In medium to large scale new build social housing projects, Associations may consider the use of the NEC4 Option X5, Sectional Completion. Enabling the Association to take possession of completed contractually defined parts of the scheme prior to overall project completion occurring. Associations can only utilise Sectional Completion with prior agreement from NIHE DPG.
When a defined section of works has been contractually certified as complete and taken into Association ownership, the Association may submit a grant claim to the NIHE (DPG). Grant must only be claimed for those properties or units of accommodation that have been contractually certified as complete and that are in the Association’s ownership.
In exceptional circumstances, a phased approach can be considered by Associations when procuring multiple units ESP scheme. The scenario may arise when completion of a purchase contract for one or more properties or units in an ESP scheme is subject to unavoidable and significant delay. A phased approach would enable grant to be claimed for those properties where the purchase contracts can be completed and that are in the Association’s ownership. Associations can only utilise phased approach to ESPs with prior agreement from NIHE (DPG).
Grant must be claimed based on a ‘sub-phase’ of the approved scheme, as follows:
Grant Rate Type (Line 2 – SFN1 Form)
Number of Units Completed x Adjusted TCI per Unit/ Person x Unit Grant Rate x Scheme Cost Index x Completion Tranche Percentage
For Further Guidance See Table 8: Sectional or Phased Completion Bands 1 & 3
Recoverable costs post completion
- Where, following a final grant claim, the Association is able to recover costs as the result of a claim by or against a third party, that proportion of the costs in terms of Housing Association Grant for the scheme must be forwarded to NIHE (DPG).
- Also, following a final grant claim, where estimated costs are significantly higher than actual out-turn costs in Non-Tariff Schemes, the Association must contact NIHE (DPG) to seek advice on any requirement in respect of the repayment of HAG.