The HCA has launched its 2015-18 Affordable Homes Programme (AHP) with bids to the £1.7 billion pot to be submitted by noon on 30th April 2014. Announcement of the successful bids is expected mid-July.
No ring-fenced empty homes programme
Unlike the 2011-15 programme, there is no dedicated funding stream for tackling empty homes. This is not a surpise: had there been a further "Empty Homes Programme" then undoubtedly this would have featured in the original Comprehensive Spending Review statement where the 2015-18 AHP programme itself was first announced. Para 209 states
"Providers should note that there is no separate funding for empty homes, homelessness accommodation (other than the Department of Health’s hostels scheme) or for the provision of traveller pitches. However these are all legitimate forms of Affordable Rent provision that could be included in 2015-18 Affordable Homes Programme bids. Assessment of such bids will be undertaken in line with the assessment criteria outlined in Chapter 4 of this document. Particular requirements for these types of provision can be found on the
Homes and Communities Agency website."
Rather too typically, the link does not in fact lead to a general document about "these types of provision" but instead to one that relates specifically to Traveller Pitches.
The only other significant mention of empty homes in the prospectus is in connection with George Clarke as the government's "independent Empty Homes Advisor". His 10-point programme is referenced in a discussion of where demolitons might be acceptable. The conclusion is that "It is not intended that funding will be available for schemes which require multi-landlord, area-wide demolition."
Empty homes options still available
Nevertheless, as noted above, the prospectus does point up the option to bid for traditional varieties of purchase and repair (Existing Satisfactory, Acquisition and Works, Purchase and Repair). The main difference compared with the 2011-15 programme is that they will have to stack up against competing new-build bids. The appropriate link to the HCA website is
here (see section 3.3.3.1 in particular).
Bidding
The prospectus makes it plain that this programme is essentially a continuation of the previous programme: nothing dramatic has been changed. That said:
- only 75% of the pot will be allocated initially, with the balance held back for "future market engagement" ;
- bids can either be "firm" only or "firm and indicative": the latter route looks only to be available to providers who have successfully delivered their indicative allocations in the 2011-15 programme.
Bidding in the IMS online system is expected to open on the 6th February.
Inside and outside London
With London grant funding now allocated through the GLA's separate programme, the main impact on the HCA programme is that conversions to "affordable rent" outside of London cannot be used to fund projects inside London. (Conversions to Affordable Rent involve reletting existing social rent properties at so-called "Affordable Rent" properties at up to 80% of market rents, to boost income streams and allow more borrowing by Registered Providers).
Options for community housing organisations
The option remains, as previously, for small organisations to seek grant-funding directly. But to do so they will need to qualify as HCA Investment Partners. The HCA believes that this process is not unduly onerous. If they wish to become landlords of the homes of he occupants then they would also need to be Registered Providers.
This still leaves open the possiblity of small organisations becoming involved in the programme as partners for other organisations within consortia without necessarily being Investment Partners themselves (so the money is drawn down by a larger Invesment Partner). Potentially they could manage homes (as managing agents not landlords) on behalf of Investment Partners without being Registered Providers themselves. Such arrangements are most likely where close working partnerships have already been built up.
Future programmes?
Disappointment at the lack of an Empty Homes Programme will be tempered in many quarters by the experience of trying to work within the HCA framwork for the 2012-15 programme. it leaves the field open for propoals for a programme that might be more tailored to the empty homes agenda.
With no money allocated in the Comprehensive Spending Review, the possiblity of such an alternative programme must be considered unlikely. But the political benefits of supporting empty homes work remain, whilst the absurdity of the short-term thinking behind initiatives like the Community Grants Programme that withhold longer-term support to the often tiny but highly effective voluntary and community organisations involved, will also be apparent to many. As the time approaches for these small organisations to scale back their operations as funding comes to an end, we can hope that there will be groundswell of opinion in favour of continuation funding.
Accordingly, whilst local authorities will probably remain out in the cold when it comes to government funding strategies, the possibiilty of further support to the small organisations involved in the Community Grants Programme should not be ruled out - particularly if evaluations of the CGP projects demonstrate the additonality that can be achieved. The unexpected announcement of the £60million Clusters programme in 2011 serves as a reminder the windfalls can occur.
