Housing Associations Act 1985 Part I Regulation of Housing Associations Introductory Meaning of “housing association” and related expressions. 1 1 In this Act “ housing association ” means a society, body of trustees or company— a which is established for the purpose of, or amongst whose objects or powers are included those of, providing, constructing, improving or managing, or facilitating or encouraging the construction or improvement of, housing accommodation, and b which does not trade for profit or whose constitution or rules prohibit the issue of capital with interest or dividend exceeding such rate as may be prescribed by the Treasury, whether with or without differentiation as between share and loan capital ; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 In this Act “ fully mutual ”, in relation to a housing association, means that the rules of the association— a restrict membership to persons who are tenants or prospective tenants of the association, and b preclude the granting or assignment of tenancies to persons other than members; and “ co-operative housing association ” means a fully mutual housing association which is a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014 (in this part referred to as “the 1965 Act”) . 3 In this Act “ self-build society ” means a housing association whose object is to provide, for sale to, or occupation by, its members, dwellings built or improved principally with the use of its members’ own labour. Meaning of “housing trust”. 2 In this Act “ housing trust ” means a corporation or body of persons which— a is required by the terms of its constituent instrument to use the whole of its funds, including any surplus which may arise from its operations, for the purpose of providing housing accommodation, or b is required by the terms of its constituent instrument to devote the whole, or substantially the whole, of its funds to charitable purposes and in fact uses the whole, or substantially the whole, of its funds for the purpose of providing housing accommodation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2A Meaning of “registered housing association”, “registered social landlord” etc. 2B In this Act, unless the context otherwise requires— “registered housing association” means a housing association registered in the register of social landlords maintained under section 20(1) of the Housing (Scotland) Act 2010 (asp 17) , “registered social landlord” has the same meaning as in Part I of the Housing Act 1996, and “unregistered”, in relation to a housing association, means not registered in the register of social landlords maintained under section 20(1) of the Housing (Scotland) Act 2010 (asp 17) . “unregistered”, in relation to a housing association, means— not registered as a provider of social housing under Part 2 of the Housing and Regeneration Act 2008, not registered as a social landlord under Part 1 of the Housing Act 1996, and not registered as a social landlord under Part 2 of the Housing (Scotland) Act 2010 (asp 17) . Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Disposal of land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Control of disposals by unregistered housing associations 9 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1A Subject to section 10, the consent of the relevant regulator is required for any disposition of grant-aided land (as defined in Schedule 1) by an unregistered housing association; and for this purpose “ the relevant regulator ” means,— a if the land is in England, the Regulator of Social Housing, and b if the land is in Wales, the Welsh Ministers. 2 Consent under this section may be so given— a generally to all housing associations or to a particular housing association or description of association; b in relation to particular land or in relation to a particular description of land; and may be given subject to conditions. 3 A disposition by a housing association which requires consent under this section is valid in favour of a person claiming under the association notwithstanding that that consent has not been given; and a person dealing with the association, or with a person claiming under the association, shall not be concerned to see or inquire whether any such consent has been given. This subsection has effect subject to section 12 (avoidance of certain dispositions of houses without consent). 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 For the purposes of this section “ disposition ” means sale, lease, mortgage, charge or any other disposal. 6 Consent under this section must be in writing. Dispositions excepted from s. 9. 10 1 A disposition by an unregistered housing association which is a charity is not within section 9 if by virtue of sections 117 to 121 and 124 of the Charities Act 2011 it cannot be made without an order of the court or the Charity Commission ; but before making an order in such a case the Charity Commission shall consult,— a in the case of dispositions of land in England, the Regulator of Social Housing, and b in the case of dispositions of land in Wales, the Welsh Ministers. 