GLOSSARY
 

Accelerating Change:

The second report of the Construction Taskforce, see Egan.

Accounting Period 

The period to which the RSL’s income and expenditure account relates. 

Acquisition : The completion date of contracts to purchase land or property

Affordable Housing:

Affordable housing includes social rented and intermediate housing, provided to specified eligible households whose needs are not met by the market. Affordable housing should:

1. Meet the needs of eligible households including availability at a cost low enough for them to afford, determined with regard to local incomes and local house prices.
2. Include provision for the home to remain at an affordable price for future eligible households or, if these restrictions are lifted, for the subsidy to be recycled for alternative affordable housing provision

Planning Policy Statement 3 (Dec 2006) 

(The) Agency

The Homes and Communities Agency or its duly appointed agent.

Arms Length Management Organisation (ALMO)

 A body set up by some local authorities to take over the day-to-day running of their properties and bring social housing up to a decent standard, separating the landlord role from their wider strategic function in order to improve the quality and management of their housing.

Audit Commission 

A non-departmental public body sponsored by CLG  with the Department for Health and the National Assembly for Wales. The Commission appoints auditors to audit accounts, produces value for money reports on public service providers, inspects local services, collects and publishes performance information on councils, police and fire services and monitors and compares service performance.

Business Expansion Scheme (BES) 

A tax efficient vehicle used for funding housing and other types of business. No longer available

Brent Protocol 

Development agreement between Black and Minority Ethnic and large RSLs for all BME schemes in the London Borough of Brent, setting our issues that need to be agreed at the outset of development.

Brownfield  

A piece of land which has been previously developed for a use other than agriculture or forestry and which has one or more permanent structures on it. These sites can be in urban and rural areas and examples include industrial sites, defence buildings and land used for mineral extraction and waste disposal.  

Clawback (NBHB)

To aid retention of keyworkers this enables the RSL to require the Key Worker to staircase to 100%, sale of their share to a nominated household or to reclaim the property, if the leaseholders status as a Key Worker ends.  The purpose is to Recover Grant so that it can be reused on other Key Worker schemes

Communities and Local Government (CLG)  

The central government department responsible for housing policy and Agency’s sponsor.  Previously known as Office of Deputy Prime Minister.

Commission for Architecture and the Built Environment (CABE)  

Organisation which aims to improve peoples’ lives through better buildings, spaces and places. CABE promotes high standards in the design of buildings and spaces between them, helping and advising those who create, manage and use the built environment.

  
Committed Programme 

Schemes approved in previous years.

Communities Plan 

Working name for the action plan to take forward Government policies to tackle deprivation and shortage of affordable housing and deliver sustainable communities for all. The comprehensive programme of action was set out in “Sustainable Communities: Building for the Future” in February 2003, and updated through Sustainable Communities: Homes for All in January 2005.

Compliance Audit 

The procedure by which the RSL’s auditors and / or Agency’s Innovation & Development Managers check the quality and procedural compliance of schemes developed by RSLs. Every RSL with a grant-funded programme is audited at least every two years.

Compulsory Purchase Order (CPO) 

An order under either Housing or Planning Acts to allow property to be compulsorily purchased by a public body.

Cost Floor 

In the context of the Right To Buy, those costs in respect of the Dwelling, which are treated as incurred after 31 March 1974 and relevant in accordance with the Secretary of State's Determinations made under Section 131 of the Housing Act 1985 as amended by Section 122 of the Housing Act 1988.  In cases where the Landlord's notice under Section 125 of the 1985 Act is issued after 9 March 1989, the Secretary of State's Determination made in March 1989 shall apply. 

Disabled Facilities Grant (DFG) 

Government funding to local housing authorities to provide and improve adaptation services to disabled people enabling them to continue to stay in their own homes.

Deemed Loan Debt (DLD)

 For a rental project, this is the shortfall between the Total Capital Costs  of the original project and the total public capital subsidy (Capital Grant plus any Other Public Subsidy) paid on the project. If the project includes more than one property, the Deemed Loan Debt must be apportioned between them using the same formula as that used to apportion the Capital Grant. This formula must not be altered by adding, for example, any penalty charged by a lender for premature redemption of a loan, or substituting the actual loan debt should it be greater.

