Housing Associations Act 1985

Part IIIE+W[F1 The Housing Corporation][F1Social Housing in Wales]

[F2Functions of the Welsh Ministers] and other general mattersE+W

74 The [F3Welsh Ministers]E+W

[F4(1)This Part has effect with respect to the Welsh Ministers.]

F5(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F7(4)The functions in this Part exercisable by the Welsh Ministers may only be exercised in relation to Wales.]

75 [F8General functions]E+W

(1)The [F9Welsh Ministers] [F10have] the following general functions—

[F11(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). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12

(e)to undertake, to such extent as the [F13Welsh 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.

F14(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F15(1A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F15(1B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)The [F16Welsh Ministers] shall exercise [F17their] general functions subject to and in accordance with the provisions of this Act [F18and Part I of the Housing Act 1996].

(3)Subsection (1) is without prejudice to specific functions conferred on the [F19Welsh Ministers] by or under this Act [F20or Part I of the Housing Act 1996].

(4)The [F21Welsh Ministers] may do such things and enter into such transactions as are incidental to or conducive to the exercise of any of [F22their] functions, general or specific, under this Act [F20or Part I of the Housing Act 1996].

F23(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F24(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2576 Directions by the Secretary of State.E+W+S

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

76A Realisation of value of Housing Corporation’s loans portfolio.E+W

F26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

77 Advisory service.E+W

(1)The [F27Welsh Ministers] may provide an advisory service for the purpose of giving advice on legal, architectural and other technical matters to [F28registered 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 [F29Welsh Ministers] may make charges for the service.

[F30(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.]

F3178 Annual report.E+W+S

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F32Relevant Authority’s] powers with respect to grants and loansE+W+S

79 Lending powers.E+W+S

[F33(1)The [F34Welsh Ministers] may lend to a registered social landlord or an unregistered self-build societyF35... 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 [F36Welsh Ministers] may lend to an individual for the purpose of enabling him to acquire from—

(a)the [F37Welsh Ministers], or

(b)[F38a 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 [F39Welsh Ministers].

[F40(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 [F41Welsh Ministers]—

(a)[F42make] a loan to an unregistered self-build society under section 79(1); and

(b)under a mortgage F43... entered into by the society to secure the loan [F44have] an interest as mortgagee or creditor in land belonging to the society,

[F45they may] F46. . . 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 [F47Welsh Ministers continue] to have such an interest in the land.

(3)Directions so given may be varied or revoked by subsequent directions F48... .

F49(3A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)[F50The 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 [F51Welsh Ministers have], in exercise of any of [F52their] 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 [F53Relevant 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

[F54(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.]

[F55(3A)The aggregate amount outstanding in respect of—

(a)loans for [F56which 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 [F57by 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 [F58to 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 [F59as the Welsh Ministers may specify by order].]

[F60(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 [F61Agreements to indemnify certain lenders]E+W+S

(1)The [F62Welsh Ministers] may F63. . . 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 [F62Welsh Ministers] [F64bind 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 [F62Welsh 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 [F62Welsh Ministers] [F65are] treated as acquiring (for and in relation to the purposes of the mortgage) the benefit and burden of all preceding acts, omissions and events.

F66(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)[F67The 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, [F68the Financial Conduct Authority, the Prudential Regulation Authority] and such organisations representative of building societies and local authorities as [F69they 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 [F69they think] expedient.

F70(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 [F71Welsh Ministers] F72. . ..

(3)Before making such an order varying or revoking an order previously made, the [F71Welsh 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,

• [F73the 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,

• F74. . .

• F75..., or

• a [F76registered social landlord].[F77 or an advance made to such a person by the [F71Welsh 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)[F78Scottish Homes] may, with the approval of the Secretary of State, enter into an agreement with a building society [F79or recognised body] under which [F78Scottish Homes] binds itself to indemnify the building society [F79or 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 [F79or recognised body] resulting from the failure of the borrower duly to perform any obligation imposed on him by [F80a] heritable security.

(2)The agreement may also, where the borrower is made party to it, enable or require [F78Scottish Homes] in specified circumstances to take an assignation of the rights and liabilities of the building society [F81or 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 [F78Scottish Homes] and with [F82the Financial Conduct Authority and the Prudential Regulation Authority].

F83(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F84(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.]

[F8587 Financial assistance with respect to formation, management, etc. of certain housing associations.E+W

[F86(1)The [F87Welsh 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 [F88Welsh Ministers consider appropriate, except that they] may not, in giving any form of financial assistance [F89under 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 [F90Welsh Ministers] F91... .

