§ Mr. Evennettasked the Secretary of State for the Environment what arrangement he proposes to make, following abolition, for dealing with housing association schemes originally funded by the Greater London council; and if he will make a statement.
§ Sir George YoungProposals for dealing with these schemes were set out in the October 1983 housing consultation paper, a copy of which was placed in the Library. Following consideration of the representations received, my right hon. Friend has decided that on abolition of the GLC, these proposals should be broadly maintained. Thus the councils of the London boroughs will become responsible for funding ex-GLC housing association schemes in their areas still in progress on abolition day. They will also assume responsibility for the GLC-funded schemes where work has been completed but where final grant payments are still under consideration by the Department. They will also become the lending authority for any completed schemes previously funded by the GLC but where new involvement by a lending authority is required, for example in respect of major repairs, including those GLC-financed schemes which up to 31 March 1968 received funds from the Housing Corporation.
The Housing Corporation normally looks to local authorities to fund housing associations in respect of schemes which were originally funded by local authorities but where further funding is now required. They have already announced that their funding of major repairs to a small number of schemes originally funded by the GLC will cease on 31 March 1986. They will, however, continue to fund certain re-improvements to ex-GLC schemes.
After abolition, loan repayments on completed housing association schemes which would have been made to the GLC will be paid to the London Residuary Body, who will be responsible for servicing the outstanding debt on such schemes.
The GLC has also funded housing association schemes of a London-wide significance, for example in providing for the single homeless. It will be for the London boroughs to decide either individually or collectively, in conjunction with the Housing Corporation, how best to continue this initiative.
In addition, the GLC are also at present providing rate fund contributions to offset revenue losses incurred by some housing associations. While we do not intend to make any special arrangements in respect of such funding, individual cases will be considered on their merits within the normal rules for revenue deficit grant.
The London boroughs have been invited to bid for housing investment programme allocations in respect of schemes hitherto funded by the GLC. They have been assured that the resources which would have been available to the GLC will after abolition be distributed amongst the boroughs.