Guidance

Rough Sleeping Accommodation Programme: Prospectus and guidance (outside of Greater London) (HTML version)

Updated 11 February 2022

Applies to England

Glossary

1. For the purposes of this prospectus, the following terms are defined as set out below:

a. The ‘Eligible Cohort’ are rough sleepers, or those with a history of rough sleeping currently in emergency accommodation (or, where there is no further need from this group due to reductions in rough sleeping, those at risk of rough sleeping and homelessness).

b. ‘Move-On’ means accommodation and support made available to occupants on the basis that they will be a pathway to settled accommodation, providing a genuine home with support that will help prepare the Eligible Cohort for fully independent housing, within 2 years where possible.

c. A ‘Council’ means a Local Housing Authority, Combined Authority or County Council.

d. A ‘Proposal’ is the overarching RSAP application led by a council which includes information on local need for and impact of RSAP homes and support, as well as information on local leadership, the strategic fit and sustainability of the Proposal and revenue requests for support services. This will include Schemes which are revenue-only or social investment (see paragraph 21).

e. A specific ‘Scheme’ is a proposed acquisition or development of a single or multiple homes, using a single delivery route listed at paragraphs 20 and 21 of the prospectus, where the landlord of RSAP homes will be a single organisation. This definition includes a programme of acquisitions where specific properties have not yet been identified, within a limited area and where the landlord will be a single organisation. Where a specific Scheme is based on a delivery route listed at paragraph 20, a separate ‘Bid’ should be submitted for each Scheme via Homes England’s Investment Management System (IMS) (see paragraph 51) in addition to a Proposal. Please note a Proposal must still be submitted, as well as an IMS Bid, for capital Schemes using one of the delivery routes listed at paragraph 20.

f. ‘Co-production’ refers to the process whereby councils develop and refine Proposals and Bids with support from DLUHC Advisers and Homes England’s Affordable Housing Growth Team.

Introduction and programme overview

2. The Department for Levelling Up, Housing and Communities (DLUHC) invites councils, working closely with delivery partners and local stakeholders in health, social care, probation services, the voluntary and charities sector, service users and Registered Providers of social housing, to submit Proposals and Bids for future years of the Rough Sleeping Accommodation Programme (RSAP).

3. This prospectus and guidance applies to local areas located in England outside of Greater London. For areas located within Greater London, the GLA has published guidance: GLA prospectus and associated guidance.

4. On 29 October 2020, we announced allocations to local partners to deliver the first year of RSAP. More than 3,300 new Move-On homes for rough sleepers across the country were approved, backed by Government investment of more than £150 million.

5. RSAP’s objective is to provide Move-On homes, available as long-term assets, and accompanying support services to the Eligible Cohort to achieve a sustainable reduction in rough sleeping. RSAP is part of a range of measures to meet the Government’s manifesto commitment to end rough sleeping by the end of this parliament. Proposals for RSAP funding must demonstrate how RSAP Schemes will contribute to local plans to end rough sleeping, complementing other rough sleeping programmes, such as street-based responses funded through the Rough Sleeping Initiative.

6. Thus far we have allocated over £350 million in funding to Local Authorities and Registered Providers to provide over 5,700 homes across England. The majority of the capital funding remaining is available in financial year 2022/23, with a small amount available in 2023/24. Revenue funding for support services (and in some circumstances procuring units through shorter-term leasing) is available in financial years 2022/23, 2023/24 and funding will be available in 2024/25, see paragraph below. Please note that all grant funded units must be completed by 31 March 2024, and schemes that are deliverable earlier will be preferred.

7. During the 2021 Spending Review, DLUHC secured a revenue budget of £34.1 million in financial year 2024/25, to continue to provide support to the RSAP units and to ensure the capital assets continue to be available for those who are sleeping rough with support needs. Proposals and Schemes already approved for funding will therefore receive revenue funding in 2024/25, however DLUHC and Homes England will undertake a full review of each Scheme to ensure it is being provided to Schemes that continue to need it. Support funding will also be available in 2024/25 for schemes approved following this further bidding cycle, subject to the same process. We will provide further information on this in due course.

8. Alongside this funding, we are also making available the expertise of DLUHC’s Advisers to Co-produce RSAP Proposals, aided by Homes England’s Affordable Housing Growth Team to Co-produce Bids. This support will vary depending on the scale of need in a local area.

9. Any queries relating to this prospectus or the programme more generally should be directed to your DLUHC Adviser or RSAP@levellingup.gov.uk.

What are we seeking to fund?

10. RSAP’s objective is to provide Move-On homes, available as long-term assets, and accompanying support services to the Eligible Cohort to achieve a sustainable reduction in rough sleeping. This section sets out interventions that are in scope to achieve this objective and the parameters of the programme.

11. RSAP includes funding for capital and revenue-based accommodation Schemes, as well as funding for support services to enable individuals accommodated in these units to move on from rough sleeping.

12. Applicants must ensure that they comply with the public sector equalities duty under s.149 of the Equality Act 2010. In particular, they should consider whether there is the need for specialist provision for specific groups. Applicants must ensure that there is a process for undertaking needs assessments of all individuals accessing RSAP homes, and that accommodation provision is informed by an individual’s health and care needs.

13. In order to be successful in their application for RSAP funding, councils and their partners must also comply with the requirements set out in the ‘How the Fund works?’ section below.

Move-On homes

14. Most of the capital funding remaining is available in early 2022/23 with a small amount available in 2023/24. A small amount of revenue funding for leasing in limited circumstances is also available in financial years, 2022/23 and 2023/24.

15. RSAP aims to deliver long-term assets, in the form Move-On homes, to support the Eligible Cohort. Proposals and Bids which clearly demonstrate how they will support this objective will be prioritised for funding. Consequently, we will prioritise for funding Schemes which procure freehold or long-term leasehold interests in properties, rather than short-term leases.

16. Whilst we recommend that applicants consider the full breadth of opportunities in their local area, significant preference will be given to Schemes that provide additional homes, thereby growing the sector. Our strong preference is that no more than approximately 10% of housing units brought forward under RSAP should come from existing social housing stock that is currently in use or properties in which historic grant has been invested. Such Schemes will be considered by exception and must be highlighted to your Homes England Adviser, DLUHC Adviser or via RSAP@levellingup.gov.uk at the earliest possible opportunity.

17. We encourage, and will prioritise for funding, Proposals and Bids which set out realistic, well-developed plans to deliver as quickly as possible, although indicative Schemes will also be considered. Applicants will be required to set out in their submissions milestone dates for acquisition, start on site and practical completion, and Proposals and Bids which set out detailed, realistic delivery plans for completion in year will be prioritised for funding. Applicants must set out in which financial year practical completion will occur, with delivery early in financial year 2022/23 prioritised for funding. Schemes must be practically completed before 31 March of the relevant financial year stated for delivery in the Proposal and/or Bid. Where a proposed Scheme is of a particularly complex nature and will not be deliverable to these parameters, please contact your Homes England Adviser, DLUHC Adviser or email RSAP@levellingup.gov.uk at the earliest possible opportunity.

18. As set out in more detail at paragraphs 40 to 46, Proposals and Bids must be developed in collaboration with local stakeholders and teams across councils. In particular, we will look for evidence of close collaboration with council development teams and the Local Planning Authority, including information about any requisite planning application, or pre-application engagement, and the proposed timeline for obtaining planning approval. There should be evidence of consideration of planning approval in the design of Proposals and Bids and an assessment of the likelihood of approval.

19. Move-On homes should be delivered within the local areas unless there is explicit agreement from the receiving area.

20. Proposals must explain how Move-On homes will match the needs of the local Eligible Cohort and support them into sustainable accommodation. As set out in more detail at paragraphs 40 to 46, collaboration is a requirement of developing an RSAP Proposal and will ensure Move-On homes are appropriate to needs. In most circumstances, dispersed, self-contained accommodation, clustered in small groups for management purposes, will offer the best outcomes and will be prioritised for funding. In some circumstances, alternative types of Move-On accommodation may be appropriate, for instance, shared accommodation may be necessary where self-contained accommodation is not available or affordable. Where shared accommodation is proposed, it is essential that the council team responsible for HMO standards is involved in developing the Proposal and Bids and statutory HMO standards are complied with (and this compliance is clearly set out in the Proposal and relevant Bid). Where shared accommodation is proposed, we will strongly favour Schemes which include en-suite bathroom facilities. The level of experience evidenced by the landlord in delivering and managing tenancies in shared accommodation will also be assessed and should be set out in the Proposal and relevant Bid.

21. The following delivery routes are eligible under the programme and will be assessed as set out in paragraphs 38(b), 51, 52 and 56. Payment will be made as set out at paragraphs 58, 59 and 61. More detailed information on these routes is available in Homes England’s Capital Funding Guide:

a) Purchase and repair of properties, either as freehold or on a long lease, where repairs may be required to bring the properties up to good standard to be let. Schemes delivered through this route must have a life expectancy of 30 years minimum.

b) Existing Satisfactory. Acquisition of a second-hand existing dwelling, or dwellings, on the open market, which are already of a standard and condition suitable for affordable housing letting, after an inspection by a suitably experienced or qualified person. Works necessary for the scheme to be made fit for purposes must not exceed £1,500. Schemes delivered through this route must have a life expectancy of 30 years minimum.

c) Refurbishment and repurposing of existing stock. This is subject to additional requirements set out at paragraph 15. This could include Schemes such as the conversion of former sheltered housing into Move-On homes. Schemes where the existing social housing stock can be considered ‘moribund’ can also be considered for funding under this procurement route as creating additional Move-On homes, for example where stock is:

i. impossible or hard to let, and has suffered high levels of turnover and long term voids in recent months and is not occupied

ii. no longer fit for the purpose for which it was developed, e.g older persons bedsits with shared facilities

iii. acting as an economic drain on the neighbourhood by way of attracting anti-social or criminal behaviour, blight or poor condition due to the nature of the property

iv. identified as part of an asset management plan for repurposing, demolition or disposal

v. uneconomic to repair or bring to lettable standard via planned maintenance cyclical investment

Schemes delivered through this route must have a life expectancy of 30 years minimum.

d) Lease and repair: this may be a suitable option for providers seeking capital grant to enter into long term lease arrangements with private owners and bring the properties up to appropriate standard. The level of capital grant requested will be commensurate with the lease length proposed, and longer leases will be prioritised for investment in line with the objectives of the programme. The minimum lease length for this procurement route is 5 years, and leases of 30 years duration will be prioritised for funding. Leases less than 5 years long should be submitted as revenue-only schemes via the private sector leasing route set out at paragraph 21.

e) Development of new build properties. New build properties can be developed or acquired as set out in Homes England’s Capital Funding Guide: Acquisition and Works; New Build Works Only; Off the Shelf (and Existing Satisfactory); and Package Deal (Including Land). New build Schemes need to have a minimum life expectancy of 60 years.

