1 Overview

1.1 Purpose

1.1.1  This chapter:

• Sets out the “Relevant Events” which trigger Grant Recovery.
• Describes the circumstances under which Recovered Grant must be repaid to the Agency, or where Recovered Grant can be Recycled;
• Describes how to calculate the net sales receipt when property is sold by the RSL, and which is used to Repay or Recycle the Recovered Grant apportioned to the property
• Describes how the Capital Grant is apportioned to each property in schemes developed with Grant
• Describes the Grant Recovery process, highlighting the difference between Repayment and Recycling through the Recycled Capital Grant Fund.
• Describes the Permitted Uses of the Recycled Capital Grant Fund
• Sets out the requirements for accounting, reporting audit
  

1.1.2 The procedures apply to Capital Grants provided through both the Agency and local authorities.  They apply equally to Housing Association Grant and Social Housing Grant, referred to collectively as Capital Grant.

1.1.3 Where properties have been developed by Unregistered Bodies with the assistance of Social Housing Grant,  under s27A of the 1996 Housing Act, and are subsequently transferred to RSLs, the Capital Grant attributed to those properties is to be treated as paid under s18 of that Act and will therefore be subject to these procedures.

 
1.2 Context

1.2.1 The principles governing Grant Recovery following the sale of property (and other defined events) are set out in the Recovery of Capital Grants and Recycled Capital Grant Fund General Determination (the Recovery Determination). Click on the asterisk to see the Recovery Determination.