10. Finance
This chapter sets out the conditions and procedural requirements for the use of grant (a public subsidy) paid through an affordable homes programme. It should be read together with the grant agreement and other Capital Funding Guide chapters signposted in this chapter.
1.1 Purpose
1.1.1 This chapter sets out the conditions and procedural requirements which aim to ensure that grant (a public subsidy) is:
- used correctly and in accordance with legislation
- used in accordance with the grant agreement (contract) with Homes England
- accounted for accurately
- administered in line with the correct procedures
The grant agreement sets out the non-negotiable conditions on which grant funding is provided through one of our affordable homes programmes. Refer to Programme Management chapter – Overview for more information about our current affordable homes programmes.
1.1.2 For the Social and Affordable Homes Programme (SAHP) Homes England will be giving subsidies to Services of Public Economic Interest (SPEI) enterprises for the purpose of the provision of SPEI services (the provision of social and, or, affordable housing) pursuant to section 29 of the Subsidy Control Act 2022. SPEI subsidies are regulated under the UK’s subsidy control regime, allowing public authorities to provide financial support for essential services that the market may not supply adequately. Refer to SAHP Subsidy Scheme information on the Department of Business and Trade database – Subsidy Control number SC11452.
1.2 Context
1.2.1 Our statutory powers and grant agreement enable Homes England to ensure that grant provided under our affordable homes programmes is ringfenced for the purposes of social and affordable housing in perpetuity. This ensures the homes we fund continue to be used for their original purpose, until the grant invested in them is recycled into other affordable housing or repaid to Homes England. Refer to Programme Management chapter for more information.
1.2.2 The use of grant paid in respect of the Right to Acquire and Social HomeBuy is governed by statute. Refer to the Right to Acquire chapter and Social HomeBuy chapter for more information.
1.3 Other sources of funding
1.3.1 Homes England grant can be combined with other sources of funding, including, for example:
- debt funding — borrowing from a bank or building society or other (a mortgage, the bond market or other borrowing facilities)
- Recycled Capital Grant Fund (RCGF) where allowed — refer to the Grant Recovery - Registered Provider chapter for more information about RCGF uses
- other public subsidy — for example, gap funding grant from a local authority
- discount on land from the public sector
- discount on land from the private sector (arising from a local authority imposing a planning obligation, enforced through a Section 106 Agreement)
Our grant funding cannot be used to acquire social and affordable homes secured by developer contributions through Section 106 of the Town and Country Planning Act 1990 or equivalent planning condition.
- providers’ own funds, including from open market sales and first tranche sales of Shared Ownership homes sales, delivered via an affordable homes programme
- Right to Buy receipts for the Social and Affordable Homes Programme (SAHP) 2026 to 2036 — these are capital receipts that are the proceeds of sale when a tenant exercises their Right to Buy
- charitable donations
- commuted sums — a financial contribution paid by developers to a local authority in lieu of providing affordable housing on-site. These are not considered public subsidy as they are secured from private developers
1.3.2 You must provide supporting information about these sources of funding where you are proposing to use them to fund your scheme and maintain a funding profile on file, including any correspondence with the third party or parties. For the avoidance of doubt, this includes all funding (debt, equity, infrastructure, guarantee or loan) from Homes England.
1.4 Other public subsidy
1.4.1 Homes England will not approve a grant award which, when accumulated with any other public sector funding in respect of the scheme, would be in excess of the viability gap to deliver the affordable housing. Providers are obliged in their grant agreement to notify Homes England of additional sources of subsidy, to enable a check to be made in relation to accumulated subsidy exceeding the relevant viability gap.
1.4.2 For information about how the Office of the Gas and Electricity Markets’ Feed in Tariff impacts on schemes funded via the National Affordable Homes Programme 2008 to 2011, refer to archived guidance on the National Archives website.
1.5 Other public subsidy — discounted land
1.5.1 When recording details of other public subsidy, the discount is the difference between the total consideration paid by the provider and the restricted value of the property. The restricted value takes into account any reduction in value brought about by any fettering of the future use of the property by the seller. If no such restrictions are placed on the property, the restricted value will be the same as the unrestricted value.
1.5.2 Both the restricted value and the unrestricted value should reflect the uses for which a planning permission is likely to be obtained.
