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1.1 Purpose

1.1.1 This chapter sets out our requirementsÌýconcerningÌýtheÌýmanagement of a provider’s approvedÌýgrantÌýfundingÌýallocationÌýto deliver new homesÌýthrough all deliveryÌýroutes.ÌýItÌýalso provides information aboutÌýthe Continuous Market Engagement (CME)Ìý»å±ð±ô¾±±¹±ð°ù²âÌý°ù´Ç³Ü³Ù±ð.

1.1.2 Strategic Partners should also readÌýtheÌýStrategic Partnerships chapter,Ìýwhich provides specific requirements that only apply to the Strategic Partnership delivery route.

1.1.3 This chapterÌýshouldÌýbeÌýread in conjunction with theseÌýCFG chapters:

a) The supply of homesÌýfor rent (Social Rent and Affordable Rent) — Housing for Rent chapter.

b) TheÌýsupply of specialist and supported housing — Specialist Homes chapter.

c) Homes funded for Affordable Home Ownership — Shared OwnershipÌý²¹²Ô»åÌýRent to BuyÌý³¦³ó²¹±è³Ù±ð°ù²õ.

d) Procurement and Scheme IssuesÌýto understand ourÌýdelivery requirements, including the types of schemesÌýeligible for grant funding.

e) FinanceÌýto understandÌýthe conditions and procedural requirements for the use of grant.

f) Grant Recovery — Registered ProviderÌý²¹²Ô»åÌýGrant Recovery — Unregistered BodiesÌýto understand our grant recovery requirements for theseÌý2 provider types.

1.1.4 This content covers 3 affordable homesÌýprogrammes. Each isÌýat a different phase of theirÌýlifespanÌý²¹²Ô»åÌýgrant funding allocationsÌýmay be processed byÌýtheÌýdifferentÌýdigital grant management systemsÌýused by Homes England,Ìýcovered in sectionÌý1.4.Ìý

Some of the terminology in the CFGÌývaries orÌýmayÌýbeÌýinterchangeable dependent onÌýtheÌýprogrammeÌý²¹²Ô»åÌýdigitalÌýsystemÌýapplicable.ÌýFor example,Ìýthe use of theÌýtermsÌý‘scheme’ and ‘delivery phase’,Ìý²¹²Ô»åÌý‘indicative schemes’Ìýand’Ìýfuture opportunities’Ìý—Ìýrefer toÌý3.2.

Providers can find earlier versions of this chapter in theÌýCapital Funding Guide Library and Updates chapter. Providers mustÌýalwaysÌýreferÌýtoÌýtheÌýdefinitive termsÌýset out in theirÌýgrant agreement with Homes England.

Information on where to send general enquiries about our guidance for each programme can be found inÌý1.3.

1.2 Homes England’s powers

1.2.1 Homes England is empowered underÌýÌýof the HRA 2008Ìýto make grants available to facilitate the development and provision of housing. TheÌýHousing and Regeneration Act 2008 (HRAÌý2008) givesÌýHomes England a statutory function to support the delivery of social housing tenures. Its objects include the improvement of the supply and quality of housing in England. Under the HRAÌý2008 socialÌýhousing includes both social and affordable housing tenures.

1.2.2 Grant given under AHP and SAHP meet the definition of ‘social housing assistance’ (SHA) underÌýÌýof the HRA 2008. This gives Homes England a statutory power to:Ìý

• reduce, restrict, suspend or cancel grant
• direct a recipient of grant to repay it or apply it for another social housing purpose

1.2.3 Under Section 19(4) of the HRA 2008, grant may be given on such terms and conditions as Homes England considers appropriate. The providers grant agreement (incorporating this CFG) and the Recovery Determination (refer to 1.2.4 and 1.2.5) sets out these terms and conditions (refer to 2.3).

1.2.4 Homes England may exercise the above powers in accordance with such principles as it has determined. Currently, Homes England has determined such principles:

• in respect ofÌýRegistered Providers, in the Recovery of capital grants from registered providers general determination 2017Ìý(RPÌýRD 2017)Ìý

• in respect of Unregistered Bodies, in theÌýRecovery of capital grants from unregistered bodies general determination 2017

1.2.5 Together, they are known as the Recovery Determination. The provisions in the Recovery Determination provide Homes England with an important statutory power to protect the use of grant for the purposes of social and affordable housing in perpetuity. This means that homes funded must continue to be used for their original purpose until the grant invested in them is recycled into other affordable housing or repaid to Homes England. Refer to the Grant Recovery — Registered Provider chapter and Grant Recovery — Unregistered Bodies chapter for more information.

1.2.6 Under HRA 2008 (6) and (7), Homes England can also exercise the same right to require grant to be repaid or recycled in respect of persons to whom grant-funded land or property is sold as it had in respect of original grant recipient. The only exception (HRA 2008 section 33(6A)) is where an entity enforces security over land, or the land is being disposed of as part of a winding-up or administration process, to a body other than a Registered Provider. Otherwise, the successor in title of land or property funded by SHA is subject to the statutory protections summarised above as a matter of law.

1.2.7 The Recovery Determination applies to SHA provided since 6 April 2017 under the HRA 2008. The RP RD 2017 also applies to equivalent grant provided under the Housing Act 1996, Housing Act 1988, Housing Associations Act 1985 and grants paid under any enactment replaced by section 41 of the Housing Associations Act 1985.

1.3 Affordable Homes Programmes

There are 3 affordable homes programmes in operation. EachÌýis atÌýaÌýdifferent phase of their lifespan.

Shared Ownership and Affordable Homes Programme (SOAHP) 2016 to 2021

Applications for funding closed in 2021 and the focus is now on delivery. Homes funded under the SOAHP 2016 to 2021 needed to be started on site by 31 March 2021 for completion by 31 March 2022. Or, where schemes were granted an extension to delivery by Homes England, 31 March 2022 starts needed to be completed by 31 March 2023. Final completions should be achieved by 31 March 2026 for CME schemes and Strategic Partnership schemes. Refer to the SOAHP 2016 to 2021 contract  and the SOAHP 2016 to 2021 prospectus for more information.

For general enquires about SOAHP email AHPFAQ@homesengland.gov.uk and for specific enquiries about Shared Ownership and Rent to Buy email sharedownership@homesengland.gov.uk. Alternatively, contact your Homes England contract manager in the affordable housing grants team if you have one already.

Affordable Homes Programme (AHP) 2021 to 2026

This programme is in the delivery phase. Initially schemes funded throughÌýtheÌýCMEÌýroute must have started on site by 30 September 2025 and completed by 31 March 2026. Homes funded through the Strategic Partnerships routeÌýmust have started on site by 31 March 2026 and completed by 31 March 2028, with Long Term Strategic PartnersÌýpermitted anÌýadditionalÌýyear for delivery onÌýboth the on-site start and longstopÌýcompletion dates.ÌýThe additionalÌýbridge fundingÌýannounced in March 2025 was for CME and Strategic Partnerships schemes that achieve start on site in financial year 2026 and 2027 andÌýachieve completionÌýby 31ÌýMarch 2029.ÌýSee the AHP 2021 to 2026 funding guidanceÌýfor more informationÌýincluding, for example:

• who can apply
• the priorities for funding
• theÌýfunding routes
• theÌýtypes of housing that SAHP funding can be used to deliver and not deliver

For general enquires aboutÌýthe AHPÌýcontactÌýAHPFAQ@homesengland.gov.ukÌý²¹²Ô»åÌýfor specific enquiriesÌýabout Shared Ownership and Rent to Buy contactÌýsharedownership@homesengland.gov.uk. Alternatively,Ìýif you already have a Homes England contract manager in the affordable housing grants team, contact them.

