5  Grant Recovery

5.1  General

5.1.1  The RSL must notify the Agency immediately should the achieved lease or licence life of the scheme fail to correspond with the lease or licence life on which the SHG payment was calculated.

5.1.2  An event that prevents the scheme being used for the purposes and period originally intended, or a disposal to an organisation other than an RSL will result in Grant recovery.  See Recovery section 3

5.2  Premature Termination of Lease

5.2.1  Where two complete years of life are not achieved from the date of the lease, Grant will be recovered in full.

5.2.2  If more than two years life have been achieved, the amount of Grant recoverable will be reduced pro-rata for the proportion of the life, in completed months, which has been achieved.

5.2.3  SHG will be recoverable from the RSL even if the RSL is unable to obtain sufficient compensation from the owner for the early termination of the lease.

5.2.4  Recovery in this case means that the RSL can choose between repayment to the Agency and recycling through an RCGF.

5.2.5  RSLs must not grant a lease/licence to an unregistered social landlord or agency on a Grant funded property. If this were to happen, it is classed as a disposal, triggering Grant recycling by the RSL. See the Recovery Chapter