Disposal Proceeds Fund (DPF)

An internal fund within the accounts of an RSL allowing the re-use of the Net proceeds of sales under Voluntary Purchase Grant (VPG), Right To Acquire (RTA) and Social HomeBuy (SHB) procedures.

Dwelling 

This is defined in section 63 of the Housing Act 1996 as a building, or part of a building occupied or intended to be occupied as a separate dwelling, together with any yard, garden, outhouses and appurtenances belonging to it or usually enjoyed with it.

EcoHomes 

Building Research Establishment (BRE) rating for environmental sustainability.

English Partnerships (EP) 

Former government regeneration agency, supporting high quality sustainable growth. Now part of HCA. Focused on: sustainable regeneration through initiatives such as Urban Regeneration Companies and National Coalfields programme; housing (working with the Housing Corporation to relieve market pressure), increase affordability and tackle housing abandonment; strategic brownfield redevelopment (developing and maintaining a national brownfield strategy as well as acquiring and redeveloping brownfield land); best practice (creating forums for sharing expertise in regeneration and development).

Estate Renewal Challenge Fund (ERCF) 

Form of capital subsidy paid to an RSL which has taken on stock transferred from a local authority under the ERCF programme.

European Regional Development Fund (ERDF)

A form of public subsidy.

Existing Satisfactory Purchase (ESP) 

A form of acquisition for rent using SHG where little or no repair, replacement or improvement work (i.e. approximately £1500 or less) is required to provide suitable housing.  

Final Cost (FC) 

The Final Cost stage claim of SHG, triggered by the issue of a Certificate of Practical Completion, or Certificate of Partial Possession (or equivalent), when all the properties are handed over by the contractor to the RSL.  A Certificate of Partial Possession (or equivalent) may be issued when all units are handed over to the RSL but some work, like landscaping, remains to be completed.

Gap Funding 

To fill the ‘gap’ between development cost and end-value on brownfield housing developments, or to reduce the sale price in areas where low earner are excluded form home ownership. EP are working with the DCLG and Regional Development Agencies to create a new gap-funding regime.

Grant Index 

A tool used for assessing the quality-weighted value for money provided by bids to the NAHP 06-08.

Housing Association as Managing Agents (HAMA) 

Accommodation managed by an RSL as an agent for the owner.

HAMA Plus 

Accommodation managed by an RSL as an agent for the owner and improved with capital grant under the HAMA Plus initiative

Housing Association Grant (HAG) 

Housing Association Grant, paid between 1974 and 1996.  See SHG.

Housing Benefit (HB) 

A government benefit which pays all or part of the rent and service charge for a property

HomeBuy 

HomeBuy is the generic name for a suite of low cost home ownership products (New Build HomeBuy, Social HomeBuy and Open Market HomeBuy) designed to help social tenants and others in priority need purchase a suitable home. These products were launched within the NAHP for 2006-08.

There have been previous versions of Homebuy which had been used by RSL's for several years up to April 2006. See previous glossaries for the definition.

The forms of Homebuy that were in operation before April 2006 are referred to with a capital H and lowercase b (Homebuy), whilst versions of HomeBuy in operation since April 2006 use a capital H and a capital B – as in HomeBuy. A small but important change!

HomeBuy Agents 

RSLs appointed to administer and market low cost home ownership products in a defined sub-region, and to administer all Open Market HomeBuy in that region. Previously referred to as Zone Agents.

Housing Inspectorate  

The HI is part of the Audit Commission. It currently inspects local authorities housing services and included RSLs from April 2003.

Housing Market Renewal Fund 

Government funding to tackle low demand in areas where the housing market is thought to be failing.

Housing Market Renewal Pathfinder (HMRP) 

See Pathfinder.

 
Hostel 

This is defined in section 63 of the Housing Act 1996 as a building in which is provided for persons generally or for a class or classes or persons:
• residential accommodation otherwise than in separate and self-contained premises; and
• either board or facilities for the preparation of food adequate for the needs of those persons, or both.

