Yet the expectation remains for registered social landlords to have their development bids signed, sealed and delivered to the Housing Corporation by the end of this month.
Stir into the confusion the added danger that a mis-hit 'caps lock' computer key could considerably alter one's grant rate outcome (the letter 'x' must be the correct case size or the outcome differs) and there is a sector feeling its way in the dark.
The grant rate debacle began prior to the opening of the bidding process when the corporation developed several prototypes of the calculator. Strangely, RSLs were not invited to test it and they complain there was no consultation.
Only housing associations that expressed an interest to the National Housing Federation were able to try out the early models, which were used to train officers and develop policy and in-house models; the majority of RSLs had never seen the calculator.
Early prototypes were plagued by reports from housing associations of rent discrepancies, affordability issues and conflict with the rent-restructuring process.
Liz Fudge, development director at Liverpool Housing Trust, said at the time: "one of our main concerns is over the future viability of some development projects" (Housing Today, 12 April).
The launch of the first definitive version of the calculator on 23 August was marred by local authority problems with Total Cost Indicators, and housing minister Lord Falconer's late announcement of the grant rate and a government climbdown over rent reform. This meant the model's rent convergence formula needed adjusting.
The second grant rate calculator, launched a week later on 30 August, was used by RSLs that had already begun training staff to use the first version.
It was soon after this that the corporation's investment management system went live for associations to bid online, using a third version of the calculator which had not yet been released to the unsuspecting sector.
Confusion reigned and RSL heads spoke of their "relief" at seeing a Housing Today headline declaring "ADP deadline unworkable" (6 September).
An RSL development chief said then: "The new calculator is a significantly different system from the current one and is one which will take a considerable amount of time to digest and implement."
The "considerable amount of time" given? An extra 15 days.
The corporation announced an extension to the deadline from 16 to 31 October, just over a fortnight in which associations were expected to alter individual feasibility models, arrange board meetings to approve new schemes, confer with development heads and policy officers and train staff to use a considerably altered calculator.
It was even worse for RSLs trying to work out low cost home ownership rent. In addition to the above, they have to work out three different figures to go into the calculator (one of which they may have no experience of calculating) in order to come up with their grant rate.
An employee of one such RSL said: "I think the corporation has got into a bit of a mess over this. I think it is shifting the burden onto us to do the work" (Housing Today, 27 September).
And then, yet another calculator was released just last week, 26 September, after the 4 per cent efficiency saving formula was extended to housing benefit-eligible service charge income.
Alan Whyte, director of development and marketing at the Longhurst Group, told Housing Today: "Clearly the calculator has not been comprehensively tested before it was released.
"There are inconsistencies in the model that I cannot believe were intended by those who designed it.
"Training to deal with the online bidding has been inadequate and we're in the position of trying to assimilate the calculator and new TCIs, which is immensely difficult in our operating environment."
He continued: "The framework we have been given means certain types of development cannot go ahead because of the inadequacy of the grant rate and reduced target rents.
"You could say that in parts of Lincolnshire it is now impossible to carry out new build schemes. Projects can't be made viable and these are not inconsiderable issues."
The discussion forums on the federation's website have highlighted more issues felt by various housing associations to be important enough to affect their ability to bid.
One entry reads: "I have checked the [corporation] guidance [on valuations] and it does not appear to deal with the issue of how a [landlord offering] LCHO sets a rent policy."
The response from the corporation's assistant director of investment, Fiona Cruickshank? These associations could "work with other RSLs", to find that information.
A nice idea: if finding an RSL with time on its hands did not currently compare to finding a needle in a haystack.
A corporation spokeswoman said: "We tested the model with the National Housing Federation and have been working with a number of associations to make it as user-friendly and accessible as possible.
"It has now been incorporated into our full Investment Management System and the guidance can be found on our website. We repeat our offer to assist any association which is having difficulties with the bidding system and our field offices will deal with queries as they arise."
Liz Willis, a federation policy officer, sums up the mood of a sector growing increasingly concerned that many may miss the deadline for ADP bids.
She said: "Over the last six weeks housing associations have faced a series of changes and inconsistencies in their bidding arrangements.
"Many of these problems could have been anticipated and managed if proper consultation and training had been carried out with RSLs before the launch of the bidding round.
"The bidding deadline clock should only have started ticking when certainty across the sector had been achieved."
The sector has 27 days to be certain… tick tock, tick tock…
Source
Housing Today
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