“15A Payments etc. in community-based housing associations in Scotland.

(1)

In relation to a community-based housing association in Scotland the following are also permitted, notwithstanding section 15(1)—

(a)

payments made by the association in respect of the purchase of a dwelling, or part of a dwelling, owned and occupied by a person described in subsection (2) who is not an employee of the association; but only if—

(i)

such payments constitute expenditure in connection with housing projects undertaken for the purpose of improving or repairing dwellings; and

(ii)

the purchase price does not exceed such value as may be placed on the dwelling, or as the case may be part, by the district valuer;

(b)

the granting of the tenancy of a dwelling, or part of a dwelling, to such a person; but only if the person—

(i)

lives in the dwelling or in another dwelling owned by the association; or

(ii)

has at any time within the period of twelve months immediately preceding the granting of the tenancy lived in the dwelling (or such other dwelling) whether or not it belonged to the housing association when he lived there.

(2)

The persons mentioned in subsection (1) are—

(a)

a committee member or voluntary officer of the association; or

(b)

a person who at any time in the twelve months preceding the payment (or as the case may be the granting of the tenancy) has been such a member or officer; or

(c)

a close relative of a person described in paragraph (a) or (b).

(3)

For the purposes of subsection (1), a housing association is “community-based” if —

(a)

prior to the specified date, it was designated as such by the Housing Corporation; or

(b)

on or after that date, it is designated as such by Scottish Homes;

and, in this subsection, “specified date” has the same meaning as in section 3 of the Housing (Scotland) Act 1988.

(4)

Scottish Homes—

(a)

shall make a designation under subsection (3) only if it considers that the activities of the housing association relate wholly or mainly to the improvement of dwellings, or the management of improved dwellings, within a particular community (whether or not identified by reference to a geographical area entirely within any one administrative area); and

(b)

may revoke such a designation (including a designation made by the Housing Corporation under subsection (3) above as originally enacted) if it considers, after giving the association an opportunity to make representations to it as regards such revocation, that the association’s activities have ceased so to relate.”