Housing for sale 

A general term covering mixed funded shared ownership and rehabilitation for outright sale schemes.

Housing Quality Indicator (HQI) 

A comprehensive set of measures used to evaluate existing and planned housing developments on the basis of quality as opposed to simply cost. The indicators cover the location, the design and the performance of the housing project – these 3 categories produce 10 ‘Quality Indicators’ that make up the HQI system. The Agency requires that HQIs are used for all SHG funded new developments – developing organisations submit HQI data to a national database managed, on the Agency’s behalf, by the Building Research Establishment.

Impact Assessment 

Assessment carried out by the Agency to help assess the effectiveness of investment decisions and to see if scheme objectives envisaged at bid stage are later achieved.

Investment Management System (IMS) 

The Agency’s computer system for the processing of schemes and payments of SHG. All RSL Milestone notifications and payment claims for SHG must be submitted onto the Programme Management module of IMS (PIMS) via the Internet.

Intermediate Rent 

A sub-market rental scheme for keyworkers  and others where the rent is to be no more than 80% of market rents. .

Independent Qualified Valuer 

The District or Borough Valuer or a professional associate or fellow of the Royal Institute of Chartered Surveyors or the Incorporated Society of Valuers and Auctioneers or any successor body or bodies thereof, who is not employed by, or acting on behalf of, or a member of the family of, the person or organisation selling or transferring or purchasing the property or land being valued.  ‘Member of the family’ is defined in section 62 of the Housing Act 1996 as spouse of that person, or living together as husband and wife, or that person’s parent, grandparent, child, grandchild, brother, sister, uncle, aunt, nephew, or niece.  A relationship by marriage is the same as by blood, half-blood as whole-blood, and stepchild as child.

Incorporated Society of Valuers and Auctioneers (ISVA)

The professional institution for valuers and auctioneers.
Key Worker Particular groups of public sector workers whose services are essential for the community, such as the police, teachers or nurses as defined by the CLG from time to time.

Keyworker Living Programme  

A programme operating in the South East, East and London regions to provide rental, and owned homes to defined key workers.

Low Cost Home Ownership (LCHO) 

A general term used to describe the various types of funding home ownership with subsidy, such as the different forms of HomeBuy and RTA.

Lead Investor 

A nominated officer within the Agency’s Regional Investment Team who will provide a single point of contact for RSLs under the Partnering Programme route.

Lead RSL 

Where a number of RSLs have formed a partnership to develop schemes under the Partnering Programme route, one RSL is required to undertake the role of Lead RSL. The Lead RSL will be deemed responsible to the Agency for a number of additional responsibilities and obligations on behalf of the other RSLs within that partnership. These responsibilities are referred to in the Partnering Programme Agreement.

Letting 

This includes a sub-lease, sub-tenancy, or licence and an agreement for a lease, tenancy, licence, sub-lease, or sub-tenancy.

Local Authority 

This is defined in section 106 of the Housing Associations Act 1985 as a county, district, or London borough council, the Common Council of the City of London or the Council of the Isles of Scilly and in S84(5) and 85(4) (of the HAA 1985) includes a joint authority established by Part VI of the Local Government Act 1985.

London Challenge Key Teacher HomeBuy

A Market Purchase and New Build programme targeted at teachers in London who have been identified as making a vital contribution to the improvement of certain schools.

Leasehold Scheme for the Elderly (LSE) 

An LCHO product aimed at providing specialist accommodation for elderly owner occupiers, where the interest in the property is sold on a long leasehold basis at a fixed percentage equity stake.

Large Scale Voluntary Transfer (LSVT) 

Whole or partial transfer of the housing stock from a local authority to an RSL.  This can take two forms:
• transfer to an existing RSL
• transfer to a new RSL established specifically to take the transfer, either as an independent RSL or as part of an existing RSL group.

Major Repairs Works,

excluding improvements, to a dwelling owned by an RSL that are necessary to ensure the continued habitability of the Dwelling, and are not maintenance items. Part of the Miscellaneous Works category.

Major Repair Initiative (MRI) 

An ADP Programme providing SHG to fund major repairs for RSL supported housing stock. 

