This Part has effect with respect to the Housing Corporation, and Housing for Wales, each of which is referred to in this Part as “the Corporation”.

The provisions of Schedule 6 have effect with respect to the constitution and proceedings of, and other matters relating to, F1the Housing Corporation.

The functions conferred by this Part in relation to registered social landlords are exercisable by the Corporation in whose register they are registered.

This Part has effect with respect to the Housing Corporation and Housing for Wales, each of, which is referred to in this Part as “the Corporation”.

The provisions of Schedule 6 have effect with respect to the constitution and proceedings of, and other matters relating to, the Housing Corporation.

In this Part “registered housing association” in relation to the Corporation, means a housing association registered in the register maintained by the Corporation.

The Corporation shall exercise its general functions subject to and in accordance with the provisions of this Act F6and Part I of the Housing Act 1996.

Subsection (1) is without prejudice to specific functions conferred on the Corporation by or under this Act F7or Part I of the Housing Act 1996.

The Corporation may do such things and enter into such transactions as are incidental to or conducive to the exercise of any of its functions, general or specific, under this Act F7or Part I of the Housing Act 1996.

Section 71 of the Race Relations Act 1976 (local authorities: general statutory duty) shall apply to the Corporation as it applies to a local authority.

The Corporation shall exercise its general functions subject to and in accordance with the provisions of this Act.

Subsection (1) is without prejudice to specific functions conferred on the Corporation by or under this Act.

The Corporation may do such things and enter into such transactions as are incidental to or conducive to the exercise of any of its functions, general or specific, under this Act.

Section 71 of the Race Relations Act 1976 (local authorities: general statutory duty) shall apply to the Corporation as it applies to a local authority.

The Secretary of State may give directions to the Corporation as to the exercise of its functions.

A direction as to the terms of loans made under section 79 (lending powers of Corporation) requires the consent of the Treasury.

Directions may be of a general or particular character and may be varied or revoked by subsequent directions.

Non-compliance with a direction does not invalidate a transaction between a person and the Corporation unless the person had actual notice of the direction.

The Corporation may, and if so directed by the Secretary of State (under section 76) shall, enter into arrangements of a description approved by the Secretary of State for the purpose of realising the value of the whole or part of its loans portfolio.

In this section the Corporation’s “loans portfolio” means the Corporation’s rights and obligations in relation to any loans or related securities.

Nothing in the terms of any loan or related transaction entered into by the Corporation shall be construed as impliedly prohibiting or restricting the Corporation from dealing with its loans portfolio in accordance with arrangements under this section.

The Corporation may provide an advisory service for the purpose of giving advice on legal, architectural and other technical matters to F10registered social landlords or unregistered housing associations and to persons who are forming a housing association or are interested in the possibility of doing so.

The Corporation may make charges for the service.

The powers conferred on the Corporation by subsections (1) and (2) may be exercised by the Housing Corporation and Housing for Wales acting jointly

The Corporation may provide an advisory service for the purpose of giving advice on legal, architectural and other technical matters to housing associations (whether registered or unregistered) and to persons who are forming a housing association or are interested in the possibility of doing so.

The Corporation may make charges for the service.

The powers conferred on the Corporation by subsections (1) and (2) may be exercised by the Housing Corporation and Housing for Wales acting jointly

The Corporation shall, as soon as possible after the end of each financial year, make a report to the Secretary of State on the exercise of its functions during the year.

It shall include in the report a copy of its audited accounts and shall set out in the report any directions given to it by the Secretary of State during the year.

The Secretary of State shall lay a copy of the report before each House of Parliament.

The Corporation may lend to—

• a F12registered social landlord,

• an unregistered self-build society,

• a subsidiary of the Corporation, or

• any other body in which the Corporation holds an interest,

for the purpose of enabling the body to meet the whole or part of expenditure incurred or to be incurred by it in carrying out its objects.

The Corporation may lend to an individual for the purpose of assisting him to acquire from the Corporation, or from any such body as is mentioned in subsection (1), a legal estate or interest in a dwelling which he intends to occupy.

A loan under this section may be by way of temporary loan or otherwise, and the terms of a loan made under subsection (1) may include (though the terms of a loan made under subsection (2) may not) terms for preventing repayment of the loan or part of it before a specified date without the consent of the Corporation.

The terms of a loan under this section shall, subject to subsection (3) and to any direction under section 76 (general power of Secretary of State to give directions), be such as the Corporation may determine, either generally or in a particular case.

The Corporation may lend to—

• a registered housing association,

• an unregistered self-build society,

• a subsidiary of the Corporation, or

• any other body in which the Corporation holds an interest,

for the purpose of enabling the body to meet the whole or part of expenditure incurred or to be incurred by it in carrying out its objects.

