Modifications etc. (not altering text)
C1Sch. 5 Pt. I modified by Housing Act 1988 (c. 50, SIF 61), 57(c)
4(1)This paragraph applies where a housing association, by furnishing to the Secretary of State such information as to its financial position as he may require, satisfies him as regards any financial year that its income from its dwellings will be, or was, inadequate having regard to its normal sources of income to meet such expenditure (including loan charges) as in his opinion it would be, or was, reasonable for the association to incur for that financial year in the exercise of its housing functions.E+W+S
(2)Where this paragraph applies, the Secretary of State may direct that the amount of basic residual subsidy or special residual subsidy payable to the association for the financial year in question shall be determined—
(a)by reference to a withdrawal factor or reduction factor calculated by reference to a smaller sum of money per dwelling than that mentioned in paragraph 1(4) or 2(4), or
(b)by reference to a withdrawal factor or reduction factor of zero.
(3)A direction under this paragraph may be varied or revoked by the Secretary of State by a further direction.
(4)In sub-paragraph (1) “housing functions” means—
(a)constructing or improving, or facilitating or encouraging the construction or improvement, of dwellings,
(b)managing dwellings,
(c)the provision of dwellings by conversion, and
(d)the acquisition of dwellings;
and includes functions which are supplementary or incidental to any of those functions.
(5)For the purposes of this paragraph “loan charges”, in relation to money borrowed by an association, means—
(a)the sums required for the payment of interest on the money and for its repayment, either by instalments or by means of a sinking fund, and
(b)the expenses of managing the debt,
and includes any such charges made by the association itself, whether in respect of borrowing from a capital fund kept by the association or in respect of borrowing between accounts kept by the association for different functions, or otherwise.