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1.1 Purpose

1.1.1 This chapter sets out procurement and scheme delivery requirements in relation to the delivery of programme. This includes the types of schemes eligible for grant funding.

1.1.2 Please note that Homes England is working through the operational parameters of the Affordable Homes Programme (AHP) 2021 to 2026. Whilst it is anticipated that the guidance in this chapter will also apply to the AHP 2021 to 2026, further details will be provided once any changes have been agreed. You can sign up for email updates from Homes England.

1.2 Context

1.2.1 Homes England is constantly striving for more efficient and effective ways of procuring affordable housing.

1.2.2 鈥業mproving efficiency鈥� is another way of saying 鈥榞etting better value鈥�. This can be achieved in a number of ways (more dwellings of the same quality for the same cost, the same number of dwellings at a higher quality for the same cost, and many other permutations involving numbers, cost, quality and time). In all this, the quality of the dwellings is important, and we encourage providers to pursue design excellence through a number of routes, including:

• The use of design champions within their organisation
• Appointing consultants who are able to provide high quality design services
• Partnering with suppliers
• Collating and making use of customer feedback and resident satisfaction

1.2.3 One way in which Homes England can increase its efficiency is if housing providers increase their cost efficiency, and therefore reduce their need for grant or Other Public Subsidy. We therefore values cost-efficient providers as well as those who maintain quality.

1.2.4 Providers are expected to strive constantly to improve their efficiency and effectiveness in delivering affordable housing, both in terms of the level of grant required and in meeting the wider strategic objectives of the AHP 2021 to 2026. For more information on the criteria against which AHP 2021 to 2026 Continuous Market Engagement (CME) bids will be assessed please see the assessment process set out in chapter 6 of this guide, section 9.3.

1.2.5 Homes England is committed to Government policy that looks to ensure that providers maintain the quality of their existing stock, as well as delivering good quality new affordable homes.

2.1 General

2.1.1 Effective procurement and project management are both crucial for the delivery of schemes on time, on budget and to ensure an appropriate level of quality is maintained.

2.2 Mortgageability and insurability of housing constructed using a non-traditional technique

2.2.1 When an innovative house building system is to be used, providers must seek suitable reassurances that:

• The system is capable of achieving the necessary statutory approvals, including Building Regulations
• The system has been assessed and confirmed as suitable for housing use by an appropriate independent technical approvals authority (the assessment should take account of the suitability of claddings and other elements proposed for use in conjunction with the system)
• The system, with reasonable cyclical and planned maintenance provision, has been designed for a life expectancy of at least 60 years

For comments on the background to this requirement, please see below.

For a list of organisations who are able to make these assessments please see below.

3.1 General

3.1.1 This section contains the scheme types for which funding is available, and their requirements.

3.1.2 Providers should note that the scheme type classifications used by Homes England are driven by our funding issues, and are NOT recognised property development or project management terms familiar to architects, surveyors, developers, builders or others. Providers should therefore avoid using this funding鈥搒pecific jargon when communicating with others, and use more widely recognised terms, to avoid misunderstandings.

3.2 New Build requirements and scheme types

3.2.1 Longevity requirement

These properties must have a life expectancy of at least 60 years. Please refer to the guidance below for further information.

In addition, the construction system used must:

• be capable of achieving necessary building regulations and other statutory approvals and
• have been assessed and confirmed as suitable for housing by an independent approvals authority

3.2.2 Scheme types

• Acquisition and Work
• New Build Works Only
• Off the Shelf (and Existing Satisfactory)
• Package Deal (Including Land)
• Regeneration

Please refer to the guidance for further information.

3.3 Rehabilitation requirements and scheme types

3.3.1 Longevity requirement

These properties must have a life expectancy of at least 30 years after the provider has completed the works, repair, or improvement. For further comment please see paragraph 3.2.1 above.

The provider must ensure that an inspection of all properties requiring works is carried out by relevantly qualified experienced and professionally indemnified technical consultants or relevantly qualified and experienced members of staff. Please also refer to the Shared Ownership chapter of this guide (paragraphs 5.3.1-4) regarding lease requirements in respect of Shared Ownership provided under the rehabilitation route.

