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(1)Where housing subsidy has been paid to a local housing authority or other body and it appears to the Secretary of State that—
(a)the purpose for which it was paid has not been fulfilled or not completely or adequately or not without unreasonable delay, and
(b)that the case falls within rules published by him,
he may recover from the authority or other body the whole or such part of the payment as he may determine in accordance with the rules, with interest from such time and at such rates as he may so determine.
(2)A sum recoverable under this section may, without prejudice to other methods of recovery, be recovered by withholding or reducing housing subsidy.
(3)The withholding or reduction under this section of housing subsidy for a year does not affect the base amount for the following year.
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