45Options for deceased estates of participants

45  Options for deceased estates of participants

 (1) Housing Australia must ensure that each arrangement provides for Housing Australia to be able to recover the Commonwealth share (as valued at the time it is recovered), in accordance with this section, where:

 (a) a sole participant in an arrangement dies; or

 (b) 2 joint participants own the relevant property as joint tenants, and both participants die.

Note: Subsection 13(2) requires Housing Australia to ensure that each arrangement contains such terms and conditions as are necessary to enable it to comply with the requirements of this instrument.

 (2) However, the arrangement must also provide that Housing Australia need not recover the Commonwealth share where:

 (a) the relevant property is inherited by a single beneficiary (or 2 beneficiaries jointly) of the estate of one or both of the deceased participants; and

 (b) each beneficiary applies, in the manner and form approved by Housing Australia, to be accepted as a participant in the arrangement; and

 (c) the requirements in paragraphs 17(a) to (e) (about eligible applicants) are met in respect of each beneficiary at the time of the application; and

 (d) Housing Australia agrees to substitute each beneficiary as a party to, and participant in, the arrangement in respect of the relevant property.

 (3) Housing Australia must ensure that each arrangement provides for Housing Australia to be able to recover the Commonwealth share (as valued at the time it is recovered), where:

 (a) 2 joint participants own the relevant property as tenants in common; and

 (b) one of the participants dies; and

 (c) an individual, other than the surviving participant, inherits the deceased participant’s interest in the property.

 (4) However, the arrangement must also provide that Housing Australia need not recover the Commonwealth share where:

 (a) the deceased participant’s interest in the relevant property is inherited by a beneficiary of the estate of the deceased or by a surviving participant (the successor); and

 (b) the successor applies, in the manner and form approved by Housing Australia, to be accepted as a participant in the arrangement; and

 (c) the requirements in paragraphs 17(a) to (e) (about eligible applicants) are met in respect of the successor at the time of the application; and

 (d) Housing Australia agrees to substitute the successor as a participant in the arrangement in respect of the relevant property.

 (5) Where Housing Australia must recover a Commonwealth share under a provision of an arrangement required by this section, Housing Australia must do so within: