Housing Association Guide Part 2 - Appendix 3Annex R - Public subsidy
1.00Where a public subsidy - other than that mentioned in Paragraph 4.00 below, is provided by a public body including the NIHE, that subsidy must be deducted from the capital grant paid to the Association. This is to ensure the Association is not receiving double funding from public funds for the same item.
[Note: grant paid in respect of an Acquisition Tranche claim for the Advanced Acquisition of Land will be treated as a Public Subsidy Deduction in the subsequent Application for Project Approval.]
2.00Where the public subsidy takes the form of a contribution to the future running costs of the project - the net present value of the subsidy must be calculated and deducted from the grant.
2.01Where the public subsidy takes the form of land or buildings made available to the Association at less than the full market value - the value of the subsidy, determined by the VLA or by an independent qualified Valuer, must be deducted from the grant.
3.00Under current HM Treasury rules - funding from the National Lottery is classified as public expenditure. Lottery funding is intended to be additional to, rather than a substitute for existing public expenditure. Lottery grants cannot be used in conjunction with HAG funding on individual schemes unless it is meeting capital costs that do not qualify for HAG i.e. non-housing costs. Lottery grants cannot be used as matching funds for grants that require a contribution from non-public sources. It can, however, be used to provide additional units provided these are clearly separate from the HAG funded scheme.
4.00The following forms of public subsidy - will not result in deductions of grant:
- Where a scheme qualifies for revenue support towards non-housing costs from any other public body, the amount of such support will be disregarded in the calculation of grant;
- Where others are funding additional non-housing facilities or other Non-qualifying Cost items from public funds.
WHERE THE ASSOCIATION IS UNCLEAR ON WHETHER A PUBLIC SECTOR SUBSIDY IS INVOLVED IT SHOULD SEEK GUIDANCE FROM THE NIHE (DPG).
|
