Section 424 — Housing Act 1985: The housing costs differential.

The housing costs differential. 424 1 A development corporation’s housing costs differential for a year of account is the amount by which their reckonable expenditure for that year exceeds their reckonable expenditure for the preceding year (and accordingly is nil or, as the case may be, a negative amount if the reckonable expenditure for the year is the same as or less than that for the preceding year).

2 A development corporation’s reckonable expenditure for a year is the aggregate of—

a so much of the expenditure incurred by the corporation in that year and falling to be debited to the corporation’s housing account as the Secretary of State may determine, and b so much of any other expenditure incurred by the corporation in that year, or treated as so incurred in accordance with a determination made by the Secretary of State, as the Secretary of State may determine to be taken into account for the purposes of housing subsidy.

3 A determination may be made for all development corporations or different determinations may be made for individual corporations; and a determination may be varied or revoked in relation to all or any of the corporations for which it was made.

4 Before making a determination for all development corporations the Secretary of State shall consult organisations appearing to him to be representative of development corporations .