Affordable Housing Capital Funding Guide
Introduction
Welcome to the GLA’s Affordable Housing Capital Funding Guide (AHCFG). This guide contains the rules and procedures for investment partners (IPs) providing housing with funding from the GLA. It includes rules and procedures on nil grant schemes.
Contents of the guide
Recovery of Capital Grant General Determinations
In London, the GLA has the power to determine the events that can lead to the recovery of grant from a Registered Provider (including local authorities). The GLA can also determine the circumstances under which a Registered Provider can recycle grant into a fund to enable the provision of new homes. The Determination originally issued in 2015, which applies to Registered Providers, has been revised to reflect changes introduced in the Housing and Planning Act 2016.
RCGD - Registered Providers 2017
Under the Affordable Homes Programme 2016-21, grant may be given by the GLA to any organisation and not just registered providers, so a separate new Determination is also being published to govern recovery of grant from unregistered bodies.
RCGD - Unregistered Bodies 2017
These Determinations were confirmed following a consultation process with relevant bodies. A consultation document setting out the queries received and the GLA’s response.
System Guidance: RCGF
All holders of these funds are required to complete an annual return to the GLA via the GLA-Open Project System. Guidance on completing this return for 2023-24 is available below:
2024-25 returns: GLA-OPS User Guide 9. 2024-25 RCGF returns and certification requirements.
General guidance on how to access and use GLA-OPS.
- 9 August 2017 - Updated the section 'PSI Signboards.'
- 1 April 2015: New version of AHCFG
- 19 August 2015 - changes made: Deletion of references to IMS funding conditions & HQIs. Deletion of most compliance audit material. Updating of hyperlinks & paragraph numbering for cross-referencing within the chapter.
- 22 December 2015 - Changes made: Confirmation that main works contract costs can include transport construction. Definition of start on site for rehabilitation/conversion schemes. Explanation of how and when to submit the final grant claim if some planning conditions are outstanding.
- 15 February 2016 - change made: New wording in paragraph 2.3.6 on conflict of interest.
- 26 July 2016 - changes made – Updating of links and clarification of length of lease required for grant-funded schemes, fixed broken hyperlinks.
- February 2019 – changes made – introduces guidance for housing products introduced in the Mayor’s Affordable Homes Programme 2016-21.
- 1 April 2015: New version of AHCFG
- 3 March 2016 - Change made - Adjustments to rent calculations to reflect recent changes.
- 15 July 2016 - Fixed broken link at 3.1.28
- 11 October 2016 - Changes made - To take account of the social housing rents introduced by the Welfare Reform and Work Act 2016, and associated secondary legislation, and updates and fixes hyperlinks.
- 31 August 2016 - changes made: Update to DPF links and references.
- 1 April 2015: New version of AHCFG
- 18 May 2015: Changes made: Updated links to model leases for use from 30 April 2015. Updated guidance within the shared ownership section to reflect changes to lease (pre-emption clause). Update to para 4.1.30 for IPs offering equity loans. Update to ‘Right of First Refusal’ section providing guidance on use of Deed of Variation.
- 20 August 2015 - changes made: Updates to a number of sections: The commencement of the three month marketing period for the purposes of the cascade to GLA income thresholds; Guidance on setting rents to bring into line with the MHC2015-18 prospectus; Clarifications to the equity loan section; and an update to the section on Affordability.
- 18 January 2016 - changes made: Sections added to reflect two historic products; Rent to HomeBuy and Discounted Market Sale.
- 4 February 2016 - changes made: This update creates new paragraphs at 4.1.112, 4.1.113 and 4.1.115 regarding the communication of information relating to service charges, their affordability and additional maintenance costs.
- 16 February 2016 - changes made: New wording in paragraph 4.1.47 on conflict of interest.
- 1 April 2016 - changes made: Revised income threshold, effective from 1 April 2016.
- 19 July 2016 - changes made: Fixed broken links across the section.
- 20 July 2015 - changes made - Addition of Lease and Repair section.
- 1 April 2015: New version of AHCFG
Grant Recovery
- 13 January 2020 - Changes made – Updated to include methodology for calculating Uplift Amounts.
- 1 April 2015: New GLA version of AHCFG.
