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3. Subject to paragraph 7, where the rent officer determines a reasonable market rent, and does not make a determination under paragraph 2 of Schedule 1 of the Rent Officers Order, and the amount of eligible rent exceeds the reasonable market rent less ineligible amounts, the appropriate amount in respect of the period beginning with the relevant date and ending with the termination date shall be—
(a)where the allowance granted is the same as or is less than the excess—
(i)except where paragraph 6 applies, nil per cent. of the housing benefit qualifying expenditure attributable to such allowance,
(ii)where paragraph 6 applies, 50 per cent. of the housing benefit qualifying expenditure attributable to such allowance;
(b)where the allowance granted is greater than the excess—
(i)except where paragraph 6 applies, nil per cent. of the housing benefit qualifying expenditure which is equal to the excess,
(ii)where paragraph 6 applies, 50 per cent. of the housing benefit qualifying expenditure which is equal to the excess,
and in either case 97 per cent. of the housing benefit qualifying expenditure which remains after deducting the excess.
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