The Corporation may lend to an individual for the purpose of assisting him to acquire from the Corporation, or from any such body as is mentioned in subsection (1), a legal estate or interest in a dwelling which he intends to occupy.

A loan under this section may be by way of temporary loan or otherwise, and the terms of a loan made under subsection (1) may include (though the terms of a loan made under subsection (2) may not) terms for preventing repayment of the loan or part of it before a specified date without the consent of the Corporation.

The terms of a loan under this section shall, subject to subsection (3) and to any direction under section 76 (general power of Secretary of State to give directions), be such as the Corporation may determine, either generally or in a particular case.

The society shall comply with directions so given so long as the Corporation continues to have such an interest in the land.

Directions so given may be varied or revoked by subsequent directions given with the like consent.

The Secretary of State shall not consent to the Corporation’s giving directions under this section requiring a society to transfer its interest in land to the Corporation, or to any other person, unless he is satisfied that arrangements have been made which will secure that the members of the society receive fair treatment in connection with the transfer.

The Corporation may, with the consent of the Secretary of State given with the approval of the Treasury, guarantee the repayment of the principal of, and the payment of interest on, sums borrowed by—

• F13registered social landlords,

• unregistered self-build societies, or

• other bodies in which the Corporation holds an interest.

Where the Corporation gives such a guarantee, it may impose such terms and conditions as it thinks fit.

An order under subsection (3) F16or subsection (3A) shall be made by statutory instrument and no such order shall be made unless a draft of it has been laid before and approved by the House of Commons.

The Corporation may, with the consent of the Secretary of State given with the approval of the Treasury, guarantee the repayment of the principal of, and the payment of interest on, sums borrowed by—

• registered housing associations,

• unregistered self-build societies, or

• other bodies in which the Corporation holds an interest.

Where the Corporation gives such a guarantee, it may impose such terms and conditions as it thinks fit.

An order under subsection (3) or subsection (3A) shall be made by statutory instrument and no such order shall be made unless a draft of it has been laid before and approved by the House of Commons.

The agreement may also, if the mortgagor is made party to it, enable or require the Corporation in specified circumstances to take a transfer of the mortgage and assume rights and liabilities under it, the building society or recognised body being then discharged in respect of them.

The Secretary of State may approve particular agreements or give notice that particular forms of agreement have his approval, and in either case may make his approval subject to conditions.

Section 16(3) and (5) of the M3Restrictive Trade Practices Act 1976 (recommendations by services supply associations to members) does not apply to recommendations made to building societies or recognised bodies about the making of agreements under this section, provided that the recommendations are made with the approval of the Secretary of State, which may be withdrawn at any time on one month’s notice.

The expressions “recognised body” and “relevant advance” in section 84 (agreements to indemnify certain lenders) shall be construed in accordance with the following provisions.

A “recognised body” means a body specified, or of a class or description specified, in an order made by statutory instrument by the Secretary of State F18. . ..

Before making such an order varying or revoking an order previously made, the Secretary of State shall give an opportunity for representations to be made on behalf of a recognised body which, if the order were made, would cease to be such a body.

A “relevant advance” means an advance made to a person whose interest in the dwelling is or was acquired by virtue of a conveyance of the freehold or an assignment of a long lease, or a grant of a long lease by—

• a local authority,

• a new town corporation,

• an urban development corporation,

• the Development Board for Rural Wales,

• the Corporation, or

• a F19registered social landlord.

In subsection (4) “long lease” has the same meaning as in Part V of the M4Housing Act 1985 (the right to buy).

The agreement may also, where the borrower is made party to it, enable or require F20Scottish Homes in specified circumstances to take an assignation of the rights and liabilities of the building society F23or recognised body under the heritable security.

Approval of the Secretary of State under subsection (1) may be given generally in relation to agreements which satisfy specified requirements, or in relation to individual agreements, and with or without conditions, as he thinks fit, and such approval may be withdrawn at any time on one month’s notice.

Before issuing any general approval under subsection (1) the Secretary of State shall consult with such bodies as appear to him to be representative of islands and district councils, and of building societies, and also with F20Scottish Homes and with the F24Building Societies Commission.

Section 16(3) and (5) of the M5Restrictive Trade Practices Act 1976 (recommendations by services supply associations to members) does not apply to recommendations made to building societies F25or recognised bodies about the making of agreements under this section provided that the recommendations are made with the approval of the Secretary of State.

In this section, “recognised body” means a body designated, or of a class or description designated, in an order made under this subsection by statutory instrument by the Secretary of State with the consent of the Treasury.

