3. Specialist Homes

This chapter sets out the Agency’s requirements and procedures which must be followed by providers when providing accommodation that is classified as specialist housing.

1. Overview

1.1 Purpose

1.1.1 This chapter sets out Homes England’s requirements and procedures which must be followed by providers when providing Affordable Rent, Social Rent, Help to Buy: Shared Ownership and Rent to Buy accommodation that is classified as specialist housing.

1.1.2 This chapter does not reflect all elements of general programme requirements and should be read in conjunction with the other chapters of the Capital Funding Guide (CFG).

1.2 Context

1.2.1 Specialist housing is housing that is a for a targeted client group which can include older, vulnerable and disabled people as well as housing intended for Gypsies and Travellers. This includes supported housing and also designated housing where access to support is provided where needed.

1.2.2 Supported housing is any housing scheme where accommodation is provided alongside care, support or supervision to help people live as independently as possible in the community.

1.2.3 Specialist housing may be funded, as appropriate, through the Help to Buy: Shared Ownership, and Rent to Buy funding streams as well as through Social Rent and Affordable Rent.

1.2.4 This chapter sets out the requirements relevant to providers delivering specialist provision under the Shared Ownership and Affordable Homes Programme (SOAHP) 2016 to 2021 , the Affordable Homes Programme (AHP) 2021 to 2026 and the Rough Sleeping Accommodation Programme (RSAP). These requirements will apply to each specialist housing type unless stated separately.

2. Specialist housing types

2.1 General

2.1.1 The SOAHP 2016 to 2021, AHP 2021 to 2026 and RSAP are intended to meet a diverse range of housing needs. These include schemes for housing older people, housing for disabled and vulnerable people as well as housing for Gypsies and Travellers.

2.1.2 Details of the specialist housing types supported under these programmes are provided below.

2.2 Housing for older people

2.2.1 Funding is available to support the development of good quality housing for older people.

2.2.2 Housing for older people should appropriately meet locally identified need to fit with, and complement, existing services and supported housing locally.

2.2.3 Housing for older people scheme types can include but are not limited to the following - sheltered housing, extra care housing and retirement villages

2.2.4 Homes England has four standard definitions of housing for older people.

1. Housing for older people (all special design features)

This is remodelled or purpose-designed grouped housing that has all the basic facilities and all special design features intended to enable people to live there for their lifetimes. All the following requirements have to be met:

i. Basic facilities:

• The scheme or main building must have basic facilities of a laundry for residents and/or washing machines in living units or provision for washing machines to be installed
• The scheme must also have a communal lounge

ii. Special design features:

• The whole scheme including entrances and the buildings that comprise it must be designed to wheelchair user standards
• Living units must have walk-in showers or bathrooms adapted for people with mobility problems or wheelchair users
• Bathrooms in living units that are wheelchair standard must meet the criteria for adapted bathrooms
• Living units must have kitchens that are designed to wheelchair standards
• The scheme must have a bathroom with provision for assisted bathing
• If there is more than one storey there must be a lift

2. Housing for older people (some special design features)

This is remodelled or purpose-designed grouped housing that has all the basic facilities and at least one or more of the special design features listed below. Residents must have access to support services to enable them to live there for their lifetimes. In addition, if there is more than one storey there must be a lift.

i. Basic Facilities:

• The scheme or main building must have basic facilities of a laundry for residents and/or washing machines in living units or provision for washing machines to be installed
• The scheme must have a communal lounge

ii. Special Design Features:

• Living units have walk-in showers or bathrooms adapted for people with mobility problems or wheelchair users
• Bathrooms in wheelchair standard living units meet the criteria for adapted bathrooms
• The living units, the entrance area into the building and communal areas are designed to wheelchair user standards

3. Designated supported housing for older people

Buildings with none of the special design facilities and features listed above but which provide accommodation designated for older people requiring support, with support services provided by the landlord or another organisation.

4. Designated housing for older people with access to support as required

Buildings with none of the special design facilities and features listed above but which provide accommodation designated for older people, with a process to enable tenants to access support services provided by the landlord or another organisation where needed.

2.2.5 Properties should be described as housing for older people if they are intended for older people (regardless of the actual characteristics of each tenant) and they fall in to one of the above categories. The distinctive design features listed for housing for older people (all special design features) and housing for older people (some special design features) should be over and above accessible and adaptable homes requirements to general needs properties. The age of tenants actually resident in the properties is not a defining feature.

2.2.6 Tenants in housing for older people (all special design features) or housing for older people (some special design features) should have access to support services as the need arises to enable them to live in the property for the rest of their lifetimes.

2.2.7 Access to support means that, as a minimum, a process is in place to assist in accessing and/or signposting tenants to the support services that they need. Except in the case of ‘designated supported housing for older people’, the delivery of, or level, of support is not a defining feature.

2.3 Housing for disabled and vulnerable people

2.3.1 Funding is available to support the development of good quality housing provision for disabled and vulnerable people that can be either supported or where access to support is provided where needed.

2.3.2 The term ‘supported housing’ applies to purpose designed or designated supported housing. The delivery of a support service (for example funded by Supporting People) does not necessarily result in the categorisation of housing as supported if the property is not purpose designed or designated for a particular client group. In the absence of either of these two conditions, housing is categorised as general needs.

2.3.3 Homes England recognises that vulnerability covers a wide range and levels of need and that not all vulnerable people need supported housing. However, some people may require on-going support and care in permanent supported housing accommodation and others may need tailored support for a limited period in order to support them into more independent living and a settled lifestyle, with access to education, training and employment.