Social and Affordable Homes Programme (SAHP) 2026 to 2036

This programme launched on 7 November 2025 with applications for funding open in February 2026.ÌýUnder the CME route, all homes must start on site by 31 March 2036 and complete by 31 March 2039.ÌýUnder the Strategic Partnership route, all homes must start on site by 31 March 2036 and complete by 31 March 2039.ÌýAny grant funding payments after 31 March 2036 for CME and Strategic Partnerships are subject to budget availability.ÌýFor more information refer toÌýtheÌýSAHP 2026 to 2036 funding guidance,ÌýtheÌýCME application guidanceÌý²¹²Ô»åÌýtheÌýStrategic Partnerships application guidanceÌý(which areÌýalso known as ‘bidding guidance’). AlsoÌýrefer to sectionÌý9Ìýof this chapter, which explainsÌýthe CME funding route and assessment process.Ìý

Homes England will be giving subsidies toÌýServices of Public Economic InterestÌý(SPEI)Ìýenterprises under the SAHPÌýfor theÌýpurpose ofÌýthe provision of SPEI services (the provision of social and/or affordable housing) pursuant toÌýÌýof the Subsidy Control Act 2022.ÌýSPEI subsidies are regulated under the UK’s subsidy control regime, allowing public authorities to provide financial support for essential services that the market may not supply adequately.ÌýRefer to Ìýon the Department of Business and Trade databaseÌý– Subsidy Control numberÌýSC11452.

For enquires about SAHP funding email SAHP@homesengland.gov.uk.

1.4 Digital grant management system

1.4.1 All providers who have received aÌýgrant fundingÌýallocationÌýfromÌýHomes EnglandÌýviaÌýone of theÌýaffordable homes programmesÌý(refer to 1.3)Ìýwill be required toÌýuseÌýeitherÌýour Investment Management System (IMS)Ìýor Affordable Housing Grants Management System (AHGMS). They areÌýHomes England’s digital grant management systemsÌý²¹²Ô»åÌýareÌýcalled theÌýdigital systemÌýin this chapter.ÌýFor SOAHP 2016 to 2021 and AHP 2021 to 2026Ìýproviders should use IMS.ÌýFor SAHP providers should use AHGMS not IMS.

1.4.2ÌýGuidance and training is available for the Investment Management System. For helpÌýusingÌýeither IMS or AHGMSÌýcontact theÌýHomes EnglandÌýhelpdesk on 01908 353 604, or email: ServiceDesk@homesengland.gov.uk.

2.1 Investment Partner Qualification (IPQ)

2.1.1 All organisations delivering grant funded homes must be a qualified Homes England Investment Partner (IP). Organisations can apply direct as a single entity or via a consortium arrangement (refer to 2.2.). This does not need to be achieved ahead of applying for funding but does need to be achieved before any grant can be paid.

2.1.2 IP status is a Homes England qualification. It means that an organisation:

• is eligible to be an Investment Partner
• has the financial and technical capacity to deliver their proposed scheme or schemes
• has financial and legal ‘good standing’

2.1.3 Read the IPQ application forms and guidance for more information about the IPQ process and how to apply. Certain organisations will be required to supply ‘Know Your Customer’ information for our  customer due diligence process once a funding allocation has been secured.

2.1.4 Organisations who are unable to satisfy all of Homes England’s requirements at the application stage may:

• have an application declined
• have limitedÌýInvestmentÌýPartner qualification status granted

2.1.5 Homes England reserves the right toÌýreview, limit orÌýremoveÌýan organisation’sÌýIPÌýstatus at any time if the criteria by which the partner was measured in their original application has changed.ÌýReadÌýtheÌýIPQ guidanceÌýto understandÌýthe events and circumstances that might lead to Homes England removing IPÌýstatus.

2.16 For further information about the IPQ process emailÌýprovider.onboarding@homesengland.gov.uk.

2.2 Consortium arrangementsÌý(CME delivery route only)

2.2.1 Where providers have formed a consortium of organisations acting together to deliver a programme of affordable home schemes, one provider must undertake the role of consortium lead partner. Consortium arrangements do not apply to the Strategic Partnership delivery route.

2.2.2 The consortium lead partner is expected to work closely with other consortium members to deliver the anticipated supply throughout the contract period. Consortium lead partners are the initial recipient for our grant and are responsible for collating and providing information to us at any review meeting held by Homes England. They also have additional responsibilities and obligations on behalf of the other members as outlined in the contract.

2.2.3 IP applications on behalf of a consortium must be co-ordinated by the consortium lead partner defined as the applicant organisation. The applicant organisation should provide all relevant completed forms and supporting documents and any supplemental information to Homes England, on behalf of all consortium members. Read our Investment Partner Qualification application forms and guidance.

2.3 The Grant AgreementÌý²¹²Ô»åÌýcontractÌýmanagement

2.3.1 All providers successful inÌýsecuring fundingÌýare requiredÌýto enterÌýintoÌýa grant agreementÌý(aÌýcontract)Ìýwith Homes England.ÌýOurÌýsuite of agreementsÌýcontainÌýourÌýstandard,Ìýnon-negotiable,ÌýtermsÌýand conditions.

2.3.2 For illustration purposes only,Ìýthe suite ofÌýexampleÌýHomesÌýEngland grantÌýagreementsÌýare available online:

• grant agreement examples for the AHP 2021 to 2026
• grant agreement examples for the SAHP 2026 to 2036

2.3.3 AsÌýany award of grant isÌýmadeÌýsubject toÌýcontract,Ìýproviders should clearly articulate their delivery model including landowner, developer and landlord roles at funding application stageÌýto ensureÌýthatÌýtheÌýappropriateÌýstandardÌýform of grant agreement can be entered into with Homes England.

2.3.4 Providers must refer to their grant agreement to understand the terms and conditions of grant and seek legal advice as necessary. Providers who have a question or enquiry about their grant agreement should contact Housing.Contracts@homesengland.gov.uk.

2.3.5 AlongsideÌýHome England’s statutory powersÌý(referÌýtoÌý1.2)Ìýthe grant agreementÌýincludes, but is not limited to,Ìýthe conditions for allocation and payment of grant,Ìýa robust mechanism toÌýmonitor performance, ensure funding is directed towards the identified costs, andÌýthatÌýgrant is not paid in advance of need.ÌýFor more information onÌýwhat is meantÌýbyÌýgrant not paid in advance of need seeÌýFinance chapter — Grant claims and payments.

2.3.6 Under the agreement each scheme is contractually required to be delivered in accordance with:

• the agreed delivery outputs
• timetable
• milestones
• submitted standards
• other accepted project details, including the agreed number of homes and tenures

2.3.7 The grant recipient is also obliged to market the dwellings to ensure disposal or letting as affordable housing following completion. And ensure all certifications required, for example, under building regulations and building safety legislation for the home has been obtained.

2.3.8 Contract performance during the delivery of new homes is monitored through regular review meetings with Homes England, IPQ continual qualification, a robust notification systemÌýand theÌýCompliance AuditÌýprocess (refer to 7).

