Housing and Town Development (Scotland) Act 1957

Exchequer contributions to local authorities and development corporations

1 Approved houses for the purpose of Exchequer contributions under Part I

(1) The provisions of this and the three next following sections shall have effect for the purpose of the payment of Exchequer contributions in respect of each new house completed after the commencement of this Act—

(a) by a local authority in the exercise of their power to provide housing accommodation, or by a development corporation otherwise than in pursuance of authorised arrangements, and in respect of which the proposals after mentioned, accompanied by such information as is required by the Secretary of State as to the estimated cost of erection of the house, were or are received by the Secretary of State on or after the first day of August, nineteen hundred and fifty-six, or

(b) by a housing association in pursuance of authorised arrangements made on or after the said first day of August,

by way of housing accommodation provided in accordance with proposals approved by the Secretary of State for the purposes of this Part of this Act :

Provided that if the Secretary of State is satisfied that the substantial effect of any authorised arrangements made as mentioned in paragraph (b) of this subsection had been agreed upon between the parties before the said first day of August those arrangements shall be deemed for the purposes of this subsection to have been made before that day.

(2) References in this Part of this Act to an approved house are references to a new house which is provided in accordance with the foregoing subsection.

(3) Any Exchequer contribution payable under this Part of this Act or under section eighty-seven of the principal Act as read with this Part of this Act—

(a) in respect of an approved house such as is mentioned in paragraph (a) of subsection (1) of this section shall be paid to the local authority or, as the case may be, to the development corporation ;

(b) in respect of an approved house such as is mentioned in paragraph (b) of that subsection shall be paid to the local authority, who shall pay to the housing association by way of annual grant an amount not less than the Exchequer contribution.

(4) No contribution shall be payable under subsection (1), (2), (3), (4) or (5) of section eighty-four of the principal Act in respect of any house which is, or, if the Secretary of State had approved or were to approve the relevant proposals, would be, an approved house.

2 Exchequer contributions in respect of approved houses

(1) Subject to the provisions of this Act, the Secretary of State shall undertake to pay, and pay, in respect of each completed approved house, an annual Exchequer contribution for a period of sixty years.

(2) An annual Exchequer contribution payable under this section shall be—

(a) in respect of each house provided by a local authority other than a house such as is mentioned in paragraphs (b) to (e) of this subsection, twenty-four pounds;

(b) in respect of each house provided by a local authority in accordance with arrangements made with the approval of the Secretary of State as being desirable by reason of special circumstances for the provision of housing accommodation in any area for persons coming to that area in order to meet the urgent needs of industry, and so coming wholly, or, in the case of a local authority who are a county council, wholly or partly, from outside the district of the authority, thirty pounds;

(c) in respect of each house provided by a local authority by way of housing accommodation for the agricultural population (being a house in respect of which the Secretary of State is of opinion that a contribution under this paragraph should be paid), thirty-six pounds;

(d) in respect of each house provided by a local authority in pursuance of any overspill agreement within the meaning of Part II of this Act, forty-two pounds;

(e) in respect of each house provided by a local authority, being an exporting authority within the meaning of Part II of this Act, in the district of another local authority (being a house in respect of which the Secretary of State is of opinion that a contribution under this paragraph should be paid), forty-two pounds; or

(f) in respect of each house provided by a development corporation otherwise than in pursuance of authorised arrangements, forty-two pounds.

(3) Without prejudice to the provisions of subsection (2) of section one hundred and twenty-eight of the principal Act (which subsection relates to the time and manner in which contributions under certain enactments shall be payable and to the conditions under which such contributions are payable) and section one hundred and twenty-nine of that Act (which relates, among other things, to the failure of a local authority to discharge any' duty, or exercise any power, under certain enactments) the payment of any Exchequer contribution under paragraph (b), (d) or (e) of the last foregoing subsection shall be subject to such conditions as may be specified by the Secretary of State when undertaking to pay the contribution and the Secretary of State may reduce the amount of any such contribution, or suspend or discontinue payment of any such contribution, if there is in his opinion any failure to comply with any condition so specified in relation thereto.

(4) Where the Secretary of State undertakes to pay an annual Exchequer contribution under any one of paragraphs (a) to (f) of subsection (2) of this section in respect of a house no contribution shall be paid in respect of the same house under any other of those paragraphs.

(5) For the purposes of subsections (1) and (2) of section eighty-seven of the principal Act (which relates to Exchequer contributions in respect of housing accommodation provided by housing associations under authorised arrangements) the Secretary of State may direct that any approved house provided by a housing association in pursuance of authorised arrangements shall be treated as if it were a house of the class mentioned in such one of paragraphs (a), (b) or (c) of subsection (2) of this section as the Secretary of State may determine to be appropriate.

(6) In this section the expression " county " does not include any county of a city.

3 Additional Exchequer contributions in respect of approved houses in certain blocks of flats

(1) In respect of any approved house which is a flat contained in a block of flats the major part of which, as determined by the Secretary of State, is of six or more storeys (inclusive of any storey constructed for use for purposes other than those of a dwelling), the Secretary of State may undertake to pay, and pay, for a period of sixty years (in addition to any other annual Exchequer contribution) an annual Exchequer contribution in accordance with the next following subsection.

(2) An annual Exchequer contribution payable under this section in respect of any approved house shall be of such amount as may be determined to be necessary to secure the amortisation over the period referred to in the foregoing subsection of an amount equal to two-thirds of the sum, if any, by which the cost of the house exceeds such sum as may be determined to represent the average cost of approved houses in Scotland (exclusive of such houses as may be determined) at the time of the approval by the Secretary of State of the proposals in accordance with which the house is provided.

In this subsection " cost " means " estimated cost ", " determined " means " determined by the Secretary of State ", and references to the cost of a house include the cost of the preparation of the site of the house (or, in the case of a flat so much Of the cost of the preparation of the site as is fairly referable to that flat) but not the cost of the site or of demolishing any building occupying the site, or part of the site, before possession of it is obtained for the purposes of preparation.

4 Additional Exchequer contributions in respect of approved houses in remote areas

(1) Where the Secretary of State is satisfied that the total expenditure likely to be incurred in any year by a local authority, not being the town council of a large burgh, in providing housing accommodation by way of approved houses could not, in consequence of the remoteness of the sites of any of the houses from centres of supply of building labour and material, be met without charging unreasonably high rents for that accommodation and other accommodation provided by the authority, or imposing an unreasonably heavy rate burden, the Secretary of State may, with the sanction of the Treasury, undertake to pay, and pay, for a period of sixty years (in addition to any other annual Exchequer contribution) an annual Exchequer contribution of such amount, and in respect of such of the houses so provided, as he considers just and reasonable.

(2) Where housing accommodation is provided by a housing association by way of approved houses in pursuance of authorised arrangements with a local authority to whom contributions under the foregoing subsection are payable, the Secretary of State may, if he thinks fit having regard to the remoteness ,oi the sites of any of the houses from centres of supply of building labour and material, pay in respect of any of the houses in any year (in addition to any other contribution payable by him) a contribution not exceeding such contribution as would be payable by him under this section in that year if the house had been provided by the local authority.