Housing Associations Act 1985

[F1Relevant Authority’s] powers with respect to grants and loansE+W+S

79 Lending powers.E+W+S

[F2(1)The [F3Welsh Ministers] may lend to a registered social landlord or an unregistered self-build societyF4... 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 [F5Welsh Ministers] may lend to an individual for the purpose of enabling him to acquire from—

(a)the [F6Welsh Ministers], or

(b)[F7a 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 [F8Welsh Ministers].

[F9(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.E+W+S

(1)Where the [F10Welsh Ministers]—

(a)[F11make] a loan to an unregistered self-build society under section 79(1); and

(b)under a mortgage F12... entered into by the society to secure the loan [F13have] an interest as mortgagee or creditor in land belonging to the society,

[F14they may] F15. . . 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 [F16Welsh Ministers continue] to have such an interest in the land.

(3)Directions so given may be varied or revoked by subsequent directions F17... .

F18(3A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)[F19The 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.E+W

Where—

(a)a lease of a dwelling, granted otherwise than in pursuance of the provisions of Part V of the M1Housing 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 [F20Welsh Ministers have], in exercise of any of [F21their] 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.

82 Loans made under s. 2 of the Housing Act 1964.E+W+S

Schedule 7 (further powers of [F22Relevant 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 M2Housing Act 1964 and the loan has not been repaid.

83 Power to guarantee loans.E+W+S

[F23(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.]

[F24(3A)The aggregate amount outstanding in respect of—

(a)loans for [F25which 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 [F26by 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 [F27to 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 [F28as the Welsh Ministers may specify by order].]

[F29(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.]

84 [F30Agreements to indemnify certain lenders]E+W+S

(1)The [F31Welsh Ministers] may F32. . . 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 [F31Welsh Ministers] [F33bind 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 [F31Welsh 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 [F31Welsh Ministers] [F34are] treated as acquiring (for and in relation to the purposes of the mortgage) the benefit and burden of all preceding acts, omissions and events.

F35(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)[F36The 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, [F37the Financial Conduct Authority, the Prudential Regulation Authority] and such organisations representative of building societies and local authorities as [F38they 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 [F38they think] expedient.

F39(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

85 Meaning of “recognised body” and “relevant advance”.E+W

(1)The expressions “recognised body” and “relevant advance” in section 84 (agreements to indemnify certain lenders) shall be construed in accordance with the following provisions.

(2)A “recognised body” means a body specified, or of a class or description specified, in an order made by statutory instrument by the [F40Welsh Ministers] F41. . ..

(3)Before making such an order varying or revoking an order previously made, the [F40Welsh Ministers] shall give an opportunity for representations to be made on behalf of a recognised body which, if the order were made, would cease to be such a body.

(4)A “relevant advance” means an advance made to a person whose interest in the dwelling is or was acquired by virtue of a conveyance of the freehold or an assignment of a long lease, or a grant of a long lease by—

• a local authority,

• a new town corporation,

• [F42the Welsh Ministers so far as they are or were exercising functions in relation to property transferred (or to be transferred) to them as mentioned in section 36(1)(a)(i) to (iii) of the New Towns Act 1981,]

• an urban development corporation,

• F43. . .

• F44..., or

• a [F45registered social landlord].[F46 or an advance made to such a person by the [F40Welsh Ministers] if the conveyance, assignment or grant was made under section 90.]

(5)In subsection (4) “long lease” has the same meaning as in Part V of the M3Housing Act 1985 (the right to buy).

86 Agreements to indemnify building societies: Scotland.S

(1)[F47Scottish Homes] may, with the approval of the Secretary of State, enter into an agreement with a building society [F48or recognised body] under which [F47Scottish Homes] binds itself to indemnify the building society [F48or recognised body] in respect of—

(a)the whole or part of any outstanding indebtedness of a borrower; and

(b)loss or expense to the building society [F48or recognised body] resulting from the failure of the borrower duly to perform any obligation imposed on him by [F49a] heritable security.

(2)The agreement may also, where the borrower is made party to it, enable or require [F47Scottish Homes] in specified circumstances to take an assignation of the rights and liabilities of the building society [F50or recognised body] under the heritable security.

(3)Approval of the Secretary of State under subsection (1) may be given generally in relation to agreements which satisfy specified requirements, or in relation to individual agreements, and with or without conditions, as he thinks fit, and such approval may be withdrawn at any time on one month’s notice.

(4)Before issuing any general approval under subsection (1) the Secretary of State shall consult with such bodies as appear to him to be representative of islands and district councils, and of building societies, and also with [F47Scottish Homes] and with [F51the Financial Conduct Authority and the Prudential Regulation Authority].

F52(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F53(6)In this section, “recognised body” means a body designated, or of a class or description designated, in an order made under this subsection by statutory instrument by the Secretary of State with the consent of the Treasury.

(7)Before making an order under subsection (6) above varying or revoking an order previously so made, the Secretary of State shall give an opportunity for representations to be made on behalf of a recognised body which, if the order were made, would cease to be such a body.]

[F5487 Financial assistance with respect to formation, management, etc. of certain housing associations.E+W

[F55(1)The [F56Welsh Ministers] may give financial assistance to any person to facilitate the proper performance of the functions of registered social landlords or co-operative housing associations.]

(2)Assistance under this section may be in the form of grants, loans, guarantees or incurring expenditure for the benefit of the person assisted or in such other way as the [F57Welsh Ministers consider appropriate, except that they] may not, in giving any form of financial assistance [F58under this section], purchase loan or share capital in a company.

(3)With respect to financial assistance under this section, the following—

(a)the procedure to be followed in relation to applications for assistance,

(b)the circumstances in which assistance is or is not to be given,

(c)the method for calculating, and any limitations on, the amount of assistance, and

(d)the manner in which, and the time or times at which, assistance is to be given,

shall be such as may be specified by the [F59Welsh Ministers] F60... .

(4)In giving assistance under this section, the [F61Welsh Ministers] may provide that the assistance is conditional upon compliance by the person to whom the assistance is given with such conditions as [F62they] may specify.

(5)Where assistance under this section is given in the form of a grant, subsections (1), (2) and (7) to (9) of section 52 of the Housing Act 1988 (recovery, etc. of grants) shall apply as they apply in relation to a grant to which that section applies, but with the substitution, for any reference in those subsections to the [F63registered] [F64relevant housing association] to which the grant has been given, of a reference to the person to whom assistance is given under this section.

F65(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]