Housing and Regeneration Bill

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Housing and Regeneration Bill

Housing and Regeneration Bill
Part 1 — The Homes and Communities Agency
Chapter 3 — Financial provision
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(c)
guarantee or indemnity,
(d)
investment, or
(e)
incurring expenditure for the benefit of the person assisted.
(4)
Financial assistance under this section may be given on such terms and
conditions as the HCA considers appropriate (including provision for
5
repayment, with or without interest).
(5)
See also sections 35 to 38 (further provision about certain types of financial
assistance: social housing).
Borrowing powers of the HCA
23
Powers to borrow
10
(1)
The HCA may, for the purpose of what it considers to be the short-term
management of its finances, borrow from any person by way of overdraft or
otherwise.
(2)
Subject to this, the HCA may only borrow from the Secretary of State or the
European Investment Bank.
15
(3)
The HCA may not borrow in currencies other than sterling.
24
Loans by the Secretary of State
(1)
The Secretary of State may lend to the HCA any sums it has power to borrow
from the Secretary of State under section 23.
(2)
In respect of loans under subsection (1), the HCA must—
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(a)
repay the principal to the Secretary of State at such times, and in such
manner, as the Secretary of State may decide, and
(b)
pay interest to the Secretary of State at such times, and at such rates, as
may be so decided.
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Guarantees by the Secretary of State
25
(1)
The Secretary of State may guarantee—
(a)
the repayment of the principal of any sums which the HCA borrows
from a person other than the Secretary of State, and
(b)
the payment of interest on such sums.
(2)
Such a guarantee is to be in such manner, and on such terms and conditions, as
30
the Secretary of State considers appropriate.
(3)
The Secretary of State must lay a statement of any such guarantee before
Parliament immediately after giving the guarantee.
(4)
The Secretary of State must lay before Parliament a statement relating to any
sum issued for fulfilling such a guarantee.
35
(5)
A statement under subsection (4) must be laid as soon as possible after the end
of each financial year—
(a)
beginning with that in which the sum is issued, and
(b)
ending with that in which all liability in respect of the principal of the
sum guaranteed, and of interest on it, is finally discharged.
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Housing and Regeneration Bill
Part 1 — The Homes and Communities Agency
Chapter 3 — Financial provision
13

(6)
In respect of any sums issued in fulfilment of a guarantee given under this
section, the HCA must make payments to the Secretary of State—
(a)
of such amounts as the Secretary of State may direct in or towards
repayment of those sums, and
(b)
of interest on what is outstanding in respect of those sums, at such rates
5
as the Secretary of State may direct.
(7)
Payments under subsection (6) must be made at such times, and in such
manner, as the Secretary of State may direct.
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Financial limits
(1)
The current borrowings of the HCA must not exceed £2,300 million.
10
(2)
The Secretary of State may by order amend subsection (1) so as to specify a
greater amount than that for the time being specified there.
(3)
But an order under subsection (2) may not specify an amount of more than
£3,000 million.
(4)
In this section “current borrowings of the HCA” means—
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(a)
the aggregate amount at any time of sums borrowed by the HCA under
section 23, less
(b)
repayments made, or treated as made, in respect of those sums.
Other
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Power to charge for certain activities
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(1)
The HCA may impose charges for, or in connection with, anything done by it
by virtue of section 41, 42 or 47.
(2)
Any such charges must be of such amounts as the HCA considers to be
reasonable.
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Directions as to surplus funds
25
(1)
Subsection (2) applies if the Secretary of State considers that the HCA has a
surplus, whether on capital or on revenue account, after making allowance by
way of transfer to reserve or otherwise for its future requirements.
(2)
The Secretary of State may give a direction to the HCA to pay to the Secretary
of State such sum not exceeding the amount of the surplus as may be specified
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in the direction.
(3)
The Secretary of State must consult the HCA before coming to a decision of the
kind mentioned in subsection (1) or giving a direction as mentioned in
subsection (2).
(4)
The Secretary of State may decide to treat the whole or part of any payment
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under subsection (2) as made—
(a)
by way of repayment of such part of the principal of loans under section
24(1), and
(b)
in respect of the repayments due at such times,

as the Secretary of State may decide.
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Housing and Regeneration Bill
Part 1 — The Homes and Communities Agency
Chapter 4 — Other functions of the HCA
14

29
Duty to act as agent in respect of regeneration and development
(1)
The Secretary of State may appoint the HCA to act as the agent of the Secretary
of State in connection with such financial assistance functions as the Secretary
of State may specify.
(2)
In subsection (1) “financial assistance functions” means, so far as exercisable in
5
relation to England, functions under sections 126 to 128 of the Housing Grants,
Construction and Regeneration Act 1996 (c. 53) (financial assistance for
regeneration and development).
(3)
An appointment under this section is to be on such terms as the Secretary of
State may specify.
10
(4)
The HCA must, if appointed, act as agent in accordance with the terms of its
appointment.
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Duty to act as agent in respect of derelict land etc.
(1)
The Secretary of State may appoint the HCA to act as the agent of the Secretary
of State in connection with such derelict land functions as the Secretary of State
15
may specify.
(2)
In subsection (1) “derelict land functions” means functions under—
(a)
section 1 of the Derelict Land Act 1982 (c. 42) (grants for reclaiming or
improving land or bringing land into use), or
(b)
any enactment superseded by that section,
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but excluding the powers to make orders under section 1(5) and (7) of that Act.
(3)
An appointment under this section is to be on such terms as the Secretary of
State may specify.
(4)
The HCA must, if appointed, act as agent in accordance with the terms of its
appointment.
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Chapter 4
Other functions of the HCA
General
31
Business
(1)
The HCA may carry on any business.
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(2)
In subsection (1) “business” includes undertaking.
32
Powers to form companies etc.
The HCA may, with the consent of the Secretary of State, form, or acquire
interests in, bodies corporate.
33
Community services
35
(1)
The HCA may—