1.5.3 Providers must obtain professional valuation advice on the effect on value of any restrictions placed on land by the seller.
1.5.4 Providers must also note the difference between ‘total consideration’ and ‘price’. Homes England will count the organisation’s scheme as being in receipt of other public subsidy if the value of the monetary consideration paid (the price) and the consideration-in-kind provided is less than the restricted value of the property. Note, ‘consideration’ is the thing of value that one party gives to another under a contract. Often, it comes in the form of money, but it can also come in the form of goods or services. Thus, the total consideration paid by one party under a contract to the other party may be a mixture of monetary-consideration and consideration-in-kind.
2.1 General
2.1.1 The grant agreement and this Capital Funding Guide (CFG) set out the non-negotiable conditions on which Homes England funding is given through our affordable homes programmes. Refer to Programme Management chapter — Overviewfor more information.
2.1.2 Previous funding conditions refer providers to their responsibilities in respect of the 2012 Construction Commitments — Affordable Housing Provider version (PDF, 57.4KB). This does not apply to schemes funded through the Affordable Homes Programme (AHP) 2021 to 2026 and SAHP 2026 to 2036.
2.2 Acceptance of the Grant Agreement (contract)
2.2.1 All grant allocations are made subject to contract. Providers delivering a scheme, or programme of schemes, under a Homes England affordable homes programme must formally accept the non-negotiable terms and conditions as contained within the relevant grant agreement. This will require a Board decision (or an equivalent forum within an organisation’s governance arrangements) and providers must retain a minute of their decision on file for compliance audit purposes. Refer to Programme Management chapter — Investment Partner Qualification and the Grant Agreement to find the suite of example Homes England grant agreements.
2.2.2 Signing of the grant agreement will be deemed as acceptance of the terms and conditions including relevant terms of this Capital Funding Guide (CFG).
2.2.3 Providers will not be able to claim grant unless the grant agreement has also been executed and dated by Homes England.
2.3 Personal, proprietary and pecuniary interest
2.3.1 Providers should ensure their members, employees, agents or consultants, or those of any of their partner organisations, must not have any personal, proprietary and pecuniary interest in any:
- person from whom the provider is purchasing land or property
- contractor engaged or to be engaged by the provider
- land or property to be acquired or developed, refurbished or improved in connection with their programme to deliver grant funded homes
2.3.2 Providers must also ensure their members, employees, agents or consultants, or those of any of their partner organisation, are not given preferential treatment by virtue of their position or associations. For example, access to land and properties developed, rehabilitated or disposed of, or the prices at which such land and properties are let or disposed of.
2.4 Breaches of the Grant Agreement
2.4.1 Homes England may exercise its powers available, under the default mechanisms in the grant agreement, to require correction of a breach or breaches and, or, to withhold, suspend, reallocate, redirect, cancel or recover grant, including interest on recoverable sums, if the conditions as outlined in the grant agreement are not met. In some circumstances, Homes England may also have recourse to terminate the grant agreement (in whole or in part).
2.4.2 Refer to the Programme Management chapter for an explanation of how our statutory powers and grant agreement operate together to protect the use of grant for the purposes of social and affordable housing in perpetuity.
3.1 General
3.1.1 Providers must not claim grant:
- unless the provider entity, or other relevant party (where applicable), holds Secure Legal Interest of a type required for the stage of claim, as set out in the provider’s grant agreement
- in advance of need — that is to say, one of the following applies:
- if the provider has not entered into the commitment for which the grant claim is to be made
- even though contractually committed, the provider does not yet have to make payments
- if the relevant milestone and grant claim conditions (as set out in the provider’s grant agreement) have not been satisfied
What is ‘a secure legal interest in the property’?