2.3.9 Regular review meetings with Homes England are a contractual requirement. They consider performance against agreed delivery outputs and agree mitigation measures where there are delivery challenges. If there is significant change in the delivery timetable or agreed outputs, grant may be amended or withdrawn in accordance with the grant agreement conditions.

2.3.10 Homes England must be advised promptly when any circumstances occur which could impact on delivery of the scheme, in accordance with the delivery timetable. Or if there’s an indication that Homes England is making more grant available than required. A failure to comply with the stipulated performance criteria will entitle Homes England to enforce under its statutory or contractual remedies.

2.3.11 Providers must comply with any relevant legislation, regulations and guidance which are in force. For example, in relation to:

• building safety
• health and safety
• welfare at work
• equality and diversity
• procurement
• fraud prevention
• anti-money laundering
• other relevant employment matters

Providers are also be expected to use reasonable endeavours to ensure that all other parties engaged in the delivery of schemes do likewise.

2.3.12 The grant agreements contain default mechanisms that allow Homes England to identify and take appropriate action in event of contractual breaches. Depending on the nature of the breach, Homes England may exercise its powers to require correction of the default or defaults (where remediable) and (or) reduce, cancel, reallocate, withhold or recover grant. In some circumstances Homes England may also have recourse to terminate the agreement (in whole or in part).

3.1 DataÌýrequirements

3.1.1 On confirmation of theirÌýgrantÌýallocation, providers must submit the followingÌýschemeÌýdata in relation to the milestonesÌýon the digital system.ÌýNot all milestones will necessarily apply to all schemes (refer toÌýsection 4 for details):

• planning consent
• development contract (off the shelf only)
• acquisition of land
• start on site date
• final cost (practical completion)

3.1.2 Detailed guidance on how to input data on to IMS f´Ç°ù SOAHP 2016 to 201 and AHP 2021 to 2026Ìýis provided on the IMS help page.ÌýFor SAHP providers should use AHGMS not IMS.ÌýFor queries or questionsÌýabout using either IMS or AHGMSÌýcontact theÌýHomes EnglandÌýhelpdesk on 01908 353 604, or email: ServiceDesk@homesengland.gov.uk.

3.1.3 Scheme and Delivery Phase data (including delivery against milestones and project costs and revenue assumptions) must be updated regularly and at least each month during the development period of a delivery phase or scheme. This information must also be updated in the digital system prior to milestone achievement and is subject to approval by Homes England before payment.

3.1.4 Contractual representations and warranties set out in the grant agreement (as applicable) are deemed to be given (certified) by the grant recipient upon each submission in the digital system, including at scheme submission and upon each payment claim. Should any such representations or warranties be inaccurate or untrue at time of submission, a contractual default may be triggered giving rise to Homes England remedies including, but not limited to, recovery of the relevant tranche of grant.

3.1.5ÌýAllÌýgrant-funded affordable housing starts and completions delivered by Homes England are recorded as housing outputs for the purposes of official statistics, which are published atÌýwww.gov.uk/government/collections/housing-statistics.

3.1.6 Scheme data collection and administration requirements for schemes delivered through the Strategic Partnership delivery route is set out in the Strategic Partnerships chapter.

3.1.7 Homes England collectsÌýand publishesÌýscheme data on a regional basisÌýagainst areas defined as the standard regions of England (excluding London).ÌýIn addition, to comply withÌýSubsidyÌýControl statutory reportingÌýrequirements,Ìýwe will continue to publish grant award information – refer to View subsidies awarded by UK public authorities on °Ç¸ç³Ô¹Ï.

3.2 FutureÌýopportunitiesÌýschemesÌýfor the CME delivery route

3.2.1 Providers areÌýonly ableÌýto submitÌýfutureÌýopportunitiesÌýschemesÌýfor either Home Ownership for people with long-term disabilities (HOLD) or for Empty Homes (Lease and Repair) schemes. This is to allow providers to submitÌýapplicationsÌýfor funding prior to any schemes being identified but where they are confident of doing so in the future.ÌýFutureÌýopportunitiesÌýare where providers are not yet in position to be able to give precise scheme details required for schemes,Ìýdetails of ownership or control by theÌýapplicant.ÌýFuture opportunities schemes are known as indicativeÌýschemes under AHP 2021 to 2026.

3.2.2 Providers should use all reasonable endeavours to identify schemes for submission to Homes England. If a future opportunities scheme is not forthcoming within what Homes England considers a reasonable timescale and, or, as agreed through the grant agreement, then we reserve the right to either reduce or withdraw allocations. The same will apply if any other requirements of the funding agreement are not met.

3.3 Conversions

3.3.1 The conversion of void Social RentÌýhomesÌýto Affordable Rent, to generate additional financial capacity to support providers’ delivery of new homes, is notÌýallowed. Refer to theÌýgovernment’s Policy statement on rents for social housing and the Regulator of Social Housing’s Rent Standard.

3.4 Scheme cost information

3.4.1 Homes England collects scheme cost information, in respect of the following areas:

• acquisition cost
• works cost
• on costs

3.4.2 Only certain types of expenditure are eligible for funding in each of these cost areas. TheÌýgrant agreementÌýrefers to actual development costs, meaning the expenditure actually incurred in developing theÌýhomes in aÌýscheme, as opposed to the projected expenditure. Public sector subsidy (that is, grant plus all other public funding) must not exceed the actual development costs.

3.4.3 A provider shouldÌýrefer to the definitions andÌýreadÌýthe relevantÌýSchedule inÌýtheirÌýgrant agreementÌýfor more information on eligible expenditure for acquisition, works and on costs,Ìý²¹²Ô»åÌýcosts that are notÌýeligibleÌýdevelopment costsÌýand (or)Ìýexpenditure.

4.1 General

4.1.1 SchemeÌýand programmeÌýdeliveryÌýisÌýmonitored against a series of milestones as detailed below. Not all milestonesÌýareÌýmandatory for all schemes, and the number of milestones will dependÌýonÌýthe type of scheme being developed.ÌýPayment of grant linked to milestone achievement only applies toÌýStrategic Partners who areÌýUnregistered BodiesÌý²¹²Ô»åÌýFor ProfitÌýRegistered Providers, delivering under theÌýAHP 2021Ìýto 2026, or Unregistered BodiesÌý²¹²Ô»åÌýRegistered Providers deliveringÌýunderÌýSAHP 2026Ìýto 2036,ÌýthroughÌýthe ‘Developer delivery’ entry route.ÌýStrategic Partners shouldÌýrefer to theÌýStrategic Partnerships chapterÌýfor further guidance.ÌýAll Strategic Partners will need to record acquisition, start on site and practical completion achievement for schemesÌýthey deliverÌýand the guidance in this section isÌýrelevant for recording this information in the digital system.

4.1.2 Milestones haveÌý2Ìýfunctions:

• to monitor performanceÌýto trackÌýthe provider’s reliability in scheme progress
• to trigger liability to pay grant (provided that no other fundamental changes in provider status have occurred at the time of a claim), which mayÌýbe discharged byÌýeither payment of grant during that financial year, or raising a year-end accrual

4.1.3 The liability to pay grant is triggered by an agreed forecast date of a grant payment event.

4.1.4 Homes England uses a defined set of milestonesÌýforÌýeach grant funded product,ÌýasÌýshown in the table. All products will have at least one milestone to forecast:

• some milestones trigger payments
• some non-payment milestones are not required for all schemes

4.2 Definitions

4.2.1 Acquisition of land

Acquisition of land is a payment milestone that triggers payment of 40% of the grant. To claim grant for the acquisition of landÌýtheÌýprovider entity, or other relevant party (where applicable)Ìýmust have aÌýqualifyingÌýsecure legal interest in the land (freehold or long leasehold)Ìýand have incurred grant eligible costs equivalentÌýtoÌýor greater than the 40% grant payment.ÌýRefer to theÌýFinance chapter — Grant claims and payments f´Ç°ù more detail onÌýourÌýsecure legal interest requirements. Where providersÌýonlyÌýhave a conditional interest, such as the exchange of acquisition contracts, they will not be able to claim grant for the acquisition of land.