3.3.2 Scheme types

3.3.2.1 Rehabilitation schemes involving purchase:

• Acquisition and Works
• Existing Satisfactory
• Purchase and Repair
• Package Deal (including land)

3.3.2.2 Rehabilitation schemes not involving purchase

• Works Only
• Re-improvements
• Conversions

Whilst re-improvements and conversions are no longer bespoke scheme types, they are still allowable scheme types for providers to take. Please refer to the guidance for further information.

3.4 Insurance requirements

3.4.1 It is a condition of grant for all schemes that both during development and thereafter, providers insure the accommodation with reputable insurers for its full replacement value. An exception to this is the ability for local authorities to adopt a self-insurance approach to their schemes (see paragraphs 3.4.6 to 3.4.10).

Please see guidance below for further information.

3.4.2 In addition to the specified risks of loss or damage to the building caused by fire or aircraft, we require 鈥榦ther risks鈥� to be covered as follows:

For Rehabilitation property - from the exchange of contracts to purchase until practical completion of the whole or relevant part of the works:

• Explosion, lightening, earthquake
• Storm, tempest, flood (but not frost)
• Bursting, leaking or overflowing of water tanks, water apparatus, water pipes, or sewage pipes

For Rehabilitation and New Build property - from practical completion of the whole or relevant part of the works:

• As for rehabilitation property above plus
• Subsidence, ground heave, or landslip of the site on which the building stands

3.4.3 The cover outlined under 鈥榦ther risks鈥� above may be subject to the normal insuring exclusions e.g. war, invasion, act of foreign enemy, hostilities, civil war, rebellion, revolution, insurrection, usurped power, loss or damage caused by ionising radiations or contamination by radioactivity from any nuclear fuel, radioactive toxic, explosive nuclear assembly or nuclear components thereof, or pressure waves caused by aircraft or other aerial devices travelling at sonic or supersonic speeds.

3.4.4 Homes England requires prior notification of any other exclusions.

3.4.5 Terrorism is a normal insuring exclusion and falls outside our insurance requirements. Whether or not to insure for this risk is a matter for individual providers to decide according to the perceived risk.

3.4.6 Self-insurance by local authorities

3.4.7 Homes England has previously permitted local authorities to adopt self-insurance during and after development of their affordable housing schemes, rather than seeking insurance from an external organisation (with prior agency agreement).

3.4.8 In the AHP 2021 to 2026, where local authorities adopt a self-insurance approach on a programme or scheme basis, prior Homes England agreement is not required. As public bodies we expect local authorities to have appropriate insurance arrangements in place to mitigate the potential risk of unforeseen events.

3.4.9 Local authorities should consider their approach to insurance of AHP 2021 to 2026 schemes in light of the contractual requirements, obligations and actions in the case of any default as set out in their grant agreement with Homes England. In particular, clause 17 of the grant agreement regarding the events that may trigger a grant to be withheld by Homes England or other actions to be taken. This clause sets out a number of default trigger events including the issue of a section 114 report made under section 114(3) or section 114A of the Local Government Finance Act 1988, or a section 15 direction made by the Secretary of State under section 15 of the Local Government Act 1999.

3.4.10 All information concerning these self-insurance arrangements should be held on file by the local authority to meet Homes England鈥檚 compliance audit requirements.

3.5 Modern Methods of Construction (MMC) categories for schemes

3.5.1 Where homes are being produced using MMC, all providers are required to assign them to one (or more) of the seven category definitions of MMC listed and summarised below. For funding through the AHP 2021 to 2026, this is regardless of whether funding is accessed through CME or through a Strategic Partnership. This information will be collected through Homes England鈥檚 Investment Management System.

3.5.2 The seven categories are based on the framework developed by a specialist sub-group of the Ministry of Housing, Communities and Local Government鈥檚 MMC cross-industry working group. For more detail and the full report please see Modern Methods of Construction working group: developing a definition framework.

