Updates: Capital Funding Guide
2024
Amendment to section 4 Single Homelessness Accommodation Programme (SHAP) paragraph 4.12.1.2 concerning confirmations to be included in the Statement of Grant Usage Capital (SOGU Capital)
Section 12 Right to Shared Ownership updated.
Section 3, Rough Sleeping Accommodation Programme (RSAP) , paragraph 3.9 Recovery amendment regarding managing the treatment of RCGF for the schemes funded through the RSAP.
Section 4 headed Single Homelessness Accommodation Programme (SHAP), paragraph 4.10 Recovery amendment regarding managing the treatment of RCGF for the schemes funded through the SHAP.
Section 4 headed Social Rent updated.
Amendment to paragraph 7.3.4 Audit scheme file. Valuation report to have the valuer’s signature in a format deemed acceptable by RICS or RICS guidance
7. Grant Recovery - Registered Provider
Section 5 RCGF new paragraph 5.1.12 to align with amendments to Chapter 3 Specialist Homes regarding managing the treatment of RCGF for schemes funded through the Rough Sleeping Accommodation Programme and Single Homelessness Accommodation Programme.
6.1.3 Downward staircasing amendment to allow up to 100% RCGF funding for this priority use
6.2 RCGF new permitted use for decarbonisation works/energy efficiency improvements.
Also, minor amendments to 2.7.1.6 Tenure Changes and 2.7.8.2 equity loan redemption worked examples
9. Procurement and Scheme Issues
Section 2 Procurement, paragraph 2.2.1 Mortgageability and insurability of housing constructed using a non-traditional technique. Updated the list of organisations who are able to undertake a technical assessment when an innovative house building system is to be used.
7. Grant Recovery - Registered Provider
Section 5 RCGF new paragraph 5.1.12 to align with amendments to Chapter 3 Specialist Homes regarding managing the treatment of RCGF for schemes funded through the Rough Sleeping Accommodation Programme and Single Homelessness Accommodation Programme.
6.1.3 Downward staircasing amendment to allow up to 100% RCGF funding for this priority use
6.2 RCGF new permitted use for decarbonisation works/energy efficiency improvements.
Also, minor amendments to 2.7.1.6 Tenure Changes and 2.7.8.2 equity loan redemption worked examples
Updates across the manual
Updates across the manual
Updates across the manual
7. Grant Recovery - Registered Provider
Updates across the manual
9. Procurement and Scheme Issues
Updates across the manual
2023
The sub-letting sections 5.3.21 to 5.3.25 have been updated to include guidance linked to DLUHC Secretary of State's letter of 19 December 2023 to providers in relation to building safety challenges. Additional changes in connection with assessing rent to be paid by a sub-letting tenant, requirements on access to policy and information on sub-letting and guidance on decision making.
The resale nominations sections 5.3.37 to 5.3.39 have been updated to provide more information on the approach to be taken on resales within and outside of the nomination period. This includes back-to-back staircasing transactions, resales, where the sale price may be below the valuation and guidance in connection with building safety.
7. Grant Recovery - Registered Provider
RCGF permitted uses sections 6.2 and 6.3 has been updated following DLUHC Secretary of State's letter of 19 December 2023 to providers on the ability of providers to use RCGF for the equity re-purchase of Shared Ownership homes where there are building safety issues.
A link to the example Grant Agreements has been added to section 5.3.2.
New agreement types added under 9.2 for traveller pitch.
7. Grant Recovery - Registered Provider
Small changes to make the chapter clearer including how to seek approval to roll over a 3-year-old RCGF balance into subsequent years.
(1) Chapter 6 - 'Programme Management' - minor changes to paragraphs 4.1.2, 5.1.5 and 5.1.11 to align with Homes England's Investment Partner Qualification (IPQ) guidance with regard to a provider's status or circumstances which could affect the payment of grant or IPQ status.
(2) Chapter 9 - 'Procurement and Scheme Issues' - paragraph 1.2.5 added to the 'Overview' section to emphasise the importance of providers maintaining their existing stock to a good quality.
(3) Chapter 10 - 'Finance' - minor amendments to paragraphs 2.4.2 and and 2.6.2 to emphasise the importance of compliance with the Regulatory Standards.
9. Procurement and Scheme Issues
Paragraph 1.2.5 added to the 'Overview' section to emphasise the importance of providers maintaining their existing stock to a good quality.
Minor amendments to paragraphs 2.4.2 and and 2.6.2 to emphasise the importance of compliance with the regulator's Regulatory Standards.
