35 Housing trusts: power to transfer housing to local housing authority.
(1) A housing trust may—
(a) sell or lease to the local housing authority the houses provided by the trust, or
(b) make over to the authority the management of the houses.
(2) So far as subsection (1) confers power to dispose of land—
(za) it does not apply to private registered providers of social housing (on whom power to dispose of land is conferred by section 171 of the Housing and Regeneration Act 2008);
(a) it does not apply to registered social landlords (on whom power to dispose of land is conferred by section 8 of the Housing Act 1996);.
(b) it has effect subject to section 9 (dispositions requiring consent of Corporation) where the housing trust is an unregistered housing association and the land is grant-aided land (as defined in Schedule 1); and
(c) it has effect subject to sections 117 to 121 of the Charities Act 2011 (restrictions on dispositions of charity land) where the housing trust is a charity.
36 Housing trusts: functions of Secretary of State with respect to legal proceedings.
(1) If it appears to the Secretary of State—
(a) that the institution of legal proceedings is requisite or desirable with respect to any property belonging to a housing trust, or
(b) that the expediting of any such legal proceedings is requisite or desirable,
he may certify the case to the Attorney-General who may institute legal proceedings or intervene in legal proceedings already instituted in such manner as he thinks proper in the circumstances.
(2) Before preparing a scheme with reference to property belonging to a housing trust, the court or body which is responsible for making the scheme shall communicate with the Secretary of State and consider any recommendations made by him with reference to the proposed scheme.
In this Part—
“assured tenancy” has, in England and Wales, the same meaning as in Part I of the Housing Act 1988 and, in Scotland, the same meaning as in Part II of the Housing (Scotland) Act 1988;
“assured agricultural occupancy” has the same meaning as in Part I of the Housing Act 1988.
“mental disorder” has the same meaning as in the Mental Health Act 1983 or the Mental Health (Scotland) Act 1984;
“occupation contract” has the same meaning as in section 7 of the Renting Homes (Wales) Act 2016 (anaw 1);
“secure tenancy” has the same meaning as in section 79 of the Housing Act 1985 or 44 of the Housing (Scotland) Act 1987;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The following Table shows provisions defining or explaining expressions used in this Part (other than provisions defining or explaining an expression used only in the same section or paragraph):—
appropriate registrar (in relation to a society registered under the 1965 Act). | section 37
assured agricultural occupancy | section 39
assured tenancy | section 39
bank | section 106
charge (in relation to Scotland) | section 106
charity | section 38(a)
committee (in relation to a society registered under the 1965 Act) | section 37
compulsory disposal (in Schedule 2) | paragraph 6 of that Schedule
co-operative housing association | section 1(2)
co-opted member (in relation to the committee of a society registered under the 1965 Act) | section 37
the Companies Act | section 106
. . . | . . .
dissolved under the 1965 Act (in relation to a society registered under that Act) | section 37
district (of a local housing authority) | section 104(2)
dwelling | section 106
eligible for registration (in relation to a housing association) | section 4
exempted disposal (in Schedule 2) | paragraph 5 of that Schedule
friendly society | section 106
fully mutual (in relation to a housing association) | section 1(2)
hostel | section 106
house | section 106
housing activities | section 106
housing association | section 1(1)
. . . | . . .
housing trust | section 2
insurance company | section 106
local housing authority | section 104
member of family | section 105
mental disorder | section 39
mortgage (in relation to Scotland) | section 106
occupation contract | section 39
the 1965 Act | section 37
register, registered, registration and unregistered (in relation to a housing association) | section 3
registered charity | section 38(b)
registered social landlord | section 2B
relevant disposal (in Schedule 2) | paragraph 4 of that Schedule
. . . | . . .
secure tenancy | section 39
shared ownership lease | section 106
shared ownership agreement (in relation to Scotland) | section 106
standard scale | section 39
trustee savings bank | section 106
unregistered (in relation to a housing association) | section 2B
58 Powers of local authorities to promote and assist housing associations: England and Wales.
(1) A local authority may promote the formation or extension of a housing association.
(2) A local authority may for the assistance of a housing association subscribe for share or loan capital of the association.
(3) A local authority may make a loan to an unregistered self-build society for the purpose of enabling it to meet the whole or part of the expenditure incurred, or to be incurred by it, in carrying out its objects.
(4) This section does not apply where the housing association is—
(a) a private registered provider of social housing, or
(b) a registered social landlord (for which corresponding provision is made by section 22 of the Housing Act 1996).
