This section applies in relation to any house or block of flats specified in a notice under subsection (2) of section 84 above if—
The Secretary of State shall by order provide for the transfer of the house or block of flats from the housing action trust to the local housing authority.
The Secretary of State may also by order transfer from the housing action trust to the local housing authority so much as appears to the Secretary of State to be appropriate of any property belonging to or usually enjoyed with the house or, as the case may be, the block or any flat contained in it; and for this purpose " property " includes chattels of any description and rights and liabilities, whether arising by contract or otherwise.
A transfer of any house, block of flats or other property under this section shall be on such terms, including financial terms, as the Secretary of State thinks fit; and an order under this section may provide that, notwithstanding anything in section 141 of the Law of Property Act 1925 (rent and benefit of lessee's covenants to run with the reversion), any rent or other sum which—
shall continue to be recoverable by the housing action trust to the exclusion of the authority.
Without prejudice to the generality of subsection (4) above, the financial terms referred to in that subsection may include provision for payments to a local housing authority (as well as or instead of payments by a local housing authority); and the transfer from a housing action trust of any house, block of flats or other property by virtue of this section shall not be taken to give rise to any right to compensation.
In this section—
" block of flats " means a building containing two or more flats;
" common parts ", in relation to a building containing two or more flats, means any parts of the building which the tenants of the flats are entitled under the terms of their tenancies to use in common with each other;
" flat " and " house " have the meanings given by section 183 of the Housing Act 1985;
and any reference to a block of flats specified in a notice under section 84(2) above is a reference to a block in the case of which each flat which is let on ... a secure tenancy or an introductory tenancy is so specified.
For the purposes of subsection (6) above, a building which contains—
shall be treated as if it were two separate buildings, the one containing the flat or flats mentioned in paragraph (a) above and the other containing the flat or flats mentioned in paragraph (b) above and any common parts.