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Housing Act 1974

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This is the original version (as it was originally enacted).

Grant conditions

73Conditions as to future occupation

(1)Subject to section 83 below, where an application for an improvement grant, an intermediate grant or a repairs grant has been approved by a local authority the provisions of this section shall apply with respect to the occupation, during the period of 5 years beginning with the certified date (in this section referred to as " the initial period "), of the dwelling or, as the case may be, each of the dwellings to which the grant relates.

(2)In any case where the application for the grant was accompanied by a certificate of owner-occupation with respect to the dwelling, it shall be a condition of the grant—

(a)that throughout the first year of the initial period the dwelling will, as a residence, be occupied exclusively by, or be available for the exclusive occupation of, a qualifying person and members of his household (if any); and

(b)that if, at any time during the second or any subsequent year of the initial period, the dwelling is not occupied exclusively as his only or main residence by a qualifying person and members of his household (if any), the dwelling will at that time be let or available for letting by a qualifying person as a residence, and not for a holiday, to persons other than members of that person's family.

(3)For the purposes of this section, the following are " qualifying persons " in relation to a dwelling, namely,—

(a)the applicant for the grant and any person who derives title to the dwelling through or under the applicant, otherwise than by a conveyance for value; and

(b)at any time when personal representatives or trustees as such are the qualifying person by virtue of paragraph (a) above, any person who, under the will or intestacy or, as the case may require, under the terms of the trusts concerned, is beneficially entitled to an interest in the dwelling or the proceeds of sale thereof.

(4)In any case where the application for the grant was accompanied by a certificate of availability for letting with respect to the dwelling, it shall be 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, by a qualifying person to persons other than members of the family of that qualifying person or any other person who is for the time being a qualifying person in relation to the dwelling; 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.

(5)In determining, in a case where subsection (2) above applies, whether there is a breach of the condition specified in that subsection, there shall be disregarded any period of not more than 12 months during which that condition is not fulfilled if—

(a)that period begins on the death of a qualifying person who, immediately before his death, was occupying the dwelling concerned as his residence ; and

(b)throughout that period an interest in the dwelling or the proceeds of sale thereof, being either the interest which belonged to the deceased or an interest which arose or fell into possession on his death, is vested in his personal representatives acting in that capacity or in trustees as such or, by virtue of section 9 of the Administration of Estates Act 1925, in the Probate Judge, within the meaning of that Act.

(6)In any case where subsection (1) above applies, it shall be a condition of the grant that if, at any time within the initial period, the local authority by whom the grant was paid serve notice on the owner of the dwelling requiring him to do so, the owner shall, within the period of 21 days beginning with the date on which the notice is served, furnish to the authority a certificate giving such information as the authority may reasonably require with respect to the occupation of the dwelling, and for this purpose it shall also be a condition of the grant 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 furnish the certificate to the authority.

74Power of local authorities to impose grant conditions

(1)Subject to section 83 below, where an application for an improvement grant, an intermediate grant or a repairs grant is approved by a local authority then, subject to subsection (3) below, the authority may and, in the case of a dwelling or dwellings situated in an area which, on the date on which the application is approved, is a housing action area, a general improvement area or a priority neighbourhood, they shall impose, with respect to the dwelling or, as the case may be, each of the dwellings to which the grant relates, the conditions specified in subsection (2) below as conditions of the grant, but may impose no other condition in relation to the approval or making of the grant, whether the condition purports to operate by way of a condition of the grant, a personal covenant or otherwise.

(2)The conditions referred to in subsection (1) above are—

(a)that the dwelling will be let or available for letting on a regulated tenancy or a Part VI contract;

(b)that, if the local authority by whom the grant in question was paid serve notice on the owner of the dwelling requiring him to do so, the owner will within the period of 21 days beginning with the date on which the notice is served furnish to the authority a certificate that the condition set out in paragraph (a) above is being fulfilled;

(c)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 for the purpose of enabling him to comply with the condition set out in paragraph (b) above ;

(d)that, if on the certified date there is no registered rent for the dwelling and no such application or reference is pending, an application for the registration of a rent for the dwelling will be made to the rent officer before the expiry of the period of 14 days beginning on the relevant day or, as the case may require, the Part VI contract will be referred to the rent tribunal for the district in question before the expiry of that period;

(e)that any such application or reference as is referred to in paragraph (d) above which is either pending on the certified date or made as mentioned in that paragraph will be diligently proceeded with and not withdrawn; and

(f)that no premium shall be required as a condition of the grant, renewal or continuance on or after the certified date of any lease, agreement for a lease or Part VI contract of or relating to the dwelling.

(3)To the extent that a grant relates to a dwelling—

(a)in which a registered housing association or an unregistered housing association falling within section 18(1)(b) of this Act has an estate or interest on the date on which the application for the grant is approved (in this subsection referred to as " the approval date"), or

(b)in respect of which a certificate of owner-occupation has been given and which has not at any time during the period of 12 months immediately preceding the approval date been let in whole or in part for residential purposes, or

(c)which is 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,

no condition may be imposed under this section as a condition of the grant.

