Local Investment Planning - Where are we now? (Colin Molton, HCA)


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The South and South West Executive Director at the HCA, Colin Molton, gave a presentation which covered where we are now as an agency and the importance of the Local Investment Planning to our future work.

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Local Investment Planning - Where are we now? (Colin Molton, HCA)

  1. 1. Local Investment Planning –where we are nowColin Molton, Executive Director, HCA10 November 2011
  2. 2. HCA purpose and programmes Purpose from government: “The purpose of the HCA is to contribute to economic and housing growth by helping communities to realise their aspirations for prosperity and to deliver quality housing that people can afford.” Programmes: – Investment – Enabling – Land and Economic Assets – Regulation (from 2012) Thriving communities, affordable homes
  3. 3. Key policy driversPublic fundingThe localism agendaA focus on growthThe new National PlanningPolicy FrameworkNew priorities and approaches: – Local incentive led approach to housing supply – Community led regeneration – Locally driven economic and jobs growthThriving communities, affordable homes
  4. 4. Excellent achievements, strategy and delivery 2010/11 year end targets Affordable housing FirstBuy programme Development and disposal strategyThriving communities, affordable homes
  5. 5. HCA delivery Despite the downturn, in 2010/11 we have delivered: – More than 57,000 housing starts – Including more than 8,900 in the South and South West – Around 64,000 housing completions – Including 11,746 in the South and South WestThriving communities, affordable homes
  6. 6. HCA delivery Since April 2011, we have: – Developed the new Affordable Homes Programme, with around 80,000 homes due to be delivered by 2015 – This includes 12,700 homes in the South and South West – Taken responsibility for around £300m of former RDA assets which form the new Economic Assets ProgrammeThriving communities, affordable homes
  7. 7. Our investment role:Affordable Homes ProgrammeFunding of £4.5bn to deliverup to 170,000 new affordablehomesA more flexible offer forhousing providers and tenantsmeeting locally identifiedneedsMaximising delivery of newaffordable housing supplySignificant contracts approvedin South and South WestThriving communities, affordable homes
  8. 8. Our investment role: land and regeneration HCA assets Unlocking of public land Former RDA land Mixed use development, with an economic growth and jobs focus Productive partnerships with LEPs and Enterprise Zones Availability of investment is receipt-ledThriving communities, affordable homes
  9. 9. Our investment role:land and regeneration HCA development and disposal strategy will deliver 3,000 new homes by 2015 Pioneering ‘Build Now, Pay Later’ approach of deferred payment Managing economic assets working with partners to secure local economic developmentThriving communities, affordable homes
  10. 10. Our role in land HCA land – Existing P&R commitments – Accelerated disposal of land Other government land – Technical support to government departments Economic assets (RDA land) – More than 300 sites transferred with a value of £300m – Local stewardship arrangementsThriving communities, affordable homes
  11. 11. RDA assets transfer to HCA Transfer order – Effective 19 September. Staff transferring – 14 in SSW National Economic Assets portfolio – HCA reports to DCLG and new Land and Regeneration Board, on which BIS will also sit Scale – 343 land and property assets, 1,989 contracts relating to the assets, 156 live funding agreements, 24 companies, 3,029 contingent assets with overage/clawback, 84 contingent liabilities, 30 past ERDF payments to monitor and 742 tenancies/development agreements Objective of transfer – to realise the economic outcomes of the projects but also focus on de-commitment and exit Obligation – to raise receipts to fund development, because only legal commitments have been fundedThriving communities, affordable homes
  12. 12. Principles of Stewardship Supports localism and growth agendas Local partners get strategic influence in delivery/outcomes Maximises potential to align with other public assets Self-financing model – opportunities to cross subsidise liabilities Avoids fire sales and maximises long-term value – 10 year programme, although main delivery by year 3Thriving communities, affordable homes
  13. 13. How Stewardship works Packages – income from one asset offsets funding requirements on another. Income from companies used (clawback/overage income accounted for separately) Alignment – other public and private partners can align existing projects with RDA projects Receipts – go directly to HCA to be recycled back within the programme: a major innovation (our core land programme receipts all go back to the Exchequer)Thriving communities, affordable homes
  14. 14. Supporting growth The Plan for Growth highlights importance of construction to economic growth and housing supply to labour markets HCA investment and enabling of housing supply and regeneration supports growth at local level Working with Local Enterprise Partnerships that identify housing, land and regeneration as growth priorities Supporting local partners bidding for the Regional Growth Fund and Enterprise Zones Accelerating disposal of HCA and other public land Growing Places FundThriving communities, affordable homes
  15. 15. Our enabling role Housing supply, economic growth and jobs are all high priorities for Government but delivery will happen locally HCA working with areas to realise their ambitions to increase housing supply Using Local Investment Plans to align our work with local growth strategiesThriving communities, affordable homes
  16. 16. Enabling local partners Prioritisation Supporting partners to prioritise, including phasing of developments over time Project Supporting delivery of projects: solutions – Structuring commercial propositions – Developing innovation solutions Access a range of tools, information and advice: Hands on –Viability assessment, Delivery Partner Panel, providing data and information (eg SIGnet) –Equity investmentOur offer to local partners is focused on: Strategic and commercial advice on land disposal Supporting delivery of market and affordable housing Fostering local partnerships and enabling local authorities to take full advantage of new incentivesThriving communities, affordable homes
  17. 17. Viability DCLG Chief Planner advice refers to HCA Good Practice Note as tool for re- negotiation HCA has developed two new tools to help us support Local authorities: – Area wide viability model – Individual site viability modelThriving communities, affordable homes
  18. 18. Supporting a local approachHelping local authorities andtheir communities define Regeneration andobjectives and test solutions to Land affordablecomplex schemes housingAssembling a cocktail ofinvestment – public and private– and link to phased delivery;pump priming for project Delivery of local prioritiesdevelopmentDesigning appropriate andinnovative deliverymechanisms Specialist AligningBrokering relationships with support public funding and toolsother public land ownersThriving communities, affordable homes
  19. 19. Conclusions Our work with local partners is key to delivering Government’s objectives on localism, growth and regulation Significant current opportunities: – Affordable homes – Public land disposal – Economic assets – Enterprise Zones We can help deliver your communities’ local prioritiesThriving communities, affordable homes
  20. 20. homesandcommunities.co.ukThriving communities, affordable homes