2 A letting ... by an unregistered housing association which is a housing trust, is not within section 9 if it is— a a letting of land under a secure tenancy, or b a letting of land under what would be a secure tenancy but for any of paragraphs 2 to 12 of Schedule 1 to the Housing Act 1985 or paragraphs 1 to 8 of Schedule 2 to the Housing (Scotland) Act 1987 (tenancies excepted from being secure tenancies for reasons other than that they are long leases) or c a letting of land under an assured tenancy or an assured agricultural occupancy, or d a letting of land in England or Wales under what would be an assured tenancy or an assured agricultural occupancy but for any of paragraphs 4 to 8 of Schedule 1 to the Housing Act 1988, ... e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . f a letting of land under a tenancy or licence that is an occupation contract, or g a letting of land under a tenancy or licence under what would be an occupation contract if notice had been given (see Schedule 2 to the Renting Homes (Wales) Act 2016 (anaw 1)), other than a long tenancy within the meaning of letting of the type described in paragraph 8 of that Schedule (meaning of long tenancies). 3 The grant by an unregistered housing association which does not satisfy the landlord condition in section 80 of the Housing Act 1985 (bodies which are capable of granting secure tenancies) of a lease for a term ending within the period of seven years and three months beginning on the date of the grant is not within section 9 unless— a there is conferred on the lessee (by the lease or otherwise) an option for renewal for a term which, together with the original term, would expire outside that period, or b the lease is granted wholly or partly in consideration of a fine. 4 In subsection (3) the expression “ lease ” includes an agreement for a lease and a licence to occupy, and the expressions “ grant ” and “ term ” shall be construed accordingly. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Avoidance of certain disposals of houses without consent. 12 A disposal of a house by a housing association made without the consent required by section 9 is void unless— a the disposal is to an individual (or to two or more individuals), and b the disposal does not extend to any other house. Control of payments to members, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15A Constitution, change of rules, amalgamation and dissolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Accounts and audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27A Inquiries into affairs of housing associations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Provision of services between the Corporations. 33A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Provision of land by county councils. 34 1 Where a housing association wishes to erect houses in England which in the opinion of the Secretary of State are required and the local housing authority in whose district the houses are proposed to be built are unwilling to acquire land with a view to selling or leasing it to the association, the county council, on the application of the association, may acquire land for that purpose. 2 For that purpose the county council may exercise all the powers of a local housing authority under Part II of the Housing Act 1985 (provision of housing) in regard to the acquisition and disposal of land; and the provisions of that Act as to the acquisition of land by local housing authorities for the purposes of that Part apply accordingly. Housing trusts: power to transfer housing to local housing authority. 35 1 A housing trust may— a sell or lease to the local housing authority the houses provided by the trust, or b make over to the authority the management of the houses. 2 So far as subsection (1) confers power to dispose of land— za it does not apply to private registered providers of social housing (on whom power to dispose of land is conferred by section 171 of the Housing and Regeneration Act 2008); a it does not apply to registered social landlords (on whom power to dispose of land is conferred by section 8 of the Housing Act 1996);. b it has effect subject to section 9 (dispositions requiring consent of Corporation ) where the housing trust is an unregistered housing association and the land is grant-aided land (as defined in Schedule 1); and c it has effect subject to sections 117 to 121 of the Charities Act 2011 (restrictions on dispositions of charity land) where the housing trust is a charity. Housing trusts: functions of Secretary of State with respect to legal proceedings. 36 1 If it appears to the Secretary of State— a that the institution of legal proceedings is requisite or desirable with respect to any property belonging to a housing trust, or b that the expediting of any such legal proceedings is requisite or desirable, he may certify the case to the Attorney-General who may institute legal proceedings or intervene in legal proceedings already instituted in such manner as he thinks proper in the circumstances. 2 Before preparing a scheme with reference to property belonging to a housing trust, the court or body which is responsible for making the scheme shall communicate with the Secretary of State and consider any recommendations made by him with reference to the proposed scheme. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36A Supplementary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Definitions relating to charities. 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Minor definitions. 