Market Value

A formal valuation method set out in the RICS's Red Book. 

Minor Miscellaneous Works 

A funding category of work funding various minor repairs to RSL property.  It includes Adaptation for people with disabilities,  Insulation/Energy conservation and other works. Part of the Miscellaneous Works category.

Miscellaneous Works

A category of works that covers Major Repairs and Minor Miscellaneous Works funded by SHG

Mixed Funding (MF) 

The generic term to describe the combination of Social Housing Grant and private borrowing.  See also Rent Mixed Funding.

 MF Rent Mixed funded rent.

 MF Sale Mixed funded sale.

Modern Methods of Construction (MMC)

A broad category of building methods that are designed to be more efficient and effective ways of constructing buildings than traditional methods (brick and block). Examples embraces a variety of build approaches including OSM, ‘TunnelForm’ and H&H Celon ‘Thin joint blocks’.

National Affordable Housing Programme (NAHP) 

The name given to the Homes and Communities Agency's largest investment programme from April 2006. Previously it was known as the Approved Development programme (ADP)

National Housing Building Council (NHBC) 

A provider of warranties against defects in new build housing.

New Build HomeBuy 

Housing sold on a part rent/part sale basis. The NB HomeBuyer buys a percentage of the property, funded by a mortgage and/or savings. The remaining percentage is still owned by the developing organisation who charges rent on it.  Superseded Shared Ownership

Open Market HomeBuy (OMHB) 

A Low Cost Home Ownership product that helps a purchaser to buy a property outright on the open market, with the assistance of equity loans in addition to their mortgage loan. 

Other Public Subsidy (OPS) 

That part of the capital cost of property met by funds from a public body other than by SHG e.g. Local Authority, Health Authority, etc.  It may be free or discounted land or a cash contribution.

Off Site Manufacturing (OSM) 

The term used to cover all forms of construction where a significant part of the process takes place in a factory rather than the building site. This can range from wall sections to entire pre-finished room modules. See also MMC.

Participating Lender

One of four banks or building societies, approved by the Homes and Communities Agency, who are willing to provide equity loans for this programme.

Pathfinder Projects  

Projects to cover areas most acutely affected by low demand and abandonment in order to return these areas to sustainable communities. The pathfinder will restructure the areas’ housing markets to ensure there is a more sustainable balance between housing supply and demand and address any other social and economic regeneration issues. The Agency is represented nationally on the Pathfinder steering group and regionally at Pathfinder board meetings. The Pathfinders cover: Birmingham and Sandwell; East Lancashire: Humberside; Manchester and Salford; Merseyside; Newcastle and Gateshead; North Staffordshire; Oldham and Rochdale and South Yorkshire.

Planning Policy Statement 3 (PPS3)  

This sets out the Government’s policy on a range of issues relating to planning in the provision of housing.  Published in December 2006

Purchase and Repair (P&R) 

The RSL acquires a second-hand property for rent, or sale as shared ownership, and the cost of essential repairs is less than £10,000 but more than £1,500. 

Priority Investment Area (PIA) 

Applicable for shared ownership schemes, a PIA is defined by local offices of the Agency.  It is either an urban or rural area of housing stress which ranks for priority investment of public funds, particularly for rehabilitation projects.

Partner Programme Agreement (PPA) 

Funding arrangements through which the great majority of the Agency’s Investment is channelled through organisations (which may be consortia) which have met specific criteria).

Practical Completion (PC) 

A term taken from the JCT family of building contracts (although other families of building contracts use different terms for the same event).  A building contract reaches Practical Completion when the works described in the contract documents are sufficiently finished, and sufficiently free of defects that the employer (the RSL) is willing to accept the properties as operational i.e. able to be used.  It is not a clear-cut definition, but is a judgement made on a scheme by scheme basis.
A Certificate of Partial Completion may be issued when all the dwellings are handed over to the RSL but some external works are incomplete, such as landscaping or boundary walls. It is the trigger for claiming the Final Cost payment of SHG.

Programme Investment Management System (PIMS) 

A module of the Agency’s IMS computer system for the processing of schemes and payments of SHG. All RSL Milestone notifications and payment claims for SHG must be submitted onto the Programme Management module of IMS (PIMS) via the Internet.

