Legalize / United Kingdom / Public General Act

Local Government and Housing Act 1989

Type Public General Act

Publication 1989-11-16

Last updated 2026-03-26

State In force

Department Statute Law Database

Source legislation.gov.uk

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Calculation of Housing Revenue Account subsidy.

80

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Agreements to exclude certain authorities or property

80B

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Negative amounts of subsidy payable to Welsh Ministers

80ZA

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Final decision on amount of Housing Revenue Account subsidy.

80A

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81

Residual debt subsidy for year 1989–90.

82

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Calculation of residual debt subsidy.

83

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Adjustment of housing subsidy for year 1989-90.

84

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Supplementary

Power to obtain information.

85

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Recoupment of subsidy in certain cases.

86

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Determinations and directions.

87

(1) A determination made or direction given by the Secretary of State under this Part—

(a) may make different provision for different cases or descriptions of cases, including different provision for different areas, for different local housing authorities or for different descriptions of local housing authorities;

(b) may be made before, during or after the end of the year to which it relates; and

(2) Before making a determination or giving a direction under this Part relating to all local housing authorities or any description of such authorities, the Secretary of State shall consult such representatives of local government and relevant professional bodies as appear to him to be appropriate; and, before making a determination or giving a direction relating to a particular local housing authority, he shall consult that authority.

(3) As soon as practicable after making a determination under this Part, the Secretary of State shall send a copy of the determination to the local housing authority or authorities to which it relates.

(4) References in this section to sending to a local housing authority a copy of a determination under this Part include references to using electronic communications for sending a copy of a determination to such address as may for the time being be notified to the Secretary of State by that authority for that purpose.

(5) For the purposes of this section a copy of a determination under this Part is also to be treated as sent to a local housing authority where—

(a) the Secretary of State and that authority have agreed to the authority instead having access to determinations on a web site;

(b) the determination is a determination to which that agreement applies;

(d) that authority is notified, in a manner for the time being agreed for the purpose between that authority and the Secretary of State, of—

(i) the publication of the determination on a web site;

(ii) the address of that web site; and

(iii) the place on that web site where the determination may be accessed, and how it may be accessed.

(6) A local housing authority which is no longer willing to accept electronic communications for the sending of copies of determinations under this Part, may withdraw a notification of an address given to the Secretary of State for the purposes of subsection (4) above and such a withdrawal shall take effect on a date specified by the authority being a date no less than one month after the date on which the authority informs the Secretary of State that it wants to withdraw the notification of the address given.

(7) A local housing authority which has entered into an agreement with the Secretary of State under paragraph (a) of subsection (5) above may revoke the agreement and such a revocation shall take effect on a date specified by the authority being a date no less than one month after the date on which the authority informs the Secretary of State that it wants to revoke the agreement.

Orders amending Part 6

87A

(1) The appropriate person may by order—

(a) amend, repeal or re-enact provisions of sections 74 to 76 and 78 of, and Schedule 4 to, this Act;

(b) provide for any such provisions—

(i) not to apply, whether at all or in cases specified by the order or to authorities so specified;

(ii) to apply, whether generally or in cases so specified or to authorities so specified, subject to modifications so specified.

(2) An order under this section may (in particular)—

(a) add items to, or remove items from, Part 1 or 2 of Schedule 4 to this Act, or vary items of those Parts;

(b) confer discretions, or expand, curtail or repeal discretions conferred, on the appropriate person or any other person;

(3) In subsection (2)(b) above “discretion” includes power to make a determination or give a direction.

(4) An order under this section may—

(a) contain such incidental, consequential, transitional or supplementary provisions (including provisions amending or repealing enactments), and such savings, as the appropriate person considers appropriate;

(b) make different provision for different cases or authorities.

(5) The power to make an order under this section is exercisable by statutory instrument.

(6) The Secretary of State shall not make an order under this section unless a draft of the order has been laid before, and approved by resolution of, each House of Parliament.

Construction and application of Part VI.

88

(1) In this Part—

(a) expressions which are used in Part XIII of the Housing Act 1985 (general financial provisions) have the same meaning as in that Part;

(aa) “the appropriate person” means—

(i) in relation to England, the Secretary of State, and

(ii) in relation to Wales, Welsh Ministers;

(b) references to a local housing authority’s Housing Revenue Account or Housing Repairs Account include, where the context so admits, references to the corresponding account kept by them under that Part;

(c) references to a revenue account of a local housing authority other than their Housing Revenue Account do not include references to a Housing Repairs Account; and

(d) references to proper practices shall be construed in accordance with section 21 of the Local Government Act 2003 ; and

(e) “electronic communication” means a communication transmitted (whether from one person to another, from one device to another or from a person to a device or vice versa)—

(i) by means of an electronic communications network; or

(ii) by other means but while in an electronic form;

(f) “address”, in relation to electronic communications, includes any number or address used for the purposes of such communications.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) ... This Part has effect for years beginning on or after 1st April 1990.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) Any consultation undertaken before the passing of this Act in connection with a determination proposed to be made under this Part shall be as effective, in relation to that determination, as if this Part had been in force at the time the consultation was undertaken.

Part VII — Renewal Areas

Declaration of renewal area.

89

(1) Where a local housing authority, upon consideration of a report containing particulars of the matters mentioned in subsection (3) below and of any other matters which the authority consider relevant, are satisfied—

(a) that the living conditions in an area within their district consisting primarily of housing accommodation are unsatisfactory, and

(b) that those conditions can most effectively be dealt with by declaring the area to be a renewal area,

then, subject to the following provisions of this Part, they may cause the area to be defined on a map and by resolution declare it to be a renewal area for the period specified in the declaration .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The matters referred to in subsection (1) above are—

(a) the living conditions in the area concerned;

(b) the ways in which those conditions may be improved (whether by the declaration of a renewal area or otherwise);

(c) the powers available to the authority (including powers available apart from this Act) if the area is declared to be a renewal area;

(d) the authority’s detailed proposals for the exercise of those powers during the period that the area will be a renewal area (if so declared);

(e) the cost of those proposals;

(f) the financial resources available, or likely to be available, to the authority (from whatever source) for implementing those proposals; and

(g) the representations (if any) made to the authority in relation to those proposals,

and the report shall contain a recommendation, with reasons, as to whether a renewal area should be declared and, if so, the period for which the area should be a renewal area.

(4) Subject to section 95 below, an area which is declared to be a renewal area shall be such an area—

(a) until the end of the period specified in the declaration, or

(b) if at any time during that period the local housing authority by resolution extend the period for which the area is to be a renewal area, until the end of the period specified in the resolution (unless further extended under this paragraph).

(5) In considering whether—

(a) to declare an area to be a renewal area, or

(b) to extend the period for which an area is to be a renewal area,

a local housing authority shall have regard to such guidance as may from time to time be given by the Secretary of State.

(6) Before exercising their power—

(a) to declare an area to be a renewal area, or

(b) to extend (or further extend) the period for which an area is to be a renewal area,

a local housing authority shall take the steps required by subsection (7) below.

(7) Those steps are such as appear to the authority best designed to secure—

(a) that the detailed proposals referred to in subsection (3)(d) above or, where the authority are considering the extension of the period for which an area is to be a renewal area, such of those proposals as remain to be implemented, are brought to the attention of persons residing or owning property in the area; and

(b) that those persons are informed of the name and address of the person to whom should be addressed inquiries and representations concerning those proposals.

(8) A resolution under subsection (1) or (4)(b) above has effect from the day on which it is passed and is a local land charge.

Conditions for declaration of renewal area.

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Renewal area: steps to be taken after declaration or extension

91

(1) As soon as may be after—

(a) declaring an area to be a renewal area; or

(b) extending (or further extending) the period for which an area is to be a renewal area,

a local housing authority shall take the steps required by subsection (2) below.

(2) Those steps are such as appear to the authority best designed to secure—

(a) that the resolution to which the declaration, or extension (or further extension) of the period, relates is brought to the attention of persons residing or owning property in the area; and

(b) that those persons are informed of the name and address of the person to whom should be addressed inquiries and representations concerning action to be taken with respect to the renewal area.