For schemes being delivered through the AHP 2021 to 2026 and SAHP 2026 to 2036:
- Freehold title registered with title absolute
- Leasehold title registered with title absolute, where the following are achieved as a minimum:
- for all Shared Ownership homes, a 990-year lease length (except for the Home Ownership for people with a long-term disability (HOLD) variant product, where the minimum lease term should be 125 years — refer to Shared Ownership chapter — Leases for more detail)
- for all Affordable Rent, Social Rent and Rent to Buy homes - a 125-year lease length
- for Empty Homes schemes, delivered through the Lease and Repair route - the lease should be between 5 and 30 years in length
- for Specialist and supported housing (including Traveller Pitches) - refer to Specialist Homes chapter — Grant claims and payments (Specialist homes)
- Freehold title registered with possessory title, or good leasehold title and defective title indemnity insurance in favour of the provider, with a limit of indemnity to at least the Total Grant Required for that site
Where the Secure Legal Interest is a leasehold title, the Grant Recipient must:
- ensure the terms of the relevant lease are consistent with the principles of the Grant Recipient’s obligations under their grant agreement
- ensure the terms of the relevant lease do not permit the lease to be terminated (including, but not limited to, pursuant to a break clause) prior to the expiry of the Minimum Unexpired Term, Minimum Shared Ownership Lease Term or the term set out in any Secure Legal Interest (Excused)
- not vary the lease in a manner which could frustrate the operation of the Grant Recipient’s grant agreement
Shared ownership homes, with the ability to staircase to 100%, must have the freehold available for transfer to the shared owner when they reach 100% ownership. Homes which fall into the following categories are exempt from this requirement:
- flats
- community-led development
- inalienable National Trust land, and inalienable and excepted sites on Crown land
- retirement housing
- leasehold land owned as at 21 December 2017 — so long as the owner develops and the land has not been sold on since
- houses above or below other structures — as part of definition of house for purpose of the ban, for example, a house built over a communal underground car park could still be leasehold
Although the minimum lease length for Affordable Rent, Social Rent and Rent to Buy homes is a minimum 125 years, providers are encouraged to develop AHP 2021 to 2026 schemes with the maximum lease length possible. This is to ensure that any future potential mortgage issues are minimised when either of the following apply:
-
a Rent to Buy home, funded by either AHP 2021 to 2026 or SAHP 2026 to 2036, is purchased outright or on a Shared Ownership basis
-
the Right to Shared Ownership (subject to eligibility) is exercised on an AHP 2021 to 2026 funded home
The Right to Shared Ownership is not a right that is available for rented homes, funded through previous affordable homes programmes, prior to the AHP 2021 to 2026, or SAHP 2026 to 2036. Refer to Shared Ownership chapter — Right to Shared Ownership (RtSO) for more information.
3.1.2 Refer to Procurement and Scheme Issues chapter — Acquisitions for additional information on good title.
3.1.3 A contractual interest (such as building license, or an agreement to lease or acquire) is not a sufficient Secure Legal Interest for purposes of claiming grant, except:
- for Continuous Market Engagement (CME) — where a Start on Site payment may be claimed in respect of a Golden Brick Scheme and, or, Delivery Phase where the provider holds a Golden Brick Secure Legal Interest in accordance with the terms of its grant agreement, refer to ‘3.5.1. Start on site — Golden Brick’ for more information
- for Strategic Partnerships — where a contractual interest meets the definition of Qualifying Secure Legal Interest’ in accordance with the terms of its grant agreement, refer to Strategic Partnerships chapter – Strategic Partnership Grant Agreement
3.1.4 Providers should seek legal advice to ensure they have an appropriate Secure Legal Interest in the property, or land, in line with the specific requirements set out in their grant agreement.
3.1.5 For information about Secure Legal Interest under the Shared Ownership and Affordable Homes Programme 2016 to 2021, refer to the earlier version of this chapter in the Capital Funding Guide Library and Updates chapter.
3.1.6 Refer to 3.3.3 for more information on validating and claiming payment.
3.2 Bank details
3.2.1 When providers are due to receive grant from Homes England for the first time, they must provide details of the bank account to be credited and notify any subsequent change of bank or account details.
Homes England pays grant directly into the providers’ bank account. Therefore, we require details of the provider’s bank accounts, otherwise grant cannot be paid to the provider.
3.2.2 Providers must provide their bank details in writing, on company headed notepaper, or direct from the organisation’s business email address to Homes England’s finance department.
3.2.3 If bank details are provided by email, they must be sent directly to: apenquiries@homesengland.gov.uk and the email address from which they are sent must be clearly identifiable as coming from the organisation. Forwarded emails and those from personal email addresses are not accepted.