Prospective Rents 

The rent which an RSL, on the basis of its rent policies and business plans, would expect to charge at first letting for the house types in the schemes for which it had bid.

Public Sector Body 

A local authority, health authority, new town corporation, the Commission for New Towns, a nationalised industry, a Government Agency, an urban development corporation, the Crown, a housing action trust and a residuary body.

Recycled Capital Grant Fund (RCGF)  

An internal fund within the accounts of an RSL used to recycle HAG/SHG in accordance with Agency policies and procedures.

Resource Expenditure Limit (REL) 

The annual financial resource (cash payments and year-end accruals) available to the each local office to finance its programme.

Regulatory Code 

Sets out the Agency’s governance, management & operational expectations of RSLs and their obligations within the new regulatory system.

Re-improvements 

Work to property in the RSL’s ownership which was originally produced with public sector funding.  The re-improvement work can be improvements or conversion, and be sufficient to justify an increase in rent.  If no rent increase is justifiable, the work is classed as Miscellaneous Works.

Relevant Date

A Grant Recovery term. The date on which payment of Capital Grant is due, according to timetables published by the Agency from time to time.

Rent Influencing Regime 

The process by which the Agency seeks to bear down on rent increases through the issue of a guideline limit for rent increases, and influence rent levels through the rent restructuring framework.

Rent Programme

A general term covering housing for rent (MF Rent).  It includes Works to the RSL’s Stock and Temporary Social Housing (TSH).

Rent Mixed Funding 

Schemes that provide permanent housing for rent  at Target rent levels from RSLs or others , funded partly form SHG or other public subsidy and partly from private loans.

Rent Restructuring Framework

The framework to meet the Government’s objectives for all social rent setting based upon relative property values, local earnings and property size. It applies to Council and RSL housing.

Restructured Rents 

From April 2002 rents are calculated according to a formula based on relative property values, local earnings and property size.  Restructured rents are calculated using the formula and data set out in the DCLG’s Guide to Social Rent Reforms.  Circular R2-27/01 [{link to Circular}] Rent Influencing Regime - Implementing the Rent Restructuring Framework also sets out the calculation for target rents.

Rethinking Construction

The name of the report of the Construction Task Force chaired by Sir John Egan. 

Regional Housing & Planning Bodies (RHPB) 

Set up by the Regional Assembly in each region to ensure the delivery of the Communities Plan programme. Each board is chaired by the Government’s Regional Director and has representatives from the Government Office, HCA, Regional Chamber and Regional Development Agency.  RHBs are responsible for the production of Regional Housing Strategies & the Regional Spatial Strategy. 

Regional Housing Strategy (RHS) 

Prepared by the Regional Housing & Planning Bodies as the basis for advice to Ministers on strategic housing investment priorities within regions. These are a key driver in Corporation investment decision. The division of resources (the Single Regional Housing Pot) between the Agency and local authorities is made through the RHS process.

Registered Social Landlord (RSL) 

A Housing Association or a not-for-profit company that is registered with the Agency/Tenant Services Authority to provide social housing. 

Right to Acquire (RTA) 

Under the Housing Act 1996, specified tenants of specified RSL rented stock developed with SHG (but not HAG) have the legal right to buy their home.

Rural Housing 

Part of the NAHP funding social housing in villages with a population below 3,000.

Sale Mixed Funding 

Housing for sale is a home-ownership scheme designed to help people who are unable to buy a home of their own outright.  It allows people to buy a share of an RSL developed property and pay a rent on the remainder. See also MF Sale

Scheme Development Standards (SDS) 

A set of standards published by the Agency setting out the essential and desirable standards for SHG-funded property acquired or developed by the RSL.

Section 106 Agreement 

A contract entered into by a local planning authority and a property developer under section 106 of the Town and Country Planning Act 1990 under which the developer agrees to provide defined facilities as part of the proposed development.
. Such planning obligations are often used as a legally binding agreement between a local authority and developer to deliver additional affordable social housing within a development.