Duty to publish information.

92

(1) Where a local housing authority have declared an area to be a renewal area, they shall from time to time publish, in such manner as appears to them best designed to secure that the information is brought to the attention of persons residing or owning property in the area, information with respect to—

(a) the action they propose to take in relation to the area,

(b) the action they have taken in relation to the area, and

being such information as appears to them best designed to further the purpose for which the area was declared a renewal area.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General powers of local housing authority.

93

(1) Where a local housing authority have declared an area to be a renewal area, the authority may exercise the powers conferred by this section.

(2) For the purpose of securing or assisting in securing all or any of the objectives mentioned in subsection (3) below, the authority may acquire by agreement, or be authorised by the Secretary of State to acquire compulsorily, any land in the area on which there are premises consisting of or including housing accommodation or which forms part of the curtilage of any such premises; and the authority may provide housing accommodation on land acquired under this subsection.

(3) The objectives referred to in subsection (2) above are—

(a) the improvement or repair of the premises, either by the authority or by a person to whom they propose to dispose of the premises;

(b) the proper and effective management and use of the housing accommodation, either by the authority or by a person to whom they propose to dispose of the premises comprising the accommodation; and

(4) For the purpose of effecting or assisting the improvement of the amenities in the area, the authority may acquire by agreement, or be authorised by the Secretary of State to acquire compulsorily, any land in the area (including land which the authority propose to dispose of to another person who intends to effect or assist the improvement of those amenities).

(5) The authority may—

(a) carry out works (including works of demolition) on land owned by the authority in the area (whether or not that land was acquired under subsection(2) or subsection (4) above); ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

....

(6) The authority may enter into an agreement with a housing association or other person under which, in accordance with the terms of the agreement, ... the authority’s functions under subsection (5) above are to be exercisable by that association or other person.

(7) If after—

(a) the authority have entered into a contract for the acquisition of land under subsection (2) or subsection (4) above, or

(b) a compulsory purchase order authorising the acquisition of land under either of those subsections has been confirmed,

the renewal area concerned ceases to be such an area or the land is excluded from the area, the provisions of the subsection in question shall continue to apply as if the land continued to be in a renewal area.

(8) The powers conferred by this section are without prejudice to any power which a local housing authority may have under or by virtue of any other enactment.

Power to apply for orders extinguishing right to use vehicles on highway.

94

(1) A local housing authority who have declared a renewal area may exercise the powers of a local planning authority under sections 249 and 250 of the Town and Country Planning Act 1990 (extinguishment of right to use vehicles on certain highways) with respect to a highway in that area notwithstanding that they are not the local planning authority, but subject to the following provisions.

(2) The local housing authority shall not make an application under subsection (2) or subsection (6) of section 249 (application to Secretary of State to make or revoke order extinguishing right to use vehicles) except with the consent of the local planning authority.

(3) If the local housing authority are not also the highway authority, any such application made by them shall in the first place be sent to the highway authority who shall transmit it to the Secretary of State.

(4) Where an order under subsection (2) of section 249 (order extinguishing right to use vehicles) has been made on an application made by a local housing authority by virtue of this section, any compensation under subsection (1) of section 250 (compensation for loss of access to highway) is payable by them instead of by the local planning authority.

Exclusion of land from, or termination of, renewal area.

95

(1) Subject to subsection (2) below, a local housing authority may by resolution—

(a) exclude land from a renewal area; or

(b) declare that an area shall cease to be a renewal area;

and as soon as may be after passing such a resolution the authority shall take the steps required by subsection (5) below.

(2) Before exercising any power under subsection (1) above, an authority shall take such steps as appear to the authority best designed to secure—

(a) that the proposed exclusion or cessation, as the case may be, is brought to the attention of persons residing or owning property in the area; and

(b) that those persons are informed of the name and address of the person to whom should be addressed representations concerning the proposed exclusion or cessation.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) The authority shall take such . . . steps as appear to them best designed to secure that the resolution is brought to the attention of persons residing or owning property in the renewal area.

(6) A resolution under subsection (1) above has effect from the day on which it is passed.

(7) A resolution under subsection (1) above does not affect the continued operation of the provisions of this Part, or any other enactment relating to renewal areas, in relation to works begun before the date on which the exclusion or cessation takes effect; but the resolution does have effect with respect to works which have not been begun before that date, notwithstanding that expenditure in respect of the works has been approved before that date.

Contributions by the Secretary of State.

96

(1) The Secretary of State may pay contributions to local housing authorities towards such expenditure incurred by them under this Part as he may determine.

(2) The rate or rates of the contributions, the calculation of the expenditureto which they relate and the manner of their payment shall be such as may be determined by the Secretary of State with the consent of the Treasury; and any determination under this subsection or subsection (1) above may be made generally, or with respect to a particular local housing authority ordescription of authority, including a description framed by reference to authorities in a particular area.

(3) Contributions under this section shall be payable subject to such conditions as to records, certificates, audit or otherwise as the Secretary of State may, with the approval of the Treasury, impose.

(4) If, before the declaration of a renewal area, a local housing authority are satisfied that the rate of contributions which, in accordance with a determination under subsection (2) above, would otherwise be applicable to the authority will not be adequate, bearing in mind the action they propose to take with regard to the area, they may, before making the declaration, apply to the Secretary of State for contributions at a higher rate in respect of that area.

(5) An application under subsection (4) above shall be made in such form and shall contain such particulars as the Secretary of State may determine; and, if such an application is made, the authority shall not declare the area concerned to be a renewal area until the application is approved, refused or withdrawn.

(6) If an application under subsection (4) above is approved, the Secretary of State may pay contributions under subsection (1) above in respect of the area concerned at such higher rate as he may determine under subsection (2)above.

Powers of entry and penalty for obstruction.

97

(1) A person authorised by the local housing authority or the Secretary of State may at any reasonable time, on giving not less than seven days’ notice of his intention to the occupier, and to the owner if the owner is known, enter premises—

(a) for the purpose of survey and examination where it appears to the authority or the Secretary of State that survey or examination is necessary in order to determine whether any powers under this Part should be exercised;or

(b) for the purpose of survey or valuation where the authority are authorised by this Part to acquire the premises compulsorily.

(1A) A person may not be authorised by a local housing authority under subsection (1)(a) to enter and survey or value land in connection with a proposal to acquire an interest in or a right over land (but see section 172 of the Housing and Planning Act 2016).

(2) An authorisation for the purposes of this section—

(a) shall be in writing stating the particular purpose or purposes for which the entry is authorised; and

(b) shall, if so required, be produced for inspection by the occupier or anyone acting on his behalf.

(3) It is a summary offence intentionally to obstruct an officer of the local housing authority or of the Secretary of State, or a person authorised to enter premises under subsection (1) above, in the performance of anything which that officer, authority or person is by this Part required or authorised to do.

(4) A person who commits an offence under subsection (3) above is liable on conviction to a fine not exceeding level 3 on the standard scale.

(5) In this section “owner”, in relation to premises,—

(a) means a person (other than a mortgagee not in possession) who is for the time being entitled to dispose of the fee simple in the premises, whether in possession or reversion, and

(b) includes also a person holding or entitled to the rents and profits of the premises under a lease of which the unexpired term exceeds three years.

Part VIII of Housing Act 1985.

98

(1) The provisions of this Part have effect in place of Part VIII of the Housing Act 1985 (housing action areas and general improvement areas) and, accordingly, after the appointed day, a local housing authority shall no longer have power under that Part to declare an area a housing action area or a general improvement area.

(2) If, apart from this subsection, a general improvement area would remainin existence on the first anniversary of the appointed day, the area shall, by virtue of this section cease to be a general improvement area on that first anniversary.

(3) In any case where, immediately before the appointed day, the period for which a housing action area has effect exceeds two years, the duration of that area shall, by virtue of this section, be such that, subject to subsection (4) below, it ends on the first anniversary of the appointed day.

