asked the Secretary of State for the Environment whether he has yet determined the manner in which estimated income from a housing association project is to be calculated under the powers conferred on him by Section 29(6) of the Housing Act 1974: and, if so, what his determination is, and when it was promulgated.
The general arrangements for approval of housing association grant under Section 29 of the Housing Act 1974 were set out in DOE Circular 170/ 74—Welsh Office Circular 274 /74— which explained that a later circular would deal with the procedures for calculation and payment of grant. The manner in which estimated expenditure and estimated income will be calculated for the purposes of grant has now been determined, in accordance with Section 29(6), and proposals have been put to the representative bodies required to be consulted under subsection (8). When these consultations have been completed the further circular will be issued within the next few weeks. Estimated income will be based primarily on the fair rents recoverable or a comparable level where registration of fair rents for the dwelling is not appropriate. The circular will give additional guidance on the circumstances in which other income of the association will be taken into account.