Housing provided by housing associations

I am reading the detailed Public Funds guidance issued by UKBA, and have a question regarding Housing provided by housing associations. On page 11, it says that "If a person applies to a housing association following a referral by the local authority or housing authority you must consider this as recourse to public funds.", otherwise it not considered as claiming public funds.

Could anyone please explain me or, perhaps, give an example of what this "referral" means in such a context.

It is sometimes the case that a local authority Housing Department has nomination rights on some Housing Association properties. That is, the Housing Department can nominate someone on their waiting list to the Housing Association. Where that happens that would be classed as Public Funds.

However if someone applies direct to the Housing Association and gets allocated a property with no involvement of the Housing Department, that would not be classed as Public Funds.

Many thanks for your prompt reply, John!
I have asked this question, since some time ago I bought from a housing association a property advertised on open market. I contact them directly, but at some point I was also advised by an officer to check if I can add my name to Council's Housing Register, since it could increase my eligibility. Silly enough, I did follow this advice but this application was, of course, rejected on the basis of "no recourse to public funds" in my visa (I was not aware of such "public funds" issues at that time). In the same letter it stated also that if I still wish to apply for part-buy part-rent, I need to contact the housing association. What I did (already before that), and got finally approved for the purchase.

Am I right that this is not a "referral" in question, so it is to be considered as no recourse to public funds?

Given that you never actually got on to the council's Housing Waiting List, you cannot possibly have been nominated to the Housing Association, so there cannot be a problem.

Many thanks again for your clarifying comments, John!