Housing Act 1985

PART XIII E+W GENERAL FINANCIAL PROVISIONS

417—420. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1 E+W

Textual Amendments

F1 Ss. 417–420 repealed and superseded by Local Government and Housing Act 1989 (c. 42, SIF 61), ss. 74(6), 88(3), 194(4), Sch. 12 Pt. II Note 2

Housing subsidy E+W

421 Housing subsidy. E+W

(1) Housing subsidy is payable for each year to [F2 new town corporations and the Development Board for Rural Wales].

(2) Housing subsidy shall be credited [F3 to the body’s housing account]

(3) Housing subsidy shall be paid by the Secretary of State at such times, in such manner and subject to such conditions as to records, certificates, audit or otherwise as he may, with the agreement of the Treasury, determine.

(4) Payment of housing subsidy is subject to the making of a claim for it in such form, and containing such particulars, as the Secretary of State may from time to time determine.

Textual Amendments

F2 Words substituted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 para. 77(1)(3)

F3 Words substituted for s. 421(2)(a)(b) by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 para. 77(2)(3)

Modifications etc. (not altering text)

C1 Ss. 421–427A: by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 79(3) it is provided that sections 421 to 427A of the Housing Act 1985 (which are superseded, in their application to local housing authorities, by that section 79 and sections 80 and 86 of that 1989 Act) shall cease to apply in relation to such authorities

422 Calculation of housing subsidy for local housing authorities. E+W

(1) The amount of the housing subsidy payable to a [F4 new town corporation] for a year (the year of account) shall be calculated from the amounts which, in accordance with sections 423 to 425, are the [F4 corporation’s]—

(a) base amount (BA),

(b) housing costs differential (HCD), and

(c) local contribution differential (LCD),

for the year, and shall be so calculated by using the formula BA+HCD-LCD.

(2) If the amount so calculated is nil or a negative amount, no housing subsidy is payable to the [F5 corporation] for that year.

Textual Amendments

F4 Words substituted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 paras. 77(3), 78(1)

F5 Word substituted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194, Sch. 11 paras. 77(3), 78(2)

Modifications etc. (not altering text)

C2 Ss. 421–427A: by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 79(3) it is provided that sections 421 to 427A of the Housing Act 1985 (which are superseded, in their application to local housing authorities, by that section 79 and sections 80 and 86 of that 1989 Act) shall cease to apply in relation to such authorities

423 The base amount. E+W

(1) A [F6 new town corporation’s] base amount for a year of account is, subject to any adjustment under subsection (2), the amount calculated for the preceding year under section 422, that is to say, the amount of the housing subsidy payable to the [F6 corporation] for that year or, if none was payable, nil or a negative amount, as the case may be.

(2) If the Secretary of State is of opinion that particular circumstances require it, he may adjust the base amount for amy year by increasing or decreasing it, either generally or in relation to . . . F7 any particular authority.

Textual Amendments

F6 Words substituted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 para. 79(1)

F7 Words repealed by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1)(4), Sch. 11 para. 79(2), Sch. 12 Pt. II

Modifications etc. (not altering text)

C3 Ss. 421–427A: by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 79(3) it is provided that sections 421 to 427A of the Housing Act 1985 (which are superseded, in their application to local housing authorities, by that section 79 and sections 80 and 86 of that 1989 Act) shall cease to apply in relation to such authorities

424 The housing costs differential. E+W

(1) A [F8 new town corporation’s] housing costs differential for a year of account is the amount by which their reckonable expenditure for that year exceeds their reckonable expenditure for the preceding year (and accordingly is nil or, as the case may be, a negative amount if the reckonable expenditure for the year is the same as or less than that for the preceding year).

(2) A [F9 new town corporation’s] reckonable expenditure for a year is the aggregate of—

(a) so much of the expenditure incurred by the [F9 corporation] in that year and falling to be debited to [F9 the corporation’s housing account] as the Secretary of State may determine, and

(b) so much of any other expenditure incurred by the [F9 corporation] in that year, or treated as so incurred in accordance with a determination made by the Secretary of State, as the Secretary of State may determine to be taken into account for the purposes of housing subsidy.

[F10 (3) A determination may be made for all new town corporations or different determinations may be made for individual corporations; and a determination may be varied or revoked in relation to all or any of the corporations for which it was made.]

