F3 - 16/01Supported Housing Management Grant General Determination 2001
Distributed to Registered social landlords (excluding co-ownership societies) and local authorities.
Summary Announces a new statutory determination on Supported Housing Management Grant (SHMG). Amends circular F1 - 19/97.
1 Introduction
1.1 Legislation requires the Corporation to use statutory determinations to introduce any changes to the principles for calculation and payment of SHMG. The Corporation has consulted on certain changes to these principles and now announces them in the attached determination. This supersedes the one published with circular F1 - 19/97, as far as SHMG is concerned.
2 Changes to the principles
2.1 This determination permits the Corporation to pay SHMG to Registered Social Landlords in respect of residents of local authority accommodation. The Corporation intends to pay such grants only in respect of the following categories of resident:
(b) Teenage parents;
(c) People temporarily moved into local authority stock while the RSL repairs their home; and
(d) People receiving floating support under the Safer Communities Supported Housing Fund.
RSLs may now provide these services for persons who are not their own residents provided that they also carry them out for their own residents.
2.2 The determination lets the Corporation pay SHMG towards a wide range of resettlement activities for residents of certain schemes, in which those activities had previously been funded by grants under s.30 of the Jobseekers Act 1995. The previous determination had been rather more restrictive in the range of permitted activities.
2.3 Finally, the determination enables the Corporation to add interest when it directs recovery of SHMG, in circumstances when a Registered Social Landlord is late in notifying the Corporation of a recovery due or is slow to pay an invoice.
3 Enquiries and further guidance
3.1 The determination does not constitute full guidance. For that, please refer to the detailed guidance specified in the Guide to Supported Housing, April 2001, recently placed on our web site.
3.2 Please direct enquiries about this circular to the supported housing team in Investment Division at 149 Tottenham Court Road.
Annex to circular F3 - 16/01
THE SOCIAL HOUSING GRANT (SUPPORTED HOUSING MANAGEMENT GRANT) GENERAL DETERMINATION 2001
1. The Housing Corporation ("the Corporation"), in exercise of the powers conferred on it by Sections 18 and 27 of the Housing Act 1996 and all other powers enabling it in that behalf, with the approval of the Secretary of State and after consultation with such bodies appearing to the Corporation to be representative of Registered Social Landlords as it considered appropriate, hereby makes the following General Determination of the principles in accordance with which the Corporation shall specify:
(b) procedures for applications for Grant;
(c) methods of calculation of Grant;
(d) arrangements for payment of Grant;
(e) arrangements for cancellation, recovery, reduction, or suspension of Grant;
(f) the matters to be included in directions for interest to be added to recoveries of Grant.
2. This General Determination is made without prejudice to the Corporation's power to make specific Determinations under the provisions of the Housing Act 1996.
CITATION, COMMENCEMENT AND REVOCATION
3. This Determination may be cited as the Social Housing Grant (Supported Housing Management Grant) General Determination 2001.
4. This Determination has effect from 14 March 2001.
5. The Social Housing Grant (Management Grants) General Determination 1997 shall not apply with effect from 14 March 2001 in respect of Supported Housing Management Grant, except for payments due before that date for which Grant remains to be paid.
6. Payments of Supported Housing Management Grant on projects approved under the Social Housing Grant (Management Grants) General Determination 1997 shall, in respect of payments due on or after 14 March 2001, be made under the provisions of this determination.
