Original document : https://www.gov.uk/guidance/capital-funding-guide

Change description : 2022-06-30 13:22:00: Procurement and Scheme Issues – Chapter 9 – Procurement and Scheme Issues, paragraph 3.6.1. Clarification that a valuation commissioned and kept on file for schemes delivered through CME or a Strategic Partnership must be applicable to the grant funded homes only. [Guidance and regulation]

Showing diff : 2022-05-16 16:33:55.402647092 +00:00..2022-06-30 12:22:40.987434311 +00:00

Capital Funding Guide

From:
Homes England
Published
Updated:
30, see all updates
  1. Contents

The Capital Funding Guide (CFG) contains the rules and procedures for all providers delivering affordable housing through one of Homes England's affordable homes programmes.

The CFG provides the rules and requirements for grant funded schemes as well as occasional nil grant schemes, that grant recipients must follow.

If users have queries on any aspect of the requirements contained within this guide, or any related matter, they should contact their contract manager or relevant operating area in the first instance.

  • 1. Shared Ownership

    Homes England's requirements for grant funded Help to Buy: Shared Ownership homes provided through the Shared Ownership and Affordable Homes Programme (SOAHP) 2016 to 2021 and Shared Ownership homes provided through the Affordable Homes Programme (AHP) 2021 to 2026.

  • 2. Rent to Buy

    This chapter sets out the requirements and procedures which must be followed when developing affordable housing as Rent to Buy.

  • 3. Specialist Homes

    This chapter sets out the Agency’s requirements and procedures which must be followed by providers when providing accommodation that is classified as specialist housing.

  • 4. Housing for Rent

    This chapter sets out the procedures and conditions which must be followed by providers progressing schemes for rent, including Affordable Rent and Social Rent. This chapter also sets out eligibility and procedures for works to Registered Providers’ existing rental stock.

  • 5. Department of Health and Social Care Programmes

    This chapter sets out the requirements and procedures which must be followed when developing affordable housing funded through the Department of Health and Social Care’s Care and Support Specialised Housing Fund, the Homelessness Change fund and the Platform for Life fund.

  • 6. Programme Management

    This chapter sets out our requirements in relation to management of a provider’s approved allocation funded through one of Homes England's affordable homes programmes.

  • 7. Grant Recovery - Registered Provider

    This chapter sets out the grant recovery and recycling requirements for all Registered Providers and includes Homes England's Recovery of Capital Grants and Recycled Capital Grant Funds General Determination 2017.

  • 8. Grant Recovery - Unregistered Bodies

    This chapter sets out the grant recovery requirements for all Unregistered Bodies and includes Homes England's Recovery of Capital Grants from Unregistered Providers General Determination 2017.

  • 9. Procurement and Scheme Issues

    This chapter sets out procurement and scheme delivery requirements, including the types of schemes eligible for grant funding.

  • 10. Finance

    This chapter sets out the conditions and procedural requirements for the use of public subsidy.

  • 11. Right to Acquire

    This chapter provides details on the Right to Acquire product, the funding requirements and processes for landlords to follow in respect of the Right to Acquire.

  • 12. Social HomeBuy

    This chapter provides details on the Social HomeBuy product and Homes England's requirements to be followed by Registered Providers.

  • 13. Voluntary Right to Buy Pilot

    This chapter sets out the requirements and procedures which must be followed when providers process a Voluntary Right to Buy discount.

  • 14. Strategic Partnerships

    This chapter sets out our requirements for Strategic Partnerships with Homes England that are funded as part of the Shared Ownership and Affordable Homes Programme (SOAHP) 2016 to 2021 and the Affordable Homes Programme (AHP) 2021 to 2026.

  • 15. Capital Funding Guide Library and Updates

    This chapter provides historical versions of the Capital Funding Guide (CFG) dating back to 2004 and explains how updates to the guide are made and recorded.

  • 16. Glossary

    Contains definitions of words and acronyms used throughout the Capital Funding Guide.