39 In this Part— “ assured tenancy ” has, in England and Wales, the same meaning as in Part I of the Housing Act 1988 and, in Scotland, the same meaning as in Part II of the Housing (Scotland) Act 1988; “ assured agricultural occupancy ” has the same meaning as in Part I of the Housing Act 1988. “ mental disorder ” has the same meaning as in the Mental Health Act 1983 or the Mental Health (Scotland) Act 1984; “ occupation contract ” has the same meaning as in section 7 of the Renting Homes (Wales) Act 2016 (anaw 1); “ secure tenancy ” has the same meaning as in section 79 of the Housing Act 1985 or 44 of the Housing (Scotland) Act 1987 ; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Index of defined expressions: Part I. 40 The following Table shows provisions defining or explaining expressions used in this Part (other than provisions defining or explaining an expression used only in the same section or paragraph):— appropriate registrar (in relation to a society registered under the 1965 Act). section 37 assured agricultural occupancy section 39 assured tenancy section 39 bank section 106 charge (in relation to Scotland) section 106 charity section 38(a) committee (in relation to a society registered under the 1965 Act) section 37 compulsory disposal (in Schedule 2) paragraph 6 of that Schedule co-operative housing association section 1(2) co-opted member (in relation to the committee of a society registered under the 1965 Act) section 37 the Companies Act section 106 . . . . . . dissolved under the 1965 Act (in relation to a society registered under that Act) section 37 district (of a local housing authority) section 104(2) dwelling section 106 eligible for registration (in relation to a housing association) section 4 exempted disposal (in Schedule 2) paragraph 5 of that Schedule friendly society section 106 fully mutual (in relation to a housing association) section 1(2) hostel section 106 house section 106 housing activities section 106 housing association section 1(1) . . . . . . housing trust section 2 insurance company section 106 local housing authority section 104 member of family section 105 mental disorder section 39 mortgage (in relation to Scotland) section 106 occupation contract section 39 the 1965 Act section 37 register, registered, registration and unregistered (in relation to a housing association) section 3 registered charity section 38(b) registered social landlord section 2B relevant disposal (in Schedule 2) paragraph 4 of that Schedule . . . . . . secure tenancy section 39 shared ownership lease section 106 shared ownership agreement (in relation to Scotland) section 106 standard scale section 39 trustee savings bank section 106 unregistered (in relation to a housing association) section 2B Part II Housing Association Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Deficit grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Arrangements with local authorities Powers of local authorities to promote and assist housing associations: England and Wales. 58 1 A local authority may promote the formation or extension of a housing association. 2 A local authority may for the assistance of a housing association subscribe for share or loan capital of the association. 3 A local authority may make a loan to an unregistered self-build society for the purpose of enabling it to meet the whole or part of the expenditure incurred, or to be incurred by it, in carrying out its objects. 4 This section does not apply where the housing association is — a a private registered provider of social housing, or b a registered social landlord (for which corresponding provision is made by section 22 of the Housing Act 1996). Powers of local authorities to promote and assist housing associations: Scotland. 59 1 A local authority . . . may promote the formation or extension of or, subject to section 60 (assistance restricted to registered housing associations), assist a housing association whose objects include the erection, improvement or management of housing accommodation. 2 A local authority . . . may, with the consent of and subject to any regulations or conditions made or imposed by the Secretary of State, for the assistance of such an association— a make grants or loans to the association, b subscribe for share or loan capital of the association, or c guarantee or join in guaranteeing the payment of the principal of, and interest on, money borrowed by the association (including money borrowed by the issue of loan capital) or of interest on share capital issued by the association, on such terms and conditions as to rate of interest and repayment or otherwise and on such security as the local authority . . . think fit. 3 A term of an agreement for such a grant or loan is void if it purports to relate to the rent payable in respect of a house to which the agreement relates or the contributions payable towards the cost of maintaining such a house. 4 Regulations under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament. 5 Sections 6, 15, 320 and 329 of the Housing (Scotland) Act 1987 (general provisions with respect to housing functions of local authorities etc.) apply in relation to this section and section 61, as they apply in relation to the provisions of that Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Power of local housing authority to supply furniture to housing association tenants. 61 1 A local housing authority may sell, or supply under a hire-purchase agreement, furniture to the occupants of houses provided by a housing association under arrangements made with the authority, and may buy furniture for this purpose. 2 In this section “ hire-purchase agreement ” means a hire-purchase agreement or conditional sale agreement within the meaning of the Consumer Credit Act 1974. 3 This section does not apply where the housing association is — a a private registered provider of social housing, or b a registered social landlord (for which corresponding provision is made by section 22 of the Housing Act 1996). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Loans by Public Works Loan Commissioners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Local loans made by the Treasury : Scotland. 68 1 The Treasury may lend money to a registered housing association — a for the purpose of constructing or improving, or facilitating or encouraging the construction or improvement of, houses, b for the purchase of houses, and c for the purchase and development of land. 1A Any loan made under subsection (1) is a local loan for the purposes of section 3 of the National Loans Act 1968 (see Schedule 4 to that Act). 2 A loan for any of those purposes shall be secured with interest by a heritable security over— a the land in respect of which that purpose is to be carried out, and b such other land, if any, as may be offered as security for the loan; and the money lent shall not exceed three-quarters (or, if the payment of the principal of and interest on the loan is guaranteed by a local authority, nine-tenths) of the value, to be ascertained to the satisfaction of the Treasury , of the estate or interest in the land proposed to be burdened. 3 Loans may be made by instalments as the building of houses or other work on the land burdened under subsection (2) progresses (so, however, that the total loans do not at any time exceed the amount specified in that subsection); and the heritable security may be granted accordingly to secure such loans so to be made. 4 If the loan exceeds two-thirds of the value referred to in subsection (2), and is not guaranteed as to principal and interest by a local authority, the Treasury shall require, in addition to such a heritable security as is mentioned in that subsection, such further security as they may think fit. 5 Subject to subsection (6), the period for repayment of a loan under this section shall not exceed 40 years, and no money shall be lent on the security of any land unless the estate or interest proposed to be burdened is either ownership or a lease of which a period of not less than 50 years remains unexpired at the date of the loan. 6 Where a loan under this section is made for the purposes of carrying out a scheme for the provision of houses approved by the Secretary of State, the maximum period for the repayment of the loan is 50 instead of 40 years, and money may be lent on heritable security over a lease registered or recorded under the Registration of Leases (Scotland) Act 1857 of which a period of not less than ten years in excess of the period fixed for the repayment of the loan remains unexpired at the date of the loan. Miscellaneous Power to vary or terminate certain agreements with housing associations. 69 1 This section applies to agreements of the following descriptions— a an agreement for a loan to a housing association by the Housing Corporation under section 2 of the Housing Act 1964 (including such an agreement under which rights and obligations have been transferred to Housing for Wales and then to the Secretary of State ) ; under which rights and obligations have been transferred to the Regulator of Social Housing; b an agreement which continues in force under Part I of Schedule 4 (arrangements with local authority for the provision or improvement of housing); c an agreement to which Part II of Schedule 4 applies (subsidy agreements with local authorities); d an agreement which continues in force under Part III of Schedule 4 (special arrangements with the Secretary of State); e an agreement for a loan or grant to a housing association under section 58(2) or 59(2) (financial assistance by local authorities); f a scheme which continues in force under Part V of Schedule 5 (schemes for unification of grant conditions). g an agreement for a loan or grant to a registered housing association under section 24 of the Local Government Act 1988 (power to provide financial assistance for privately let housing accommodation). 2 If any person (other than the Secretary of State) who is a party to an agreement to which this section applies makes an application to the Secretary of State, he may, if he thinks fit, direct— a that the agreement shall have effect with such variations, determined by him or agreed by the parties, as may be specified in the direction, or b that the agreement shall be terminated. and where the Secretary of State is a party to such an agreement, he may agree that it shall have effect with any variations or that it shall be terminated. 2A In the case of an agreement under which rights and obligations have been transferred to Housing for Wales and then to the Secretary of State , the reference to a party to the agreement includes a reference to the Secretary of State . 2B In the case of an agreement under which rights and obligations have been transferred to the Regulator of Social Housing, the reference to a party to the agreement includes a reference to the Regulator of Social Housing. 3 No variation shall be directed under subsection (2) which would have the effect of including in an agreement a term— a limiting the aggregate amount of rents payable in respect of dwellings to which the agreement relates or contributions towards the cost of maintaining such dwellings, or b specifying a limit which the rent of a dwelling is not to exceed. This subsection does not extend to Scotland. 