387 Right of entry for inspection and carrying out of works.
(1) The local housing authority, and any person authorised in writing by the authority, have, as against a person having an estate or interest in a house which is subject to a control order, the right at all reasonable times to enter any part of the house for the purpose of survey and examination or of carrying out works.
(2) The right conferred by subsection (1) is without prejudice to the rights conferred on the authority by section 381 (general effect of control order).
(3) Where part of a house is excluded from the provisions of a control order under section 380 (modification of order where dispossessed proprietor resides in part of the house), the right conferred by subsection (1) is exercisable as respects that part so far as is reasonably required for the purpose of survey and examination of, or carrying out works in, the part of the house which is subject to the control order.
(4) If the occupier of part of a house subject to a control order, after receiving notice of the intended action, prevents any officers, agents, servants, or workmen of the local housing authority from carrying out work in the house a magistrates’ court may order him to permit to be done on the premises anything which the authority consider necessary.
(5) A person who fails to comply with an order of the court under subsection (4) commits a summary offence and is liable to a fine not exceeding level 5 on the standard scale
The local housing authority may fit out, furnish and supply a house subject to a control order with such furniture, fittings and conveniences as appear to them to be required.
389 Compensation payable to dispossessed proprietor.
(1) The local housing authority shall pay compensation to the dispossessed proprietor—
(a) in respect of the period during which the control order is in force, at a rate calculated in accordance with Part II of Schedule 13 . . . ;
(b) in respect of a period during which the authority have the right to possession of furniture in pursuance of section 383 (house subject to furnished letting when control order made), at such rate as the parties agree or is determined in default of agreement by the rent tribunal for the district in which the house is situated.
(2) Compensation accrues from day to day (and is apportionable in respect of time accordingly) and is payable by quarterly instalments, the first instalment being payable three months after the date when the control order comes into force.
(3) If at the time when compensation accrues due the estate or interest of the dispossessed proprietor or, as the case may be, the furniture in question is subject to a mortgage or charge, the compensation is also comprised in the mortgage or charge.
390 Facilities to be afforded to dispossessed proprietor and others.
(1) The local housing authority shall—
(a) keep full accounts of their income and expenditure in respect of a house which is subject to a control order, and
(b) afford to the dispossessed proprietor, or any other person having an estate or interest in the house, all reasonable facilities for inspecting, taking copies of and verifying those accounts.
(2) While a control order is in force the local housing authority shall afford to the dispossessed proprietor, or any other person having an estate or interest in the house, any reasonable facilities requested by him for inspecting and examining the house.
(1) Either the lessor or lessee under a lease of premises which consist of or include a house which is subject to a control order, other than a lease to which section 382(2) applies (leases under which persons are occupying parts of the house and which have effect as if the local housing authority were substituted as landlord), may apply to the county court for an order for the determination of the lease or for its variation.
(2) If on such an application the court is satisfied that—
(a) if the lease is determined and the control order is revoked, the lessor will be in a position, and intends, to take all such action to remedy the condition of the house as the local housing authority consider they would, if a control order had not been in force, have required to be carried out under any provision of this Part, and
(b) that the authority intend, if the lease is determined, to revoke the control order,
the court shall exercise the jurisdiction conferred by this section so as to determine the lease.
(3) An order under this section may be unconditional or subject to such terms and conditions as the court thinks just and equitable to impose having regard to the respective rights, obligations and liabilities of the parties underthe lease and to the other circumstances.
(4) The terms and conditions may include terms or conditions with respect to the payment of money by a party to the proceedings to another party to the proceedings, by way of compensation, damages or otherwise.
(5) An order under this section may include provisions for modifying in relation to the lease the effect of the provisions of paragraph 15 of Schedule 13 (re-transfer of the landlord’s interest on the cessation of the control order).
(1) A control order ceases to have effect at the expiry of the period of five years beginning with the date on which it came into force.
(2) The local housing authority may at any earlier time, either on application or on their own initiative, by order revoke a control order.
