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114 Approval of applications to provide certain facilities for the disabled

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

(a) that the relevant works are necessary and appropriate to meet the needs of 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, the local housing authority shall consult the welfare authority.

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

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

(a) facilitating access by the disabled occupant to and from the dwelling or the 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 as the principal family room;

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

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

(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 the disabled occupant or, if there is no existing heating system in the dwelling or any such system is unsuitable for use by the disabled occupant, providing a heating system suitable to meet his needs;

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

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

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

(5) In this section “the disabled occupant” means the disabled person for whose benefit 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 section 29(1) of the [1948 c. 29.] National Assistance Act 1948 (handicapped persons' welfare); or

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

(7) For the purposes of this section, “welfare authority” means the council which is the local authority for the purposes of the [1970 c. 42.] Local Authority Social Services Act 1970 for the area in which the dwelling is situated.

115 Discretionary approval of certain applications

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

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

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

(2) Subject to the preceding provisions of this Part, a local housing authority may approve an application for a common parts grant if the authority are 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 [1985 c. 68.] 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;

(c) to provide adequate thermal insulation;

(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 requirements with respect to construction or physical condition as may for the time being be 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 to the provision or condition of services and amenities to or within the dwelling or building as may for the time being be so specified.

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

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

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

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

(b) in the case of an application for an HMO grant, the relevant works are for the purpose of enabling the house in question to meet one or more of the requirements in subsection (1A) of section 352 of the [1985 c. 68.] Housing Act 1985,

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

(7) If in the opinion of the local housing authority the relevant works are more or less extensive than is necessary to achieve the result referred to in paragraph (b) of subsection (2) above or any of the purposes set out in subsection (3) above or, as the case may be, the purpose falling within subsection (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 be necessary for that purpose.

(8) In determining what is “reasonable repair”, in relation to a dwelling or building for 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 and the 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) of subsection (3) above, the Secretary of State—

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

(b) may specify different requirements for different areas.

116 Approval and refusal of applications

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

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

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

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

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

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

and shall specify in the notice under subsection (1) above the eligible works, 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 to the approval or making of the grant, whether purporting to operate by way of a condition of the grant, a personal covenant or otherwise; and the consent of the Secretary of State under paragraph (a) above may be given either generally or in relation to any one or more specified authorities.

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

(a) the eligible works cannot be, or could not have been, carried out on the basis 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 without carrying out additional works which could not have been reasonably foreseen at the time the application was made,

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

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

117 Payment of grants

(1) Where the local housing authority have approved an application for a grant, they shall pay the grant, subject to subsection (3) below and to sections 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 after completion 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 executed to the satisfaction of the authority; and

(b) the authority being provided with an acceptable invoice, demand or receipt for payment for the works and any preliminary or ancillary services and charges 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 is acceptable if it satisfies the authority and is not given by the applicant or a member of his family.

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

Conditions of grants and repayments

118 Conditions as to completion of works

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

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

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

119 Condition as to availability for letting

(1) This section applies where an application for a renovation grant or a disabled facilities grant, other than an application for a disabled facilities grant 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 the grant 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 not for a holiday, on a tenancy which is not a long tenancy by the owner for the time 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 of the agricultural population in pursuance of a contract of service and otherwise than as a tenant,

disregarding any part of that period in which neither of the above paragraphs applies but the dwelling is occupied by a person who is a protected occupier under the [1976 c. 80.] Rent (Agriculture) Act 1976 or is occupied under an assured agricultural occupancy, within the meaning of Part I of the [1988 c. 50.] Housing Act 1988.

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

(a) in a case where personal representatives or trustees are the owner, he is a person who under the will or intestacy or, as the case may be, under the terms of the trust concerned is beneficially entitled to an interest in the dwelling 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 housing authority by whom the grant was paid serve notice on the owner of the dwelling requiring him to do so, he will, within the period of twenty-one days beginning on the date on which the notice was served, furnish to the authority a statement showing how the condition in subsection (2) above is being fulfilled; and

(b) that, if required to do so by the owner of the dwelling, any tenant of the dwelling will furnish the owner with such information as he may reasonably require 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 land charge and shall, subject to subsection (9) and section 125 below, remain in force with respect to the dwelling for a period of five years from the certified date.