The following details are required:
- bank name
- bank branch
- bank address
- bank sort code
- bank account number
- bank account holder’s name
3.2.4 All providers’ claims for payment of grant must be submitted through the correct Homes England grant management digital system (called the digital system in this chapter). Refer to Programme Management chapter — Overview for more information.
3.3 General procedural requirements
3.3.1 For more information about claiming grant you should first read the Programme Management chapter, in particular:
- Investment Partner Qualification and the Grant Agreement
- Scheme data collection and administration
- Milestones
- Changes to agreed allocations
3.3.2 In addition, Strategic Partners should also read the Strategic Partnerships chapter, which provides detail of specific requirements that only apply to the Strategic Partnership delivery route.
3.3.3 Validating a claim for payment
CME
3.3.3.1 As explained in the Programme Management chapter, grant is paid in tranches on the achievement of site acquisition, start on site and completion milestones. At the point of each claim, the provider is required to make representations and warranties to Homes England as per the grant claim procedures within their grant agreement. These include, but are not limited to:
- the milestone required to entitle it to apply for the relevant tranche has been achieved by the milestone date agreed in the digital system
- it possesses a secure legal interest in the relevant site
- all consents necessary for delivery have been obtained
- a valuation of the site has been procured
- the scheme has, or will be, delivered in accordance with the details set out on the digital system, in respect of number of homes being delivered at the relevant tenures, any agreed standards and strategic objectives
- the scheme comprises no third-party subsidy, other than that already identified to Homes England
- all information provided to Homes England and all confirmations in the digital system are correct
- no grant withholding or default event has occurred
Strategic Partnerships
3.3.3.2 For Strategic Partnerships, payment of grant linked to milestone achievement only applies to Strategic Partners who are Unregistered Bodies and For Profit Registered Providers delivering under the AHP 2021 to 2026, or Unregistered Bodies and Registered Providers delivering under SAHP 2026 to 2036 through the ‘Developer delivery’ entry route. Strategic Partners should refer to the Strategic Partnerships chapter for further guidance.
3.3.3.3 All Strategic Partners will need to record acquisition, start on site and practical completion achievement for schemes they deliver and the guidance in this section is relevant for recording this information in the digital system.
3.3.3.4 For both CME and Strategic Partnerships the following validation requirements apply:
- all representations and warranties contractually given by the provider are required to also be certified in the digital system, when a grant payment claim is submitted
- should any of such representations or warranties be inaccurate or untrue, Homes England may exercise its powers available under the default mechanisms in the grant agreement as per 2.4.1
3.3.5 The Provider Management team will check that all comments made on IMS, for any variations from the bid/offer stage, are consistent with previously agreed changes for that scheme.
3.3.6 Homes England may terminate a programme/scheme and recover any grant paid on the scheme where:
- the programme/scheme no longer meets a strategic need
- the programme/scheme no longer offers value for money
- the provider has not previously told their Provider Management team lead of the changes, even if the changes are not fundamental
3.4 Start on site claims (further information)
3.4.1 Before reading our further information about our start on site claim requirements for new build homes and rehabilitated homes, you should first read:
- Programme Management chapter — Overview for the different start on site (and completion) dates for our current affordable homes programmes
- the table in Programme Management chapter — Milestones and the accompanying definitions of start on site and start on site works
New build homes and schemes
3.4.2 Read Programme Management — Milestones for our definition of start on site works (a) to (e). Under (e) it refers to such works of demolition or service diversion. For schemes where demolition works have begun, or where infrastructure works (such as excavations to install drainage or highways infrastructure works, including where such works are the subject of a section 278 or section 104 agreement) to support the scheme have commenced, subject to the conditions set out here, Starts on site can be recorded (and, where relevant, a grant claim submitted) in circumstances where, either:
a) a building contract has been signed and dated, with a single building contractor, to undertake both demolition and construction works or infrastructure and construction works
b) demolition or infrastructure works have commenced
c) upon completion of demolition works and site clearance, or of infrastructure works, construction works which meet 1 of the definitions in the relevant grant agreement and repeated (a) to (e) - also refer to 3.4.2 - will immediately follow on
Or:
d) A separate contract for demolition works, or for infrastructure works, has been signed and dated and a building contract with a building contractor has been signed and dated
e) Demolition works or infrastructure works have commenced
f) Upon completion of demolition works and site clearance or upon completion of infrastructure works, the building contract with the building contractor will be unconditional
g) As soon as the building contract becomes unconditional, start on site works which meet one of the definitions in the relevant grant agreement will proceed
3.4.3 Service diversions
Where a building contract has been signed and dated with a single building contractor and the building contract requires service diversion works to be carried out before works which meet one of the definitions in the relevant grant agreement, namely (a) to (e) - also refer to 3.4.2 - start on site can be recorded (and, where relevant, a claim submitted). This is provided that the service diversion works will always be undertaken within the agreed contract period, and works which meet the definitions in the relevant grant agreement or (a) to (e) - also refer to 3.4.2) - will immediately follow on from service diversions.