Before making an order under subsection (6) above varying or revoking an order previously so made, the Secretary of State shall give an opportunity for representations to be made on behalf of a recognised body which, if the order were made, would cease to be such a body.

The Corporation may give financial assistance to any person to facilitate the proper performance of the functions of registered social landlords or co-operative housing associations.

Assistance under this section may be in the form of grants, loans, guarantees or incurring expenditure for the benefit of the person assisted or in such other way as the Corporation considers appropriate, except that the Corporation may not, in giving any form of financial assistance, purchase loan or share capital in a company.

In giving assistance under this section, the Corporation may provide that the assistance is conditional upon compliance by the person to whom the assistance is given with such conditions as it may specify.

Where assistance under this section is given in the form of a grant, subsections (1), (2) and (7) to (9) of section 52 of the Housing Act 1988 (recovery, etc. of grants) shall apply as they apply in relation to a grant to which that section applies, but with the substitution, for any reference in those subsections to the F29registered housing association to which the grant has been given, of a reference to the person to whom assistance is given under this section.

Section 53 of the Housing Act 1988 (determinations under Part II) shall apply in relation to a determination under this section as it applies to a determination under sections 50 to 52 of that Act.

Assistance under this section may be in the form of grants, loans, guarantees or incurring expenditure for the benefit of the person assisted or in such other way as the Corporation considers appropriate, except that the Corporation may not, in giving any form of financial assistance, purchase loan or share capital in a company.

In giving assistance under this section, the Corporation may provide that the assistance is conditional upon compliance by the person to whom the assistance is given with such conditions as it may specify.

Where assistance under this section is given in the form of a grant, subsections (1), (2) and (7) to (9) of section 52 of the Housing Act 1988 (recovery, etc. of grants) shall apply as they apply in relation to a grant to which that section applies, but with the substitution, for any reference in those subsections to the registered housing association to which the grant has been given, of a reference to the person to whom assistance is given under this section.

Section 53 of the Housing Act 1988 (determinations under Part II) shall apply in relation to a determination under this section as it applies to a determination under sections 50 to 52 of that Act.

Land may be so acquired by the Corporation notwithstanding that it is not immediately required for any such purpose.

In Scotland the Corporation may (without prejudice to their own power to acquire land compulsorily) request the Scottish Special Housing Association to acquire land compulsorily on its behalf (as provided in section F3123 of the Housing (Scotland) Act 1987) for any purpose for which the Corporation may purchase land compulsorily.

Land may be so acquired by the Corporation notwithstanding that it is not immediately required for any such purpose.

In Scotland the Corporation may (without prejudice to their own power to acquire land compulsorily) request the Scottish Special Housing Association to acquire land compulsorily on its behalf (as provided in section 23 of the Housing (Scotland) Act 1987) for any purpose for which the Corporation may purchase land compulsorily.

The Corporation may provide or improve dwellings or hostels on land belonging to it.

The Corporation may repair, maintain and insure buildings or works on land belonging to it, may generally deal in the proper course of management with such land and buildings or works on it, and may charge for the tenancy or occupation of such land, buildings or works.

In the exercise of its powers under subsection (4) the Corporation may carry out any development ancillary to or in connection with the provision of dwellings or hostels, including development which makes provision for buildings or land to be used for commercial, recreational or other non-domestic purposes.

The Corporation may provide or improve dwellings or hostels on land belonging to it.

The Corporation may repair, maintain and insure buildings or works on land belonging to it, may generally deal in the proper course of management with such land and buildings or works on it, and may charge for the tenancy or occupation of such land, buildings or works.

In the exercise of its powers under subsection (4) the Corporation may carry out any development ancillary to or in connection with the provision of dwellings or hostels, including development which makes provision for buildings or land to be used for commercial, recreational or other non-domestic purposes.

The Corporation may dispose of land in respect of which it has not exercised its powers under section 89(1) (provision or improvement of dwellings or hostels) and on which it has not carried out any such development as is mentioned in section 89(5) (ancillary development) to—

• a F33registered social landlord,

• an unregistered self-build society,

• a subsidiary of the Corporation, or

• any other body in which the Corporation holds an interest.

The Corporation may dispose of land on which dwellings or hostels have been provided or improved in exercise of its powers under section 89 to—

• a F33registered social landlord,

• a local authority,

• a new town corporation,

• F34Scottish Homes

• the Development Board for Rural Wales, or

• a subsidiary of the Corporation.

The Corporation may sell or lease individual dwellings to persons for their own occupation; but where the dwelling concerned was acquired by compulsory purchase under section 88(1), it shall not be disposed of under this subsection without the written consent of the Secretary of State.