(4) Before making a determination for all [F11 new town corporations] the Secretary of State shall consult organisations appearing to him to be representative of [F11 new town corporations].

Textual Amendments

F8 Words substituted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 para. 80(1)

F9 Words substituted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 para. 80(2)

F10 S. 424(3) substituted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 para. 80(3)

F11 Words substituted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 para. 80(4)

Modifications etc. (not altering text)

C4 Ss. 421–427A: by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 79(3) it is provided that sections 421 to 427A of the Housing Act 1985 (which are superseded, in their application to local housing authorities, by that section 79 and sections 80 and 86 of that 1989 Act) shall cease to apply in relation to such authorities

425 The local contribution differential. E+W

(1) A [F12 new town corporation’s] local contribution differential for a year of account is the amount by which their reckonable income for that year exceeds their reckonable income for the preceding year (and accordingly is nil or, as the case may be, a negative amount if their reckonable income for the year is the same as or less than that for the preceding year).

(2) [F13 A corporation’s] reckonable income for a year is the amount which, in accordance with any determination made by the Secretary of State, the [F14 corporation] are assumed to receive for that year as income which they are required to carry to their [F13 housing account] including—

(a) any contribution made by the [F14 corporation] out of their [F13 general revenue account], and

(b) any rent rebate subsidy payable under [F15 section 135of the Social Security Administration Act 1992],

but excluding any other subsidy, grant or contribution.

(3) A determination shall state the assumptions on which it is based and the method of calculation used in it, and in making it the Secretary of State shall have regard, amongst other things, to past and expected movements in incomes, costs and prices.

[F16 (4) A determination may be made for all new town corporations or different determinations may be made for different corporations or groups of corporations.]

(5) Before making a determination for all [F17 new town corporations] the Secretary of State shall consult organisations appearing to him to be representative of [F17 new town corporations].

(6) A determination shall be made known to the [F18 corporations] for which it is made in the year preceding the year of account for which it is to have effect.

Textual Amendments

F12 Words substituted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 para. 81(1)

F13 Words substituted by Local Government and Housing Act 1989 (c.42, SIF 61), s. 194(1), Sch. 11 para. 81(2)

F14 Word substituted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 para. 81(2)

F15 Words in s. 425(2)(b) substituted (1.7.1992) by virtue of Social Security (Consequential Provisions) Act 1992 (c. 6), ss. 4, 7(2), Sch. 2 para.70

F16 S. 425(4) substituted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 para. 81(3)

F17 Words substituted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 para. 81(4)

F18 Word substituted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 para. 81(5)

Modifications etc. (not altering text)

C5 Ss. 421–427A: by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 79(3) it is provided that sections 421 to 427A of the Housing Act 1985 (which are superseded, in their application to local housing authorities, by that section 79 and sections 80 and 86 of that 1989 Act) shall cease to apply in relation to such authorities

[F19 426 Calculation of housing subsidy for Board. E+W

(1) Sections 422 to 425 (calculation of housing subsidy) apply in relation to the Development Board for Rural Wales as they apply in relation to new town corporations, but subject to subsections (2) and (3).

(2) Section 425(2)(a) (reckonable income to include contributions from corporation’s general revenue account) has effect with the substitution for the reference to any contribution made by the corporation out of their general revenue account of a reference to any contribution made by the Board out of revenue.

(3) The consultation required by section 424(4) or 425(5) (consultation before making general determinations) shall be with the Board.]

Textual Amendments

F19 S. 426 substituted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 para. 82

Modifications etc. (not altering text)

C6 Ss. 421–427A: by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 79(3) it is provided that sections 421 to 427A of the Housing Act 1985 (which are superseded, in their application to local housing authorities, by that section 79 and sections 80 and 86 of that 1989 Act) shall cease to apply in relation to such authorities

427 Recoupment of subsidy in certain cases. E+W

(1) Where housing subsidy has been paid to a [F20 new town corporation or the Development Board for Rural Wales] and it appears to the Secretary of State that—

(a) the purpose for which it was paid has not been fulfilled or not completely or adequately or not without unreasonable delay, and

(b) that the case falls within rules published by him,

he may recover from [F20 that body] the whole or such part of the payment as he may determine in accordance with the rules, with interest from such time and at such rates as he may so determine.