4 No variation shall be directed under subsection (2) which would have the effect of including in an agreement a term relating to the rent payable in respect of a house to which the agreement relates or contributions towards the cost of maintaining such a house. This subsection extends to Scotland only. Land subject to housing management agreement. 69A A housing association is not entitled to a grant under section 50 (housing association grant) or section 51 (revenue deficit grant) of the Housing Act 1988 in respect of land comprised in— a a management agreement within the meaning of the Housing Act 1985 (see sections 27(2) and 27B(4) of that Act: delegation of housing management functions by certain authorities), or b an agreement to which section 22 of the Housing (Scotland) Act 1987 applies (agreements for exercise by housing co-operatives of certain local authority housing functions). Continuation of arrangements under repealed enactments. 70 The provisions of Schedule 4 have effect in relation to certain arrangements affecting housing associations which continue in force despite the repeal of the enactments under or by reference to which they were made, as follows— Part I —Arrangements with local authorities for the provision or improvement of housing. Part II —Subsidy agreements with local authorities. Part III —Special arrangements with the Secretary of State in Scotland. Superseded contributions, subsidies and grants. 71 The provisions of Schedule 5 have effect with respect to superseded subsidies, contributions and grants, as follows— Part I —Residual subsidies: England and Wales. Part II —Residual subsidies: Scotland. Part III—Contributions and grants under arrangements with local authorities. Part IV—Contributions under arrangements with the Secretary of State in Scotland. Part V —Schemes for the unification of grant conditions. Part VI—New building subsidy and improvement subsidy. Part VII—Payments in respect of hostels under pre-1974 enactments. Supplementary provisions Minor definitions. 72 In this Part— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . “ registered charity ” has the same meaning as in Part I. Index of defined expressions: Part II. 73 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);— . . . . . . . . . . . . . . . . . . co-operative housing association section 1(2) dwelling section 106 fully mutual (in relation to a housing association) section 1(2) heritable security section 106 hostel section 106 . . . . . . house section 106 housing activities section 106 housing association section 1(1) . . . . . . . . . . . . local authority section 106 local housing authority section 104 . . . . . . . . . . . . registered charity section 72 registered housing association section 2B registered social landlord section 2B . . . . . . self-build society section 1(3) . . . . . . . . . . . . unregistered (in relation to a housing association) section 2B Part III The Housing Corporation Social Housing in Wales Functions of the Welsh Ministers and other general matters The Welsh Ministers 74 1 This Part has effect with respect to the Welsh Ministers. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 The functions in this Part exercisable by the Welsh Ministers may only be exercised in relation to Wales. General functions 75 1 The Welsh Ministers have the following general functions— 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e to undertake, to such extent as the Welsh 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. f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 The Welsh Ministers shall exercise their general functions subject to and in accordance with the provisions of this Act and Part I of the Housing Act 1996 . 3 Subsection (1) is without prejudice to specific functions conferred on the Welsh Ministers by or under this Act or Part I of the Housing Act 1996 . 4 The Welsh Ministers may do such things and enter into such transactions as are incidental to or conducive to the exercise of any of their functions, general or specific, under this Act or Part I of the Housing Act 1996 . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Directions by the Secretary of State. 76 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Realisation of value of Housing Corporation’s loans portfolio. 76A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Advisory service. 77 1 The Welsh Ministers may provide an advisory service for the purpose of giving advice on legal, architectural and other technical matters to registered 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 Welsh Ministers may make charges for the service. 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. Annual report. 78 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Relevant Authority’s powers with respect to grants and loans Lending powers. 79 1 The Welsh Ministers may lend to a registered social landlord or an unregistered self-build society ... 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 Welsh Ministers may lend to an individual for the purpose of enabling him to acquire from— a the Welsh Ministers , or b a 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 Welsh Ministers . 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. Security for loans to unregistered self-build societies. 80 1 Where the Welsh Ministers — a make a loan to an unregistered self-build society under section 79(1); and b under a mortgage ... entered into by the society to secure the loan have an interest as mortgagee or creditor in land belonging to the society, they may . . . 