8The residual subsidy
(1)This section has effect as to the circumstances in which residual subsidy is payable to a development corporation and the Scottish Special Housing Association.
(2)For the purpose of determining the amount of residual subsidy payable to a development corporation for the year 1972-73 and subsequent years, a calculation shall be made of the residual entitlement of the development corporation as defined in subsection (3) below.
(3)The residual entitlement of a development corporation shall consist of—
(a)the amount of exchequer contributions to which they are entitled for the year 1971-72 under the enactments described in Part II of Schedule 1 to this Act, as finally determined by the Secretary of State under paragraph 5 of Schedule 8 to this Act, and
(b)the further amount of such exchequer contributions to which they would be entitled for the year 1971-72 if houses, in respect of which proposals for their provision were submitted to the Secretary of State in a form acceptable to him before 1st December 1971 for his approval but which were not completed in that year, had been completed in that year; and accordingly the provisions of Part I of the Act of 1968 relating to the calculation of exchequer contributions payable thereunder shall apply for the purpose of calculating the amount referred to in this paragraph as if such houses had been so completed, and
(c)the amount of any contribution which they are entitled to receive for the year 1971-72 from a local authority under section 9(4)(b) of the [1957 c. 38.] Housing and Town Development (Scotland) Act 1957 in pursuance of an overspill agreement.
(4)The residual entitlement shall be expressed as a sum per house for the year 1971-72.
(5)Subject to subsection (6) below, the amount of residual subsidy payable to a development corporation for the year 1972-73 shall be an amount per house which is £18 less than the residual entitlement as expressed in subsection (4) above; and in each subsequent year the amount per house of residual subsidy payable to a development corporation shall be £20 less than the amount per house payable for the immediately preceding year, and so on until the amount becomes zero.
(6)Where any houses of a development corporation referred to in subsection (3)(b) above have not been completed by the end of the year 1974-75, then any residual subsidy which has been paid to the development corporation on the basis that those houses had been completed shall, if the Secretary of State so requires, be repaid to him on such terms as he may determine.
(7)Any question as to the residual entitlement and as to the number of development corporation houses shall be determined by the Secretary of State.
(8)Subsections (2) to (7) of this section shall apply to the Scottish Special Housing Association as they apply to a development corporation, except that—
(a)in subsection (3)(a) for the reference to Part II of Schedule 1 to this Act there shall be substituted a reference to Parts III and IV of that Schedule,
(b)subsection (3)(c) shall be omitted,
(c)in subsection (7) for the reference to development corporation houses there shall be substituted a reference to Scottish Special Housing Association houses.