(3) The authority shall, at least 21 days before revoking a control order, serve notice of their intention to do so on—
(a) the persons occupying any part of the house, and
(b) every person who is to the knowledge of the authority an owner, lessee or mortgagee of the house.
(4) If a person applies to the local authority requesting the authority to revoke a control order and giving the grounds on which the application is made, the authority shall if they refuse the application inform the applicant of their decision and of their reasons for rejecting the grounds advanced by him.
(5) Where the local housing authority propose to revoke a control order under this section on their own initiative and apply to the county court under this subsection, the court may approve the taking of any of the following steps to take effect on the revocation of the control order, that is—
(a) the serving of a notice under section 352, . . . or 372 (notices requiring the execution of works),
(b) the giving of a direction under section 354 (direction limiting number of occupants of house), or
(c) the making of an order under section 370 (order applying management code to house);
and no appeal lies against a notice or order so approved.
393 Appeal against refusal to revoke control order.
(1) If the local housing authority—
(a) refuse an application under section 392 for the revocation of a control order, or
(b) do not within 42 days from the making of such an application or such further period as the applicant may in writing allow, inform him of their decision,
the applicant may appeal to the county court and the county court may revoke the order.
(2) The court shall revoke the control order if—
(a) the appellant has an estate or interest in the house which, apart from the rights conferred on the local housing authority by section 381 (general effect of control order) and the rights of persons occupying any part of the house, would give him the right to possesion of the house,
(b) that estate or interest was, when the control order came into force, subject to a lease for a term of years which has subsequently expired, and
(c) the appellant satisfies the court that he is in a position and intends, if the control order is revoked, to demolish or reconstruct the house or to carry out substantial work of construction on the site of the house;
and if the court is not so satisfied but would be so satisfied if the date of revocation of the control order were a date later than the hearing of the appeal, the court shall, if the appellant so requires, make an order for the revocation of the control order on that later date.
(3) If an appeal is brought under this section, the leave of the court is required for the bringing of another appeal against the same order, whether by the same or a different appellant, within the period of six months beginning with the final determination of the previous appeal.
(4) Further provisions as to certain matters arising on the revocation of a control order on appeal are contained in Part III of Schedule 13.
Further provisions as to matters arising on the cessation of a control order are contained in Parts III and IV of Schedule 13—
Part III relates to the cessation of control orders generally, and
Part IV provides for the case where a control order is followed by a compulsory purchase order.
(1) Where it appears to the local housing authority that survey or examination of any premises is necessary in order to determine whether any powers under this Part should be exercised in respect of the premises, a person authorised by the authority may at any reasonable time, on giving 24 hours’ notice of his intention to the occupier, and to the owner if the owner is known, enter the premises for the purpose of such a survey and examination.
(2) A person authorised by the local housing authority may at any reasonable time, without any such prior notice as is mentioned in subsection (1), enter any premises for the purpose of ascertaining whether an offence has been committed under any of the following provisions of this Part—
section 348G (contravention of or failure to comply with provision of registration scheme),
section 355(2) (failure to comply with requirements of direction limiting number of occupants of house),
section 358(4) (contravention of overcrowding notice),
section 368(3) (use or permitting use of part of house with inadequate means of escape from fire in contravention of undertaking),
section 369(5) (contravention of or failure to comply with regulations prescribing management code),
section 376(1) or (2) (failure to comply with notice requiring execution of works).
(3) An authorisation for the purposes of this section shall be in writing stating the particular purpose or purposes for which the entry is authorised and shall, if so required, be produced for inspection by the occupier or anyone acting on his behalf.
(1) The Secretary of State may by order—
(a) approve any code of practice (whether prepared by him or another person) which, in his opinion, gives suitable guidance to any person in relation to any matter arising under this Part;
(b) approve any modification of such a code; or
(c) withdraw such a code or modification.
(2) The Secretary of State shall only approve a code of practice or a modification of a code if he is satisfied that—
(a) the code or modification has been published (whether by him or by another person) in such manner as he considers appropriate for the purpose of bringing the code or modification to the notice of those likely to be affected by it; or
(b) arrangements have been made for the code or modification to be so published.
