Housing Act 1969

74Power of local authority to make advances repayable on maturity

(1)A local authority may, subject to such conditions as may be approved by the Minister, advance money to any person for the alteration, enlargement, repair or improvement of any dwelling, and the following provisions of this section shall apply with respect to an advance made under this section.

(2)The principal of the advance, together with interest thereon, shall be secured by a mortgage of the borrower's interest in the dwelling, and the amount of the principal shall not exceed the value which, in accordance with a valuation duly made on behalf of the local authority, it is estimated that interest will bear when the alteration, enlargement, repair or improvement has been carried out.

(3)The advance may be made by instalments from time to time as the works of alteration, enlargement, repair or improvement progress.

(4)The advance shall be made on terms providing for the repayment of the principal at the end of a fixed period, with or without a provision allowing the authority to extend that period, and with a provision for repayment on the happening of a specified event before the end of that period or extended period, and on such other terms as the local authority may think fit, having regard to all the circumstances.

(5)While repayment of the principal of an advance made under this section is not required in accordance with the terms of the advance, the local authority may suspend, with respect to so much of any sum borrowed by them as is referable to the advance or with respect to any sum paid in respect of the advance out of their Consolidated Loans Fund, any periodical provision for repayment that may be required by any enactment or by any scheme (whether made under section 55 of the [1958 c. 55.] Local Government Act 1958 or under any local enactment) by which the Fund was established.

(6)The power conferred on a local authority by the preceding provisions of this section is without prejudice to any power to advance money exercisable by the authority under any other enactment; but where money is advanced by a local authority under section 43 of the [1958 c. 42.] Housing (Financial Provisions) Act 1958 for the acquisition of a house or the conversion into houses of any building, no money shall, in connection therewith, be advanced under this section for the alteration, enlargement, repair or improvement of that house or any of those houses.

(7)The local authorities for the purposes of this section are the councils of counties, boroughs, urban districts and rural districts and the Common Council of the City of London.