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 Welsh Ministers continue to have such an interest in the land. 3 Directions so given may be varied or revoked by subsequent directions ... . 3A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 The 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. Further advances in case of disposal on shared ownership lease. 81 Where— a a lease of a dwelling, granted otherwise than in pursuance of the provisions of Part V of the Housing 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 Welsh Ministers have , in exercise of any of their 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. Loans made under s. 2 of the Housing Act 1964. 82 Schedule 7 (further powers of Relevant 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 Housing Act 1964 and the loan has not been repaid. Power to guarantee loans. 83 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. 3A The aggregate amount outstanding in respect of— a loans for which 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 by 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 to 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 as the Welsh Ministers may specify by order . 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. Agreements to indemnify certain lenders 84 1 The Welsh Ministers may . . . 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 Welsh Ministers bind 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 Welsh 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 Welsh Ministers are treated as acquiring (for and in relation to the purposes of the mortgage) the benefit and burden of all preceding acts, omissions and events. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 The 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, the Financial Conduct Authority, the Prudential Regulation Authority and such organisations representative of building societies and local authorities as they 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 they think expedient. 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Meaning of “recognised body” and “relevant advance”. 85 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 Welsh Ministers . . .. 3 Before making such an order varying or revoking an order previously made, the Welsh 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, the 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, . . . ..., or a registered social landlord . or an advance made to such a person by the Welsh 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 Housing Act 1985 (the right to buy). Agreements to indemnify building societies: Scotland. 86 1 Scottish Homes may, with the approval of the Secretary of State, enter into an agreement with a building society or recognised body under which Scottish Homes binds itself to indemnify the building society or 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 or recognised body resulting from the failure of the borrower duly to perform any obligation imposed on him by a heritable security. 2 The agreement may also, where the borrower is made party to it, enable or require Scottish Homes in specified circumstances to take an assignation of the rights and liabilities of the building society or 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 Scottish Homes and with the Financial Conduct Authority and the Prudential Regulation Authority . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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. Financial assistance with respect to formation, management, etc. of certain housing associations. 87 1 The Welsh 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 Welsh Ministers consider appropriate, except that they may not, in giving any form of financial assistance under 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 Welsh Ministers ... . 4 In giving assistance under this section, the Welsh Ministers may provide that the assistance is conditional upon compliance by the person to whom the assistance is given with such conditions as they 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 registered relevant housing association to which the grant has been given, of a reference to the person to whom assistance is given under this section. 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Relevant Authority’s powers with respect to land and works Acquisition of land. 88 1 The Welsh Ministers may acquire land by agreement for the purpose of— a selling or leasing it to a registered social landlord or an unregistered self-build society, or b providing dwellings (for letting or for sale) or hostels, and the Welsh Ministers may acquire land compulsorily for any such purpose. 2 Land may be so acquired by the Welsh Ministers notwithstanding that it is not immediately required for any such purpose. 3 The Acquisition of Land Act 1981 applies to the compulsory purchase of land under this section. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Provision of dwellings or hostels and clearance, management and development of land. 89 1 The Welsh Ministers may provide or improve dwellings or hostels on land belonging to them . 2 The Welsh Ministers may clear land belonging to 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 Welsh Ministers may repair, maintain and insure buildings or works on land belonging to 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 Welsh Ministers may carry out such operations on, and do such other things in relation to, land belonging to them as appear to them to be conducive to facilitating the provision or improvement of dwellings or hostels on the land— a by the Welsh Ministers themselves , or b by a registered social landlord or unregistered self-build society. 