BREAKING NEWS - SOAHP heads of terms now published

Article

22 September, 2016

On 16 September 2016 the HCA published the heads of terms of the contract to be used under the Shared Ownership and Affordable Homes Programme 2016 - 2021. Please click here to view the Shared Ownership and Affordable Homes Programme Draft Heads of Terms

It should be noted that the heads of terms are in draft form and will be strictly 'subject to contract' and any amendments required on a case by case basis. Here at Forbes our specialist Housing & Regeneration team have had a look through the contract and pulled out some of the key points for you to note:

  • Again, consortiums are encouraged
  • Grant is available to fund the following products only and the terms specify that the organisation permanently use the delivered homes for the purpose the grant was paid (subject to determination by application or successor):
  • The term of the contract is from the date of signature to 31 March 2022 - although provision can be made to extend milestone dates with regard to delays beyond the organisation's control it is clear that all homes under SOAHP must be delivered by 31 March 2022 at the very latest
  • Quarterly review meetings are required as a minimum
  • An Officer's Certificate is required to be provided in IMS quarterly, certifying a number of points including: accuracy, relevant detail has been published, the approved bid is capable of being delivered & no other grant has been utilised (particularly on a Section 106 scheme)
  • Details of 'firm schemes' and 'indicative schemes' are again to be provided at the outset
  • Compliance with the Capital Funding Guide is required
  • All necessary consents to enable development need to be obtained before completion
  • The change procedure is dealt with via IMS and should they be rejected the organisation will have 20 business days to notify the HCA whether they are to proceed on the original basis or withdraw the particular scheme. Under no circumstances will HCA be required to accept any change which would result in the increase of grant
  • If a scheme is withdrawn or there is a default event the HCA can require that they be reimbursed of any grant paid or such grant be re-allocated, amongst other sanctions
  • New named schemes can be added to the contract during the term, subject to approval by HCA
  • The terms detail a number of operational requirements for delivery and management of the contract and any breaches should be notified to the HCA promptly and resolved asap
  • If an organisation's grant exceeds £3million there are additional publishing requirements
  • Payments are again split into 2 tranches - start on site (50%) and practical completion (50%). The HCA will make payments within 15 business days from receipt of a correctly completed & certified claim - and payments can be withheld / adjusted by HCA in certain specified circumstances
  • Affordable rent can be charged on the specialist rent schemes should the contract be terminated
  • Nil grant units are anticipated to be made available

To help our clients prepare for the roll-out of SOAHP we will be in touch with a scheme of training & sector information days. If you have any specific queries on the heads of terms and how they may affect your organisation then please contact Lucy Worrall by email or call 01254 222393.

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