It has admitted that it is expecting to be told by the government to set aside a tranche of funding to be allocated to housebuilders, rather than registered social landlords, in the 2005/06 development programme.
Neil Hadden, the corporation's assistant chief executive for investment and regeneration, said: "We are expecting to be told to do that but we will need to talk to developers about how they will react.
"We will also have to wait for legislation and for proposals from developers."
He declined to reveal how much of the anticipated £1.7bn for that year – set to eclipse the expected £1.4bn for the 2004/05 programme – would be earmarked for the private sector.
At least four housebuilders have expressed an interest in receiving grant from the corporation: David Wilson Homes, Bellway, Taylor Woodrow and St George. Barratt is also understood to be interested.
Unofficially, ODPM officials have made little secret of the government's intention to press ahead with the controversial policy despite protests from RSLs.
Any plans to pay grant to developers would have to be included in the Housing Bill and debated in parliament. It will take at least a year before the bill is passed.
National Housing Federation chief executive Jim Coulter said he thought the proposals would not get an easy ride through parliament.
The 2004/05 approved development programme funding is set to be announced next week. The total pot is estimated to be £1.4bn. It is understood that the corporation is to impose a £10m threshold for RSLs to qualify as "development partners". This means any RSL that got less than £10m in corporation development grant in the past year will be excluded from long-term funding partnerships. to receive further funding from the body.
Source
Housing Today
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