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23. Section 569 shall be modified by the addition of the following subsection—
“(7) Where a defective dwelling is vested in an authority under either—
(a)section 452 (Vesting of house in authority entitled to exercise power of sale), or
(b)Part III of the Defective Dwellings (Mortgagees) Regulations 1986 (Vesting by a mortgagee who is the purchasing authority),
this section shall apply as if references to the local housing authority were references to the authority in which the dwelling is vested and as if subsection (4)(b) were replaced by the following—
‘(‘(b)in the case of a vesting, the amount of the fund appropriated under paragraph 3 of Schedule 17 less the amount which would have been so appropriated had regulation 22 of the Defective Dwellings (Mortgagees) Regulations 1986 not been made.’’ ’
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