Housing (Scotland) Act 1987

200 The slum clearance subsidy

(1) A local authority shall be entitled to slum clearance subsidy in respect of such expenditure incurred by them as may be approved by the Secretary of State which falls within any of the following categories—

(a) any expenses in demolishing a building in pursuance of any provision of Part IV and Part VI less any such expenses which the local authority have recovered from the owner of the building under any such provision and any amount realised by the local authority in the sale of materials of the building;

(b) any expenses in the clearance of the site of any such building as is referred to in paragraph (a);

(c) any payment under section 308 (payments to certain owner occupiers and others in respect of houses not meeting tolerable standard which are purchased or demolished) other than any such payment in respect of an interest in a house which has been purchased by the local authority for the purpose of bringing that house or another house up to the tolerable standard;

(d) any payment under section 304 (payments in respect of well-maintained houses) other than any such payment in respect of an interest in a house which has been purchased by the local authority for the purpose of bringing that house or another house up to the tolerable standard;

(e) the cost of any works carried out by the local authority under section 121(7) (local authority may acquire and repair a house or building liable to closing or demolition order);

(f) any payment under section 234(5) or (6) (payment of removal and other allowances to person displaced);

(g) such other expenditure as the Secretary of State may direct.

(2) The amount of slum clearance subsidy payment to a local authority shall be an amount equal to 75 per cent. of the annual loan charges referable to the amount of expenditure incurred by them in a year which falls within any of the categories set out in subsection (2), payable annually for the period of 20 years beginning with the year immediately following the year in which the expenditure was incurred.

(3) For the purposes of subsection (2) the annual loan charges referable to the amount of expenditure incurred by the local authority shall be the annual sum which, in the opinion of the Secretary of State, would fall to be provided by the local authority for the payment of interest on, and the repayment of, a loan of that amount repayable over a period of 20 years.