1 INTRODUCTION

 
1.1 Social Homebuy sales monitoring is an additional stage in the capital funding process and applies to all properties sold under this programme. As RSLs funded through the 2006-08 programme are participating in a two–year pilot programme we will be asking for additional information to be collected and retained for programme evaluation purposes. Details of the specific monitoring reports are to follow but we are looking to build on the information that RSL would normally collect within good governance. The main area of information collection will focus on providing the Corporation with:

• information on the RSL’s marketing performance, e.g. actual against target, levels of pent up but unrealised demand amongst the participants’ tenants to provide data on the level of sales, shares purchased and discounts etc.
• rent and service charge data at the point of sale
• the data collection required for the DPF returns and in particular, the use made of the receipts.

2 INITIAL SOCIAL HOMEBUY REQUIREMENTS

2.1 Following legal completion of the initial purchase and to initiate confirmation of grant   and payment approval the RSL will input initial Social Homebuy sales data into IMS. 
 
2.2 IMS will not facilitate action for confirmation of grant and payment approval where Social Homebuy records are incomplete or incorrect.

 
3 REPORTING ON ANNUAL OUTPUTS

3.1 The RSL is required to provide the Corporation and local authorities with monitoring information on SHB transactions. With effect from 1 April 2006 the RSL will be required to record data via the internet using the Corporation’s IMS system. The RSL will be required to record all income and expenditure data concerning the Disposal Proceeds Fund, together with details of replacement properties.  This annual return should be a national return for each RSL including all SHB transactions and the required data must be input to IMS.  The RSL should provide a copy of the return to each local authority in which sales have taken place.
 

4 DISPOSAL PROCEEDS FUND (DPF)

4.1 Details of how to calculate contributions to the DPF, permitted uses of the DPF and accounting and administration arrangements are set out in the Disposal Proceeds Fund chapter of this guide – further revisions to the DPF chapter will follow in due course. 
 
4.2 The receipts in the DPF which have been generated as a result of sales through Social Homebuy may, with the Housing Corporation’s consent, be used for other purposes in addition to those currently listed in the DPF chapter – please contact your local Regional Investment Officer.
 
4.3 It is expected that Social Homebuy receipts will be applied to create social lettings to assist in relieving homelessness and overcrowding.  RSL’s are required to seek approval from the Housing Corporation in respect of other uses but we are content for RSL’s to undertake the following activities using Social Homebuy receipts:

• Extensions/loft conversions undertaken to provide additional bedrooms /living areas in social rented homes to reduce the need for larger families to move to meet their housing requirements;
• Buying existing satisfactory properties to address the medical needs / overcrowding of existing tenants and shared owners. In the latter instance, the properties released by the shared owner to be sold on shared ownership terms to social housing tenants or households in priority need to release a home for social rent;
• A sum equivalent to the discount payable to a qualifying tenant in their current home to assist with the outright purchase of another home, not owned by their landlord which will release the current social rented property. However, provision will need to be made so that the grant/ discount equivalent is recoverable should the property be sold within five years of the purchase.

4.4 RSLs will be required to provide information as to the use to which these receipts have been put. Accordingly internal monitoring processes should be set up that will enable the receipts arising from the sale of a property through social homebuy to be tracked and accounted for within the DPF.

4.5  Although we will not be requesting individual annual DPF returns for each sale, it is likely that RSLs will be required to demonstrate in due course how the receipts have been uses, particularly in the pursuit of relieving homelessness and overcrowding. The DPF chapter of the guide will be updated in due course to identify the exact data that will be required.
 

Certifications

4.6 The information provided by the RSL on the annual DPF return is the means by which the outputs will be monitored. Therefore the Corporation is reliant on RSLs certifying compliance with the SHB procedural requirements and ensuring that a print off of the annual DPF return is shown to the RSL's external qualified auditor and signed by the RSL's authorised signatory.

4.7 The annual return should be submitted to the Corporation’s IMS in line with guidance in the Dispoal Proceeds Fund chapter.

4.8  The RSL’s external auditors will report on this annually in their consolidated regularity report. See circular R2-40/98 Consolidated Report and Auditor's Opinion on application of annual revenue and capital funding and General 09

 
5   CORE

5.1 RSLs are required to complete CORE sales logs in respect of all homes sold   through Social Homebuy.