2.3.4 Homes England has four standard definitions of housing for disabled and vulnerable people which are:

1. Purpose-designed supported housing for disabled and vulnerable people

Buildings that are purpose-designed or remodelled to enable residents to adjust to independent living or to enable them to live independently and which require specific design features. There must be support services provided by the landlord or another organisation. As a minimum, a building or scheme must have the following:

• Facilities: The scheme or main building must have basic facilities of a laundry for residents or washing machines in living units provided by the landlord and must also have a communal lounge
• Design features: The entrance area into the building, communal areas and some living units must be designed to wheelchair user standards

2. Purpose-designed housing for disabled and vulnerable people with access to support

Buildings that are purpose-designed or remodelled to enable residents to adjust to independent living or to enable them to live independently and which require specific design features, as per definition 1 above, but without the requirement for support services to be provided on site. Tenants must instead have access to support and a process be in place to assist in accessing and/or signposting them to the support services that they need.

3. Designated supported housing for disabled and vulnerable people

Buildings with some or no special design facilities and features but that are designated for a specific client group with support services in place to enable them to adjust to independent living or to enable them to live independently.

4. Designated housing for disabled and vulnerable people with access to support

Buildings with some or no special design facilities and features but that are designated for a specific client group with a process to enable tenants to access support services where needed to enable them to adjust to independent living or to enable them to live independently.

2.3.5 Supported housing scheme types can include but are not limited to:

• Sheltered housing
• Shared supported houses
• Domestic violence refuges
• Drug/alcohol rehabilitation schemes
• Hostels
• Foyers

2.3.6 Funding is only available for the provision of accommodation and cannot fund other services.

2.4 Disabled and vulnerable housing client groups

Homes England does not limit the client groups for whom it funds specialist housing. However, we do divide this housing provision in to 17 broad client group headings as follows.

• Military veterans with support needs who are at risk of homelessness. or who are having difficulties in sustaining their accommodation or living independently.

• People with Multiple Complex Needs who need support to maintain their independence as a result which, for example, could cut across people with mental health, alcohol and drug problems including offenders, prison leavers, people at risk of offending, people at risk of domestic abuse, rough sleepers and the single homeless.

• Homeless families with support needs, including families with dependent children considered to be homeless who may or may not be owed a homeless duty, and who need support to maintain an independent and settled lifestyle

• Offenders and people at risk of offending – offenders, prison leavers and people at risk of offending who are having difficulties in sustaining their accommodation or living independently as a result of their offending behaviour

• People at risk of domestic violence – people who are experiencing, or are at risk of experiencing, domestic violence/domestic abuse. They may have left their home, or having difficulties in maintaining their home or their personal safety and security

• People with alcohol problems – people with alcohol problems who need support to maintain their independence as a result

• People with drug problems – people with drug or other substance problems who need support to maintain their independence as a result

• People with HIV/AIDS – people with HIV/AIDS who need support to maintain their independence within the community

• People with learning disabilities or autism – people who need support to maintain their level of independence. They may have challenging behaviour, deficits in social functioning and/or adaptive behaviour or impairments affecting social interaction, communication and imagination. These disabilities are usually present from childhood

• People with mental health problems – for people with a diagnosed or undiagnosed mental health problem who need support to maintain independence. They may be:

  • People with enduring but relatively low level mental health problems that interfere with their ability to cope or function on a day to day basis
  • People whose behaviour is a concern for their own safety or that of others
  • People at risk of suicide or depression
  • People who have been diagnosed as mentally ill and are having, or have had, specialist treatment

• People with physical or sensory disability – people with mobility difficulties, sensory impairments, suffering any loss or abnormality of an anatomical structure or function, or suffering from a debilitating or long-term illness including young onset dementia who need support to maintain their level of independence. Schemes that will be predominantly be for older people with dementia or other disabilities should follow the Housing for Older People route

• Refugees – people who have been officially accepted as refugees, or who have been given indefinite or exceptional leave to remain. This excludes those seeking asylum

• Rough sleepers – supported housing for rough sleepers defined as a person bedded down for the night on the street or sleeping outside or sleeping in buildings or other places not designed for habitation, or someone at risk of rough sleeping

• Single homeless people with support needs – single people who need support to maintain an independent and settled lifestyle considered by the service provider to be homeless, who may or may not be owed a homeless duty

• Teenage parents – Young single parents (usually aged less than 20) needing support and vulnerable young women in this age group who are pregnant

• Young people at risk – young people aged 16 – 25 who are homeless or in insecure accommodation, and who need support to be able to take care of themselves or to protect themselves from harm or exploitation

• Young people leaving care – young people leaving local authority care who have been looked after for a continuous period of at least 13 weeks after the age of 14

3. Rough Sleeping Accommodation Programme

3.1 Context

3.1.1 This section sets out the requirements which must be followed in relation to schemes delivered under the Rough Sleeping Accommodation Programme (RSAP). It should be read in conjunction with a provider’s Grant Agreement and the other sections of this guide, which will apply to RSAP schemes unless specified otherwise in this section. In particular the following chapters.

• Programme Management
• Grant Recovery
• Procurement and Scheme Issues
• Finance

3.1.2 Note: these requirements are specific to schemes delivered through the Homes England administered element of this programme under section 19 of the Housing and Regeneration Act 2008.

