3  Scheme Types

3.1 General

3.1.1  This section lists the Scheme Types, and their Requirements.

3.1.2  RSLs should note that the Scheme Type classifications used by the Agency are driven by Agency funding issues, and are NOT recognised property development or project management terms familiar to architects, surveyors, developers, builders or others.   RSLS should therefore avoid using this funding–specific jargon when communicating with others, and use more widely recognised terms, to avoid misunderstandings.

3.2 New Build Requirements & Scheme Types

3.2.1 Longevity Requirement

These properties must have a life expectancy of at least 60 years.

In addition, the construction system used must:

• be capable of achieving necessary Building Regulations and other statutory approvals;
• have been assessed and confirmed as suitable for housing by an independent approvals authority such as NHBC, Zurch, Building Life Plans of a body of equivalent standing.

3.2.2 Scheme Types

• Acquisition and Works
• Off The Shelf 
• Works Only
• Land Inclusive Package (aka Package Deal) 

Click on asterisk for further details.  

 

3.3 Rehabilitation Requirements & Scheme Types

3.3.1 Longevity Requirement

These properties must have a life expectancy of at least 30 years after the RSL has completed the works or repair, & improvement .

The RSL must ensure that  an inspection of all properties requiring works is carried out by relevantly qualified, experienced and professionally indemnified technical consultants or relevantly qualified and experienced members of staff.

3.3.2 Scheme Types

• Acquisition and Works
• Existing Satisfactory
• Purchase and Repair
• Works Only
• Re-improvements

Click on asterisk for further details.  

 

3.4 Insurance Requirements

3.4.1 It is a condition of SHG payment Rent and Sale schemes that the RSL, both during development and thereafter, insures the accommodation provided with Reputable Insurers  and keeps insured for its Full Replacement  Value.

For some Guidance click on the asterisk.   

 

3.4.2  The RSL is responsible for all costs of insurance, including premiums, excess  or other costs.

3.4.3 Other risks

In addition to the specified risks of loss or damage to the building caused by fire or aircraft, the Agency requires ‘other risks’ to be covered as follows:

For Rehabilitation property - from the exchange of contracts to purchase until practical completion of the whole or relevant part of the works:

• explosion, lightening, earthquake;
• storm, tempest, flood (not frost);
• bursting, leaking or overflowing of water tanks, water apparatus, water pipes, or sewage pipes.

For Rehabilitation and Newbuild property - from practical completion of the whole or relevant part of the works:

• as for rehabilitation property above; plus
• subsidence, ground heave, or landslip of the site on which the building stands.

3.4.4 Exclusions

The cover outlined under ‘other risks’ above may be subject to the normal insuring exclusions i.e. war, invasion, act of foreign enemy, hostilities, civil war, rebellion, revolution, insurrection, usurped power, loss or damage caused by ionising radiations or contamination by radioactivity from any nuclear fuel, radioactive toxic, explosive nuclear assembly or nuclear components thereof, or pressure waves caused by aircraft or other aerial devices travelling at sonic or supersonic speeds.

3.4.5 The Agency requires prior notification of any other exclusions.

3.4.6 Terrorism is a normal insuring exclusion and falls outside the Agency insurance requirements.  Whether or not to insure for this risk is a matter for individual RSLs to decide according to the perceived risk.

3.5 MMC Categories for Schemes

3.5.1 In order to record the homes that are produced using Modern Methods of Construction , associations will be required to assign a “build category” to schemes at key stages in the processing route.  The following Categories are available.

3.5.2 Categories:

• OSM – Volumetric
• OSM – Panellised
• OSM - Hybrid
• OSM - Sub-Assemblies and Components
• Non-OSM Modern Methods of Construction
• Not Applicable

Click on asterisk for further details.