PRELIMINARY APPLICATION FORM FOR REGISTRATION AS A PROVIDER OF SOCIAL HOUSING April 2015 1. About this form 1.1 This form is issued by the Homes and Communities Agency (HCA) in its capacity as regulator of social housing (the regulator) and should be completed by applicants wishing to become providers of social housing registered under the Housing and Regeneration Act 2008 (the act). 1.2 The form should be read in conjunction with the ‘Guidance on registration as a provider of social housing’ (the registration guidance) published from time to time by the regulator. Applicants should refer to that guidance for general information on registration as a provider and on the registration process and should refer to the regulatory framework that applies to registered providers on the HCA’s website https://www.gov.uk/housing/regulation. 1.3 Guidance on completing the preliminary application is included within this form. 1.4 Before completing this application form, the applicant should familiarise itself with the detailed application process and with the requirements that will apply to them if they are registered. The applicant should not proceed with a preliminary application unless it is satisfied that it will be able meet the requirements of registration. 1.5 The applicant should complete this form to provide the information that will enable the regulator to establish whether it is an English body as defined in section 79 of the act and whether it meets Condition 1 of the eligibility criteria for registration set out in section 112(2) of the act: that it is a provider of social housing in England or that it intends to become a provider of social housing in England. 1.6 If the regulator confirms that the applicant is an English body that is, or intends to become, a provider of social housing in England, the applicant may then submit a detailed application for registration. The applicant should complete this to provide the information that will enable the regulator to establish whether it meets Condition 2 of the eligibility criteria set out in section 112(2) of the act: that it satisfies the criteria set by the regulator as to its financial situation, its constitution, and other arrangements for its management. 1.7 This form should be completed in full. 1.8 The applicant should note that the HCA as a public authority is subject to the provisions of the Freedom of Information Act 2000 and the Environmental Information Regulations 2004. The regulator may also (section 109 of the act) share information with a public authority if the regulator thinks the disclosure is necessary for a purposed connected with its functions or the functions or for a purpose connected with the authority’s functions. 1.9 As a public authority the HCA is also subject to the Public Sector Equality Duty which requires public bodies to have due regard to the need to eliminate discrimination, advance equality of opportunity and foster good relations between different people when carrying out their activities. 1.10 This form asks for the consent of the applicant for the regulator to share relevant information with other parts of the HCA and for other parts of the HCA to share relevant information about the applicant with the regulator. This sharing of information will only take place when it is appropriate to do so. The applicant’s consent may be withdrawn at any stage. 1.11 Definitions of terms used within this form are, unless otherwise indicated, taken from the act or other cited legislation, all of which can be found on www.legislation.gov.uk. 1 1.12 Any enquiries should be directed to 0300 1234 500 or email mail@homesandcommunities.gov.uk. 1.13 The regulator’s preference is for electronic applications at all stages. These should be submitted to registrations@hca.gsi.gov.uk. If it is not possible to submit electronically, applications should be posted to: Referrals and Regulatory Enquiries Team Homes and Communities Agency 1st Floor Lateral House 8 City Walk Leeds LS11 9AT 2 Name of applicant ……………………………………………………………………………… Declaration and consent We apply on behalf of the above applicant for registration under Section 116 of the Housing and Regeneration Act 2008 (the act) and hereby: i) undertake to submit to the regulator any necessary documentation and information to demonstrate that the applicant meets the eligibility requirements for registration ii) certify that to the best of our knowledge and belief, the information given in this form is correct and has been seen and approved by any governing body of the applicant iii) certify that the applicant will ensure that any information subsequently provided to the regulator during the application process will be seen and approved by any governing body iv) confirm that we understand and accept that any recorded information regarding this application held by the regulator, including any information provided in this application form and supporting documents, or which is provided to the regulator during the application process, may be disclosed by the regulator where this is in keeping with its obligations as a public authority under the Freedom of Information Act 2000 and/or the Environmental Information Regulations 2004 v) consent to the sharing of relevant information within the HCA concerning the applicant for registration vi) agree to receiving electronic communications from the HCA Signed by ……………………………………………………………………………………. Name ……………………………………………………………………………………. Date …………………………………….