Delivering Affordable Housing26 September 2011

Naisha PolaineHead of Area – Kent & Essex

Thriving communities, affordable homes

Topics

Changes to HCA

Our achievements

Affordable Rent 11 -15 - Summary

How’s it going to work?

Thriving communities, affordable homes

Reshaping HCA for our new role

Smaller, leaner and more focused on where we can add value

6 local area teams– Midlands– North East, Yorkshire and The

Humber– North West– East and South East– South West– London (until April 2012)

Thriving communities, affordable homes

Didn’t we Do Well - 10/11 £106m

2052 completions

1177 social rent

762 low cost home ownership

435 larger family homes

118 rural homes (< 3000)

c. 6500 people provided homes

c. 4000 jobs

6 hectares brown field land reclaimed

3100 m2 employment floor space

Private sector investment?

Thriving communities, affordable homes

Our investment role:Affordable Homes Programme 2011-15

Maximising the delivery of new affordable housing supply in constrained fiscal position

Funding of £4.5bn (£2.3bn existing commitments) to deliver up to 150,000 new affordable homes

Meeting locally identified needs

A more flexible offer for social housing providers and tenants

Thriving communities, affordable homes

Our investment role:New delivery model for affordable rent

Affordable rents up to 80% of local market rents

Providers have the flexibility to convert properties on re-let to generate additional financial capacity

Close collaborative working between HCA, providers and councils

Offers to cover a four-year period. Offers submitted – 3 May 2011

Allocations announced

Contracts being signed

Thriving communities, affordable homes

Programme Summary : East & South East 11-15 AHP

27% Larger homes

8.5% supported housing homes

10.1% rural homes

75% AR 25% AHO

80% rent to market rent on vast majority of new supply and conversions

• 50 providers in the affordable homes programme – 21 offers rejected

• £229.9m funding across the four year period

• 14,432 homes – 10,874 rent, 3,558 AHO

• £15.9k per home– £18.5k per home for rent– £8.0k per home for AHO

Thriving communities, affordable homes

How Will it Work?

Contracts fixed with firm schemes & indicative programme for minimum geography area

Flexible Contract Management approach by HCA

Quarterly Meetings with RP’s & Lead Contact from HCA

Schemes discussed in advance with RP’s & LA’s

Liase with Local Authorities to monitor progress against priorities

Broker delivery linking up providers with indicative capacity with LA’s

Thriving communities, affordable homes

How Will it Work?

Short Form Contracts available for RP’s who are not in receipt of funding from 2011-15 Programme

After entering into the SFA then provider can:

– Charge affordable rent

– Use RCGF and/or DPF (not on S106 sites)

– Apply on a scheme-by-scheme basis

– Cannot convert existing social rent to Affordable rent

Thriving communities, affordable homes

There’s so much else to talk about .... The HCA role - enabling, investment & regulation

Working with people and places to enable them to deliver homes, economic growth and jobs

Delivering programmes of investment– Affordable Homes Programme– Decent Homes Backlog Programme– Land and regeneration

From April 2012 the HCA will become the economic regulator of social housing providers

Thriving communities, affordable homes

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