APPENDIX 1
Draft Affordable Housing S.106 Commuted Sums Grant Policy (corporate branding to be applied)
Introduction
1.
The delivery of
high-quality affordable homes is of great strategic importance to
the council. Homes which are affordable, and delivered to high
design and environmental standards, have a very significant impact
on quality of life for the council’s residents.
2. The council currently receives commuted sums (financial contributions) in certain circumstances, in lieu of the on-site delivery of affordable housing. These sums are made available to enable the delivery of further affordable homes, where projects can demonstrate that they are making a significant contribution to the affordable housing stock through the provision of high-quality homes which are genuinely affordable to lower income households in the area.
Applying for Grant Funding
3.
The council may make
funds available to enable the delivery of new affordable housing
where proposals can demonstrate a significant contribution to
meeting housing need in the district in a way that addresses the
key areas contained in this document. Project proposals are
expected to align with the majority of the key priorities below,
reflecting the council’s Housing Delivery Strategy 2022-2024.
These are: -
-
Delivers affordable housing
-
Delivers social rent
-
Community led
- In
area where there is a high level of demand and deficit of
supply
- Meets
net zero or better carbon build standards
- Achieves low levels of embodied carbon
-
Projects with gas heating will not be considered
- Not
able to access Homes England funding
-
Meeting need from the housing register (e.g. regeneration)
-
Delivers affordable housing in perpetuity
4.
It is important that
any application for grant funding demonstrates that it contributes
to meeting the majority of these priorities before it can be
considered. Significant weight will be given to how a project
proposal meets these priorities in assessing applications.
5. In addition to the above strategic priorities, all proposals must comply with relevant Local Plan policy requirements, building regulations, meet the Nationally Described Space Standard as a minimum, and seek to achieve maximum household occupation through appropriate bedroom sizes.
Eligible Costs
6.
Grant funding is
awarded in relation to identified cost elements. These are: -
-
Acquisition (usually the cost of land)
- Works
(build costs)
-
Oncosts (fees directly associated with the projects, such a
planning fees)
Application Assessment and Criteria
8.
The following criteria
are grouped into themes. Applicants will be required to provide
evidence within the application to cover all these considerations.
They form part of the assessment process, and will also form part
of the overall scoring assessment: -
Governance
-
Governance structure
-
Incorporated company
-
Community led
-
Registered Provider
-
Capability – skills, capacity, experience
Financial Robustness and value for money
- Unit
and scheme costs demonstrating VFM
-
Proportion of grant funding against scheme costs
- Other
sources of funding
-
Robust feasibility appraisal/financial viability assessment
- Risk
assessment
Project management
-
Proposed site status
-
Realistic project plan
-
Project management capacity
- Any
milestones achieved
-
Demonstration of community engagement
-
Evidence of LA discussions/support
Scheme features
- Good
housing type and tenure mix
-
Design aligns to council policy
- Use
of innovative methods
- Low,
zero or negative carbon
- Added
social value (e.g. use of local contractors, apprenticeships)
Financial Appraisal
9.
The financial appraisal of a proposal will undergo the following
review process. It is important that an application is accompanied
by sufficient information to allow a full appraisal to be
undertaken.
a) Application received with supporting information
- Land
acquisition and independent RICS valuation
-
Independent RICS unit GDV valuation
- Contractor
selection process
-
Contractor tender process
-
Contractor cost analysis
- LA
completed model
b) Analysis of development cost information. Ensure the cost
analysis meets minimum build standards, including meeting all
environmental standards.
c) Review levels of grant funding.
d) Holistic review of application
e) Financial risk review
-
Governance
-
Financial robustness
-
Project management
-
Scheme features
10. At each review point if there is a negative outcome there will be an opportunity for the application to resubmit their application having amended their application based on the feedback received.
11. The affordable housing team will review the financial information presented and then compare against industry standard KPIs.
· IRR - Internal rate of return
· GDV - Gross development value
· POC- Profit on cost
· CPSft – Cost per square foot/meter
· PDG - Property demand growth.
A summary of the financial appraisal will be sent to the finance
team to for their comments.
Scoring
12. Applications
must meet the essential criteria, and address the key strategic
priorities of the council’s Housing Delivery Strategy as
outlined in this document. Where there is a limit on the
availability of funds, scores will be used to rank competing
applications. It is therefore important to provide as much detail
as possible in the application.
Scoring Matrix
Governance |
Score (0-3 points) |
Governance structure |
|
Incorporated |
|
Registered Provider |
|
Capability – skills, capacity, experience |
|
Financial robustness and value for money |
|
Unit and scheme costs demonstrating VFM |
|
Proportion of grant funding requested (of tsc) |
|
Robust feasibility appraisal/financial viability assessment |
|
Other sources of funding |
|
Risk assessment |
|
Project management |
|
Proposed site status |
|
Realistic project plan |
|
Project management capacity |
|
Milestones achieved |
|
Demonstration of community engagement |
|
Evidence of LA discussions/support |
|
Scheme features |
|
Good housing type and tenure mix |
|
Design aligns to council policy |
|
Use of innovative methods |
|
Added social value |
|
Meets zero carbon or better |
|
Strategic |
|
Delivers affordable housing |
|
Delivers Social Rent |
|
Community led |
|
Area where high level of demand and deficit of supply |
|
Not able to access Homes England funding (eg regeneration project) |
|
Meeting need from housing register |
|
Delivers affordable housing in perpetuity |
|
13. Scores will be applied on a 0 – 3 basis, depending upon how closely the various elements of a project fit with the elements above.
0
-
Element not present / evidenced
1
-
minimal presence / evidence
2
-
Significant presence / evidence
3
-
Present / fully satisfactory
For
example, a proposal which meets only minimum building regulation
standards is likely to score 1, whereas a zero-carbon scheme would
score a 3. A development comprising all Social Rent would score 3,
whereas a development comprising a mix of Affordable Rent and
Social Rent may score a 2, depending upon the proportion Social
Rent.
Documentation required with the application
14. The
applicant
must ensure that the documentation provided with the application is
sufficient and detailed enough to enable the council to make a
thorough assessment of the proposal in order to be able to arrive
at an informed decision. Where evidence is lacking or incomplete,
this will be reflected in scoring or rejection of the application.
The following documents must be included in any submission, in
addition to other supporting documents.
-
Financial viability appraisal, including a complete breakdown of
all
associated costs
- Title
documents (where applicable)
-
Planning consent
-
Constitution
-
Location plan
Grant Funding Agreement and Payment of Grant
15. Any
successful applicant will be required to enter into a legally
binding grant funding agreement. The agreement will set out the
terms on which the grant is made available. The council has a legal
duty to protect public funds, and provision will be made within the
agreement to ensure that the grant is used for its intended
purpose. Grant will become repayable should the project not deliver
as set out in the agreement, or in the event that any affordable
homes delivered with the benefit of grant, cease to meet the
definition of affordable housing.
16. Applicants
should note that the council will require a notice to be placed on
the title for any grant funded project requiring the
council’s permission in the event of any disposals. Where a
recipient body is not a Registered Provider, the council may
require a legal charge on the relevant land.
17. Grant
will be paid in stages throughout the life of the development
phase. These will be identified within the grant agreement. The key
payment stages typically comprise five milestones, with total grant
payable, apportioned between them.
Timetable and Process
i.
Following
submission of a grant funding application, the council will
acknowledge receipt within 10 working days.
ii.
The
council will provide an indication timescale at this stage. This
will depend significantly upon the quality of the information
provided with the application.
iii.
Once
assessed, an officer report will be produced (if the application is
successful), and a provisional date for consideration by
Cabinet.
iv.
If
approved by the council’s Cabinet, a budget will need to be
set by full Council in most cases. This will be at a subsequent
meeting. The meeting date can be provided once a Cabinet resolution
to approve has been made.
Application Form (Draft)
IMPORTANT
The information provided with this application will be used to determine whether the project is recommended for grant funding to the council’s Cabinet. You should therefore ensure that the form is fully completed, detailing how your proposal meets the council’s priorities and objectives for grant funding set out in this document. All relevant supporting documentation must be submitted with the application.
Name and address of applicant body
|
Contact name
|
Telephone
|
|
RSH Registration Number (if applicable)
|
Site address
|
Summary of project
|
Planning reference (if applicable)
|
Social Rent (yes/no) |
|
Affordable Rent (yes/no) |
|
Net-zero carbon or better (yes/no) |
|
Please set out how the proposals meet the council’s key priorities and objectives
|
Tenure and dwelling type schedule
1 bedroom |
2 bedroom |
3 bedroom |
4+ bedroom |
|
Social Rent |
|
|
|
|
Affordable Rent |
|
|
|
|
Total |
|
|
|
|
Rents (p/w)
Tenure |
1 bedroom |
2 bedroom |
3 bedroom |
4+ bedroom |
Social Rent |
|
|
|
|
Affordable Rent |
|
|
|
|
Average weekly market rent
1 bedroom |
2 bedroom |
3 bedroom |
4+ bedroom |
|
|
|
|
General Needs or Supported?
General Needs |
|
Supported |
|
Project costs
Acquisition |
|
Build |
|
On-costs |
|
Total project costs (TPS) |
|
Project funding
Grant |
|
Private borrowing |
|
RCGF |
|
Other public subsidy (please specify) |
|
Total (should equal TPS above) |
|
Project proposal
Net-Zero carbon or better?
|
Please use this space to provide a full description of the project. This should include how it contributes to meeting housing need in the district, including the need for genuine affordability. You should include basic technical details in relation to heating and energy supply, such as photovoltaics or heat pumps, together with information on construction methods and any fabric first principles.
|
Grant requirement
In addition to providing supporting documents, please briefly explain why the project requires grant funding to enable it to proceed.
|
Document list
Please list the supporting documents submitted with this application.
Date
Name and signature