Housing Associations Act 1985

53 Recoupment of surplus rental income

(1) A registered housing association which has at anytime received a housing association grant shall show separately in its accounts for any period the surpluses arising from increased rental income during that period from housing projects in connection with which the grant was made.

(2) The surpluses shall be shown by each association in a fund to be known as the Grant Redemption Fund ; and the method of constituting the Fund and of snowing it in the association's accounts shall be as required by order of the Secretary of State under section 24 (general requirements as to accounts).

(3) The surpluses in respect of a period shall be calculated in such manner as the Secretary of State may determine for housing associations generally.

(4) In making that determination the Secretary of State may take account of—

(a) the rental income received or capable of being received by an association, and

(b) the management and maintenance costs and loan charges incurred or likely to be incurred by it;

and surpluses may be calculated differently for housing associations of different kinds or dwellings in different parts of Great Britain.

(5) The manner of calculating surpluses shall be determined after consultation with organisations appearing to the Secretary of State to be representative of registered housing associations, and shall be made known to the associations.

(6) The Secretary of State may from time to time give notice to a registered housing association requiring it to pay to him, with interest if demanded, or to apply or appropriate for purposes he specifies, any sums standing in its Grant Redemption Fund at the end of a period of account.

(7) Interest demanded by such a notice is payable—

(a) at the rate or rates previously determined by the Secretary of State, with the consent of the Treasury, for housing associations generally and published by him, or, if no such determination has been made, at the rate or rates specified with the consent of the Treasury in the notice ;

(b) either from the date of the notice or from such earlier date, not earlier than the end of the period of account, as may be specified in the notice.