(3) The Secretary of State may approve—
(a) more than one code of practice in relation to the same matter;
(b) a code of practice which makes different provision with respect to different cases or descriptions of case (including different provision for different areas).
(4) A failure to comply with a code of practice for the time being approved under this section shall not of itself render a person liable to any civil or criminal proceedings; but in any civil or criminal proceedings—
(a) any code of practice approved under this section shall be admissible in evidence, and
(b) any provision of any such code which appears to the court to be relevant to any question arising in the proceedings shall be taken into account in determining that question.
(5) An order under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(6) In this section references to a code of practice include references to a part of a code of practice.
(1) It is a summary offence intentionally to obstruct an officer of the local housing authority, or any person authorised to enter premises in pursuance of this Part, in the performance of anything which he is by this Part required or authorised to do.
(2) A person committing such an offence is liable on conviction to a fine not exceeding level 4 on the standard scale.
(1) Where it is shown to the satisfaction of a justice of the peace, on sworn information in writing, that admission to premises specified in the information is reasonably required by a person employed by, or acting on the instructions of, the local housing authority—
(a) for the purpose of survey and examination to determine whether any powers under this Part should be exercised in respect of the premises, or
(b) for the purpose of ascertaining whether an offence has been committed under any of the provisions of this Part listed in section 395(2),
the justice may by warrant under his hand authorise that person to enter on the premises for those purposes or for such of those purposes as may be specified in the warrant.
(2) The justice shall not grant the warrant unless he is satisfied—
(a) that admission to the premises has been refused and, except where the purpose specified in the information is that mentioned in subsection (1)(b), that admission was sought after not less than 24 hours’ notice of the intended entry had been given to the occupier, or
(b) that application for admission would defeat the purpose of the entry.
(3) The power of entry conferred by the warrant includes power to enter by force, if need be, and may be exercised by the person on whom it is conferred either alone or together with other persons.
(4) If the premises are unoccupied or the occupier is temporarily absent, a person entering under the authority of the warrant shall leave the premises as effectively secured against trespassers as he found them.
(5) The warrant continues in force until the purpose for which the entry is required is satisfied.
398 Meaning of “lessee”, “owner”, “person, having control” and similar expressions.
(1) In this Part the expressions “lessee”, “owner” “person having an estate or interest”, “person having control”, and “person managing” shall be construed as follows.
(2) “Lessee” includes a statutory tenant of the premises, and references to a lease or to a person to whom premises are let shall be construed accordingly.
(3) “Owner”—
(a) means a person (other than a mortgagee not in possession) who is for the time being entitled to dispose of the fee simple of the premises whether in possession or in reversion, and
(b) includes also a person holding or entitled to the rents and profits of the premises under a lease having an unexpired term exceeding three years.
(4) “Person having an estate or interest” includes a statutory tenant of the premises.
(5) “Person having control” means the person who receives the rack-rent of the premises, whether on his own account or as agent or trustee of another person, or who would so receive it if the premises were let at a rack-rent (and for this purpose a “rack-rent” means a rent which is not less than 2/3rds of the full net annual value of the premises).
(6) “Person managing”—
(a) means the person who, being an owner or lessee of the premises—
(i) receives, directly or through an agent or trustee, rents or other payments from persons who are tenants of parts of the premises, or who are lodgers, or
(ii) would so receive those rents or other payments but for having entered into an arrangement (whether in pursuance of a court order or otherwise) with another person who is not an owner or lessee of the premises by virtue of which that other person receives the rents or other payments, and
(b) includes, where those rents or other payments are received through another person as agent or trustee, that other person.
In this Part—
“dispossessed proprietor”, in relation to a house subject to a control order, means the person by whom the rent or other periodical payments to which the local housing authority become entitled on the coming into force of the order would have been receivable but for the making of the order, and the successors in title of that person;
“final determination”, in relation to an appeal, includes the withdrawal of the appeal, which has the same effect for the purposes of this Part as a decision dismissing the appeal;
“house” includes any yard, garden, outhouses and appurtenances belonging to the house or usually enjoyed with it.