Self Build 

A housing development undertaken by a self-build housing association or group. The group will either become owners or tenants of the accommodation.  

Shared Housing 

Residential accommodation other than in separate and self-contained premises.

Shared-ownership

Housing sold on a part rent/part sale basis. The shared owner buys a percentage of the property, funded by a mortgage and/or savings. The remaining percentage is still owned by the developing organisation who charges rent on it.  Superseded by New Build HomeBuy.

Short Life project

Property brought into short term use for a period of between 2 and 10 years which was not owned by the Registered Social Landlord prior to such use and which otherwise would have remained vacant.

Social HomeBuy (SHB) 

Scheme introduced in April 2006 to allow RSLs and LAs to dispose of their rented housing at a discount to secure tenants on shared-ownership terms

Social Housing Grant (SHG) 

Capital grant provided by the Agency to fully or partially fund RSLs when developing social housing.  SHG is paid under S18 of the Housing Act 1996. It replaced Housing Association Grant (HAG), a similar capital grant paid under previous legislation.

Single Regional Housing Investment Pot  

System for allocating funds for housing at regional level. Each region will have a single pot for housing investment as recommended by the RHB, replaces the Regional Investment Programme.

Start on Site (SOS) 

The Start on Site claim of SHG is triggered by the date when the building contractor takes possession of the site or property and the RSL & builder have both signed the building contract. From April 2006 this will generally represent 50% of the allocated grant.

Specialist Route

The process for obtaining 06-08 NAHP funding for organisations not achieving Partner Status. 

Supported Housing 

Supported Housing is accommodation provided for a specific client group to enable them to adjust to independent living or to enable them to live independently. The term supported housing applies to purpose-designed or designated supported housing. The Homes and Communities Agency's mandatory definition to enable housing providers to categorise their stock within the Agency's regulatory, data collection and investment systems is set out in Housing Corporation Regulatory Circular 03/04 [link].

Supporting Documentation

A Grant Recovery term. 
• Invoices in respect of reasonable expenses.  These invoices should show the Property sold, the date and amount of fees incurred and why they were paid, e.g. drawing up a draft conveyance.
• A copy of any valuation report unless the value is stated on the invoice for the valuation fee.
• A copy of the section 125 notice or its equivalent.
• When applicable, a schedule showing that abortive RTB costs cannot be funded from RTB surpluses.

Sustainable Development  

Development which meets the needs of the present generation, balancing environmental, social and economic needs, without compromising the ability of  future generations to meet their own needs.

Sustainability Toolkit  

Agency produced toolkit for RSLs to assess whether the schemes they are bidding for are sustainable.

Target Rent 

The rent which is derived by applying the formula set out in the Housing Corporation Consultation Paper ‘Rent Influencing Regime’.

Temporary Market Rent Housing

Properties intended to be kept available for Letting at market rents for periods of at least two years but shorter than thirty years, and developed in accordance with the Agency’s Capital Funding Guide.
 
Temporary Social Housing (TSH) 

A programme to help RSLs bring into use at sub market rents, accommodation acquired on a temporary basis with a life of more than 2 but less than 30 years. 

Tenants Incentive Scheme

Grant Capital Grant paid to a Registered Social Landlord under the Agency’s Tenants Incentive Scheme procedures.

Valid Valuation 

A valuation dated no more than three months before the date of exchange of contracts to sell a Property or land, or the period of validity stated in the valuation, or the shared ownership lease if applicable.

Voluntary Purchase Grant 

Grant paid to a Registered Social Landlord under Section 21 of the Housing Act 1996 in accordance with the Agency’s procedures. 

Works Only New Build

A new build development on land in an RSL’s ownership which has previously had the support of public sector funding/grant.  It can also be the demolition and redevelopment of property owned by the RSL whether or not the property was originally public-funded. The prior permission of the Agency is needed if Grant funded property is to be demolished.

 

Works Only Rehabilitation

Works to property in an RSL’s ownership that has previously had the support of public sector funding/grant.

Works to RSL Existing Stock (WTRSLS)

A NAHP term covering Miscellaneous Works, Works Only Rehabilitation and Re-improvement.

Zone Agent 

See HomeBuy Agent