- 23 July 2015: New GLA version of AHCFG incorporating the change introduced by the Determination issued 1 4 15, clarifying the GLA’s approach to use of recovered grant and the requirement for all use of recovered grant to be approved by the GLA.
- 16 July 2019: Grant recovery - Registered Providers - Updates section to reflect the Recovery of Capital Grants and Recycled Capital Grant Fund General Determination 2017 and the current Affordable Homes Programme; Includes links to standard forms for historical grant and constitutional change notifications; Various other changes.
- 18 July 2018 – Changes made – New section added following the Mayor’s decision to introduce a funding condition to require resident ballots in strategic estate regeneration projects.
- February 2019 – Changes made – Minor clarifications including: replacing references to “grant” with “GLA funding” (paras 8.1.3, 8.1.4, 8.5.19 and 8.7.1); removing references to “additional HRA borrowing” (para 8.2.2); inserting references to “long leasehold” (paras 8.3.1 and 8.3.4); clarifying wording related to artificial partitioning (para 8.3.5 and 8.7.4); clarifying wording of Exemption 3 (paras 8.6.10 and 8.6.12); and clarifying examples of “material deviations” (para 8.7.3).
Compliance audit
- 28 July 2021 - changes made - Links to new checklists and associated information. Social Sector ACM Cladding template published.
- 1 April 2015: New version of AHCFG
- 3 July 2015 - changes made: Providers no longer have to submit TPISH data to BCIS. Independent auditors no longer have to attach supporting documents or evidence with their reports; instead they should retain scanned copies for at least six years.
- 7 August 2015 - changes made: Update to Audit Document File requirements relating to electronic copies of documents and archiving policy. Addition of template for Independent Auditor's Report, Compliance Audit TIS Checklist and 'Which Compliance Audit?' guidance document.
- 9 August 2016 - changes made: Revised chapter uploaded for 2016-17 Compliance Audit, with links to initiation form, report templates and checklists.
- 11 September 2017 - change made - Revised Rent & Sale 15-18 checklist uploaded.
- 12 July 2018 - changes made to Compliance Audit checklist
- 9 July 2019 - Checklists updated
- 13 August 2020 - changes made - Links to new checklists and associated information. Social Sector ACM Cladding template published.
The HCA Affordable Housing Guide
The new GLA AHCFG replaces both documents for activity in London. The HCA’s AHCFG is still the relevant document for activity outside London.
Where users have queries in relation to the AHCFG they should contact their Area Manager in the GLA Housing and Land team.
History of the guide
The GLA’s guide was first published in April 2015. Before that, most of the GLA’s guidance was contained in the version of the AHCFG published by the Homes and Communities Agency (HCA). This historic guidance, which may be relevant for some schemes, is on the HCA’s website in the AHCFG library.
GLA - Historical grant and constitutional changes notifications
Registered Providers and Unregistered Bodies with grant-funded homes are required to inform the GLA of events leading to grant recovery and/or planned constitutional changes.
As a consequence of the removal of the regulatory consents regime in April 2017, the GLA, has established arrangements to provide visibility of any changes affecting GLA grant-funded housing within Greater London.
From 6 April 2017, the Registered Provider and Unregistered Bodies Recovery of Capital Grant General Determinations 2017 make provision for a grant notifications procedure, which all providers who have a legal interest in grant-funded homes or land within Greater London must follow. All such providers, whether registered or unregistered, are required to notify the GLA of any relevant events that may give rise to the recovery of grant and any constitutional changes that may affect the legal ownership of their grant-funded homes. This is to make sure the GLA is able to protect and oversee the use of historical grant.
Registered Providers and Unregistered Bodies should consult the Recovery Determinations and the associated grant recovery chapters in the GLA’s Affordable Housing Capital Funding Guide for details of the relevant events and information of whether and when a notification needs to be submitted.
Some relevant events require partners to notify the GLA at least 14 days in advance of the forecast date of occurrence (e.g. open market disposals) and others require partners to notify the GLA not more than 14 days from the date which the relevant event occurred (e.g. failure to use capital grant for the purpose for which it was paid).
All providers should notify Homes England as early as possible when considering future constitutional changes that may affect the legal ownership of their grant-funded homes. This will allow the GLA time to review whether the changes will affect the legal route to recovery and ensure any necessary legal forms are in place or grant is recovered before the changes take place.
Guidance with links to the relevant form.
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