……………………………………………… Position ……………………………………...…………………………………………….. The application form should be signed by someone who has the authority, in accordance with the applicant's governing instrument, to sign on behalf of the applicant. The applicant should note that, at its discretion, the regulator will not register an applicant with a name that is similar to the name of an existing or previous registered provider if it believes that the use of this name may cause confusion. It will also, at its discretion, not register an applicant with a name that it considers inappropriate or misleading. 3 General information Contact name Contact’s position with the applicant Applicant’s website Registered office Correspondence address of contact named above Postcode: Postcode: Tel No: Tel No: Email: 4 Information about the applicant 1. Is the applicant a parent of one or more organisations? (please provide details) 2. Is the applicant a subsidiary of another organisation? (please provide details of the applicant’s immediate parent and the ultimate controlling body of the applicant) 3. Please confirm who are the shareholders or members of the applicant 4. Please confirm who are the directors or board members of the applicant For the information provided above, any official documents confirming this (such as Companies House or FCA records) should be included with the application. 5 APPLYING FOR REGISTRATION Before submitting a Detailed Application for registration, an applicant must first demonstrate to the regulator that it is an English body which is, or intends to become, a provider of social housing in England. ENGLISH BODY An applicant must be an English body as defined in section 79 of the Housing and Regeneration Act 2008. Please indicate below how the applicant meets the definition of English body set out in the act. A registered charity whose address for the purpose of registration by the Charity Commission is in England A registered society whose registered office for the purposes of the Co-Operative and Community Benefit Societies Act 2014 is in England A registered company which has its registered office in England A copy of the confirmation from the relevant registration authority that includes the name of the registered organisation and its registration number should be provided with the application. A registered company includes a Community Interest Company (CIC). A community land trust which owns land in England and meets the conditions specified in the act Note that the wording in section 79 of the act relating to community land trusts (CLTs) states that the CLT must own land in England. CLTs that do not yet own land in England but are intending to do so should tick this box and the regulator will treat them as intending providers, subject to the applicant providing satisfactory evidence of intent. CLTs should tick this box and any other box that is appropriate for them, for example registered company. Any other person (whether or not a body corporate registered under the law of the United Kingdom) which is not a Welsh body within the meaning of Section 1A of the Housing Act 1996 and makes available, or intends to make available, accommodation in England. Details should be provided below of the type of person, for example LLP, for the purposes of registration. 6 PROVIDER By section 80 Housing and Regeneration Act 2008, a provider is: The landlord of low cost rental accommodation The landlord of low cost home ownership: shared ownership The seller of low cost home ownership: equity percentage The social landlord of low cost home ownership: shared ownership trust 5. Please confirm how the applicant is a provider as defined above. Please provide evidence of the applicant’s status as a landlord or seller or (for shared ownership trusts) social landlord 6. If the applicant is not a provider as defined above, please provide evidence of its intention to become a provider (the evidence should relate to an identified scheme or project to provide social housing within a specified timeframe after registration) Guidance notes The regulator interprets landlord for the purposes of section 80 of the act as meaning the person entitled to the immediate reversion of the lease and who issues the tenancy agreements to the social housing tenants. A superior landlord (such as the owner of the freehold who leases the property to the landlord) would not be considered to be a landlord for the purposes of the act and so would not be eligible for registration. The regulator does not regard corporate entities where they act solely as the corporate trustee of an unincorporated charity as being landlords for the purposes of section 80 of the act and so they would not be eligible for registration. If the applicant is already a landlord of social housing in England then evidence of the existing housing provision should be supplied. This could be, for example, copies of tenancy agreements. Additional notes for intending providers If the applicant