INTERPRETATION
7. Words and expressions used in this Determination shall, unless the context requires otherwise, have the following meanings:
"Corporation" means The Housing Corporation or its duly appointed agent;
"Dwelling" has the meaning given by section 63 of the Housing Act 1996;
"Grant" means Supported Housing Management Grant;
"Hostel" has the meaning given by section 63 of the Housing Act 1996;
"Housing Management Activities" means a range of activities including policy formulation, appointing management agents, selecting tenants, setting and collecting rents, managing the estate, insuring the property, consulting tenants, dealing with tenant disputes, advising tenants on matters related to their tenancies, dealing with resettlement, liaison with providers of other services needed by the residents, occasional temporary help with matters of care, welfare and support, payment of the salaries and employment costs of staff engaged in these management activities, payment of a proportion of finance and administrative overheads charged to these management activities, and such other items as the Corporation specifies from time to time in published circulars, letters, procedures, on its web site and in other guidance on applying for Grant;
"Housing Services" means a range of activities including services such as providing furniture, communal heat, light, water, television and telephone, lifts, providing security devices, maintaining gardens, grounds, car parks and play areas, cleaning windows and communal areas, refuse disposal, providing fire equipment and alarms, pest control, maintenance of communal kitchen machines, replacement of communal equipment, payment of the salaries and employment costs of staff engaged in the provision of these services, payment of a proportion of finance and administrative overheads charged to these services and such other items as the Corporation specifies from time to time in published circulars, letters, procedures, on its web site and in other guidance on applying for Grant;
"Local Authority" has the meaning given by section 106(1) of the Housing Associations Act 1985;
"Major Repairs Initiative" means a budget of Social Housing Grant allocated to Registered Social Landlords by the Corporation during its financial year ending 31 March 2000 for major repairs, refurbishment and improvement work to take place during the three following financial years;
"Move-On Accommodation" means a Dwelling Owned by a Registered Social Landlord and used, either permanently or temporarily, to house tenants or licensees who could not move directly from Property with a high level of support to entirely independent living;
"Owns" includes both freehold and leasehold tenure, provided that any leasehold tenure is for a term of no less than two years;
"Property" means a Dwelling, Hostel, or Shared Accommodation;
"Registered Social Landlord" means a body registered with the Corporation under section 1(2) or section 3 of the Housing Act 1996;
"Resettlement Housing Activities" means all activities which were formerly funded under Section 30 of the Jobseekers Act 1995 and such other items as the Corporation specifies from time to time in published circulars, letters, procedures, on its web site and in other guidance on applying for Grant. It can include some activities also falling within the interpretations of Housing Management Activities or Housing Services;
"Safer Communities Supported Housing Fund" means a programme of capital grants and Supported Housing Management Grant promoted by the Department of the Environment, Transport and the Regions for the purpose of assisting in preventing social crime;
"Secretary of State" means the Secretary of State for the Environment, Transport and the Regions;
"Shared Accommodation" means a Hostel or other accommodation in which is provided residential accommodation otherwise than in separate and self-contained sets of premises;
"Social Housing Grant" means grant paid under section 18 of the Housing Act 1996;
"Supported Housing" means accommodation Owned by a Registered Social Landlord and allocated to people who need intensive and supportive housing management. It excludes accommodation the primary purpose of which is to provide care rather than housing, accommodation which aims to fulfil a statutory duty other than under housing legislation, and accommodation which is not provided with the aim of providing residents with a permanent home or the life skills and confidence to move into permanent accommodation;
"Supported Housing Management Grant" is a revenue grant paid to Registered Social Landlords under Section 18 of the Housing Act 1996 in respect of Housing Management Activities, Housing Services and Resettlement Housing Activities provided to residents living in Supported Housing;
"Unit" means, in the case of Shared Accommodation, accommodation which is provided for one individual or, in any other case, a Dwelling.
HOUSING ACTIVITIES ELIGIBLE FOR GRANT
8. Grant may be payable to a Registered Social Landlord in respect of Housing Management Activities, Housing Services and, in certain circumstances set out below, Resettlement Housing Activities.
THE CIRCUMSTANCES IN WHICH GRANT IS OR IS NOT TO BE PAYABLE
9. Subject to paragraph 10 below (and also to paragraphs 11 and 13 below in the case of subsection (c)), Grant may be payable to a Registered Social Landlord in respect of Housing Management Activities, Housing Services and Resettlement Housing Activities provided to:
(b) residents living in Dwellings designated as Move-On Accommodation, Owned by a Registered Social Landlord;
(c) residents living in Property Owned by a Local Authority.
10. The Corporation may pay Grant on Resettlement Housing Activities only in respect of Properties previously funded under Section 30 of the Jobseekers Act 1995 by the Department of Social Security.
11. The Corporation shall not pay Grant in respect of Housing Management Activities, Housing Services and Resettlement Housing Activities in respect of residents of any Property Owned by a Local Authority and included in a management agreement within the meaning of sub-sections 27(2) and 27B(4) of the Housing Act 1985 (delegation of housing management functions to tenant management co-operatives).
