Housing Corporation News Release

Three-year funding and longer-term funding for strategic sites announced

Pre-qualification prospectus for the Housing Corporation’s 2008-11 National Affordable Housing Programme launched

10 April 2007                         Ref:44/07

The Housing Corporation has today launched the pre-qualification stage of its next multi-billion pound national investment programme with the publication its Pre-Prospectus (Tuesday 10 April 2007).

The Corporation’s 2008-11 National Affordable Housing Programme will deliver affordable homes across England. For the first time it will offer bidders the opportunity to secure funding for three years, stretching to funding for five years for strategic sites.

In a further step change Arms Length Management Organisations (ALMOs) and Local Authority special purpose vehicles are invited to put forward bids for investment, in addition to housing associations and private developers.

The Pre-Prospectus sets out the framework for the 2008-11 NAHP programme, and invites organisations interested in being investment partners to apply for pre-qualification.

The programme has been informed by the Corporation's Future Investment Approaches discussions, and through close working with Communities and Local Government and the Treasury. The result is a streamlined and modernised bidding process, with both efficiency and quality at its heart.

The Pre-Prospectus sets out conditions and targets for successful bidders to deliver, through offering:

• more certainty for providers to develop affordable housing in the longer-term.  The programme will be for the full 3 years 2008-2011 and funding for strategic sites will be available for five years. This certainty will enable providers to plan and land bank with confidence.

• a more flexible approach to when providers can access funding through the programme so  organisations can bring good quality bids throughout. This aligns better with the market and providers' business models. It will also help ensure the public purse gains best possible value from scheme bids.

• an emphasises on performance, judging existing partners on their track record, and requiring them to hit their delivery targets and build quality homes to stay in the competition.

• potential additional opportunities for best performing parties through Partnership Plus status, dependent on excellence in service delivery as well as investment performance.

• increased competition, with the expectation that the number of private sector partners will grow and that, for the first time, the Corporation will fund ALMOs through the programme. Better access to the competition for ALMOs will also release their potential for new supply and estate regeneration.

• expectations for higher quality design in the programme, with publication of the new Housing Corporation Design and Quality Strategy and Standards which are clear, understandable and enforceable.

• raising the bar on environmental standards, setting a clear expectation that housing providers will achieve Code for Sustainable Homes level 3 as part of the 2008-11 programme - two years ahead of the Government's target for the private sector.

• growth in the provision for people with particular needs, for example homes for vulnerable people, and for diverse communities.

• significant efficiency gains across the period, through increased competition, better alignment with planning obligations and work carried out through the  “Unlocking the Door” process – with a continued focus on financial capacity and on better management of procurement and the supply chain.

Housing Corporation Deputy Chief Executive, Steve Douglas said,"The launch of the Pre-Prospectus marks a significant step forward in how we invest.  It is the culmination of our Future Investment Approaches work, picking up the very best ideas developed during that process, and turning them into a detailed framework.

"We believe there is room to expand the market for affordable homes delivery with housing associations, ALMOs and local authority purpose vehicles, as well as with current and potential new private sector partners.

“We also firmly believe that increases in both efficiency and quality can be achieved.  The Pre-Prospectus reflects our continued commitment to design, quality and sustainability. 

"The creation of Communities England offers new possibilities for achieving value from our grant programme – by linking to new land resources through economies of scale, and, when appropriate, through new ways to invest where early intervention and risk can earn a return to support further investment. We look forward to testing some of these ideas in our new programme."

Richard McCarthy, Director General, Programmes, Policy and Innovation at Communities and Local Government, said,  "I welcome the Corporation's Pre-prospectus.  It sets out a number of key changes including longer term funding on strategic sites alongside a more regular engagement with the market.

"These changes will, I believe, secure further efficiency during the next spending review period.  The Pre-Prospectus sets out a direction of travel for the Corporation - innovative, proactive and delivery focused - which will be  a key part of the creation of Communities England.”

Invitations are now invited for expressions of interest in taking part pre qualification.   The deadline for submissions is 12.00 noon on Thursday 17 May 2007.

Copies of the prospectus are available at www.housingcorp.gov.uk.

For more information or pre-prospectus queries please contact:
queries.nahp@housingcorp.gsx.gov.uk.

The full Prospectus will be published in the Summer.

Ends.
 
Notes to editors:          
 
• Press enquiries to Sandra White on 0207 393 2094, Naomi Evans on 0207 393 2118,  or Katy Nicholson on 0207 393 2115
 
• The Housing Corporation is the Government agency responsible for investing in new affordable homes and regulating over 1,500 housing associations across England.  Its biggest ever investment programme of £3.9 billion for 2006-08 will fund 84,000 homes;  49,000 of these will be for affordable rent, and 35,000 will be for affordable sale through the Government's new HomeBuy initiative, helping people to get a foot on the property ladder.

• The Housing Corporation is working with English Partnerships and Communities and Local Government to establish the proposed new national housing and regeneration agency, Communities England.