  • 17. Accessibility

    How to get help if you have difficulty using the Capital Funding Guide.

Update history

2024-05-01 17:45
Shared Ownership – Update to Applicant eligibility

2024-05-01 16:55
Shared Ownership – Updates in section 3.2

2024-05-01 15:26
Rent to Buy – Added to 1.4 Applicant eligibility

2024-04-09 13:18
Specialist Homes – Amendment to section 4 Single Homelessness Accommodation Programme (SHAP) paragraph 4.12.1.2 concerning confirmations to be included in the Statement of Grant Usage Capital (SOGU Capital)

2024-04-08 15:45
Procurement and Scheme Issues – Section 2 Procurement, paragraph 2.2.1 Mortgageability and insurability of housing constructed using a non-traditional technique. Updated the list of organisations who are able to undertake a technical assessment when an innovative house building system is to be used.

2024-04-05 17:12
Grant Recovery – Registered Provider – Section 5 RCGF new paragraph 5.1.12 to align with amendments to Chapter 3 Specialist Homes regarding managing the treatment of RCGF for schemes funded through the Rough Sleeping Accommodation Programme and Single Homelessness Accommodation Programme. 6.1.3 Downward staircasing amendment to allow up to 100% RCGF funding for this priority use 6.2 RCGF new permitted use for decarbonisation works/energy efficiency improvements. Also, minor amendments to 2.7.1.6 Tenure Changes and 2.7.8.2 equity loan redemption worked examples

2024-02-29 15:40
Procurement and Scheme Issues – Updates across the manual

2023-12-19 13:12
Shared Ownership – The sub-letting sections 5.3.21 to 5.3.25 have been updated to include guidance linked to DLUHC Secretary of State’s letter of 19 December 2023 to providers in relation to building safety challenges. Additional changes in connection with assessing rent to be paid by a sub-letting tenant, requirements on access to policy and information on sub-letting and guidance on decision making.The resale nominations sections 5.3.37 to 5.3.39 have been updated to provide more information on the approach to be taken on resales within and outside of the nomination period. This includes back-to-back staircasing transactions, resales, where the sale price may be below the valuation and guidance in connection with building safety.

2023-12-19 12:39
Grant Recovery – Registered Provider – RCGF permitted uses sections 6.2 and 6.3 has been updated following DLUHC Secretary of State’s letter of 19 December 2023 to providers on the ability of providers to use RCGF for the equity re-purchase of Shared Ownership homes where there are building safety issues.

2023-11-23 16:28
Programme Management – New agreement types added under 9.2 for traveller pitch.

2023-10-27 17:00
Grant Recovery – Registered Provider – Small changes to make the chapter clearer including how to seek approval to roll over a 3-year-old RCGF balance into subsequent years.

2023-10-23 13:12
Finance – Minor amendments to paragraphs 2.4.2 and and 2.6.2 to emphasise the importance of compliance with the regulator’s Regulatory Standards.

2023-10-12 11:23
Shared Ownership – Changes made to the annual rent reviews on Shared Ownership homes from the Retail Price Index (RPI) to the Consumer Price Index (CPI) – see sections 4.2 and section 11. A new suite of CPI-based model leases is now available (section 11.2) with the Key Information Documents updated to incorporate this and other changes (section 11.3).

2023-09-05 14:14
Shared Ownership – Small changes to make the chapter clearer, including clarifying that we expect Registered Providers to carry across the current protections awarded to shared ownership leaseholders (as ‘qualifying leaseholders’) under Part 5 of the Building Safety Act 2022 if a shared ownership leaseholder were to extend their lease.

2023-08-03 15:37
Grant Recovery – Registered Provider – Further update as part of full chapter revision

2023-06-30 12:00
Grant Recovery – Registered Provider – Chapter 7 completely revised and updated.

2023-06-28 10:11
Specialist Homes – New section 4 added for the Single Homelessness Accommodation Programme (SHAP).