4.2.2 Planning permission

There areÌý2Ìýtypes ofÌýplanning permission: outline and full planningÌýpermission. Outline planning permission givesÌýan indicationÌýof permitted development but may be subject to full planning permission being obtained before building canÌýcommence. Full planning permission must beÌýsubmittedÌýwithin a specific time limit from the date outline planning permission was granted. In order for a provider to achieve the planning consent milestone full planning permission must have been received.

4.2.3 Start on site

The start on site or first tranche grant claim, which applies as a payment event only to eligible schemes - delivered by eligible providers where start on site is achieved - is triggered by the date when:Ìý

• the provider and the building contractorÌýhave enteredÌýintoÌýa building contract
• the building contractor takes possession of the site or property
• the works have commenced

Registered Providers

This will trigger payment of 35% of the grant where an acquisition tranche has been received. Where no acquisition tranche is claimed this will trigger a payment of 75% of the grant.

Unregistered Bodies (URBs)

URBsÌýcan choose between:

• receiving 100% of the funding at practical completion of the scheme
• receiving 40% at acquisition, 35% at start on site (75% if no acquisition tranche claimed) and 25% upon practical completion and offering one orÌýboth of the forms of security accepted by Homes England set out in 4.2.3.1.

Security

4.2.3.1 For URBs receiving grant from Homes England, security is defined as:

A Payment Guarantee to an agreed limit, supplied by an approved Guarantor to secure the grant during the development period and - for those organisations retaining ownership of Shared Ownership homes - a contractual obligation to apply a restriction on title in favour of Homes England.

Payment Guarantee

4.2.3.2 Where a Payment Guarantee is to be arranged this will, in most circumstances, be given by a parent company. Depending on circumstances other companies can be accepted as Guarantors, including a third party commercial entity or local authorities for smaller organisations that may not have a parent company.

4.2.3.3 A Payment Guarantee will include a Secured Amount. ThisÌýwill limit the maximum amount of grant exposure permitted at any one time and must reflect the grant allocation agreed and an organisation’s delivery pipeline projections.ÌýClaims made forÌýa scheme’sÌýacquisition and,Ìýor,Ìýstart on site payments will countÌýagainst the Secured Amount. Once paid at the practical completion milestone stage, the grant liability transfers to the recipient Registered Provider landlord and no longer counts against the Secured Amount of the Payment Guarantee.

4.2.3.4 Both the Guarantor and the proposed Secured Amount are subject to Homes England’s satisfaction as to the Guarantor’s financial and commercial good standing, the strength of the proposed financial covenant and the Guarantor not being a prohibited person. This will include satisfying Homes England’s ‘Know Your Customer’ due diligence processÌý(refer toÌý2.1).

4.2.3.5 A template Payment Guarantee isÌýfoundÌýinÌýtheÌýrelevant schedule of theÌýexampleÌýgrant agreement for anÌýUnregistered Body agreed transferÌý(refer toÌý2.3).

Homes England restriction on title

4.2.3.6 WhereÌýURBsÌýintendÌýto retain ownership ofÌýShared OwnershipÌýafter completion,Ìýthere is a contractual obligation for a restriction on title to be applied in favour of Homes England.

4.2.3.7 This requirementÌýisÌýincludedÌýinÌýrelevantÌýgrant agreements and deed ofÌýadherence,Ìýwhere anÌýunregisteredÌýgrant recipient is the intendedÌýowner at completion.

Start on site works definition

4.2.4 Start on site works are defined as:

a) Excavation for strip or trench foundations or for pad footings.

b) Digging out and preparation of ground for raft foundations.Ìý

c) Vibrofloatation, piling, boring for piles or pile driving.

d) Drainage works specific for the buildings forming part ofÌýthe scheme.

e)ÌýSuch works of demolition or service diversion as are expressly and strictly contemplated, refer to Finance chapter — Grant claims and payments.

4.2.5 An applicable secure legal interest must be held to make tranche claims, refer to Finance chapter — Grant claims and payments.

Practical completion definition

4.2.6ÌýFor grant purposes practical completion is when the last dwelling is handed over, the scheme having been completed in accordance with the terms of the relevant building contract and the terms of theÌýgrant agreement, as being fit for occupation as a residential development, in accordance with the relevant certifications and requirements. The relevant certifications and requirements will be dependent on the type of scheme (refer toÌý4.2.8Ìý²¹²Ô»åÌý4.2.8). This excludes minor defects and, or,Ìýminor omissions at the time of inspection which are capable of being made good or carried out without materially interfering with the beneficial use and enjoyment of the scheme. For instance, a scheme can be classed as completed even though external works such as landscaping remain to be completed.

There are additional requirements in respect of schemes constructed using Modern Methods of Construction (MMC): read Procurement and Scheme IssuesÌýchapterÌý— Scheme types and requirements.

4.2.7 For new build schemes the property must by covered by either a guarantee or similar warranty products provided by a reputable organisation. An architect’s certificate or any other professional consultant’s certificate is not acceptable.

4.2.8ÌýFor rehabilitation schemes a full survey must be carried out by a building surveyor with an appropriateÌý(RICS)Ìýqualification, prior to start of works, to identify works required to ensure the building’s longevity is appropriate for the funding given. For most rehabilitation schemes this will mean a lifespanÌýof at least 30 years but there may be some schemes that have a shorter life expectancyÌýrefer toÌýProcurement and Scheme Issues chapter — Scheme types and requirements. Additionally, a building surveyor (not necessarily the one that carried out the survey) needs to certify, on completion, that those works have been carried out.

4.2.9ÌýAny planning conditions or reserved matters, as far as practicably possible, must also be signed off prior to the achievement of practical completion.

4.2.10ÌýThis will trigger payment of the practical completion tranche of funding - 25% of the grant where an acquisition and,Ìýor,Ìýstart on site tranche has been paid (or 100% where all grant is paid on completion).ÌýRefer to Finance chapterÌý—ÌýGrant claims and payments for further information on claiming practical completion payments.

4.2.11 For Social HomeBuy, HOLD, Leasehold Repurchase and Right to Acquire, practical completion will be the date when the purchase is completed.

4.2.12ÌýFor the purposes ofÌýOff The Shelf products, theÌýhomesÌýmust be ready for immediate occupation. In the case of a new Off The Shelf development, a claim for grant should notÌýnormallyÌýbe made prior to the completion date (as specified on the practical completion certificate issued by the duly authorised contractual party).ÌýHowever, there are circumstances when grant can be claimed on exchange of purchase contracts. AÌýclaim can be submitted against theÌýissue of a certificate of partial completion providedÌýall ofÌýthe dwellings in the scheme, or delivery phase, have been handed over.Ìý Also see the guidance notes at Procurement and Scheme Issues chapter — Scheme types and requirements  f´Ç°ù more details on Off the Shelf schemes.ÌýAchievement of the practical completion milestone will trigger payment of 100% of the grant.

