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Control on resale of affordable houses.
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9.—(1) In this section “purchaser” means a person to whom an affordable house is sold under this Part.
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(2) Where an affordable house is made available for sale in accordance with this Part, the sale of the house to the purchaser shall, subject to subsection (3), be subject to any terms and conditions that the housing authority may specify, including terms and conditions relating to:
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(a) notification of the housing authority by the purchaser of the proposed resale of the house;
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(b) the occupation of the house by the purchaser.
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(3) (a) The terms and conditions referred to in subsection (2) shall require, subject to paragraphs (c) and (d), that where an affordable house sold under this Part is resold by the purchaser before the expiration of 20 years from the date of sale to him or her, the purchaser shall pay to the housing authority an amount equal to a percentage of the proceeds of sale.
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(b) The percentage referred to in paragraph (a) is calculated in accordance with the following formula—
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where—
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(i) Y is the difference between the market value of the house at the date of sale to the purchaser and the price actually paid, and
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(ii) Z is the market value of the house at the date of sale to the purchaser.
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(c) The amount payable under paragraph (a) shall be reduced by 10 per cent in respect of each complete year after the 10th year during which the purchaser has been in occupation of the house as his or her normal place of residence.
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(d) Where the amount payable under paragraph (a) would reduce the proceeds of the sale (disregarding solicitor and estate agent's costs and fees) below the price actually paid, the amount payable shall be reduced to the extent necessary to avoid that result.
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(e) (i) In calculating the amount payable under paragraph (a), due allowance shall be made for any material improvements made by the purchaser, and any such allowance shall be deducted from the proceeds of sale before the amount so payable is calculated.
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(ii) In this paragraph “material improvements” means improvements made to the house (whether for the purpose of extending, enlarging, repairing or converting the house), but does not include decoration, or any improvements carried out on the land including the construction of a house.
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(4) Any moneys accruing to a housing authority arising out of the resale of an affordable house under this section shall be used by the housing authority for the provision of housing or for the improvement or refurbishment of existing housing.
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