PART 7Housing

CHAPTER 3Housing finance

C1C2171Limits on indebtedness

1

The Secretary of State may from time to time make a determination providing for the calculation in relation to each local housing authority in England that keeps a Housing Revenue Account of—

a

the amount of housing debt that, at such time and on such assumptions as the Secretary of State may determine, is to be treated as held by the authority, and

b

the maximum amount of such housing debt that the authority may hold.

2

A determination under this section may, in particular, provide for all or part of an amount to be calculated in accordance with a formula or formulae.

3

A determination under this section may provide for assumptions to be made in making a calculation whether or not those assumption are, or are likely to be, borne out by events.

4

A determination under this section may be varied or revoked by a subsequent determination.

5

A local housing authority may not hold debt in contravention of a determination under this section.

6

In this section “housing debt”, in relation to a local housing authority, means debt—

a

which is held by the authority in connection with the exercise of its functions relating to houses and other property within its Housing Revenue Account, and

b

interest and other charges in respect of which are required to be carried to the debit of that account.