(4)In this section—

  • " Part VI contract" has the same meaning as in Part VI of the Rent Act 1968 ;

  • " premium " has the same meaning as in Part VII of that Act;

  • " registered rent" means,—

    (a)

    in relation to a dwelling which is subject to, or available for letting on, a regulated tenancy, a rent registered under Part IV of that Act; and

    (b)

    in relation to a dwelling which is let, or available for letting, on a Part VI contract, a rent registered in the register kept under section 74 of that Act;

  • " regulated tenancy " has the same meaning as in that Act; and

  • " relevant day ", in relation to a dwelling for which there is no registered rent on the certified date, means the first day, not being earlier than the certified date, on which the dwelling is or becomes subject to a regulated tenancy or let on a Part VI contract.

75Enforceability and registration of grant conditions

(1)The provisions of this section shall apply in any case where, under or by virtue of any provision of this Part of this Act, a condition (in this section referred to as a " grant condition ") is imposed as a condition of a grant.

(2)If and so long as a grant condition remains in force—

(a)it shall be binding on any person, other than a housing authority or registered housing association, who is for the time being the owner of the dwelling to which the grant relates; and

(b)it shall be enforceable against all other persons having any interest in that dwelling as if it were a condition of the terms of every lease, agreement for a lease or statutory tenancy of, or of property including, that dwelling.

(3)Subject to subsection (4) below, a grant condition shall be in force throughout the period of 5 years beginning on the certified date.

(4)If, on the date on which an application for a grant is approved, the dwelling to which the grant relates is in a housing action area, subsection (3) above shall have effect, except in the case of a grant condition imposed under section 73 above, with the substitution for the words

5 yearsof the words " 7 years ".

(5)A grant condition shall be treated as not being registrable by virtue of section 15 of the Land Charges Act 1925 (either as, or as if it were, a local land charge) but, as soon as may be after an application for a grant has been approved, any condition of that grant shall be registered in the register of local land charges—

(a)by the proper officer, for the purposes of section 15 of the Land Charges Act 1925, of the council in whose area the dwelling concerned is situated, and

(b)in such manner as may be prescribed by rules under section 19 of that Act,

and in this subsection " council" means a district council, a London borough council or the Common Council of the City of London.

(6)In this Part of this Act " the certified date ", in relation to a dwelling in respect of which an application for a grant has been approved, means the date certified by the local authority by whom the application was approved as the date on which the dwelling first becomes fit for occupation after the completion of the relevant works to the satisfaction of the local authority.

76Repayment of grant for breach of condition

(1)The provisions of this section shall have effect in the event of a breach of a condition of a grant (in this section referred to as " the relevant grant") at a time when the condition is binding on the owner of the dwelling concerned by virtue of section 75(2) above.

(2)Where the relevant grant related to a single dwelling, an amount equal to the amount of the relevant grant, together with compound interest thereon as from the certified date, calculated at the appropriate rate and with yearly rests, shall, on being demanded by the local authority forthwith become payable to the authority by the owner for the time being of the dwelling.

(3)Where the relevant grant related to two or more dwellings, an amount equal to such part of the relevant grant as appears to the authority to be referable to the dwelling to which the breach relates, together with compound interest on that part as from the certified date, calculated at the appropriate rate and with yearly rests, shall, on being demanded by the local authority, forthwith become payable to the authority by the owner for the time being of that dwelling.

(4)Nothing in subsection (2) or, as the case may be, subsection (3) above shall prevent a local authority from determining not to demand any such amount as is referred to in that subsection or from demanding an amount less than that which they are entitled to demand under that subsection.

(5)Upon satisfaction of the liability of an owner of a dwelling to make a payment under this section to a local authority in respect of a breach of a condition of a grant, the condition shall cease to be in force with respect to that dwelling.

(6)In this section " the appropriate rate " means the rate of interest for the time being fixed by subsection (2) of section 171 of the Local Government Act 1972 for the purposes of the enactments specified in subsection (1) of that section.

77Voluntary repayment of grants

(1)If, at any time while a condition of a grant remains in force, the owner of the dwelling to which the condition relates or a mortgagee of the interest of the owner in that dwelling, being a mortgagee entitled to exercise a power of sale, pays to the local authority by whom the grant was made the like amount as would (on a demand by the local authority) become payable under section 76 above in the event of a breach of that condition, all conditions of the grant shall cease to be in force with respect to that dwelling.

(2)Any amount paid under subsection (1) above by a mortgagee shall be treated as part of the sum secured by the mortgage and may be discharged accordingly.

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

(a)by section 73 of the Settled Land Act 1925 and by that section as applied by section 28 of the Law of Property Act 1925 in relation to trusts for sale, and

(b)by section 26 of the Universities of College Estates Act 1925,

shall include the payment to a local authority under subsection (1) above of the amount mentioned in that subsection in respect of a dwelling.

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