22. The following are also eligible under the programme but will be assessed as set out at paragraphs 38(a), 50, 52 and 55 and payment made as set out at paragraphs 60 and 61. These delivery routes will be assessed as part of the Proposal. Separate Bids do not have to be submitted via IMS for these delivery routes.

a) Private Sector Leasing. An applicant enters into a contract with a private sector landlord agreeing to rent homes over multiple years. Where private sector leasing models are utilised, we expect them to be secured for a minimum of 3 years. While we realise that private sector leasing models may need to be part of a local solution, our ambition is to secure a long-term national asset. Funding priority will therefore be given to Schemes that match our ambition and that offer models of long-term stock acquisition. Leases lasting 5 years or more should be submitted as capital lease and repair schemes as set out at paragraph 20, and an IMS Bid should be submitted in respect of them as well as a Proposal

b) Contribution towards social investment programmes that deliver the aims of RSAP. This applies only to councils who should consider blending grant with their own sources of funding for onward investment to deliver housing. Councils should explore this approach with their DLUHC Adviser before continuing. Where investment is made using grant monies to capitalise an investment vehicle, subsequent reinvestment of the principal repaid from the returns following investment of the grant monies must be used to deliver further investments that provide Move-On accommodation available for a minimum of 30 years, on an evergreen basis until such funds might be exhausted.

Tenancies for rough sleepers

23. Each home must be available for the Eligible Cohort. This requirement is also applicable for re-lets. Therefore, applicants must outline in their RSAP submissions how nominations to properties will be made and how RSAP units will be let accordingly. The process for nominating individuals to RSAP units, and types of tenancy (or exceptionally, with permission from DLUHC, periodic licences) that are acceptable under RSAP, are set out in the Guidance on letting accommodation funded through RSAP.

24. RSAP’s objective is to deliver Move-On homes rather than long-term supported housing. To ensure RSAP homes remain available to support the Eligible Cohort, tenancies should be awarded for a maximum duration of two years (although tenancies of a shorter duration may be appropriate as set out in the ‘Guidance on letting accommodation funded through RSAP’).

25. There may be exceptions to this two-year limit made on a case-by-case basis when, as part of the regular assessment of an individual’s needs, it is determined by the relevant local services that the length of tenancy must be extended to address an individual’s needs. Similarly, there will be circumstances where it is determined at the commencement of the tenancy that longer-term housing with intensive support is needed to meet an individual’s needs, in keeping with the housing first model. However, in all circumstances, the initial tenancy should not exceed a maximum of 3 years duration.

26. Applicants may wish to have the potential to offer a lifetime tenancy of the same property at the end of a fixed term, particularly where a former rough sleeper is settled and engaged with local services. If it is intended that any property that has received capital grant funding under RSAP continues to accommodate an individual beyond 3 years, permission will be required from DLUHC and Homes England as set out at paragraph 67.

27. Rent must be set at Affordable or Social Rent levels. More information can be found in the Regulator of Social Housing’s Rent Standard and in Homes England’s Capital Funding Guide. The relevant Council team must be consulted when determining the appropriate level of rent to charge for RSAP units. Proposals will need to evidence that rents are set at a level appropriate to tenants’ needs that allow tenants the best chance of sustaining their tenancies.

28. Homes for Affordable Rent are made available at a rent level of up to 80% of gross market rents (inclusive of service charges). Exceptionally, with the agreement of Homes England and DLUHC, rents may exceed 80% of market levels in areas where the Affordable Rent would otherwise be lower than the target rent for the property. The target rent therefore constitutes a ‘floor’ for the rent to be charged. However, providers will be required to document such decisions together with supporting evidence for audit purposes. The method for tenants to cover rent must also be detailed in the RSAP submission. Social investment funded projects can set rents based on Local Housing Allowance levels.

29. Subject to paragraph 27, service charges may be levied in addition to Social or Affordable Rent. However, they should be reasonable and proportionate to the management services required in relation to the property.

30. The conditions attached to tenancy agreements should be considered carefully and designed to support the needs of the Eligible Cohort. For example, pets should not be prohibited by the terms of the lease.

31. For a Scheme delivered via one of the routes listed at paragraph 20 above, where grant funding is paid by Homes England, an organisation who is leading a specific Bid and will be the end landlord of RSAP homes must generally be a Registered Provider who is an Investment Partner of Homes England (see paragraph 58). In all instances where Homes England are making payment, the landlord of RSAP homes should be a Registered Provider of social housing and a qualified Homes England Investment Partner. Before completed RSAP homes are made available for rent, the landlord must be a Registered Provider. Delivery structures involving unregistered providers, where the unregistered provider must be an Investment Partner of Homes England, for the provision of RSAP homes can be considered by Homes England, where: 1) the unregistered provider successfully applies to be a Registered Provider prior to first letting; or 2) completed RSAP homes are transferred to an identified Registered Provider prior to first letting. Homes England reserves the right to make additional due diligence checks and may request further information ahead of making any grant payments. For further information, see paragraphs 58 to 64.

32. Information on applying to be a Registered Provider of social housing is available in the regulator’s published guidance for new entrants applying for registration as a provider of social housing. To apply for Homes England Investment Partner status, please see the AHP 21-26 Investment Partner Qualification forms published within the Homes England Capital Funding Guide. Bidders who are not currently Investment Partners are asked to submit an application for Investment Partner status at the point at which an allocation is confirmed to avoid any abortive work.

33. Where it is proposed a Scheme is delivered via a revenue-only route (see paragraph 21), it will be prioritised for funding by DLUHC where a Registered Provider will be the landlord of the homes when they are made available for rent. Delivery structures involving unregistered providers in the delivery of RSAP homes via both capital and revenue routes, or where it is proposed an unregistered provider will act as landlord of RSAP homes, can be considered by DLUHC in exceptional circumstances.