3.2. General

3.2.1 The Next Steps Accommodation Programme was launched in July 2020 during the coronavirus (COVID-19) pandemic, as part of the Government’s response to supporting people who were sleeping rough, or at risk of sleeping rough, and were provided with emergency accommodation. The capital element of the programme (delivered by Homes England) was specifically known as the RSAP and all future bid rounds and references in this guide are named after this convention.

3.2.2 The first phase of the RSAP in 2020 to 2021 was accelerated to assist in the push to deliver long-term, move-on accommodation for vulnerable people living in emergency provision in response to the COVID-19 pandemic.

A further programme round making available further capital and revenue funding to deliver additional units of longer-term, move-on accommodation and support services for rough sleepers across financial years 2021 to 2024 was launched in March 2021. Details can be found in the programme prospectus.

3.2.3 Funding is split into two elements as follows.

• Capital grants to support the costs of delivering new move-on housing schemes for people who were sleeping rough or at risk of sleeping rough; and
• Revenue grants to support on-going tenancy support costs in homes that are delivered using capital grant from the Programme.

3.3 Scheme eligibility

3.3.1 RSAP schemes may be either for new build homes or for the refurbishment of existing properties.

3.3.2 The following delivery routes (as defined in the Procurement and Scheme issues chapter) are eligible under this programme:

• Purchase and repair
• Acquisition and works
• Existing Satisfactory
• Off the shelf
• Works only
• Lease and repair

3.3.3 Schemes requiring the refurbishment and repurposing of existing social housing stock may be funded by exception. This is subject to assessment of additionality by the Department for Levelling Up, Housing and Communities (DLUHC) and an assessment of the implications for any historical Homes England grant in the property.

3.4 Client group eligibility

3.4.1 Homes funded through the RSAP must only be made available to people who are or have recent lived experience of rough sleeping, or who are at immediate risk of rough sleeping or homelessness.

3.5 Rents and Tenancy arrangements

3.5.1 Rent and Tenancy arrangements for RSAP schemes should follow the requirements set out in the Housing for Rent chapter.

3.5.2 Tenancies should be for a maximum of 2 or 3 years.

3.5.3 Providers should review and ensure they comply with the additional DLUHC guidance on letting accommodation funded through the RSAP.

3.6 Rough Sleeping Accommodation Programme Grant Agreement

3.6.1 All grant recipients wishing to deliver long term move on homes through the RSAP are required to enter into a Grant Agreement with Homes England.

3.6.2 The Grant Agreement is a standard form contract that will be applied by Homes England to all RSAP providers. There will be a number of variations to reflect the specific nature of the grant recipient – for example, Registered Provider, local authority or unregistered body – and / or to reflect consortium arrangements.

3.6.3 Please refer to Grant Agreement examples for the RSAP 2021 to 2024 for more information on these.

3.6.4 For homes still to be delivered through the first round of the programme (referred to then as the Next Steps Accommodation Programme) the provisions within the respective contract still apply. Grant recipients with an existing Next Steps Accommodation Programme contract wishing to deliver additional allocations will be required to enter into a new RSAP Grant Agreement for 2021 to 2024 delivery.

3.7 Management of Indicative schemes

3.7.1 Providers of indicative schemes involving the purchase of existing properties should begin to identify properties for acquisition as soon as possible from the date they were informed of their allocation.

3.7.2 Once an appropriate property is found and an offer accepted, providers should complete the requisite valuations and surveys and progress to the exchange of contract and completion as quickly as possible, whilst ensuring they complete the relevant due diligence checks to an appropriate standard.

3.7.3 Providers should update Homes England regularly on the progress of the acquisition of properties under indicative allocations.

3.7.4 Providers should notify Homes England at the earliest possible opportunity if they have grounds to believe that they will be unable to deliver some or all units ahead of the milestone date stated in their Investment Management System (IMS) bid.

3.7.5 As per the Grant Agreement if a provider does not meet these expectations, or has grounds to believe that they will not be able to deliver some or all of their schemes’ units ahead of the milestone dates specified in their IMS bid, they may be asked to hand back some or all of their allocation. This will be to the extent that this is reasonable and reflects the amount of units that provider has been able to deliver.

3.8 Grant payment milestones

3.8.1 Capital

3.8.1.1 Providers must not claim a grant in advance of need and if they do not have a secure legal interest in the land/property. Please refer to the Finance chapter (section 3) for more information about claiming a grant and the Grant Agreement for a definition of what a secure legal interest in a site means for RSAP schemes.

3.8.1.2 Capital grant payments may be claimed in three instalments via the Homes England Investment Management System (IMS):

• 45% on acquisition (where applicable)
• 50% on start on site (95% cumulatively);
• and a final 5% on practical completion.

3.8.1.3 For schemes using the Off the Shelf and Existing Satisfactory delivery routes capital funding will be paid in a single tranche of 100% at practical completion.

3.8.1.4 Definitions of these milestones are set out in section 4 of the Programme Management chapter.

3.8.2 Revenue

3.8.2.1 Revenue grant payments may be claimed in quarterly instalments following completion of the linked capital scheme.

3.9 Recovery

3.9.1 Capital grant allocations made under the RSAP are subject to Homes England’s grant recovery rules, inclusive of whether the provider has used or incorporated the use of Modern Methods of Construction (MMC). Details of this process, including the relevant grant recovery events are available in the Grant Recovery chapter of this guide.

