(1)The Scottish Ministers may make grants to a local authority for the purposes of—
(a)the authority’s functions in connection with—
(i)providing, improving, adapting, repairing, maintaining and managing housing,
(ii)undertaking, and assisting the undertaking of, the development, redevelopment and improvement of the physical, social, economic and recreational environment related to housing,
(iii)preventing or alleviating homelessness,
and related matters,
(b)relevant housing-related debt of the authority.
(2)The functions mentioned in subsection (1)(a)(i) and (ii) do not include expenditure in relation to any house, building or land to which the housing revenue account kept by the authority under section 203 of the 1987 Act relates.
(3)In subsection (1)(b), “relevant housing-related debt” means such liabilities of the authority as the Scottish Ministers, after consultation with the authority, may specify, being liabilities—
(a)in respect of loan charges within the meaning of paragraph 3(a) of Schedule 15 to the 1987 Act which—
(i)are required by that paragraph to be debited to the authority’s housing revenue account, or
(ii)would, but for an order under section 94(2) of this Act, have been required to be so debited, or
(b)otherwise arising in connection with the loan to which such loan charges relate.
(4)A grant under subsection (1) is to be—
(a)of such amount, and
(b)subject to such terms and conditions,
as the Scottish Ministers think fit.
(5)A local authority may arrange for any of its functions in relation to sums, or descriptions of sum, received by it under subsection (1) to be exercised on its behalf by the Scottish Ministers on such terms (including financial ones) as the authority and the Scottish Ministers may agree; and the Scottish Ministers may exercise those functions accordingly.
(6)An arrangement under subsection (5) does not affect the responsibility of the authority for the exercise of its functions.