Successful places with homes and jobs A NATIONAL AGENCY WORKING LOCALLY HCA Partner Meeting Nottingham 11 February 2014 Live #HCAmeets

Live tweeting:  Follow  Use #HCAmeets  Key headlines  Pertinent questions  Capture discussion Live #HCAmeets

Agenda  Performance and delivery update (10 mins)  Affordable Homes Programme (1 hour) –Overview –Q&A / discussion  Other HCA news and updates (10 mins)  Future communications and engagement (10 mins) Live #HCAmeets

Performance on Completions Live #HCAmeets

Performance on Completions Live #HCAmeets

Performance on Starts Live #HCAmeets

Performance on Starts Live #HCAmeets

Affordable Homes Programme Live #HCAmeets

Delivery context  Builds on current programme – Midlands £294m for 16,000 homes  £1.7bn budget outside London for new programme  ‘Something for something’: efficient use of assets  Scheme by scheme payment  Two routes for delivery: Mixed and Firm Scheme Only  Up to 75% allocated via initial bid round, then continuous market engagement  Focus on new supply to meet local needs including one and two beds  Driving efficient procurement and construction innovation Live #HCAmeets

Funding model  Providers should look to use seven sources of cost contribution: 1.Borrowing against new Affordable Rent properties 2.Borrowing against conversions 3.Disposals (asset management) 4.Cross subsidy, such as Recycled Capital Grant Fund and Disposal Proceeds Fund 5.Providers’ own resources 6.Free or discounted land 7.Access to guarantees  Grant as a balancing sum Live #HCAmeets

Bidding requirements: two routes Live #HCAmeets Route 1 - mixed:  For existing partners who have met delivery expectations in 2013/14 and have a programme of >£5m  Partners can submit bids for firm and indicative proposals  Bid minimum of 50% firm / 50% indicative with an overall programme aim of 70% firm / 30% indicative  All indicative schemes must be firm by 30 May 2016

Bidding requirements: two routes Route 2 - firm schemes only:  Any bidder may bid under this route  All firm schemes must include: –Name of the scheme and X/Y coordinates –Details of land ownership –Planning status –Tender stage Live #HCAmeets

Bidding - summary  Payment on start and on completion (50/50) for RPs only  Unregistered bodies 100% at practical completion  Providers must demonstrate commitment to achieve construction and procurement efficiencies  No funding for Section 106 unless (by absolute exception) via assessment  Value for money assessment for grant schemes only (nil grant schemes set to one side). But welcome bids with nil grant units  No pre-set split of funding across areas  Demolition: Ministers have expressed strong preference for refurbishment  Design and quality outcome of the Technical Standards review not known, but providers should form their own view Live #HCAmeets

Assessing bids  Fit with local need (local authority role)  Value for money 50% weighting  Deliverability 50% weighting (by March 2018)  Meet the regulator’s viability and governance standard Live #HCAmeets

Assessment – the role of local authorities  Critical in assessing ‘fit with local need’  Working with local teams through established partnerships to support in the assessment  Firm and indicative proposals will be verified  Discussions will also include alignment with strategic economic priorities of LEPs  Accommodation sizes and role of local authority land and land costs will be considerations “Strong evidence, including from the current Programme, that a local authority and local providers have been able to work well together to support delivery of new affordable housing within the parameters of the programme, will be considered to offer particularly strong local fit.” Live #HCAmeets

Products  Affordable Rent  Social Rent only in exceptional circumstances  Affordable Home Ownership (shared ownership only)  Supported and rural housing encouraged  Bids for Affordable Rent can include: –Hostel accommodation –Travellers’ pitches –Former empty properties brought back into use as affordable housing Live #HCAmeets

Provider and programme requirements  Who can bid? –Private Registered Providers –Local authorities and ALMOs –Community groups strongly encouraged to work in partnership –Developers  Bidders who intend to be the landlord must have achieved Registered Provider status before completed homes are made available or transfer  All successful bidders must have Investment Partner status and be an RP if they want start on site tranche before any payments are made (PQQ for new bidders only) Live #HCAmeets

Provider and programme requirements  All providers must have a working IMS account - we recommend this is set up in advance of the deadline  Further information on our website: –Equality and diversity –Procurement efficiency –Employment and skills homes-programme Live #HCAmeets

Timetable  Bid round launched: 27 January  Close of bid round: 30 April  Deadline for submission of supporting information (via IMS): 7 May  Assessment of bids: beginning of May to 20 June  Moderation of bids: 23–30 June  Clearance of recommendations for allocation: beginning of July  Announcement of successful allocations: late July Live #HCAmeets

Live #HCAmeets

Other HCA opportunities – Local Infrastructure Fund 2  A further £1bn announced in Autumn Statement over 6 years  Focus on ‘scale’ and deliverability to unlock 250,000 homes  Prospectus expected over next few months  By way of infrastructure loan focussed on private sector partner Live #HCAmeets  LIF investment to date has supported infrastructure for Enterprise Zones and accelerated locally- supported large scale housing

Priors Hall, North East Corby  1000 acres with capacity to deliver 5100 homes  63,000sqm commercial space  3 primary and 1 secondary school  500acres of parkland  Has received Kickstart, GBB and ATLAS support Live #HCAmeets

Future communications and engagement The challenge… Live #HCAmeets

Midlands operating context  78 Local Authorities –14 Unitary –56 District –8 County  11 LEPs  6 EZ’s  3 HCA offices  Major Cities  Economic growth  Significant rural area  10.8m people Live #HCAmeets

A complex business Market Interventions Affordable homes 2,452ha Land portfolio Economic growth Relationship management Delivery pressures Live #HCAmeets

A renewed focus on engagement  Improved segmentation and targeting – more opportunities with more focus (AHP, land, construction…)  Backed-up by structured, regular communication – HCA national enews, Midlands bulletin, trade media, Twitter  LinkedIn – forum for discussion on delivery, sector news and short-cut to useful information  Annual Midlands event – overview of business, priorities and opportunities, and networking (September)  Overall – move to engagement, dialogue and focus on relationships Live #HCAmeets

Keep in touch    #HCAMids #HCAmeets  /homes-&-communities-agency  Live #HCAmeets