L&Q’s Extensions Programme

Regional Housing Pot Targeted Funding Stream 2008-2011

13 November 2009

Pippa Read

Special Projects

Coordinator

The Programme: a summary

• £1.61 million from the TFS’s 2008-11 bidding round (entirely externally funded)

• Will deliver 20 extended properties – 3 or 4 beds on completion • 10 in 09/10 and a further 10 in 10/11• Must house 100 people on completion i.e. 20 x 3bed 5person • Prioritises properties that provide larger family accommodation • Prioritises properties that are cost effective to convert – i.e. lofts • Properties must meet DHS on completion• Properties must also meet HCA’s DQS for rehab schemes• Tenanted properties or voids considered • Will only consider residents with a positive assessment from HM• Completes with residents in situ

The money: the bid

• GLA Act 2007 – new mayoral housing responsibilities

• Takes lead on allocation of TFS, which provides ‘funding for programmes to address some of the most pressing housing issues within London’s existing stock’

• 5 strands, 1 being ‘increasing the number of 3 bedroomed and larger social rented homes’

• All funds (£285m) allocated via a single bidding round – 1 form!

• Bids made by July 08 with confirmation in Dec 08• Next bidding round likely to be late 10 early 11• Money received as SHG from the HCA

The money: in practice

• The bid: 20 properties for £1.61 million:• £80,500 per home

– £70,000 works – £10,500 on-costs

• Currently (3 on-site):• £64,519 per home

– £48,958 works– £15,561 on-costs

• Recognised early that on-costs would be high• Consultant/HQI• Party Wall/Building Regs • Development allowances • VAT • Contingency

• Works costs must be kept under control • Lofts that do not require planning permission • Helps with timescales – long process from identification to approval

to SOS

Identifying properties: what we were looking for

• Over 30 years old• Gable end or terrace• High roof pitch • Room for additional stair core• Overcrowded if tenanted

Identifying properties: the logistics

• First stage filtering:• HM and PS take the lead:

– PS inspected properties referred to them from HM (those registered as overcrowded on transfer list)

– Voids team inspected potential voids – HM also conducted a targeted letter writing campaign to

certain roads with properties considered suitable. They then filtered the results based on occupancy

• Second stage filtering • Special Projects and our Consultant

– Inspected the referred properties – Initial feasibility conducted

• Individual submissions to HCA • Design and Standards Advisor • Bids clinic

Tricky bits

• Finding properties – an on-going process• Managing residents’ expectations • Internal financial/legal issues:

– Outstanding mortgages– Loan covenants

• Working with funders:• Not just a loft but:

– HQIs – minimum room sizes/sustainability– Ancillary facilities – WCs/storage

• Selecting a good consultant • Selecting a suitable contractor