Regulation 16

At the end of section 565 add—

“(3)

Where a mortgagee becomes eligible for assistance in respect of a defective dwelling, this Part applies as if anything done (or treated by virtue of subsection (1) as done) by or in relation to the person who was previously so eligible had been done by or in relation to the mortgagee; but if a notice under section 540 (Notice of determination) had been served stating that the applicant was entitled to assistance by way of reinstatement grant then—

(a)

if the qualifying work had not been commenced before the mortgagee became eligible for assistance, that notice shall be regarded as not having been served (and the authority shall comply again with sections 537 and 540), and

(b)

if the qualifying work had been commenced before the mortgagee became eligible for assistance that notice shall continue in force (notwithstanding section 537(2)) but section 546 (Repayment of grant for breach of condition) shall apply to the mortgagee only in respect of instalments paid to him.”.