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104.—(1) Where, pursuant to section 73(5)(b) of the Administration Act, an amount has been recovered by deduction from housing benefit paid to a person (referred to as “the landlord” in this regulation) to discharge (in whole or in part) an obligation owed to him by the person on whose behalf the recoverable amount was paid (referred to as “the tenant” in this regulation) that obligation shall, in a case to which paragraph (2) applies, be taken to be discharged by the amount of the deduction.
(2) This paragraph applies in a case where the amount recoverable from the landlord relates to an overpayment of housing benefit in relation to which the landlord has—
(a)agreed to pay a penalty pursuant to section 109A of the Administration Act; or
(b)been convicted of an offence arising under the Act or any other statutory provision.
(3) In any case to which paragraph (2) applies or will apply when recovery is made the Executive shall notify both the landlord and the tenant that—
(a)the overpayment that it has recovered or that it has determined to recover (“that sum”) is or will be one to which paragraph (2) applies; and
(b)the landlord has no right in relation to that sum against the tenant, and that his obligation to the landlord shall be taken to be discharged by the amount so recovered.
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