That was the shock finding of a National Housing Federation report published this week. Dwindling levels of subsidy could lead to RSL development becoming unsustainable, and even hamper associations' ability to borrow, one of its authors warned.
The calculator determines the amount of grant per home from the corporation for each development.
The study examined the impact of total cost indicator and grant rate changes made to the 2002/03 bidding round. It found associations using the grant rate calculator had to use large amounts of their own money to ensure schemes remained viable.
It concluded: "It is clear the levels of subsidy from RSLs to make some schemes work cannot be regarded as sustainable. Questions about the long term sustainability of such levels of internal subsidy remain and may emerge during the course of this year when difficulties about scheme deliverability begin to surface."
Independent housing consultant Richard Broomfield, who carried out the study, said: "We were surprised at the level of funding RSLs were having to provide for schemes themselves. The implications are that the grant rate calculator will favour associations that are financially robust and have strong finances to develop affordable housing."
The report showed 53 schemes to have shortfalls in social housing grant, with two thirds of those short by £10,000 or more per dwelling.
Circle 33 Housing Group business development director Howard Hughes said: "Very few RSLs are able to support subsidy at these levels for any period of time. We expect the Housing Corporation will be concerned by the suggestion in the report that some associations have bid for grant levels they are actually unable to deliver."
A corporation spokeswoman said: "We are carrying out our own review of the grant rate process and will take the federation's study into account."
Source
Housing Today
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