4.3 Payment flexibility

4.3.1 Providers eligible for payment flexibilityÌýare able toÌýdraw down up to 95% of their grant claim at the acquisition or start on site milestones. It shouldÌýbe noted that this is subject to funding availability. For Profit andÌýNot ForÌýProfit Registered Providers are eligible for payment flexibility. URBsÌýand ‘other’ partners (for example, new entrants or partners where there are deliverability concerns) are not entitled to payment flexibility.

4.3.2 For eligible providers, grant can only be drawn down against development expenditure where theÌýgrantÌýrecipient has incurred costs and made a payment. Costs that areÌýcommitted but not yetÌýpaidÌýare not eligible for inclusion in the claim, asÌýcosts must be incurred. The development cash flow forÌýthe affordable housing expenditure on the relevant scheme, in the Homes EnglandÌýdigital system,Ìýmust beÌýin excess of the grant tranche claimed at the time of the relevant milestone. Any further payment of grant will become due at the next relevant milestone with 5% minimum final tranche at practical completion.

4.3.3 ForÌýStrategic Partnerships, grantÌýcan only be claimed against development expenditure for an Active Site. ThisÌýisÌýwhereÌýanÌýapplicableÌýsecure legal interestÌýin aÌýsiteÌýis heldÌýupon which newÌýgrant fundedÌýhomes will be deliveredÌý(refer toÌýFinance chapter — Grant claims and payments)Ìýand theÌýStrategic Partnerships chapter.ÌýGrant cannot be paid in advance of need and providers willÌýbe requiredÌýto certify this at the point of making a claim through theÌýdigital system. The following scheme types and processing routes are exempt from CME f±ô±ð³æ¾±²ú¾±±ô¾±³Ù¾±±ð²õ:

• The statutory Right to Buy and Acquire schemes and the Social HomeBuy incentive scheme,Ìýwhere Registered Providers reclaim the discounts paid to tenants to acquire their homes, are not eligible.

• Home Ownership for people with Long-term Disabilities (HOLD) andÌýOffÌýTheÌýShelf products are excluded where in both cases there is only a single final cost completion payment.

• Schemes where providers are engaged in ‘Golden Brick’ arrangements prior to start on site are not eligible (refer toÌýthe Finance chapter — Grant claims and payments. Schemes that involve Homes England land are also excluded.

• Traveller Pitch funding schemes are excluded on the basis that thereÌýisÌýoften deliverability concerns associated with these schemes. These schemes are often led byÌýURBsÌýand do not always deliver affordable housing. For providers delivering only ‘standard’ traveller pitches (such as with an amenity building, but not built sleeping accommodation) the requirement to be registered with the Regulator of Social HousingÌý(RSH)Ìýdoes not apply as this form of provision is not formally classed as accommodation (refer to the Specialist Homes chapter, ‘Traveller pitches’).

• SpecialistÌýcapital schemesÌý(refer to the Specialist Homes chapter)Ìýthat are funded separately byÌýthe Ministry of Housing, Communities and Local Government (MHCLG)Ìýcould potentially qualify for CME flexibilities. However, this would need to beÌýviaÌýtheir separate approval.

4.3.4 Development expenditure must relate to the delivery of grant funded affordable housing only. Where other tenures are provided on the same site, costs should be apportioned appropriately and signed off by an independent consultant or the Development Director or Finance Director. Development Expenditure should only be claimed against affordable homes that are eligible for grant funding, For example, grant cannot be used for affordable homes secured by developer contributions through Section 106 of the Town and Country Planning Act 1990 or equivalent planning condition.

5.1 General

5.1.1 Changes or variations to a provider’s agreed allocations will be handled via the Homes England digital system and, if material, will require approval. Where the provider becomes aware of circumstances, which give rise to the need for changes to their allocations, they must be submitted specifying the reasons for the proposed change.

5.1.2 Homes England will decide whether to accept any changes on the basis of whether they will continue to meet the reason for which the allocations were originally approved.

5.13 Examples of changes include:

• aÌýreduction or increase or other change to the number of dwellings to be delivered
• aÌýreduction or otherÌýadjustment to the allocated grant
• changes to forecast dates
• substitutions for schemes that are no longer able to be delivered within the programme requirements, including by the long stop date

5.1.4 Each change submitted will be considered on its own merits. However, Homes England may opt not to agree to proposals and, in some circumstances, may choose to withdraw funding regardless of how far a particular scheme has progressed. Therefore, it is in providers’ interests and a contractual requirement to keep us informed of any proposed programme changes as soon as possible.

5.1.5 Where changes areÌýacceptable and approved by us, we will pay grant on affected schemes upon receipt of a valid claim, provided that no other fundamental changes in provider status hasÌýoccurred at the time of a claim.ÌýWhere there has been a change in provider circumstances, this may trigger Homes England’s right to review or remove IPQÌýstatus.

5.1.6 All material changes must be identified and discussed withÌýHomes EnglandÌýbefore providersÌýclaim grant on affected schemes. Where changes are not disclosed to us or have not been approved, providers will be at risk of falsely certifying on theÌýdigital systemÌýthat the dataÌýisÌýcorrect and meet the requirements in the contract.

5.1.7 Homes England is entitled to address significant delivery failures (that is,Ìýacross more than 1 scheme) via the issueÌýof a notice called an Allocation Change Notice. This allowsÌýusÌýto impose a reduction in grant, reduction in number of homes being delivered or any other change thatÌýweÌýconsiderÌýreasonably necessaryÌýto address the relevant delivery failure.

5.1.8 Where there are differences, not previously agreed between data input following legal completion, and the data input at scheme approval, providers will be required to give reasons for the variations in order for us to approve the grant payment.

5.1.9 Strategic PartnersÌýmust refer to theÌýStrategic Partnerships chapterÌýfor guidance on howÌýchanges to delivery are managed.

6.1 General

6.1.1 AllÌýlandlordsÌýofÌýgrant funded homesÌýthat are offered for low-cost rental accommodationÌý(whether Affordable Rent or Social Rent) must,Ìýby lawÌý(Ìý(7) and (8) of the HRA 2008)ÌýbeÌýregistered with the Regulator of Social Housing.

6.1.2 Homes England requires thatÌýhomesÌýdeveloped with the benefit of grant are managed and maintained in accordance withÌýtheÌýRSHÌýRegulatory framework.

6.1.3 This applies whether the properties are directly managed by the provider who developed them with grant, or by other organisations with whom the provider has contracted for management services.Ìý

6.1.4ÌýURBsÌýnot intending to register must pass on ownership and management of completed homes to a registered provider. URBsÌýcan, however, own and manageÌýShared Ownership homesÌýand Traveller pitches (refer to the Specialist Homes chapter) without registration.Ìý

6.1.5ÌýAll registered providersÌýare also required toÌýbe members of the . URBsÌýmay sign up to the Housing Ombudsman Service on a voluntary basis.Ìý

6.1.6 Regardless of whether the provision of management services has been outsourced, ultimate responsibility for effective management of tenants and,Ìýor,Ìýleaseholders’ interests in the homes and accountability for the public funds invested will remain with the grant recipient provider.

6.2 Requirements

6.2.1ÌýWhere Registered Providers are commissioning a (non-statutory) organisation to provideÌýmanagementÌýservices,Ìýthey must do so in writing. The services to be provided must be clearly defined in the contract, as must the cost to the Registered Provider of receiving the services.Ìý

6.2.2ÌýThe contract for the provision ofÌýthe services must be finalised, and signed in time for the service provider to mobilise their resources, to be able to deliver the services at an appropriate level of quality at the handover date.Ìý

6.2.3ÌýHomes England does not provide a model management agreement.

6.3 Supported Housing issues

6.3.1 Registered Providers may decide to enter into a support agreement with a statutory body to ensure the non-housing needs of tenants are met.Ìý

6.3.2 Such support arrangements must be based on a written agreement that sets out the responsibilities of each party.

7.1 General

7.1.1 The reporting and audit requirements apply to schemes delivered through the affordable homes programmes, and the Compliance Audit provisions set out apply to all schemes, regardless of funding period.

7.2 Audit requirements

7.2.1 Compliance Audit is the process by which we will check the provider in terms of procedural compliance. We expect that an annual audit will be carried out on a sample of eligible schemes by an independent auditor, appointed by each provider being audited. Independent auditors will review schemes for compliance against a checklist of relevant questions and report any findings to us. Providers must therefore maintain a comprehensive scheme file that contains all relevant documents for each scheme.

7.2.2 The purpose of the audit is to verify that all requirements and the funding conditions have been met, and that the provider has properly exercised its responsibilities as set out elsewhere in thisÌýguide. It does not reduce the responsibilities of the provider to ensure that the costs in any claim for grant are appropriateÌýand haveÌýbeen properly incurred.

7.2.3 If a local authority has concerns about a particular scheme, they should contact their lead contact at Homes England to request that it be included in the next sample of schemes for audit.

7.2.4 The audit programme is managed through a dedicated web-based Compliance Audit system, which serves as the primary platform for tracking delivery and communicating alerts to all users. It is vital that providers maintain up-to-date contact details within this system to ensure they receive automated notifications.

7.3 Audit scheme file

7.3.1 Providers must maintain a comprehensive scheme file (or equivalent) that contains all relevant documents. Phased schemes should be identified separately on documentation. The following list is indicative of the types of documents which will be examined. It is not intended to be a comprehensive listing.

a) Shared Ownership, Affordable Rent and Social Rent schemes

(i) Valuation report for the site and, or, property acquired. The report should:

• take account of all the relevant factors affecting the site and, or, property and its development
• carry the valuer’s signature in a format deemed acceptable by RICS or RICS guidance
• clearly identify the site and, or, property which is the subject of the valuation on an accompanying plan endorsed by the valuer
• be valid at the date of exchange of purchase contracts

(ii) Where the vendor is a local authority — a letter from the local authority endorsing valuation.

(iii) Confirmation from provider’s solicitors of the dates of exchange of purchase contracts and of completion, the purchase price paid and a comprehensive report on title (except works only schemes).

(iv) Documentary evidence to indicate that the procurement arrangements used agree with arrangements and procedures approved by the provider’s governing body.

(v) Where providers are receiving any other subsidy they must maintain a funding profile on file showing that grant is not being received in respect of costs subsidised by any other body.

(vi) Where capital contributions to the scheme from other sources, including other public sources, are involved, confirmation of the amounts on offer and the sources of funding should be retained, including any correspondence with the third party or parties.

(vii) Surveys, drawings, specifications, specialist and other consultants’ reports.

(viii)Terms of appointment of consultants.

(ix) Evidence of the basis of selection of consultants and building contractor.

(x) Copies of the building contract document and final account documentation.

(xi) Planning permissions, building regulations approval and any other statutory consents.

(xii) Details of the insurance of the property during construction and following completion.

(xiii) Sale valuations (sale schemes only).

(xiv) Details of prospective rents documented on the provider’s development files.

(xv) Certificate of Practical Completion (including where partial possession is appropriate provided that all the units have been handed over leaving only external works to be completed).

(xvi) For major site development works and VAT — final certificate/account in respect of the pre works and VAT certificates equating to the actual works costs above (note that these figures must together equate to the actual works cost element included in the final costs statement mentioned above).

(xvii) Consultant’s estimate of final works costs and, where appropriate (Design and Build and Package Deals, and so on) a separate estimate of the non-works elements, for example, on costs.

(xviii) Latest interim certificate showing actual costs to date.

(xix)Rural Repurchase — record of surpluses made on staircasing transactions.

(xx) For charitable providers that have claimed grant to cover VAT — a letter from His Majesty’s Revenue and Customs or the Registered Provider’s professional adviser confirming that the supply cannot be zero-rated.

In addition, for:

b) Schemes for rent

Details of rents, including housing benefit eligible service charges.

c) Schemes for Shared Ownership

(i) A property schedule showing addresses, floor areas, and valuations for the completed properties, together with actual rents and housing benefit eligible service charges.

(ii) Sales valuations.

(iii) Copies of leases.

(iv) Key Information Documents and evidence that they were provided to buyers and buyers‘ solicitors at the appropriate stages.

(v) Evidence of affordability and eligibility assessments.

d) Affordable and Social Rent schemes where the vendor is a public body offering Other Public Subsidy in the form of discounted land

To confirm the amount of Other Public Subsidy that the provider may have received, both of the following must be kept on file by the provider for Compliance Audit purposes:

• a copy of the Market Value valuation provided by a qualified independent valuer, either obtained by the Local Authority or commissioned by the provider

• a letter from the public body stating that it endorses the valuation

7.4 Scheme sampling

7.4.1 The population of providers eligible for selection for compliance audit (eligible providers) is made up of providers with eligible schemes across all funding programmes. All schemes are eligible except:

• terminated schemes
• schemes with zero grant and no RCGF or Disposal Proceeds Fund (DPF). As part of deregulatory measures introduced in the Housing and Planning Act 2016, the RSH removed their guidance requiring providers to hold receipts in a DPF and this change took effect from 6 April 2020
• Help to Buy

7.4.2 Eligible schemes include both:

• look-back schemes - any scheme which completed in the previous financial year
• in-year schemes - any scheme where start on site has been claimed in a previous financial year, but where practical completion has not yet been claimed and which can be forecasting in the current or any future financial year

Sampling of schemes delivered through Strategic Partnerships does not include in-year schemes.

7.4.3 Each financial year, a selection of eligible providers will be chosen for audit, and a sample of their eligible schemes will be selected for review. Providers selected for audit will be notified by email. Providers who are unsure whether they have been selected for audit in a given year should contact their lead contact.

7.5 Independent Auditor Appointment

7.5.1 Providers may commission any suitably experienced and qualified chartered member of a professional body within the fields of accountancy, surveyors, property, building and construction, risk, audit or compliance, who have achieved an accredited qualification with the professional body, at a Level 6 or higher, when considered against the context of the UK’s National Qualifications Frameworks.

7.5.2 The independent auditor may be the provider’s external auditors or external accountants undertaking their internal audit function.

7.5.3ÌýHowever, holders of the qualifications, outlined at 7.3.8, directly employed by the provider or any of its fellow consortium members are excluded as they are not considered to be appropriately independent. Arrangements where qualified development consultants are employed by a qualified professional as outlined at 7.3.8 to act in their name are acceptable to us, on condition that the arrangementÌýmaintainsÌýthe duty of care required by us and the commissioning agreement is between the provider and the qualified professional.

7.5.4 Reciprocal arrangements between organisations with dedicated internal audit functions are permitted, as long as they comply with the requirements in paragraphs 7.5.1 to 7.5.2.

7.5.5 To ensure the highest standards of quality and compliance, auditors appointed by providers must adhere to the principles of auditing defined by ISO 19011:2018, with a particular attention to principles of integrity, fair presentation, due professional care, independence and evidence-based approach.

7.5.6 For more information on ISO 19011:2018 and its requirements, or contact our audit department for future guidelines.

7.6 Standardised Terms of Engagement

7.6.1 Homes England will undertake to become a party to the commission via the standardised terms of engagement route, utilising the agreed procedures as set out in Appendix F of the Institute of Chartered Accountants of England and Wales (ICAEW) .

Further guidance is set out here.

7.6.2 Homes England will undertake to become a party to the commission, via the standardised terms of engagement route, utilising the agreed procedures as set out in the .

7.6.3.14 We reserve the right to request copies of the signed ‘self-assessment agreement’, as and when necessary, throughout theÌýlife ofÌýthe agreement.

7.6.4 Find our more about the compliance audit process.

8.1 Legacy programme requirements

8.1.1 Programme management guidance for previous affordable homes programmes can be found in the UK Government Web Archive via:

9.1 Overview

9.1.1 In theÌýcontent below you will find information thatÌýis applicableÌýto both SAHP funding routes: CME and Strategic Partnerships concerning:

• Investment Partner qualification
• design and quality
• equality
• diversity and inclusion
• delivery pipeline

You will then find an explanation of the CMEÌýapplication and assessment process.ÌýRefer to theÌýStrategic Partnership applicationÌýguidance andÌýStrategic Partnerships chapterÌýfor more information about this funding route.

9.2 Investment Partner Qualification (IPQ)

9.2.1 Investment Partner status is a mandatory qualification, that must be achieved by prospective partners, before we can make any payment under Homes England’s SAHP 2026 to 2036.ÌýFor moreÌýinformationÌýrefer toÌý2.1.

9.3 Design and quality

9.3.1 All homes delivered under SAHP 2026 to 2036, either through the CME or Strategic Partnership, must meet the relevant national and local legislative, regulatory and planning policy requirements, and practice. This includes compliance with Building Regulations Approved Documents Parts F, L and M. 

9.3.2 Partners should also aim to meet all Nationally Described Space Standards (NDSS).

9.3.3 AllÌýapplicationsÌýwill be benchmarked against the NDSS.  WhereÌýpartners are proposing to deliver homes below the NDSS, we will request further information to understand the reason for this variation.

9.3.4 WeÌýstrongly expectÌýpartners to consider how they can use  SAHP funding to deliver social and affordable homes above these minimum requirements. We are keen to understand how SAHP  funding can support partners’ own plans, as well as align with our own strategic ambitions, including how:

• planned development schemes would have no ‘reds’ under the Building for a Healthy Life (BHL) Standard assessment 
• planned development schemes align with design requirements and good practice set out in Homes England’s Healthy Homes — a foundation for healthier and resilient communities
• BHL and Healthy Homes have been adopted into partners’ own development principles

9.3.5 Homes England consider how design and quality elements contribute to the value for money of bids in our assessment.

9.4 Equality, diversity and inclusion

9.4.1 Homes England recognises that equality, diversity and inclusion (ED&I) are central to delivering high-quality homes and thriving communities. We expect all partners applying for SAHP funding to share these values and to demonstrate their commitment to inclusive practice in the design and delivery of their projects.

9.4.2 Partners mustÌýcomply withÌýthe Equality Act 2010 and other relevant legislation.

9.4.3 Partners will be required to confirm they have, and maintain, an Equal Opportunities Policy that prevents discrimination and promotes equality of opportunity. Policies should be transparent and accessible (for example, published on partner websites and available in accessible formats) and should clearly set out how discrimination is eliminated and equality advanced. Organisations must also have due regard to the Public Sector Equality Duty, under Part 11 of the Act, and be able to show how these responsibilities are embedded within their leadership, workforce and operations.

9.4.4 We expect partners to embed ED&I principles across every stage of their schemes. This includes treating communities, contractors and suppliers with dignity and respect, and ensuring procurement and delivery processes are fair,ÌýtransparentÌýand inclusive. Partners should be able toÌýdemonstrateÌýhow their approach to design, engagement and delivery will eliminate discrimination, advance equality, and respond to the diverse needs of the people and places their scheme serves.

9.5 Delivery pipeline

9.5.1ÌýProviders willÌýbe requiredÌýtoÌýsubmitÌýtheir full development pipeline to Homes England on a quarterly basis (as a minimum). This will include (but is not limited to):Ìý

• scheme name
• location
• proposed tenure
• proposed grant requirement
• relevant milestone dates

9.5.2 Homes England will share this information with theÌýrelevantÌýEstablished Mayoral Strategic AuthoritiesÌý(EMSA) and localÌýauthority, on a regular basis, to support the delivery of affordable housing in their respective area.

9.6 Continuous Market Engagement (CME)Ìýapplication andÌýassessment process

9.6.1 Overview — CME

9.6.1.1 This section provides more detail on theÌýapplicationÌýand assessment process for the CME route to access funding from the SAHP 2026 to 2036.ÌýIt should be read alongside the:

• SAHP funding guidance
• CME application guidanceÌý(also known as’ bidding guidance’) which includes information on the newÌýPortfolio route

9.6.1.2 The SAHP funding guidanceÌýhas useful information about how SAHP operates. For example:

• whoÌýcan apply
• the priorities for funding
• the ways to apply via the CME and Strategic Partnership routes
• the types of housing that SAHP funding can be used to deliver and not deliver
• what happens after applying for SAHP funding

The CME application guidance explains how to submit a funding application (bid).

9.6.1.3 Applications for affordable housing funding through CME areÌýalsoÌýknown as bids.ÌýApplicationsÌýare assessed on an individual basis against the criteria and considerations set outÌýhere.

9.6.2 Applying for funding — CME

9.6.2.1ÌýTheÌýCME funding route allowsÌýpartnersÌýtoÌýapplyÌýfor funding forÌýoneÌýor more development schemes, at any time during the programme, subject to funding being available.

9.6.2.2ÌýExperience gained from the AHPÌý2021 to 2026ÌýdemonstratesÌýthis is the most effective way of supporting small and medium sized partners – as wellÌýasÌýnew entrants and local authorities – who have development ambition but are unable to deliver and invest at scale.ÌýÌýIt is also often the best way of delivering more complex projects.

9.6.2.3ÌýUnder the CME route, all homes must start on site by 31 March 2036 and complete by 31 March 2039. Any grant funding payments after 31 March 2036 are subject to budget availability. We will prioritise early delivery f´Ç°ù starts and completions f´Ç°ù all CME allocations and will have a particularÌýfocus onÌýcompletions by 31 March 2029. Within the first 2 years of the SAHP  we do not anticipate allocating funding where homes are expected to start on site after 1 April 2031, unless they are linked to national strategic priorities and sites.

9.6.2.4 AllÌýapplicationsÌýfor grant funding will be assessed based on value for money, strategic fit and deliverability.

9.6.2.5 There are 2 different options to apply for funding via the CME route:

General

This will enable partners toÌýapplyÌýfor grant funding to deliver individual sites on aÌýscheme-by-schemeÌýbasis.ÌýPriority will be given toÌýapplicationsÌýthatÌýrepresentÌýgood value for money, are deliverable, and align with national, regional and local affordable housing priorities.

