New Supply Shared Equity administrative procedures

Introduction

These administrative procedures provide detailed operational guidance for Registered Social Landlords and grant providers ^[1] on the New Supply Shared Equity scheme. They contain information on the following:

• the New Supply Shared Equity scheme ( section one);
• advice on the local targeting and publicising of the scheme, establishing affordability and conducting means testing ( section two);
• the grant administration procedures ( section three);
• the arrangements for monitoring who is housed ( section four);
• the procedures to be followed when an owner wishes to increase their equity stake in their property ( section five);
• Owners wishing to remortgage their property ( section six);
• Owners wishing to sell their property ( section seven); and
• the procedures to be applied when adding or removing a person from the shared equity legal documentation ( section eight);
• information on buybacks and resales where there is a golden share in operation ( section nine);
• Post Sales duties for Registered Social Landlords ( section ten)
• the Scottish Government's Area Housing Supply Teams ( section eleven).

These procedures also contain:

• the legal documentation for the New Supply Shared Equity scheme ( Annexe A);
• the application form which Registered Social Landlords must ask individuals to complete when they are applying to the New Supply Shared Equity scheme ( Annexe B);
• individual case studies for establishing affordability and conducting means testing ( Annexe C);
• financial appraisal examples ( Annexe D) for approvals under the Affordable Housing Supply Programme Approvals
• the standard style of grant offer that Registered Social Landlords must enter into with grant providers ( Annexe E) for approvals under the Affordable Housing Supply Programme Approvals
• a copy of the form that Registered Social Landlords must complete each time a property is sold ( Annexe F);
• a copy of the form that Registered Social Landlords must complete each time an owner increases their equity stake in a property ( Annexe G);
• an illustration of how a financial reconciliation must be calculated each time an owner increases their equity stake in a property ( Annexe H);
• a copy of the form that Registered Social Landlords must complete each time a property is sold on the open market ( Annexe I); and
• a copy of the form that Registered Social Landlords must complete each time a property with a golden share is bought back and re-sold ( Annexe J).

Please note that throughout these procedures the term 'Registered Social Landlord' should be taken to include wholly-owned subsidiaries where they are the chosen vehicle for providing New Supply Shared Equity properties. In addition, any reference to rights and obligations contained in documentation is purely for convenience and regard can only be had to the documentation itself upon which appropriate legal advice should be taken.

Any queries regarding these procedures should be referred in the first instance to the relevant Scottish Government Area Housing Investment Team. Details are in section eight.

When reference is made within this document to Scottish Government Solicitors, this means Harper Macleod LLP, The Ca'd'oro Building, 45 Gordon Street, Glasgow, G1 3PE.