Local Government and Housing Act 1989

134 Cases in which grants may be re-calculated, withheld or repaid

(1) Where an application for a grant has been approved by the local housing authority, subsection (2) below applies in any case where—

(a) the eligible works are not completed to the satisfaction of the authority within the period specified under subsection (2) of section 118 above, or such extended period as they may allow under subsection (3) of that section; or

(b) the authority ascertain that the aggregate of the cost of completing the eligible works and the costs incurred with respect to preliminary or ancillary services and charges, is or is likely to be lower than the estimated expense; or

(c) the authority ascertain that without their knowledge the eligible works were started before the application was approved and the application was neither—

(i) one which they were required to approve by virtue of section 112 above in a case where completion of the relevant works was necessary to comply with a notice under section 189 of the [1985 c. 68.] Housing Act 1985 (repair notice requiring works to render premises fit for human habitation); nor

(ii) one which they were required to approve by virtue of section 113 above.

(2) Where this subsection applies, the authority may—

(a) refuse to pay the grant or any further instalment of grant which remains to be paid; or

(b) make a reduction in the grant which, in a case falling within subsection (1)(b) above, is to be a reduction proportionate to the reduction in the estimated expense;

and may demand repayment by the applicant forthwith, in whole or part, of the grant or any instalment of the grant paid, together with interest at such reasonable rate as the authority may determine from the date of payment until repayment.