New indexation base date and updated application for funding public housing for Community Housing Providers
Published 17 Aug 22
Indexation base date
- From today all new applications for funding of public housing on a capacity basis will have indexation applied to approved Market Rent one year from the issue of a funding approval letter, and annually thereafter (including, where relevant, for a part year) until construction has been completed and service delivery commences.
- Funding approval letters for successful applications should be issued within 20 working days of receiving the completed application.
- The first annual indexation of Market Rent under the HUD Capacity Services Agreement currently occurs one year from the commencement of service delivery of new supply public housing places. This has led to Market Rent (which is assessed and determined at the time a Community Housing Provider’s application for funding is lodged and evaluated) falling out of step with movements in the private rental market over the construction period for these public housing places.
- The approved Market Rent will be recalculated and reset by HUD (with reference to the CPI Actual Rentals for Housing index in the applicable city or region) as at the Commencement Date under a Services Agreement and is adjusted annually thereafter on the anniversary of the Commencement Date in each year except where a Market Rent Review occurs (in line with current practice).
- The updated contracting framework can be viewed on our Providing public housing page.
- A new Version 4 of the Application Form and supporting financial models have been released on our Providing public housing page.
- HUD encourages all Community Housing Providers to submit applications for funding on the new Version 4.
- HUD will continue to accept applications for funding on the Version 3 Application Form until 1 October 2022. After this date only Version 4 Application Forms will be accepted.
If you are a registered Community Housing Provider, please contact your Business Development Manager or your Relationship Manager if you have any questions.
Alternatively you can send an enquiry to public_housing_panel firstname.lastname@example.org