Community Land Trust Fund

Delivering Affordable Sustainable Housing
How to use the workbook:

Project information

project information

The following fields should be completed. These apply for new build. For refurbishment/ conversion, further information should is required.

Project Details

Enter the following details:

Project Mix

Enter the following details:

  • Tenure – select from the drop down list, i.e. Social Rent, Affordable Rent, Shared Ownership, Market Rent, Shared Equity or Outright Sale
  • Enter a line for each type

Cash Flow Dates

Enter the following dates:

  • Purchase completion
  • Start on site
  • Practical Completion
  • Last sales completion – only applicable for Shared OwnershipShared Equity or Outright Sale

Grant

Enter the following details:

  • Amount of HCA grant: split between Social/Affordable Rent and Shared Ownership/Shared Equity
  • Amount of Local Authority grant and the date this is likely to be received
  • Amount of any other funding and the date this is likely to be received

Commercial Property Assumptions

  • Management costs per unit
  • Maintenance costs per unit
  • Voids rate
  • Rent Inflation
  • Management Costs Inflation
  • Maintenance Costs Inflation

Other Information

Enter the following details:

  • Local authority – select from the drop down list; please note that the list of LAs relates to the areas in the National Rent Regime data, and does not reflect the most recent local government reorganisation.
  • HCA Region – select from the drop down list
  • Rent year – this is the year the social rented units will be completed. The rent year runs from 1 April to 31 March
  • HCA Allocation year. This also runs from 1 April to 31 March
  • Date last updated – this is the date the model was last updated to aid version control

Assumptions

The Assumptions can all be defined by the user. The values included in the model are suggestions and can be adjusted as appropriate. Those included in the model are:

Funding

  • Interest rate Dev Loan – this is the interest rate that is being charged by the funder over the development period
  • Interest rate L/T Loan – this is the interest rate that is being charged by the funder once the development is complete
  • Length of L/T Loan – this is the period of the long term loan
  • Discount rate – we have included this at the same rate as the long term loan but you may choose a different rate.

General Needs

Shared Ownership

  • Equity Sold – the amount of equity sold as a first tranche
  • Rent Cap – percentage of the rent charged on the unsold equity

Inflation

  • Rents – the current Rent Standard Guidance limits rent increases to CPI plus 1%.  The model assumes that CPI will be in line with the government target of 2% so that the overall increase will be 3% per annum.
  • Management Costs – expect to increase at RPI+0.5% or RPI+1%
  • Maintenence Costs – expect to increase at RPI+0.5% or RPI+1%

Community Bond Assumptions

  • Amount – enter the amount of the Community Bond
  • Month/Yr Rec’d – enter the month and year that the Community Bond will be received
  • Interest Rate – rate to be charged over the life of the bond
  • Bullet Repayment Term/ Capital Repayment Holiday (Yrs) – Where the bond is repayable in full at the end of the term (Bullet repayment) enter the term in this box. Where the loan is not repayable in full (Bullet repayment) but has a period where only interest is paid, enter the period of capital repayment holiday (Interest only) in this box.
  • Roll Up Interest – where no interest is paid but the interest is rolled up into the loan amount, answer Y here. Where interest is to be paid enter N.
  • Bullet repayment – Where the bond is repayable in full at the end of the term (Bullet repayment) enter Y here. Otherwise enter N.
  • Repayment term (Yrs) – Enter the number of years (Term) of the loan in this box where the loan is not a Bullet Repayable loan.