3.9.2 Capital grants received under the RSAP cannot be used or recycled for any purpose other than the eligible purposes, unless otherwise agreed by Homes England and DLUHC.

3.9.3 If a provider wishes to use units funded for a purpose other than accommodating the eligible client group, or not in accordance with the parameters set out in the programme prospectus, a replacement agreement will need to be agreed between the lead Council, the grant recipient provider (if they are different), DLUHC and Homes England. This will determine the parameters for recycling capital funding into an alternative, equivalent property for move on homes, or for repaying the capital grant funding received. Such an agreement will be by exception. Where a provider intends to request such an agreement, it must be highlighted to Homes England and DLUHC at the earliest possible opportunity.

3.9.4 Under the Grant Agreement providers are obliged to inform Homes England if a Relevant Event (as set out in the Grant Recovery Determination) for recovery or recycling has occurred. Where a provider wishes to change use, recycle funding into a suitable equivalent property, or to defer or write off funding this request would be passed to DLUHC to determine the outcome. Once a decision has been reached DLUHC will inform Homes England who will then confirm this to the provider.

3.9.5 Providers may use grant generated through the Recycled Capital Grant Fund (RCGF) as a capital cost contribution towards a RSAP scheme. See the Grant Recovery – Registered Provider chapter for further details on the overall RCGF requirements and process.

3.9.6 As per paragraph 3.9.2 above, RSAP grants are ringfenced to the Agreed Purposes of that programme. Any RCGF contributed towards a RSAP scheme will from that point be classified as RSAP grant.

3.9.7 Any future recycling of RSAP grant (inclusive of any RCGF generated outside the programme) will be restricted to the RSAP Agreed Purposes, unless otherwise agreed by Homes England and DLUHC.

3.9.8 Details of any RCGF included in a RSAP scheme should be included by the provider in its annual RCGF return.

3.10 Reporting and Audit

3.10.1 Capital grants

3.10.1.1 Capital grant funded accommodation will be subject to Homes England’s reporting and Compliance Audit requirements. Details of these requirements are set out in section 7 of the Programme Management chapter.

3.10.2 Revenue grants

3.10.2.1 Providers in receipt of revenue funding attached to the accommodation must complete and submit a Statement of Grant Usage to Homes England within 30 Business Days of the end of each Financial Period in which the Grant Recipient requests payment of Revenue Grant.

3.10.2.2 Providers are required to report progress against approved capital and revenue schemes to Homes England on a regular (at least monthly) basis for the duration of the programme period, including, progress against the delivery milestones agreed in relation to the approved scheme(s).

3.10.2.3 Homes England (and DLUHC) may on occasion require additional monitoring information outside of the regular reporting cycle to respond to bespoke commissions. Any such requests will be reasonable and in line with the terms of the Grant Agreement.

4. Single Homelessness Accommodation Programme (SHAP)

4.1 Context

4.1.1 This section sets out the requirements which must be followed in relation to schemes delivered under the Single Homelessness Accommodation Programme (SHAP). It should be read in conjunction with a provider’s Grant Agreement and the other sections of this guide, which will apply to the SHAP schemes unless specified otherwise in this section. In particular, the following chapters.

• Programme Management
• Grant Recovery
• Procurement and Scheme Issues
• Finance

4.1.2 Note: these requirements are specific to schemes delivered through the Homes England administered element of this programme under section 19 of the Housing and Regeneration Act 2008

4.2. General

4.2.1 In September 2022, the government published the Rough Sleeping Strategy which aims to provide more effective support to prevent rough sleeping happening in the first place and a tailored offer of support where it does happen, so people can build an independent life off the streets. The Single Homelessness Accommodation Programme (SHAP) was announced as part of this strategy with the aim to increase the supply of good quality, specialist supported accommodation and housing-led approaches. The SHAP prospectus was launched on 7th December 2022.

4.2.2 There are often multiple, complex, and overlapping drivers behind rough sleeping. SHAP aims to address these needs, in particular focussing on supporting the following groups:

• Adults with a long history of rough sleeping or with complex needs, and
• Young people (aged 18-25) at risk of or experiencing homelessness or rough sleeping

4.2.3 Note: See paragraph 4.4. which sets out the SHAP target client groups.

4.2.4 SHAP provides an opportunity to bid for grant funding to develop longer term accommodation for these target groups. A key element of the programme is the importance of revenue support funding alongside accommodation to help residents to sustain their tenancies in their homes.

4.2.5 Funding is split into two elements as follows.

• Capital grants to support the costs of delivering longer term accommodation for the target client groups; and
• Revenue grants (up to 3 years) to support on-going tenancy support costs within homes that are delivered using capital grant from SHAP.

4.2.6 Funding is targeted at the Local Authority areas in England where data suggests there are high levels of need for accommodation and support for the SHAP target groups. Full details can be found in the Single Homelessness Accommodation Programme Prospectus

4.3 Scheme eligibility

4.3.1 SHAP capital schemes may be either for new build homes or for the rehabilitation of existing properties.

4.3.2 The following delivery routes (as defined in the Procurement and Scheme issues chapter) are eligible under this programme:

Newbuild

• Acquisition and Works
• New Build Works Only
• Off the Shelf

Rehabilitation

• Acquisition and Works
• Existing Satisfactory
• Purchase and Repair
• Lease and Repair
• Works only
• Re-improvements
• Conversions

4.3.3 Indicative schemes will only be allowed for Rehabilitation Acquisition and Works; Purchase and Repair; Lease and Repair routes where this will bring existing properties back into use. Otherwise, SHAP funded homes should be for Firm schemes on named sites. See paragraph 4.7 for more detail on management of indicative schemes.