(4) Nothing in subsection (3) above affects the power of a local housing authority,—

(a) by resolution under section 250(1)(b) of the Housing Act 1985, to bring a housing action area to an end; or

(b) by resolution under section 251 of that Act, to extend, on one occasion only, the duration of a housing action area by a period of two years.

(5) In the application of section 245 of the Housing Act 1985 (contributions by Secretary of State towards expenditure of local housing authorities relating to environmental works in housing action areas) in relation to expenditure—

(a) which was incurred on or after 14th June 1989, and

(b) in respect of which no contribution under that section was paid before the appointed day,

for subsection (2) of that section there shall be substituted the following subsection—

(2) In the case of any expenditure, the contribution— (a) shall be equal to one-half of the amount of the expenditure; and (b) shall be payable in one sum or by two or more instalments, according as the Secretary of State may determine.

(6) In the application of section 259 of the Housing Act 1985 (contributions by Secretary of State towards expenditure of local housing authorities relating to general improvement areas) in relation to expenditure—

(a) which was incurred on or after 14th June 1989, and

(b) in respect of which no contribution under that section was paid before the appointed day,

for subsection (2) of that section there shall be substituted the following subsection—

(2) In the case of any expenditure, the contribution— (a) shall be equal to one-half of the amount of the expenditure; and (b) shall be payable in one sum or by two or more instalments, according as the Secretary of State may determine.

(7) In the preceding provisions of this section “the appointed day” means the day appointed for the coming into force of this section.

Directions and guidance.

99

Any power under this Part to give . . . guidance may be so exercised as to make different provision for different cases, different descriptions of cases and different areas and, in particular, with respect to different local housing authorities or descriptions of authority (including a description framed by reference to authorities in a particular area).

Interpretation of Part VII.

100

(1) In this Part, except where the context otherwise requires,—

“dwelling” means a building or part of a building occupied or intended to be occupied as a separate dwelling, together with any yard, garden, outhouses and appurtenances belonging to or usually enjoyed with it;

“house in multiple occupation” means a house in multiple occupation as defined by sections 254 to 259 of the Housing Act 2004, as they have effect for the purposes of Part 1 of that Act (that is, without the exclusions contained in Schedule 14 to that Act), but does not include any part of such a house which is occupied as a separate dwelling by persons who form a single household;

“housing accommodation” means dwellings, houses in multiple occupation and hostels;

“local housing authority” and any reference to the district of such an authority shall be construed in accordance with sections 1 and 2 of the Housing Act 1985.

(2) Part XVII of the Housing Act 1985 (compulsory purchase and land compensation) applies in relation to this Part as if it were contained in that Act.

Part VIII

Introductory

Grants for improvements and repairs.

101

(1) In accordance with this Part, grants are payable by local housingauthorities towards the cost of works required—

(a) for the improvement or repair of dwellings, houses in multiple occupationor the common parts of buildings containing one or more flats; and

(b) for the provision of dwellings or houses in multiple occupation by theconversion of a house or other building; and

(c) for the provision of facilities for disabled persons in dwellings and inthe common parts of buildings containing one or more flats.

(2) In this Part—

(a) a grant relating to the improvement or repair of a dwelling or to theprovision of dwellings by the conversion of a house or other building isreferred to as a “renovation grant”; and

(b) a grant relating to the improvement or repair of the common parts of abuilding is referred to as a “common parts grant”; and

(c) a grant for the provision of facilities for a disabled person in adwelling or in the common parts of a building containing one or more flats isreferred to as a “disabled facilities grant”; and

(d) a grant for the improvement or repair of a house in multiple occupationor for the provision of a house in multiple occupation by the conversion ofa house or other building is referred to as an “HMO grant”;

and in the following provisions of this Part the expression “grant”, without more, means any of these types of grant.

(3) No grant is payable under this Part if the person who would otherwisequalify as the applicant for the grant is—

(a) a local authority;

(b) a new town corporation;

(d) a housing action trust;

(e) the Development Board for Rural Wales;

(ea) a police authority established under section 3 of thePolice Act 1996;

(f) a joint authority established by Part IV of the LocalGovernment Act 1985;

(g) a residuary body established by Part VII of that Act; or

(h) an authority established under section 10(1) of that Act (waste disposal).

(4) Expressions used in paragraphs (a) to (d) of subsection (3) above have themeanings assigned by section 4 of the Housing Act 1985.

(5) The provisions of this Part have effect in place of the provisions of PartXV of the Housing Act 1985 (grants for works of improvement, repair andconversion), other than section 523 thereof (assistance for provision ofseparate service pipe for water supply), and, without prejudice to thegenerality of subsection (3) of section 195 below,—

(a) any application made under section 461 of that Act which has not beenapproved by the local housing authority before the day appointed under section195 below for the coming into force of this section shall be of no effect onand after that day; and

(b) any application under section 521 of that Act (schemes for grants forthermal insulation) in respect of which the applicant has not been notifiedbefore the day so appointed that he may proceed to execute works in accordancewith a scheme under that section shall be of no effect on and after that day.

Applications for grants.

102

(1) No grant shall be paid unless an application for it is made to the local housing authority concerned in accordance with the provisions of this Part andis approved by them.

(2) An application for a grant shall be in writing and shall specify thepremises to which it relates and contain—

(a) particulars of the works in respect of which the grant is sought (in thisPart referred to as “the relevant works”);

(b) unless the local housing authority otherwise direct in any particularcase, at least two estimates from different contractors of the cost ofcarrying out the relevant works;

(c) particulars of any preliminary or ancillary services and charges inrespect of the cost of which the grant is also sought; and

(d) such other particulars as may be prescribed.

(3) In this Part “preliminary or ancillary services and charges”, in relationto an application for a grant, means services and charges which—

(a) relate to the application and the preparation for and the carrying out ofworks; and

(b) are specified for the purposes of this subsection by the Secretary ofState.

(4) The Secretary of State may by regulations prescribe a form of applicationfor a grant and an application for a grant to which any such regulations applyshall not be validly made unless it is in the prescribed form.

Preliminary conditions

The age of the property.

103

(1) A local housing authority may not entertain an application for a grant,other than a disabled facilities grant, unless they are satisfied that, at thedate of the application, the dwelling, common parts or house or other buildingconcerned was provided not less than the relevant period before that date.

(2) In subsection (1) above—

(a) “provided” means provided by construction or conversion; and

(b) “the relevant period” means ten years or such other periodas the Secretary of State may by order provide.

The interest of the applicant in the property.

104

(1) Subject to subsection (4) and section 136 below, a local housing authoritymay not entertain an application for a grant, other than a common parts grant,unless they are satisfied that—

(a) the applicant has, or proposes to acquire, an owner’s interest in everyparcel of land on which the relevant works are to be carried out; or

(b) in the case of an application for a renovation grant (other than anapplication in respect of works required for the provision of one or moredwellings by the conversion of a house or other building), the applicant isa tenant of the dwelling (alone or jointly with others) but does not have, orpropose to acquire, an owner’s interest in the dwelling; or

(c) in the case of an application for a disabled facilities grant in respectof works to a dwelling, the applicant is a tenant of the dwelling (alone orjointly with others) but does not have, or propose to acquire, an owner’sinterest in the dwelling; or

(d) in the case of an application for a disabled facilities grant in respectof works to the common parts of a building containing one or more flats, theapplicant is a tenant of a flat in the building (alone or jointly with others)but does not have, or propose to acquire, such an owner’s interest as isreferred to in paragraph (a) above;

and references in this Part to an “owner’s application" or a “tenant’s application” shall be construed accordingly.

(2) In this Part “owner’s interest” means an interest which—

(a) is held by the applicant alone or jointly with others; and

(b) is either an estate in fee simple absolute in possession or a term ofyears absolute of which not less than five years remain unexpired at the dateof the application.

(3) Where a local housing authority entertain an owner’s application made bya person who proposes to acquire the necessary interest, they shall notapprove the application until they are satisfied that he has done so.

(4) In accordance with directions given by the Secretary of State, a localhousing authority may treat the condition in subsection (1)(a) above asfulfilled by a person who has, or proposes to acquire, an owner’s interest inonly part of the land concerned; and directions under this subsection may makedifferent provision with respect to different cases or descriptions of cases,including different provision for different areas.

