The local housing authority shall not entertain an application for assistance under this Part if—
an application has been made in respect of the defective dwelling (whether before or after the relevant designation came into operation) for renovation grant or common parts grant under Chapter I of Part I of the Housing Grants, Construction and Regeneration Act 1996 (grants for renewal of private sector housing)., and
the relevant works in relation to that grant include the whole or part of the work required to reinstate the dwelling,
unless the grant application has been refused or has been withdrawn under subsection (2) or the relevant works have been completed.
Where a person has applied for such a grant in respect of a dwelling and—
the dwelling is a defective dwelling, and
the relevant works include the whole or part of the work required to reinstate it,
he may withdraw his application, whether or not it has been approved, if the relevant works have not been begun.
In this section "relevant works", in relation to a grant, has the same meaning as in Part XV.