Support services

34. Revenue funding for support services is also available in financial years 2022/23, 2023/24 and in 2024/25 for schemes approved following this further bidding cycle, subject to a full review by DLUHC and Homes England.

35. In line with RSAP’s objective to deliver additional long-term assets in the form Move-On homes, we will prioritise requests for funding for support services which accompany and facilitate the creation of additional Move-On homes. We will also consider Proposals which relate to existing social housing stock that is currently in use in a small number of cases (see paragraph 15). Support funding-only Proposals can also be made, but the applicant must make clear that the investment would bring into use units that would otherwise be unused. Support funding must be attached to specific units of accommodation.

36. In order to determine the appropriate model of support to enable individuals to live independently, applicants and their partners should consider how the people they are proposing to support through RSAP Move-On homes fit across three broad categories:

a) High/complex/multiple needs: long-term rough sleepers, and those requiring extensive support through housing first, with high-level or on-site management and support. We would typically expect 1 full-time employee for every 5-8 placements for this type of support.

b) Medium needs: people who have a significant or repeat history of rough sleeping and/or have health, care and support needs best met through a housing-led placement with sufficient support. We would typically expect 1 full-time employee for every 8-15 medium-need placements.

c) Low support needs: people who are newly homeless and/or have less significant health, care or support needs and can be assisted through low-support accommodation options, or access to housing and short-term visiting support. A staff ratio of 1 full-time employee to 15-25 placements may be appropriate to this cohort.

37. As set out in more detail at paragraphs 40 to 46 below, collaboration is a requirement when developing RSAP Proposals and Schemes. In particular, so far as compatible with the requirements set out in paragraph 44, development of support services should include collaboration with prospective support providers in the development of Proposals, and where possible it should be clearly stated which organisation will deliver support services. Proposals should detail links with relevant local services and amenities. To ensure safeguarding needs are addressed, applicants will need to work collaboratively with relevant health, care and support commissioners and providers, including in the receiving council area in situations where people are accommodated out of borough.

38. Where a Proposal does not include a request for revenue funding for support, applicants must make it clear how support for individuals is to be provided.

How the fund works

Who can submit Proposals and Bids?

39. There are two parts to an application for RSAP funding – Proposals and Bids.

a) Proposals must be submitted by a council. Where a combined authority or county council intends to submit a Proposal, they must have collaborated in the development of the Proposal with the relevant Local Housing Authorities. We encourage sub-regional joint Proposals, led by a single council on behalf of a group of councils, as a means of coordinating the distribution of Move-On homes across a wider area to meet local need. Additionally, joint Proposals could be appropriate in areas where there are small numbers of rough sleepers requiring Move-On homes to facilitate the pooling of resources.

b) In addition to a Proposal, a separate Bid will need to be submitted for each Scheme (using one of the routes listed at paragraph 20) via IMS (see paragraph 51). Where a separate organisation (such as a Registered Provider of social housing) will lead the delivery of such a Scheme and be the landlord of the homes, that organisation should submit the relevant IMS Bid in collaboration and agreement with the council leading the overarching Proposal. This may mean there are several Bids for separate capital Schemes led by different delivery partners to deliver a single overall Proposal led by a council. Please note a Proposal must still be submitted to RSAP@levellingup.gov.uk, as well as an IMS Bid, for capital Schemes using one of the delivery routes listed at paragraph 20.

40. As set out below, councils must develop their Proposals in collaboration with a wide range of local partners and stakeholders. Other types of organisations, such Registered Providers of social housing, should contact relevant councils in order to collaborate in the development of local RSAP Proposals and Bids.

Developing Proposals and Bids

41. Development of RSAP Proposals should be led and driven forward by the council which is leading development of the Proposal. Teams across councils must also be actively engaged in collaboratively developing Proposals and Bids, including housing options, development teams, health protection teams, social care commissioners and planning. Where a separate organisation (such as a Registered Providers of social housing) will lead the Bid for a specific Scheme, that organisation will also have a crucial role driving forward development of that Bid as part of the overall Proposal.

42. Proposals and Bids must also be developed in collaboration with relevant local stakeholders and partners, including Registered Providers of social housing, support providers, voluntary and charity organisations, health and social care commissioners and providers (including, where relevant to the needs of the local cohort, in primary and secondary care, mental health and substance misuse) and probation services. The lead council should work to identify local stakeholders in each of these sectors and engage them in the process developing Proposals and Bids, ideally through a multi-disciplinary team approach.

43. RSAP is designed to complement other programmes aimed at preventing or reducing homelessness and rough sleeping. It is therefore vital that councils take an overarching strategic view when developing their Proposals, considering carefully how RSAP provision is designed to interact with and improve the local system of homelessness and rough sleeping services and form part of the local housing pathway. Councils must set out clearly in their Proposals how the proposed Move-On homes and support will complement other relevant local initiatives. In particular, councils should consider how Move-On homes could support individuals to move on from more specialist provision or support emergency street-based responses funded through the Rough Sleeping Initiative. Submissions should be developed in collaboration with the commissioners and providers of other services that are relevant to the local cohort. This could include drug and alcohol treatment services, NHS and adult social care commissioners regarding local ‘out of hospital care’ models and probation services.

44. Proposals should be informed by an assessment of the health, care and support needs, including disability, of the individuals who will be accommodated in RSAP units. This includes individuals’ clinical vulnerability to severe illness from COVID-19, and ensuring that homes are appropriate to these needs, for example self-contained accommodation. Where individuals to be accommodated in RSAP homes are being moved on from emergency COVID-19 accommodation, Proposals should recognise the need for continuity of care for those whose needs are already being met so that health gains made are not lost. Where relevant, an assessment under the Care Act 2014 should be made in collaboration with council adult social care and NHS commissioners.

