The HCA has published a framework setting out the details of its new Affordable Homes Programme and is inviting registered providers to put forward proposals for £2.2bn of funding (out of the overall £4.5bn funding pot) for affordable housing during the 2011-15 Spending Review period.
The framework, put together with the Department for Communities & Local Government (DCLG), is a step-by-step guide for providers who wish to apply, working alongside their local authority partners. It outlines the changes in affordable housing provision being introduced for 2011-15, and how this new approach will meet the government’s ambition to deliver up to 150,000 new homes over the next four years.
Key to the new programme is the Affordable Rent product, described as a more flexible form of social housing that will allow providers to charge up to 80% of market rent on properties, potentially increasing revenues and reducing the level of government investment in affordable homes. As part of the new funding offer, providers will also have the flexibility to convert a proportion of their social rented homes to Affordable Rent as part of a package agreed by the HCA, with all of the additional capacity generated used to deliver new affordable homes. The framework will also enable the funding of other housing options including affordable home ownership.
The framework makes clear that proposals must meet local priorities, with discussions between local authorities and providers key to success, says the HCA.
Any provider offering value for money can submit proposals. Existing consortium arrangements are expected to be maintained or expanded and larger providers are encouraged to work with smaller, rural, specialist (e.g. supported housing) or community-based organisations to better reflect local need.
The way in which funding will now be allocated has changed. Unlike the previous funding model of continuous market engagement, providers are now invited to submit proposals for delivery of affordable housing to the HCA for the entire four year period which will be managed through a flexible approach.
HCA chief executive Pat Ritchie said: “This new approach gives increased flexibilities for local authorities and providers to plan ahead and deliver much needed affordable homes. At a time when funding is tight, this new way of operating will allow us to do more with less resources, but it will rely heavily on effective working partnerships, which is where the HCA will play a significant part.”
Housing Minister Grant Shapps said: “With some 4.5m people on social housing waiting lists, it’s clear that not only do we need more homes, but we also need a complete overhaul of the system, to one that offers much more flexibility than the current ‘one size fits all’ approach. “
Additionally, the document outlines how the HCA will assess the bids, and how programme management will operate under the model. It explains the role of the social housing regulator, currently the TSA, and details arrangements for London, where the HCA’s powers are proposed to transfer to the Mayor in April 2012.
Registered Providers have until 3 May to submit proposals to the HCA. Subject to ministerial approval, it is anticipated that initial contracts will be ready in July.
The framework is available to download from the HCA website at
www.homesandcommunities.co.uk/affordable-homes.
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