Part 4: Social Housing in England Chapter 2: Vacant Higher Value Local Authority Housing Payments to Secretary of State by Local Housing Authorities Section 74: Reduction of payment by agreement
This section provides the Secretary of State with the power to make an agreement with a local authority which reduces the amount the local authority is required to pay under the determination (subsection (1)).  The agreement will contain terms and conditions specifying the amount of money to be retained and what the local authority must do with the retained money.  This approach is similar to that taken in relation to capital housing receipts under section 11(6) of the Local Government Act 2003.
	Subsection (3) requires that where an agreement is made with an authority outside Greater London, it must require the authority to ensure that one new affordable home (as defined in subsection (7)) is delivered for each of the authority's higher value vacant dwellings taken into account under the determination (see the definition of "old dwelling" in subsection (7)).
	Subsection (4) requires that when an agreement is made with a local authority in Greater London it must require the authority to provide two new affordable homes for each of the authority's higher value vacant dwellings taken into account under the determination.  However, subsection (5) provides for an exception to this requirement where the Greater London Authority (GLA) has agreed to ensure that some of those new affordable homes are provided.  For example, if the total number of new affordable homes required to be delivered is 10 and the GLA has agreed to ensure that 5 of those homes are delivered, the agreement need only require the authority to provide the other 5 new affordable homes. Subsection (6) enables the Secretary of State to create other exceptions to the requirement in subsections (3) or (4) for one or more local housing authorities. Subsection (9) enables the Secretary of State to amend the definition of "new affordable home" in subsection (7) by regulations. Regulations amending the definition of "new affordable home" are subject to the affirmative resolution procedure.
	A determination may be made in relation to one or more financial years (see section 72(3)) and so subsection (8) makes it clear that an agreement under this section may be made in relation to one, more or all of the financial years covered by a multi-year determination.  For example, if a determination is made which relates to three years, an agreement could be entered into to reduce a local authority's payment in respect of one, two or all three of those years in order for it to deliver more housing.  Where a multi-year determination is made and the Secretary of State enters into an agreement with a local authority in respect of its payment for one or more of those years, the "new affordable homes" which it is required to deliver because of subsection (3) or (4) of this section will be calculated by reference to the "old dwellings" which have been taken into account in the year (or years) of the determination to which the agreement relates.