Housing (Scotland) Act 1987

217 Duty of local authorities to offer loans to meet expenses of improvement of houses in housing action areas. S

(1) Where the owner or the lessee of a house situated in a housing action area is willing to carry out improvement works which are, in the opinion of the local authority, required in order to bring the house up to the standard specified under section 90(3) or by virtue of section 91(3), he may, not later than 9 months from the date of publication and service of a notice of a final resolution passed under Part I of Schedule 8, apply to the local authority for a loan.

(2) Subject to this section, if the local authority are satisfied that the applicant can reasonably be expected to meet obligations assumed by him in pursuance of this section in respect of a loan of the amount of the expenditure to which the application relates, the authority shall offer to make a loan of that amount to the applicant, the loan to be secured to the authority by a standard security over the premises consisting of or comprising the house.

(3) Subject to this section, if the local authority are not so satisfied, but consider that the applicant can reasonably be expected to meet obligations assumed by him in pursuance of this section in respect of a loan of a smaller amount, the authority may, if they think fit, offer to make a loan of that smaller amount to the applicant, the loan to be secured as aforesaid.

(4) Any offer made by the local authority under this section shall contain a condition to the effect that, if an improvement grant or a repairs grant becomes payable under Part XIII in respect of the expenditure to which the application under this section relates, the authority shall not be required to lend a sum greater than the amount of the expenditure to which the application relates after deduction of the amount of the grant.

(5) The local authority shall not make an offer under the foregoing provisions of this section unless they are satisfied that—

(a) the applicant’s estate or interest in the house amounts to ownership or a lease for a period which will not expire before the date for final repayment of the loan, and

(b) according to a valuation made on behalf of the local authority, the amount of the principal of the loan does not exceed the value which it is estimated the subjects comprised in the security will bear after improvement of the house or houses to the standard specified under section 90(3) or by virtue of section 91(3).

(6) The rate of interest payable on a loan under this section shall be a variable rate calculated under section 219.

(7) Subject to this section, the loan offered by the local authority under this section shall be subject to such reasonable terms as the authority may specify in their offer.

(8) The local authority’s offer may in particular include any such terms as are described in paragraphs 4 to 7 of Schedule 17 (repayment of principal and interest) and provision for the advance being made by instalments from time to time as the works of improvement progress.

(9) Where an improvement grant or repairs grant is payable partly in respect of expenditure to which the application under this section relates, and partly in respect of other expenditure, the reference in subsection (4) to an improvement grant or repairs grant shall be taken as a reference to the part of the grant which in the opinion of the local authority is attributable to the expenditure to which the application under this section relates.