5 In the exercise of their powers under subsection (4) the Welsh 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. Disposal of land. 90 1 The Welsh Ministers may dispose of land in respect of which they have not exercised their powers under section 89(1) (provision or improvement of dwellings or hostels) and on which they have not carried out any such development as is mentioned in section 89(5) (ancillary development) to a registered social landlord or an unregistered self-build society .... 2 The Welsh Ministers may dispose of land on which dwellings or hostels have been provided or improved in exercise of their powers under section 89 to— a registered social landlord , a local authority, a new town corporation , or Scottish Homes; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 The Welsh Ministers may sell or lease individual dwellings to persons for those persons to occupy. 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. 5 The Welsh Ministers may dispose of land which is not required for the purposes for which it was acquired. Protection of persons deriving title under transactions requiring consent. 91 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Relevant Authority’s finances Borrowing powers. 92 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Limit on borrowing. 93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Treasury guarantees of borrowing. 94 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Grants to the Housing Corporation. 95 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . General financial provisions. 96 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accounts and audit. 97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Acquisition of securities and control of subsidiaries Acquisition of securities and promotion of body corporate. 98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Control of subsidiaries. 99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supplementary provisions Scottish Special Housing Association may act as agents for Relevant Authority in Scotland. 100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Minor definitions. 101 In this Part— “ 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 section 1159 of the Companies Act 2006 . Index of defined expressions: Part III. 102 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):— building society section 101 . . . . . . co-operative housing association section 1 dwelling section 106 financial year section 101 heritable security section 106 highway (in relation to Scotland) section 101 hostel section 106 housing association section 1(1) local authority section 106 local housing authority section 104 new town corporation section 106 recognised body section 85(2) registered social landlord section 2B relevant advance section 85(4) self-build society section 1(3) subsidiary section 101 unregistered (in relation to a housing association) section 2B urban development corporation section 106 Part IV General Provisions General provisions Application to Isles of Scilly. 103 1 This Act applies to the Isles of Scilly subject to such exceptions, adaptations and modifications as the Secretary of State may by order direct. 2 An order shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament. Local housing authorities. 104 1 In this Act “ local housing authority ”— a in relation to England and Wales, has the meaning given by section 1 of the Housing Act 1985, and b in relation to Scotland, means a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 . 2 References in this Act to the district of a local housing authority— a in England and Wales shall be construed in accordance with section 2 of the Housing Act 1985, and b in Scotland are to the area of a council mentioned in subsection (1)(b) above . Members of a persons family 105 1 A person is a member of another's family if— a he is the spouse or civil partner of that person, or he and that person live together as husband and wife, or in a relationship which has the characteristics of the relationship between civil partners or b he is that person's parent, grandparent, child, grand- child, brother, sister, uncle, aunt, nephew or niece. 2 For the purposes of subsection (1)(b)— a a relationship by marriage or civil partnership shall be treated as a relation- ship by blood, b a relationship of the half-blood shall be treated as a relationship of the whole blood, c the stepchild of a person shall be treated as his child, and d an illegitimate child shall be treated as the legitimate child of his mother and reputed father. Minor definitions — general. 