HCA

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HCA
Presented by Visakha Sri Chandrasekera, Deputy
Director Investment, London
Date 9.3.09
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• HCA Budget in London
• Market Downturn
• Single Conversation
• HCA and Local Authority Building

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The HCA in London Funding 2008-11
Total c5bn
Excludes PFI credits
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Credit Crunch and Market Downturn

• lenders wont lend, borrower cant borrow,
  builders cant build and buyers cant buy.

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Market Downturn Impacts on Schemes with
Affordable Housing

• Cross Subsidy reductions due to reduced
  valuations impacting on scheme viability
• Higher interest rates borrowing fees for
  providers
• Access to mortgages for LCHO no lenders
  prepared to give 100 mortgages and more
  stringent lending criteria
• Slow down in sales/increase in unsold stock
• Lenders perception Sharted Ownership as
  sub-prime

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Responding to the Downturn

• National Clearing House
• HomeBuy Direct
• Mortgage Rescue
• Package Approach
• Tenure Conversions
• Grant Rate Flexibility
• Assisted Land Acquisition

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Single Conversation
Partners
Resources
Timescales
Delivery
Local ambition
Local investment agreement
Single Conversation
Outputs
Outcomes
HCA Input
Fit with other LA strategies
Regional/ Sub-regional Strategies Plans Targets
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Single Conversation Preparation

• Opportunities and Priorities (Ambition)
• Links between funding streams for residential and
  infrastructure
• Links to Employment/Sustainability and LDA
  investment
• Delivery Principles
• Collaborative Structure

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Local Authority Building

• Preparatory stage pending HRA Review
• Proposals for LAs to keep all the income and
  receipts from RTB
• New Build with free land
• Secure Tenancies (with RTB)
• Pre- Qualification Process
• Contractual Agreement

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