This section applies to any tenant of a publicly-funded house who, but for paragraph 1 of Schedule 5 to the Housing Act 1985 (no right to buy where landlord a charitable housing trust or housing association), would have the right to buy under Part V of the Housing Act 1985.
A house is publicly-funded for the purposes of subsection (1) above if a grant under section 50 above, or a grant under section 41 of the 1985 Act or any enactment replaced by that section, has been paid in respect of a project which included—
Where a registered housing association contracts for the acquisition of a house and, without taking the conveyance, grant or assignment, disposes of its interest at a discount to a tenant to whom this section applies, the provisions mentioned in subsection (4) below shall have effect as if the association first acquired the house and then disposed of it to the tenant.
The said provisions are—
section 4 of the 1985 Act (eligibility for registration);
section 8 of that Act (disposal of land by registered housing associations);
section 9 of that Act (consent of Corporation to disposals);
section 79(2) of that Act (power of Corporation to lend to person acquiring interest from registered housing association);
Schedule 2 to that Act (covenants for repayments of discount on early disposal and restricting disposal of houses in National Parks etc. ); and
section 130 of the Housing Act 1985 (reduction of discount on exercise of right to buy where previous discount given).