Rehabilitation homes and schemes
3.4.4 For definitions of schemes that should proceed through one of the rehabilitation processing routes, refer to Procurement and Scheme Issues chapter — Scheme types and requirements. This will also include Lease and Repair schemes, refer to Procurement and Scheme Issues chapter — Other scheme types.
3.4.5 For some of these rehabilitation scheme types, where funding is provided by Homes England for the purchase of individual properties (such as empty homes through Purchase and Repair and Lease and Repair) then there may not be a single main building contract. Depending on the level and type of works required to homes, works may be undertaken by different contractors and, or, organisations (including in-house teams).
3.4.6 In many cases there may be a need for pre-commencement works (which are considered as eligible development costs) to be undertaken prior to the main repair works being carried out to a property. This may include, but are not limited to:
- utility checks and surveys (for example gas, electricity and water)
- capping off the gas supply where required
- asbestos surveys or other site safety surveys
3.4.7 For start on site to be claimed on such rehabilitation schemes, any pre-commencement works need to form, and be eligible, to be a part of the total costs of the scheme for which Homes England grant is being claimed. In addition, any repair works should immediately follow on from any pre-commencement works, even where they are undertaken by different organisations and subject to separate contracts or works orders.
3.4.8 If providers are unsure whether a rehabilitation scheme meets the above requirements, then they should contact their Homes England lead contact.
3.4.9 For all such rehabilitation schemes where start on site is to be claimed following pre-commencement works having begun, then a clear audit trail of contracts, works orders, timings of activities, and so on, should be maintained by the provider. Refer to Programme Management chapter - Reporting and audit requirements.
Strategic Partnerships ‘Off the Shelf’ sites
3.4.10 For AHP 2021 to 2026 and SAHP 2026 to 2036 Strategic Partnerships, where the processing route of a Site is ‘off the shelf’, a Site may be made ‘Active’ once the Strategic Partner or Delivery Partner has exchanged on a purchase contract, to obtain a Secure Legal Interest in line with the definition of Qualifying Secure Legal Interest (SO Accommodation) and, or, Qualifying Secure Legal Interest (Rented Accommodation) in the grant agreement.
3.4.11 A start on site may also be recorded where Start on Site Works, as defined in the grant agreement, have been achieved and the date recorded in the digital system should be the later of:
- the date Start on Site Works were commenced
- the date the purchase contract was exchanged
3.4.12 Development expenditure should not be recorded against an Active Site until a Secure Legal Interest has been obtained in line with limbs (a), (b) or (c) in the definitions of Qualifying Secure Legal Interest (SO Accommodation) and, or, Qualifying Secure Legal Interest (Rented Accommodation) in the grant agreement.
3.4.13 Where a Strategic Partner or Delivery Partner is paid against milestone achievement, no grant drawdown is eligible until practical completion where a Site processing route is ‘Off The Shelf’. For more information about the Off The Shelf product refer to Programme Management chapter – Milestones and Procurement and scheme issues – Scheme types and requirements.
3.5 Golden Brick — Start on site
3.5.1 Under a ‘golden brick’ arrangement, a provider typically enters a building contract for development of a new build scheme, to be transferred into its ownership at a partially built ‘golden brick’ stage prior to completion. The agreement for sale (or other legal agreement) will typically include a backstop date, allowing for either completion of the acquisition or termination, if golden brick stage is not achieved by that backstop. The provider is responsible for post-golden brick stage works, whether procured from the seller or another contractor.
