ABSTRACT
Government subsidies to housing associations have predominantly been in the form of capital grants and residual loans. However, the framework established in 1974 also allowed the Housing Corporation to offer deficit subsidies for those schemes whose reckonable expenditure exceeded reckonable income. This was seen as necessary because rents were set not by the associations themselves, but by the independent county rent officer. It is important to realise that associations had to account for each scheme separately and this effectively prevented them from rent pooling.