2023-06-27 09:00
Strategic Partnerships – Updated 3.1.2 with information about regeneration.

2023-06-15 16:37
Shared Ownership – Updated Key Information Documents for AHP 2021 to 2026 and SOAHP 2016 to 2021 in section 11.3.6 to remove references to Help to Buy agents. Updated information in sections 11.3.1, 11.3.2 and 11.3.3, including some additional guidance in 11.3.3 about forms of compliance for the requirement for receipt of Key Information Documents by buyers.

2023-06-07 12:01
Shared Ownership – Updates to section 11 because of the addition of new fundamental clauses to model leases to reflect the Shared Ownership product for homes funded by Homes England through the AHP 2021 to 2026. See 11.2.5 for a list of what has changed in the leases.

2023-05-12 14:46
Shared Ownership – Updated the Homes England Shared Ownership initial eligibility and affordability calculator in section 6.4 to reflect the 2023 to 2024 tax year. Updated section 6.4.1.

2023-03-31 13:53
Shared Ownership – Added information to 11.3.1 about removing references to Help to Buy agents in the Key Information Documents.

2023-03-28 16:58
Finance – Updated section 3.6.1.1 to remove a reference to a specific warranty provider.

2023-03-02 17:20
Shared Ownership – Updated throughout to reflect that the Help to Buy Agent service will no longer operate from 1 April 2023. Added section 3.1.6 to explain changes in place from 1 March 2023.

2023-01-31 11:20
Capital Funding Guide Library and Updates – The information in the chapter has been condensed to make it more user-friendly.

2023-01-30 12:38
Programme Management – Added the exceptions from CME flexibilities to section 4.3 to support operationalising the CME flex arrangements for 2022 to 2023.

2023-01-04 11:32
Right to Acquire – Updated section 7 (RTA forms) to reflect forms moving to separate page.

2022-12-02 16:56
Shared Ownership – Updated all Key Information Documents for homes provided through AHP 2021 to 2026 in 11.3.6. Also added information about these documents in 11.3.1.

2022-11-22 13:52
Shared Ownership – Clarification added to 1.3.1 and 5.3.5 relating to Shared Ownership provisions.

2022-11-18 10:38
Shared Ownership – Change made to the ‘Rent increases’ section of the Shared Ownership chapter 1 (paragraphs 4.2.4 and 4.2.5) to clarify operational requirements in connection with annual rent increases

2022-11-02 16:53
Grant Recovery – Registered Provider – Adding information on fire safety works in the list of Recovery of Capital Grants and Recycled Capital Grant Fund permitted uses (paragraph 6.1.5).

2022-10-24 09:58
Right to Acquire – Replaced the RTA forms in section 7.1 – they now include a space for registered providers to insert a logo. The RTA1 form also makes it clearer to tenants that they should return the form to their landlord. Also changed ‘Ministry for Housing, Communities and Local Government’ to ‘Department for Levelling Up, Housing and Communities’ throughout chapter.

2022-10-07 14:34
Programme Management – Updated the publication date for the Unregistered Body (URB) Retained Ownership grant agreement in section 9.2.2.

2022-09-01 14:45
Housing for Rent – Updated section 2.2 in chapter 4 to provide greater clarity around the process.

2022-08-24 11:51
Finance – Updated the email address that bank details should be emailed to in section 3.2.

2022-08-12 15:45
Glossary – Added and amended some definitions to reflect expiring programmes and name changes.

2022-08-03 15:13
Shared Ownership – Added 6.7.2 and 6.7.3, clarifying guidance on Shared Ownership cash purchasers only able to purchase a lower share due to unavailability of mortgage products.

2022-08-02 14:17
Programme Management – Updated section 2, Investment Partner Qualification and the Affordable Homes Programme 2021 to 2026 Grant Agreement, including new subsection 2.1 on Investment Partner Qualification. Also chapter summary and section 9.1.

