The Homes and Communities Agency (HCA) has listed which Kickstart projects will receive funding following a £390 million cash boost
The government agency has also set out which schemes, previously promised funds, are now under reviews as Danny Alexander, chief secretary to the Treasury, confirmed the financial injection which will come to the aid of stalled housing schemes across the country.
Bob Kerslake, chief executive at the Homes and Communities Agency (HCA), said: ‘We are pleased to have confirmation of the £390m and are working on how we can use it to maximise the impact for maintaining the supply of affordable housing and creating opportunity for communities.
‘It also means that we are now in a position to both meet commitments across our entire funding programme as well as providing funding for some additional affordable housing schemes.’
The decision means that all of HCA’s contractual commitments can now be met while Round 2 Kickstart schemes approved before 6 April will proceed.
A £610 million funding black hole however has only partly been plugged. The housing quango still faces cuts worth £230 million.
Kickstart funding remains under review for Stefan Zins Associates’ Caspian Wharf in East London for Berkely Homes, PRP Architects’ Kennet Island Village in Reading for St James and CZWG’s £180 million Rathbone Market development in Canning Town, London.
Read the list of local authority new build schemes to receive funding and projects under review
HCA’s funding saga revealed
• On 24 May reductions were made to the HCA’s programmes of £230m as part of wider efficiency saving imposed on CLG. These were made up of £100m (National Affordable Housing Programme); £50m (Kickstart Round 2); £30m (Gypsy & Traveller Programme); £50m (Housing Market Renewal, subject to consultation).
• As part of the Government’s announcement on the above reductions, it was indicated that Housing Pledge funding for the HCA of £780m was not secure. However, the Treasury also indicated that £170m of funding would be reinvested in the HCA for social rented housing, creating an overall potential shortfall in funding for the Agency of £610m (£780m - £170m = £610m).
• The Government has decided that granting the remaining £610m in full is unaffordable, given the extent of similar commitments across the rest of government. However, the Government has guaranteed that £390m will be available this year, on top of the £170m announced on 24 May 2010. This will be prioritised towards new affordable housing as well as meeting existing commitments on Decent Homes and Mortgage Rescue.
• In total the £780m coupled with £230m in programme cuts, created a total potential shortfall in funding of £1.010 billion. This set against a funding commitment from government of £170m and now a further £390m means that the HCA has a programme reduction in 2010/11 of £450m in total (£230m (as above) plus £220m as per yesterday’s announcement). This reduces the HCA’s capital budget for 2010/11 by around 10 per cent, to £4.11bn.