Strategic Partnerships
3.5.2 A Strategic Partner or a Delivery Partner, delivering under the AHP 2021 to 2026 or the SAHP 2026 to 2036, may be able to make a Site an Active Site in the digital system, and achieve a start on site in circumstances where the Site is being delivered under a golden brick arrangement, subject to the Strategic Partner or Delivery partner meeting the following requirements:
i) they possess a Secure Legal Interest that complies with limb (d) in the definition of Qualifying Secure Legal Interest (SO Accommodation) and, or, Qualifying Secure Legal Interest (Rented Accommodation) in the grant agreement
ii) Start on Site Works as defined in the grant agreement have been achieved
iii) the Strategic Partner or Delivery Partner will possess a Secure Legal Interest that complies with limbs (a), (b) or (c) in the definition of Qualifying Secure Legal Interest (SO Accommodation) and, or, Qualifying Secure Legal Interest (Rented Accommodation) in the grant agreement prior to practical completion
3.5.3 However, development expenditure should not be recorded against an Active Site until a Secure Legal Interest can be demonstrated in line with limbs (a), (b) or (c) in the definitions of Qualifying Secure Legal Interest (SO Accommodation) and, or, Qualifying Secure Legal Interest (Rented Accommodation) in the grant agreement. Where a Strategic Partner or Delivery Partner is being paid grant against the value of milestones achieved, the acquisition and start on site milestone should not be achieved, until eligible development expenditure can be recorded that is of a value sufficient to support the achievement of milestones in accordance with the grant agreement
CME
3.5.4 A CME provider may make a start on site tranche claim under certain AHP 2021 to 2026 and SAHP 2026 to 2036 CME grant agreements, which support Golden Brick Schemes and, or, Delivery Phases, in circumstances where:
i) the scheme meets the definition of a Golden Brick Scheme and, or, Golden Brick Delivery Phase as defined under the providers CME grant agreement
ii) the Golden Brick Scheme and, or, Golden Brick Delivery Phase is not designated as a Single Claim Scheme (or flex scheme) and the Grant Recipient has not made (and will not make) any claim for acquisition tranche grant in respect of the golden brick
iii) definition of start on site works has been achieved
iii) the Grant Recipient holds a Golden Brick Secure Legal Interest in the Golden Brick scheme and will be entitled to a Completed Secure Legal Interest prior to practical completion
3.5.5 Golden Brick Secure Legal Interest means the Grant Recipient (landlord) has entered into a binding contract with the owner of the legal and beneficial interest, to later acquire a Completed Secure Legal Interest in the relevant AHP Dwellings, to be constructed on that Site, such that:
(a) the binding contract prescribes that legal completion of the transfer or lease of the Completed Secure Legal Interest to the Grant Recipient shall take place: (i) no earlier than the point at which the relevant AHP Dwellings constitute partly constructed buildings, as defined in paragraph 4.7.4 of HM Revenue and Customs VAT Notice 708; but (ii) prior to the relevant AHP Dwellings achieving practical completion.
(b) the owner of the legal and beneficial interest in the Site is responsible, pursuant to such binding contract, for undertaking or procuring the construction of the relevant AHP Dwellings, up to the point at which the Completed Secure Legal Interest is to be transferred or leased to the Grant Recipient.
(c) the Grant Recipient has, or will have, by the point at which the Completed Secure Legal Interest is to be transferred or leased to the Grant Recipient, contractual arrangements in place (whether as part of such binding contract or pursuant to a separate Building Contract) to undertake, or procure the continued construction of the relevant AHP Dwellings, to practical completion following its acquisition of the Completed Secure Legal Interest.
(d) unless otherwise agreed with Homes England (in Homes England’s absolute discretion) the Grant Recipient’s acquisition of the Completed Interest pursuant to such binding contract is otherwise conditional only upon matters that are, in form and substance, within reasonable control of either the owner of the legal and beneficial interest in the Site and, or, the Grant Recipient.
3.5.6 Subject to the above terms, CME providers may make a claim for start on site tranche for pre-golden brick and post-golden brick stage works, provided the claim is for an amount that (taken with any other scheme grant paid in respect of the scheme) does not exceed the actual development costs incurred at the date of the claim and, such costs are eligible development costs incurred by the provider.
3.5.7 Where a CME provider does not have a compatible grant agreement, which supports Golden Brick Schemes, it cannot make any grant claim until the point of golden brick transfer has occurred and it holds a Completed Secure Legal Interest.