The following Table shows provisions defining or otherwise explaining expressions used in this Part (other than provisions defining or explaining an expression used in the same section or paragraph):—
appropriate multiplier | Schedule 13, paragraph 13
assured tenancy | section 622
assured agricultural occupancy | section 622
control order | section 379(1)
control provisions | section 347(1)
dispossessed proprietor | section 399
district (of a local housing authority) | section 2(1)
district valuer | section 622
expenditure incurred (in respect of a house subject to a control order) | section 385(3) and Schedule 13, paragraph 2(3)
final determination (in relation to an appeal) | section 399
flat in multiple occupation | section 354
gross value | Schedule 13, paragraphs 8 to 12
house | section 399
house in multiple occupation | section 345
lessee (and “lease” and “let”) | sections 398 and 621
local housing authority | section 1, 2(2)
management code | section 369
management scheme | section 386
occupancy direction (in connection with special control provisions) | section 348D
overcrowding notice | section 358(1)
owner | section 398(3)
person having control | section 398(5)
person having an estate or interest | section 398(4)
person managing | sections 369(4), 372(5) and 398(6)
registration scheme | section 346
relevant management failure (for purposes of sections 348B to 348E) | section 348F
the Rent Acts | section 622
rents or other payments | Schedule 13, paragraph 2(2)
special control provisions | section 348B
standard scale (in reference to the maximum fine on summary conviction) | section 622
statutory tenant | section 622
surpluses on revenue account as settled by the scheme (in Schedule 13) | Schedule 13, paragraph 2(1)
tenant | section 621
In this Part “common lodging house” means a house (other than a public assistance institution) provided for the purpose of accommodating by night poor persons, not being members of the same family, who resort to it and are allowed to occupy one common room for the purpose of sleeping or eating, and includes, where part only of a house is so used, the part so used.
402 No person to keep a common lodging house unless registered.
No person shall keep a common lodging house, or receive a lodger in a common lodging house, unless he is registered as the keeper of the house under this Part.
Provided that, when the registered keeper of a common lodging house dies, his widow or any other member of his family may, for a period not exceeding four weeks from his death or such longer period as the local housing authority may sanction, keep the common lodging house without being registered as the keeper.
403 Register of common lodging house keepers and their houses.
The local housing authority shall keep a register in which shall be entered—
(a) the full names and the place of residence of every person registered as the keeper of a common lodging house;
(b) the situation of every such lodging house;
(c) the number of persons authorised to be received in the lodging house; and
(d) the full names and places of residence of any persons who are to act as deputies of the keeper of the lodging house.
(1) Subject to the following provisions of this section, a local housing authority, on receiving from a person an application in writing—
(a) for registration as a keeper of a common lodging house, or
(b) for the renewal of his registration,
shall register the applicant in respect of the common lodging house named in the application, or renew his registration in respect of it, and issue to him a certificate of registration or renewal
(2) The authority shall not register an applicant until an officer of the authority has inspected the premises named in the application and has made a report on them.
(3) The authority may refuse to register, or renew the registration of, an applicant if they are satisfied that—
(a) he, or a person employed or proposed to be employed by him at the common lodging house, as a deputy or otherwise, is not a fit person, whether by reason of his age or otherwise, to keep or to be employed at a common lodging house; or
(b) the premises are not suitable for use as a common lodging house or are not, as regards sanitation and water supply and in other respects, including means of escape in case of fire, suitably equipped for such use; or
(c) the use of the premises as a common lodging house is likely to occasion inconvenience or annoyance to persons residing in the neighbourhood.
(4) The registration of a person as a keeper of a common lodging house remains in force for such period, not exceeding 13 months, as may be fixed by the authority, but may be renewed by them for a period not exceeding 13 months at any one time.
(5) If a local housing authority refuse to grant or renew registration, they shall, if required by the applicant, give him a statement in writing of the grounds on which his application is refused.