(5) A local housing authority may not entertain a tenant’s applicationunless—

(a) the tenant is required by the terms of his tenancy to carry out therelevant works and his tenancy is not of a description excluded from thissubsection by an order made by the Secretary of State; or

(b) his tenancy is of a description specified for the purposes of thissubsection by an order made by the Secretary of State; or

Common parts grants: preliminary conditions.

105

(1) A local housing authority may not entertain an application for a commonparts grant unless they are satisfied—

(a) that, at the date of the application, at least the required proportion ofthe flats in the building concerned is occupied by occupying tenants; and

(b) that the application is either a landlord’s common parts application ora tenants’ common parts application.

(2) In this Part—

(a) an “occupying tenant”, in relation to a flat in a building, isa person—

(i) who has (alone or jointly with others) such an interest in the flat as ismentioned in any of paragraphs (b) to (e) of subsection (4) below; and

(ii) who occupies the flat as his only or main residence;

(b) a “landlord’s common parts application”, in relation to worksto the common parts of a building, is an application for a common parts grantmade by a person who—

(i) has (alone or jointly with others) such an interest in the building as ismentioned in paragraph (a) or paragraph (b) of subsection (4) below; and

(ii) has a duty or power to carry out the relevant works; and

(c) a “tenants’ common parts application”, in relation to works tothe common parts of a building, is an application for a common parts grantmade, subject to subsection (3) below, by at least three-quarters of theoccupying tenants of the building who, under their tenancies, have a duty tocarry out, or to make a contribution in respect of the carrying out of, someor all of the relevant works;

and in any case where a tenancy is held by two or more persons jointly,those persons shall be regarded as a single occupying tenant in deciding, forthe purposes of paragraph (c) above, whether the application is made by atleast three-quarters of the occupying tenants referred to in that paragraph.

(3) For the purposes of paragraph (c) of subsection (2) above, a tenant whosetenancy is of a description specified for the purpose of that paragraph by anorder made by the Secretary of State shall be treated as an occupying tenantfalling within that paragraph; and a person who falls within paragraph (b)(i)of that subsection and has a duty or power to carry out any of the relevantworks may also join in a tenants’ common parts application; and, where sucha person does join in an application, he is in this Part referred to as a “participating landlord".

(4) The interests referred to in subsection (2) above are as follows—

(a) an estate in fee simple absolute in possession;

(b) a term of years absolute of which not less than five years remainunexpired at the date of the application;

(c) a tenancy to which section 1 of the Landlord andTenant Act 1954 or Schedule 10 to this Act applies (long tenancies at lowrents);

(d) an assured tenancy, a protected tenancy, a secure tenancy, a protectedoccupancy or a statutory tenancy; and

(e) a tenancy which satisfies such conditions as may be prescribed by ordermade by the Secretary of State.

(5) The required proportion mentioned in subsection (1) above isthree-quarters or such other proportion as may be—

(a) prescribed for the purposes of this section by an order made by theSecretary of State; or

(b) approved by him, in relation to a particular case or description of case,on application made by the local housing authority concerned.

Certificate as to future occupation, etc.

106

(1) Subject to sections 126 and 136 below, a local housing authority may notentertain an application for a renovation grant or a disabled facilities grantunless it is accompanied by a certificate falling within one of subsections(2) to (5) below in respect of the dwelling, building or flat to which theapplication relates.

(2) A certificate under this subsection (an “owner-occupationcertificate") certifies—

(a) that the applicant has, or proposes to acquire, an owner’s interest in thedwelling or building; and

(b) that he, or a member of his family, intends to live in the dwelling or,as the case may be, a flat in the building as his (or that member’s) only ormain residence for a period of not less than twelve months beginning on thecertified date.

(3) A certificate under this subsection (a “tenant’s certificate")certifies—

(a) that the applicant is a tenant of the dwelling who falls within paragraph(a) or paragraph (b) of subsection (5) of section 104 above or that hisapplication is a tenant’s application for a disabled facilities grant; and

(b) that he or a member of his family intends to live in the dwelling or, asthe case may be, a flat in the building as his (or that member’s) only or mainresidence.

(4) A certificate under this subsection (a “certificate of intendedletting") certifies that the applicant has or proposes to acquire anowner’s interest in the dwelling or building and intends to or already has letthe dwelling or, as the case may be, one or more flats in the building as aresidence—

(a) to someone other than a member of his family; and

(b) for a period of not less than five years beginning on the certified date;and

(5) A certificate under this subsection (a “special certificate")certifies that the applicant has, or proposes to acquire, an owner’s interestin the dwelling or building and is an applicant of a class prescribed for thepurposes of this section.

(6) A local housing authority may not entertain a tenant’s applicationunless—

(a) it is also accompanied by a certificate of intended letting made by theperson who at the time of the application is the landlord under the tenancy;or

(b) they consider it unreasonable in the circumstances to seek such acertificate.

(7) A local housing authority may not entertain an application for an HMOgrant unless it is accompanied by a certificate that the applicant has orproposes to acquire an owner’s interest in the house in question andintends—

(a) to license the use of part of it as a residence as mentioned in paragraphs(a) to (c) of subsection (4) above, or

(b) to let part of it as a residence as mentioned in those paragraphs,

or has already so licensed or let part of it.

(8) A local housing authority may not entertain an application for a commonparts grant unless it is accompanied by a certificate signed by the applicantor, as the case may be, by each of the applicants which—

(a) specifies the interest of the applicant or, as the case may be, each ofthe applicants in the building or in each flat in the building; and

(b) certifies that the required proportion, within the meaning of section 105above, of the flats in the building is occupied by occupying tenants.

Restrictions on grant aid

Certain dwellings and works excluded from grant aid.

107

(1) In each of the cases in subsection (2) below, the local housing authoritymay not approve an application for a grant unless—

(a) it is an application which they are required to approve by virtue ofsection 112 below and completion of the relevant works is necessary to complywith a notice under section 189 of the Housing Act 1985 (repair notice requiring works to render premises fit for human habitation);or

(b) it is an application which they are required to approve by virtue ofsection 113 below.

(2) The cases referred to in subsection (1) above are as follows—

(a) if, in the case of an application in respect of a dwelling or house whichis not fit for human habitation, the local housing authority consider that thecarrying out of the relevant works will not be sufficient to cause thedwelling or house to be fit for human habitation;

(b) if or to the extent that the relevant works have been completed before thedate of service of the notice of refusal under section 116(1) below;

(c) if, within the period of three months beginning on the date of service ofthe notice of refusal, the authority intend to make a closing or demolitionorder relating to the dwelling, house or building under section 264 or section265 of the Housing Act 1985;

(d) if, within the period of twelve months beginning on the date of serviceof the notice of refusal, the authority intend to declare a clearance areaunder section 289 of the Housing Act 1985 for an area which includes thedwelling, house or building;

(e) if the dwelling, house or building is or forms part of a building of aclass designated under section 528 or section 559 of the Housing Act 1985(defective dwellings), the applicant is eligible for assistance under Part XVIof that Act in respect of a defective dwelling which is or forms part of thedwelling, house or building concerned and the relevant works are, within themeaning of that Part, work required to re-instate that defective dwelling; and

(f) if, in the case of an application for a common parts grant, the localhousing authority consider that the carrying out of the relevant works willnot be sufficient to cause the building to meet the requirements mentioned inparagraphs (a) to (e) of section 604(2) of the Housing Act 1985.

(3) Where a group repair scheme has been approved by the Secretary of State,a local housing authority may not approve an application for a grant in so faras it relates to works which will be carried out in pursuance of agreementsentered into, or to be entered into, in pursuance of the scheme.

(4) A local housing authority may not approve an application for a grant sofar as it relates to works which are of a description excluded from grant aidby directions made by the Secretary of State.

(5) Unless it is an application which they are required to approve by virtueof section 113 below, a local housing authority may not approve an applicationfor an HMO grant so far as it relates to works—

(a) which relate to means of escape from fire or other fire precautions; and

(b) which are required to be carried out under or by virtue of any enactment(whenever passed).

