If the occupier passes away, then what are the eligibility conditions under the HDB 3GEN that determine who gets ownership of the flat?

We have just applied for the 5rm 3gen unit with his mom as the occupier, successfully. However, there is a clause under Eligibility Conditions stating that if Applicant "is ineligible Or become Ineligible at any time after the granting of this Option. HDB shall be entitled to forfeit the Option Fee". Thing is, my partner's mom is getting on in years. What if the unfortunate happens after everything is paid for, what will happen? Would everything including the application be nullified?