Introduction to claiming payment

Housing Associations can claim their grant in tranches from NIHE providing the conditions of the scheme have been achieved.

Introduction - For Schemes developed under the TCI Financial Regime a set percentage of approved grant can be paid once a scheme reaches certain key development stages.  These grant payments are known as Tranches.

Subject to its financial allocation the Association will be eligible to claim Tranches of the total grant approved by the NIHE (DPG), in stages at:

  • (i)  Acquisition – this is deemed to be where the Association has a contract with the vendor to take ownership of the site/property;
  • (ii)  Start on Site – this is deemed to be the date when the contractor took possession of the site/property in accordance with the signed building contract;
  • (iii)  Practical Completion – this is deemed the contract date when the Association took possession of the dwelling(s) or when purchase completion takes place, e.g., Off-the-Shelf schemes.

The amount of approved grant to be paid for each tranche is calculated by NIHE (DPG) and communicated to the Association on the ALP2/NT2/TA2 form at Project Approval stage.

Details on Tranches and Tranche Percentages applicable to different types of scheme are given in the following table.

Where a scheme consists of Mixed Funded HAG/DPF units with different Grant Rates the tranche percentage applicable is the one with the predominant dwelling type in the scheme. Where two dwelling types are relatively equal, predominance is established by the largest number of persons in total.

To qualify for payment of the first instalment of grant the Association must follow the guidelines in set out for each Acquisition Stage or Start on Site (works only) Stage.

Select the appropriate band for your scheme type to go to the relevant guidance:

Special Projects Promotion Allowance (SPPA) - Special Projects Promotion Allowance (SPPA) is a grant payable to Associations receiving capital funding under the Supported Housing procedures where the association is entering or has entered into a Joint Management Agreement (JMA) with a partner care provider. SPPA contains more information on eligibility criteria etc.

The following table details the current SPPA extracted from the last published allowances.

Response to Annex of Conditions to Scheme Approval - The Scheme Approval form ALP2/NT2/TA2 may include, or may be accompanied by, an ‘Annex’ to the approval of the project.  This facility exists to allow NIHE (DPG) to issue conditional scheme approval.  The annex will detail scheme specific conditions attached to the Scheme Approval. Associations may proceed with the development of the scheme provided outstanding issues outlined in the Annex are addressed prior to payment being issued or as specified in the annex conditions.   The Association is required to provide a point by point response to each issue raised.  On receipt of a claim for payment NIHE (DPG) will check the original scheme approval issued.  Payment requests will not be deemed valid unless a complete and satisfactory response to any Approval Annex is provided by the Association.

On receipt of the Association’s response the issues are passed to the relevant section within DPG for consideration and if the response satisfactorily addresses the conditions placed on the approval, and all information is present and correct, the claim for payment will proceed according to the grant timetable.

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