§ Mr. ColvinTo ask the Secretary of State for the Environment what conclusions he has reached about future grant arrangements for special needs provision by housing associations.
§ Sir Charles IrvingTo ask the Secretary of State for the Environment what assessment he has made of the effect on the provision of move-on housing in rented buildings of the recently announced revenue support from new special needs schemes in other than housing action group-funded buildings; what particular consideration he has given to the implications for people with special needs requiring accommodation to live independently in the community; and if he will make a statement.
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§ Mrs. GoldingTo ask the Secretary of State for the Environment (1) when he intends to make a statement on the future funding of hostels providing special needs accommodation;
(2) if he will review his decision to exclude health authority, Department of Social Security, Home Office and other externally funded projects from entitlement to hostel deficit grant and special needs management allowance.
§ Sir George YoungNew capital and revenue grant arrangements are to be introduced from April 1991 on the basis of proposals prepared by a joint working party comprising representatives of the Department, the Housing Corporation and the National Federation of Housing Associations. The effect will be to establish a clearer and more cost-effective framework for the future funding of special needs provision by housing associations. The arrangements will, however, need to be kept under review in the light of developments on community care.
A new flat-rate special needs management allowance (SNMA) will replace the present hostel deficit grant (HDG) for new schemes from April 1991. Schemes already in receipt of HDG and eligible for SNMA will be transferred to SNMA by steps over a period of five years starting from April 1992.
The SNMA rate for 1991–92 will be £2,000 per bedspace (1989–90 prices, to be revalued to 1991–92 prices). The allowance will be available for special needs provision in self-contained as well as shared accommodation.
On the capital side, special needs schemes will from April 1991 be brought within the fixed housing association grant (HAG) arrangements which already apply to general needs schemes but will be eligible for grant at 100 per cent. of approved cost.
The Housing Corporation will be carrying out formal consultations on a new determination under the Housing Act 1988 to bring SNMA into effect from this April. It will at the same time prepare and consult on detailed guidance for associations both on SNMA and on the changes in the capital grant arrangements.
I have also considered whether SNMA should be subject to the same restrictions on eligibility as were announced for HDG by my hon. Friend, the Member for Worcestershire, South (Mr. Spicer) when he was Minister for Housing and Planning on 8 November at columns 14–15. I have concluded that these restrictions, in particular to schemes capital funded through the corporation, must in the main continue but that, subject to the availability of resources, the corporation should be able to consider for SNMA certain categories of schemes which do not require HAG. These are schemes capital funded by a charitable organisation, leased schemes and 443W schemes using existing housing association accommodation no longer required for general needs. In supporting such schemes the corporation will need to ensure that its SNMA commitments are contained within provision for current and future years. It will also wish to satisfy itself that the scheme meets the priorities established for its approved development programme and is not tied to meeting the requirements of another organisation through, for example, exclusive nomination rights.
Associations which had applications for HDG budget approval awaiting decision by the corporation at the time of the 8 November announcement will be able to re-submit under the new SNMA arrangements any of those schemes which they consider meet the SNMA eligibility criteria.