(6) A local housing authority shall at any time, on the application of a person registered as the keeper of a common lodging house—
(a) remove from the register the name of any person entered in it as a deputy of the keeper, or
(b) insert the name of any other person (being a person approved by the authority) whom the keeper proposes to employ as a deputy,
and shall make any consequential alterations in the certificate of registration.
(1) A person aggrieved by the refusal of a local housing authority under section 404 to grant or renew registration may appeal to a magistrates’ court.
(2) The time within which an appeal may be brought is 21 days from the date on which notice of the authority’s refusal was served on the person desiring to appeal; and for the purposes of this subsection the making of the complaint shall be deemed to be the bringing of the appeal.
(3) Where such an appeal lies, the document notifying to the person concerned the decision of the authority in the matter shall state the right of appeal to a magistrates’ court and the time within which such an appeal may be brought.
(4) A person aggrieved by a decision of a magistrates’ court on such an appeal may appeal to the Crown Court.
(5) Where on an appeal under this section a court varies or reverses the authority’s decision, the authority shall make any necessary entry in the register and issue any necessary certificate.
A local housing authority may, and if so required by the Secretary of State shall, make byelaws—
(a) for fixing the number of persons who may be received into a common lodging house, and for the separation of the sexes in it;
(b) for promoting cleanliness and ventilation in common lodging houses, and requiring the walls and ceilings of such lodging houses to be limewashed, or treated with some other suitable preparation, at specified intervals;
(c) with respect to the taking of precautions when any case of infectious disease occurs in such a lodging house and
(d) generally for the well-ordering of such lodging houses.
407 Management and control of common lodging houses.
(1) The keeper of a common lodging house shall, if required by the local housing authority to do so, affix, and keep affixed and undefaced and legible, a notice with the words “Registered Common Lodging-house” in some conspicuous place on the outside of the house.
(2) Either the keeper of the lodging house, or a deputy registered under this Part, shall manage the lodging house and exercise supervision over persons using it, and either the keeper or a deputy so registered shall be at the lodging house continuously between the hours of nine o’clock in the evening and six o’clock in the morning of the following day.
(3) The local housing authority may by notice require the keeper of a common lodging house in which beggars or vagrants are received to report daily to them, or to such persons as they may direct, every lodger who resorted to the house during the preceding day or night.
(4) An authority who require such reports to be made shall supply to the keeper of the lodging house schedules to be filled up by him with the information required and to be transmitted by him in accordance with their notice.
(5) The keeper of a common lodging house, and every other person having the care or taking part in the management of it, shall at all times, if required by an authorised officer of the local housing authority, allow him to have free access to all parts of the house.
(1) It is a summary offence for a person—
(a) to contravene or fail to comply with any of the provisions of this Part;
(b) being the registered keeper of a common lodging house, to fail to keep the premises suitably equipped for use as such;
(c) to apply to be registered as the keeper of a common lodging house at a time when he is, under section 409, disqualified from being so registered; or
(d) in an application for registration, or for the renewal of his registration, as the keeper of a common lodging house, to make a statement which he knows to be false.
(2) A person committing such an offence is liable on conviction to a fine not exceeding level 2 on the standard scale and, subject to subsection (3), to a further fine not exceeding one-tenth of the amount corresponding to that level for each day on which the offence continues after conviction.
(3) The court by which a person is convicted of the original offence may fix a reasonable period from the date of conviction for compliance by the defendant with any directions given by the court and, where a court has fixed such a period, the daily penalty is not recoverable in respect of any day before the period expires.
409 Power of court on conviction to cancel registration and to disqualify for re-registration
Where the registered keeper of a common lodging house is convicted of—
(a) an offence under this Part or a byelow made under it, or
(b) an offence under section 39(2) or 49(2) of the Public Health (Control of Disease) Act 1984 (failure to notify case of infectious disease or failure to comply with closing order made on account of notifiable disease),
the court by which he is convicted may cancel his registration as a common lodging house keeper and may order that he be disqualified for such period as the court thinks fit from being again registered as such a keeper.
