3.—(1) This paragraph applies where the landlord is a registered housing association, except in a case where the local authority consider that—
(a)the claimant occupies a dwelling larger than is reasonably required by him and any others who occupy that dwelling (including any non-dependants of his and any person paying rent to him); or
(b)the rent payable for that dwelling is unreasonably high.
(2) Where the circumstances set out in head (a) or (b) of sub-paragraph (1) above exist, the authority shall so state in their application for a determination.