(4)In giving assistance under this section, the [F92Welsh Ministers] may provide that the assistance is conditional upon compliance by the person to whom the assistance is given with such conditions as [F93they] 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 [F94registered] [F95relevant housing association] to which the grant has been given, of a reference to the person to whom assistance is given under this section.

F96(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

[F97Relevant Authority’s] powers with respect to land and worksE+W+S

88 Acquisition of land.E+W

(1)The [F98Welsh Ministers] may acquire land by agreement for the purpose of—

(a)selling or leasing it to a [F99registered social landlord] or an unregistered self-build society, or

(b)providing dwellings (for letting or for sale) or hostels,

[F100and the Welsh Ministers may acquire land compulsorily for any such purpose.]

(2)Land may be so acquired by the [F101Welsh Ministers] notwithstanding that it is not immediately required for any such purpose.

[F102(3)The Acquisition of Land Act 1981 applies to the compulsory purchase of land under this section.]

F103(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F103(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

89 Provision of dwellings or hostels and clearance, management and development of land.E+W

(1)The [F104Welsh Ministers] may provide or improve dwellings or hostels on land belonging [F105to them].

(2)The [F104Welsh Ministers] may clear land belonging [F105to them] and carry out other work on the land to prepare it as a building site or estate, including—

(a)the laying out and construction of streets or roads and open spaces, and

(b)the provision of sewerage facilities and supplies of gas, electricity and water.

(3)The [F104Welsh Ministers] may repair, maintain and insure buildings or works on land belonging [F105to them], may generally deal in the proper course of management with such land and buildings or works on it, and may charge for the tenancy or occupation of such land, buildings or works.

(4)The [F104Welsh Ministers] may carry out such operations on, and do such other things in relation to, land belonging [F105to them] as appear [F105to them] to be conducive to facilitating the provision or improvement of dwellings or hostels on the land—

(a)by the [F104Welsh Ministers] [F106themselves], or

(b)by a [F107registered social landlord] or unregistered self-build society.

(5)In the exercise of [F108their] powers under subsection (4) the [F104Welsh Ministers] may carry out any development ancillary to or in connection with the provision of dwellings or hostels, including development which makes provision for buildings or land to be used for commercial, recreational or other non-domestic purposes.

90 Disposal of land.E+W

(1)The [F109Welsh Ministers] may dispose of land in respect of which [F110they have] not exercised [F111their powers] under section 89(1) (provision or improvement of dwellings or hostels) and on which [F110they have] not carried out any such development as is mentioned in section 89(5) [F112(ancillary development) to a registered social landlord or an unregistered self-build society F113....]

(2)The [F114Welsh Ministers] may dispose of land on which dwellings or hostels have been provided or improved in exercise of [F115their powers] under section 89 to—

• a [F116registered social landlord],

• a local authority,

• a new town corporation[F117, or

• Scottish Homes;

F118. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

[F119(3)The Welsh Ministers may sell or lease individual dwellings to persons for those persons to occupy.]

[F119(4)The Welsh Ministers may dispose of a building or land intended for use for commercial, recreational or other non-domestic purposes in respect of which development has been carried out by virtue of section 89.]

[F119(5)The Welsh Ministers may dispose of land which is not required for the purposes for which it was acquired.]

F12091 Protection of persons deriving title under transactions requiring consent.E+W+S

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The [F121Relevant Authority’s] financesE+W+S

F12092 Borrowing powers.E+W+S

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12093 Limit on borrowing.E+W+S

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12094 Treasury guarantees of borrowing.E+W+S

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12095 Grants to the Housing Corporation.E+W+S

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12096 General financial provisions.E+W+S

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12097 Accounts and audit.E+W+S

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Acquisition of securities and control of subsidiariesE+W

F12098 Acquisition of securities and promotion of body corporate.E+W+S

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12099 Control of subsidiaries.E+W+S

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary provisionsE+W+S

F122F120100 Scottish Special Housing Association may act as agents for Relevant Authority in Scotland.E+W+S

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

101 Minor definitions.E+W+S

In this Part—

• [F123“building society” means a building society within the meaning of the Building Societies Act 1986;]

• “financial year” means the period of 12 months ending with the 31st March;

• “highway”, in relation to Scotland, includes a public right of way;

• “subsidiary” has the meaning given by [F124section 1159 of the Companies Act 2006] .

102 Index of defined expressions: Part III.E+W

The following Table shows provisions defining or explaining expressions used in this Part (other than provisions defining or explaining an expression in the same section or paragraph):—

102 Index of defined expressions: Part III.S

The following Table shows provisions defining or explaining expressions used in this Part (other than provisions defining or explaining an expression in the same section or paragraph):—