PART XIII GENERAL FINANCIAL PROVISIONS
Housing subsidy
421C1Housing subsidy.
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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.
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Payment of housing subsidy is 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.
422C2Calculation of housing subsidy for local housing authorities.
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The amount of the housing subsidy payable to a F6F7development corporation for a year (the year of account) shall be calculated from the amounts which, in accordance with sections 423 to 425, are the F6corporation’s—
a
base amount (BA),
b
housing costs differential (HCD), and
c
local contribution differential (LCD),
for the year, and shall be so calculated by using the formula BA+HCD-LCD.
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If the amount so calculated is nil or a negative amount, no housing subsidy is payable to the F8corporation for that year.
423C3The base amount.
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A F9F10development corporation’s base amount for a year of account is, subject to any adjustment under subsection (2), the amount calculated for the preceding year under section 422, that is to say, the amount of the housing subsidy payable to the F9corporation for that year or, if none was payable, nil or a negative amount, as the case may be.
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424C4The housing costs differential.
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A F13F14development corporation’s housing costs differential for a year of account is the amount by which their reckonable expenditure for that year exceeds their reckonable expenditure for the preceding year (and accordingly is nil or, as the case may be, a negative amount if the reckonable expenditure for the year is the same as or less than that for the preceding year).
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a
b
so much of any other expenditure incurred by the F15corporation in that year, or treated as so incurred in accordance with a determination made by the Secretary of State, as the Secretary of State may determine to be taken into account for the purposes of housing subsidy.
F163
A determination may be made for all F14development corporations or different determinations may be made for individual corporations; and a determination may be varied or revoked in relation to all or any of the corporations for which it was made.
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425C5The local contribution differential.
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A F18F19development corporation’s local contribution differential for a year of account is the amount by which their reckonable income for that year exceeds their reckonable income for the preceding year (and accordingly is nil or, as the case may be, a negative amount if their reckonable income for the year is the same as or less than that for the preceding year).
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F20A corporation’s reckonable income for a year is the amount which, in accordance with any determination made by the Secretary of State, the F21corporation are assumed to receive for that year as income which they are required to carry to their F20housing account including—
b
but excluding any other subsidy, grant or contribution.
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A determination 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, amongst other things, to past and expected movements in incomes, costs and prices.
F244
A determination may be made for all F19development corporations or different determinations may be made for different corporations or groups of corporations.
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A determination shall be made known to the F26corporations for which it is made in the year preceding the year of account for which it is to have effect.
F27426. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
427C6Recoupment of subsidy in certain cases.
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Where housing subsidy has been paid to a F28F29development corporation F30. . . 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,
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A sum recoverable under this section may, without prejudice to other methods of recovery, be recovered by withholding or reducing housing subsidy.
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The withholding or reduction under this section of housing subsidy for a year does not affect the base amount for the following year.
427AC7F32 Entitlement to subsidy in case of land subject to management agreement.
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The fact that a F33F34 development corporation F35 . . . has entered into a management agreement, and any letting of land in connection with such an agreement—
a
b
shall not be regarded as a ground for recovering, withholding or reducing any sum under section 427 (recoupment of housing subsidy).
F382
Reference in subsection (1) to a management agreement includes a section 247 or 249 arrangement, as defined by section 250A(6) of the Housing and Regeneration Act 2008.