Housing (Financial Provisions) (Scotland) Act 1972

10 The high cost subsidy

(1) This section has effect as to the circumstances in which high cost subsidy is payable to a development corporation and the Scottish Special Housing Association.

(2) Subject to the provisions of this section, a development corporation shall be entitled to high cost subsidy for any year if—

(a) the amount of income per house which would have been receivable by them for the year from standard rents if no high cost subsidy had been payable for that year or any previous year (in this section referred to as " the development corporation rent income") exceeds the Scottish rent income for that year by more than such amount as the Secretary of State may from time to time determine; and

(b) the amount of expenditure per house of the development corporation for that year as determined by the Secretary of State exceeds the Scottish average expenditure for that year by more than such amount as the Secretary of State may from time to time determine.

(3) In this section " the qualifying amount " means the amount, if any, (multiplied by the number of development corporation houses for the year in question), required to be deducted from the development corporation rent income to make that income equal to the Scottish rent income plus the amount determined by the Secretary of State under subsection (2)(a) above.

(4) If, under subsection (2) above, a development corporation are entitled to high cost subsidy, then high cost subsidy shall be payable to the development corporation of an amount equal to the qualifying amount.

(5) In this section, " the Scottish rent income " and " the Scottish average expenditure " have the same meanings respectively as they have in subsection (2)(a) and (b) of section 4 of this Act, and subsection (6) of that section shall apply for the purposes of this section as it applies for the purposes of that section.

(6) This section shall apply to the Scottish Special Housing Association as it applies to a development corporation except that—

(a) for any reference to development corporation houses and the development corporation rent income there shall be substituted respectively references to Scottish Special Housing Association houses and the Scottish Special Housing Association rent income ;

(b) in paragraphs (a) and (b) of subsection (2) for the words " such amount as the Secretary of State may from time to time determine " there shall be substituted the words " more than £39 ";

(c) in subsection (3) for the words from " amount deter mined " to the end there shall be substituted the words " sum referred to in subsection (2)(a) above or, as the case may be, that sum as varied by an order under subsection (5A) below ";

(d) after subsection (5) there shall be inserted the following subsection—

“(5A) The Secretary of State may from time to time by order vary the sums referred to in subsection (2) above and section 14 of this Act shall apply to any such order.”