Changes made to the annual rent reviews on Shared Ownership homes from the Retail Price Index (RPI) to the Consumer Price Index (CPI) - see sections 4.2 and section 11. A new suite of CPI-based model leases is now available (section 11.2) with the Key Information Documents updated to incorporate this and other changes (section 11.3).
5. Department of Health and Social Care Programmes
Added note explaining that the programmes on this page have now closed.
Small changes to make the chapter clearer, including clarifying that we expect Registered Providers to carry across the current protections awarded to shared ownership leaseholders (as ‘qualifying leaseholders’) under Part 5 of the Building Safety Act 2022 if a shared ownership leaseholder were to extend their lease.
7. Grant Recovery - Registered Provider
Further update as part of full chapter revision
7. Grant Recovery - Registered Provider
Chapter 7 completely revised and updated.
New section 4 added for the Single Homelessness Accommodation Programme (SHAP).
Updated 3.4.5, 9.3 (introduction) and 9.3.2.8 with information about regeneration.
9. Procurement and Scheme Issues
Updated 3.2.2 and 6.3.6 with information about regeneration.
Updated 3.1.2 with information about regeneration.
Updated Key Information Documents for AHP 2021 to 2026 and SOAHP 2016 to 2021 in section 11.3.6 to remove references to Help to Buy agents. Updated information in sections 11.3.1, 11.3.2 and 11.3.3, including some additional guidance in 11.3.3 about forms of compliance for the requirement for receipt of Key Information Documents by buyers.
Updates to section 11 because of the addition of new fundamental clauses to model leases to reflect the Shared Ownership product for homes funded by Homes England through the AHP 2021 to 2026. See 11.2.5 for a list of what has changed in the leases.
Updated the Homes England Shared Ownership initial eligibility and affordability calculator in section 6.4 to reflect the 2023 to 2024 tax year. Updated section 6.4.1.
Added information to 11.3.1 about removing references to Help to Buy agents in the Key Information Documents.
Updated section 4.2.7.1 to remove a reference to a specific warranty provider.
9. Procurement and Scheme Issues
Updated section 3.2.1 to remove a reference to specific independent approvals authorities.
Updated section 3.6.1.1 to remove a reference to a specific warranty provider.
Updated throughout to reflect that the Help to Buy Agent service will no longer operate from 1 April 2023. Added section 3.1.6 to explain changes in place from 1 March 2023.
15. Capital Funding Guide Library and Updates
The information in the chapter has been condensed to make it more user-friendly.
Added the exceptions from CME flexibilities to section 4.3 to support operationalising the CME flex arrangements for 2022 to 2023.
Updated section 7 (RTA forms) to reflect forms moving to separate page.
2022
Updated all Key Information Documents for homes provided through AHP 2021 to 2026 in 11.3.6. Also added information about these documents in 11.3.1.
Clarification added to 1.3.1 and 5.3.5 relating to Shared Ownership provisions.
Change made to the 'Rent increases' section of the Shared Ownership chapter 1 (paragraphs 4.2.4 and 4.2.5) to clarify operational requirements in connection with annual rent increases
7. Grant Recovery - Registered Provider
Adding information on fire safety works in the list of Recovery of Capital Grants and Recycled Capital Grant Fund permitted uses (paragraph 6.1.5).
Replaced the RTA forms in section 7.1 – they now include a space for registered providers to insert a logo. The RTA1 form also makes it clearer to tenants that they should return the form to their landlord. Also changed 'Ministry for Housing, Communities and Local Government' to 'Department for Levelling Up, Housing and Communities' throughout chapter.
Updated the publication date for the Unregistered Body (URB) Retained Ownership grant agreement in section 9.2.2.
Updated section 2.2 in chapter 4 to provide greater clarity around the process.
Updated the email address that bank details should be emailed to in section 3.2.
Added and amended some definitions to reflect expiring programmes and name changes.
Added 6.7.2 and 6.7.3, clarifying guidance on Shared Ownership cash purchasers only able to purchase a lower share due to unavailability of mortgage products.
Updated section 2, Investment Partner Qualification and the Affordable Homes Programme 2021 to 2026 Grant Agreement, including new subsection 2.1 on Investment Partner Qualification. Also chapter summary and section 9.1.
Publication of Key Information Documents for Shared Ownership homes provided through the SOAHP 2016 to 2021, which are to be in use by 15th September 2022 at the latest. See section 11.3 for suite of documents and the updated guidance.
Onward Sale information added to section 3.3, and new sections 3.4 and 3.5 added.
Further information on charging Affordable Rent on nil grant homes has been added to paragraph 4.1.6.
