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(1)Where an application for an improvement grant, intermediate grant or repairs grant is approved by a local housing authority, then, subject to subsection (2), the authority—
(a)may impose with respect to the dwelling or, as the case may be, each of the dwellings to which the grant relates the further conditions specified in section 504 (further conditions as to letting of dwellings), and
(b)shall do so, subject to subsection (3), in the case of a dwelling situated in an area which on the date on which the application is approved is a housing action area or general improvement area;
but the authority may impose no other condition in relation to the approval or making of the grant, whether purporting to operate by way of a condition of the grant, a personal covenant or otherwise.
(2)The further conditions specified in section 504 may not be imposed to the extent that the grant relates to—
(a)a dwelling in which a registered housing assocation or co-operative housing association has an estate or interest on the date on which the application is approved, or
(b)a dwelling in respect of which a certificate of owner-occupation has been given and which has not been let in whole or in part for residential purposes at any time during the period of twelve months immediately preceding the date on which the application is approved (disregarding for this purpose any letting to the applicant, to a member of his family or to a grandparent or grandchild of the applicant or his spouse),or
(c)a dwelling which is occupied by or available for occupation by a member of the agricultural population in pursuance of a contract of service and otherwise than as a tenant, or
(d)a dwelling which is occupied by a person who is a protected occupier or statutory tenant under the [1976 c. 80.] Rent (Agriculture) Act 1976.
or where the application is a tenant’s application and is not accompanied by a certificate of availability for letting.
(3)In the case of a dwelling within subsection (1)(b) in respect of which a certificate of owner-occupation has been given, the local housing authority need not impose the further conditions specified in section 504 if it appears to them that in the special circumstances of the case it would be reasonable to dispense with them.
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