12. The Corporation may approve and subsequently pay Grant in accordance with the terms of this Determination having regard to:
(b) the value for money and effectiveness of the Housing Management Activities, Housing Services and Resettlement Housing Activities provided, taking account of the location and type of accommodation; and
(c) the economy, efficiency and effectiveness of the Registered Social Landlord concerned.
Circumstances particular to the provision of services to residents living in Property Owned by a Local Authority
13. The Corporation may approve and pay Grant in respect of Housing Management Activities, Housing Services and Resettlement Housing Activities provided to the residents described in sub-paragraph 9(c) above only in the following circumstances:
The residents must have been referred to the Registered Social Landlord or the Local Authority by an agency appointed for that purpose by the Department of the Environment, Transport and the Regions. The residents' initial take-up of tenancies with a Local Authority must have been linked to the provision by a Registered Social Landlord of Housing Management Activities, Housing Services where not already provided by the Local Authority and Resettlement Housing Activities if appropriate. The Registered Social Landlord must satisfy the Corporation that its rules permit it to undertake Housing Management Activities, Housing Services and Resettlement Housing Activities for tenants of a Local Authority.
(b) In respect of teenage parents
The residents must have been referred to the Local Authority by an agency or Registered Social Landlord providing Housing Management and Housing Services to teenage parents, including those aged under eighteen. The residents' initial take-up of tenancies with a Local Authority must have been linked to the provision by a Registered Social Landlord of Housing Management Activities, Housing Services where not already provided by the Local Authority and Resettlement Housing Activities if appropriate. The Registered Social Landlord must satisfy the Corporation that its rules permit it to undertake Housing Management Activities, Housing Services and Resettlement Housing Activities for tenants of a Local Authority.
(c) In respect of residents of a Registered Social Landlord decanted to Local Authority property to enable the Registered Social Landlord to undertake works of repair or improvement approved by the Corporation under its Major Repairs Initiative
The residents must have been referred to the Local Authority by an agency or Registered Social Landlord specifically to enable works under the Major Repairs Initiative to be carried out to the residents' former Properties Owned by the Registered Social Landlord. The residents' initial take-up of tenancies with a Local Authority must have been linked to the provision by a Registered Social Landlord of Housing Management Activities, Housing Services where not already provided by the Local Authority and Resettlement Housing Activities if appropriate. The Registered Social Landlord must satisfy the Corporation that its rules permit it to undertake Housing Management Activities, Housing Services and Resettlement Housing Activities for tenants of a Local Authority.
(d) In respect of residents referred under the Safer Communities Supported Housing Fund
The provision of Housing Management and Housing Services must be within a project approved by the Housing Corporation under the Safer Communities Supported Housing Fund. The Registered Social Landlord must satisfy the Corporation that its rules permit it to undertake Housing Management Activities, Housing Services and Resettlement Housing Activities for tenants of a Local Authority.
PROCEDURE TO BE FOLLOWED IN RELATION TO APPLICATIONS FOR GRANT
14. Applications for Grant should be made to the appropriate Regional Office or Headquarters of the Corporation in accordance with procedures specified from time to time by the Corporation in published circulars, letters, procedures, on its web site and in other guidance on applying for Grant.
METHOD FOR CALCULATING, AND ANY LIMITATIONS ON, THE AMOUNT OF GRANT
15. The amount of Grant payable to a Registered Social Landlord shall be calculated by reference to the number of Units of Supported Housing and Move-On Accommodation which it Owns and manages, or which are Owned by a Local Authority in accordance with paragraph 9(c) above, and their availability for occupation. The amount of Grant per Unit shall be subject to periodic review by the Corporation.
MANNER AND TIMES IN WHICH GRANT IS TO BE PAID
16. Claims for the payment of Grant should be made to the appropriate Corporation office. Applications for payment of Grant shall be made in such form and at such times as the Corporation shall specify in published circulars, letters, procedures, on its web site and in other guidance on applying for Grant.
17. When the Corporation approves a Grant in accordance with its procedures, the Corporation may pay Grant on account in accordance with timetables which it specifies from time to time in published circulars, letters, procedures, on its web site and in other guidance on applying for Grant.
TRANSFER OF PROPERTY TO ANOTHER REGISTERED SOCIAL LANDLORD
18. Where a Unit, on which Grant is payable, is transferred to another Registered Social Landlord, the entitlement to Grant will also be transferred with the change of Ownership.
