A contribution to a local authority under section nine of the Act of 1958 (which authorises the Minister to make contributions towards the annual loss likely to be incurred by a local authority in carrying out approved proposals for the conversion or improvement of houses) shall, instead of being such a contribution as is mentioned in that section, be a contribution towards the cost of the works of conversion or improvement required for carrying out the proposals; and the following provisions of this section shall have effect with respect to such a contribution.

The contribution shall be a sum payable annually for the twenty financial years beginning with the year in which the said works are completed, equal to three-eighths of the annual loan charges referable to an amount determined in accordance with subsections (3) and (4) of this section.

The said amount shall be determined by the Minister when approving the proposals, and shall, subject to subsection (4) of this section, be the amount appearing to him to be the cost likely to be incurred by the local authority in carrying out the works.

The amount so determined shall not exceed eight hundred pounds, or such other amount as may be specified by order of the Minister, for each dwelling provided or improved by the works, unless the Minister is satisfied in any particular case that in all the circumstances of the case there is good reason for determining a higher amount.

The Minister may by order reduce, as respects proposals approved after such date as may be specified in the order, the proportion of the said annual loan charges, but not below one-third.

A local authority submitting to the Minister such proposals as are mentioned in the said section nine shall furnish to him such estimates and such particulars as he may require for the purposes of this section.