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(1)Subsection (2) applies—
(a)where the carrying out of a scheme for the provision by the Secretary of State in pursuance of this Act of hospital accommodation or other facilities will involve the displacement from any premises of persons living in the premises, and
(b)in so far as it appears to the Secretary of State that there is no other residential accommodation suitable for the reasonable requirements of those persons available on reasonable terms.
(2)The Secretary of State may make arrangements with one or more of the bodies mentioned in subsection (3) for securing the provision, in advance of the displacement, of residential accommodation which becomes necessary as the carrying out of the scheme proceeds.
(3)The bodies are—
(a)a local housing authority (within the meaning of the Housing Act 1985 (c. 68)),
(b)a housing association or housing trust (within the meaning of the Housing Associations Act 1985 (c. 69)),
(c)a development corporation established under the New Towns Act 1981 (c. 64),
(d)the Commission for the New Towns.
(4)Arrangements under subsection (2) may include provision for the making of payments by the Secretary of State to the body with whom the arrangements are made.
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