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3.—(1) If, in the case of an appropriate authority in England and Wales—
(a)X (the total of the housing benefit applicable amount calculated under paragraph 2 of Schedule 1 and the sum calculated under paragraph 2 in respect of that appropriate authority) exceeds Y (120 per cent. of the relevant amount), the community charge benefit applicable amount for that appropriate for the relevant year shall be the amount as calculated under paragraph 2 less the excess; or
(b)X (the total of the housing benefit applicable amount calculated under paragraph 2 of Schedule 1 and the sum calculated under paragraph 2 in respect of that appropriate authority) is less than Z (70 per cent. of the relevant amount) the community charge benefit applicable amount for that appropriate authority shall be the amount as calculated under paragraph 2 plus the difference.
(2) The relevant amount for the purposes of paragraphs 3 and 5 is the additional sum payable to the appropriate authority for the financial year ending 31 March 1990 calculated in accordance with Schedule 1 to the Housing Benefit (Subsidy) Order(1) (calculation of subsidy in respect of administration costs).
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