The Housing (Scotland) Act 2001 (Assistance to Registered Social Landlords and Other Persons) (Grants) Regulations 2004

PART 4 TERMS AND CONDITIONS ON WHICH ASSISTANCE IS PROVIDED

New build property

5.  The terms and conditions on which RHOG for new build property is provided are–

(a) the grant recipient shall use RHOG towards the cost of acquiring the subjects and constructing a unit and for no other purpose whatsoever;

(b) the unit shall be the only or principal residence of the grant recipient;

(c) the grant recipient shall not sell, let, or otherwise dispose of the subjects, units, or any part thereof during the term of the RHOG without the prior written consent of the local authority; and

(d) the grant recipient shall grant a standard security over the subjects in favour of the local authority in terms acceptable to that local authority.

Off the shelf property

6.  The terms and conditions specified in paragraphs 5(b), (c) and (d) shall apply to RHOG for off the shelf property and the additional terms and conditions on which RHOG for off the shelf property is provided are that the grant recipient shall use RHOG towards the cost of–

(a) acquiring the unit;

(b) acquiring and improving the unit; or

(c) improving the unit which is already in the ownership of that grant recipient,

and for no other purpose whatsoever.

Default

7.  The breach of any of the terms and conditions detailed in paragraphs 5 or 6 (whichever are appropriate) and regulation 6 shall constitute a default.

Effect of default

8.  Save where paragraph 10 applies, in the event of a default, which is in the opinion of the local authority capable of being remedied, that local authority shall allow the grant recipient a period in which to remedy the default, said period being determined by that local authority on the basis of what it considers reasonable in the circumstances and that local authority shall serve a notice in writing on that grant recipient to that effect.

9.  Save where paragraph 10 applies, in the event of a default which is in the opinion of the local authority not capable of being remedied or is a default in terms of paragraph 8 that has not been remedied in terms of that paragraph–

(a) where no RHOG has been paid that local authority shall not make a payment; and

(b) in all other cases where payment or part payment of RHOG has been made the grant recipient shall immediately repay to that local authority any such payment or part payment up to the full amount of the RHOG.

10.  In the event of a default by the grant recipient of failing to comply with paragraph 5(c) the grant recipient shall repay to the local authority on such sale, let or other disposal, the full amount of the RHOG, or a portion thereof, the amount to be repaid being the difference between the sale price or market value of the unit, whichever is the higher, less any amount due under any permitted security up to the full amount of the RHOG.

Payment of grant

11.  Payment of RHOG shall only be made in one instalment at the completion of the project.