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PART IFinancial assistance towards cost of improvements and conversions

Improvement grants

2Improvement grants

(1)A local authority may pay an improvement grant if an application therefor is made in accordance with this section and approved by them.

(2)Such an application must contain particulars of the works and an estimate of their cost, and such other particulars as the Minister may specify.

(3)Subject to subsection (4) of this section, a local authority shall not entertain an application for an improvement grant if the cost of the works as estimated in the application is less than £100 or such other amount as may for the time being be prescribed.

(4)Where, not more than three years before the making of the application, a standard grant was made in respect of the dwelling (or one of the dwellings) to which the application relates and the application contains a statement of the cost towards which the standard grant was made, that cost shall be deemed, for the purposes of the preceding subsection, to be added to that estimated in the application.

(5)Where an application for an improvement grant relates to more than one dwelling then—

(a)if the dwellings are to be provided by the conversion of a house or other building, the cost referred to in subsection (3) of this section is the cost of the works divided by the number of dwellings ; and

(b)if the dwellings are to be improved, the cost referred to in subsection (3) of this section is so much of the cost of the works as is in the opinion of the local authority attributable to any one dwelling.

(6)Subject to section 25 of this Act, a local authority shall not entertain an application for an improvement grant unless they are satisfied that the applicant has, in every parcel of land on which the works specified in the application are to be or have been carried out, an interest which is either an estate in fee simple absolute in possession or a term of years absolute of which not less than five years remain unexpired at the date of the application.

3Conditions for approval of application for improvement grant

(1)A local authority shall not approve an application for an improvement grant if the works specified therein have been begun unless they are satisfied that there were good reasons for beginning the works before the application was approved.

(2)A local authority shall not approve an application for an improvement grant unless they are satisfied that the dwelling or dwellings to which the application relates will provide satisfactory housing accommodation for such period and conform with such requirements with respect to construction and physical conditions and the provision of services and amenities as may for the time being be specified for the purposes of this section by the Minister.

4Approval of application for improvement grant

(1)Where a local authority approve an application for an improvement grant they shall determine the amount of the expenses which, in their opinion, are proper to be incurred for the execution of the works specified in the application and shall notify the applicant of that amount; and the amount so notified is in this Part of this Act referred to as the approved expense of the works.

(2)The approved expense of any works shall not allow for works of repair and replacement more than one-half of that expense or such other part thereof as may for the time being be prescribed.

(3)Where the applicant satisfies the local authority that the works specified in the application cannot be or could not have been carried out without the carrying out of additional works and that this could not have been reasonably foreseen at the time the application was made the local authority may substitute a higher amount as the amount of the approved expense.

(4)In approving an application for an improvement grant a local authority may require as a condition of paying the grant that the works specified in the application are carried out within such time (which must not be less than twelve months) as the local authority may specify or such further time as the local authority may allow.

5Amount of improvement grant

(1)The amount of an improvement grant shall be such amount as may be fixed by the local authority when they approve the application for the grant, but shall not exceed—

(a)one half of the approved expense of the works, nor

(b)subject to subsection (3) of this section, the limit imposed by or under subsection (2) of this section.

(2)The limit is the amount or, if the application relates to more than one dwelling, the aggregate of the amounts, applicable under the following paragraphs, that is to say.—

(a)£1,000, or such other amount as may be prescribed, if the dwelling is improved by the works or is provided by them otherwise than mentioned in paragraph (b) of this subsection ; and

(b)£1,200, or such other amount as may be prescribed, if the dwelling is provided by the conversion of a house or other building consisting of three or more storeys.

(3)The limit imposed by or under subsection (2) of this section may be exceeded by such amount as the Minister may approve, if the local authority are satisfied in a particular case that there are good reasons for fixing a higher amount; and the approval of the Minister may be given either with respect to a particular case or with respect to a class of case.

(4)For the purposes of this section, where an improvement grant is to be paid towards the cost of works required for the provision of a dwelling all or part of which is in the basement of a building the basement shall count as a storey.

6Payment of improvement grant

(1)An improvement grant may be paid after the completion of the works towards the cost of which it is payable or part of it may be paid in instalments as the works progress and the balance after the completion of the works.

(2)Where part of am improvement grant is paid in instalments the aggregate of the instalments paid shall not at any time before the completion of the works exceed one half of the aggregate cost of the works executed up to that time.

(3)The payment of an improvement grant or of any part thereof shall be conditional upon the works or the corresponding part of the works being executed to the satisfaction of the local authority.

(4)If an instalment of an improvement grant is paid before the completion of the works and the works are not completed within the time specified in subsection (5) of this section, that instalment and any further sums paid by the local authority as part of the grant shall, on being demanded by the local authority, forthwith become repayable to them by the person to whom the instalment was paid and shall carry interest at such rate as may be prescribed from the date on which it was paid by the local authority until repayment.

(5)Where the local authority have specified no time under section 4(4) of this Act for the completion of the works the time referred to in subsection (4) of this section is twelve months from the date on which the instalment is paid or such further time as the local authority may allow; and where they have specified a time or allowed further time under section 4(4) of this Act the time referred to in subsection (4) of this section is the time so specified or allowed.