45. It will be the responsibility of councils to establish that they have performed due diligence to satisfy themselves of the standing of partners to their Proposal. Where an applicant plans to commission a local partner to deliver RSAP support services, it must take steps to obtain best value-for-money and meet all relevant legal requirements in procuring such support. Whilst a single-tender process is generally not permitted, where it is judged permissible in line with the law and contractual requirements, records must be maintained of the rationale for the direct award, such as the specialist nature of the service. Additionally, applicants must comply with the relevant counter-fraud requirements.

46. Applicants will need to clearly set out how they have meaningfully engaged with local partners and stakeholders in the collaborative development of Proposals, including listing named contacts for each team or organisation involved. It is vital that applicants collaborate with the stakeholders listed above from the earliest possible point in the development of Proposals, including ensuring all relevant stakeholders are invited to Co-production meetings with DLUHC and Homes England Advisers.

47. Service users and those with lived experience of rough sleeping should be meaningfully involved in the collaborative development of Proposals and Bids where possible. Proposals which are developed with service users are likely to address this cohort’s needs in a more effective and sustainable manner, and consequently are likely to score more highly during assessment and be prioritised for funding. We recognise that in some circumstances it will not be possible or appropriate to involve service users.

Co-production

48. Areas will receive support from DLUHC Advisers to Co-produce their Proposals and Bids prior to submission (and subsequent to submission if a Scheme meets the minimum standard but doesn’t score highly enough on assessment to be awarded funding in that bidding round). The level of support will vary depending on geographical location and the scale of need in a local area. DLUHC Advisers will collaborate with councils and their local partners to ensure that the development of RSAP Proposals reflects local need and gives confidence that the programme objectives can be achieved. They will also be able to advise whether the Proposal and Bids are within scope for this programme and provide guidance on requests for revenue funding for support services and accommodation procurement routes based on leasing.

49. Homes England’s Affordable Housing Growth Team may offer support developing the accommodation-aspect of Schemes where units will be delivered using capital funding, advising on the associated capital requirements. This support will be focussed on Bids in areas where pressures are the most acute.

50. Co-production with DLUHC Advisers and/or Homes England is not a guarantee that a Proposal and Bids will be awarded funding. Proposals and Bids will be assessed by a separate panel and ministers as set out at paragraphs 54 to 56.

How to submit a Proposal and Bids

51. Proposals must be submitted by the lead council on behalf of the partners who have collaboratively developed the Proposal. The Proposal should contain information on overall local need for and impact of RSAP homes and support, as well as information on local leadership, and the strategic fit and sustainability of the Proposal. It should also contain information on revenue requests for support services attached to capital Schemes, and specific revenue-only and social investment Schemes (see paragraph 21). A template version of the Proposal application form has been uploaded to gov.uk. Completed Proposals should be emailed to RSAP@levellingup.gov.uk.

52. For Proposals intending to utilise one or more of the capital delivery routes at paragraph 20, a Bid for each Scheme should be submitted via IMS. Bidders who already have Homes England IMS access can bid under their existing accounts. New bidders are required to apply for IMS access by emailing the Homes England Service Desk and further information is available in the IMS application pack for new bidders and links to guidance. New bidders are encouraged to submit their application for IMS access as soon as possible. An outline of the Bid information required to be submitted in IMS is available at Appendix 1. As an IMS Bid is required for each capital Scheme within a local Proposal, there may be multiple IMS Bids related to a single Proposal for a local area. If a separate organisation (such as a Registered Providers of social housing) will lead the delivery of a specific Scheme and be the landlord of the homes, that organisation should complete the relevant IMS Bid in collaboration and agreement with the council developing the overarching local Proposal. Please note a Proposal must still be submitted to RSAP@levellingup.gov.uk, as well as an IMS Bid, for capital Schemes using one of the delivery routes listed at paragraph 20.

53. Bids for each Scheme should be submitted via IMS by midday, and the overarching Proposal emailed to RSAP@levellingup.gov.uk by midday, on 13 April 2022. Proposals and Bids will not be accepted after this time.

54. Inside Greater London, applicants should send their submissions in accordance with the GLA prospectus and associated guidance.

Assessment process and criteria

55. Once Proposals and Bids for specific Schemes have been submitted, they will be assessed. Allocation decisions will be made on each specific Scheme separately. This may lead to applicants receiving an allocation for some of their Schemes and having others rejected. Where a scheme meets the minimum standard, depending on Proposal and Bid’s score during assessment, the Scheme may be approved unamended or applicants may receive feedback and be asked to make amendments. Recommended Schemes will be submitted to ministers for approval before being communicated to applicants.

56. The following criteria will be assessed in the Proposal for each Scheme:

a) The local need for & impact of RSAP Proposals on the Eligible Cohort, and on the wider local homelessness and housing system. Data to determine need will be taken from the Monthly Rough Sleeping Survey Data from local authority DELTA returns. This includes the number of people in emergency accommodation and the number of people rough sleeping in the area. Therefore, it is a requirement of the application process for relevant councils to have submitted up-to-date data through this portal. This criterion will also take into account the quality of accommodation design, the location of homes and their integration with relevant services and amenities, the quality and appropriateness of support proposed, and any evidence of meaningful collaboration with service users or those with lived experience in the design of Proposals.

b) Leadership, strategic fit and sustainability. DLUHC will consider evidence of effective and on-going leadership in local systems, including evidence of meaningful collaboration with local stakeholders (including named contacts for each team or organisation involved in developing Proposals) and a continuing commitment to learning and sharing best practice to drive service improvement. Proposals must clearly demonstrate how they will meet the objectives of RSAP, including clearly setting out the duration of the provision including support. DLUHC will assess details of strategies to maintain the provision for the intended Eligible Cohort as part of our goal in establishing a long-term “national asset”. Additionally, DLUHC will look for evidence of consideration of the long-term effects of the additional funding on delivering a sustained reduction in rough sleeping.

