The Housing Corporation launched the pre-qualification stage of its next multi-billion pound national investment programme, with the publication of its Pre-Prospectus.
The Corporation's 2008-11 National Affordable Housing Programme (NAHP) will deliver affordable homes across England. For the first time it will offer bidders the opportunity to secure funding for three years, stretching to funding for five years for strategic sites.
In a further change, Arms Length Management Organisations (ALMOs) and local authority special purpose vehicles are invited to put forward bids for investment, in addition to housing associations and private developers.
The Pre-Prospectus sets out the framework for the 2008-11 NAHP, and invites organisations interested in being investment partners to apply for pre-qualification.
The programme has been informed by the Corporation's Future Investment Approaches discussions, and through close working with Communities and Local Government and the Treasury.
The Pre-Prospectus sets out conditions and targets for successful bidders to deliver, through offering:
More certainty for providers to develop affordable housing in the longer-term. The programme will be for the full three years (2008-2011) and funding for strategic sites will be available for five years. This certainty will enable providers to plan and land bank with confidence.
A more flexible approach to when providers can access funding through the programme so that organisations can bring good quality bids throughout. This aligns better with the market and providers' business models. It will also help ensure the public purse gains best possible value from scheme bids.
An emphasis on performance, judging existing partners on their track record, and requiring them to hit their delivery targets and build quality homes to stay in the competition.
Potential additional opportunities for best performing parties through Partnership Plus status, dependent on excellence in service delivery as well as investment performance.
Increased competition, with the expectation that the number of private sector partners will grow and that, for the first time, the Corporation will fund ALMOs through the programme. Better access to the competition for ALMOs will also release their potential for new supply and estate regeneration.
Expectations for higher quality design in the programme, with the publication of the new Housing Corporation Design and Quality Strategy and Standards, which are clear, understandable and enforceable.
A raising of the bar on environmental standards, setting a clear expectation that housing providers will achieve Code for Sustainable Homes level 3 as part of the 2008-11 programme - two years ahead of the Government's target for the private sector.
Growth in provision for people with particular needs, for example homes for vulnerable people, and for diverse communities.
Significant efficiency gains across the period, through increased competition, better alignment with planning obligations, and work carried out through the "Unlocking the Door" process - with a continued focus on financial capacity and on better management of procurement and the supply chain.
Housing Corporation Deputy Chief Executive, Steve Douglas, said:
"The launch of the Pre-Prospectus marks a significant step forward in how we invest. It is the culmination of our Future Investment Approaches work, picking up the very best ideas developed during that process, and turning them into a detailed framework.
"We believe there is room to expand the market for affordable homes delivery with housing associations, ALMOs and local authority purpose vehicles, as well as with current and potential new private sector partners.
"We also firmly believe that increases in both efficiency and quality can be achieved. The Pre-Prospectus reflects our continued commitment to design, quality and sustainability.
"The creation of Communities England offers new possibilities for achieving value from our grant programme - by linking to new land resources through economies of scale, and, when appropriate, through new ways to invest where early intervention and risk can earn a return to support further investment. We look forward to testing some of these ideas in our new programme."
The Housing Corporation announced that new discounts are being offered to help tenants get onto the housing ladder through the pilot Social HomeBuy scheme, which enables tenants of local authorities and housing associations to buy a share in their current home at a discount.
From April 2008, under Social HomeBuy, local authority and housing association tenants were entitled to a discount on any further shares they buy - not just on the initial share.
The Government is already consulting with the housing associations participating in the pilots and key stakeholders on the detail of how to implement this improvement.
Details of the change include:
Social HomeBuy enables tenants of participating local authorities and housing associations to buy a share in their rented home. Purchasers currently receive a discount on the initial share, which is pro-rata to the Right To Acquire discount for the area.
As part of ongoing improvements to the pilot programme purchasers, from April 2008, will receive a further percentage of the Right To Acquire discount when they increase their equity stake. For example, a Social HomeBuy purchaser buying a 25% share in a local authority area where the maximum Right to Acquire discount is £16,000 will receive £4,000 discount on the initial purchase and a further £8,000 if they increase their equity stake by a further 50%.
The aim is to encourage more social tenants to participate in the scheme and to enable more tenants access to home ownership at a level at which they can afford and sustain.
Further discount will also be available, retrospectively, to existing purchasers of the pilot programmes if they wish to buy further shares.
Further guidance on amendments to standard leases and repayment of discount will be issued by Communities and Local Government and the Housing Corporation in the summer.
The West Midlands Rural Affairs Forum proposed innovative and radical solutions to the provision of rural affordable housing across the region for the future. The Forum launched a major initiative, following the publication of the Affordable Rural Housing Commission report, and established its own task group to ascertain how the four recommendations made might best be delivered within the West Midlands.
The Forum put forward proposals to significantly increase both the rate and volume of affordable homes to people living and working in rural communities. It also challenged many aspects of current policy and practice, and recommends a specifically rural-centred approach including:
The West Midlands Rural Affairs Forum is one of eight independent regional forums in England that acts as a stakeholder group representing the voice of rural customers.
An extra 1,700 homes will be provided as part of an additional £100 million loan deal secured by Peterborough's biggest landlord. Cross Keys Homes will use the money to help fund its development and growth programme as part of a new 31-year business plan.
The loan arrangement will allow an additional 1,500 affordable properties to be built or purchased across the city over the next five years, together with a further 200 properties at market rent levels.
Development will be predominantly in the Peterborough area through partnership working with Peterborough City Council and Circle Anglia, Cross Keys Homes' development partner.
The loan has been arranged at competitive rates of interest through the housing association's existing lenders: Royal Bank of Scotland and Newcastle Building Society, who are now joined by new lender Lloyds TSB.
As part of the package, the Royal Bank of Scotland has also donated £10,000 towards Cross Keys Homes' community projects.