3.5.3 The seven MMC categories identified in the framework are as follows:

1. Pre-manufacturing (3D primary structural systems)
2. Pre-manufacturing (2D primary structural systems)
3. Pre-manufacturing components (non-systemised primary structure)
4. Additive manufacturing (structural and non-structural)
5. Pre-manufacturing (non-structural assemblies and sub-assemblies)
6. Traditional building product led site labour reduction / productivity improvements
7. Site process led site labour reduction / productivity / assurance improvements

3.5.4 Please refer to the framework document for the full details but below is a summary of each category.

3.5.5 In the AHP 2021 to 2026, Strategic Partnerships must achieve at least 25% of homes delivered as MMC. The selected 25% of homes should use the above framework to categorise the MMC delivered on a project. Organisations can deliver the requirement using any of the categories in the framework. However, we expect organisations to use categories 1, 2 or with construction processes that achieve a pre-manufactured value (PMV) score of 55% or above.

3.5.6 PMV is a measure of the proportion of construction activity that takes place away from the final worksite. The greater the PMV, the greater the value of works delivered off-site or near site and by proxy, the likely greater related improvements in site productivity, programme speed and final product quality.

3.5.7 The PMV is calculated as the financial proportion of a construction project鈥檚 Gross Construction Cost derived through pre-manufacturing. Pre-manufacturing includes all costs incurred prior to the final installation at the construction workface, including all materials, the total labour applied in pre-manufacturing processes, fixed and variable manufacturing overheads and associated plant, logistics and transportation costs. Gross Construction Costs include all pre-manufactured costs, on site labour costs, all preliminaries costs, overhead, profit and risk. .

3.5.8 Elements of schemes produced using MMC are considered a 鈥榗omponent鈥� part contributing to the overall grant funded home. Whilst in some instances these component parts may be portable, once completed the grant funded home is deemed to be secure and providers cannot remove or relocate component parts without dismantling the entire home (pipes, plumbing, electrics, fixtures and fitting etc) - all of which are included in the build costs. Attempting to do so would make the home uninhabitable and would be deemed a cessation of use for grant purposes.

3.6 Valuations

3.6.1 Overview

Valuations are required to help ensure that value for money is achieved for the funding requested and to ensure that the provider is using appropriate, accountable, and transparent internal risk assurance procedures when acquiring land and property.

Not all schemes will require a valuation, for example, Works Only schemes. Homes England would expect a valuation to be carried out for all schemes that involve:

• an acquisition event of any kind (even for an acquisition at nil value/cost); and/or
• a grant payment in respect of acquisition (even where the land/property was already in the ownership of the provider)

All valuations must be carried out by a member of the Royal Institution of Chartered Surveyors (RICS) who is a Registered Valuer. All valuation reports must be completed in line with the RICS Valuation - Global Standards 2020 and the RICS Valuation 鈥� Global Standards 2017 UK national supplement, (collectively known as 鈥淭he Red Book鈥�), as amended, extended or updated from time to time.

A valuation does not necessarily need to be undertaken by an individual/organisation external to the grant recipient organisation, provided that the valuer is a MRICS Registered Valuer and adheres to the above standards (see 3.6.2 below for the exceptions to this). In particular, when appointing an individual/organisation that is not fully independent of the grant recipient organisation, due consideration should be given to ensure there is no actual, or potential for, conflict of interest in the assessment of the valuation and that the grant recipient organisation is fully satisfied that any valuation provided will be impartial.

A provider is required to have a valuation report on the scheme file when a bid is submitted, or for a Strategic Partnership when a site is activated. The valuation report should be made available at bid or Active Site stage if requested. A failure to provide the valuation report if requested may result in an unsuccessful bid or requirement to deactivate an Active Site.

The valuation report must be directly applicable to the grant funded homes. Where acquisitions (of land or property) have other mixed uses or tenures (for example, an office conversion with other ground floor uses, or a land parcel with Section 106 or market homes) the valuation should support only the homes contained in the bid.

The valuation report should include the market values and/or market rents of the completed homes to support the information submitted in IMS.

The valuation should be appropriate to the nature of the acquisition. For example, where the provider is acquiring a property on a short term rental lease the valuation should reflect this.

If providers are unsure about the valuation requirements for a particular scheme, they should contact their Homes England Provider Management Team lead in the first instance.

3.6.2 Sales Valuations

In the case of valuations supporting the initial sale (and future staircasing transactions) of a Shared Ownership home, and sales through the Rent to Buy, Right to Acquire and Social HomeBuy programmes, the valuation must be carried out by an external valuer as defined in the RICS Red Book. This is to ensure that the RICS valuer commissioned is an individual or organisation separate from the grant recipient. Please refer to the Shared Ownership chapter, section 2.3.1.