57. The following criteria will be assessed for each Bid submitted via IMS, and in Proposals for each individual revenue-only and social investment Scheme, as well as associated revenue requests for support services for all proposed Schemes:

a) Deliverability. We are looking for a credible but ambitious timetable and project management plan to bring forward Move-On homes and support services, including milestone dates for acquisition, start on site and practical completion and clearly defined roles for delivery partners. Schemes delivering in financial year 2022/23 will be prioritised for funding. Whilst indicative Schemes will be considered, more fully developed Schemes will score more highly against this criterion. Where homes have been identified and negotiations with accommodation providers and delivery partners are at an advanced stage, a Scheme is likely to receive a higher deliverability score. We will also assess compliance with relevant statutory and regulatory requirements and guidance, including (where applicable) the requirements of Homes England’s Capital Funding Guide. Finally, we will consider councils’ and Registered Providers’ record of delivery (if applicable) for 2020/21 and 2021/22 Schemes.

b) Value for money. A demonstration of maximised delivery and outcomes for the level of investment, including investment leveraged from other sources. Proposals and Bids should only relate to costs that cannot be met through rental income or council-owned capital options. Account will be taken of the number of units procured for the funding requested, and the local property market. There is no set level of capital or revenue funding per unit, reflecting the understanding that different forms of housing and levels of support may require different levels of government funding. However, local areas will be expected to demonstrate that they have taken steps to maximise value for money and utilise other sources of funding, for example as a result of joint working with local partners, use of capital receipts and borrowing to lessen reliance on central government funding. Some examples can be seen in Appendix 2.

58. A checklist for applicants and their delivery partners when developing RSAP Proposals and Bids can be seen at Appendix 3.

Payment

59. For Schemes (listed at paragraph 20 above) which request capital only or capital and revenue funding, where the Scheme will be delivered by an existing Registered Provider who will be the landlord of the RSAP homes (or delivered by an unregistered provider who is an Investment Partner of Homes England who successfully applies to be a Registered Provider prior to first letting), all capital and revenue payments will be made under Section 19 of the Housing and Regeneration Act 2008. Section 19 payments will be issued by Homes England to the lead organisation for a particular Bid. Payment will be contingent on the organisation who will be the landlord of RSAP tenancies entering a contract with Homes England. Where an unregistered provider who is an Investment Partner of Homes England transfers grant-funded homes to an identified Registered Provider prior to first letting, capital payments may be paid to the unregistered provider by Homes England via section 19, although revenue payments will be paid via Section 31 of the Local Government Act 2003 as set out at paragraph 60 below.

60. In some instances, the landlord a particular RSAP Scheme may be a separate organisation to the council leading the Proposal (for example, a Registered Provider who was involved in developing a particular Bid for a Scheme). In such circumstances, if the lead council proposes to retain responsibility to deliver support services (or proposes to commission, in accordance with local contract procedure rules, a separate organisation to do so, such as a charity), the lead council can specify in their Proposal if they would prefer revenue payments to be paid directly to them (rather than to the landlord of the Scheme). Where the lead council indicates such a preference, revenue payments will be paid directly to them under Section 31 of the Local Government Act 2003. Homes England would continue to pay capital funding to the landlord of the Scheme (provided they are a Registered Provider and Investment Partner of Homes England) under Section 19.

61. For revenue-only Schemes, social investment Schemes (listed at paragraph 21) and/or where an unregistered provider will deliver and/or be the landlord for the Scheme (except in the circumstances described in paragraph 58 above), payments will be made by DLUHC via Section 31 grant to the relevant council which led the Proposal. Grant payments will be subject to grant conditions.

RSAP payments

Capital schemes listed at paragraph 20

Organisation leading a Bid for a specific Scheme	End landlord of RSAP homes	Capital payment	Revenue payment for support services	Revenue payment for leasing
Registered Provider	Registered Provider who is a qualified Homes England Investment Partner.	S.19	S.19 (unless lead council specifies s.31 – see para. 59)	N.A.
Unregistered provider who is an Investment Partner of Homes England	Lead organisation successfully applies to be a Registered Provider and Homes England Investment Partner prior to first letting	S.19	S.19 (unless lead council specifies s.31 – see para. 59)	N.A.
Unregistered provider who is an Investment Partner of Homes England	Lead organisation transfers homes to a Registered Provider who is a Homes England Investment Partner prior to first letting	S.19	S.31	N.A.
Unregistered provider	Unregistered provider	S.31	S.31	N.A.

Revenue-only scheme or social investment scheme listed at paragraph 21

Organisation leading a Bid for a specific Scheme	End landlord of RSAP homes	Capital payment	Revenue payment for support services	Revenue payment for leasing
Registered Provider	Registered Provider	S.31	S.31	S.31
Unregistered provider	Unregistered provider	S.31	S.31	S.31

62. Capital payments will be made in three instalments: 45% on acquisition; a further 50% on start on site; and a final 5% on practical completion. For schemes using the existing satisfactory delivery route set out at paragraph 20(b), capital will be paid in a single tranche at the acquisition stage. Revenue payments, including those linked to capital Bids, will be made in quarterly instalments. Funding is available until 31 March 2024. Payment will be contingent on satisfactory performance against either the terms of the contract with Homes England and Section 31 grant conditions and the objectives of the programme.