3.5.8 A Golden Brick Scheme and, or, Delivery Phase or scheme and, or, phase otherwise delivered via golden brick, is not eligible for acquisition tranche grant.
Practical Completion claim (further information)
3.6.1 Before reading the further information about our practical completion requirements for new build homes and rehabilitated homes, refer to Programme Management – Milestones for our definition of practical completion. There are also additional requirements in respect of schemes constructed using Modern Methods of Construction (MMC) – refer to Procurement and Scheme Issues - Scheme types and requirements.
3.6.2 Providers must input the following information into our data system:
- rents and service charges, setting out any details that have changed since grant confirmation stage (not required for Re-improvements, Rehabilitation Works Only)
- costs at practical completion
- final cost calculation of grant
- on costs (fees, interest, minor works, insurance and bonds or so on)
3.6.3 At the point of claiming grant, providers must validate (confirm) their claim is correct in the digital system by providing the information required. Refer to 3.3.3 for more information.
3.6.4 For Affordable Rent schemes, rents must meet the requirements of the Rent Standard, refer to Housing for Rent chapter — Rent Standard and Housing for Rent chapter — Affordable Rent.
3.6.5 For Social Rent schemes, rents must meet the requirements of the Rent Standard, refer to Housing for Rent chapter – Rent Standard and Housing for Rent chapter – Social Rent.
3.7 Social HomeBuy
3.7.1 Following legal completion of the initial sale, providers must notify Homes England and can then claim grant based on the discount available to the purchaser. For an explanation of how the Social HomeBuy operates refer to Social HomeBuy chapter.
3.7.2 At the point of claiming grant landlords must validate (confirm) that their claim is correct in the digital system and meets the requirements in the Social HomeBuy chapter — Processing the sale.
3.7.3 For staircasing sales refer to Social HomeBuy chapter – Post sales procedures for more information.
3.8 Right to Acquire
3.8.1 Following legal completion Registered Providers must notify Homes England and can then claim grant based on the discount available to the purchaser. For an explanation of how Right to Acquire operates refer to Right to Acquire chapter.
3.8.2 Registered Providers must claim grant within 6 months of the date of legal completion and can only apply for grant after the legal completion of the sale, not before.
3.9 Leasehold repurchase
3.9.1 For Shared Ownership, the total grant paid will be up to 70% of the value of the shares being repurchased. Payment will be in a single tranche, paid on practical completion. Refer to Shared Ownership chapter — After sales for more information on this use of grant in exceptional circumstances, subject to funding availability.
3.9.2 For Shared Ownership — Rural Repurchase, the total grant payable will be equal to the market value of the shares being purchased, less any surpluses from previous staircasing receipts and other subsidy or recycled grant. Payment will be in a single tranche, paid on practical completion. Refer to Shared Ownership chapter — Rural repurchase for more information.
3.9.3 For Shared Ownership — Protected Area Repurchase, the total grant payable will be equal to the market value of the shares being purchased, less any surpluses from previous staircasing receipts and other subsidy or recycled grant. Payment will be in a single tranche, paid on practical completion. Refer to Shared Ownership chapter — Designated Protected Area repurchase for more information.
3.10 Payment
3.10.1 Homes England will pay grant within 10 working days of the claim being approved for payment.
3.10.2 Homes England will compensate the provider for any late grant payment that is the sole responsibility of Homes England. The compensation will be for any interest charges suffered or for any potential loss of interest that would have been earned by the provider. It is payable upon receipt of a claim from the provider, supported by evidence that such loss has been incurred. The claim can be in the form of a letter addressed to the Finance Department containing an explanation of the amount of the loss, how it has been incurred, together with relevant calculations.
4.1 General
4.1.1 Providers should refer to the relevant clauses in their grant agreement, comply with HMRC requirements and seek their own advice in relation to matters of taxation. Homes England does not give such advice.
5.1 General
5.1.1 Providers must ensure that they are aware of their anti-financial crime obligations and encompassing legislation. Providers must seek their own advice as necessary to ensure compliance.
5.2 The regulations
5.2.1 Details of each piece of legislation can be found on the government legislation website. Also, the Financial Conduct Authority is a useful source for information and advice on such matters. Relevant legislation includes: