F2-19/00 Total Cost Indicators, grant rates, value limits and discount amounts, rent caps and administration allowances for 2001/2002
Distributed to All registered social landlords (excluding co-ownership societies) and local authorities.
Summary Advises registered social landlords of the Total Cost Indicators, grant rates, rent caps and administration allowances that will apply from 1 April 2001. This circular will, from 1 April 2001 replace circular F2-22/99.
1 Introduction
1.1 The Total Cost Indicators, grant rates, value limits, discount amounts, rent caps and administration allowances which will apply to registered social landlord (RSL) schemes sponsored by the Housing Corporation or by local authorities and receiving grant confirmation on or after 1 April 2001 have now been determined. Details of and guidance on 'Total Cost Indicators, grant rates, rent caps and administration allowances 2001/2002, effective from 1 April 2001', will be available on the Corporation's website www.housingcorp.gov.uk.
2. Total Cost Indicators (TCI)
2.1 TCI are the Housing Corporation's estimate of the norm total cost of providing different types of housing in different parts of the country. The 2001/2002 TCI will be available on the Corporation's website www.housingcorp.gov.uk from Wednesday 16 August 2000.
2.2 The TCI system is the Housing Corporation's benchmark for assessing the value for money of estimated scheme costs at the point at which grant is formally confirmed. Projects on which costs exceed their TCI are subject to technical scrutiny prior to grant confirmation to ensure that costs above the norm can be justified on value for money grounds.
The Corporation's discretion to approve schemes is limited to 130% TCI. Exceptionally, the Corporation may request the Department of the Environment, Transport and Regions (DETR) to seek special enhanced discretion from Ministers to increase this limit in specific areas where delivery of the planned programme is seriously threatened by high costs of development. There is no discretion to approve individual high cost schemes.
2.3 The changes from the 2000/2001 TCIs are set out below:
´+¢ the works cost element within the TCI base table has been updated to include a broader range of archetypes within the model. The archetypes and costings derive from work commissioned by the DETR and carried out by the Building Cost Information Service (BCIS). As a result, the distribution of costs within the range of the base table has changed. Generally, works costs have increased greater than average above the mid-band but with increasing cost reductions below the midband;
´+¢ the existing supplementary multipliers for sheltered, frail older persons, supported and shared housing have been adjusted to reflect the redistribution of costs within the base table;
´+¢ the existing supplementary multipliers for Rural areas and National Parks have been enhanced in recognition of the increased difficulties of developing schemes in such areas;
´+¢ a new listing has been incorporated to assist RSLs in the identification of 'Areas of Outstanding Beauty' (AOBs) and National Parks;
´+¢ a new supplementary multiplier has been introduced in order to encourage greater sustainability;
´+¢ a new supplementary multiplier has been introduced to encourage RSLs to design homes with lofts that may be readily adapted to provide future additional habitable space;
´+¢ a new supplementary multiplier has been introduced as an encouragement for RSLs to obtain 'Chartered Client' status from the 'Confederation of Construction Clients' and in recognition of the additional expense involved in attaining such status;
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