63. We recognise the importance of long-term certainty for this programme, which is why DLUHC will commit revenue funding for support costs for successful Schemes until the end of the financial year 2023/24. We have now secured budget for revenue funding in 2024/25 and will make a decision on which schemes will receive this funding at a later date.

64. We expect local needs to change over time, including the numbers, characteristics and support needs of the Eligible Cohort. Future funding for support costs will be subject to future spending rounds and local prioritisation, and in line with national and local plans for tackling homelessness and rough sleeping. Should the needs of your local cohort, or prioritisation within and funding of local homelessness strategies change significantly, you should discuss with DLUHC how best to continue to use assets delivered through this programme to meet the needs of the Eligible Cohort (see paragraphs 66 and 67).

65. The GLA will administer payments in London. Details can be found in the GLA’s prospectus and guidance for the Mayor’s Off the Streets Fund.

Delivery, monitoring and amending successful Proposals and Bids

66. Delivery of successful Proposals and Bids will be monitored and overseen against the deliverables, timetable and project management plan set out in the original Proposal and Bids (as amended in agreement with DLUHC and Homes England post-submission). Payment is contingent on continuing engagement with monitoring and evaluation activities.

67. Where a Scheme is approved and an applicant subsequently wishes to modify the Scheme, they should contact their relevant Homes England or DLUHC Adviser or RSAP@levellingup.gov.uk. Any variance to a Scheme is subject to approval.

68. If an applicant wishes to use units funded via this programme for a purpose other than accommodating the Eligible Cohort, or not in accordance with the parameters set out in this prospectus, a Replacement Agreement will need to be agreed between the lead council (and the organisation who will be the landlord of RSAP tenancies if they are different), DLUHC and Homes England. This will determine the parameters for recycling capital funding into an alternative, equivalent property for Move-On homes, or for repaying the capital grant funding received. Such an agreement will be by exception. Where an applicant intends to request such an agreement, it must be highlighted to your Homes England Adviser, DLUHC Adviser or via RSAP@levellingup.gov.uk at the earliest possible opportunity.

Appendix 1: IMS Bid application form information

1. Bids will need to be submitted as set out at paragraph 51.

2. For Schemes intending to utilise one or more of the delivery routes at paragraph 20, a separate Bid should be submitted for each capital Scheme via IMS.

3. Bidders will be expected to provide the following information in IMS:

• details of the bidding organisation, including who will be the landlord of the finished properties and (if different) who will manage the properties, and details of site ownership

• scheme type (new build or refurbishment)

• where available, Scheme location details (including postcode and X-Y co-ordinates)

• planning stage reached (for example planning application submitted/outline planning achieved/full planning achieved)

• tender for works contract stage reached

• land ownership status

• client groups to be housed

• breakdown of total scheme costs, and the cost contributions going towards this (e.g. contributions from providers own resources, borrowing, and any sources of other public funding)

• proposed rent type and amount to be charged

• forecast scheme delivery dates

• whilst these will be assessed in the Proposal (see paragraph 50 and Appendix 1), for context, revenue requirement for Tenancy Support Costs to include:

  • amount required
  • length of support provided
  • whether this is to be match-funded or support by other revenue streams

Additional information requirements

4. Additional information, covering the areas listed below should also be submitted in IMS as part of the bid.

Scheme proposal outline

A brief outline of the RSAP bid proposal, including details of how the intended development will contribute towards achieving the aims of the programme as set out in this guidance.

Sustainability statement

Whilst sustainability will be assessed in the Proposal (see paragraph 50 and Appendix 1), for context, a sustainability statement to include:

• a description of how the proposed accommodation meets locally identified needs, complements existing services and meet the needs of the relevant client groups
• routes into the accommodation and the move on pathway
• a description of the level and type of care and/or support to be provided and links with local services and amenities
• how the scheme will it respond to the recent public health guidance following the Covid 19 pandemic?
• whether revenue funding is needed for the intended operation of the accommodation, above what is requested in this bid, and has this been identified/secured?
• a description of the duration of the provision (including support), and strategies to maintain the provision for the intended cohort as part of DLUHC’s goal in establishing a “national asset” for people rough sleeping, at risk of rough sleeping or acute homelessness, including the forward strategy for revenue funding beyond the life of NSAP.
• what is the exit plan or alternative use for the building should commissioning priorities change in future?

Design statement

A design statement to include:

• a description of the proposed scheme design to show how it will help meet the programme aims and the needs of the intended client group, showing consideration of how the built environment can support / promote recovery
• (where relevant) a description of any modern methods of construction and/or modular provision to be utilised in the scheme, including how this will be consistent with industry standards (e.g. NHBC Accepts and/or BOPAS accreditation)
• if the proposal is for shared accommodation, rather than self-contained, a business case for this, explaining how risk will be managed.

Appendix 2: Examples of Additional Sources of Capital Funding

1. Given the current economic circumstances and the need for rapid deployment, councils and Registered Providers are advised to discuss options regarding wider local funding options to meet part of the capital costs with DLUHC and Homes England Advisers as part of the Co-production process.