does not already provide social housing in England but is applying as an intending provider, the regulator needs to be satisfied of that intent before the applicant can progress to the detailed application stage. It expects to see that the applicant has a viable plan in place that appears to be deliverable. The applicant should provide evidence either of existing housing that is to become social housing or of financial provision for leasing, buying or developing new social housing. This may include: 7 details of existing land/property ownership, leasing or development, including copies of Land Registry title or head lease details of planned land/property ownership, leasing or development financial arrangements, for example application for financial assistance lodged with the HCA or GLA, loans, general funding provision details of contact with the local authority about the applicant's plans any existing and planned contractual relationships any other supporting evidence The regulator will expect the applicant to have a board in place that is actively involved in the registration process, in any decisions taken about, for example, finance arrangements and in engagement, where relevant, with the regulator. The regulator would not usually expect to register an applicant if the business plan showed a period of longer than twelve months after registration before the applicant became a provider of social housing, although it recognises that in some cases development timescales may be longer. Applicants that are intending providers will be required to commit to key milestones and a date by which they expect to have become landlords of social housing. The position of the intending provider will be kept under review after registration. In the event that the regulator is not satisfied after registering a provider that there is continued, evidenced, intent to provide social housing, the regulator is likely to propose compulsory de-registration under section 118 of the act. This action would be taken on the basis that the provider is no longer eligible for registration. If circumstances change after de-registration, applicants can re-apply for registration at any stage. If there are material changes in the business plan or scheme in this period the regulator may need to review the provider’s continued compliance with the regulatory standards. If the regulator is not satisfied that the evidence of an applicant's intent is sufficient to proceed to registration and the application is refused or if a provider is de-registered because the regulator is not satisfied of its progress towards becoming a provider, a re-application may be made at any time if the applicant's circumstances change. 8 SOCIAL HOUSING By section 68 of the Housing and Regeneration Act 2008, social housing means: Low cost rental accommodation, and Low cost home ownership accommodation LOW COST RENTAL ACCOMMODATION By section 69 of the Housing and Regeneration Act 2008, low cost rental accommodation is accommodation: which Is made available for rent, and the rent is below the market rate, and which is made available in accordance with rules designed to ensure that it is made available to people whose needs are not adequately served by the commercial housing market. 7. Does the applicant provide, or intend to provide, accommodation as defined above? If no, go to question 14 8. Has the applicant applied for or received funding from the HCA or GLA to develop social housing? Evidence of this should be provided by the applicant 9. The applicant should outline how its accommodation is or, for intending providers, will be made available in line with the requirements in the act 9 10. The applicant should set out why the rent is considered to be below market rate. The expectation is that the applicant is charging social rents as defined in the Rent Standard. The applicant should provide evidence that the rents have been calculated in accordance with the formula contained in the Rent Standard 11. If the applicant does (or will) charge rent for its social housing that falls outside of the formula calculation contained in the Rent Standard now or in the future the applicant should provide the evidence that shows how it meets the criteria in paragraph 3.18 of the Rent Standard Guidance. 12. If the applicant is (or will) charge a rent for its social housing that falls outside the rent formula calculation in the Rent Standard now or in the future, how has the applicant determined market rate? 13. How is or, in the case of intending providers, will the accommodation be made available in accordance with rules, as required above? (Please provide a copy of the rules or the principles on which any rules will be based) Guidance notes The applicant will need to demonstrate to the regulator that the housing it provides or propose to provide is or will be social housing. Question 8 To assess whether the proposed housing provision is social housing, the regulator will first consider whether the housing provided or to be provided by the applicant has been funded by the HCA or GLA as social housing. It is likely to treat all such housing as social housing, although there may be exceptions. The applicant can evidence this by providing a copy of an agreement with the HCA or GLA setting out the conditions under which financial assistance is provided. In the absence of grant funding, the regulator does not consider the following to be social housing: accommodation let on the open market 10 accommodation made available only to students in full-time education or training a care home (within the meaning of the Care Standards Act 2000) where nursing is provided accommodation provided in response to a request by the Secretary of State under section 100 of the Immigration and Asylum Act 1999 (support for asylum seekers) and property of a kind specified in regulations made by the Secretary of State. Note that no such regulations have so far been made. The regulator has based this view on the exceptions set out in section 77 of the act. Question 9 If the housing is not grant funded and is not one of the exceptions listed above, the applicant will need to demonstrate that the accommodation is made available for rent. The applicant should set out whether it takes tenant nominations from a local housing authority or, if not, how a potential social housing tenant would know that the applicant had properties available. The applicant should refer to the Tenancy Standard and ensure that the types and lengths of tenure it proposes to offer meet the requirements of this Standard. Questions 10 - 12 The regulator will need to be satisfied that the rent is below market rate. The applicant can demonstrate this by evidencing that it is charging a social rent that meets the requirements of the Rent Standard. The applicant should refer to the Rent Standard and the associated guidance (available on the website) to determine whether it is charging social rent. This indicates how social housing rents should be set and sets out a formula that determines the level of social rent that should be charged for different types of properties, taking into account factors such as size, property value and location. The Rent Standard also sets out the circumstances when an exemption from its requirements is acceptable. If the applicant thinks its housing is exempt from the Rent Standard requirements, it should demonstrate how it meets the relevant exemption. The exemption categories are set out in paragraph 3.18 of the Rent Standard Guidance. Note that an applicant that is classed as providing exempt accommodation for the purposes of housing benefit regulations is not necessarily exempt from the requirements of the Rent Standard. If the applicant is not charging a social rent, it needs to demonstrate that the rent is below market rate. Market rate is not defined in the act. The regulator does, however, set out .18 3 to the Rent Standard Guidance the principles of valuation for Affordable Rent purposes. The applicant should follow these principles when demonstrating that the rent is below market rate. The applicant should note that the core rent should be separated out from any other charged elements, such as support costs, so that a direct comparison can be made between the core rental element and the market rate valuation. Temporary accommodation used to discharge the duty under Part 7 of the Housing Act 1996 is, like any other accommodation, not considered to be social housing unless it is provided at below market rate and is made available in accordance with rules designed to ensure that it is made available to people whose needs are not adequately served by the commercial housing market. The regulator’s understanding is that such temporary accommodation will often be provided at market rate or above and therefore its presumption is that it will not be social housing. The applicant will need to provide evidence to demonstrate that this presumption is not the case. 11 The applicant may be proposing to provide housing where no ‘rent’ is paid. This may be, for example, where the housing is occupied under a license and the residents pay a weekly contribution to the maintenance of the property. Section 275 of the act provides that such payments are to be treated as rent, but if the applicant believes that the nature of the payment means that it cannot be compared with the prevailing market rent levels then it should demonstrate that this is the case. If the regulator accepts this, it will determine whether the housing to be provided is social housing by looking at whether it is made available in accordance with rules designed to make sure that it is made available to people whose needs are not adequately served by the commercial housing market. Question 13 The applicant must demonstrate that the housing is made available in accordance with rules designed to make sure that it is made available to people whose needs are not adequately served by the commercial housing market. Applicants may be able to demonstrate meeting this requirement by, for example, reasons of affordability, specialised/adapted housing, security of tenure or vulnerability or by referring to the objects in its governing document. The Tenancy Standard requires providers to put in place processes for allocation of their social housing, to address the housing needs and aspirations of tenants and potential tenants, and (regarding allocation processes) how