Housing and Regeneration Bill
Part 1 — The Homes and Communities Agency
Chapter 4 — Other functions of the HCA
15

(a)
encourage or develop existing or new businesses,
(b)
provide employment,
(c)
provide business or employment services,
(d)
provide safe and attractive environments,
(e)
prevent or reduce anti-social behaviour or crime,
5
(f)
reduce the fear of anti-social behaviour or crime,
(g)
provide—
(i)
transport services,
(ii)
health services,
(iii)
social, religious or recreational services, or
10
(iv)
cremation or burial services, or
(h)
provide other community services.
(2)
The HCA may facilitate anything falling within paragraphs (a) to (h) of
subsection (1).
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Sustainable development
15
(1)
The HCA may contribute to the achievement of sustainable development.
(2)
The HCA may facilitate any contribution to the achievement of sustainable
development.
Social housing
35
Duties in relation to low cost rental accommodation
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(1)
Subsection (2) applies if the HCA acquires, constructs or converts any housing
or other land for use as low cost rental accommodation.
(2)
The HCA must ensure that a relevant provider of low cost rental
accommodation is the landlord of the accommodation when it is made
available for rent.
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(3)
Subsection (4) applies if the HCA disposes of any housing or other land to a
person on condition that the person provides low cost rental accommodation
(whether in the same or different housing or other land).
(4)
The HCA must impose a further condition that a relevant provider of low cost
rental accommodation is the landlord of the accommodation when it is made
30
available for rent.
(5)
Subsection (6) applies if the HCA provides infrastructure to a person on
condition that the person provides low cost rental accommodation.
(6)
The HCA must impose a further condition ensuring that a relevant provider of
low cost rental accommodation is the landlord of the accommodation when it
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is made available for rent.
(7)
Subsection (8) applies if the HCA is proposing to give financial assistance on
condition that the recipient provides low cost rental accommodation.
(8)
The HCA must impose a further condition ensuring that a relevant provider of
low cost rental accommodation is the landlord of the accommodation when it
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is made available for rent.

Housing and Regeneration Bill
Part 1 — The Homes and Communities Agency
Chapter 4 — Other functions of the HCA
16

(9)
For the purposes of this section, a person provides low cost rental
accommodation if (and only if) the person acquires, constructs or converts any
housing or other land for use as low cost rental accommodation or ensures
such acquisition, construction or conversion by another.
(10)
In this section—
5
“English local housing authority” means a local housing authority (within
the meaning of section 1 of the Housing Act 1985 (c. 68)) but excluding
a Welsh county council or county borough council,
“low cost rental accommodation” has the meaning given by section 70,
“relevant provider of low cost rental accommodation” means a registered
10
provider of social housing, an English local housing authority, a county
council in England or a person controlled by an English local housing
authority or county council in England (and regulations under
subsections (5) and (6) of section 114 apply for the purposes of this
definition as they apply for the purposes of subsection (4) of that
15
section).
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Recovery etc. of social housing assistance
(1)
The HCA may, in such events as it may determine, exercise the powers
conferred by subsections (2) to (4) in relation to a person who has received
social housing assistance.
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(2)
The HCA may reduce any grant payable by it or restrict any other social
housing assistance due from it.
(3)
The HCA may suspend or cancel any instalment of any grant payable by it or
any aspect of any other social housing assistance due from it.
(4)
The HCA may direct the recipient of the social housing assistance to—
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(a)
apply or appropriate for such purposes as the HCA may specify, or
(b)
pay to the HCA,

such amount as the HCA may specify.
(5)
In exercising its powers under subsections (2) to (4) the HCA must act in
accordance with such principles as it has determined.
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(6)
A person who has received social housing assistance must notify the HCA if an
event of a kind determined by the HCA under subsection (1) occurs after the
assistance has been given.
(7)
Such a person must, if required by notice of the HCA, supply the HCA with
such particulars of, and information relating to, the event as are specified in the
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notice.
(8)
In this Part—
“social housing” has the same meaning as in Part 2,
“social housing assistance” means financial assistance given under section
22 on condition that the recipient provides social housing (whether by
40
itself or as part of a wider project);

and, for the purposes of this Part, a person provides social housing if (and only
if) the person acquires, constructs, converts, improves or repairs any housing
or other land for use as social housing or ensures such acquisition,
construction, conversion, improvement or repair by another.
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