We have identified General Fund land which is potentially suitable to build HRA units.
Section 123 of Local Government Act 1972 General Disposal Consent (England) 2003 permits ‘Disposal of land for less than best consideration’ to third parties if it can be shown this is for benefit of the area up to a maximum reduction of £2m.
So General Fund could, technically, dispose of land to a third party at below market value, then HRA acquire at a favourable price, though I'm sure this is not what was intended by the legislation.
Another possibility is agreeing a reduced valuation with Valuers which will probably require approval of the reasons and assumptions by Council’s Executive Committee.
Is anyone aware of a mechanism by which HRA can get General Fund land at below market value (like s123) ?
…our HRA has a borrowing cap and limited capital resources hence the question.
Thank you in advance.