4 Funding Conditions

4.1 General

4.1.1 The Funding Conditions signed by RSL’s Chief Executive and Chair at the start of each financial year will cover allocations made under KWL together but additional conditions may be imposed on individual schemes or groups of schemes.

4.1.2 Where RSLs are working with a partner to administer KWL, whether another RSL or other body such as a developer, they must have a formal written agreement setting out the responsibilities of each partner.

4.2 Eligible Costs and Calculation of Grant

4.2.1 Eligible costs are a proportion of the purchase price of the homes purchased and an administration charge to cover the cost of publicising and administering the scheme. Grant must be used to subsidise the purchase of homes by key workers and not, in the case of new developments or rehabilitation schemes, excess development costs for example where the cost of development exceeds the value of the property. KWL Grant cannot be paid towards the incidental expenses of purchasers such as legal fees and removal expenses.

4.2.2 Feasibility studies, setting up costs and administration costs in excess of those covered by the administration charge, are ineligible for grant.

4.3 Interest of Delayed Payment of Claims

See Finance 3.9.2

4.4 Suspension and Recovery of Grant

4.4.1 The Housing Corporation reserves the right to suspend Grant payments if an RSL becomes subject to Housing Corporation supervision. Where Grant payment has been suspended, the Corporation may also recover Grant already paid . Refer to the Recovery chapter for more information.

4.4.2 In circumstances where Intermediate Rent units are transferred or disposed of, e.g. as a result of stock rationalisation, (or in other circumstances where the Grant is no longer being used for Intermediate Rents properties), Grant must be repaid to the Corporation.

4.5 Recycling of Grant

4.5.1 For general guidance in respect of Grant Recovery please refer to the Recovery chapter

4.5.2 Where KWL assistance is repayable by the purchaser on disposal, leaving the qualifying form of employment, or other event, details must be shown separately in the HomeBuy Agent's accounts, see Recovery sub-section 5.4

4.5.3 Although HomeBuy Agents can recycle Grant for further KWL, where allocations are held for more than one region, the Grant must remain within the same region.

4.5.4 Any non-HomeBuy Agent receipts should be repaid to the Corporation who will allocate them for the provision of additional homes through the programme. HBA's should notify the Corporation's regional investment team who will arrange for an invoice to be issued. Further guidance will be issued on accounting for and the permitted uses of recycled KWL Grant.