410 Duty of local housing authority to enforce this Part.
(1) The local housing authority shall carry this Part into execution.
(2) Sections 322 to 326 of the Public Health Act 1936 (default powers of Secretary of State and related provisions) apply in relation to failure by a local housing authority to discharge their functions under this Part.
(1) An authorised officer of a local housing authority may at any reasonable time, on giving 24 hours’ notice of his intention to the occupier and producing, if so required, some duly authenticated document showing his authority, enter premises for the purpose—
(a) of ascertaining whether there is, or has been, on or in connection with the premises, any contravention of the provisions of this Part or of any byelaw made under it;
(b) of ascertaining whether circumstances exist which would authorise or require the authority to take any action under this Part or any such byelaws;
(c) for the purpose of taking any action authorised or required by this Part or any such byelaws to be taken by the authority; or
(d) generally, for the purpose of the performance by the authority of their functions under this Part or any such byelaws.
(2) If it is shown to the satisfaction of a justice of the peace on sworn information in writing that there is reasonable ground for entry into premises for any of the purposes mentioned in subsection (1) and—
(a) that admission to premises has been refused, or that refusal is apprehended,
(b) that the premises are unoccupied or the occupier is temporarily absent, or
(c) that the case is one of urgency or that an application for admission would defeat the object of the entry,
he may, by warrant under his hand, authorise the authority by any authorised officer to enter the premises, by force if need be.
(3) A warrant shall not be issued unless the justice is satisfied either—
(a) that notice of the intention to apply for a warrant has been given to the occupier, or
(b) that the premises are unoccupied, the occupier is temporarily absent, the case is one of urgency, or the giving of such notice would defeat the object of the entry.
(4) An authorised officer entering premises by virtue of this section, or of a warrant issued under this section, may take with him such other persons as may be necessary; and on leaving any unoccupied premises which he has entered by virtue of such a warrant shall leave them as effectually secured against trespassers as he found them.
(5) A warrant granted under this section continues in force until the purpose for which the entry is necessary has been satisfied.
(1) It is a summary offence for a person intentionally to obstruct a person acting in the execution of this Part or of any byelaw or warrant made or issued under it.
(2) A person committing such an offence is liable on conviction to a fine not exceeding level 3 on the standard scale.
Proceedings in respect of an offence created by or under this Part shall not, without the written consent of the Attorney General, be taken by any person other than a party aggrieved or the local housing authority.
(1) If in proceedings under this Part it is alleged that the inmates of a house or part of a house are members of the same family, the burden of proving that allegation rests on the person by whom it is made.
(2) In proceedings under this Part a document purporting to be a copy of an entry in the register of common lodging houses and purporting to be certified as such by the proper officer of the local housing authority shall be prima facie evidence of the matters recorded in the entry.
(3) The proper officer of the local housing authority shall supply such a certified copy free of charge to any person who applies for it at a reasonable hour.
Section 341 of the Public Health Act 1936 (power to apply provisions to Crown property) applies to the provisions of this Part as it applies to provisions of that Act.
The following Table shows provisions defining or otherwise explaining expressions used in this Part (other than provisions defining or explaining an expression used in the same section):—
common lodging house | section 401
local housing authority | section 1, 2(2)
standard scale (in reference to the maximum fine on summary conviction) | section 622
(1) Housing subsidy is payable for each year to development corporations . . ..
(2) Housing subsidy shall be credited to the corporation's housing account
(3) Housing subsidy shall be paid by the Secretary of State at such times, in such manner and subject to such conditions as to records, certificates, audit or otherwise as he may, with the agreement of the Treasury, determine.
(4) Payment of housing subsidy is subject to the making of a claim for it in such form, and containing such particulars, as the Secretary of State may from time to time determine.
422 Calculation of housing subsidy for local housing authorities.
(1) The amount of the housing subsidy payable to a development corporation for a year (the year of account) shall be calculated from the amounts which, in accordance with sections 423 to 425, are the corporation’s—
(a) base amount (BA),
(b) housing costs differential (HCD), and
(c) local contribution differential (LCD),
for the year, and shall be so calculated by using the formula BA+HCD-LCD.
(2) If the amount so calculated is nil or a negative amount, no housing subsidy is payable to the corporation for that year.
(1) A development corporation’s base amount for a year of account is, subject to any adjustment under subsection (2), the amount calculated for the preceding year under section 422, that is to say, the amount of the housing subsidy payable to the corporation for that year or, if none was payable, nil or a negative amount, as the case may be.
(2) If the Secretary of State is of opinion that particular circumstances require it, he may adjust the base amount for amy year by increasing or decreasing it, either generally or in relation to . . . any particular corporation .
(1) A development corporation’s housing costs differential for a year of account is the amount by which their reckonable expenditure for that year exceeds their reckonable expenditure for the preceding year (and accordingly is nil or, as the case may be, a negative amount if the reckonable expenditure for the year is the same as or less than that for the preceding year).
(2) A development corporation’s reckonable expenditure for a year is the aggregate of—
(a) so much of the expenditure incurred by the corporation in that year and falling to be debited to the corporation’s housing account as the Secretary of State may determine, and
(b) so much of any other expenditure incurred by the corporation in that year, or treated as so incurred in accordance with a determination made by the Secretary of State, as the Secretary of State may determine to be taken into account for the purposes of housing subsidy.
(3) A determination may be made for all development corporations or different determinations may be made for individual corporations; and a determination may be varied or revoked in relation to all or any of the corporations for which it was made.
(4) Before making a determination for all development corporations the Secretary of State shall consult organisations appearing to him to be representative of development corporations.
(1) A development corporation’s local contribution differential for a year of account is the amount by which their reckonable income for that year exceeds their reckonable income for the preceding year (and accordingly is nil or, as the case may be, a negative amount if their reckonable income for the year is the same as or less than that for the preceding year).
(2) A corporation’s reckonable income for a year is the amount which, in accordance with any determination made by the Secretary of State, the corporation are assumed to receive for that year as income which they are required to carry to their housing account including—
(a) any contribution made by the corporation out of their general revenue account, and
(b) any rent rebate subsidy payable under section 140Aof the Social Security Administration Act 1992,
but excluding any other subsidy, grant or contribution.
(3) A determination shall state the assumptions on which it is based and the method of calculation used in it, and in making it the Secretary of State shall have regard, amongst other things, to past and expected movements in incomes, costs and prices.
(4) A determination may be made for all development corporations or different determinations may be made for different corporations or groups of corporations.
(5) Before making a determination for all development corporations the Secretary of State shall consult organisations appearing to him to be representative of development corporations.
(6) A determination shall be made known to the corporations for which it is made in the year preceding the year of account for which it is to have effect.
(1) Where housing subsidy has been paid to a development corporation . . . and it appears to the Secretary of State that—
(a) the purpose for which it was paid has not been fulfilled or not completely or adequately or not without unreasonable delay, and
(b) that the case falls within rules published by him,
he may recover from that corporation the whole or such part of the payment as he may determine in accordance with the rules, with interest from such time and at such rates as he may so determine.
(2) A sum recoverable under this section may, without prejudice to other methods of recovery, be recovered by withholding or reducing housing subsidy.
(3) The withholding or reduction under this section of housing subsidy for a year does not affect the base amount for the following year.
427A Entitlement to subsidy in case of land subject to management agreement.
(1) The fact that a development corporation . . . has entered into a management agreement, and any letting of land in connection with such an agreement—
(a) shall be disregarded in determining that corporation's reckonable income or expenditure for the purposes of housing subsidy, and
(b) shall not be regarded as a ground for recovering, withholding or reducing any sum under section 427 (recoupment of housing subsidy).
(2) Reference in subsection (1) to a management agreement includes a section 247 or 249 arrangement, as defined by section 250A(6) of the Housing and Regeneration Act 2008.