Angus Council is pursuing enforcement action with a Fife builder over the restoration of a historic property.
John Cape, from Newport, had applied for almost £64,000 in heritage cash to save an 18th century former hotel and warehouse in Kirriemuir last year.
But locals have been in uproar over the state of the former Hook’s Hotel in Bank Street, which saw work begin in March before slowing.
The local authority pulled the prospect of funding but has told Mr Cape he must affect repairs within 20 days or it will instruct work and bill him for the balance.
Hook’s was sold for almost £250,000 in 2005 after previous owners Graham and Tracey Douglas moved on, and was left empty for close to a decade before Mr Cape formed Kilnburn Developments to redevelop the site.
Planning permission and listed building consent were later granted for partial demolition and conversion into a shop, four flats, two cottages, and a three-bedroom house in the former warehouse.
The local authority has now served an enforcement notice on Mr Cape, who has been given 20 days to install temporary drainage for rainwater and a “robust” roofing measure until slates can be relaid.
Senior planning officer Kirsty Macari explained: “There is currently no rainwater disposal system to the front or rear.
“This means that water is washing down the face of the listed building and will be finding its way into the interior.
“There is clear evidence that the roof covering is defective in some areas, leading to water damage along with a point of entry for vermin.
“Without these works, the condition of the listed building will continue to deteriorate.”
The Kirriemuir Conservation Area Regeneration Scheme (CARS) was set up to direct a £1.1 million Angus Council and Historic Scotland regeneration package for Kirrie town centre’s prominent but vacant properties.
A meeting of the steering group heard a funding offer had been withdrawn, with the minutes noting: “Since the decision of the steering group at their last meeting in September to withdraw grant funding awarded to the above project, there has been no further correspondence from the applicant other than to acknowledge receipt of the formal letters from Legal Services and to advise that his solicitor would be instructed.
“To date there has been no further work carried out within the site.
“The condition of the building continues to be monitored by the council’s planning service.”
An Angus Council spokesman said: “Grants are not paid in advance of works being carried out and payment is only made where eligible work has been undertaken.
“While a proportion of eligible works was paid, it is a matter of public record that grant funding was subsequently withdrawn.
“However, it is not appropriate to comment further at this time.”
Mr Cape could not be reached for comment.