Updated Homes England guidance on the provision of Traveller Pitches. See Chapter 3 ('Specialist Homes'), section 4.
7. Grant Recovery - Registered Provider
Revised guidance and methodology for the calculation of grant recovery uplift. For Profit Registered Providers (refer to CFG Chapter 7 section 3.4); Unregistered Bodies (refer to CFG Chapter 8 section 3.3).
8. Grant Recovery - Unregistered Bodies
Homes England revised guidance and methodology for the calculation of grant recovery uplift as relevant. For profit Registered Providers should refer to CFG Chapter 7 (section 3.4); unregistered bodies should refer to CFG Chapter 8 (section 3.3).
9. Procurement and Scheme Issues
Chapter 9 - Procurement and Scheme Issues, paragraph 3.6.1. Clarification that a valuation commissioned and kept on file for schemes delivered through CME or a Strategic Partnership must be applicable to the grant funded homes only.
Update to Chapter 4 - Rent, section 2.2 to confirm Homes England's approach and requirements where providers wish to charge Affordable Rent on homes not funded with new grant through the AHP 2021 to 2026 (ie, nil grant homes).
Two changes have been made to the Shared Ownership chapter.
First, an exemption (on an exceptional basis) to the minimum 990-year lease requirement for homes provided through the Home Ownership for people with a long-term disability (HOLD) product – see paragraphs 1.4.8, 5.3.4.1 and 5.3.4.2.
Second, the abolition of ground rents (or just a peppercorn to be charged) on Homes England funded Shared Ownership homes from 23rd May 2022 except for those where contracts have been exchanged – see section 4.4.
Additional section added (section 4.4) to reflect the Government's requirement for ground rents to be banned (or reduced to a peppercorn) on Shared Ownership homes funded by Homes England from 16th May 2022. A second change to confirm that Shared Ownership purchases through the Home Ownership for people with a long-term disability (HOLD) variant are exempt from the minimum 990 year lease requirement on an exceptional basis can be found in paragraph 1.4.8 and section 5.3.4.
Change to the secure legal interest requirements (section 3.1) to allow for an exemption to be made on the minimum 990 year lease requirement for Shared Ownership homes provided through the Home Ownership for people with a long-term disability (HOLD) product.
7. Grant Recovery - Registered Provider
Revised guidance on grant recovery uplift for profit making Registered Providers in sections 2.5, 3.3, 5.7 and 5.9 in light of Homes England's current review of the uplift calculation methodology.
8. Grant Recovery - Unregistered Bodies
Revised guidance on grant recovery uplift for unregistered organisations in sections 2.5 and 3.3 in light of Homes England's current review of the uplift calculation methodology.
Update to Homes England's Shared Ownership affordability calculator to reflect tax and National Insurance changes effective from 6th April 2022 - see section 6.4 for more detail.
Change to section 4.2 setting out the new security requirements for unregistered bodies in receipt of Homes England grant to align with the new Grant Agreements for the AHP 2021 to 2026.
Removed sections 1.1.2 to 1.1.8, which were published in error and contain information covered in section 2.
Full update of the Housing for Rent chapter except section 7 headed 'Repair' which remains unchanged.
Updated sections 3.5.3 and 7.7.11 to remove references to 'operating area' and add the correct Homes England team name where relevant.
7. Grant Recovery - Registered Provider
Updated sections 6.1.4, 6.2.2, 6.3.2, 6.3.5, 6.3.6 and 6.3.7 to remove references to 'operating area' and add correct the Homes England team name where relevant.
8. Grant Recovery - Unregistered Bodies
Updated section 3.4.1.2 to remove reference to 'operating area' and use the correct Homes England team name.
Updated sections 4.4.4 and 5.5.4 to remove references to 'operating area' and use the correct Homes England team name.
15. Capital Funding Guide Library and Updates
Fixed 7 broken links to the National Archives.
Amended 'Resource Expenditure Limit' definition to remove an out-of-date reference.
Updated clause 9.1 of section 3 (Rough Sleeping Accommodation Programme) to add a clarification around Modern Methods of Construction.
7. Grant Recovery - Registered Provider
Updated 3.4.2.1 to add a clarification around Modern Methods of Construction.
9. Procurement and Scheme Issues
Added section 3.5.8 about elements of schemes produced using Modern Methods of Construction being considered a ‘component’ part contributing to the overall grant funded home.
Updated 2.1.2 to add a link to examples of Strategic Partnership Grant Agreements. Updated 3.2, 'Activating a Site and Start on Site', to clarify a point on claiming a grant.
