What does Affordable Housing Solutions look for in a project?
The key elements of successful projects are:
in an area of high housing need and reasonable proximity to labour market
within reasonable distance of public transport
Accessibility – a proportion of dwellings provided are accessible to people with a
efficient and functional design with a view to low maintenance costs
Value – cost
of procurement is less than the market value
the cost to government meets defined criteria, i.e. the HA secures adequate
debt finance or social investment to reduce capital grants
the rental income from the project is sufficient to meet all outgoings
including repayment of any debt incurred by the project
Sustainability - the project is financially sustainable over the life of the
dwellings without recourse to additional government funding
AHS will undertake a feasibility on a
project to determine whether it meets these criteria before recommending
whether to proceed.
As state governments require housing
associations to take on more risk, housing associations will increasingly use
commercial principles to manage such risks. AHS will help housing associations
in this area.