proper cases, that subsidy is withdrawn when the conditions cease to be fulfilled, and that the borrower repays to the Secretary of State any sums paid by him under subsection (2)(a)(ii).”.

2 In section 24(3)(c) of the Act, for the words from "a declartion " to " section 24B of this Act is fulfilled " substitute—

“the prescribed declaration with respect to his personal circumstances and the fulfilment of the subsidy conditions”;

and in that subsection omit paragraph (d) and all after it.

3 In that section, omit subsections (4), (5) and (5A).

4 For sections 24A and 24B substitute—

“24A Duration of subsidy.

(1) An option notice shall have effect for the period beginning with the date on which it is signed and ending with whichever of the following events first occurs, namely—

(a) the satisfaction of the borrower's debt to the lender;

(b) the realisation of the security on the interest in land in question, whether or not the borrower's debt is fully satisfied thereby ;

(c) that interest's ceasing to be security for the loan;

(d) the vesting of the rights and obligations under the repayment contract of the borrower (or, in the case of joint borrowers, of both or all of them) in some other person who has become beneficially entitled to the interest;

(e) subject to subsection (2) below, the vesting of the lender's rights under the repayment contract in some other person ;

(f) if the number of the periodical payments referred to in section 24(1)(c) is not fixed by or ascertainable under the repayment contract, the expiration of 30 years from the beginning of the period for which the option notice has effect;

(g) the taking effect of a direction under section 24(3A) with respect to the loan ;

(h) any event which by regulations under section 24(2A) is made to terminate subsidy entitlement, in consequence of the subsidy conditions having ceased to be fulfilled or otherwise.

(2) If at the expiration of the period of 3 months beginning with the date of the vesting referred to in subsection (1)(e) above the other person there referred to is a qualifying lender, the option notice shall not cease to have effect by virtue of that paragraph; and the notice and the provisions of this Part of this Act shall be treated as having continued to have effect during that period as if the other person were a qualifying lender, notwithstanding that at any time during that period he was not so.”

5 (1) In section 26(1), for " subsections (2) to (6) of the said section 24 " substitute " sections 24(2) to (6) and 24A above. "

(2) In section 26(2) for " subsections (2) to (6) of that section " substitute " sections 24(2) to (6) and 24A above " and for " the said subsections (2) to (6)" substitute " sections 24(2) to (6) and 24A above ".

6 (1) In section 27(1)(c) after sub-paragraph (iii) insert— “and

(iv) other bodies whose activities and objects appear to him to qualify them for inclusion in this subsection”.

(2) At the end of section 27(1) insert—

“(g) trustee savings banks;

(h) the Scottish Special Housing Association ;

(j) the Development Board for Rural Wales.”.

(3) In section 32(1) at the end insert—

• “" subsidy conditions" means conditions prescribed under section 24(2A) of this Act”.