(6) If directions made by the Secretary of State under subsection (4) abovespecify a description of works for which grant aid is not to be availablewithout his consent, a local housing authority may not approve an applicationfor a grant, so far as it relates to works of that description, unless theSecretary of State has given his consent with respect to those works.

(7) Directions under subsection (4) above may be made with respect to localhousing authorities generally or to a particular local housing authority.

(8) The Secretary of State may give his consent for the purposes of subsection(6) above—

(a) with respect to local housing authorities generally or to a particularlocal housing authority; or

(b) with respect to applications generally or to a particular description ofapplications.

Restriction on grants for works already begun.

108

(1) Subject to subsections (2) and (3) below, a local housing authority maynot approve an application for a grant if the relevant works have beencommenced before the application is approved and shall serve a notice ofrefusal to that effect on the applicant.

(2) Subsection (1) above does not apply to—

(a) an application which the local housing authority are required to approveby virtue of section 112 below if completion of the relevant works isnecessary to comply with a notice under section 189 of the Housing Act 1985(repair notice requiring works to render premises fit for human habitation);or

(b) an application which the local housing authority are required to approveby virtue of section 113 below.

(3) Where the relevant works have not been completed, the authority concernedmay approve the application for a grant if they are satisfied that there weregood reasons for beginning the works before the application was approved.

(4) Where an authority decide to approve an application in accordance withsubsection (3) above—

(a) they may, with the consent of the applicant, treat the application asvaried so that the relevant works are limited to those that remain to becompleted at the date of the application; and

(b) in determining for the purposes of sections 112, 114 and 115 below thephysical condition of the dwelling, common parts or house or other buildingconcerned, they shall consider the condition of the premises at the date ofthe application.

Owner-occupiers and tenants.

109

(1) Where an application for a grant is accompanied by an owner-occupationcertificate, a tenant’s certificate or a special certificate, then, if thefinancial resources of the applicant exceed the applicable amount, the amountof any grant which may be paid shall be reduced from what it would otherwisehave been in accordance with regulations made by the Secretary of State withthe consent of the Treasury.

(2) For the purposes of this Part, the Secretary of State may by regulationsmade with the consent of the Treasury—

(a) make provision for the determination of the amount which is to be takento be the financial resources of an applicant for a grant; and

(b) make provision for the determination of the applicable amount referred toin subsection (1) above.

(3) Without prejudice to the generality of subsection (2) above, regulationsunder this section—

(a) may make provision for account to be taken of the income, assets, needsand outgoings not only of the applicant himself but also of his spouse, anyperson living with him or intending to live with him and any person on whomhe is dependent or who is dependent on him;

(b) may make provision for amounts specified in or determined under theregulations to be taken into account for particular purposes.

Landlords.

110

(1) Subject to section 126 below, this section applies—

(a) where an application for a grant is accompanied by a certificate ofintended letting with respect to a dwelling and is not a tenant’s application;and

(b) where an application for an HMO grant is accompanied by a certificateunder section 106(7) above; and

(d) where an application for a grant is a landlord’s common parts application.

(2) Subject to the following provisions of this section and to section 116(5)below, the amount of the grant (if any) shall be such as may be determined bythe local housing authority, having regard to—

(a) the cost of the relevant works;

(b) if the dwelling is currently let or subject to a statutory tenancy, theamount of the rent payable and of any increase which might reasonably beexpected in that rent to take account of the relevant works, when completed;

(c) if paragraph (b) above does not apply, the amount of the rent which mightreasonably be expected to be obtained on a letting of the dwelling on the openmarket under an assured tenancy (assuming that no premium is paid); and

(d) such other matters as the Secretary of State may direct.

(3) In considering the matters in paragraphs (b) and (c) of subsection (2)above, the local housing authority may seek and act upon the advice of rentofficers; and, for this purpose, in section 121 of the Housing Act 1988 (additional functions of rent officers) at the endof subsection (1) there shall be added the words “and applications to whichsection 110 of the Local Government and Housing Act 1989 applies".

(4) Where the applicant is a charity or the application is in respect of glebeland, the local housing authority shall also have regard—

(a) to any obligation or practice on the part of the applicant to letdwellings at a rent less than that which could be obtained on the open market;

(b) to any financial resources available to the applicant in addition to therent from the dwelling; and

(5) In the case of an application for an HMO grant, in subsections (2) and (4)above, any reference to rent shall be construed as a reference to theaggregate of the consideration under licences or lettings of the house inquestion and any reference to letting a dwelling shall be construedaccordingly.

(6) Where the application is for a grant in respect of the residence house ofan ecclesiastical benefice, paragraphs (b) and (c) of subsection (2) aboveshall not apply and the local housing authority shall also have regard—

(a) to any financial resources available to the applicant; and

(b) generally to the circumstances of the applicant.

(7) In a case where the application is a landlord’s common parts application,each of the dwellings in the building concerned shall be taken into accountunder paragraph (b) or paragraph (c) of subsection (2) above so as todetermine an aggregate rent for the purposes of that subsection.

Tenants’ common parts applications.

111

(1) This section applies where an application for a grant is a tenants’ commonparts application.

(2) The local housing authority shall decide how much of the cost of therelevant works is attributable to the applicants (in this section referred toas “the attributable cost”); and, for the purposes of thissection, the attributable cost is an amount equal to the proportion, referredto in subsection (3) below, of the cost of the relevant works.

(3) The proportion mentioned in subsection (2) above is as follows—

(a) where it can be ascertained, the proportion that the aggregate of each ofthe applicant’s respective liabilities to carry out or contribute to thecarrying out of the relevant works bears to the aggregate of all suchliabilities on the part of all persons (including the applicants) so liable;or

(b) where the proportion mentioned in paragraph (a) above cannot beascertained, the proportion that the number of applicants bears to the numberof persons (including the applicants) liable to carry out or contribute to thecarrying out of works to the building;

and in any case where the interest by virtue of which the liabilityreferred to in paragraph (b) above arises is held jointly by two or morepersons, those persons shall be regarded as a single person in deciding forthe purposes of that paragraph the number of persons so liable.

(4) The local housing authority shall then apportion the attributable cost toeach of the applicants—

(a) in a case where the attributable cost is calculated by reference to theproportion mentioned in paragraph (a) of subsection (3) above, according tothe proportion that his liabilities to carry out or contribute to the carryingout of the relevant works bears to the aggregate of the applicants’liabilities mentioned in that paragraph; or

(b) in a case where the attributable cost is calculated by reference to theproportion mentioned in paragraph (b) of that subsection, equally;and the amount of grant payable shall be the aggregate of the grants thatwould be payable to each of the applicants under section 109 above or, in thecase of a participating landlord, section 110 above if each of the applicantswas an individual applicant under section 109 above or, as the case may be,section 110 above in respect of his apportionment of the attributable costunder paragraph (a) or, as the case may be, paragraph (b) above.

Approvals, notification and payment

Duty to approve applications to render certain dwellings fit for humanhabitation.

112

(1) Subject to the preceding provisions of this Part, on receipt of anapplication for a renovation grant (other than an application in respect ofworks required for the provision of one or more dwellings by the conversionof a house or other building), the local housing authority shall determine,with respect to the dwelling, whether the dwelling is fit for humanhabitation.

(2) In any case where the local housing authority—

(a) determine under subsection (1) above that a dwelling is not fit for humanhabitation, and

(b) consider that completion of the relevant works will cause the dwelling tobe fit for human habitation, and

then, subject to subsections (4) and (5) below, they shall approve theapplication so far as it relates to that dwelling.

(3) If, in the case of any application, the local housing authority considerthat the relevant works include works for which assistance is available underPart XVI of the Housing Act 1985 (assistance for ownersof defective housing), they shall treat the application as if the relevantworks did not include those works.

