Housing Grants, Construction and Regeneration Act 1996

50 Conditions as to occupation: HMO grants

(1) It is a condition of an HMO grant that throughout the grant condition period—

(a) the house is occupied or available for residential occupation in accordance with the intention stated in the certificate of future occupation that accompanied the application (see section 26(2)); and

(b) that the house is not so occupied as to cause—

(i) a breach of the duty under section 353A of the [1985 c. 68.] Housing Act 1985 (duty to keep premises fit for number of occupants), or

(ii) a breach of any direction given by the local housing authority under section 354 of that Act (power to limit number of occupants of house).

(2) It is also a condition of the grant that if at any time within the grant condition 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 21 days beginning with the date on which the notice was served furnish to the authority a statement showing how the condition in subsection (1)(a) is being fulfilled.

(3) A condition under this section is a local land charge and is 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.

(4) In the event of a breach of a condition under this section, the owner for the time being of the dwelling shall on demand pay to the local housing authority the amount of the grant, together with compound interest on that amount as from the certified date, calculated at such reasonable rate as the authority may determine and with yearly rests.

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

(6) The terms of any tenancy of any part of the house shall be deemed to include a duty on the part of the tenant, if required to do so by the owner of the house, to furnish him with such information as he may reasonably require to enable him to comply with a notice under subsection (2).