The London Government Reorganisation (Mortgages) Order 1988

Article 7

SCHEDULE 1 PAYMENTS TO OR BY HOUSING AUTHORITIES IN LONDON

PART I INTERPRETATION

1.  In this Schedule —

“appropriate capital sum” means the aggregate of the amounts received by Richmond in the financial year in question which are attributable to —

(a) repayments of principal in respect of —

(i) any mortgage on terms which enable repayments to be deferred;

(ii) any housing advance made by the London Residuary Body; or

(iii) any further advance; and

(b) repayments of discount on early disposal, the right to the repayment of which is vested by article 2(4),

less the aggregate of —

(c) the expenditure incurred by Richmond in that year in making —

(i) any further advance; or

(ii) any payment under section 442(1) of the Housing Act pursuant to an agreement mentioned in article 2(6);

(d) the amount of Richmond’s expenses in that year which is charged to any capital account; and

(e) the amount which is written off by Richmond in that year as irrecoverable in relation to any interest vested by article 2(1) in respect of which Richmond has made a payment in accordance with article 5, or any right vested by article 2(5) in respect of which Richmond has made a payment in accordance with article 6(2);

“appropriate percentage” in relation to any housing authority means the percentage specifed in relation to that authority in Schedule 3 to this Order;

• “appropriate revenue sum” means the aggregate of the amounts received by Richmond in the financial year in question which are attributable to —

  (a)

  interest in respect of any mortgage on terms which enable repayments to be deferred, any housing advance made by the London Residuary Body or any further advance; and

  (b)

  any equity-sharing agreement,

  less the amount attributable to Richmond’s expenses in that year which is charged to any revenue account;

• “expenses” means administrative expenses properly attributable to any provision of this Order;

• “housing authority” means a London borough council or the Common Council of the City of London.

2.  For the purposes of this Schedule, the population of the area of a housing authority shall be taken to be the number estimated by the Registrar General and certified by him to the Secretary of State by reference to 30th June 1986.

PART II FORMULAE FOR THE PURPOSES OF ARTICLE 7

3.  The formula for ascertaining the amount to be paid by Richmond to each of the other housing authorities is —

where—

• A is an amount equal to the appropriate revenue sum for the year in question;

• B is an amount equal to the appropriate capital sum for that year;

• S equals the population of the area of the housing authority in question;

• T Equals the population of the area of all the housing authorities; and

• Y is the appropriate percentage:

Provided that —

(a) if A is less than zero but B is greater than zero the formula shall be (A + B)Y;

(b) If A is greater than zero but B is less than zero the formula shall be —

(c) if both A and B are zero or less than zero, or if the application of either of the formulae specified in subparagraphs (a) and (b) produces a negative result, the product of the formula shall be deemed to be zero.

4.  If the proviso in paragraph 3(c) applies in any financial year, the expenditure incurred by Richmond in that year in consequence of this Order shall be apportioned among the housing authorities by applying the formula —

where—

• C is the amount of Richmond’s expenditure; and

• S and T have the same meanings as in paragraph 3.

Article 8(1)

SCHEDULE 2 ADDITIONS TO NET CAPITAL RECEIPTS

1.  In this Schedule —

“appropriate percentage” has the same meaning as in Schedule 1 to this Order;

“net capital residue” means the aggregate of the amounts received by Richmond in the financial year in question which are attributable to —

(a)

repayments of principal in respect of any mortgage vested by article 2(1) or any further advance; or

(b)

repayments of discount on early disposal, the right to the repayment of which is vested by article 2(4),

less the aggregate of —

(c)

the amount which, but for article 10, would be treated as prescribed expenditure incurred by Richmond in that year in connection with the matters specified in heads (b), (c) and (d) of that article; and

(d)

any amount which for the purposes of the definition of “appropriate capital sum” in Schedule 1 has been written off in that year as irrecoverable;

“prescribed expenditure” has the same meaning as in section 71 of the 1980 Act.

2.  The amount to be included in the net capital receipts of any authority by virtue of article 8(1) shall be an amount equal to 20% of the appropriate percentage of the net capital residue for the financial year in question:

Provided that if the net capital residue for any year is a negative amount, no amount shall be added to any authority’s net capital receipts for that year.

Schedule 1

SCHEDULE 3 APPROPRIATE PERCENTAGES

Name of authority	Percentage
Barking and Dagenham	1.05
Barnet	1.30
Bexley	0.74
Brent	5.17
Bromley	1.13
Camden	6.16
City of London	0.07
Croydon	1.35
Ealing	2.92
Enfield	1.13
Greenwich	4.13
Hackney	7.38
Hammersmith & Fulham	3.85
Haringey	5.99
Harrow	0.92
Havering	0.93
Hillingdon	1.27
Hounslow	1.76
Islington	6.65
Kensington & Chelsea	2.94
Kingston-upon-Thames	0.39
Lambeth	7.90
Lewisham	5.03
Merton	1.02
Newham	4.85
Redbridge	0.90
Richmond-upon-Thames	1.03
Southwark	7.84
Sutton	0.55
Tower Hamlets	4.14
Waltham Forest	1.99
Wandsworth	4.47
Westminster	3.05