Housing associations will only get capital funding for supporting housing schemes in future if they can get a long-term commitment to the projects from local councils
The Housing Corporation's new National Investment Strategy includes the first full statement on the future funding of supporting housing since the launch of the government's controversial Supporting People proposals.

Under these plans all revenue funding for supporting housing will be controlled by councils from April 2003.

The agency insists that because of the plans housing associations' bids for supported housing schemes will only be successful if councils confirm a long-term need for the projects.

It says: "We will be asking local authorities to use their best endeavours to ensure the necessary level of revenue support and indicate that any new projects will remain a high priority for the resources made available under Supporting People."

It explains that if there is no such commitment, housing associations will have to show that proposed schemes can be converted to other housing uses. Housing associations are also asked to consider bidding to build new hostels for young single mothers, of the kind recommended by the the Social Exclusion Unit (Housing Today, issue 138).

The corporation is to pilot the idea of using such hostels for single mothers as an alternative mainstream social housing.

Three other types of supported provision are also singled out in the document - supported housing for drug misusers; foyers; and help for rough sleepers. National Housing Federation head of management and support Kathleen Boyle said: "RSLs need to be careful this year because they are bidding to operate under a funding system that has not yet been designed. It's good that the corporation is sending out this message now."