(4) If, in the case of any application, other than one to which section 113or section 115(6) below applies, the local housing authority consider thatthe relevant works include works in addition to those which will cause thedwelling to be fit for human habitation (“the additional works"), theyshall treat the application—

(a) as an application under this section in so far as it relates to worksother than the additional works; and

(b) as an application under section 115 below in so far as it relates to theadditional works;

but, for the purposes of section 116 below and the subsequent provisionsof this Part, the two applications shall be treated as one application.

(5) A local housing authority shall not be under a duty under this section toapprove an application—

(a) which is accompanied by a certificate of intended letting and is not atenant’s application; or

(b) if they expect, within the period of twelve months beginning with the dateof receipt of the application, to prepare a group repair scheme in respect ofa building which includes or comprises the dwelling.

(6) Section 604 of the Housing Act 1985 (fitness for humanhabitation) applies for the purposes of this Part, as it applies for thepurposes of that Act.

(7) In deciding whether they are satisfied as mentioned in subsection (2)(c)above, the local housing authority shall have regard to any guidance givenunder section 604A of the Housing Act 1985 and, for that purpose, theauthority shall treat any guidance given in respect of the serving of a repairnotice under section 189(1) of that Act as guidance given in respect of thecompletion of the relevant works.

Duty to approve applications arising out of certain statutory notices.

113

(1) Subject to section 112(3) above and subsection (3) below, a local housingauthority shall approve an application falling within section 110(1) above (inthis section referred to as a “landlord’s application") if completion ofthe relevant works is necessary to comply with a notice or notices under oneor more of the following provisions—

(a) section 189 of the Housing Act 1985 (repair notice requiring works torender premises fit for human habitation);

(b) section 190 of that Act (repair notice in respect of premises in state ofdisrepair but not unfit); and

(2) Subject to section 112(3) above and subsection (3) below, a local housingauthority shall approve an application for a grant which is accompanied by anowner-occupation certificate (in this section referred to as an “owner-occupier’s application") if completion of the relevant works isnecessary to comply with a notice under section 190 of the Housing Act 1985.

(3) If, in the case of a landlord’s application or an owner-occupier’sapplication, the local housing authority consider that the relevant worksinclude works (“the additional works") in addition to those necessary tocomply with a notice under section 189, section 190 or section 352 of theHousing Act 1985, they shall treat the application—

(a) as an application to which this section applies in so far as it relatesto works other than the additional works; and

(b) as an application to which section 115 below applies in so far as itrelates to the additional works.

Approval of applications to provide certain facilities for the disabled.

114

(1) A local housing authority shall not approve an application for a disabledfacilities grant unless they are satisfied—

(a) that the relevant works are necessary and appropriate to meet the needsof the disabled occupant; and

(b) that it is reasonable and practicable to carry out the relevant works,having regard to the age and condition of the dwelling or building;

and, in considering the matters specified in paragraph (a) above, alocal housing authority in Englandshall consult the welfare authority.

(2) A local housing authority shall not approve an application for a disabledfacilities grant in respect of works to the common parts of a buildingcontaining one or more flats unless they are satisfied that the applicant hasa power or is under a duty to carry out the relevant works.

(3) Subject to the preceding provisions of this Part, a local housingauthority shall approve an application for a disabled facilities grant if therelevant works are for any one or more of the following purposes—

(a) facilitating access by the disabled occupant to and from the dwelling orthe building in which the dwelling or, as the case may be, flat is situated;

(b) facilitating access by the disabled occupant to a room used or usable asthe principal family room;

(c) facilitating access by the disabled occupant to, or providing for thedisabled occupant, a room used or usable for sleeping;

(d) facilitating access by the disabled occupant to, or providing for thedisabled occupant, a room in which there is a lavatory, bath, shower orwashhand basin or facilitating the use by the disabled occupant of such afacility;

(e) facilitating the preparation and cooking of food by the disabled occupant;

(f) improving any heating system in the dwelling to meet the needs of thedisabled occupant or, if there is no existing heating system in the dwellingor any such system is unsuitable for use by the disabled occupant, providinga heating system suitable to meet his needs;

(g) facilitating the use by the disabled occupant of a source of power, lightor heat by altering the position of one or more means of access to or controlof that source or by providing additional means of control; and

(h) facilitating access and movement by the disabled occupant around thedwelling in order to enable him to care for a person who is normally residentin the dwelling and is in need of such care.

(4) Subject to the preceding provisions of this Part, a local housingauthority may approve an application for a disabled facilities grant where therelevant works do not fall within subsection (3) above but are for the purposeof making the dwelling or building suitable for the accommodation, welfare oremployment of the disabled occupant.

(5) In this section “the disabled occupant” means the disabled person for whosebenefit it is proposed to carry out any of the relevant works.

(6) In this Part “disabled person” means—

(a) a person who is registered in pursuance of arrangements made under section29(1) of the National Assistance Act 1948 (handicappedpersons’ welfare); . . .

(b) any other person for whose welfare arrangements have been made under thatprovision or, in the opinion of the welfare authority, might be made under it. or

(7) For the purposes of this section, “welfare authority” means the council which is the localauthority for the purposes of the Local Authority SocialServices Act 1970 for the area in which the dwelling is situated.

Discretionary approval of certain applications.

115

(1) Subject to the preceding provisions of this Part, a local housingauthority may approve an application for a grant, other than a common partsgrant, in any case where—

(a) the relevant works go beyond or are other than those which will cause thedwelling to be fit for human habitation, but

(b) the authority are satisfied that the relevant works are necessary for oneor more of the purposes set out in subsection (3) below.

(2) Subject to the preceding provisions of this Part, a local housingauthority may approve an application for a common parts grant if the authorityare satisfied that the relevant works—

(a) are necessary for one or more of the purposes set out in paragraphs (a)and (c) to (g) of subsection (3) below; or

(b) will cause the building to meet the requirements mentioned in paragraphs(a) to (e) of section 604(2) of the Housing Act 1985.

(3) The purposes referred to in subsection (1) above are—

(a) to put the dwelling or building in reasonable repair;

(b) to provide the dwelling by the conversion of a house or other building;

(d) to provide adequate facilities for space heating;

(e) to provide satisfactory internal arrangements;

(f) to ensure that the dwelling or building complies with such requirementswith respect to construction or physical condition as may for the time beingbe specified by the Secretary of State for the purposes of this section; and

(g) to ensure that there is compliance with such requirements with respect tothe provision or condition of services and amenities to or within the dwellingor building as may for the time being be so specified.

(4) In the case of an application for an HMO grant, any reference insubsections (1) and (3) above to the dwelling shall be construed as areference to the house.

(5) In considering whether to approve an application for a grant in exerciseof their discretion under subsection (1) or subsection (2) above, the localhousing authority shall have regard to the expected life of the building(taking account, where appropriate, of the effect of carrying out the relevantworks).

(6) Subject to the preceding provisions of this Part, a local housingauthority may approve an application falling within section 110(1) above (inthis section referred to as a “landlord’s application") if—

(a) the relevant works are for the purpose of rendering the dwelling or houseto which the application relates fit for human habitation, or

(b) in the case of an application for an HMO grant, the relevant works are forthe purpose of enabling the house in question to meet one or more of therequirements in subsection (1A) of section 352 of the Housing Act 1985,

and (in either case) the authority are satisfied that the relevant worksare necessary for the purpose concerned.

(7) If in the opinion of the local housing authority the relevant works aremore or less extensive than is necessary to achieve the result referred to inparagraph (b) of subsection (2) above or any of the purposes set out insubsection (3) above or, as the case may be, the purpose falling withinsubsection (6) above, the authority may, with the consent of the applicant,treat the application as varied so that the relevant works are limited to or,as the case may be, include such works as seem to the authority to benecessary for that purpose.

(8) In determining what is “reasonable repair”, in relation to a dwelling or buildingfor the purposes of subsection (3)(a) above, a local housing authority—

(a) shall have regard to the age and character of the dwelling or building andthe locality in which it is situated; and

(b) shall disregard the state of internal decorative repair.

(9) In the exercise of the powers conferred by paragraphs (f) and (g) ofsubsection (3) above, the Secretary of State—

(a) may specify requirements generally or for particular cases; and

(b) may specify different requirements for different areas.

Approval and refusal of applications.