The Corporation may dispose of a building or land intended for use for commercial, recreational or other non-domestic purposes in respect of which development has been carried out by virtue of section 89; but no such building or land shall be disposed of for less than the best consideration it commands except with the written consent of the Secretary of State.

The Corporation may not dispose of land except in accordance with the provisions of this section.

The Corporation may dispose of land in respect of which it has not exercised its powers under section 89(1) (provision or improvement of dwellings or hostels) and on which it has not carried out any such development as is mentioned in section 89(5) (ancillary development) to—

• a registered housing association,

• an unregistered self-build society,

• a subsidiary of the Corporation, or

• any other body in which the Corporation holds an interest.

The Corporation may dispose of land on which dwellings or hostels have been provided or improved in exercise of its powers under section 89 to—

• a registered housing association,

• a local authority,

• a new town corporation,

• Scottish Homes

• the Development Board for Rural Wales, or

• a subsidiary of the Corporation.

The Corporation may sell or lease individual dwellings to persons for their own occupation; but where the dwelling concerned was acquired by compulsory purchase under section 88(1), it shall not be disposed of under this subsection without the written consent of the Secretary of State.

The Corporation may dispose of a building or land intended for use for commercial, recreational or other non-domestic purposes in respect of which development has been carried out by virtue of section 89; but no such building or land shall be disposed of for less than the best consideration it commands except with the written consent of the Secretary of State.

The Corporation may not dispose of land except in accordance with the provisions of this section.

The Corporation may borrow from the Secretary of State, and the Secretary of State may lend to the Corporation, by way of temporary loan or otherwise, such sums in sterling as the Corporation may require.

The Corporation may, with the consent of the Secretary of State or in accordance with a general authorisation given by him, borrow temporarily by overdraft or otherwise such sums in sterling as the Corporation may require.

A loan made to the Corporation by the Secretary of State shall be repaid to him at such times and by such methods, and interest on the loan shall be paid to him at such rates and at such times, as he may from time to time determine.

The Treasury may issue to the Secretary of State out of the National Loans Fund such sums as are necessary to enable him to make loans to the Corporation in pursuance of this section; and sums received by the Secretary of State in pursuance of subsection (4) shall be paid into that Fund.

The Secretary of State may act under this section only with the approval of the Treasury.

The Treasury may guarantee, in such manner and on such conditions as they think fit, the repayment of the principal of and the payment of interest on and the discharge of any other financial obligation in connection with sums which the Corporation borrows from a person other than the Secretary of State.

Immediately after a guarantee is given the Treasury shall lay a statement of the guarantee before each House of Parliament.

Any sums required by the Treasury for fulfilling the guarantee shall be charged on and issued out of the Consolidated Fund.

Sums received by the Treasury in pursuance of subsection (4) shall be paid into the Consolidated Fund.

Where a sum is issued for fulfilling a guarantee given under this section, the Treasury shall, as soon as possible after the end of each financial year, beginning with that in which the sum is issued and ending with that in which all liability in respect of the principal of the sum and in respect of interest on it is finally discharged, lay before each House of Parliament a statement relating to the sum.

The Secretary of State may make such grants to the Corporation as appear to him to be required to enable the Corporation to meet the expenses incurred by it in the exercise of its functions.

A grant may be made subject to such conditions as the Secretary of State may determine.

The Secretary of State may act under this section only with the consent of the Treasury.

The Corporation may turn its resources to account so far as they are not required for the exercise of its functions.

If for an accounting year the revenues of the Corporation exceed the total sums properly chargeable to revenue account, the Corporation shall apply the excess in such manner as the Secretary of State may, after consultation with the Corporation, direct; and the Secretary of State may direct that the whole or part of the excess be paid to him.

The Secretary of State may, after consultation with the Corporation, direct the Corporation to pay to him the whole or part of any sums for the time being standing to the credit of reserves of the Corporation or being of a capital nature and not required for the exercise of the Corporation’s functions.

The Secretary of State may act under this section only with the approval of the Treasury.

The Corporation shall keep proper accounts and proper records in relation to the accounts and shall prepare in respect of each financial year annual accounts in such form as the Secretary of State may, with the approval of the Treasury, direct.

The accounts of the Corporation for each financial year shall be audited by a qualified accountant appointed for the purpose by the Secretary of State.

As soon as the annual accounts of the Corporation for a financial year have been audited, the Corporation shall send to the Secretary of State a copy of the accounts prepared by it for the year in accordance with this section, together with a copy of any report made on them by the auditor.

The Comptroller and Auditor General shall examine and certify the accounts prepared by the Secretary of State and lay before each House of Parliament copies of the accounts together with his report on them.

In this section “qualified accountant” means a person who is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

In the section “securities” means shares, stock, debenture stock and other securities of a like nature.