Update to improve information regarding other relevant CFG chapters outlining rules, requirements and conditions for grant funding.
Added Section 3.2 Activating a Site and Start on Site – clarification.
Updated references to the Shared Ownership Joint Guidance in sections 5.2.1 and 7.4.7 to note that this guidance will be updated in 2022.
Updated to add new AHP 21-26 grant agreements for Strategic Partnerships not-for profit and for-profit and URB (agreed transfer) grant agreement.
Made information on post-sale administration fees more prominent in section 7.
9. Procurement and Scheme Issues
Updated self-insurance position for local authorities.
2021
Updated sections 2.3 and 3.1 – and added sections 5.2 and 5.3. These updates relate to Strategic Partners who are for profit Registered Providers or Unregistered Bodies under a Strategic Partnership Grant Agreement funded as part of the Affordable Homes Programme 2021 to 2026.
9. Procurement and Scheme Issues
Updated 3.6 to add clarity around strategic partnerships.
Edits throughout to make clearer where information applies to the Shared Ownership and Affordable Homes Programme 2016 to 2021 and the Affordable Homes Programme 2021 to 2026.
Addition of section 12 for more clarity around RtSO and the 10-year initial repair period.
Make funding requirements concerning valuations clearer.
9. Procurement and Scheme Issues
Making our funding requirements for valuations clearer.
The Shared Ownership chapter has been updated to include additional supporting documents for the AHP 2021 to 2026 - including Older Persons Shared Ownership and Designated Protected Area leases and Key Information Documents for these leases (and for Home Ownership for people with long-term disabilities).
9. Procurement and Scheme Issues
Make funding requirements concerning valuations clearer.
New section added.
Section 11 has been updated to provide further guidance on the use of model leases.
Updates to sections 1.3.9 and 12.1 to provide more info and clarity about the Shared Ownership model.
Updated section 3.3 to provide more info and clarity about the Shared Ownership model.
Updated 9.2.2 and 9.2.3 to reflect the availability of additional Grant Agreement examples.
Documents changed from PDF to .odt accessible file types
Withdrawal of Right to Acquire information booklet and redirection to main Right to Acquire guidance.
Updates to key information documents for shared owners (11.2.5)
Addition and removal of points in sections 1.3, 1.4, 2.3, 2.4, 3.1, 3.2 and 6.1
Addition of new section on Rough Sleepers Accommodation Programme and link to an example of a grant agreement.
Added examples of new grant agreements to 9.2.
This chapter has been updated to reflect changes made to the Shared Ownership model confirmed by Government on 1 April 2021 which applies to grant funded homes through the Affordable Homes Programme 2021 to 2026. Further updates will follow.
Section 3.4.9 has been updated to provide details of Government Office Regions and the local and unitary authorities within each region.
Section 9 provides information on Investment Partner Qualification for the Affordable Homes Programme 2021 to 2026.
9. Procurement and Scheme Issues
Section 3.5 has been updated to provide further details on MMC categories and pre-manufactured value (see also section 3.5.5).
Section 5.3 and 5.4 has been added to to explain grant draw down requirements for different types of Strategic Partnerships in the Affordable Housing Programme 2021 to 2026.
2020
Section 1.5 has been updated to provide further details of funding conditions in connection with the Right to Shared Ownership.
Section 3 has been updated to include a defined list of high affordability pressure areas in connection with funding available for Social Rent in the AHP 2021 to 2026.
Section 9 has been introduced to set out the assessment framework for bidding via Continuous Market Engagement in the AHP 2021 to 2026.
7. Grant Recovery - Registered Provider
Section 3 has been updated to include further guidance on the grant recovery rules for homes sold through the Right to Shared Ownership.
9. Procurement and Scheme Issues
Section 3 has been updated with new categories and definitions for Modern Methods of Construction.
The glossary has updated definitions for Low Medium Volume Builder, Brownfield land Greenfield land.
1. Help to Buy: Shared Ownership
Section 12 has been added to refer to changes to the Shared Ownership model as part of the Affordable Homes Programme 2021 to 2026.
Updated to include reference to the Affordable Homes Programme 2021 to 2026
Additional supported housing client groups added in section 2.4.
Guidance on funding for Traveller Pitches in section 3 (moved from the Procurement and Scheme Issues chapter).
References made to the Affordable Homes Programme 2021 to 2026.
Guidance in connection with the Affordable Homes Programme 2021 to 2026 now included.
Section 1.5 provides guidance on the Right to Shared Ownership
Section 3.1.4 provides guidance on funding for Social Rent in the Affordable Homes Programme 2021 to 2026
Reference to the Affordable Homes Programme 2021 to 2026 at section 1.1.3.
