Housing Associations Act 1985

Section 82.

SCHEDULE 7 Powers Exercisable Where Loan Outstanding under Section 2 of The Housing Act 1964

Introductory

1 This Schedule applies where the Housing Corporation has made a loan to a housing association under section 2 of the [1964 c. 56.] Housing Act 1964 before the repeal of that section by the [1985 c. 71.] Housing (Consequential Provisions) Act 1985 and the loan has not been repaid.

Directions as to disposal of land securing loan

2 (1) The Corporation may, with the consent in writing of the Secretary of State, give the association directions with respect to the disposal of land belonging to the association in which the Corporation has an interest as mortgagee under a mortgage, or as creditor in a heritable security, entered into by the association to secure the loan.

(2) Directions so given may be varied or revoked by subsequent directions given with the like consent.

3 Where the Corporation proposes to give a housing association directions under paragraph 2 requiring the association to transfer to the Corporation the association's interest in any land, the Secretary of State shall not consent to the giving of the directions unless he at the same time approves, or has previously approved, a scheme under paragraph 5 with respect to that land.

4 Where the Corporation proposes to give directions under paragraph 2 to an association whose rules restrict membership to persons entitled or prospectively entitled (whether as tenants or otherwise) to occupy a dwelling provided or managed by the association requiring the association to transfer its interest in any such land to the Corporation, or to any other person, the Secretary of State shall not consent to the giving of the directions unless he is satisfied that arrangements have been made which, if the directions are given, will secure that the members of the association receive fair treatment in connection with the transfer.

Schemes for Corporation to provide housing accommodation in place of association

5 (1) If it appears to the Corporation—

(a) that the association is experiencing difficulty in providing housing accommodation on any land which it has acquired or in managing housing accommodation provided by it on any land, or is in any way failing to perform its functions as a housing association in relation to any land, and that accordingly it is undesirable for the land in question to remain in the hands of the association,

(b) that there is no other housing association, whether in existence or about to be formed, to which the association's interest in the land in question can suitably be transferred, and

(c) that the land is capable of being, or continuing to be, used to provide housing accommodation for letting,

the Corporation may prepare and submit to the Secretary of State a scheme.

(2) The scheme shall be for the Corporation—

(a) to acquire the association's interest in the land,

(b) to undertake all such operations as may be required for the provision or continued provision on the land of housing accommodation for letting (including any operation which might have been carried out by a housing association in connection with the provision of housing accommodation), and

(c) to retain the accommodation and keep it available for letting so long as the scheme has not been terminated in any manner provided for in the scheme.

(3) Where such a scheme is submitted to the Secretary of State by the Corporation, the Secretary of State, on being satisfied of—

(a) the undesirability of the land remaining in the hands of the association, and

(b) the lack of any housing association to which it can suitably be transferred,

may, if he thinks fit, approve the scheme.

(4) If he does so the Corporation shall have power to acquire for the purposes of the scheme the association's interest in the land and to carry through the provisions of the scheme.

(5) A scheme approved by the Secretary of State under this paragraph may be varied from time to time in accordance with proposals in that behalf made by the Corporation and approved by the Secretary of State.