1 PURPOSE

1.1 The programme submission must comply with the Funding Conditions as accepted by the RSL’s Committee and confirmed on line by the RSL’s Security Administrator at the beginning of the financial year. Where there are proposed changes to the programme since bid stage the RSL must seek Corporation approval to the changes. See General 01 and Social Homebuy 03  for changes to schemes.

1.2 All RSL applications for Confirmation of grant   and claims for payment of PG must be submitted via the internet using the Corporation’s Investment Management System (IMS). IMS guidance documents are on the Corporation’s IMS web site - www.housingcorp-online.org

1.3 On receipt of a submission for Confirmation of grant   and payment by an RSL, the local office of the Corporation will assess the proposal to confirm that the individual scheme is within the programme for which the allocation was given and that there is sufficient funds within the allocation.

Changes to a programme

1.4 The allocation for the programme is set at Bid stage and will hold for the  whole project. Where there are proposed changes to a programme since the  Bid stage the RSL will need to notify the Corporation who will decide whether  the programme still meets the criteria on which an allocation of PG was  originally given.  See Social Homebuy 03  on changes to a scheme from Bid stage.

1.5 Any change to the programme since the bid stage must be notified to the Corporation. The RSL must keep supporting documentation on file for compliance audit purposes. See Social Homebuy 03  on programme changes

2 TIMING OF APPLICATION

2.1  When the RSL has completed the sale of the property a submission for Confirmation of grant and payment is required 10 working days from the date of legal completion

2.2 The RSL must keep the Corporation informed where a programme is not proceeding according to the timetabled milestones. Funding may be withdrawn if it fails to do so.

3 OTHER SOURCES OF FUNDING

Recycled Capital Grant Fund and Disposal Proceeds Fund

3.1 Please read the Recycled Capital Grant and Disposal Proceeds Fund chapters of this Guide for the permitted uses of   these funds.

Other public subsidy for housing and non-housing costs

3.2 To ensure that public funds from different sources are not paying for the same costs twice the RSL must identify any other proposed source of public subsidy on their submission for participation in the programme. If RSLs want to offer a voluntary sales programme to their tenants that does not conform to the Social Homebuy programme they are free to do so. However, purchase grants will not be available from the Housing Corporation to fund any discounts being offered by the RSL in these circumstances See General 06 for details of which subsidies are deductible or non-deductible from SHG.

RSL’s own funds and private sector contributions

3.3 It is not permitted to use contributions from the private sector or from the RSL’s own reserves to provide discounts higher than those payable in respect of RTA purchases in that locality. RSLs can however, if they wish, assist purchasers with the costs and expenses associated with home purchase, from their own resources.

4 RENTS

Social Homebuy rent and service charges

4.1 The RSL is required to provide rents and service charge information for Social Homebuy schemes. Details of rents, including HB eligible service charges, must be kept on file by the RSL for Compliance Audit purposes.
 
4.2 RSLs may charge SHB rents up to a maximum of 3% of the capital value of unsold equity with a target average across their SHB properties of 2.75%.  RSL’s are therefore expected to base initial rents on an average of 2.75%.  Within these parameters the RSL is expected to propose levels of rents that are considered affordable to SHB purchasers and based on the rents payable by tenants in similar properties in the locality. Annual rent increases are to be limited to RPI plus 0.5%, using the September RPI figure published annually.

4.3 The level of service charge should not vary from the proposed service charge at formal offer stage (see Social Homebuy 13 ).

4.4 Unacceptable levels of rent could lead to Grant being denied or PG being withheld until the rents including HB eligible service charges are brought in line.

5 SUBMISSION REQUIREMENTS

For all schemes

5.1 The RSL must submit the following data following legal completion onto the Corporation’s IMS system for a scheme to receive confirmation of grant and payment approval. (IMS guidance can be found at www.housingcorp-online.org):

• property details;
• Cost and Grant calculations including discount and percentage share to be purchased, if relevant;
• rent and HB eligible service charge data;
• date of legal completion of sale.

5.2 The RSL will not be able to submit a claim  where the total purchase grants required (in money terms) exceed the amount approved as the programme allocation by the Corporation ; only the Corporation can make the changes to the programme allocation in order for the RSL to Allocation Match and submit the scheme in IMS. The Corporation may require a revised bid submission from the RSL before confirmation of grant will be given.
 
5.3 The RSL must be able to confirm acceptance of the on screen certifications that appear at confirmation of grant and payment stage.
 
5.4 Where a charge is to be given to secure private finance, form HACON 6 Application for Section 9 Consent may be required and should be sent to the local Regional office of the Corporation.  See current Corporation guidance on Consents. 

 
6 HACON 6

 
6.1 Once the PG has been confirmed form HACON 6, if required, will be scrutinised by Regulation staff and authorised by the Regulation Manager, to enable consent to be issued to the RSL.  

 
7 FINANCIAL VIABILITY

 
7.1 It is expected that the proposed Social Homebuy receipt  and rent income will have been considered and that, in the long term operational costs including the repayment of loan principal and interest can be met. Any initial revenue deficits should be within the general capacity of the RSL.  The Regulation teams of the Corporation will monitor the effect of development and the general financial status of the RSL. RSLs need to be mindful of the permitted uses under DPF rules in regards to the proposed application of these receipts. 
 

8 CHECKLIST

 
8.1 When submitting an application for Confirmation of grant and payment the RSL will be certifying that the submission conforms to the Funding Conditions as accepted by the RSL’s Committee and confirmed on line by the RSL’s Security Administrator at the beginning of the financial year.
 
8.2 It is a Condition of Grant that the programme and individual scheme complies with all published procedures.  This checklist should assist you in checking the key requirements for a scheme for Social Homebuy. NB The list is not exhaustive and should not be used instead of reading the full procedures.