31. F37[(1) The designated local authority shall make an order charging a relevant dwelling in the terms specified in this section as soon as practicable after the designated local authority makes the later of—

(a) the final part payment of a remediation option grant, or a payment of the whole of a remediation option grant under section 18,

(b) the final part payment of an increased grant, or the payment of the whole of the increased grant under section 18A, or

(c) the final payment of an ancillary grant under section 22,

to a person who is a relevant owner by virtue of section 9(3)(b) (in this Chapter referred to as a “relevant owner”).]

F38[(1A) Where the designated local authority makes a payment under section 18A to a relevant owner who is a person referred to in section 18A(5) (in this Chapter referred to as a “retrospective payment”), after the date that the first charge is deemed to have been executed under section 34(2), the designated local authority shall make a second order charging the relevant dwelling in the terms specified in this section as soon as practicable after it makes the retrospective payment.]

F37[(2) Subject to subsections (2A) and (3), a first charge shall create a charge over the relevant dwelling in favour of the designated local authority in the amount of the aggregate of all the payments made to the relevant owner in respect of the relevant dwelling under sections 18, 18A and 22.]

F38[(2A) A second charge shall create a charge over the relevant dwelling in favour of the designated local authority in the amount of the retrospective payment made to the relevant owner in respect of the relevant dwelling under section 18A.]

F38[(2B) For the purposes of this Chapter—

(a) subject to paragraph (b), the making of a second charge under subsection (1A) shall not alter the relevant date,

(b) if a deed of discharge is issued under section 35(1) in respect of the first charge, the relevant date shall be 1 January in the year immediately following the year in which the designated local authority made the retrospective payment,

(c) subject to paragraph (d), on and after the date the second charge is deemed to have been executed under section 34(2)(b), the incremental release shall be applied in accordance with this Chapter, and

(d) the incremental release shall be applied separately to the first charged amount and to the second charged amount.]

(3) A reduction equal to 5 per cent of the charged amount (in this Chapter referred to as an “incremental release”) shall be applied to the charged amount on each anniversary of the relevant date (in this Chapter referred to as the “anniversary”) where a relevant event has not occurred on the anniversary in accordance with section 32(2).

(4) The relevant owner shall provide the following evidence that a relevant event has not occurred on the anniversary to the designated local authority not more than 28 days after each anniversary:

(a) evidence that the relevant owner owned the relevant dwelling on the anniversary;

(b) evidence—

(i) that the relevant owner was, on the anniversary, the landlord of a tenancy of the relevant dwelling registered on the residential tenancies register, or

(ii) that one of the exceptions referred to in section 32(3) applied;

and

(c) an affidavit verifying the evidence referred to in paragraphs (a) and (b).

(5) The designated local authority shall consider the evidence and affidavit provided under subsection (4) and may carry out, with the consent of the relevant owner given pursuant to section 13(2)(a)(xi), such inspections of the relevant dwelling as it considers necessary for the purposes of determining whether an incremental release shall apply under subsection (3), and shall notify the relevant owner where an incremental release applies.

(6) Subsection (1) shall not apply in relation to a second grant.