RICS offers a 鈥楩ind a Surveyor鈥� service if required which can be found at .

3.6.3 Valuation requirements at bid submission stage and for Strategic Partnerships

As part of any bid for funding, a provider must submit in IMS the current value and the purchase price of the land or property. The current value in IMS should be supported by the valuation report and the expectation is that the purchase price is no higher than the valuation.

Where a leasehold interest is to be acquired (for example, Lease and Repair schemes where the lease length is between 5 and 30 years), the cost of the lease to the provider must be submitted as the purchase price. The cost of the lease should be the rent expressed as a capital sum. This figure should be supported by a Red Book valuation of the market rent based on the proposed lease terms.

Where an acquisition of land/property has occurred in the past and a bid was not submitted at the time of acquisition, providers will need to obtain a valuation report prior to submitting a bid for funding that confirms the value of the land/property as at exchange of contracts.

Indicative bids for schemes (see Programme Management chapter, section 2.4) do not require a Red Book valuation at bid stage. However, a valuation that confirms the value of the land or property on the date of exchange (for auction purchases refer to contract date) must be obtained prior to first grant claim (or date profiled out in IMS).

For Strategic Partnerships the purchase price of the land or property must be supported by the valuation report and the acquisition cost recorded in the Completion entry in IMS must be no higher than the valuation. Any acquisition costs recorded against an Active Site through the Quarterly Development Expenditure must also be supported by the valuation report. In all circumstances the valuation report must be valid at the point the acquisition took place.

3.6.4 Valuation validity period

Providers must ensure that the valuation is valid at exchange of contracts (for auction purchases refer to contract date). Homes England accept three months as a validity period unless otherwise stated on the valuation report. When a provider has to extend a valuation validity this must be completed in accordance with RICS guidance and the reason recorded on file for audit purposes.

If the original Red Book valuation鈥檚 validity period has expired at exchange of contracts, written confirmation that the original valuation remains valid at the date of exchange is required. The content and detail of the written confirmation should be proportionate to the complexity and/or value of the subject and must be prepared by a Registered Valuer. In circumstances where the Registered Valuer confirms a change to the current value, the written confirmation should clearly state the reasons for the change in the value.

Due to the possible value for money and grant implications, where a reduction to the original valuation has been subsequently confirmed in writing by the Registered Valuer or a reduction has occurred to the purchase price, providers must submit a relevant comment when updating IMS with the variances.

4.1 Bringing empty homes back into use

4.1.1 Registered Providers are able to bring empty homes back into use as Affordable Rented homes through either lease and repair or as purchase and repair (see paragraph 3.2.2.2).

4.1.2 Eligible Properties (lease and repair)

4.1.2.1 Empty properties must not be existing social housing owned by any Registered Provider, either the grant recipient or other provider.

4.1.2.2 The minimum lease period for a property is five years with a maximum of 30 years.

4.1.2.3 Lease and repair empty homes accommodation is excluded from the Right to Acquire although an empty homes tenancy might count towards a Right to Acquire applicant鈥檚 residency requirements. Please see Right to Acquire section 2.2.

4.1.2.4 Where appropriate for the client group, leased empty homes may be used for supported housing. Please see the Specialist Homes for Older, Disabled and Vulnerable People chapter for more information.

4.1.2.5 Lease and repair properties should be refurbished to the current Decent Homes standard as a minimum (or any replacement or update of this standard) if funded by Homes England through the AHP 2021 to 2026. Where it is proposed that properties will be leased for longer than 10 years, providers are encouraged to exceed the Decent Homes standard wherever possible.

