Paragraph 3
A local authority’s housing amount for any financial year other than that beginning on 1st April 1990 shall be–
if the housing component of the authority’s adjusted credit ceiling on the last day of the immediately preceding financial year is nil or is less than nil, nil; and
if the authority’s housing component is greater than nil an amount equal to the housing component less the amount, if any, by which the non-housing component of the authority’s adjusted credit ceiling on the last day of the immediately preceding financial year is less than nil, provided that the authority’s housing amount shall not thereby be less than nil;
and for the purposes of paragraph (b) above the authority’s non-housing component is the amount determined by the authority in accordance with paragraph 5 below.
In relation to a local authority’s housing amount for the financial year beginning on 1st April 1991, the housing component of the authority’s adjusted credit ceiling on 31st March 1991 shall, subject to sub-paragraph (4) below, be the amount by which the total of–
the housing component of the authority’s adjusted initial credit ceiling, and
the amount of any housing increase in the authority’s adjusted credit ceiling in the financial year beginning on 1st April 1990,
exceeds the amount of any housing reduction of the authority’s adjusted credit ceiling in that year, and if there is no such excess, the housing component of the authority’s adjusted credit ceiling on 31st March 1991 shall be nil, or, as the case may be, a negative amount.
In sub-paragraph (2) above, the reference to the housing component of the authority’s adjusted initial credit ceiling is a reference to the amount by which the authority’s total housing advances exceeds their total housing receipts determined in accordance with sub-paragraphs (a) and (b) respectively of paragraph 2 above, or if there is no such excess, nil or, as the case may be, a negative amount.
If, by virtue of paragraph 16(2) of Schedule 3 to the Act, a local authority’s minimum revenue provision for the financial year beginning on 1st April 1990 is nil, the housing component of the authority’s adjusted credit ceiling on 31st March 1991 shall be increased by the aggregate of the amounts, if any, which would have been set aside by the authority in that year by virtue of regulation 25(1)(b) and (2)(c) in respect of–
any advances which were made for the purpose of meeting expenditure which, if it had been charged on 1st April 1990 to a revenue account, would have been required, under Part VI of the Act, to be charged to their Housing Revenue Account or Housing Repairs Account; and
any transitional credit arrangements for any purpose for which, if expenditure had been incurred and charged to a revenue account on 1st April 1990, it would have been required, under Part VI of the Act, to be charged to their Housing Revenue Account or Housing Repairs Account; if the authority’s initial credit ceiling had been greater than nil.
In relation to a local authority’s housing amount for a financial year beginning on or after 1st April 1992 (referred to in this sub-paragraph and sub-paragraph (6) below as “the current year”), the housing component of the authority’s adjusted credit ceiling on the last day of the immediately preceding financial year (referred to in this sub-paragraph and sub-paragraph (6) below as “the preceding year”) shall, subject to sub-paragraph (6) below, be the amount by which the total of–
the housing component of the authority’s adjusted credit ceiling on the last day of the financial year beginning two years before the beginning of the current year, and
the amount of any housing increase in the authority’s adjusted credit ceiling in the preceding year,
exceeds the amount of any housing reduction of the authority’s adjusted credit ceiling in the preceding year, and if there is no such excess, the housing component of the authority’s adjusted credit ceiling on the last day of the preceding year shall be nil, or, as the case may be, a negative amount.
If, by virtue of paragraph 15(2) of Schedule 3 to the Act, a local authority’s minimum revenue provision for the preceding year is nil, the housing component of the authority’s adjusted credit ceiling on the last day of the preceding year shall be increased by the aggregate of the amounts, if any, which would have been set aside by the authority in the preceding year by virtue of regulation 26(1)(b) and (c) and (2)(c) in respect of–
any advances falling within paragraph (a) of sub-paragraph (4) above;
the housing use of any supplementary credit approvals; and
any transitional credit arrangements falling within paragraph (b) of sub-paragraph (4) above;
if the authority’s credit ceiling on the last day of the financial year beginning two years before the beginning of the current year had been greater than nil.