Portfolio

This isÌýaÌýnewÌýroute andÌýdid not feature in the AHP 2021 to 2026. This will focus on providing allocations, across a portfolio of opportunities, to support partners that can demonstrate delivery confidence and ambition for schemes that may be at different stages of delivery. This approach is designed to de-risk and accelerate delivery, as well as deliver strategic and place-based priorities.ÌýFor furtherÌýinformationÌýonÌýtheÌýPortfolio biddingÌýseeÌýrefer toÌýtheÌýCME application guidance.

9.6.2.6 Applications for funding should be made for schemes which have been fully identified and details of the planned development confirmed (site, cost, tenure mix, delivery timeline, etc). It is accepted that for a small proportion of schemes delivered via the Portfolio route, providers may not have secured planning permission or procured a contractor. However, the expectation is that their application assumptions will be realistic and for a fully identified site. Future opportunities schemes (refer to 3.2), where details are yet to be fully worked up, are only currently permitted for Home Ownership for people with Long-term Disabilities (HOLD) and Empty Homes schemes.

9.6.2.7 Funding cannot be used to acquire socialÌýand affordable homes secured by developer contributions through Section 106 of the Town and Country Planning Act 1990 or equivalent planning condition.ÌýFunding is also not available to deliver Specialised Supported Housing or Temporary Social Housing, as defined by the government’sÌýpolicy statement on rents for social housing.

9.6.2.8 We expect partners who receive SAHP grant funding to also support the delivery of new social and affordable homes through Section 106, by acquiring those homes where there is an opportunity to do so. WeÌýmayÌýcollect data and information on the number and type of homes partners are delivering through SectionÌý106 andÌýuseÌýthisÌýto inform any changes to the delivery and design of the programme.

9.6.2.9 You can submit applications for more than one scheme in a single funding application. However, assessment and decisions are made on each scheme individually. This means that applicants who submit an application which includes more than 1 scheme may find that funding is approved for some, but not all, schemes submitted. Where developments are mixed tenure, scheme plans for each tenure are input into the digital system separately and assessed individually. Although the deliverability of the entire development is considered, each scheme must be able to stand alone with no cross-subsidy or interdependence assumed, including where schemes are on the same site.

9.6.2.10 Applicants are required to provide details ofÌýexpected costs, income, any profit and any other sources of public sector funding for a proposed scheme.Ìý

TheÌýHomes EnglandÌýassessment processÌýidentifiesÌýthe viability gapÌýand isÌýbased on an analysis of total costs versus applicant’s maximised financial contributions (including loan debt) with grant being the minimum amount allocated to achieveÌýa viable, deliverable and affordableÌýscheme. TheÌýintention is to incentiviseÌýthe applicantÌýto control their costs so that only the minimum necessary is grant funded. TheÌýgrantÌýpaid is therefore theÌýbalancing sum, after all other contributions have been stretched as far as they can, by the applicant in accordance with their approved business plans.ÌýWhere more information or clarification is needed to process and,Ìýor,Ìýassess an applicationÌýfor funding we will contact you.

9.6.2.11 There are 3 stages to the application process:

Submission

You canÌýsubmit yourÌýapplicationÌýthrough the digital systemÌýwhenever you’re ready with a deliverable scheme.ÌýUnder CME there are no separate biddingÌýrounds,Ìýand you canÌýapplyÌýas soon as the fund opens, for as long as funding is available.

Assessment

Once you’ve submittedÌýyourÌýapplication, we will carry out the initial assessment against our key criteria. If any of the information is missing or unclear, we will get in touch to clarify. It usually takes aÌýminimum of 30 working days (around 6 weeks) to complete the assessment and clarifications. Depending on the type and sizeÌýof theÌýapplicationÌýand the quality of informationÌýsubmitted,ÌýadditionalÌýreview and moderation may be needed. In these cases, it may take longer to complete this process, and decisions are only made on complete submissions.

Assessment decisions

Finally, we will review yourÌýapplicationÌýagainst others that we haveÌýreceived to ensure it is competitive and that our assessment decisions are consistent. Awards of grant allocations areÌýdeterminedÌýon a regular basis, and we aimÌýtoÌýreach a decision in a reasonable timescale following assessment.ÌýWhile Homes EnglandÌýisÌýresponsible forÌýassessing and making the final decision on which bids to support,Ìýwe will work closely with EMSAsÌýwhere delivery is planned in their area. For CME bids that are complex or relate to the EMSA’s priority growth areas, they will be asked to input into the decision-making process.ÌýRefer toÌý9.6.3Ìýfor more information about the assessment process.

9.6.2.12 If you are not already a Homes England Investment Partner, we recommend making this application at the same time as submitting your bid. More information is available in the Investment Partner Qualification guidance.

9.6.3 Assessment

9.6.3.1 WeÌýassess and approve CMEÌýapplications for fundingÌýthrough a process of data review, scoring, moderation, and approvals at regional and national levels. Each areÌýassessed under three categories:Ìývalue for money, strategic fit and deliverability.

Value for money

9.6.3.2 Partners will be expected to take all reasonable measures to minimise the level of grant funding requested (cost minimisation). The primary metric for assessment is grant per home, benchmarked against national area and scheme type averages, to ensure bids are competitive in terms of cost and delivery output. Schemes which do not meet an acceptable range will be subject to further assessment to ensure value for money.

9.6.3.3ÌýApplicantsÌýwill be able to combine grant funding with Right to Buy receipts when submitting bids for the SAHP.

9.6.3.4ÌýHomes England scores all scheme proposals against regional and scheme type averages. These averages are used as benchmarks to compare the levels of grant requested (for example,Ìýagainst the average grant requested locally and nationally for similar schemes) and what the scheme will deliver (for example, grant requested relative to the size of the homes being built) to ensure bids are competitive on both costs and outputs. The comparisons also allow us to identify what are known as outliers - schemes which sit outside of the average ranges and require further testing against cost minimisation.

9.6.3.5ÌýOutliers will only be funded if we understand and accept the reasons for exceptional grant or costs, the scheme type is a priority and, or,Ìýmeets a strategic objective.

9.6.3.6ÌýWe understand that costs can vary significantly for a wide range of reasons. To assess outliers, we will use genuine comparators (such as other rural or older persons’ specific schemes, or MMC developments) andÌýmay ask you to provide further information to understand and support higher levels of grant request.

9.6.3.7ÌýSchemes withÌýa very lowÌýamount of grant per home will not automatically be approved. Although cost reduction is an essential part of ensuringÌýgood valueÌýfor money, all schemes must offer strong certainty of delivery and quality. As such, our assessment will consider the difficulty of replacing low grant schemes withoutÌýadditionalÌýfunding should delivery slip or the scheme no longer go ahead.

Strategic fit

9.6.3.8ÌýPartnersÌýwill be expected toÌýdemonstrateÌýbids are aligned with the strategic priorities for the programme - both national and, where relevant, regional (for example, EMSAs). Those demonstrating the closest alignment will be prioritised and this willÌýbe reflected in any assessment of costs and grant.

Deliverability

9.6.3.9 To ensure the scheme can be delivered within the programme timeframe, deliverability will take account of theÌýstatusÌýof planning, land ownership and progress on contracting at the point ofÌýapplication.  We will also consider past performance where relevant and howÌýapplicationsÌýsupport local authorities in meeting local housing needs.

9.7 Homes England contact

9.7.1 If you have any queries or would like to discuss a potentialÌýapplicationÌýbid,Ìýemail Homes England at SAHP@homesengland.gov.uk.