Transcript Supporting Community Housing – How To Do It Blase Lambert 6th March 2014

Supporting Community Housing
– How To Do It
Blase Lambert
6th March 2014
The Confederation of
Co-operative Housing
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The representative body for co-operative and mutual
housing in England & Wales since 1992
180 member organisations
Aims and objectives:
 Promote viable forms of co-operative, mutual &
community led housing
 Assist organisations to enhance governance &
deliver excellent services
 Provide networking opportunities
Commission on Co-operative &
Mutual Housing
Models of Community Housing
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Ownership cooperatives
Custom (self) build
Management cooperatives
Co-housing
Community land trusts
Mutual home
ownership
Sanford Housing Co-operative
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Built in 1970 in New Cross,
South London
14 purpose built shared
houses
Carbon C60 project has
reduced their carbon
emissions by over 60%,
using:
 Solar panels
 Biomass boilers
 Green training and
awareness
Community Self Build
Diggers Housing Co-op
• Built in Brighton
• Self build - built by the
members who live there
• Simple timber frame
construction techniques
• Value of labour reduces
the rent
• Environmentally
sustainable homes
Leasehold Management
Redditch Co-operative Homes
Accord Housing Association
(Finance & Development)
Development, Corporate
& Financial Services
Agreements
Redditch Co-operative Homes
(Management Services)
7 year lease &
Management
Agreement
Neighbourhood Co-ops
(Local Scheme Management)
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Partnership between
Accord HA & Redditch
Borough Council
Financed & developed
through an enabler
which retains freehold
Long lease to
intermediary
Shorter leases to 6 local
management cooperatives
Key Stages
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The initial members come together with an idea; or
a local authority / enabling developer decides they
want to do something – who develops the vision?
Building the group
Getting the right advice – where do we go?
Visiting existing schemes
Building the development partnership
Scoping the development proposal
Agreeing the legal structure
Getting the finance in place
Drawing up the plans and getting planning
permission
Building the scheme and moving in (sales & lettings)
The long term sustainability
Key Issues
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Why are you looking to do this?
What are you looking to develop?
New build or refurbishment
Rent, sales or shared ownership / equity share
Only housing or not
Have you got a site?
Is there a community group leading this?
Is the local authority supportive?
Self-build, community or enabling developer
Are there any assets involved or is it all debt / grant
driven?
What will be the tenure and land ownership model?
What are the long term community aspirations?
The Policy Agenda
Government support for
Community Led Housing
through grants, loans &
guarantees
 Affordable Housing
Programme Grant
 Custom Build
Revolving Fund
 Community Right to
Build
 Rent to Buy, Help
to Buy & Housing
Guarantee Scheme
Becoming a Registered Provider
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Detailed knowledge of governance required
Preliminary stage – must be an English body,
providing or intending to provide social housing &
intend to meet the HCA criteria
Detailed stage – compliance with the Regulatory
Framework
 Compliance with the Financial Viability Standard
 Meeting the Governance Standard
 Meeting the Value for Money & Rent Standards
 Meeting the Consumer Standards
 Demonstrating a ‘Reasonable Path’
 Intervention & ‘Serious Detriment’
Financing a Scheme
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The Community Land Trust Fund
Private Finance – commercial loans (most lenders
now in the 5 – 7 year range; small number of
specialists for small schemes over long term); bond
financing; loanstock; private equity; long term
institutional investment
Enabling Developers – private developer to take
development & sales risk with units released to
community group on turnkey basis; local authority
borrowing headroom (access to Public Sector Loans
Board); housing association levering in funds or
guaranteeing
scheme;
housing
co-operatives
investing in schemes
Development Modelling
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Land or buildings purchase
Site preparation – clearance, contamination, utilities
& access – surveyor?
Architect to draw up plans – site area, number & size
of homes, tenure split
Planning process, s106 & Community Infrastructure
Levy
Build / refurbishment costs
Non residential development – common house,
communal areas / facilities, garages & parking, roads
& pathways, green & play areas
Mixed development – retail, office, community &
leisure
Development Modelling
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Meterage build costs
Community & governance development cost
Professional fees at both pre development &
development phases
Development financing requirement – net borrowing
requirement
Financing interest rate
Sources of income – personal equity, existing assets,
grants, loanstock, private finance, sales & rents
Local housing market data
Rent levels & sales prices (uplift rates) by unit /
bedspace type
Sales costs
Legal status & tax considerations
Long Term Modelling
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Rent inflation rates
Cost inflation rates
Void and bad debt levels
Annual financing cost
Leverage & gearing
Management & maintenance costs
Common parts maintenance & servicing costs
25 year asset management plan with component life
cycle, cost & inflation assumptions
A costed 25 year financial plan for the scheme &
debt balance modelling