No. 46/04

Press Release: Wednesday 8 September 2004

The Housing Corporation today announced £15m of grants to help ten specialist Black and Minority Ethnic (BME) housing associations to restructure their rents in line with Government policy.

The £15 million was made available by the Office of the Deputy Prime Minister in recognition of the particular problems that some BME associations would face, based on research by the ODPM and the Corporation. It is aimed at assisting associations to restructure their finances.

The Corporation was assisted by an advisory panel comprised of the National Housing Federation, the Federation of Black Housing Organisations and the ODPM. Specialist financial advice was provided by HACAS Chapman Hendy. As initial applications exceeded the available budget, the Corporation determined an approach to allocating grant following consultation.

Housing Corporation Chief Executive, Jon Rouse, said: "I am pleased to announce this package of funding to help BME associations. It reflects the particular problems that some BME associations face in delivering rent levels which are affordable, in line with Government targets.

"We recognise that these associations provide a professional, tailored and much-needed service. We want to ensure that they are able to continue their specialist contribution to the sector."
ends

For more information contact Gillian Watson on 020 7393 2095; email: gillian.watson@housingcorp.gsx.gov.uk or Robert Davies on 020 7393 2227; email: robert.davies@housingcorp.gsx.gov.uk

Notes to Editors:

1. The Housing Corporation is the Government agency responsible for regulating and investing in over 2,000 housing associations in England. It is changing the face of affordable homes, creating strong communities that are exciting places to live and work. Its biggest ever investment programe of £3.3 billion for 2004-06 will fund over 67,000 affordable homes.

2. The 10 BME associations to receive a grant award are AKSA, Arawak, Ashiama, Foundation, Manningham, Nehemiah, Pine Court, Tung Sing, United Churches and Unity.
3. Housing Corporation guidance on implementing rent restructuring is available at www.housingcorplibrary.org.uk.