116

(1) A local housing authority shall, by notice in writing, notify an applicantfor a grant as soon as reasonably practicable, and, in any event, not laterthan six months after the date of the application concerned, whether theapplication is approved or refused.

(2) Where an authority decide to approve an application for a grant, theyshall determine—

(a) which of the relevant works, taking into account any variation of theapplication under section 108(4)(a) or section 115(7) above, are eligible forgrant (in this Part referred to as “the eligible works”);

(b) the amount of the expenses which in their opinion are properly to beincurred in the execution of the eligible works;

(c) the amount of the costs which in their opinion have been or are to beproperly incurred with respect to preliminary or ancillary services andcharges; and

(d) the amount of grant they have decided to pay in respect of the eligibleworks, taking into account paragraphs (b) and (c) above, subsection (5) belowand such of sections 109 to 115 above as may be applicable;

and shall specify in the notice under subsection (1) above the eligibleworks, the total of the amounts referred to in paragraphs (b) and (c) above(in this Part referred to as “the estimated expense”) and the amount of the grant.

(3) Where an application for a grant is approved, then, except—

(a) with the consent of the Secretary of State, or

(b) as provided by section 118(1) below,

the local housing authority may not impose any condition in relation tothe approval or making of the grant, whether purporting to operate by way ofa condition of the grant, a personal covenant or otherwise; and the consentof the Secretary of State under paragraph (a) above may be given eithergenerally or in relation to any one or more specified authorities.

(4) If, after an application for a grant has been approved, the authority aresatisfied that, owing to circumstances beyond the control of the applicant,—

(a) the eligible works cannot be, or could not have been, carried out on thebasis of the amount of expenses referred to in subsection (2)(b) above, or

(b) the eligible works cannot be, or could not have been, carried out withoutcarrying out additional works which could not have been reasonably foreseenat the time the application was made,

the authority may re-determine the estimated expense and, subject tosubsection (5) below, the amount of the grant.

(5) The Secretary of State may, if he thinks fit, by order prescribe a maximumamount, or a formula for calculating a maximum amount, of grant which a localhousing authority may pay in respect of an application for a grant; and anauthority may not pay any grant in excess of that amount.

Payment of grants.

117

(1) Where the local housing authority have approved an application for agrant, they shall pay the grant, subject to subsection (3) below and tosections 133 and 134 below.

(2) The grant may be paid—

(a) in whole after the completion of the eligible works, or

(b) in part by instalments as the works progress and the balance aftercompletion of the works.

(3) The payment of a grant, or part of a grant, is conditional upon—

(a) the eligible works or the corresponding part of the works being executedto the satisfaction of the authority; and

(b) the authority being provided with an acceptable invoice, demand or receiptfor payment for the works and any preliminary or ancillary services andcharges in respect of which the grant or part of the grant is to be paid.

(4) For the purposes of subsection (3) above an invoice, demand or receipt isacceptable if it satisfies the authority and is not given by the applicant ora member of his family.

(5) Where a grant is paid by instalments, the aggregate of the instalmentspaid before the completion of the eligible works shall not at any time exceednine-tenths of the amount of the grant.

Conditions of grants and repayments

Conditions as to completion of works.

118

(1) In approving an application for a grant, a local housing authority mayrequire as a condition of the grant that the eligible works are carried outin accordance with such specification as they determine.

(2) Subject to subsection (3) below, it is a condition of the grant that theeligible works are carried out within twelve months from the date of approvalof the application concerned.

(3) The authority may, if they think fit, extend the period of twelve monthsreferred to in subsection (2) above and may, in particular, do so where theyare satisfied that the eligible works cannot be, or could not have been,carried out without carrying out other works which could not have beenreasonably foreseen at the time the application was made.

Condition as to availability for letting.

119

(1) This section applies where an application for a renovation grant or adisabled facilities grant, other than an application for a disabled facilitiesgrant in respect of works to the common parts of a building containing flats,has been approved by a local housing authority and the application for thegrant was accompanied by a certificate of intended letting.

(2) It is a condition of the grant that throughout the initial period—

(a) the dwelling will be let or available for letting as a residence, and notfor a holiday, on a tenancy which is not a long tenancy by the owner for thetime being of the dwelling to a person who is not connected with him, or

(b) the dwelling will be occupied or available for occupation by a member ofthe agricultural population in pursuance of a contract of service andotherwise than as a tenant,

disregarding any part of that period in which neither of the aboveparagraphs applies but the dwelling is occupied by a person who is a protectedoccupier under the Rent (Agriculture) Act 1976 or isoccupied under an assured agricultural occupancy, within the meaning of PartI of the Housing Act 1988.

(3) For the purposes of subsection (2) above, a person is connected with theowner for the time being of a dwelling if,—

(a) in a case where personal representatives or trustees are the owner, he isa person who under the will or intestacy or, as the case may be, under theterms of the trust concerned is beneficially entitled to an interest in thedwelling or to the proceeds of sale of the dwelling; and

(b) in any other case, he is a member of the family of the owner.

(4) It is also a condition of the grant—

(a) that if, at any time within the initial period, the local housingauthority by whom the grant was paid serve notice on the owner of the dwellingrequiring him to do so, he will, within the period of twenty-one daysbeginning on the date on which the notice was served, furnish to the authoritya statement showing how the condition in subsection (2) above is beingfulfilled; and

(b) that, if required to do so by the owner of the dwelling, any tenant of thedwelling will furnish the owner with such information as he may reasonablyrequire to enable him to comply with a notice served under paragraph (a)above.

(5) A condition under subsection (2) or subsection (4) above is a local landcharge and shall, subject to subsection (9) and section 125 below, remain inforce with respect to the dwelling for a period of five years from thecertified date.

(6) So long as a condition under subsection (2) or subsection (4) aboveremains in force with respect to a dwelling—

(a) it is binding on any person, other than a local housing authority or registered social landlord, who is for the time being the owner of thedwelling; and

(b) it is enforceable against all other persons having an interest in thedwelling as if it were a condition of the terms of every tenancy of, or ofproperty including, the dwelling.

(7) In the event of a breach of a condition under subsection (2) or subsection(4) above, the local housing authority may demand that the owner for the timebeing of the dwelling pay a sum equal to the amount of the grant less so much(if any) of it as has already been repaid under section 120 below, togetherwith compound interest on that sum as from the certified date, calculated atsuch reasonable rate as the local housing authority may determine and withyearly rests.

(8) The local housing authority may determine not to make such a demand or maydemand a lesser amount.

(9) On satisfaction of the liability arising from a demand under this section,the conditions under subsections (2) and (4) above and subsection (2) ofsection 120 below shall cease to be in force with respect to the dwelling inquestion.

Condition requiring repayment of grant in case of certain disposals wherecertificate of intended letting given.

120

(1) This section applies where an application for a renovation grant (otherthan a tenant’s application) has been approved by a local housing authorityand the application for the grant was accompanied by a certificate of intended letting.

(2) It is a condition of the grant that—

(a) where an owner makes a relevant disposal (other than an exempt disposal)of the dwelling with vacant possession within the initial period, he shall payto the local housing authority on demand the amount of the grant; and

(b) where an owner makes such a disposal otherwise than with vacant possessionwithin the initial period, he shall pay to the authority on demand the amountof the grant, reduced by one-fifth for each complete year which has elapsedafter the certified date and before the disposal.

(3) A condition under subsection (2) above is a local land charge and shall,subject to subsection (5) and section 125 below, remain in force with respectto the dwelling for a period of five years from the certified date.

(4) So long as a condition under subsection (2) above remains in force withrespect to a dwelling it is binding on any person who is for the time beingan owner of the dwelling.

(5) On satisfaction of the liability arising from a demand under this section,any condition under subsection (2) above shall cease to be in force withrespect to the dwelling in question.

(6) The expressions “relevant disposal” and “exempt disposal” have the meanings assigned by section 124below.

Condition requiring repayment of grant in case of certain disposals whereowner-occupation certificate given.

121

(1) This section applies where an application for a renovation grant has beenapproved by a local housing authority and the application for the grant wasaccompanied by an owner-occupation certificate.