RECOVERY, CANCELLATION, REDUCTION, SUSPENSION, OR WITHHOLDING OF SUPPORTED HOUSING MANAGEMENT GRANT
19. On the occurrence of a relevant event, as hereinafter defined, the Corporation may recover, cancel, reduce, suspend, or withhold Grant in whole or in part. Relevant events shall comprise:
(b) failure to comply with any condition attached to the payment of Grant;
(c) where the Corporation has already paid Grant on account, failure of a Registered Social Landlord to submit a final claim for Grant within a deadline specified in procedures, timetables or a payment letter;
(d) accommodation to which the Grant relates ceasing to be used for the purpose for which the payment of Grant was made; and
(e) disposal of accommodation to which the Grant relates.
INTEREST ON RECOVERIES OF GRANT
20. The Corporation may direct a Registered Social Landlord to add interest to any amount of Grant repayable upon the events listed in paragraph 19 above. The Corporation may direct the addition of interest in the following circumstances:
(b) when a Registered Social Landlord is late in notifying the Corporation that it has ceased or failed to comply with a condition attached to the payment of Grant;
(c) when a Registered Social Landlord fails to submit a final claim and the Corporation decides to recover a payment of Grant on account;
(d) when a Registered Social Landlord is late in notifying the Corporation that it has ceased to use accommodation for the purpose intended;
(e) when a Registered Social Landlord is late in notifying the Corporation of the disposal of a property to which the Grant relates; and
(f) when a Registered Social Landlord is late in repaying Grant after the Corporation has raised an invoice for repayment.
21. In paragraph 20 above, lateness shall be measured by reference to events which create a requirement to notify the Corporation and timetables and deadlines linked to those events, all of which the Corporation specifies from time to time in published circulars, letters, procedures, on its web site and in other guidance on applying for Grant.
22. Interest will accrue daily from the date when a Registered Social Landlord should have notified the Corporation of an event giving rise to recovery to the date when the Registered Social Landlord actually did notify the Corporation. The Corporation may reduce interest when a Registered Social Landlord fails to notify the Corporation of an event giving rise to recovery if that Registered Social Landlord had already returned the Grant to the Corporation by the notification date.
23. When the Corporation issues an invoice to a Registered Social Landlord for repayment of Grant, or an invoice for interest in respect of late notification of an event giving rise to recovery of Grant, the invoice may provide for the addition of further interest, suspended until the date specified for payment of the invoice. If the Registered Social Landlord does not pay the invoice by the specified date, interest will accrue daily from the date specified for payment of the invoice until the date when the Corporation receives payment of the invoice.
24. The Corporation may apply a different rate of interest to late payment of invoices from that which it applies to late notification of events giving rise to repayment of Grant.
25. With regard to paragraphs 22 to 24 above, the Corporation will specify further the rates and basis for calculation of interest from time to time in published circulars, letters, procedures, on its web site and in other guidance on applying for Grant.
BY ORDER OF THE CORPORATION this 14th day of March 2001
Norman Perry
Chief Executive
________________________________________________________
EXPLANATORY NOTE
(This note is not part of the Determination)
1. This is an update and amendment of the previous (1997) determination. Paragraphs 8 and 9(c) of this Determination will enable the Corporation to pay Supported Housing Management Grant (SHMG) to Registered Social Landlords in respect of residents of local authority accommodation. At present, the Corporation intends to pay such grants only in respect of the four categories of resident mentioned in paragraph 13:
(b) Teenage parents;
(c) People temporarily moved into local authority stock while the RSL repairs their home; and
(d) People receiving floating support under the Safer Communities Supported Housing Fund.
2. The Corporation can now consider making such grants because of the Social Landlords (Additional Purposes or Objects) (No. 2) Order 1999, which extended the range of housing activities in which a RSL could engage. RSLs may now provide services for persons who are not their own residents if the activity is also being carried out for their own residents.
3. Paragraphs 8 and 10 enable the Corporation to pay SHMG for resettlement activities for residents of certain schemes, in which those activities had previously been funded by grants under s.30 of the Jobseekers Act 1995.
4. Paragraphs 20 to 25 enable the Corporation to add interest when it directs recovery of SHMG, in circumstances when a Registered Social Landlord is late in notifying the Corporation or slow to pay an invoice.
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