Housing Grants, Construction and Regeneration Act 1996

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

(1) This section applies where an application for a grant has been approved by the local housing authority and—

(a) the authority ascertain that the amount was determined under section 30 or 31 on the basis of inaccurate or incomplete information and exceeds that to which the applicant was entitled;

(b) the authority ascertain that without their knowledge the eligible works were started before the application was approved;

(c) the eligible works are not completed to the satisfaction of the authority within the period specified under section 37(1), or such extended period as they may allow under that provision;

(d) 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

(e) the authority ascertain that without their knowledge the eligible works were carried out otherwise than as required by section 38 (conditions as to contractors employed).

(2) Where this section 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)(d), is to be a reduction proportionate to the reduction in the estimated expense;

and they 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.