(1)A local housing authority shall, by notice in writing, notify an applicantfor a grant as soon as reasonably practicable, and, in any event, not laterthan six months after the date of the application concerned, whether theapplication is approved or refused.
(2)Where an authority decide to approve an application for a grant, theyshall determine—
(a)which of the relevant works, taking into account any variation of theapplication under section 108(4)(a) or section 115(7) above, are eligible forgrant (in this Part referred to as “the eligible works”);
(b)the amount of the expenses which in their opinion are properly to beincurred in the execution of the eligible works;
(c)the amount of the costs which in their opinion have been or are to beproperly incurred with respect to preliminary or ancillary services andcharges; and
(d)the amount of grant they have decided to pay in respect of the eligibleworks, taking into account paragraphs (b) and (c) above, subsection (5) belowand such of sections 109 to 115 above as may be applicable;
and shall specify in the notice under subsection (1) above the eligibleworks, the total of the amounts referred to in paragraphs (b) and (c) above(in this Part referred to as “the estimated expense”) and the amount of the grant.
(3)Where an application for a grant is approved, then, except—
(a)with the consent of the Secretary of State, or
(b)as provided by section 118(1) below,
the local housing authority may not impose any condition in relation tothe approval or making of the grant, whether purporting to operate by way ofa condition of the grant, a personal covenant or otherwise; and the consentof the Secretary of State under paragraph (a) above may be given eithergenerally or in relation to any one or more specified authorities.
(4)If, after an application for a grant has been approved, the authority aresatisfied that, owing to circumstances beyond the control of the applicant,—
(a)the eligible works cannot be, or could not have been, carried out on thebasis of the amount of expenses referred to in subsection (2)(b) above, or
(b)the eligible works cannot be, or could not have been, carried out withoutcarrying out additional works which could not have been reasonably foreseenat the time the application was made,
the authority may re-determine the estimated expense and, subject tosubsection (5) below, the amount of the grant.
(5)The Secretary of State may, if he thinks fit, by order prescribe a maximumamount, or a formula for calculating a maximum amount, of grant which a localhousing authority may pay in respect of an application for a grant; and anauthority may not pay any grant in excess of that amount.