Section 122: Conditions relating to HMO grant., Local Government and Housing Act 1989

This section applies where an application for an HMO grant has beenapproved by a local housing authority; and in the following provisions of thissection "the house" means the house to which the eligible worksrelate.

It is a condition of the grant that, throughout the initial period, thehouse will be residentially occupied or available for residential occupation,under tenancies or licences, by persons who are not connected with the ownerfor the time being of the house.

The references in subsection (2) above to residential occupation do notinclude occupation for a holiday; and subsection (3) of section 119 aboveapplies for the purposes of subsection (2) above, substituting a reference toa house for any reference to a dwelling.

It is also a condition of the grant—

that if, at any time within the initial period, the local housingauthority by whom the grant was paid serve notice on the owner of the houserequiring him to do so, he will, within the period of twenty-one daysbeginning on the date on which the notice was served, furnish to the authoritya statement showing how the condition in subsection (2) above is beingfulfilled; and

that, if required to do so by the owner of the house, any tenant orlicensee in residential occupation of the house will furnish the owner withsuch information as he may reasonably require to enable him to comply with anotice served under paragraph (a) above.

In any case where—

there is, with respect to the house, a breach of a condition undersubsection (2) or subsection (4) above, or

at any time within the initial period the local housing authority havegiven a direction under section 354 of the Housing Act 1985 (power to limitnumber of occupants of house) with respect to the house and that direction hasnot been revoked or varied under section 357 of that Act,

the authority may demand that the owner for the time being of the housepay a sum equal to the amount of the grant, together with compound intereston that sum as from the certified date, calculated at such reasonable rate asthe authority may determine and with yearly rests: but the authority maydetermine not to make such a demand or may demand a lesser amount.

It is also a condition of the grant that, if an owner makes a relevantdisposal of the house (other than an exempt disposal) within the initialperiod, he shall pay to the local housing authority on demand the amount ofthe grant.

A condition under any of subsections (2), (4) and (6) above (in thefollowing provisions of this section referred to as "an HMO condition") is a local land charge and, subject tosubsection (9) and section 125 below, shall remain in force with respect tothe house for a period of five years from the certified date.

So long as an HMO condition remains in force with respect to a house itis binding on any person, other than a local housing authority or registered social landlord, who is for the time being an owner of the house.

On satisfaction of the liability arising from a demand under subsection(5) or subsection (6) above, any HMO condition shall cease to be in force withrespect to the house.

The expressions "relevant disposal" and "exempt disposal" have the meanings assigned by section 124below.

Section 122: Conditions relating to HMO grant.

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