2. Councils should also consider any existing capital funding streams available across the authority including:

a) Capital Receipts:

i. Section 106 commuted sum receipts. A commuted sum can be a financial payment by a housing developer to a council broadly equivalent in value in lieu of delivering affordable housing on a specific development and subsequently to be used to deliver affordable housing on an alternative site. We would encourage homeless lead officers to discuss with council planning and development colleagues whether commuted sums held by that authority are available for use on delivering permanent affordable housing options for rough sleepers.

ii. 2002 Regulatory Reform Order (Housing Assistance). This gives local housing authorities discretionary powers to provide financial assistance, directly or indirectly to acquire, adapt, repair, improve, demolish or construct private housing accommodation. The key condition is that housing authorities set out the scope of the interventions that can be made in their local Private Sector Housing Assistance Policy. The Disabled Facilities Grant (DFG) can form part of a council’s RRO policy, and are mandatory means-tested grant designed to help create an accessible living environment for disabled people through the provision of home adaptations. Some rough sleepers may be physically disabled or have other life affecting conditions, and once a homeless person or rough sleeper has secured a fixed abode, where necessary they can apply for a DFG to adapt their home to help them to live independently and safely.

iii. It is not permissible to use Right to Buy receipts in combination with RSAP capital grant funding. Ministers intend that the Right to Buy one-for-one replacement programme levers in new money. To allow resources to be levered in that were funded by RSAP grant from Homes England or DLUHC would undermine that intention.

iv. However, it is permissible to use Right to Buy receipts in combination with RSAP revenue grant funding for support services. Consequently, Right to Buy receipts could be used to deliver homes alongside a RSAP revenue-only bid for support (see paragraph 34).

b) Borrowing Capital. Councils can borrow from government at favourable rates.

i. The Public Works Loans Board lending facility is operated by the UK Debt Management Office on behalf of HM Treasury and provides loans to council, and other specified bodies, from the National Loans Fund, operating within a policy framework set by HM Treasury. This borrowing is for capital projects. See more information.

ii. All local housing authorities are eligible for a Housing Revenue Account which can facilitate borrowing capital, including borrowing against expected rental income (in line with the Prudential Code). See more information.

Appendix 3: Checklist for developing RSAP Proposals and Bids

This is a non-exhaustive checklist to assist lead councils and their delivery partners to develop Proposals and Bids. Actions in italics are not essential, but where there is evidence a bidder has completed them satisfactorily, their submission will be prioritised for funding.

Have you:

• (lead council) submitted an RSAP Proposal?
• (where applicable, lead council or delivery partner leading development of a Scheme listed at paragraph 20) submitted a Bid relating to each capital Scheme via IMS?

Local need & impact

• submitted rough sleeping data via the monthly DELTA return?
• considered the needs of the local Eligible Cohort in the design of accommodation (including meaningful engagement with service users or those with lived experience where possible)?
• considered the needs of the local Eligible Cohort in the design of support services (including meaningful engagement with service users or those with lived experience where possible)?
• considered any health, care and support needs, including disability, of individuals who will be supported in the design of your RSAP Proposal and Bids?
• considered how you will comply with the requirements relating to nominations and tenancies set out in the Guidance on letting accommodation funded through RSAP?
• determined your approach to issuing tenancies (or in exceptional circumstances, periodic licences) to the Eligible Cohort, ensuring individual need is considered and the ‘Guidance on letting accommodation funded through RSAP’ is complied with?
• determined the level of Social or Affordable Rent appropriate to tenants’ needs that you (or your delivery partner who will be the Scheme landlord) will charge?
• determined whether any service charge applied to RSAP properties is reasonable and proportionate (and subject to Affordable Rent requirements)?
• complied with the public sector equalities duty (as defined in the Equality Act 2010)?

Leadership, strategic fit and sustainability

• Meaningfully co-produced Proposals with local stakeholders, including (where relevant to the local cohort):
  • delivery partners for specific Schemes e.g. Registered Providers of social housing?
  • healthcare commissioners and providers (including, where relevant, in primary care, secondary care, mental health and substance misuse)?
  • social care commissioners?
  • local voluntary and charity organisations?
  • probation services?
  • other relevant local partners?
• Performed due diligence, including ensuring compliance with local contract procedure rules and counter-fraud requirements, with local partners who will be involved in delivery?
• Worked with relevant teams across councils, including:
  • housing options?
  • finance team?
  • development team?
  • planning?
  • health protection team?
  • social care commissioners?
  • other relevant teams?
• Included a named contact for each stakeholder or council team involved in developing your Proposal?
• Considered how the RSAP Proposal will complement other homelessness and rough sleeping programmes and contribute to the overall strategic approach to ending rough sleeping locally?
• Considered how you will maintain the provision for the intended cohort as part of our goal in establishing a long-term “national asset”?

Deliverability

• Worked with development colleagues to produce a credible delivery timetable and project management plan to bring forward move-on homes and support services, including milestone dates for acquisition, start on site and practical completion and clearly defined roles for delivery partners?
• Clearly stated in your submission what will be practically completed in 2022/23 and what will be practically completed in early 2023/24?
• Complied with relevant procurement requirements set out for each Scheme at paragraphs 20 and 21?
• Considered, in collaboration with planning colleagues, whether a planning application will be required?
  • if a planning application is required, have you completed pre-application engagement, considered planning approval in the design of Proposals (and assessed the likelihood of approval) and developed a timeline for obtaining planning approval?
• (Where you propose delivering homes outside of your local area) Obtained the consent of the local housing authority responsible for the area where the accommodation will be located?
• Where support services will be delivered by a separate organisation to the landlord of a Scheme, indicated whether revenue payments should be to the council or landlord of the particular Scheme?
• Considered compliance with other relevant statutory and regulatory requirements and guidance?

Value for money

• Worked with finance colleagues to consider and utilise other sources of funding and investment to supplement your RSAP request?