4.1.2.6 While existing social housing is not eligible other property owned by other Registered Providers and/or local authorities is eligible:

• Former Right to Buy properties that do not currently meet the definition of social housing and are in private ownership
• Non-residential properties owned by Registered Providers or local authorities that has had no public subsidy in the past e.g. commercial, agricultural buildings or community facilities such as community halls
• Properties that are already owned by the Registered Provider (including other, registered or unregistered organisations that are part of the provider鈥檚 group structure) are not eligible for grant funding under lease and repair. Providers looking to bring their own properties back into use should see section 3 above

4.1.2.7 Aside from those listed above, there are no restrictions on the current ownership of properties to be brought back into the programme. These may include, for example:

• Public bodies e.g. health authorities, Ministry of Defence, government departments etc.
• Unregistered landlords and co-operatives which are not subsidiaries of Registered Providers
• Private individual(s) or companies.

4.1.3 Ending a tenancy (Lease and Repair)

4.1.3.1 Funding for lease and repair empty homes is provided to utilise properties with a 鈥榣ife鈥� of less than 30 years. At the end of the this 鈥榣ife鈥�, Registered Providers will be required to offer timely and reasonable advice and assistance to the existing tenants to help them find suitable alternative accommodation in line with the requirements of the Housing for Rent chapter, section 3.

4.1.3.2 Acknowledging the time-limited availability of lease and repair properties, Registered Providers鈥� strategies must incorporate rental terms that sit within the overall lease length on the property.

4.1.4 Grant Recovery

4.1.4.1 Grant will be recoverable when a relevant event occurs as specified in the Grant Recovery chapter, section 3. Grant will be recovered in respect of any unexpired term of the lease, regardless of whether the lease is terminated by the owner or the Registered Provider, and whether or not Registered Providers have been similarly reimbursed by the property owner.

4.2 Move On Fund

4.2.1 The Move On Fund aims to free up hostel and refuge spaces by increasing the availability of affordable move-on, or second stage housing, for rough sleepers and those in hostel accommodation, and victims of domestic abuse currently living in refuges who are ready to leave this type of provision but might otherwise not be in a position to access the next stage of housing.

4.2.2 Move-On for Survivors of Domestic Abuse Standard

4.2.2.1 Where organisations are providing move-on accommodation for those who are ready to leave domestic abuse refuges, they must be able to show that they have considered 鈥� and will deliver where possible 鈥� the following criteria.

• Gender specific properties 鈥� For a survivor to feel safe once they are ready to move-on, they must not be expected to move into 鈥榤ixed accommodation鈥�. This can range from men and women being on the same floor, or women only and male only floors but with access to the same front door. Bidders should also consider where it isn鈥檛 appropriate to house heterosexual survivors with LGBTQ+ survivors in mixed accommodation.
• Varying property sizes 鈥� As a victim of domestic abuse can vary from a single person to a victim with a family, bidders must show that they are providing varying property sizes. We suggest property options of studio, one bed and two bed size and also properties that can house large families.
• Community Feel 鈥� Where bidders are providing dispersed accommodation, they must show how they have tried to keep the properties close to each other within the local area. This allows the survivors who have left the refuge to feel as if they are in a community and they are not on their own. This is especially important for those who have fled their family home, their local area and their friends and family. This also helps the refuge workers to provide support to survivors. (We are aware this can only be delivered if properties are available, however, we require that bidders show how they have attempted to meet this criteria, where possible).
• Safety of property 鈥� Bidders must show how they have made the necessary safety adaptations to all properties for those moving out of a refuge. Such as: fire proof doors; anti-arson letter box; locked windows and doors; strengthened glass; fire exits are secured; CCTV; home security alarms (with video etc.); external property lighting; and, properties close to transport links. If possible, it would also be beneficial to have a separate room built within the property for an office for the support workers.

5.1 General

5.1.1 This section sets out our property purchase requirements.

5.1.2 Where providers make speculative purchases they do so at their own risk and cannot pre-empt our investment decisions. Homes England cannot guarantee future funding and providers must accept the risks involved in making such purchases.

5.2 Public sector purchases

5.2.1 Purchases of land from local authorities and other public sector bodies must be considered carefully in order to avoid providers having to provide, non-monetary consideration but without an appropriate reduction in the monetary consideration (i.e. the price) paid by providers.

5.3 Property title

5.3.1 Homes England requires that when providers acquire an interest in a property or where works are to be done, the property must offer 鈥榞ood title鈥�. For guidance on what 鈥榞ood title鈥� means, please see below.

5.3.2 Homes England understands that where providers are unable to demonstrate 鈥榞ood title鈥� they may have 鈥榩ossessory title鈥� supported by an indemnity insurance which could 鈥榩ay off鈥� a third party, who at a later date was able to provide documentary evidence of 鈥榞ood title鈥� to that land. Where no other route is available to the provider we will consider funding on the basis that:

• Providers agree to bear any risk if challenged
• They accept that grant repayment would be required if the property was no longer available for the purposes for which it was funded

5.3.3 In the unlikely event that a third party demonstrated 鈥榞ood title鈥� but was not willing to be 鈥榩aid off鈥� by the insurer the Registered Provider would need to contact their Homes England Provider Management lead accordingly.

6.1 General

6.1.1 Where a provider wishes to transfer property or land to another provider they may need to notify the Regulator of Social Housing (for example if it is occupied, the disposal is to a profit-making provider, or if the disposal will significantly reduce the provider鈥檚 level of stock). Please see the Regulator鈥檚 website for further details.

6.1.2 Providers must notify any local authority that has an interest in the property.

6.1.3 There is no transfer process to be followed when providers enter into management agreements without a change of property ownership (please see Management Arrangements in the Programme Management chapter).

6.1.4 There is no transfer process to be followed when non-profit providers that are community benefit societies dispose of their entire stock to another provider through a Transfer of Engagements (under section 110 of the Co-operative and Community Benefit Societies Act 2014). Providers should review the guidance on notifications of restructures on the Regulator鈥檚 website.

6.1.5 A disposing provider must comply with the terms of any loan secured on the property.

6.1.6 For all transfers between or to providers, where the property concerned has been allocated capital grant, receiving providers must maintain adequate records of that capital grant for future reference should that property become subject to our grant recovery rules. Please see 6.2.2.

6.2 Transfers of grant funded property between providers

6.2.1 Where property has received Housing Association Grant, Social Housing Grant, or Social Housing Assistance (including Recycled Capital Grant Fund, Disposal Proceeds Fund or Rent Surplus Fund) providers do not need to notify Homes England where that property (or properties) has transferred.

6.2.2 Property transfers or disposals between providers are not deemed a Relevant Event for grant recovery purposes. Responsibility for grant will pass from the transferring provider to the recipient provider. However, should a subsequent relevant event occur post-transfer then the grant associated with a property (or properties) may be recoverable. Please see the Grant Recovery chapter for more detail.

6.3 Transfers from local authorities and other public sector bodies

6.3.1 Housing transfers (large scale stock transfers from public sector bodies) are designed to be fully funded over the period of the business plan without additional grant.

6.3.2 Grant shall not be paid towards the cost of acquiring or improving tenanted stock acquired from a public sector body. The Ministry of Housing, Communities and Local Government Housing Transfer Guidance, says that the valuation and the provider鈥檚 business plan should provide for all works required over a 30 year period as a minimum, taking account of demand, viability and stock restructuring. Where there are known plans for regeneration, the housing costs should also be included in the business plan.

6.3.3 In exceptional circumstances we may consider whether new grant may be made available where providers can demonstrate they are unable to fund delivery of local authority stock transfers, including those associated with regeneration proposals, without assistance. Eligibility for new grant for providers taking transfers of local authority stock will be subject to a full bid assessment against AHP parameters. In some cases eligibility will depend on the date of transfer 鈥� see 6.3.11.

6.3.4 When drawing up their business plans and considering future investment needs, providers cannot assume that grant will be available at any point in the future. Homes England will not consider bids for grant unless the proposals fit with the priorities for investment in the Local Investment Plans or similar agreed documentation and the resources are available. Please refer to the guidance for further information.

6.3.5 Cases will only be considered for funding where the works are essential to provide good quality homes for the residents and the additional cost cannot be managed by adjustments to the Business Plan. For further guidance please see below.

6.3.6 Definition of types of work

Major repairs

Improvements and remodelling

Demolition and rebuilding

New development of vacant sites

Transfers of tenanted stock from other public sector bodies

6.3.9 Homes England鈥檚 Growth Team will make decisions about funding in the context of Local Investment Plans or similar agreed documentation and local priorities. Requests for funding will be considered in the context of the overall programme and if it is not deemed to be of sufficient priority or resources are not available, it will not be funded, even if the circumstances set out above apply.

6.3.10 Where funding is made available, grant will only be paid on a 鈥榳orks only鈥� basis.

6.3.11 For stock transferred before 1 April 1997, grant may be available for redevelopment on an Acquisition and Works basis with the eligible acquisition cost being the lower of the outstanding attributable debt or the current valuation. This would only be on an exceptional basis where the project was accorded the highest priority by the local authority. Providers must be able to demonstrate that at the time of transfer the valuation assumed a continuing rental stream from those units and that it was reasonable to do so i.e. there were no plans to demolish.

6.4 Transfers of stock developed by unregistered bodies under section 27A of the Housing Act 1996/2004 (via the ADP 06-08 and NAHP 08-11)

6.4.1 Transfers of stock funded under section 27A of the Housing Act 1996/2004 developed and retained by an unregistered body.

6.4.1.1 Where an unregistered body has developed property with grant under section 27A and retained it as landlord (鈥榬etained ownership model鈥�), the property will be subject to a Homes England rentcharge secured on the property title. The landlord will be contractually bound to manage and retain the properties for the agreed purposes strictly in accordance with the terms of the rentcharge and may only dispose subject to our consent and recovery of grant and uplift as specified. Consent to disposals other than exempted disposals (such as owner occupier staircasing) is at our absolute discretion and may be subject to additional conditions dependent on the status of the recipient.

6.4.2 Transfers of stock funded under section 27A of the Housing Act 1996/2004 that were developed by an unregistered body and transferred to a Registered Social Landlord at completion.

6.4.2.1 Where a Registered Provider is the landlord of property developed by unregistered body under section 27A and transferred to it at the completion (鈥榓greed transfer鈥� model) it will have automatically become obliged under section 27B of the Housing Act 1996/2004 to treat the vested grant as if it were section 18 grant received directly. The Registered Provider is therefore obliged to ensure the stock is managed in accordance with all current Regulatory standards.

6.4.3 Transfers of stock developed under section 27A of the Housing Act 1996/2004, developed by an unregistered body on land already in the ownership of the Registered Provider.

6.4.3.1 Where a Registered Provider is the landlord of property developed under section 27A by an unregistered developer on land (the Registered Provider) already owned (鈥榥on owning model鈥�) it will be subject to a Homes England deed secured on the title. This deed contractually binds the landlord to treat the grant as if received directly under section 19 (as this transfer of obligations does not occur automatically in event of no transfer of land). The Registered Provider is obliged to ensure the stock is managed and disposed in accordance with the terms of the charge. Disposals where there is a charge and other than exempted disposals (as outlined in the Recovery Determinations - such as shared ownership staircasing) are subject to our approval and may be subject to additional conditions dependent on the status of the recipient.

6.5 Transfers of property funded under section 19(6) of the Housing and Regeneration Act 2008

6.5.1 Where property funded under section 19(6) of the above Act is transferred to another provider, the provisions of sub-sections 6.1 to 6.2 above will apply.

6.5.2 Where property funded under section 19(6) developed by a provider that is not a former Registered Social Landlord is transferred to an provider that was a Registered Social Landlord the provisions of sub-section 5.5 above will apply; unless the organisation was previously a Local Authority and the property was subject to a Large Scale Voluntary Transfer.

6.5.3 Where property subject to a Local Authority Large Scale Voluntary Transfer is involved the provisions of sub-section 6.3 will apply.

6.5.4 Reporting and audit requirements for providers

For grant funded property that has been transferred to other providers, providers must forward a letter to the transferring organisation requiring that it will adhere to our published requirements in respect of rents, service charges and on-going management and marketing arrangements etc. A copy of this letter must also be sent to Homes England鈥檚 Historical Grants team at grant_notifications@homesengland.gov.uk.

7.1 General

7.1.1 Providers must:

• Obtain detailed planning permission according to the requirements and timescales outlined in the Programme Management chapter, section 4.2.2
• Have obtained building regulation approval prior to the completion of the development and
• Have made best endeavours to have any planning conditions and/or reserved matters signed off by the planners prior to the completion of the development

It is noted that in some specific cases practical completion will be achievable for homes without sign off of all planning conditions or reserved matters. This occurrence is at the risk of the provider and should not impede occupation of homes or final sign off of any outstanding consent in the near future.

7.1.2 This section provides information on:

• Homes England鈥檚 requirements for grant funding
• The treatment of developer contributions towards the costs of grant funded housing

7.1.3 Providers should ensure that they are aware of the current guidance on planning produced by the Ministry of Housing, Communities and Local Government through its National Planning Policy Framework.

7.2 Planning conditions and obligations

7.2.1 In circumstances where the planning authority grants planning permission subject to conditions or makes the development subject to planning obligations (set out in a section 106 Agreement or Unilateral Undertaking) providers must ensure that any such obligations do not make the development ineligible for grant funding.

Examples of obligations that may make a development ineligible for grant include (please note this list is not exhaustive):

• Suitable nomination rights to local authorities are not preserved
• Nominations (whether for housing for rent or affordable home ownership) are inconsistent with national policy
• There are consents that are made personal to the applicant provider and/or voluntary agency managing the scheme to the exclusion of other providers
• There are consents that restrict the letting/sale of property in contradiction of any national policy of Government or Homes England

For example (a) please see below.

• There are restrictions on use or sale of the property which make them unmortgageable or
• There are restrictions on grant recovery that contradict our policy, e.g. by restricting the location of spend of recycled receipts, or of requiring recycling to the local authority in a way which jeopardises our interest

For example (b) please see below

7.2.2 If providers are uncertain as to whether a particular planning condition or obligation will make the development ineligible, they are advised to contact their Homes England Growth team lead in the first instance.

7.2.3 Local planning authorities may attach section 106 obligations for offsite works and financial contributions to planning permissions obtained by providers. This may include, for example, the provision of community centres not primarily for providers鈥� tenants, or financial contributions for non-housing purposes.

7.2.4 Providers must ensure that they are acting within their own rules in complying with such obligations by obtaining legal advice as to whether the proposed activity is within their rules. Homes England will not dispute that advice unless there are strong grounds for doing so. Providers will also need to seek legal advice about the extent of their potential future legal liabilities to the local authority or other third parties relating to off-site works and also about any limitation measures that it might be prudent for providers to undertake.

7.3 Planning subsidy

7.3.1 Planners will often require the developer/landowner to provide affordable housing as a planning obligation. The purpose is to provide additional affordable housing.

7.3.2 Homes England does not intend to provide grant funding through the AHP 2021 to 2026 for affordable homes provided through developer contributions on Section 106 schemes. A potential exception may be where a Section 106 site is being delivered as 100% affordable housing but this should not be assumed and will be a decision for Homes England where such schemes are presented.

8.1 General

8.1.1 Providers must comply with Homes England鈥檚 signboard requirements for all Social Housing Assistance, Social Housing Grant and Recycled Capital Grant Fund and Disposal Proceeds Fund funded schemes unless we have given a specific exemption (see section 8.3.3 below).

8.2 Design

8.2.1 The design of site signboards must include the Homes England logo. For further information, please visit Homes England鈥檚 website.

8.2.2 The logo must be placed on site signboards in an appropriate manner. Providers can use their own judgement, but should ensure that our logo is given equal prominence to that of other scheme partners.

8.2.3 Please ensure that the logo is reproduced carefully 鈥� it can be made larger but must not be warped.

8.3 Display

8.3.1 A signboard must be displayed in a prominent position on each new build development and/or rehabilitation development. The display may also include a brief description of the scheme, for example 鈥�30 sheltered flats for older persons鈥�.

8.3.2 Where more than one partner鈥檚 branding is displayed alongside Homes England, there is no specific order in which they must appear.

8.3.3 Where the provider considers that the provision of a site signboard is inappropriate, an exemption or waiver should be sought in writing from their Homes England Provider Management team lead contact.

8.4 Advertising regulations and consents

8.4.1 Providers are responsible for obtaining any necessary statutory approvals or consents e.g. Town and Country Planning (Control of Advertisement) Regulations, 1992.

8.4.2 Compliance with Homes England signboard requirements will be checked as part of our compliance audit.

9.1.1 Homes England鈥檚 reporting and audit requirements for schemes we have funded can be found on our Compliance Audit guidance and process website.