2022-07-29 09:47
Shared Ownership – Publication of Key Information Documents for Shared Ownership homes provided through the SOAHP 2016 to 2021, which are to be in use by 15th September 2022 at the latest. See section 11.3 for suite of documents and the updated guidance.

2022-07-25 12:44
Strategic Partnerships – Onward Sale information added to section 3.3, and new sections 3.4 and 3.5 added.

2022-07-05 11:23
Strategic Partnerships – Further information on charging Affordable Rent on nil grant homes has been added to paragraph 4.1.6.

2022-07-04 20:24
Specialist Homes – Updated Homes England guidance on the provision of Traveller Pitches. See Chapter 3 (‘Specialist Homes’), section 4.

2022-07-01 12:05
Grant Recovery – Unregistered Bodies – Homes England revised guidance and methodology for the calculation of grant recovery uplift as relevant. For profit Registered Providers should refer to CFG Chapter 7 (section 3.4); unregistered bodies should refer to CFG Chapter 8 (section 3.3).

2022-06-30 14:27
Housing for Rent – Update to Chapter 4 – Rent, section 2.2 to confirm Homes England’s approach and requirements where providers wish to charge Affordable Rent on homes not funded with new grant through the AHP 2021 to 2026 (ie, nil grant homes).

2022-06-30 13:22
Procurement and Scheme Issues – Chapter 9 – Procurement and Scheme Issues, paragraph 3.6.1. Clarification that a valuation commissioned and kept on file for schemes delivered through CME or a Strategic Partnership must be applicable to the grant funded homes only.

2022-05-16 17:33
Shared Ownership – Two changes have been made to the Shared Ownership chapter. First, an exemption (on an exceptional basis) to the minimum 990-year lease requirement for homes provided through the Home Ownership for people with a long-term disability (HOLD) product – see paragraphs 1.4.8, 5.3.4.1 and 5.3.4.2. Second, the abolition of ground rents (or just a peppercorn to be charged) on Homes England funded Shared Ownership homes from 23rd May 2022 except for those where contracts have been exchanged – see section 4.4.

2022-05-13 09:08
Finance – Change to the secure legal interest requirements (section 3.1) to allow for an exemption to be made on the minimum 990 year lease requirement for Shared Ownership homes provided through the Home Ownership for people with a long-term disability (HOLD) product.

2022-04-19 10:27
Grant Recovery – Unregistered Bodies – Revised guidance on grant recovery uplift for unregistered organisations in sections 2.5 and 3.3 in light of Homes England’s current review of the uplift calculation methodology.

2022-04-08 08:58
Shared Ownership – Update to Homes England’s Shared Ownership affordability calculator to reflect tax and National Insurance changes effective from 6th April 2022 – see section 6.4 for more detail.

2022-03-22 09:24
Programme Management – Change to section 4.2 setting out the new security requirements for unregistered bodies in receipt of Homes England grant to align with the new Grant Agreements for the AHP 2021 to 2026.

2022-03-08 13:17
Housing for Rent – Removed sections 1.1.2 to 1.1.8, which were published in error and contain information covered in section 2.

2022-03-04 13:25
Housing for Rent – Full update of the Housing for Rent chapter except section 7 headed ‘Repair’ which remains unchanged.

2022-03-03 15:24
Glossary – Amended ‘Resource Expenditure Limit’ definition to remove an out-of-date reference.

2022-02-25 13:40
Procurement and Scheme Issues – Added section 3.5.8 about elements of schemes produced using Modern Methods of Construction being considered a ‘component’ part contributing to the overall grant funded home.

2022-02-22 13:23
Strategic Partnerships – Updated 2.1.2 to add a link to examples of Strategic Partnership Grant Agreements. Updated 3.2, ‘Activating a Site and Start on Site’, to clarify a point on claiming a grant.

2022-02-17 15:13
Specialist Homes – Update to improve information regarding other relevant CFG chapters outlining rules, requirements and conditions for grant funding.