Housing Act 1996
1996 Chapter 52 - continued

 
 
Recovery, &c. of social housing grants
Recovery, &c. of social housing grants.     27. - (1) Where a registered social landlord has received a grant under section 18 (social housing grant), the following powers are exercisable in such events as the Corporation may from time to time determine.
 
      (2) The Corporation may, acting in accordance with such principles as it has determined-
 
 
    (a) reduce any grant payable by it, or suspend or cancel any instalment of any such grant, or
 
    (b) direct the registered social landlord to apply or appropriate for such purposes as the Corporation may specify, or to pay to the Corporation, such amount as the Corporation may specify.
      (3) A direction by the Corporation under subsection (2)(b) may require the application, appropriation or payment of an amount with interest.
 
      (4) Any such direction shall specify-
 
 
    (a) the rate or rates of interest (whether fixed or variable) which is or are applicable,
 
    (b) the date from which interest is payable, and
 
    (c) any provision for suspended or reduced interest which is applicable.
     
      The date from which interest is payable must not be earlier than the date of the event giving rise to the exercise of the Corporation's powers under this section.
      (5) In subsection (4)(c)-
 
 
    (a) provision for suspended interest means provision to the effect that if the principal amount is applied, appropriated or paid before a date specified in the direction, no interest will be payable for any period after the date of the direction; and
 
    (b) provision for reduced interest means provision to the effect that if the principal amount is so applied, appropriated or paid, any interest payable will be payable at a rate or rates lower than the rate or rates which would otherwise be applicable.
      (6) Where-
 
 
    (a) a registered social landlord has received a payment in respect of a grant under section 18, and
 
    (b) at any time property to which the grant relates becomes vested in, or is leased for a term of years to, or reverts to, some other registered social landlord,
  this section (including this subsection) shall have effect in relation to periods after that time as if the grant, or such proportion of it as may be determined by the Corporation to be appropriate, had been made to that other registered social landlord.
      (7) The matters specified in a direction under subsection (4)(a) to (c), and the proportion mentioned in subsection (6), shall be-
 
 
    (a) such as the Corporation, acting in accordance with such principles as it may from time to time determine, may specify as being appropriate, or
 
    (b) such as the Corporation may determine to be appropriate in the particular case.
 
Grants, &c. under earlier enactments
Grants under ss.50 to 55 of the Housing Act 1988.     28. - (1) No application for a grant under section 50 of the Housing Act 1988 (housing association grant) may be made after the commencement of this subsection.
 
      (2) No application for a grant under section 51 of that Act (revenue deficit grant) may be made after the commencement of this subsection except by an association which had such a deficit as is mentioned in that section for any of the years beginning 1st April 1994, 1st April 1995 or 1st April 1996.
 
      (3) Section 52 of that Act (recovery, &c. of grants) is amended as follows-
 
 
    (a) in subsection (2)(c), for "to pay to it" substitute "to apply or appropriate for such purposes as the Corporation may specify, or to pay to the Corporation,";
 
    (b) in the closing words of subsection (2), for the words from "requiring" to "interest on that amount" substitute "may require the application, appropriation or payment of an amount with interest";
 
    (c) in subsection (7), for the words from "requiring" to "to the Corporation" substitute "requiring the application, appropriation or payment of an amount with interest";
 
    (d) in subsection (8)(a), for the words from "the amount" to "is paid" substitute "the principal amount is applied, appropriated or paid";
 
    (e) in subsection (8)(b), for "that amount is so paid" substitute "the principal amount is so applied, appropriated or paid".
      (4) In section 53 of that Act (determinations by Corporation), for subsection (2) (requirement of approval of Secretary of State and, in the case of a general determination, consent of the Treasury) substitute-
 
 
    "(2) The Corporation shall not make a general determination under the foregoing provisions of this Part except with the approval of the Secretary of State.".
 
      (5) In section 55(1) of that Act (surplus rental income: cases in which section applies), omit paragraph (a).
 
      (6) Any reference in sections 50 to 55 of that Act to registration as a housing association shall be construed after the commencement of section 1 of this Act (the register of social landlords) as a reference to registration as a social landlord.
 
Commutation of payments of special residual subsidy.     29. - (1) The Secretary of State may, after consultation with a housing association, determine to commute any payments of special residual subsidy payable to the association under paragraph 2 of Part I of Schedule 5 to the Housing Associations Act 1985 for the financial year 1998-99 and subsequent years.
 
      (2) Where the Secretary of State makes such a determination the payments of special residual subsidy payable to a housing association shall be commuted into a single sum calculated in such manner, and payable on such date, as the Secretary of State may consider appropriate.
 
      (3) If after a commuted payment has been made to a housing association it appears to the Secretary of State that the payment was smaller or greater than it should have been, the Secretary of State may make a further payment to the association or require the association to repay to him such sum as he may direct.
 
      (4) The Secretary of State may delegate to the Housing Corporation, to such extent and subject to such conditions as he may specify, any of his functions under this section and, where he does so, references to him in this section shall be construed accordingly.
 
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Prepared 22 December 1996