Housing Subsidies Act 1967

JurisdictionUK Non-devolved
Citation1967 c. 29


Housing Subsidies Act 1967

1967 CHAPTER 29

An Act to make provision with respect to financial assistance towards the provision, acquisition or improvement of dwellings and the provision of hostels; and for connected purposes.

[10th May 1967]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

I Subsidies to Local Authorities, Etc.

Part I

Subsidies to Local Authorities, Etc.

New subsidies for approved dwellings

New subsidies for approved dwellings

S-1 New provisions for financial assistance towards provision of dwellings.

1 New provisions for financial assistance towards provision of dwellings.

(1) The provisions of this Part of this Act shall have effect with respect to assistance to local authorities and such other bodies as are mentioned in subsection (2) of this section (in this Part of this Act referred to as ‘recipient authorities’) towards the expenditure incurred by them in the provision of such new dwellings as, in accordance with the said subsection (2), are approved for the purposes of this Part of this Act by the Minister (in this Part of this Act referred to as ‘approved dwellings’); and exchequer subsidies under Part I of the Housing Act 1961 shall not be payable in respect of any dwelling falling within paragraph (a ) or (b ), or approved for the purposes of this Part of this Act by virtue of paragraph (c ) or (d ), of subsection (3) of this section.

(2) The new dwellings which may be approved for the purposes of this Part of this Act are new dwellings provided—

(a ) by a local authority in the exercise of their powers to provide housing accommodation; or

(b ) by a development corporation otherwise than in pursuance of such arrangements as are mentioned in paragraph (c ) of this subsection, or by the Commission for the New Towns; or

(c ) by a development corporation or housing association in pursuance of authorised arrangements made with a local authority, or by a housing association in pursuance of special arrangements made with the Minister,

and falling within one of the categories specified in subsection (3) of this section.

(3) The categories of new dwellings referred to in subsection (2) of this section are—

(a ) new dwellings provided as mentioned in paragraph (a ) or (b ) of the said subsection (2) in the case of which the formal resolution of the recipient authority accepting the tender or estimate for, or approving the cost or estimated cost of, their erection was passed on or after 25th November 1965;

(b ) new dwellings provided as mentioned in paragraph (c ) of the said subsection (2) in pursuance of arrangements made on or after 25th November 1965;

(c ) new dwellings which do not fall within paragraph (a ) of this subsection but which have been completed on or after 25th November 1965 and provided by a local authority in whose case the Minister is of opinion—

(i) that at that date, on the information which had by then been made available to the Minister, there was in their area an exceptional need for new dwellings owing to an exceptional need for slum clearance or an exceptional shortage of housing accommodation or both; and

(ii)that the number of new dwellings completed on or after that date in the case of which the formal resolution of the recipient authority such as is mentioned in paragraph (a ) of this subsection was passed before that date is such that, unless the dwellings are approved for the purposes of this Part of this Act, an unreasonable rate burden will have to be imposed or unreasonably high rents will have to be charged by the authority

(d ) new dwellings which do not fall within paragraph (a ) of this subsection but which have been completed on or after 25th November 1965 and provided by a local authority who are not such an authority as are mentioned in paragraph (c ) of this subsection in the course of a scheme of town development within the meaning of the Town Development Act 1952 carried out with the approval of the Minister for the purpose of relieving congestion or over-population in the area of another local authority who are such an authority as are so mentioned.

(4) For the purposes of this section—

(a ) a formal resolution passed on or after 25th November 1965 and accepting a tender or estimate shall be deemed to have been passed before that date if either the tender or estimate was submitted to the Minister for approval before that date or the Minister is satisfied that it replaced a tender or estimate so submitted and relating to substantially the same dwellings;

(b ) where, on approving any authorised arrangements made with a local authority on or after 25th November 1965, the Minister is satisfied that the substantial effect of those arrangements had been agreed between the parties before that date, those arrangements shall be deemed to have been made before that date; and

(c ) where a resolution passed before 25th November 1965 accepted a tender or estimate for the erection of any dwellings over a period of three years or more, then if, in accordance with the contract for their erection, the erection of some of them was not begun before 25th November 1966, the resolution, so far as it relates to those dwellings, shall be treated as having been passed after 25th November 1965.

(5) Any subsidy under any of sections 2, 4 to 8 and 10 of this Act shall be paid to the recipient authority by whom the dwelling or dwellings by reference to which the subsidy is payable were provided, except that in relation to a dwelling or dwellings provided by a development corporation or housing association in pursuance of authorised arrangements made with a local authority the subsidy shall be paid to the local authority, who shall pay to the development corporation or housing association by way of annual grant an amount not less than the subsidy.

Subsidies for aggregate approved cost of dwellings

Subsidies for aggregate approved cost of dwellings

S-2 Aggregate cost subsidies.

2 Aggregate cost subsidies.

(1) In the case of each recipient authority, in respect of the aggregate amount of the approved cost (determined in accordance with section 3 of this Act) of the approved dwellings provided by that authority which are completed in any one financial year, the Minister shall pay for each of the sixty years beginning with that financial year a subsidy of an amount calculated in accordance with the following provisions of this section.

(2) An amount equal to the aggregate amount aforesaid shall be assumed to have been raised by a loan repayable over a period of sixty years in equal half-yearly instalments of principal and interest combined, the first falling due six months after the loan was raised, and there shall be calculated the amount of such an instalment at a rate of interest specified by an order of the Minister made in respect of the financial year in which the dwellings were completed; and the amount of the subsidy shall be twice the amount by which the amount of such an instalment calculated at that rate exceeds what the amount of that instalment would have been if calculated at the rate of four per cent. per annum.

(3) The rate so specified shall be such as appears to the Minister, after consultation with such recipient authorities, or such bodies representative of recipient authorities, as appear to him to be appropriate, to be representative of the rates of interest paid on loans raised (including any sums borrowed by way of temporary loan) by recipient authorities in the financial year immediately preceding that in which the dwellings in question were completed; and different rates may be so specified in relation to different classes of recipient authority, and for that purpose the Greater London Council and the Commission for the New Towns may each either be treated as a class of recipient authorities or be included in any class of other recipient authorities.

(4) Where the recipient authority are a development corporation or housing association and the approved dwellings provided by that authority which have been completed in any one financial year include both—

(a ) dwellings provided in pursuance of authorised arrangements made with a local authority; and either

(b ) dwellings provided in pursuance of authorised arrangements made with another local authority; or

(c ) dwellings provided otherwise than in pursuance of such arrangements,

a separate subsidy shall be paid in respect of the aggregate cost of the dwellings provided as mentioned in each respectively of the paragraphs of this subsection.

(5) The power to make an order under this section shall be exercisable by statutory instrument, and no such order shall be made unless a draft thereof has been approved by a resolution of the Commons House of Parliament.

S-3 Ascertainment of approved cost of dwelling.

3 Ascertainment of approved cost of dwelling.

(1) Subject to the provisions of this section, the approved cost of any approved dwelling shall be taken for the purposes of this Part of this Act to be the cost incurred by the recipient authority in providing the dwelling (including so much of the cost of acquiring the site on which the dwelling is provided as is apportioned to that dwelling under subsection (6) of this section, irrespective of the date when or purpose for which any land comprised in that site was acquired by the authority).

(2) So much of the cost incurred as aforesaid as is attributable to the acquisition of any site shall be ascertained in accordance with Schedule 1 to this Act and subsection (6) of this section.

(3) The remainder of...

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