2 Rents

2.1  General

2.1 .1  This section describes the Requirements in relation to rents to be charged on SHG-funded schemes.

 
2.2   Requirements 

2.2.1  Rents are calculated according to a formula based on relative property values and relative local earnings. For more details follow the asterisk.    
 

2.2.2  Where there are changes to the rents from the original bid the RSL must notify the Regional Investment Team, who may require a revised bid submission for the scheme as the rents charged now affect the amount of SHG payable on a scheme.  
 
2.2.3 It is expected that the proposed rental income has been considered and in the long-term operational costs including the repayment of loan principal and interest can be met. Any initial revenue deficits should be within the financial and cash-flow capacity of the RSL. The Regulation teams of the TSA will monitor the effect of development and the general financial status of the RSL.