SCHEDULES
SCHEDULE 5 Housing Association Finance: Superseded Subsidies, Contributions and Grants
C1Part I Residual Subsidies: England and Wales
Powers exercisable in case of disposal of dwellings by association
6
1
The Secretary of State may reduce, suspend or discontinue the payment of basic or special residual subsidy to an association if the association leases for a term exceeding seven years or otherwise disposes of any of the dwellings in respect of which the association is entitled to the payment.
2
If any dwellings of an association are leased for a term exceeding seven years to, or become vested in—
a
another housing association, or trustees for another housing association, or
b
the Housing Corporation F1. . .,
the Secretary of State may pay to them any basic or special residual subsidy which he would otherwise have paid to the former association for any financial year, beginning with that in which the dwellings are so leased or become so vested.
3
For the purposes of this paragraph a lease shall be treated as being for a term exceeding seven years where the original term is for a lesser period but the lease confers on the lessee an option for renewal for a term which, together with the original term, exceeds seven years.
Sch. 5 Pt. I modified by Housing Act 1988 (c. 50, SIF 61), 57(c)