(2) A sum recoverable under this section may, without prejudice to other methods of recovery, be recovered by withholding or reducing housing subsidy.

(3) The withholding or reduction under this section of housing subsidy for a year does not affect the base amount for the following year.

Textual Amendments

F20 Words substituted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 para. 83

Modifications etc. (not altering text)

C7 Ss. 421–427A: by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 79(3) it is provided that sections 421 to 427A of the Housing Act 1985 (which are superseded, in their application to local housing authorities, by that section 79 and sections 80 and 86 of that 1989 Act) shall cease to apply in relation to such authorities

[F21 427A Entitlement to subsidy in case of land subject to management agreement. E+W

The fact that a [F22 new town corporation or the Development Board for Rural Wales] has entered into a management agreement, and any letting of land in connection with such an agreement—

(a) shall be disregarded in determining [F22 that body’s] reckonable income or expenditure for the purposes of housing subsidy, and

(b) shall not be regarded as a ground for recovering, withholding or reducing any sum under section 427 (recoupment of housing subsidy).]

Textual Amendments

F21 S. 427A inserted by Housing and Planning Act 1986 (c. 63, SIF 61), s. 24(2), Sch. 5 Pt. II para. 32

F22 Words substituted by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(1), Sch. 11 para. 84

Modifications etc. (not altering text)

C8 Ss. 421–427A: by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 79(3) it is provided that sections 421 to 427A of the Housing Act 1985 (which are superseded, in their application to local housing authorities, by that section 79 and sections 80 and 86 of that 1989 Act) shall cease to apply in relation to such authorities

Borrowing powers E+W

428 Continuance of certain powers to borrow for housing purposes. E+W

(1) A local authority may borrow for any of the purposes for which borrowing was, before the commencement of this Act, authorised by—

• section 136(1) of the M1 Housing Act 1957,

• section 54(1) of the M2 Housing (Financial Provisions) Act 1958, or

• paragraph 19 of Schedule 8 to the M3 Housing Act 1969.

(2) The maximum period which may be sanctioned as the period for which money may be borrowed for any of those purposes by the Common Council of the City of London is 80 years, notwithstanding the provisions of any Act of Parliament.

Marginal Citations

M1 1957 c. 56.

M2 1958 c. 42.

M3 1969 c. 33.

Miscellaneous E+W

429 The improvement for sale scheme. E+W

(1) The Secretary of State may, with the consent of the Treasury, make schemes for making contributions to the net cost (as determined under the schemes) to local housing authorities of disposing of dwellings where the authority—

(a) disposes of a house as one dwelling,

(b) divides a house into two or more separate dwellings and disposes of them, or

(c) combines two houses to form one dwelling and disposes of it,

after carrying out works of repair, improvement or conversion.

(2) The cost towards which contributions may be made under such a scheme shall not exceed, for any one dwelling—

(a) in respect of a dwelling in Greater London, £10,000.

(b) elsewhere, £7,500,

or such other amount as may be prescribed by order of the Secretary of State made with the consent of the Treasury.

(3) An order under this section—

(a) may make different provision in respect of different cases or descriptions of case, including different provision for different areas, and

(b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(4) In this section “house” includes a flat.

[F23 429A Housing management: financial assistance etc. E+W

(1) The Secretary of State may, with the consent of the Treasury, give financial assistance—

(a) to persons managing public sector or former public sector housing, and

(b) to persons seeking to facilitate or encourage improvements in, or providing services in connection with, the management of such housing;

and may, with the like consent, make payments otherwise than by way of financial assistance in pursuance of arrangements made with any such person.

(2) For this purpose—

(a) “public sector housing” means housing accommodation in which an authority or body within section 80 (the landlord condition for secure tenancies) [F24 or subsection (2A)] has an interest by virtue of which it receives a rack-rent, or would do so if the premises were let at a rack-rent; and

(b) “former public sector housing” means housing accommodation in which such an authority, or a predecessor of such an authority or an authority abolished by the Local Government Act 1985 formerly had such an interest.

[F24 (2A) Subsection (2)(a) applies to the following bodies—

(a) the Housing Corporation;

(b) Housing for Wales;

(c) a housing trust which is a charity;

(d) a registered housing association other than a co-operative housing association; and

(e) an unregistered housing association which is a co-operative housing association.]

