Housing Defects Act 1984

Section 5.

SCHEDULE 1 Reinstatement Grant

PART I Payment of Grant

Amount

1 (1) Subject to the following provisions of this Schedule, the amount of reinstatement grant payable is the appropriate percentage of—

(a) the amount stated in a notice under section 4(2) of this Act or paragraph 3 below to be the amount of expenditure which, in the opinion of the appropriate authority, may properly be incurred in executing the qualifying work and entering into any associated arrangement,

(b) the expenditure incurred in executing the qualifying work and entering into any associated arrangement, or

(c) the expenditure which is the maximum amount permitted to be taken into account for the purposes of this paragraph,

whichever is the least.

(2) In this Schedule " appropriate percentage " means 90 per cent or, in any case where the authority are satisfied that the person entitled to assistance would suffer financial hardship unless a higher percentage of the expenditure referred to in sub-paragraph (1) above were paid to him, 100 per cent.

(3) The Secretary of State may by order vary either or both of the percentages mentioned in sub-paragraph (2) above.

Expenditure limit

2 (1) The maximum amount of expenditure permitted to be taken into account for the purposes of paragraph 1 above shall be the amount specified as the expenditure limit by order made by the Secretary of State, except in a case or description of case in which the Secretary of State, on the application of a housing authority, approves a higher amount.

(2) An order under this paragraph may make different provision for different areas, different designated classes and different categories of dwelling.

Changes in work or expenditure

3 Where the appropriate authority are satisfied that—

(a) the work required to reinstate the defective dwelling is more extensive than that stated in the notice under section 4(2) of this Act or a previous notice under this paragraph,

(b) the amount of expenditure which may properly be incurred in executing that work is greater than that so stated,

(c) there is an amount of expenditure which may properly be incurred in entering into an associated arrangement but no such amount is stated in the notice under section 4(2) of this Act or a previous notice under this paragraph, or

(d) where such an amount is so stated, the amount of expenditure which may be properly so incurred is greater than that amount,

they shall by notice in writing served on the person entitled to assistance state their opinion as to that amount or, as the case may be, that work and that amount, and the amount of reinstatement grant payable shall be adjusted accordingly.

Payment

4 (1) The appropriate authority may pay reinstatement grant in respect of the qualifying work in a single sum on completion of the qualifying work or by instalments.

(2) No instalment of reinstatement grant is to be paid at any time to the person entitled to assistance if that instalment (together with any amount previously paid) would exceed the appropriate percentage of the cost of so much of the qualifying work as has been executed at that time.

(3) The appropriate authority shall pay reinstatement grant in respect of any associated arrangement when payment in respect of the expenditure incurred in entering into the arrangement concerned falls to be made.

PART II Repayment of Grant

5 (1) This paragraph applies where—

(a) an amount of reinstatement grant has been paid in one or more instalments to the person who was entitled to assistance, and

(b) the qualifying work is not completed within the period for carrying out that work.

(2) Where this paragraph applies, the authority may, if they think fit, require that person to repay to them forthwith the amount referred to in sub-paragraph (1)(a) above and, if they do so—

(a) he shall comply with the requirement, and

(b) that amount or (if it was paid in more than one instalment) the amount of each instalment shall carry interest from the date on which it was paid until repayment at such reasonable rate as the authority may determine.