Affordable Homes Programme Framework
3/8/2011
Affordable Homes Programme Framework (2011-15) Danielle Gillespie Strategy Manager – North West Wednesday 9 March 2011
1
3/8/2011
Context Reducing public spending Incentives replacing top down targets Targeted investment to support economic growth Institutional change The HCA will be a local agency with national support and influence “ The People you call to get things done”
Spending Review £4.5bn for Affordable Housing Programme (2011-15) £2.3bn – existing commitments £1.8bn – new affordable rent model £0.221bn – mortgage rescue £0.2bn – empty homes/places of change/gypsies & travellers
To deliver c.150,000 homes
2
3/8/2011
Affordable Homes Programme Framework (2011-15) 1. 2. 3. 4. 5. 6. 7.
Principles of the model Guidance on delivery Specifics on Affordable Rent Introduction to other products Programme requirements Contract management London
A1 – Supplementary products A2 - Funding/ output profile A3 – Contract management scenarios A4 – Conversion options A5 – Geographic areas for offers
Key Features Four broad funding streams – – – –
Increased net rental income stream (new/ conversion) Cross subsidy (surplus, RCGF, DPF, disposals, market sale) Reduced costs (land, NHB, efficiencies) HCA funding (minimum to make programme viable)
Offers to cover a four year period
Programme must meet local priorities – Confirmation of LA support
Close collaborative working key – LA/ HCA/ Providers
No regional budgets/ targets
3
3/8/2011
Affordable Rent Form of social housing
Principle element of the programme Set at up to 80% gross market rents (inc service charge) Up-rated by up to RPI + 0.5% for duration of tenancy Minimum 2 year fixed term - flexibility to offer longer tenancies Existing tenants not affected Key issues – – – –
Role of LA Tenancy Policy Housing Benefit Target market PPS3
Conversions Crucial element to generate sufficient capacity Proportion offered to take account of tenant mobility & risk No ring fencing of capacity but encourage providers to invest in same broad housing market area Primarily to Affordable Rent but flexibility to convert to shared ownership or market sale where appropriate
4
3/8/2011
Other Products Affordable home ownership where this is a local priority and offers value for money – Shared ownership & Equity Options ‘Homebuy’
Funding for social rented housing may be considered in limited circumstances i.e. decants
Other programme elements: – – – –
Mortgage Rescue Homelessness Change Programme Traveller Pitch Funding Empty Homes
Offers Programme must meet local priorities Offers to be compiled at the LIP level – Supply, conversions, mix & delivery profile – Firm details for early years/ indicative for later programme Ongoing and meaningful RP, LA & HCA dialogue Consortia and collaborative working is encouraged Local authority and TSA support will be sought (as proposals firm up)
5
3/8/2011
Assessment & Negotiation Assessment criteria – Meet local needs and priorities in proposed locations – Offer good value for money – Have a realistic prospect of delivery – Continue to meet the TSA’s Standards
National moderation – Scale, coverage, range, timing – Scope to revise offers
Revised offers will require final sign off by Board
Contract & Programme Management All providers will enter into a standard form framework contract Flexible contract / performance management recognising change over 4 year period – Quarterly Reviews – Joint Strategic Annual Review
Parameters can be flexed (conversions, supply, timescales but not grant per unit) Payment on completion – Flat rate agreed with each provider – AR & LCHO (inside & outside London)
6
3/8/2011
Timetable Publication of the framework inviting offers for the 2011-15 Affordable Homes programme
14 February 2011
Providers developing offers
Feb and March 2011
Deadline for submission of offers
3 May 2011
Assessment/negotiation of offers
May and June 2011
National aggregation and analysis of programme
20 June – 4 July 2011
HCA London Board (London part of proposed programme) and Ministerial and national HCA Board sign off of aggregate programme (subject to provider contracts)
W/C 4 July 2011
Initial contracts signed
July 2011
7
Affordable Homes Programme Framework (2011-15) Danielle Gillespie Strategy Manager – North West Wednesday 9 March 2011
1
3/8/2011
Context Reducing public spending Incentives replacing top down targets Targeted investment to support economic growth Institutional change The HCA will be a local agency with national support and influence “ The People you call to get things done”
Spending Review £4.5bn for Affordable Housing Programme (2011-15) £2.3bn – existing commitments £1.8bn – new affordable rent model £0.221bn – mortgage rescue £0.2bn – empty homes/places of change/gypsies & travellers
To deliver c.150,000 homes
2
3/8/2011
Affordable Homes Programme Framework (2011-15) 1. 2. 3. 4. 5. 6. 7.
Principles of the model Guidance on delivery Specifics on Affordable Rent Introduction to other products Programme requirements Contract management London
A1 – Supplementary products A2 - Funding/ output profile A3 – Contract management scenarios A4 – Conversion options A5 – Geographic areas for offers
Key Features Four broad funding streams – – – –
Increased net rental income stream (new/ conversion) Cross subsidy (surplus, RCGF, DPF, disposals, market sale) Reduced costs (land, NHB, efficiencies) HCA funding (minimum to make programme viable)
Offers to cover a four year period
Programme must meet local priorities – Confirmation of LA support
Close collaborative working key – LA/ HCA/ Providers
No regional budgets/ targets
3
3/8/2011
Affordable Rent Form of social housing
Principle element of the programme Set at up to 80% gross market rents (inc service charge) Up-rated by up to RPI + 0.5% for duration of tenancy Minimum 2 year fixed term - flexibility to offer longer tenancies Existing tenants not affected Key issues – – – –
Role of LA Tenancy Policy Housing Benefit Target market PPS3
Conversions Crucial element to generate sufficient capacity Proportion offered to take account of tenant mobility & risk No ring fencing of capacity but encourage providers to invest in same broad housing market area Primarily to Affordable Rent but flexibility to convert to shared ownership or market sale where appropriate
4
3/8/2011
Other Products Affordable home ownership where this is a local priority and offers value for money – Shared ownership & Equity Options ‘Homebuy’
Funding for social rented housing may be considered in limited circumstances i.e. decants
Other programme elements: – – – –
Mortgage Rescue Homelessness Change Programme Traveller Pitch Funding Empty Homes
Offers Programme must meet local priorities Offers to be compiled at the LIP level – Supply, conversions, mix & delivery profile – Firm details for early years/ indicative for later programme Ongoing and meaningful RP, LA & HCA dialogue Consortia and collaborative working is encouraged Local authority and TSA support will be sought (as proposals firm up)
5
3/8/2011
Assessment & Negotiation Assessment criteria – Meet local needs and priorities in proposed locations – Offer good value for money – Have a realistic prospect of delivery – Continue to meet the TSA’s Standards
National moderation – Scale, coverage, range, timing – Scope to revise offers
Revised offers will require final sign off by Board
Contract & Programme Management All providers will enter into a standard form framework contract Flexible contract / performance management recognising change over 4 year period – Quarterly Reviews – Joint Strategic Annual Review
Parameters can be flexed (conversions, supply, timescales but not grant per unit) Payment on completion – Flat rate agreed with each provider – AR & LCHO (inside & outside London)
6
3/8/2011
Timetable Publication of the framework inviting offers for the 2011-15 Affordable Homes programme
14 February 2011
Providers developing offers
Feb and March 2011
Deadline for submission of offers
3 May 2011
Assessment/negotiation of offers
May and June 2011
National aggregation and analysis of programme
20 June – 4 July 2011
HCA London Board (London part of proposed programme) and Ministerial and national HCA Board sign off of aggregate programme (subject to provider contracts)
W/C 4 July 2011
Initial contracts signed
July 2011
7
