These are flexible and discretionary funds, with payment dependent on achieving growth, often in the short term.
To successfully bid for these funds housing associations need to make a case to their local authorities for investing each incentive in their regeneration schemes.
New Homes Bonus (NHB) is a discretionary grant from central government to local authorities, dependent on the number of properties delivered in addition to the housing supply. Spending decisions are made by local authorities on a continuous basis but housing associations could make a case for their own projects because investment in regeneration delivers new homes that bring further NHB funding, while boosting economic growth.
Community Infrastructure Levy (CIL) is a mandatory charge paid to local authorities on new developments to fund infrastructure. Parish and town councils can decide how at least 15% of receipts raised in their areas are spent (25% if there is a neighbourhood plan in place). Unlike local authorities, parish and town councils can spend their CIL on anything that supports development including affordable homes.
Section 106 agreements are voluntary legal agreements between developers and local authorities that make new developments acceptable locally. Nearly all local authorities use s106 agreements to fund affordable homes and support infrastructure. S106 agreements are a very useful tool for delivering mixed tenure communities.
Business Rate Retention and Tax Increment Financing is the Government’s new funding model for business rates, designed to incentivise business growth. The changes allow local authorities to modestly borrow against projected revenue growth which may in some areas help fund regeneration plans.