(2) It is a condition of the grant that, where an owner makes a relevantdisposal (other than an exempt disposal) of the dwelling within the period ofthree years beginning on the certified date, he shall pay to the authority ondemand the amount of the grant, reduced by one-third for each complete yearwhich has elapsed after the certified date and before the disposal.

(3) A condition under subsection (2) above is a local land charge and shall,subject to subsections (5) to (7) and section 125 below, remain in force withrespect to the dwelling for a period of three years from the certified date.

(4) So long as a condition under subsection (2) above remains in force withrespect to a dwelling it is binding on any person who is for the time beingan owner of the dwelling.

(5) In any case where—

(a) there is a relevant disposal of the dwelling concerned which is an exemptdisposal; or

(b) there is a relevant disposal of the dwelling concerned (not being anexempt disposal) for no consideration or for consideration of an amount lessthan that either prescribed, or calculated in accordance with a formulaprescribed, by regulations made by the Secretary of State;

any condition under subsection (2) above shall cease to be in force withrespect to the dwelling.

(6) On satisfaction of the liability arising from a demand under this section,any condition under subsection (2) above shall cease to be in force withrespect to the dwelling in question.

(7) In any case where—

(a) within the period referred to in subsection (2) above an owner makes arelevant disposal of the dwelling concerned (not being an exempt disposal),and

(b) the authority having the right to demand payment from the owner asmentioned in that subsection are satisfied that he is elderly or infirm andis making the disposal with the intention of going to live in shelteredhousing or a residential care home as his only or main residence,

the authority may determine not to make any demand under subsection (2)above and, on the making of such a determination, any condition under thatsubsection shall cease to be in force with respect to the dwelling.

(8) The expressions “relevant disposal” and “exempt disposal” have the meanings assigned by section 124below.

Conditions relating to HMO grant.

122

(1) This section applies where an application for an HMO grant has beenapproved by a local housing authority; and in the following provisions of thissection “the house” means the house to which the eligible worksrelate.

(2) It is a condition of the grant that, throughout the initial period, thehouse will be residentially occupied or available for residential occupation,under tenancies or licences, by persons who are not connected with the ownerfor the time being of the house.

(3) The references in subsection (2) above to residential occupation do notinclude occupation for a holiday; and subsection (3) of section 119 aboveapplies for the purposes of subsection (2) above, substituting a reference toa house for any reference to a dwelling.

(4) It is also a condition of the grant—

(a) that if, at any time within the initial period, the local housingauthority by whom the grant was paid serve notice on the owner of the houserequiring him to do so, he will, within the period of twenty-one daysbeginning on the date on which the notice was served, furnish to the authoritya statement showing how the condition in subsection (2) above is beingfulfilled; and

(b) that, if required to do so by the owner of the house, any tenant orlicensee in residential occupation of the house will furnish the owner withsuch information as he may reasonably require to enable him to comply with anotice served under paragraph (a) above.

(5) In any case where—

(a) there is, with respect to the house, a breach of a condition undersubsection (2) or subsection (4) above, or

(b) at any time within the initial period the local housing authority havegiven a direction under section 354 of the Housing Act 1985 (power to limitnumber of occupants of house) with respect to the house and that direction hasnot been revoked or varied under section 357 of that Act,

the authority may demand that the owner for the time being of the housepay a sum equal to the amount of the grant, together with compound intereston that sum as from the certified date, calculated at such reasonable rate asthe authority may determine and with yearly rests: but the authority maydetermine not to make such a demand or may demand a lesser amount.

(6) It is also a condition of the grant that, if an owner makes a relevantdisposal of the house (other than an exempt disposal) within the initialperiod, he shall pay to the local housing authority on demand the amount ofthe grant.

(7) A condition under any of subsections (2), (4) and (6) above (in thefollowing provisions of this section referred to as “an HMO condition”) is a local land charge and, subject tosubsection (9) and section 125 below, shall remain in force with respect tothe house for a period of five years from the certified date.

(8) So long as an HMO condition remains in force with respect to a house itis binding on any person, other than a local housing authority or registered social landlord, who is for the time being an owner of the house.

(9) On satisfaction of the liability arising from a demand under subsection(5) or subsection (6) above, any HMO condition shall cease to be in force withrespect to the house.

(10) The expressions “relevant disposal” and “exempt disposal” have the meanings assigned by section 124below.

Condition requiring repayment of grant on certain disposals in case oflandlord’s common parts application.

123

(1) This section applies where a landlord’s common parts application has beenapproved by a local housing authority.

(2) It is a condition of the grant that where the applicant makes a relevantdisposal (other than an exempt disposal) of the building within the initialperiod, he shall pay to the local housing authority on demand the amount ofthe grant.

(3) A condition under subsection (2) above is a local land charge and shall,subject to subsection (5) and section 125 below, remain in force with respectto the building for a period of five years from the certified date.

(4) So long as a condition under subsection (2) above remains in force withrespect to a building it is binding on any person who is for the time beinga successor in title to that interest in the building by virtue of which,under section 105(2)(b) above, the applicant made his application.

(5) On satisfaction of the liability arising from a demand under this section,any condition under subsection (2) above shall cease to be in force withrespect to the building in question.

(6) The expressions “relevant disposal” and “exempt disposal” have the meanings assigned by section 124below.

Meaning of relevant disposal and exempt disposal for the purposes ofsections 120 to 123.

124

(1) A disposal, whether of the whole or part of the dwelling, is a relevantdisposal for the purposes of sections 120 to 123 above if it is—

(a) a conveyance of the freehold or an assignment of the lease, or

(b) the grant of a lease (other than a mortgage term) for a term of more than21 years otherwise than at a rack rent.

(2) For the purposes of subsection (1)(b) above it shall be assumed—

(a) that any option to renew or extend a lease or sub-lease, whether or notforming part of a series of options, is exercised, and

(b) that any option to terminate a lease or sub-lease is not exercised.

(3) A disposal is an exempt disposal for the purposes of sections 120 to 123above if it is—

(a) a disposal of the whole of the dwelling and a conveyance of the freeholdor an assignment of the lease and the person or each of the persons to whomit is made is a qualifying person as defined in subsection (4) below;

(b) a vesting of the whole of the dwelling in a person taking under a will oron an intestacy;

(d) a compulsory disposal as defined in section 161 of the Housing Act 1985 (meaning of compulsory disposal);

(e) a disposal of property consisting of land included in the dwelling byvirtue of section 184 of that Act (land let with or used for the purposes ofthe dwelling-house); or

(f) a disposal under which the interest of a person entitled to assistance byway of repurchase under Part XVI of that Act (assistance for owners ofdefective housing) is acquired in accordance with Schedule 20 to that Act.

(4) A person is a qualifying person for the purposes of subsection (3)(a)above if—

(a) in the case of an individual, he is—

(i) the person, or one of the persons, by whom the disposal is made;

(ii) the spouse, or former spouse, of that person or one of those persons; or

(iii) a member of the family of that person or one of those persons; or

(b) in the case of a company, it is an associated company of the company bywhom the disposal is made;

and, for the purposes of paragraph (b) above, section 416 of the Income and Corporation Taxes Act 1988 (meaning of associatedcompany) shall apply in determining whether a company is an associated companyof another.

(4A) The orders referred to in subsection (3)(c) above are orders under—

(a) section 24 or 24A of the Matrimonial Causes Act 1973 (property adjustment orders or orders for the sale of property in connection with matrimonial proceedings),

(b) section 2 of the Inheritance (Provision for Family and Dependants) Act 1975 (orders as to financial provision to be made from estate),

(c) section 17 of the Matrimonial and Family Proceedings Act 1984 (property adjustment orders or orders for the sale of property after overseas divorce, &c.), or

(d) paragraph 1 of Schedule 1 to the Children Act 1989 (orders for financial relief against parents);

(5) For the purposes of sections 120 to 123 above, the grant of an optionenabling a person to call for a relevant disposal which is not an exemptdisposal shall be treated as such a disposal made to him.

Repayment of grant.

125

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