4.3.4 Schemes requiring the rehabilitation and repurposing of existing social housing stock may be funded by exception. This is subject to assessment of additionality by the Department for Levelling Up, Housing and Communities (DLUHC) and an assessment of the implications for any historical Homes England grant in the property.

4.4 Client group eligibility

4.4.1 SHAP funded homes should be made available to the target client groups:

• Rough Sleepers;
• Single Homeless People with Support Needs; and
• Vulnerable Young Person (aged 18-25) at risk of or experiencing homelessness or rough sleeping

4.4.2 Individuals accommodated in SHAP funded homes should be nominated as tenants as part of an agreed nominations agreement with the relevant Local Authority.

4.5 Rents and Tenancy arrangements

4.5.1 Rent and Tenancy arrangements for SHAP schemes should follow the requirements set out in the Housing for Rent chapter.

4.5.2 Rents for SHAP funded homes must be set at Affordable or Social Rent levels in line with the Regulator of Social Housing’s Rent Standard. SHAP homes should be made available on the most appropriate tenancy/terms of occupation for the scheme. This may include use of licence arrangements where applicable. Providers should seek their own legal advice, where appropriate, regarding the application of the government’s policy statement and the Regulator of Social Housing’s Rent Standard when they consider it necessary to do so.

4.5.3 Tenancy length should be appropriate to the type of development, and the conditions attached to tenancy agreements / terms of occupation should be designed to support the needs of the individual(s).

4.5.4 The Right to Shared Ownership does not apply to properties developed under SHAP under the exemption for specialist homes for older, disabled and vulnerable people.

4.6 Design and standards

4.6.1 The design of SHAP funded homes should meet to the Decent Homes Standard (or any replacement or update of this standard). Scheme design should also take account of the Nationally Described Space Standards (NDSS), where it is applicable.

4.6.2 Providers delivering SHAP funded homes which form part of a Higher Risk Building (as defined by section 31 of the Building Safety Act 2022) must register as a signatory to the Building a Safer Future Charter.

4.7 Single Homelessness Accommodation Programme Grant Agreement

4.7.1 All grant recipients wishing to deliver homes through SHAP are required to enter into a Grant Agreement with Homes England.

4.7.2 The Grant Agreement is a standard form contract that will be applied by Homes England to all SHAP providers. There will be a number of variations to reflect the specific nature of the grant recipient – for example, Registered Provider, local authority– and/or to reflect consortium arrangements.

4.7.3 Please refer to Grant Agreement examples for SHAP for more information on these.

4.8 Management of Indicative schemes

4.8.1 Providers of indicative schemes involving the purchase of existing properties should begin to identify properties for acquisition as soon as possible from the date they were informed of their allocation.

4.8.2 Once an appropriate property is found and an offer accepted, providers should complete the requisite valuations and surveys and progress to the exchange of contract and completion as quickly as possible, whilst ensuring they complete the relevant due diligence checks to an appropriate standard.

4.8.3 Providers should update Homes England regularly on the progress of the acquisition of properties under indicative allocations. Firm Scheme details should be updated on IMS for review and acceptance by Homes England as soon as possible after a property has been identified.

4.8.4 Providers should notify Homes England immediately if they have grounds to believe that they will be unable to deliver some or all units ahead of the milestone date stated in their Investment Management System (IMS) bid.

4.8.5 As per the Grant Agreement if a provider does not meet these expectations, or has grounds to believe that they will not be able to deliver some or all of their schemes’ units ahead of the milestone dates specified in their IMS bid, they may be asked by Homes England to withdraw some or all of their allocation. This will be to the extent that this is reasonable, taking into account the likely availability of Homes England resources in relation to any delay in scheme delivery and the adequacy of the grant recipients performance to date in delivering their SHAP indicative scheme(s).

4.8.6 Providers are entitled to propose changes to any SHAP indicative scheme prior to the milestone dates specified (and approved) in IMS being reached. Any such requests should be submitted to Homes England in writing for consideration and updated in IMS. If a proposed scheme change is not accepted by Homes England the provider must notify Homes England (within 20 days of the decision received) as to whether it wishes to proceed on the basis of the originally approved SHAP indicative scheme or to withdraw it.

4.9 Grant payment milestones

4.9.1 Capital

4.9.1.1 Providers must not claim a grant in advance of need and if they do not have a secure legal interest in the land/property. Please refer to the Finance chapter (section 3) for more information about claiming a grant and the Grant Agreement for a definition of what a secure legal interest in a site means for SHAP schemes.

4.9.1.2 Typically, capital grant payments may be claimed in up to three instalments via the Homes England IMS:

• 45% on acquisition (where applicable)
• 50% on start on site (95% cumulatively, where no acquisition tranche is claimed);
• and a final 5% on practical completion.

4.9.1.3 For schemes using the Off the Shelf and Existing Satisfactory delivery routes capital funding will be paid in a single tranche of 100% at practical completion.

4.9.1.4 Definitions of the payment milestones are set out in section 4 of the Programme Management chapter.

4.9.1.5 When submitting capital grant claims providers must ensure they have completed all steps set out within these definitions and to have obtained and saved on file all relevant certifications relating to the claims which may be requested for audit purposes.