7. Grant Recovery - Registered Provider
Section 8 added to provide guidance on grant recovery in the Affordable Homes Programme 2021 to 2026.
8. Grant Recovery - Unregistered Bodies
Section 5 added to provide guidance on grant recovery in the Affordable Homes Programme 2021 to 2026.
9. Procurement and Scheme Issues
Reference to the Affordable Homes Programme 2021 to 2026 added at section 1.1.2 and 3.5.1.
Reference to the Affordable Homes Programme 2021 to 2026 added at section 1.1.2.
Reference to the Affordable Homes Programme 2021 to 2026 added at section 1.1.2.
Programme Management - section 4 updated to clarify payment tranches in connection with milestones for acquisition, start on site and completions.
2019
Section 4.2.7 has been updated to clarify the warranty requirements in respect of different scheme types
9. Procurement and Scheme Issues
Section 3.6 has been added to clarify the valuation requirements for different scheme types
Section 3.6 has been updated to clarify the warranty requirements in respect of different scheme types
9. Procurement and Scheme Issues
Updated title of section 4.3.2
9. Procurement and Scheme Issues
10.04.2019 - Updated to include section 4.3 in Chapter 9 - Move On Fund
2018
Information about audit scheme files included at section 7.3.4
New chapter setting out the programme requirements for not for profit housing associations (Registered Providers) who are in a Strategic Partnership with Homes England.
Section 7.3.7 of the Programme Management chapter includes an updated list of professional bodies for the purposes of Independent Auditor Appointments.
13. Voluntary Right to Buy Pilot
New chapter setting out the requirements for the Voluntary Right to Buy pilot in the Midlands (launched 16 August 2018).
1. Help to Buy: Shared Ownership
Section 3.7.7 has been updated to provide further clarity on savings levels for Older Persons Shared Ownership
9. Procurement and Scheme Issues
Section 8 has been updated to provide details of revised Homes England signboard requirements
2017
Section 4.2 has been updated to provide details of payment of grant tranches upon the achievement of the acquisition, start on site and practical completion milestones.
9. Procurement and Scheme Issues
Updated guidance in section 4 on lease and repair empty homes and traveller picthes
1. Help to Buy: Shared Ownership
Guidance for the Shared Ownership sustainability calculator (section 6.1) has been updated to provide further clarity on its application.
7. Grant Recovery - Registered Provider
This chapter has been updated to reflect provisions made in the Recovery of Capital Grants and Recycled Capital Grant Fund General Determination 2017 for Registered Providers.
8. Grant Recovery - Unregistered Bodies
This is a new chapter which sets out the grant recovery procedures for Unregistered Bodies as specified in the Recovery of Capital Grant from Unregistered Providers General Determination 2017.
2016
1. Help to Buy: Shared Ownership
Help to Buy: Shared Ownership - An updated version of the Procedures for varying shared ownership leases - background information has been added to section 11.7.2.
1. Help to Buy: Shared Ownership
11.7.2 - The 'Procedures for varying shared ownership leases - background information' document has been revised to reflect the updated process to request variations
New section added.
12. Capital Funding Guide Library and Updates
New section added.
8. Procurement and Scheme Issues
New section added.
New section added.
3. Specialist Homes for Older, Disabled and Vulnerable People
New section added.
5. Department of Health Programmes
New section added.
8. Procurement and Scheme Issues
New section added.
New section added.
5. Department of Health Programmes
New section added.
New section added.
New section added.
3. Specialist Homes for Older, Disabled and Vulnerable People
New section added.
New section added.
New section added.
12. Capital Funding Guide Library and Updates
New section added.
New section added.
3. Specialist Homes for Older, Disabled and Vulnerable People
New section added.
New section added.
New section added.
8. Procurement and Scheme Issues
New section added.
New section added.
New section added.
New section added.
3. Specialist Homes for Older, Disabled and Vulnerable People
New section added.
New section added.
8. Procurement and Scheme Issues
New section added.
New section added.
12. Capital Funding Guide Library and Updates
New section added.
New section added.
5. Department of Health Programmes
New section added.
New section added.
New section added.
New section added.
New section added.
New section added.
8. Procurement and Scheme Issues
New section added.
New section added.
1. Help to Buy: Shared Ownership
New section added.
5. Department of Health Programmes
New section added.
New section added.
12. Capital Funding Guide Library and Updates
New section added.
New section added.
New section added.
New section added.
New section added.
New section added.
3. Specialist Homes for Older, Disabled and Vulnerable People
New section added.