59 Powers of local authorities to promote and assist housing associations: Scotland.
(1) A local authority . . . may promote the formation or extension of or, subject to section 60 (assistance restricted to registered housing associations), assist a housing association whose objects include the erection, improvement or management of housing accommodation.
(2) A local authority . . . may, with the consent of and subject to any regulations or conditions made or imposed by the Secretary of State, for the assistance of such an association—
(a) make grants or loans to the association,
(b) subscribe for share or loan capital of the association, or
(c) guarantee or join in guaranteeing the payment of the principal of, and interest on, money borrowed by the association (including money borrowed by the issue of loan capital) or of interest on share capital issued by the association,
on such terms and conditions as to rate of interest and repayment or otherwise and on such security as the local authority . . . think fit.
(3) A term of an agreement for such a grant or loan is void if it purports to relate to the rent payable in respect of a house to which the agreement relates or the contributions payable towards the cost of maintaining such a house.
(4) Regulations 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.
(5) Sections 6, 15, 320 and 329 of the Housing (Scotland) Act 1987 (general provisions with respect to housing functions of local authorities etc.) apply in relation to this section and section 61, as they apply in relation to the provisions of that Act.
61 Power of local housing authority to supply furniture to housing association tenants.
(1) A local housing authority may sell, or supply under a hire-purchase agreement, furniture to the occupants of houses provided by a housing association under arrangements made with the authority, and may buy furniture for this purpose.
(2) In this section “hire-purchase agreement” means a hire-purchase agreement or conditional sale agreement within the meaning of the Consumer Credit Act 1974.
(3) This section does not apply where the housing association is —
(a) a private registered provider of social housing, or
(b) a registered social landlord (for which corresponding provision is made by section 22 of the Housing Act 1996).
(1) The Treasury may lend money to a registered housing association—
(a) for the purpose of constructing or improving, or facilitating or encouraging the construction or improvement of, houses,
(b) for the purchase of houses, and
(c) for the purchase and development of land.
(1A) Any loan made under subsection (1) is a local loan for the purposes of section 3 of the National Loans Act 1968 (see Schedule 4 to that Act).
(2) A loan for any of those purposes shall be secured with interest by a heritable security over—
(a) the land in respect of which that purpose is to be carried out, and
(b) such other land, if any, as may be offered as security for the loan;
and the money lent shall not exceed three-quarters (or, if the payment of the principal of and interest on the loan is guaranteed by a local authority, nine-tenths) of the value, to be ascertained to the satisfaction of the Treasury, of the estate or interest in the land proposed to be burdened.
(3) Loans may be made by instalments as the building of houses or other work on the land burdened under subsection (2) progresses (so, however, that the total loans do not at any time exceed the amount specified in that subsection); and the heritable security may be granted accordingly to secure such loans so to be made.
(4) If the loan exceeds two-thirds of the value referred to in subsection (2), and is not guaranteed as to principal and interest by a local authority, the Treasury shall require, in addition to such a heritable security as is mentioned in that subsection, such further security as they may think fit.
(5) Subject to subsection (6), the period for repayment of a loan under this section shall not exceed 40 years, and no money shall be lent on the security of any land unless the estate or interest proposed to be burdened is either ownership or a lease of which a period of not less than 50 years remains unexpired at the date of the loan.
(6) Where a loan under this section is made for the purposes of carrying out a scheme for the provision of houses approved by the Secretary of State, the maximum period for the repayment of the loan is 50 instead of 40 years, and money may be lent on heritable security over a lease registered or recorded under the Registration of Leases (Scotland) Act 1857 of which a period of not less than ten years in excess of the period fixed for the repayment of the loan remains unexpired at the date of the loan.
69 Power to vary or terminate certain agreements with housing associations.
(1) This section applies to agreements of the following descriptions—
(a) an agreement for a loan to a housing association by the Housing Corporation under section 2 of the Housing Act 1964 (including such an agreement under which rights and obligations have been transferred to Housing for Wales and then to the Secretary of State);under which rights and obligations have been transferred to the Regulator of Social Housing;
(b) an agreement which continues in force under Part I of Schedule 4 (arrangements with local authority for the provision or improvement of housing);
(c) an agreement to which Part II of Schedule 4 applies (subsidy agreements with local authorities);
(d) an agreement which continues in force under Part III of Schedule 4 (special arrangements with the Secretary of State);
(e) an agreement for a loan or grant to a housing association under section 58(2) or 59(2) (financial assistance by local authorities);
(f) a scheme which continues in force under Part V of Schedule 5 (schemes for unification of grant conditions).
(g) an agreement for a loan or grant to a registered housing association under section 24 of the Local Government Act 1988 (power to provide financial assistance for privately let housing accommodation).
(2) If any person (other than the Secretary of State) who is a party to an agreement to which this section applies makes an application to the Secretary of State, he may, if he thinks fit, direct—
(a) that the agreement shall have effect with such variations, determined by him or agreed by the parties, as may be specified in the direction, or
(b) that the agreement shall be terminated.
and where the Secretary of State is a party to such an agreement, he may agree that it shall have effect with any variations or that it shall be terminated.
(2A) In the case of an agreement under which rights and obligations have been transferred to Housing for Wales and then to the Secretary of State, the reference to a party to the agreement includes a reference to the Secretary of State.
(2B) In the case of an agreement under which rights and obligations have been transferred to the Regulator of Social Housing, the reference to a party to the agreement includes a reference to the Regulator of Social Housing.
(3) No variation shall be directed under subsection (2) which would have the effect of including in an agreement a term—
(a) limiting the aggregate amount of rents payable in respect of dwellings to which the agreement relates or contributions towards the cost of maintaining such dwellings, or
(b) specifying a limit which the rent of a dwelling is not to exceed.
This subsection does not extend to Scotland.
(4) No variation shall be directed under subsection (2) which would have the effect of including in an agreement a term relating to the rent payable in respect of a house to which the agreement relates or contributions towards the cost of maintaining such a house.
This subsection extends to Scotland only.
A housing association is not entitled to a grant under section 50 (housing association grant) or section 51 (revenue deficit grant) of the Housing Act 1988 in respect of land comprised in—
(a) a management agreement within the meaning of the Housing Act 1985 (see sections 27(2) and 27B(4) of that Act: delegation of housing management functions by certain authorities), or
(b) an agreement to which section 22 of the Housing (Scotland) Act 1987 applies (agreements for exercise by housing co-operatives of certain local authority housing functions).
70 Continuation of arrangements under repealed enactments.
The provisions of Schedule 4 have effect in relation to certain arrangements affecting housing associations which continue in force despite the repeal of the enactments under or by reference to which they were made, as follows—
Part I —Arrangements with local authorities for the provision or improvement of housing.
Part II —Subsidy agreements with local authorities.
Part III —Special arrangements with the Secretary of State in Scotland.
71 Superseded contributions, subsidies and grants.
The provisions of Schedule 5 have effect with respect to superseded subsidies, contributions and grants, as follows—
Part I —Residual subsidies: England and Wales.
Part II —Residual subsidies: Scotland.
Part III—Contributions and grants under arrangements with local authorities.
Part IV—Contributions under arrangements with the Secretary of State in Scotland.
Part V —Schemes for the unification of grant conditions.
Part VI—New building subsidy and improvement subsidy.
Part VII—Payments in respect of hostels under pre-1974 enactments.
(1) The Welsh Ministers have the following general functions—
(a) to facilitate the proper performance of the functions of registered social landlords;
(b) to maintain a register of social landlords and to exercise supervision and control over such persons;
(c) to promote and assist the development of self-build societies (other than registered social landlords) and to facilitate the proper performance of the functions, and to publicise the aims and principles, of such societies;
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(e) to undertake, to such extent as the Welsh Ministers consider necessary, the provision (by construction, acquisition, conversion, improvement or otherwise) of dwellings for letting or for sale and of hostels, and the management of dwellings or hostels so provided.
(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) The Welsh Ministers shall exercise their general functions subject to and in accordance with the provisions of this Act and Part I of the Housing Act 1996.
(3) Subsection (1) is without prejudice to specific functions conferred on the Welsh Ministers by or under this Act or Part I of the Housing Act 1996.
(4) The Welsh Ministers may do such things and enter into such transactions as are incidental to or conducive to the exercise of any of their functions, general or specific, under this Act or Part I of the Housing Act 1996.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) The Welsh Ministers may provide an advisory service for the purpose of giving advice on legal, architectural and other technical matters to registered social landlords or unregistered housing associations and to persons who are forming a housing association or are interested in the possibility of doing so.
(2) The Welsh Ministers may make charges for the service.
(3) The powers conferred on the Welsh Ministers by subsections (1) and (2) may be exercised by the Welsh Ministers acting jointly with the Regulator of Social Housing.
(1) The Welsh Ministers may lend to a registered social landlord or an unregistered self-build society... for the purpose of enabling the body to meet the whole or part of expenditure incurred or to be incurred by it in carrying out its objects.