4.9.1.6 All SHAP capital grant milestones must be achieved before 31 March 2025 and no payments will be made beyond this point unless express prior consent is given by Homes England.

4.9.2 Revenue

4.9.2.1 Revenue grant payments for support costs may be claimed via IMS in quarterly instalments following completion of the linked SHAP capital scheme. Revenue grant will only be paid for a maximum 3 year period from practical completion of the funded capital unit(s) up to 31 March 2028. Providers should have a suitable plan in place to ensure SHAP schemes are embedded in local commissioning pathways and are sustainable beyond the revenue grant funding period.

4.9.2.2 Revenue grant claims must only be made for costs incurred by the grant recipient in the quarter in which they were incurred (either for costs paid out or contractually committed* in that period) unless express authorisation is given by Homes England.

*For the purposes of SHAP revenue grant claims ‘contractually committed’ means:

The grant recipient is subject to a valid and legally binding obligation via an effective contract to make a payment in respect of eligible revenue expenditure.

For example, this could be a contracted payment to a support worker who is employed by or on behalf of the grant recipient.

4.9.2.3 For the first revenue grant claim following practical completion providers may include up to two clear calendar months’ revenue incurred prior to completion where a short lead-in period of support is necessary. Sums incurred prior to the completion date will be paid in arrears on the first relevant quarterly payment date following unit completion, and are included within the 3 year total revenue funding period which normally commences from completion.

4.10 Recovery

4.10.1 Capital grant allocations made under SHAP are subject to Homes England’s grant recovery rules, inclusive of whether the provider has used or incorporated the use of Modern Methods of Construction (MMC). Details of this process, including the relevant grant recovery events are available in the Grant Recovery chapter of this guide.

4.10.2 Providers are obliged to inform Homes England if a Relevant Event (as set out in the Grant Recovery Determination) for recovery or recycling has occurred. Notifications should be made in writing via the Homes England historical grant notification form and emailed to Grant_Notifications@homesengland.gov.uk.

4.10.3 Capital grants received under SHAP cannot be used for any purpose other than the Agreed Purposes (as defined in the SHAP Grant Agreement), unless otherwise agreed by Homes England and DLUHC.

4.10.4 A provider must request permission from Homes England if they want to use SHAP funded units for an alternative purpose other than:

• the approved client group for the scheme as detailed in the approved bid in IMS
• accommodating the target client group (see section 4.4.1 and 4.4.2), or
• in accordance with the parameters set out in the programme prospectus and the SHAP Grant Agreement

Agreement of an alternative purpose will be subject to prior approval by Homes England, in consultation with DLUHC.

4.10.5 If an alternative purpose is not agreed, the grant recipient will be required to repay the capital grant funding received unless expressly agreed otherwise by Homes England.  Where revenue funding is attached to the relevant capital scheme, the revenue grant profile and/or the next revenue quarterly payment may be adjusted downwards by Homes England.

4.10.6 Where a relevant event for grant recovery (as defined in the Registered Provider Recovery Determination) occurs and the provider is entitled to recycle the relevant capital grant, the permissible uses for such recycled capital grant are the Agreed Purposes (as defined in the SHAP Grant Agreement) unless otherwise agreed by Homes England and DLUHC.

4.10.7 Providers may use grant generated through the Recycled Capital Grant Fund (RCGF) as a capital cost contribution towards a SHAP scheme. See the Grant Recovery – Registered Provider chapter for further details on the overall RCGF requirements and process. 

4.10.8 As per paragraph 4.10.3 above, SHAP grants are ringfenced to the Agreed Purposes of that programme. Any RCGF contributed towards a SHAP scheme will from that point be classified as RSAP grant. 

4.10.9 Any future recycling of SHAP grant (inclusive of any RCGF generated outside the programme) will be restricted to the RSAP Agreed Purposes, unless otherwise agreed by Homes England and DLUHC. 

4.10. 10 Details of any RCGF included in a SHAP scheme should be included by the provider in its annual RCGF return. 

4.10.11 If the Statement of Grant Usage Revenue (see section 4.12.2) identifies overpayment or an incorrect claim of the revenue funding, the revenue funding profile and/or the next revenue quarterly payment may be adjusted downwards by Homes England. If all revenue funding has been claimed any overpayment or incorrectly claimed amounts must be repaid to Homes England by the grant recipient.

4.11 Changes to approved schemes

4.11.1 Providers may propose changes to any SHAP capital or revenue scheme at any time prior to the capital scheme completion date or the revenue programme end date. These changes could consist of:

• A reduction or increase or other change to the number of dwellings to be delivered
• A reduction or other adjustment to the allocated grant
• Changes to forecast dates

4.11.2 Any such changes must be submitted via IMS, specifying the reasons for the proposed change, and must take account of any grant payments already received for the relevant SHAP scheme. Agreement of an any changes to approved SHAP schemes will be subject to consideration by Homes England, in consultation with DLUHC.

4.12 Reporting and Audit

4.12.1 Capital grants

4.12.1.1 Completed SHAP capital schemes will be subject to an annual compliance procedure in the form of a Statement of Grant Usage Capital (SOGU Capital) to be provided for each financial year to ensure schemes were delivered in compliance with requirements in the CFG and Grant Agreement. The SHAP SOGU Capital will include confirmation that capital grant has been applied to eligible development costs and has been classified properly in IMS. The SOGU Capital must be provided within 60 business days of the end of any financial year in which capital grant is claimed.