providers have made use of common allocation registers, common allocations policies and local lettings policies. Processes that meet this Standard are likely to include the rules on which accommodation would be allocated that explain the basis on which the applicant will allocate the social housing while meeting the requirements of the Tenancy Standard that homes are let “in a fair, transparent and efficient way”. The regulator will expect to see a copy of ‘the rules’ on which the social housing will be made available, such as the applicant’s allocation policy. Additional guidance for intending providers The regulator expects intending providers to provide the information set out above or, where it is not yet available, information that enables the regulator to determine whether the eligibility requirements are met. Where the applicant has not yet drawn up an allocation policy, the regulator expects that the applicant will have considered how it will allocate its social housing and so the applicant can set out these principles. Similarly, the regulator expects that an applicant will know the basis on which it will be charging rent, especially as this may be linked to conditions of grant funding, and so will be in a position to set this out even if it is not yet charging rent. 12 LOW COST HOME OWNERSHIP ACCOMMODATION By section 70 of the Housing and Regeneration Act 2008, low cost home ownership accommodation is accommodation occupied, or made available for occupation, in accordance with: shared ownership arrangements equity percentage arrangements, or shared ownership trusts The accommodation must be made available in accordance with rules designed to ensure that it is made available to people whose needs are not adequately served by the commercial housing market SHARED OWNERSHIP ARRANGEMENTS By section 70(4) of the Housing and Regeneration Act 2008, this means arrangements under a lease which : Is granted on payment of a premium calculated by reference to a percentage of either the value of the accommodation or the cost of providing it, and Provides that the tenant (or the tenant’s personal representatives) will or may be entitled to a sum calculated by reference to the value of the accommodation 14. Does the applicant provide, or intend to provide, accommodation as defined above? If no, go to question 17 If yes, please provide evidence that it meets the definition. 15. Please outline how the applicant’s accommodation is made available in line with the requirements in the act 16. For intending providers, is the applicant in receipt of funding from the HCA or GLA and is the applicant intending to develop social housing of which it will be the landlord? Evidence of this funding should be provided by the applicant 13 EQUITY PERCENTAGE ARRANGEMENTS By section 70(5) of the Housing and Regeneration Act 2008, this means arrangements under which: The owner of a freehold or leasehold interest in residential property (the seller”) conveys it to an individual (the buyer) The buyer, in consideration for the conveyance: - Pays the seller a sum (the initial payment) expressed to represent a percentage of the value of the interest at the time of the conveyance, and - Agrees to pay the seller other sums calculated by reference to a percentage of the value of the interest at the time when each sum is to be paid, and The liability to make any payment required by the arrangements (apart from the initial payment) is secured by a mortgage 17. Does the applicant provide, or intend to provide, accommodation as defined above? If no, go to question 20 18. Please outline how the applicant’s accommodation is made available in line with the requirements in the act 19. For intending providers, is the applicant in receipt of funding from the HCA or GLA and is to develop social housing of which it will be the seller, as set out in Section 70(5) of the act? Evidence of this funding should be provided by the applicant 14 SHARED OWNERSHIP TRUSTS By section 70(6) of the Housing and Regeneration Act 2008, has the same meaning as in Schedule 9 to the Finance Act 2003 (c.14) (stamp duty land tax) 20. Does the applicant provide, or intend to provide, accommodation as defined above? 21. Please outline how the applicant’s accommodation is made available in line with the requirements in the act 22. For intending providers, is the applicant in receipt of funding from the HCA or GLA and is the applicant intending to develop social housing of which it will be the "social landlord" within the meaning of paragraph 7(3) of Schedule 9 to the Finance Act 2003? Evidence of this funding should be provided by the applicant Guidance notes In each of these cases of low cost home ownership, the applicant should follow the guidance for low cost rental accommodation above on the rules under which the accommodation is made available. 15 www.gov.uk/hca mail@homesandcommunities.co.uk 0300 1234 500 Homes and Communities Agency Fry Building 2 Marsham Street London SW1P 4DF The Homes and Communities Agency is committed to providing accessible information where possible and we will consider providing information in alternative formats such as large print, audio and Braille upon request. 16 Publication date: March 2015