Arrangements between a local authority and a housing association under section 120 of the M1Housing Act 1957 (arrangements for provision of housing) which were made before 10th August 1972 and are in force immediately before the commencement of this Act remain in force under this paragraph.

Arrangements between a local authority and a housing association under section 121 of the Housing Act 1957 (arrangements for improvement or conversion of housing) which were made before 1st April 1975 and are in force immediately before the commencement of this Act remain in force under this paragraph.

In this Part "subsidy agreement" means an agreement made between a local authority and a housing association which provides for payments to be made under or by reference to any of the following enactments—

• section 2 of the M2Housing (Financial Provisions) Art 1924,

• section 29(1) of the M3Housing Act 1930,

• section 27(3) of the M4Housing Act 1935,

• section 26 of the M5Housing (Scotland) Act 1935,

• section 94(3) of the M6Housing Act 1936,

• section 87(1) of the M7Housing (Scotland) Act 1950,

• section 1(2)(b) of the M8Housing Subsidies Act 1956,

• section 2, 3 or 4 of the M9Housing and Town Development (Scotland) Act 1957,

• section 1(2)(b) of the M10Housing (Financial Provisions) Act 1958,

• section 1(2) of the M11Housing Act 1961,

• section 2, 4, 5, 6 or 7 of the M12Housing (Scotland) Act 1962,

• section 1(5) or 9(4) of the M13Housing Subsidies Act 1967,

• section 2, 4, 6, 7, 9 or 10 of the M14Housing (Financial Provisions) (Scotland) Act 1968,

(being enactments with respect to which it was provided by the M15Housing Finance Act 1972 or the M16Housing (Financial Provisions) (Scotland) Act 1972 that no further payments were to be made for 1972-73 or any subsequent year).

Where a subsidy agreement provides for the payment of greater amounts than those which the authority would have been obliged to pay under the relevant enactment, the authority shall continue to pay to the housing association sums equal to the difference between the amounts for the payment of which the agreement provides and the amounts which they would have been obliged to pay by that enactment