4.12.1.2 Within the SOGU Capital the grant recipient must confirm that:

• all capital firm schemes delivered in the past financial year were in compliance with the requirements and conditions specified in the CFG and SHAP Grant Agreement
• all capital firm schemes have a scheme file in place. This file includes the relevant evidence in accordance with the requirements of Section 4 (Single Homelessness Accommodation Programme) of the chapter of the Capital Funding Guide entitled “Specialist Homes” to support the SOGU Capital process (or Compliance Audit process if so directed by Homes England).
• all grant has been applied to Development Costs (see Schedule 2 of the SHAP Grant Agreement) and has been classified (according to proper accounting practices) as capital expenditure.

4.12.1.3 The SOGU Capital must be signed by the Grant Recipient’s Chief Finance Director or a person occupying an equivalent post of the Grant Recipient.

4.12.1.4 Providers must maintain a scheme file and keep relevant evidence in place to support the SOGU Capital.

4.12.1.5 A standard SOGU Capital template is provided in Schedule 4 of the SHAP Grant Agreement.

4.12.1.6 Capital grant funded accommodation will also be subject to Homes England’s reporting and Compliance Audit requirements. Details of these requirements are set out in section 7 of the Programme Management chapter. A sample of SHAP capital funded schemes will be selected for full Compliance Audit each financial year to be carried out by an independent auditor.  Where it is required, independent auditors would be directly appointed by the grant recipient provider at its own expense. Guidance for providers and independent auditors is on GOV.UK - Compliance Audit: guide for providers and independent auditors

4.12.2 Revenue grants

4.12.2.1 Providers in receipt of revenue funding attached to SHAP accommodation must complete and submit a Statement of Grant Usage Revenue (SOGU Revenue) to Homes England within 60 business days of the end of each financial year in which the Grant Recipient requests payment of Revenue Grant.

4.12.2.2 Within the SOGU Revenue the grant recipient must confirm:

• the details and amount of revenue grant received and incurred/expended in the preceding financial year
• what has this expenditure procured
• the number of SHAP units included in claims for revenue grant in the preceding financial year which achieved practical completion
• confirmation that all revenue grant has been applied to revenue funding eligible expenditure as set out in the SHAP Grant Agreement and has been classified (according to proper accounting practices) as revenue expenditure

4.12.2.3 The SOGU Revenue must be signed by the Grant Recipient’s Chief Finance Director or a person occupying an equivalent post of the Grant Recipient.

4.12.2.4 A standard SOGU Revenue template is provided in Schedule 3 of the SHAP Grant Agreement.

4.12.2.5 In order to provide additional assurance on the use of public funds a sample of SHAP revenue grant recipients will be selected for more in-depth review and verification of the SOGU revenue which must be carried out by an independent auditor.

4.12.2.6 The sample selection process for full compliance audit and further assurance for both capital and revenue grants will be based on a set criteria and be proportional to the type of provider and size of the allocation awarded.

4.12.2.7 Note: all providers in receipt of SHAP funding are required to attend compulsory training on compliant delivery and the SOGU Capital and Revenue processes. Details of the training will be communicated to providers following confirmation of the grant allocation.

4.12.3 Reporting

4.12.3.1 Providers are required to report progress against approved SHAP capital and revenue schemes to Homes England on a regular (at least monthly) basis for the duration of the programme period. This should include but is not limited to: updates on progress against the delivery milestones agreed in relation to the approved scheme(s), ensuring expenditure and delivery forecasts are regularly kept up to date in IMS; and flagging any risks to the delivery of the approved scheme(s) within the programme timeframe.

4.12.3.2 Homes England may on occasion require additional monitoring information outside of the regular reporting cycle. Any such requests will be reasonable and in line with the terms of the Grant Agreement.

5. Traveller pitches

5.1 General

5.1.1 Funding is available through the Affordable Homes Programme (AHP) 2021 to 2026 for the provision of accommodation suitable for members of the Traveller community. This section should be read in conjunction with the other chapters of this guide, which explain our funding requirements, in particular:

• Programme Management
• Grant Recovery
• Procurement and Scheme Issues
• Finance

5.1.2 Travellers means the following.

Persons of the beneficiary as set out in the Planning Policy for Traveller Sites (2015) and the National Planning Policy Framework 2021, which for the avoidance of doubt includes Romany Gypsies, Irish Travellers, new age travellers and travelling show people. The word ‘traveller’ should be construed accordingly.

5.1.3 The priority for funding is new permanent supply secured on a freehold or long leasehold basis.

5.1.4 We anticipate this supply will comprise permanent pitches however, we recognise that, in some areas, the needs of the local traveller communities are best met through other forms of provision, such as transit sites.

5.1.5 A transit site is defined as the following.

A pitch on which a person is entitled to station a mobile home under the terms and agreement for a fixed period of up to three months. Transit sites are permanent sites used to provide temporary accommodation for their residents. Lengths of stay can vary but are usually set at between 28 days and three months. The requirements for transit sites reflect the fact that they are not intended for use as a permanent base for any individual household.

5.1.6 It is expected that any pitch provision funded by Homes England will meet the identified need of travellers for the local authority area and that all sites will have full long-term planning permission, regardless of the length of stay.

5.1.7 Funding is not available to support the provision of temporary stopping places, which are defined in the Traveller Site Fund 2022/23 prospectus published by the Department for Levelling Up, Housing and Communities (DLUHC).

