2  Eligibility Criteria for Grant Funding

2.1  General 

2.1.1  Properties are eligible for TSH funding where:

• they are available for use by the RSL for a period of time covered by a lease or licence for longer than 2 years and less than 30 years;
• the RSL will acquire a documented, legally binding interest in the property.  Ideally this should be a written lease/licence but where this is not possible a legally binding ‘Agreement to Lease’ is acceptable;
• they are not owned by a RSL. TSH SHG is therefore only payable in respect of property in the ownership of:
   
   public bodies e.g. local authorities, Health Authorities, Government Departments etc.;
   unregistered social landlords and co-operatives which are not subsidiaries of RSLs;
   private individual(s) or companies. 

2.2  Lease Terms  

2.2.1  For the purposes of Lease premium calculations, a scheme can be:

• an individual property; OR
• a group of properties forming a single scheme to be worked on under a single works contract.  The properties must be in the same local authority.

2.2.2    As far as security of tenure is concerned it does not matter whether the letting arrangement between the owner of the property and the RSL is a tenancy, lease or licence.
 
2.2.3    The RSL must ensure that the terms of the lease or licence prohibit the owner from terminating the lease or licence before the period of the lease or licence expires.   However, both parties may agree to the insertion of a break clause in the event of the agreement being terminated prior to the date upon which the lease or licence expires.
  
2.2.4   The RSL must ensure that a clause is to the effect that the property owner will reimburse the RSL for any proportion of Grant spent on the property relating to the unexpired time of the lease or licence.
  
2.2.5   Where the owner will not agree to this indemnity clause, the RSL must assess the risk of their responsibility for any Grant recoverable. The Agency will normally expect to Recover the excess Grant, regardless of whether the RSL has been similarly reimbursed by the owner of the property.
  
2.2.6   Because TSH property is not owned long-term by the RSL, it does not qualify for SHG for Adaptations.