1  Overview 

1.1  Purpose

1.1.1  This chapter sets out the procedures which must be followed and the conditions under which RSLs must progress rented schemes. 

1.1.2  This is the basis upon which the Homes and Communities Agency will assess applications for SHG.

1.2  Context

1.2.1  The purpose of SHG is to increase the supply of affordable housing.  This Chapter deals with housing for rent, that will be made available at rent levels that are at, or close to Target Rents (social rented housing).  This is the most affordable form of housing produced, with rent levels at approximately one third of market rates on average (i.e. a discount of approximately 70%).

1.2.2  Other forms of affordable housing come under the general term of Intermediate Housing i.e. although less expensive to the residents than buying in the open market for renting in the private rented market, the Housing is more expensive than social rented housing.  Typically, the discount is approximately 20%, rather than 70%.

1.2.3  The following scheme types are included under the Rent heading:

• New Build including Acquisition & Works, Off the Shelf and Works Only schemes;
• Rehabilitation including Acquisition & Works, Existing Satisfactory, Purchase and Repair and Works Only schemes;
• Re-improvement of RSL owned stock but not Major Repairs. Note that Major Repairs are covered by the REPAIR chapter of this Guide. 

1.3  Scheme Administration

1.3.1  Programme Management section 4 sets out the Scheme Administration requirements.

1.3.2  It is highly likely that the detailed design and content of a scheme will change during the development process, as a result of feasibility studies, design development, , conditions attached to Planning Permission, and / or purchase conditions. Variations are dealt with in Programme Management section 6.

 
1.4  Right To Acquire 

1.4.1  The Right to Acquire provisions of the Housing Act 1996 apply to all dwellings built or acquired for Rent using SHG, unless exempted. It is a condition of SHG that RSLs comply with this legislation . Refer to the RTA chapter for more information. 
 
1.4.2  When agreeing funding with the RSL, the Agency will confirm that schemes developed for Rent will be subject to the Right to Acquire. The RSL will have 21 days in which to accept this or to withdraw their application for confirmation of grant. Making an application for SHG will imply acceptance that the Right to Acquire is attached to properties included in the scheme.