1(1)The scheme shall give particulars of all works which, in the opinion of the local housing authority, they would, if a control order were not in force, have required to be carried out under any provision of this Part, or under any other enactment relating to housing or public health, and which, in their opinion, constitute works of capital expenditure.
(2)The scheme shall include an estimate of the costs of carrying out the works of which particulars are given in the scheme.
(3)The scheme shall specify what, in the opinion of the authority, is the highest number of individuals or households who should live in the house from time to time, having regard to—
(a)the considerations set out in section 352(1) (matters relevant to fitness of house for number of occupants), and
(b)the existing condition of the house and its future condition as the works progress which the authority carry out in the house.
(4)The scheme shall include an estimate of the balance which will from time to time accrue to the authority after deducting from the rent or other payments received by the authority from persons occupying the house—
(a)the compensation payable by the authority to the dispossessed proprietor under section 389 and Part II of this Schedule, and
(b)all expenditure, other than that of which particulars are given under sub-paragraph (2), incurred by the authority in respect of the house while the control order is in force.
2(1)References in this Schedule to the surpluses on revenue account as settled by the scheme are to the amount included in the scheme by way of an estimate under paragraph 1(4), subject to any variation of the scheme made by the local housing authority or on an appeal or application to the court.
(2)In paragraph 1(4), and elsewhere in this Schedule, “rent or other payments”, in relation to payments received by the local housing authority from persons occupying a house subject to a control order, means rent or other payments so received—
(a)under leases or licences, or
(b)in respect of furniture to which section 383(1) applies (furniture comprised in furnished letting of which right to possession vests in authority).
(3)In paragraph 1(4), and elsewhere in this Schedule, references to expenditure incurred by the local housing authority in respect of a house subject to a control order include, in a case where the authority—
(a)require persons living in the house to vacate their accommodation for a period while the authority are carrying out works in the house, and
(b)provide housing accommodation for those persons for any part of that period or defray all or any part of the expenses incurred by or on behalf of those persons removing from and returning to the house,
the net cost to the authority in so providing housing accommodation and the sums so defrayed by the authority.
3(1)A person having an estate or interest in a house to which a control order relates may, within six weeks from the date on which a management scheme relating to the house was served in accordance with section 386, or such longer period as the local housing authority may in writing allow, appeal to the county court against the scheme.
(2)The appeal may be on any of the following grounds—
(a)that, having regard to the condition of the house and to the other circumstances, any of the works of which particulars are given in the scheme (whether already carried out or not) are unreasonable in character or extent, or are unnecessary;
(b)that any of the works do not involve expenditure which ought to be regarded as capital expenditure;
(c)that the number of individuals or households living in the house, as specified by the local housing authority in the scheme, is unreasonably low;
(d)that the estimate of the surpluses on revenue account in the scheme is unduly low on account of assumptions made by the authority as to matters within their control (for example, as to the rents charged by them).
(3)On an appeal the court may, as it thinks fit, confirm or vary the scheme.
(4)Proceedings on an appeal against a scheme shall, so far as practicable, be combined with proceedings on any appeal under section 384 against the control order itself; and if on such an appeal the court decides to revoke the control order, the court shall not proceed with any appeal against the scheme.
4(1)An account shall be kept by the local housing authority for the period during which the control order is in force showing—
(a)the surpluses on revenue account as settled by the scheme, and
(b)the expenditure incurred by the authority in carrying out works of which particulars were given in the scheme;
and balances shall be struck in the account at half-yearly intervals so as to ascertain the amount of that expenditure which cannot be set off against those surpluses.
(2)So far as, at the end of a half-yearly period, the expenditure is not so set off, it shall carry interest, at such reasonable rate as the authority may determine, until it is so set off or until the charge arising under paragraph 16 of this Schedule (recovery of expenditure when control order ceases to have effect) is satisfied.
(3)So far as there is a sum out of the surpluses on revenue account not required to meet expenditure incurred by the authority, it shall go to meet interest under sub-paragraph (2).
5The local housing authority may at any time vary a scheme in such a way as to increase the amount of the surpluses on revenue account as settled by the scheme for all or any periods, including past periods.
6(1)The local housing authority, or a person having an estate or interest in the house, may at any time apply to the county court for a review of the surpluses on revenue account as settled by the scheme.
(2)On such an application the court shall take into consideration—
(a)whether in the period since the control order came into force the actual balances mentioned in paragraph 1(4) have exceeded, or been less than, the surpluses on revenue account as settled by the scheme, and
(b)whether there has been any change in circumstances such that the number of persons or households who should live in the house, or the amount of the rents and other payments receivable by the local housing authority from persons occupying the house, ought to be greater or less than was originally estimated.
(3)The court may on such an application, as it thinks fit, confirm or vary the scheme (but not so as to affect the provisions of the scheme relating to the works), and may vary the surpluses on revenue account as settled by the scheme for all or any period, including past periods.