(3) The Secretary of State may, with the consent of the Treasury, give financial assistance—

(a) to persons providing educational or training courses in housing management,

(b) to persons providing services for those providing such courses, and

(c) to persons providing financial or other assistance for those attending such courses;

and may, with the like consent, make payments otherwise than by way of financial assistance in pursuance of arrangements made with any such person.

(4) Financial assistance given by the Secretary of State under subsection (1) or (3) may be given in any form, and may in particular be given by way of grants, loans or guarantees or by incurring expenditure for the benefit of the person assisted; but the Secretary of State shall not in giving such assistance purchase loan or share capital in a company.

(5) Financial assistance may be given and other payments made on such terms as the Secretary of State, with the consent of the Treasury, considers appropriate; and the terms may, in particular, include provision as to the circumstances in which the assistance or other payment must be repaid or otherwise made good to the Secretary of State and the manner in which that is to be done.

(6) A person receiving financial assistance under this section shall comply with the terms on which it is given and compliance may be enforced by the Secretary of State.]

Textual Amendments

F23 S. 429A inserted by Housing and Planning Act 1986 (c. 63, SIF 61), s. 16

F24 S. 429A(2A) inserted by Housing Act 1988 (c. 50, SIF 61), s. 140(1), Sch. 17 Pt. I para. 54

430

— . . . F25

Textual Amendments

F25 S. 430 repealed by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(2), Sch. 12 Pt. I

431 Control of expenditure by housing authorities on works of conversion or improvement. E+W

(1) A local authority or new town corporation may not incur expenses in—

(a) providing dwellings by the conversion of houses or other buildings, or

(b) carrying out works required for the improvement of dwellings, with or without associated works of repair,

except in accordance with proposals submitted by the authority or corporation to the Secretary of State and for the time being approved by him.

(2) The Secretary of State’s approval may be given subject to such conditions, and may be varied in such circumstances, as appear to him to be appropriate; but before varying the terms of an approval he shall consult the authority or corporation concerned.

(3) In this section “dwelling” has the same meaning as in Part XV (grants for works of improvement, repair and conversion).

432 Superseded contributions, subsidies, grants, and other financial matters. E+W

The provisions of Schedule 15 have effect with respect to superseded contributions, subsidies, grants and other financial matters, as follows—

• Part I—Loans under the Housing (Rural Workers) Acts 1926 to 1942.

• Part II—Exchequer contributions for agricultural housing.

• Part III—Contributions for improvement of dwellings by housing authorities.

• Part IV—Town development subsidy.

Supplementary E+W

433 Minor definitions. E+W

In this Part—

“year” means a period of twelve months beginning on a 1st April.

434 Index of defined expressions: Part XIII. E+W

The following Table shows provisions defining or otherwise explaining expressions used in this Part (other than provisions defining or explaining an expression used in the same section or paragraph):—

base amount	section 423
[F26 charity]	[F26 section 622]
[F26 co-operative housing association]	[F26 section 5(2)]
development corporation	section 4(c)
. . . F27	. . . F27
. . . F27	. . . F27
. . . F27	. . . F27
[F26 housing association]	[F26 section 5(1)]
housing authority	section 4(a)
housing costs differential	section 424
. . . F27	. . . F27
. . . F27	. . . F27
housing subsidy	section 421(1)
[F26 housing trust]	[F26 section 6]
. . . F27	. . . F27
local authority	section 4(e)
local contribution differential	section 425
local housing authority	section 1, 2(2)
[F28 management agreement]	[F28 sections 27(2) and 27B(4)]
new town corporation	section 4(b)
receiving authority (in Part IV of Schedule 15)	paragraph 6 of that Part
year	section 433
year of account (in relation to housing subsidy)	section 422

Textual Amendments

F26 Words inserted by Housing Act 1988 (c. 50, SIF 61), s. 140(1), Sch. 17 Pt. I para. 55

F27 Entries repealed by Local Government and Housing Act 1989 (c. 42, SIF 61), s. 194(4), Sch. 12 Pt. II Note 2

F28 Entry inserted by Housing and Planning Act 1986 (c. 63, SIF 61), s. 24(2), Sch. 5 Pt. II para. 33