(2) The Welsh Ministers may lend to an individual for the purpose of enabling him to acquire from—
(a) the Welsh Ministers, or
(b) a registered social landlord or an unregistered self-build society,
a legal estate or interest in a dwelling which he intends to occupy.
(3) A loan under this section may be by way of temporary loan or otherwise, and the terms of a loan made under subsection (1) may include (though the terms of a loan made under subsection (2) may not) terms for preventing repayment of the loan or part of it before a specified date without the consent of the Welsh Ministers.
(4) Subject to that, the terms of a loan under this section shall be such as the Welsh Ministers determine either generally or in a particular case.
80 Security for loans to unregistered self-build societies.
(1) Where the Welsh Ministers—
(a) make a loan to an unregistered self-build society under section 79(1); and
(b) under a mortgage ... entered into by the society to secure the loan have an interest as mortgagee or creditor in land belonging to the society,
they may . . . give the society directions with respect to the disposal of the land.
(2) The society shall comply with directions so given so long as the Welsh Ministers continue to have such an interest in the land.
(3) Directions so given may be varied or revoked by subsequent directions ... .
(3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) The Welsh Ministers shall not give directions under this section requiring a society to transfer its interest in land to them or any other person unless they are satisfied that arrangements have been made which will secure that the members of the society receive fair treatment in connection with the transfer.
81 Further advances in case of disposal on shared ownership lease.
Where—
(a) a lease of a dwelling, granted otherwise than in pursuance of the provisions of Part V of the Housing Act 1985 (the right to buy) relating to shared ownership leases, contains a provision to the like effect as that required by paragraph 1 of Schedule 8 to that Act (terms of shared ownership lease: right of tenant to acquire additional shares), and
(b) the Welsh Ministers have, in exercise of any of their powers, left outstanding or advanced any amount on the security of the dwelling,
that power includes power to advance further amounts for the purpose of assisting the tenant to make payments in pursuance of that provision.
Schedule 7 (further powers of Relevant Authority with respect to land of certain housing associations) applies where a loan has been made to a housing association under section 2 of the Housing Act 1964 and the loan has not been repaid.
(1) The Welsh Ministers may guarantee the repayment of the principal of, and the payment of interest on, sums borrowed by registered social landlords or unregistered self-build societies.
(2) A guarantee may be subject to terms and conditions.
(3A) The aggregate amount outstanding in respect of—
(a) loans for which the Welsh Ministers (or National Assembly for Wales, Secretary of State or Housing for Wales) have given a guarantee under this section, and
(b) payments made by the Welsh Ministers (or National Assembly for Wales, Secretary of State or Housing for Wales) in meeting an obligation arising by virtue of such a guarantee and not repaid to the Welsh Ministers (or National Assembly for Wales, Secretary of State or Housing for Wales),
shall not exceed £30 million or such greater sum not exceeding £50 million as the Welsh Ministers may specify by order.
(4) An order under subsection (3A)—
(a) shall be made by statutory instrument, and
(b) shall not be made unless, a draft of the order has been laid before, and approved by a resolution of, the National Assembly for Wales.
(1) The Welsh Ministers may . . . enter into an agreement with—
(a) a building society lending on the security of a house, or
(b) a recognised body making a relevant advance on the security of a house,
whereby, in the event of default by the mortgagor, and in circumstances and subject to conditions specified in the agreement, the Welsh Ministers bind themselves to indemnify the society or body in respect of the whole or part of the mortgagor’s outstanding indebtedness and any loss or expense falling on the society or body in consequence of the mortgagor’s default.
(2) The agreement may also, if the mortgagor is made party to it, enable or require the Welsh Ministers in specified circumstances to take a transfer of the mortgage and assume rights and liabilities under it, the building society or recognised body being then discharged in respect of them.
(3) The transfer may be made to take effect—
(a) on terms provided for by the agreement (including terms involving substitution of a new mortgage agreement or modification of the existing one), and
(b) so that the Welsh Ministers are treated as acquiring (for and in relation to the purposes of the mortgage) the benefit and burden of all preceding acts, omissions and events.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) The Welsh Ministers shall, before entering into an agreement in a form about which they have not previously consulted under this subsection, consult—
(a) in the case of a form of agreement with a building society, the Financial Conduct Authority, the Prudential Regulation Authority and such organisations representative of building societies and local authorities as they think expedient, and
(b) in the case of a form of agreement with a recognised body, such organisations representative of such bodies and local authorities as they think expedient.
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .