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Successful places
with homes and jobs
A NATIONAL
AGENCY
WORKING
LOCALLY
HCA Investment
Partner Meeting
North West Update
27 January 2017
Overview
HCA update and recent
Government announcements
(Steve Modric)
SOAHP 2016-21 allocations
and Q4 update (Carl Moore)
Contracting and CME
(Caroline Cormack)
Government and HCA priorities Government
1 million homes by 2020
More homes of all types needed
c£10bn for affordable housing by 2020
Government ready to intervene where markets failing
Housing is a local not national problem
Housing now classed as infrastructure
Housing remains centre stage (Autumn Statement and White Paper)
HCA
New leadership structure in place (right)
New structure and refocused role:
– More active role in shaping markets
– More thematic
Photos - clockwise from top right: Sir Edward Lister (chairman); Nick Walkley (CEO); Danielle
Gillespie (NW General Manager)
HCA in the North West
Danielle Gillespie General Manager, North West
Carl Moore Housing Supply & Home
Ownership
Stuart Sage Public Sector Land
Duncan Inglis Accelerated construction
Locally based teams in Warrington (left) and Manchester (right)
0161 200 6162
01925 644646 0161 200 6130 01925 644627
HCA’s
offer
Help to Buy
Home Building Fund
Land Capacity
Funding
Starter Homes
Housing Zones
Land Commissions
Procurement Panels
Accelerated Construction
Large sites team
HCA site disposals
Releasing surplus
Government land
Developer contacts
Garden Villages
City Deals
Estate Regen
SOAHP 2016-21
Estate Regeneration
New strategy and funding launched 8 December:
– £140m (recoverable) for private sector/RPs (demolition, leaseholder buy-backs, decanting)
– £30m (enabling grant) for LAs & RPs (pre-planning, feasibility studies, masterplanning, viability testing)
– £2m (capacity grant) for LAs (commercial support, legal advice, delivery vehicles)
Easy bidding process via: https://partners.hca-online.org.uk/
Grant funding available on first-come-first-served basis
Further information at https://www.gov.uk/government/publications/estate-regeneration-fund
SOAHP 2016-21 Allocations
(Carl Moore)
National & regional allocations
£1.28bn schemes allocated to in January alongside CME announcement
£2.17bn of £4.7bn SR budget allocated to GLA in November
HCA local allocations determined largely by bidding appetite
North secured 43% initial HCA allocations
c£1.25bn headroom remains for HCA to allocate via CME…
…plus a share of additional £1.4bn announced at Autumn Statement
15%
30%
22%
21%
12%
HCA Funding Requested (£1.28bn)
East and South East (£188m)
Midlands (£382m)
North East, Yorks & Humber (£284m)
North West (£273m)
South and South West (£155m)
North West allocations – by provider Lead Partner Name Sites Units Grant (£)
JV North 31 2758 87,299,567
Great Places 43 1268 34,002,000
Contour 9 721 23,431,000
Accent 7 665 17,854,000
Riverside 19 607 18,199,000
Affinity Sutton 3 355 3,888,105
Southway 11 291 7,356,950
Knowsley Housing Trust 5 232 7,480,726
First Choice Oldham 18 208 5,973,000
Plus Dane 6 192 4,970,000
Together Housing 3 162 6,480,000
Lovell 140 3,920,000
Housing & Care 21 4 136 2,118,000
Kier Group 125 3,500,000
One Vision Housing 2 116 3,285,000
Adactus 113 2,483,000
First Step 111 3,330,000
Countryside 100 2,800,000
Wulvern 4 100 4,134,500
Rochdale Boroughwide 5 99 3,382,000
Manchester Council 75 2,850,000
Places for People 5 74 0
Galliford 1 70 2,100,000
Oldham Council 1 70 1,830,000
Sanctuary 64 2,575,000
Guinness 1 64 1,865,759
Halton Housing Trust 4 62 1,940,000
Isos Housing 2 58 2,390,000
Two Castles 6 56 1,650,000
Home Group Limited 2 50 3,100,000
Magenta 50 1,400,000
Salix 44 1,320,000
City West 8 36 1,080,000
Salvation Army HA 30 1,050,000
Abbeyfield Society 2 23 712,000
Alpha (R.S.L.) Limited 1 19 324,000
J & M Residential 16 636,000
Calico 10 345,000
South Lakes Housing 1 7 245,000
Fairoak HA 6 310,749
Total 204 9383 273,610,356
New North West allocations
Firm, 3422
Indicative, 5961
Allocations by scheme type (firm/indicative)
Affordable Rent, 345
Help to Buy -
Shared Ownership,
5418
Rent to Buy, 2704
Specialist Housing for Rent,
916
Units by tenure (new NW allocations)
Sub-Regional distribution
Distributional allocation of all 9,383 North West homes (firm and
indicative)
Cheshire and
Warrington, 1046
Cumbria, 376
Greater Manchester
, 4302
Lancashire, 774
Liverpool City Region,
1769
North West, 1116
Indicative allocations now
available on regional basis
Appetite for indicative
funding varies:
– C&W (75% indicative)
– GM (66% indicative)
– Lancs (60% indicative)
– LCR (33% indicative)
– Cumbria (25% indicative)
Mapping shared
ownership
allocations (firm schemes by size
& year of completion)
Map shows
location of 450
Shared
Ownership
homes bid
under firm
schemes
Total Liverpool
City Region
allocation:
1,769 homes
(including
indicative and
other tenures)
SOAHP 2016-21: Contracting & CME
(Caroline Cormack)
Summary
Programme Themes
– New funding flexibility
– Supporting Home Ownership
– Supporting Specialist Housing
– Encouraging Construction Innovation
Who Can Bid?
How to Bid
Bid requirements
Assessment
SOAHP contracting
New funding flexibility
Announced by the Chancellor in
the Autumn Statement on 23
November 2016
Funding in the 16-21 SOAHP
available for:
– Shared Ownership
– Rent to Buy
– Affordable Rent
– Specialist Rent (existing named
Specialist Rent budget is not a
cap)
Home Ownership
Home ownership remains the priority for the programme
Help to Buy: Shared Ownership
o Offers prospective home owners the option to buy between 25%
and 75% of their home
o Remaining share owned by the landlord who receives a rent
(should be set at less than 2.75% of unsold equity, must be less
than 3%)
o Home owner can ‘staircase’ in 10% increments until they own the
whole home
Rent to Buy
o Tenant rents on a sub-market Intermediate Rent, with an option to
buy their home once they’ve saved enough for a deposit
o Flexibility for provider at year 5 to sell to the tenant or convert to
private rent or sale, Affordable Rent or keep as Rent to Buy.
Supporting Specialist Housing
Funding is available for new specialist rental homes for
older, disabled or vulnerable people
We are looking for bids which:
o Are supported by local commissioning bodies
o Are well thought through for the client group in terms of
typology, location and design (noting the Housing Our Ageing
Population Panel for Innovation principles and the HCA’s
non-mainstream housing design guidance, both on .GOV.uk)
o Demonstrate an exit plan, should commissioning priorities
change
Specialist Home Ownership development can be bid
through Help to Buy: Shared Ownership
Construction Innovation
Government is keen to encourage innovation in the UK construction sector
We expect increasing quantities of innovative delivery within SOAHP 16-21
The potential advantages in cost and delivery speed match our core criteria of value for money and delivery
We are asking for additional bid information on replicable construction innovation
Who can bid?
16-21 SOAHP CME is open to all Investment Partners and
those who intend to qualify, including Registered Providers,
Local authorities and their ALMOs, House builders and private
sector developers, Community groups, Community Land
Trusts, Co-ops, Almshouses etc.
Rented homes (including for the rental period of Rent to Buy)
may be developed by URBs but the landlord (owner) must be
an RP
Partners can develop in their own right or as part of a
consortium
New providers are encouraged to join existing development
partner consortia
How to Bid
All bidders must have a working IMS account. See Prospectus for contacts.
First time bidders that are not already qualified will need to become a qualified Investment Partner before we can pay grant
Note that there is no requirement to qualify in advance of submitting a bid
IMS guidance and a programme of IMS training is available, aimed in particular at new providers. More information has been published on the SOAHP 16-21 page here https://www.gov.uk/guidance/shared-ownership-and-affordable-housing-programme-2016-to-2021-ims-training-for-bidders
Bid requirements
The 2016-21 SOAHP Prospectus still applies, supported by the CME addendum
Bids are for new supply in England (outside London)
Any requests to use grant (new or recycled) on s106 sites must be demonstrably additional to receive grant: we will give detailed scrutiny to any request
Any scheme where an Affordable Rent is to be charged must be bid into the programme, even where nil grant, and we welcome bids for nil grant schemes of any tenure
For commercial providers we will conduct a due diligence check under our Know Your Customer policy
For Registered Providers we will seek assurance from the regulator on financial standing and that its bid is consistent with continued viability
There is no pre-defined split of funding between geographic areas
All bids must be best and final and independent
Assessment – key points
Quantitative Assessment:
– Value for money (50%)
• Minimising costs
• Maximising other cost contributions
– Deliverability (50%)
• Achievement of planning, land ownership, works contract tendering
• Delivery profile
Qualitative Assessment:
– Affordability and sales risk for shared ownership
– Meeting local needs, design and future-proofing for specialist rent
– Assessment of value for money outliers to review reasons for high costs
16-21 SOAHP contracting
Standard form contracts will be published on our .gov.uk
page shortly
Looks very similar to 15-18 AHP contract
Key updates are to longstop dates; transition deadlines
for indicative bids (outlined in the Prospectus) and to
reflect changes in legislation
Contracting for RPs who have allocations from the initial
bid round is underway
Early delivery (i.e. in 16/17) is being prioritised
Keep in touch
Additional information may be posted on the
SOAHP 2016-21 page on gov.uk and
providers are advised to check regularly:
https://www.gov.uk/government/organisations
/homes-and-communities-agency
Providers can submit queries to
Current Programme – Q4 Update
(Carl Moore)
Key messages for Quarter 4
Prioritising starts: prioritising contracts where in-year opportunities
Highlight opportunities for early CME starts: grant or S106 nil-grant
Brief window to review 17/18 forecasts – will be fixed from April
Year end arrangements (IMS close noon 31 March – reopens 18 April)
Compliance Audit reports: expected issue in May
0% 20% 40% 60% 80% 100%
Expenditure
Starts
Comps
North West programme position – end Dec 2016
Summary
Excellent response from North West providers
Additional funding available to accelerate new supply including
Affordable Rent
Data maps available to support new business opportunities and
mitigate sales risks
Prioritising opportunities for new starts in-year
Refocused HCA team - with continuity and experience