106 1 In the application of this Act in England and Wales— “ bank ” means— an institution authorised under the Banking Act 1987, or a company as to which the Secretary of State was satisfied immediately before the repeal of the Protection of Depositors Act 1963 that it ought to be treated as a banking company or discount company for the purposes of that Act; “ the Companies Act ” means the Companies Act 1985; “ dwelling ” means a building or part of a building occupied or intended to be occupied as a separate dwelling, together with any yard, garden, outhouses and appurtenances belonging to it or usually enjoyed with it; “ friendly society ” means a friendly society or branch of a friendly society registered under the Friendly Societies Act 1974 or earlier legislation; “ hostel ” means a building in which is provided for persons generally or for a class or classes of persons— residential accommodation otherwise than in separate and self-contained sets of premises, and either board or facilities for the preparation of food adequate to the needs of those persons, or both; “ house ” includes— any part of a building which is occupied or intended to be occupied as a separate dwelling; any yard, garden, outhouses and appurtenances belonging to the house or usually enjoyed with it; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . “ insurance company ” means an insurance company to which Part II of the Insurance Companies Act 1982 applies; “ local authority ” means a county, county borough, district, or London borough council, the Common Council of the City of London or the Council of the Isles of Scilly and in section 84(5) includes ... a joint authority established by Part IV of the Local Government Act 1985 , an economic prosperity board established under section 88 of the Local Democracy, Economic Development and Construction Act 2009 , a combined authority established under section 103 of that Act and a combined county authority established under section 9(1) of the Levelling-up and Regeneration Act 2023 ... and in section 85(4) includes such a joint authority such an economic prosperity board, such a combined authority, such a combined county authority, ... , a police and crime commissioner and the Mayor's Office for Policing and Crime ; “ new town corporation ” means the Commission for the New Towns or a development corporation within the meaning of the New Towns Act 1981; “ shared ownership lease ” means a lease— granted on payment of a premium calculated by reference to a percentage of the value of the house or dwelling or of the cost of providing it, or under which the tenant (or his personal representatives) will or may be entitled to a sum calculated by reference directly or indirectly to the value of the house or dwelling; “ trustee savings bank ” means a trustee savings bank registered under the Trustee Savings Bank Act 1981 or earlier legislation; “ urban development corporation ” means an urban development corporation established under Part XVI of the Local Government, Planning and Land Act 1980. 2 In the application of this Act in Scotland— “ bank ” has the same meaning as in subsection (1); “ charge ” includes a heritable security; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . “ dwelling ” means a house; “ friendly society ” has the same meaning as in subsection (1); “ heritable security ” means any security capable of being constituted over any land, or real right in land, by disposition of the land, or assignation of the real right, in security of any debt and of being recorded in the Register of Sasines or, as the case may be, registered in the Land Register of Scotland and which includes a security constituted by an ex facie absolute disposition or assignation or by a standard security; “ hostel ” means— in relation to a building provided or converted before 3rd January 1962, a building in which is provided, for persons generally or for any class or classes of persons, residential accommodation (otherwise than in separate and self-contained dwellings) and board, and in relation to a building provided or converted on or after that date, a building in which is provided for persons generally or for any class or classes of persons, residential accommodation (otherwise than in houses) and either board or common facilities for the preparation of adequate food to the needs of those persons, or both; “ house ” includes— any part of a building, being a part which is occupied or intended to be occupied as a separate dwelling, and in particular includes a flat, and includes also any yard, garden, outhouses and pertinents belonging to the house or usually enjoyed with it; “ housing activities ” has the same meaning as in subsection (1); “ insurance company ” has the same meaning as in subsection (1); “ local authority ” means a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 ; “ mortgage ” means a heritable security and “ mortgagee ” means a creditor in such a security; “ new town corporation ” means a development corporation within the meaning of the New Towns (Scotland) Act 1968; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . “ trustee savings bank ” has the same meaning as in subsection (1). 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Final provisions Short title, commencement and extent. 107 1 This Act may be cited as the Housing Associations Act 1985. 2 This Act comes into force on 1st April 1986. 3 The following provisions of this Act apply to England and Wales only— section 2, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 8(2) and (3), sections 11 and 12, section 17(4) , section 18, section 20, section 31, sections 34 to 36, section 38, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 58, section 67, section 69(3), section 81, sections 84 and 85, section 103, section 105, Schedules 2 and 3, In Schedule 4, Part I, In Schedule 5, Part I, paragraphs 1 and 2 of Part III and paragraph 1 of Part V. 4 The following provisions of this Act apply to Scotland only— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 15A section 59, section 66, section 68, section 69(4), section 86, In Schedule 4, Part III, In Schedule 5, Part II, paragraphs 3 and 4 of Part III, Part IV and Part VII. 5 This Act does not extend to Northern Ireland.