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

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

(b) it is enforceable against all other persons having an interest in the dwelling as if it were a condition of the terms of every tenancy of, or of property 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 time being 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, together with compound interest on that sum as from the certified date, calculated at such reasonable rate as the local housing authority may determine and with yearly rests.

(8) The local housing authority may determine not to make such a demand or may demand 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) of section 120 below shall cease to be in force with respect to the dwelling in question.

120 Condition requiring repayment of grant in case of certain disposals where certificate of intended letting given

(1) This section applies where an application for a renovation grant (other than a tenant’s application) has been approved by a local housing authority and 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 pay to the local housing authority on demand the amount of the grant; and

(b) where an owner makes such a disposal otherwise than with vacant possession within the initial period, he shall pay to the authority on demand the amount of the grant, reduced by one-fifth for each complete year which 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 subsection (5) and section 125 below, remain in force with respect to 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 with respect to a dwelling it is binding on any person who is for the time being an 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 with respect to the dwelling in question.

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

121 Condition requiring repayment of grant in case of certain disposals where owner-occupation certificate given

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

(2) It is a condition of the grant that, where an owner makes a relevant disposal (other than an exempt disposal) of the dwelling within the period of three years beginning on the certified date, he shall pay to the authority on demand the amount of the grant, reduced by one-third for each complete year which 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 with respect 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 with respect to a dwelling it is binding on any person who is for the time being an owner of the dwelling.

(5) In any case where—

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

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

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

(7) In any case where—

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

(b) the authority having the right to demand payment from the owner as mentioned in that subsection are satisfied that he is elderly or infirm and is making the disposal with the intention of going to live in sheltered housing 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 that subsection 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 124 below.

122 Conditions relating to HMO grant

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

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

(3) The references in subsection (2) above to residential occupation do not include occupation for a holiday; and subsection (3) of section 119 above applies for the purposes of subsection (2) above, substituting a reference to a 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 housing authority by whom the grant was paid serve notice on the owner of the house requiring him to do so, he will, within the period of twenty-one days beginning on the date on which the notice was served, furnish to the authority a statement showing how the condition in subsection (2) above is being fulfilled; and

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

(5) In any case where—

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

(b) at any time within the initial period the local housing authority have given a direction under section 354 of the Housing Act 1985 (power to limit number of occupants of house) with respect to the house and that direction has not been revoked or varied under section 357 of that Act,

the authority may demand that the owner for the time being of the house pay a sum equal to the amount of the grant, together with compound interest on that sum as from the certified date, calculated at such reasonable rate as the authority may determine and with yearly rests: but the authority may determine 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 relevant disposal of the house (other than an exempt disposal) within the initial period, he shall pay to the local housing authority on demand the amount of the grant.

(7) A condition under any of subsections (2), (4) and (6) above (in the following provisions of this section referred to as “an HMO condition”) is a local land charge and, subject to subsection (9) and section 125 below, shall remain in force with respect to the 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 it is binding on any person, other than a local housing authority or registered housing association, 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 with respect to the house.

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

123 Condition requiring repayment of grant on certain disposals in case of landlord’s common parts application

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

(2) It is a condition of the grant that where the applicant makes a relevant disposal (other than an exempt disposal) of the building within the initial period, he shall pay to the local housing authority on demand the amount of the 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 respect to 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 with respect to a building it is binding on any person who is for the time being a 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 with respect to the building in question.

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

124 Meaning of relevant disposal and exempt disposal for the purposes of sections 120 to 123

(1) A disposal, whether of the whole or part of the dwelling, is a relevant disposal 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 than 21 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 not forming 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 123 above if it is—

(a) a disposal of the whole of the dwelling and a conveyance of the freehold or an assignment of the lease and the person or each of the persons to whom it 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 or on an intestacy;

(c) a disposal of the whole of the dwelling in pursuance of an order made under section 24 of the [1973 c. 18.] Matrimonial Causes Act 1973 (property adjustment orders in connection with matrimonial proceedings) or section 2 of the [1975 c. 63.] Inheritance (Provision for Family and Dependants) Act 1975 (orders as to financial provision to be made from estate);

(d) a compulsory disposal as defined in section 161 of the [1985 c. 68.] Housing Act 1985 (meaning of compulsory disposal);

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

(f) a disposal under which the interest of a person entitled to assistance by way of repurchase under Part XVI of that Act (assistance for owners of defective 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 by whom the disposal is made;

and, for the purposes of paragraph (b) above, section 416 of the [1988 c. 1.] Income and Corporation Taxes Act 1988 (meaning of associated company) shall apply in determining whether a company is an associated company of another.

