Revised approvals

Changes to scheme proposals are allowed after approval at different stages.

This facility exists to allow changes to be made to scheme proposals after approval. It is not intended that Associations should use the process routinely to defer the accurate formulation of development proposals.

Changes made to scheme after approval – Up to Start-on-Site Stage

Three types of revised approvals are possible:

• where a fundamental change to development proposals is made - if, in the period between Project Approval and going out to tender, the Association wishes to make a fundamental change to its development proposals which affects TCI (e.g. change of mix, change in the number of units or revised purchase price etc), the NIHE (DPG) will consider re-determining the amount of grant available. Associations should contact NIHE (DPG) for guidance in the first instance
  (Note: The Association should submit revised and updated Forms NT1/TA1 and SFN1 for the original project. The Association should note, in preparing its application that the TCI, Grant percentages, and Standard On-costs applying to the original approval(s) will hold)
• where a tenanted property remains unimproved - where a tenanted property has not been improved within 18 months of completion of the acquisition, NIHE (DPG) will ask the Association to state the proposed Start on Site date. Where the Association is unable to confirm a definite date, NIHE (DPG) will reassess the scheme against Off-the-Shelf criteria as if it had been originally presented as a tenanted “Off-the-Shelf” purchase, using the grant, TCI and on-cost rates applicable at the time of the original Project approval. When the property is eventually available for improvement the Association will make a new project approval application for a Works Only scheme following the instructions at Band 3: New Build/ Rehabilitation/ Re-Improvement/ Works Only
• where after project approval is given, the scheme is subject to substantial delays – each case will be considered on its merits, and if all or part of the reason for the delay cannot be attributed to the Association the NIHE (DPG) may allow the TCI and Grant Rates to be recalculated
  (Note: The Association should submit revised and updated Forms NT1/TA1 and SFN1 for the original project).

If the changed proposals are agreed a revised Project Approval will be issued to the Association on NT2/TA2 form. Any necessary adjustments (up or down) to the grant payments will normally be made at Start-on-Site Stage. NIHE (DPG) will determine the necessary adjustments to the grant payments already made, and will advise the Association accordingly. Any underpayment should be actioned by submission of GA1 form by the Association. Any overpayment will either be reclaimed from the Association or adjusted at the next stage payment, depending on the amount of the overpayment.

Changes made to scheme after approval – After Start-on-Site Stage

Non-Tariff funded Schemes - changes should normally not be made after the Start-on-Site stage. However, in exceptional circumstances an additional unit or units may be added or omitted, or a larger/smaller unit substituted in the Building Contract for housing management reasons. Associations should inform NIHE (DPG) at the earliest possible opportunity and provide plans etc. NIHE (DPG) will normally give an in-principle approval, and grant – which will be based on the TCI and Grant rates applicable to the original approval – can be reconciled at Practical Completion stage. Where additional units are added to the site or adjacent to the site, as a new phase, this phase will normally attract the TCI and Grant Rates applicable at the time of the application.

(Note: The Association should submit revised and updated Forms NT1/TA1 and SFN1 for the original project or new forms for a new project phase).

Tariff Schemes - changes should normally not be made after the Start-on-Site stage. However, in exceptional circumstances an additional unit or units may be added or omitted, or a larger/smaller unit substituted in the Building Contract for housing management reasons. Associations should inform NIHE (DPG) at the earliest possible opportunity and provide revised scheme documentation
(Note: The Association should note, in preparing its revised application on Forms NT1/TA1 and SFN1 that the TCI, Grant percentages, and Standard On-costs applying to the original approval will hold)

Changes made to scheme after approval – After Practical Completion Tranche paid

Associations’ quality assurance systems should ensure that substantive changes to a scheme, after the practical completion tranche has been paid, are not required. Associations’ cost estimates should have been realistic and so final outturn costs should broadly be in line with estimates upon which grant has been paid. However, in the unlikely event of a change requiring a revision of the scheme approval (e.g. the purchase price, unit numbers or types, actual outturn costs below estimates etc, this will be dealt with under HAG Recovery procedures. Associations should contact NIHE (DPG) for guidance in the first instance. For more information see Recovery of Grant

(Note: The Association should submit revised and updated Forms NT1/TA1, SFN1 and GP2 with supporting documentation where appropriate for the original project to facilitate calculation of the amount of HAG to be recovered).