1 Overview

1.1 Purpose

1.1.1 The need to establish a Disposal Proceeds Fund arises from section 24 of the Housing Act 1996. This chapter sets out the Requirements which must be followed in accounting for, using or repaying Disposal Proceeds as a result of the sale of a property under Right To Acquire, Social HomeBuy or Voluntary Purchase Grant.

These Requirements stem from the General Determination issued in 2008 covering the Disposal Proceeds Fund.  Follow the asterisk to go to the General Determination 2008.  

 

1.1.2 The DPF is different from the RCGF.  The RCGF is an account for holding / recycling Grant that has been Recovered from the proceeds of a sale.

1.1.3 The DPF is an account for holding the proceeds of a sale – not just the part of the proceeds that are Grant.

1.1.4 In addition, the Permitted Uses of the DPF are more limited than those of the RCGF.

1.1.5 To try to avoid confusion, this Guide uses different terms with RCGF & DPF for the amount of money the RSL receives from selling the property:

RCGF – Gross Sales Receipts & Net Sales Receipts
DPF – Gross Disposal Proceeds & Net Disposal Proceeds.

1.2 Context

1.2.1 Section 24 of the Housing Act 1996 requires RSLs to credit to a Disposal Proceeds Fund  (the Fund) the Net Disposal Proceeds of Right to Acquire  (RTA, defined in chapter RTA-1) Social Homebuy  (SHB, defined in chapter SHB) and Voluntary Purchase Grant  (VPG, defined in chapter VPG-1) sales. 

1.2.2 Net Disposal Proceeds comprise the Gross Disposal Proceeds less Eligible Deductions. 

1.3 Main Features of the Scheme

1.3.1 The main objective of the Fund is to provide replacement properties for social rent not Intermediate Rent), at no greater subsidy cost than properties provided through the National Affordable Housing Programme. 

1.3.2 RSLs report annually on how they have used the Fund  - see  section 5.2