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

125 Repayment of grant

(1) Any reference in this section to a “grant condition” is a reference to a condition for the time being in force under subsection (2) or subsection (4) of section 119 above, subsection (2) of section 120 above, subsection (2) of section 121 above, any of subsections (2), (4) and (6) of section 122 above or subsection (2) of section 123 above.

(2) If at any time while a grant condition remains in force with respect to a dwelling, house or building.—

(a) the owner of the dwelling, house or building to which the condition relates pays the amount of the grant to the local housing authority by whom the grant was made, or

(b) a mortgagee of the interest of the owner in that dwelling, house or building being a mortgagee entitled to exercise a power of sale, makes such a payment,

the grant condition and any other grant conditions shall cease to be in force with respect to that dwelling, house or building.

(3) In the case of a grant condition imposed on a landlord’s common parts application any reference in subsection (2) above to the owner of the building is a reference to the applicant or any such successor in title as is referred to in section 123(4) above.

(4) An amount paid by a mortgagee under subsection (2)(b) above shall be treated as part of the sums secured by the mortgage and may be discharged accordingly.

(5) The purposes authorised for the application of capital money by—

(a) section 73 of the [1925 c. 18.] Settled Land Act 1925,

(b) that section as applied by section 28 of the [1925 c. 20.] Law of Property Act 1925 in relation to trusts for sale, and

(c) section 26 of the [1925 c. 24.] Universities and College Estates Act 1925,

include the making of payments under subsection (2) above.

126 Renovation grants relating to two or more dwellings

(1) Subject to subsection (2) below, no application for a renovation grant may be made in respect of more than one dwelling.

(2) A single application may be made for a renovation grant towards the cost of works required for the provision of two or more dwellings by the conversion of a house or other building.

(3) In the case of such a single application as is referred to in subsection (2) above—

(a) for the purposes of section 106 above, a separate certificate may be given in respect of each dwelling or in respect of any one or more of them;

(b) if the application is accompanied by more than one certificate and at least one of them is an owner-occupation certificate or a special certificate the application shall be treated as falling within section 109 above and not within section 110 above;

(c) each dwelling shall be treated separately for the purposes of sections 119 to 125 above; and

(d) the grant shall, for those purposes, be treated as apportioned equally between each of the dwellings, and any reference in those sections to the amount of the grant shall be construed accordingly.

Group repair schemes

127 Group repair schemes and persons eligible to participate

(1) In accordance with a scheme under this section prepared by a local housing authority and approved by the Secretary of State, the authority may, with the consent of the persons participating in the scheme, enter into agreements to secure the carrying out of such external works to qualifying buildings to which the scheme relates as will ensure that, on completion of the works, the exterior of those buildings will be in reasonable repair; and in this Part such a scheme is referred to as a “group repair scheme”.

(2) The approval of the Secretary of State under subsection (1) above may be given either to a specific scheme or generally to schemes which fulfil such criteria as he may from time to time specify; and any such approval may be made conditional upon compliance with requirements specified by him.

(3) Every person who, at the date of the approval of the scheme, has an owner’s interest in a dwelling or other premises comprised in a building to which a group repair scheme relates and who fulfils the conditions in subsection (5) below is eligible to participate in the scheme as an assisted participant unless that person is—

(a) the council of a county, district or London borough, the Common Council of the City of London or the Council of the Isles of Scilly;

(b) a development corporation or the Commission for the New Towns;

(c) the Development Board for Rural Wales;

(d) a housing action trust; or

(e) a registered housing association, within the meaning of the [1985 c. 69.] Housing Associations Act 1985.