Subject to subsections (2) and (3) below, a local housing authority maynot approve an application for a grant if the relevant works have beencommenced before the application is approved and shall serve a notice ofrefusal to that effect on the applicant.
Subsection (1) above does not apply to—
Where the relevant works have not been completed, the authority concernedmay approve the application for a grant if they are satisfied that there weregood reasons for beginning the works before the application was approved.
Where an authority decide to approve an application in accordance withsubsection (3) above—