Normally Off the Shelf grants are paid in one tranche however grant can be paid in two tranches (10% & 90%), the initial 10% is to cover initial deposit to vendor.
Distinct Grant Requirements - Grant for Off-the-Shelf Schemes is normally claimed by the Association in one Tranche (100%), after Project Approval has been issued and when the construction work has been completed. Therefore the Acquisition stage grant application in Off-the-Shelf schemes represents the final claim and no further advances of grant will be made. More information on Grant Timetable.
Partial Acquisition - In certain conditions, grant for OTS schemes may be claimed in two Tranches, with a first Tranche of 10% being claimed by the Association to cover situations where work has started and the vendor (contractor/developer) requires an initial deposit to allow a purchase contract to be signed and the work completed. The remaining 90% Tranche is paid when the Association takes possession of the dwelling etc. Normal rules governing the acquisition claim apply, see Table 5 for details.
This facility is available to cover situations where contractor/developers will only complete properties to a particular stage – e.g., DPC level or ‘shell’ state – unless they have a firm commitment from a buyer. In such cases, the Association will be required to enter into a formal Development Agreement with the contractor/developer. A deposit is normally required (usually around 10% of the purchase price). The Association will need to satisfy the additional criteria and certifications for receipt of grant described in Table 5.