New look HCA – funding new affordable
housing
David Warburton, Head of Area, HCA
18 March 2011
Contents
• Policy and economic context
• HCA’s role
• Affordable housing and the new
model
• HCA in the South West
A new delivery environment
• Reduced public funding – requires
innovation and a drive for increased
value for money and greater leverage
of private investment
• Land and regeneration – public assets
crucial for creating a pipeline of our
new development opportunities
• Investment into improving existing
stock and regeneration
• A fresh approach to funding new
affordable homes
• HCA - an investment and enabling
agency
Reshaping HCA for our new role
Smaller, leaner and more focused
on where we can add value
Six local area teams:
– London
– Midlands
– North East, Yorkshire and The
Humber
– North West
– South East and East
– South West
Two corporate directorates:
– Programmes and enabling
– Finance, legal, HR, IT and
corporate assurance
Reduction in running costs and
offices
Reshaping HCA for our new role
Four ‘South West’ teams:– Somerset, Devon,
Exe Authorities, Torbay, Plymouth, Cornwall and Isles of Scilly
– West of England, Gloucestershire and Oxfordshire
– Wiltshire, Swindon and Berkshire
– Bournemouth, Dorset and Poole, Isle of Wight, North Hampshire and PUSH
The HCA role - investment and
enabling
Central to our new role is combining investment, enabling
and land to support delivery of local priorities for housing,
regeneration and economic prosperity
Investing in new housing and regeneration
Proactive enabling support to local partners
Utilising surplus public sector land assets and working
with government to manage the land and property assets
of RDAs
Developing the new model for affordable rent with
registered housing providers (RPs)
Economic regulation of RPs
Local investment planning
Local Investment Plans – all will be
completed with partners by March 2011
HCA is working with 158 local
partnerships nationally and has delivered
16 LIPs in South West operational area
Aligning investment in housing and
regeneration with emerging LEP priorities
Engaging RPs in taking forward thematic
and spatial priorities
Aligning:
– Investment
– Land
– Other funding streams
– New models and tools, e.g. Developer
Partner Panel
HCA funding for affordable housing
2009/10
£3.7bn
2010/11 (budget)
£2.7bn
2011/15 TOTAL
£4.5bn
The 2011/15 total covers both funding for existing NAHP commitments and funding
the new model, includes mortgage rescue, empty homes and continued
provision for Gypsies and Travellers and Places of Change
Target of up to 150,000 new affordable homes,
including 67,000 from committed programme
A new delivery model
Flexibility to generate additional financial
capacity to support new supply
Offers to cover a four-year period
Close collaborative working is key:
– Providers
– Local authorities
– HCA
Local priorities shape new supply
More
for
less
Affordable Rent
Main element of programme
Rents set at up to 80% of market
level (service charge inclusive)
for that property
Up-rated by RPI + 0.5% for
duration of tenancy
Minimum two-year fixed term,
flexibility to offer longer tenancies
Allocations and nominations are
expected to be unchanged
Other options to meet local needs
Affordable home ownership
(shared ownership or equity loans)
where this is a local priority and
offers value for money
Funding for social rented housing
may be considered in exceptional
cases
Other programme elements:– Mortgage Rescue
– Homelessness Change Programme
– Traveller Pitch Funding
– Empty Homes
Conversions
Crucial element to generate sufficient capacity
Consider mobility and risk to provider
No ring-fencing of capacity but encourage providers to aim to invest in same wide housing market area
Primarily to Affordable Rent, but flexibility to convert to shared ownership where appropriate
Good asset management
Even more important
Where is your stock?
What are its characteristics?
What legal restrictions?
– Loan agreements
– S106s
– Nomination agreements
Affordable Rent at a local level
Affordable Rent delivery has
to be aligned with local
priorities
HCA will assist local delivery
with the right mix of:
– Public land assets
– Affordable Rent
– Regulation
– Aligning public funding streams
Local
delivery
Regulation
NAHP/
Affordable
Rent
Land
Aligning
public funding
Affordable Rent at a local level
Providers must work with local authorities in putting forward packages and developing proposals
HCA will seek information on provider discussions with local authorities
HCA will work closely with local authorities in investing in new supply
HCA will work to deliver LIP
priorities
Next steps
Local teams work with LAs, Registered Providers and developers to ensure Affordable Rent meets local ambitions and reflects priorities
Support around housing, tenancies, lettings and allocations, planning and use of land, as well as New Homes Bonus
April: working with RPs on package proposals
3 May: deadline for submission of bids
May – June: assessment and negotiation of offers
June – July: national aggregation and analysis of programme
w/c 4 July: national decisions on programme
July: new programme implementation
Summary
Spending review signals a shift
in the way housing and
regeneration is delivered
HCA will invest in housing and
enable regeneration
Flexible local approach essential
for delivery
RPs critical to planning and
delivery
Alignment of need and
opportunity, affordable homes
programme in South West to be
delivered locally
All partners have a role to play