5.1.8 Landlords of low cost rental accommodation are required to be registered as a provider of social housing with the Regulator of Social Housing, in accordance with Section 31 of the Housing and Regeneration Act 2008, as applicable.

5.1.9 For providers delivering only ‘standard’ traveller pitches (i.e., with an amenity building but not built sleeping accommodation) the requirement to be registered with the Regulator of Social Housing does not apply as this form of provision is not formally classed as accommodation.

5.2 Site requirements

5.2.1 We expect the location, design, and layout of traveller sites to take account of best practice either locally or nationally. This would include consulting with members of the traveller community and having appropriate management arrangements identified at an early stage in the design process.

5.2.2 The Traveller Site Fund 2022/23 prospectus (Annex A) provides information on site design standards. The prospectus recommends it should be read in conjunction with the ‘Places we’re proud of’ guidance produced by the National Housing Policy Advisory Panel on Gypsy and Traveller Accommodation, supported by the National Housing Federation and Chartered Institute of Housing. In addition, providers should follow any relevant legislative requirements, including the Mobile Homes Act 1983 as later amended (see paragraph 4.2.4). Please note, the Traveller Site Fund is separate from the AHP 2021 to 2026 and Homes England is not involved in its delivery. As explained in the prospectus and accompanying frequently asked questions (see question 4) the Traveller Site Fund cannot be used as a match for any AHP 2021 to 2026 funding.

5.2.3 It is recognised that the needs of the permanent pitch occupier and a transit or temporary pitch occupier are very different. Therefore, providers should consider whether a mix of permanent and transit on the same site is appropriate at an early stage in the design process.

5.2.4 Any pitch let under the Mobile Homes Act 1983 (as amended by the Mobile Homes Act 2013) is considered accommodation suitable for travellers.

5.2.5 For the purposes of this programme we use the following standard definition of a pitch.

A place for a family unit comprising at least an amenity building, access to utilities and hard standing area to accommodate at least one large trailer or caravan, parking for one vehicle and drying space for clothes.

Each pitch should include an amenity building or suitable equivalent facilities, which may include (amongst others) the following:

• Hot and cold-water supply
• Electricity supply
• A separate toilet and hand wash basin
• A bath/shower room
• A kitchen and dining area

5.2.6 In addition, a site should offer access to other community facilities for residents, which may include (amongst others):

• Play space for children
• Facilities for waste disposal
• WIFI services for site residents
• Storage and Stabling/grazing for animals

5.2.7 Providers must not claim grant if they do not have a secure legal interest in the land/property and in advance of need. Please refer to the Finance chapter (section 3) for more information about claiming grant and the Grant Agreement (see below 5.3.2) for a definition of what a secure legal interest in a site means for Traveller Pitch schemes delivered via the AHP 2021 to 2026.

5.3 AHP 2021 to 2026 Grant Agreement - Traveller Pitch Allocation

5.3.1 All grant recipients wishing to deliver accommodation suitable for members of traveller community are required to enter into a Grant Agreement with Homes England.

5.3.2 The Grant Agreement is a standard form contract that will be applied by Homes England to all Traveller Pitch providers. There will be variations to reflect the specific nature of the grant recipient – for example, Registered Provider or Local Authority.

6. Additional information

6.1 Care homes

Homes England makes the following distinctions for registered care homes:

• ‘Care homes providing personal care’ are presumed to fall within the definition of social housing for low cost rental accommodation in section 69 of the Housing and Regeneration Act 2008 and are either purpose-designed supported housing or housing for older people (all special design features)
• ‘Care homes providing nursing care’ are presumed not to be social housing unless the accommodation provided can be demonstrated to be low cost rental accommodation. These homes would therefore outside the definitions of supported housing and housing for older people

6.2 Care or support provided by other agencies

The provision of care or support services to a resident such as domiciliary care is not in itself grounds for classifying the stock as supported housing or housing for older people. One of the definitions in section 2 of this chapter must be met.

6.3 Night shelters

Night shelters which only provide accommodation overnight or a very short term resting place and give no written occupancy agreement are considered not to be affordable housing and therefore not eligible for funding. If the scheme provides a home, a written occupancy agreement, and the resident has right to day and night access to their accommodation then this may be a hostel rather than a night shelter. It will therefore be considered as affordable housing and may be eligible for funding, provided one of the above definitions is met,

7. Rents

7.1 General

7.1.1 Social Rent and Affordable Rent schemes should follow the processes set out in the Housing for Rent chapter of this guide.

7.2 Specialist housing

7.2.1 Housing for vulnerable and older people often includes a range of services to support the particular needs of the client group. When setting an Affordable Rent level for housing for vulnerable and older people, the gross market rent comparables should be based on similar types and models of service provision, ideally within the local area. Where there are insufficient comparables for similar types of provision in the local area, valuers should be asked to identify comparables from other areas and extrapolate their best estimate of what the gross market rent would be. Registered Providers should then set the initial rent (including service charge) at up to 80% of that level. The policy statement on rents for social housing provides a definition of the term ‘supported housing’.

8. Shared Ownership

8.1 General

8.1.1 Delivery of specialist Shared Ownership schemes under the SOAHP 2016 to 2021 and AHP 2021 to 2026 should follow Homes England’s standard processes and eligibility criteria set out in the Help to Buy: Shared Ownership chapter.

8.1.2 Where applicable, providers should also refer to section 3.7 Older Persons Shared Ownership - Help to Buy: Shared Ownership.