SCHEDULE 5 Housing Association Finance: Superseded Subsidies, Contributions and Grants
Part VI New Building Subsidy and Improvement Subsidy
(s. 75 of the Housing Finance Act 1972; ss. 55 and 57 of the Housing (Financial Provisions) (Scotland) Act 1972)
2
(1)
The Secretary of State may make reduced payments of subsidy, or suspend or discontinue such payments, if—
(a)
he made his approval of the scheme subject to conditions and is satisfied that any of the conditions has not been complied with, or
(b)
he is satisfied that a dwelling comprised in the scheme has been converted, demolished or destroyed, is not fit to be used or is not being used for the purpose for which it was intended, has been sold or leased for a term exceeding seven years or has ceased for any reason whatsoever to be vested in the association or trustees for the association.
(2)
If any of the dwellings comprised in the scheme become vested in, or are leased for a term exceeding seven years to—
(a)
a housing association, or trustees for a housing association other than the association which received approval for the scheme, or
(b)
the Housing Corporation,
the Secretary of State may, for any year beginning with that in which they come to be so vested or are so leased, pay them the whole or any part of the subsidy which he would otherwise have paid to the association which received approval for the scheme.
(3)
For the purposes of this paragraph a dwelling shall be treated as leased for a term exceeding seven years if it is leased for a lesser term by a lease which confers on the lessee an option for renewal for a term which, together with the original term, exceeds seven years.