On 18 May 2020, the Ministry of Housing Communities and Local Government (MHCLG) wrote to all social housing residents in England (residents).
The much trailed proposed changes to Category 6 (on-lending) were in the end not as extensive as anticipated: RPs can on-lend to group members fundamentally, as before, except if the lending is index linked. The whole Category 6 excludes subsidiaries of RPs with unregistered parents.
Category 8 has been varied so the exemption for charges to local authorities to enable the purchase, construction, conversion or refurbishment of unoccupied social housing does not apply when the funding is a loan from a local authority. This means that specific consent would be needed if an RP is borrowing money from a local authority for the purpose outlined above. This may well be an issue for RPs who currently obtain funding from local authorities.
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