Competition Guidance
1. Introduction
- Social Housing Quality funding (SHQF) is available to Greater Manchester Housing Providers and Greater Manchester local authorities who own or manage social housing stock to improve the physical decency of social housing, targeted at homes with serious (category 1 and category 2) damp and mould housing health and safety rating system (HHSRS) hazards[1] including homes where damp and mould is a threat to health.
- The key objectives for the SHQF competition are set out below:
- Dealing with Category 1 damp and mould HHSRS hazards
- Dealing with Category 2 HHSRS hazards facing vulnerable households
- Dealing with other Category 2 damp and mould HHSRS hazards
- Dealing with properties where tenants have reported damp and mould issues and surveys have identified remedial action required
- Supporting ‘infill’ works to properties of archetypes with vulnerable tenants where issues are known to occur and where evidence demonstrates elevated risks of hazards occurring
- Supporting ‘infill’ works to properties of archetypes where issues are known to occur and where evidence demonstrates elevated risks of hazards occurring
2. Eligibility Criteria and Application Requirements
Eligible Applicants
- Housing Providers in Greater Manchester and Greater Manchester local authorities who own or manage social housing stock can apply directly for Social Housing Quality funding (SHQF) to support improvements to the physical decency of social housing, targeted at homes with serious (HHSRS category 1 and category) hazards - including homes where damp and mould is a threat to health. Throughout this document, “Applicants” refers to all eligible applicants as defined in this section.
Project Delivery Timescales
- All capital works must be delivered by 31 March 2024. All grant funding for SHQF projects must be spent by 31 March 2024. Applicants are asked to submit applications they are confident can meet these deadlines. Applicants must develop evidenced project plans showing their ability to complete projects by the dates above and consider any risks to this plan.
- Applicants should not delay works to Bands 1-3 properties in anticipation of the Grant Funding Agreements. The first monitoring period is expected to commence on 11 August 2023 where Applicants are able to backdate works.
UK Subsidy Control Rules
- As a public authority the GMCA has legal obligations to provide this grant funding in compliance with the Subsidy Control Act 2022.Applicants are required to provide reasonable assistance and information to the GMCA to ensure it complies with subsidy control requirements.
Eligible Properties
- Eligible properties must be:
- Located in Greater Manchester (Bolton, Bury, Manchester, Oldham, Rochdale, Salford, Stockport, Tameside, Trafford, and Wigan).
- Existing social housing as defined by the Housing and Regeneration Act 2008 (sections 68-70) regardless of archetype.
- The primary objective of this programme is to eliminate damp and mould hazards in social housing in Greater Manchester. GMCA wants to maximise the impact of the funds available on those properties and households currently facing HHSRS Category 1 or 2 hazards[1] of damp and mould growth.
- Subject to satisfactory responses to the questions in this application form, and the provision of required supporting evidence, our intention is to allocate funds to applications to fund works prioritised as follows:
- Band 1: Dealing with Category 1 damp and mould HHSRS hazards
- Band 2: Dealing with Category 2 damp and mould HHSRS hazards facing vulnerable households
- Band 3: Dealing with other Category 2 damp and mould HHSRS hazards
- Band 4: Dealing with properties where tenants have reported damp and mould issues and surveys have identified remedial action required
- Band 5: Supporting ‘infill’ works to properties of archetypes with vulnerable tenants where issues are known to occur and where evidence demonstrates elevated risks of hazards occurring
- Band 6: Supporting ‘infill’ works to properties of archetypes where issues are known to occur and where evidence demonstrates elevated risks of hazards occurring
- We do not expect large number of homes included in bids in Bands 1-3 above but it is vital that any which do have HHSRS assessed hazards are prioritised for this programme. We will fund as many applications judged as suitable as possible within the budget available (prioritising homes in Bands 1-3), while reserving the right to adjust our approach in light of the scale and pattern of bids received. Homes included in bids in Bands 4-6 will be subject to a Value for Money assessment.
- There is no income related eligibility requirement for social housing tenants, although Applicants should consider prioritising measures to properties containing tenants who are particularly vulnerable. Vulnerabilities may include residents with respiratory issues, living with disabilities, race equality issues such as English as a second language (ESL), overcrowding, levels of deprivation.
Funding and Eligible Costs
Co funding
- There is a co funding requirement to maximise the number of properties that can be treated with the funds available. As such, GMCA will require a minimum 25% of total eligible costs across the programme to be provided by the Applicant when applying for the SHQF competition. Applications that demonstrate 25% or greater co funding will pass this requirement. Applications that demonstrate less than 25% co funding will fail this requirement and not be considered.
Value for Money
- GMCA’s obligation to ensure it is spending public money as effectively and efficiently as possible. Ensuring value for money is a critical objective and GMCA will carry out a Value for Money assessment based on the mix of measures proposed for Band 4-6 homes (outlined in Eligible Properties section above), which will be scored. Value for Money will assess the measures to be installed for properties in Bands 4-6, a detailed cost breakdown, and a justification of this cost breakdown including evidence of costs provided.
Additionality
- Applicants are expected to demonstrate how the proposed works will provide additionality including how this will expand and/or accelerate your investment programmes and address damp and mould risks in social homes. This is expected to be evidenced through the Applicants response to question 1.2 of the Application Form and a copy of their 2023-24 Business Plan submitted as Annex G.
Measures to be installed
- Applicants are expected to propose cost effective measures appropriate for their chosen stock which align with the SHQF objectives and strategic approach. Applications installing measures in properties in Bands 4-6 outlined in the Eligible Properties section above that are not making cost effective progress towards the SHQF’s strategic objectives are likely to receive a low score in the ‘Value for Money’ section of the assessment.
Cost Breakdown and Justification
- Applicants are expected to provide a breakdown of capital costs for installation works including the non-recoverable VAT and costs excluding VAT.
- Applicants are expected to provide an accurate cost breakdown that is based on engagement with suppliers. GMCA may carry out a cost benchmarking exercise (i.e. comparing equivalent costs against costs seen in other bids) - with the aim of ensuring that bids represent good value for money but also are evidenced based. Bids with poor cost justification, particularly those with relatively very high or very low costs, will receive a low Value for Money score.
- Applicants are requested to state their overall co funding contribution, which must be a minimum of 25% of eligible project costs. Applicants must also confirm the source of funds for co funding and are expected to provide evidence of secured co funding such as CFO sign off. The co funding value shown in evidence should match the value input to the application form.
3. Tenants
Consideration of Tenants
- The SHQF competition will aim to improve the comfort, health, and well-being of Social Housing tenants by delivering decency improvements to homes. Applicants should demonstrate how tenant needs will be considered throughout the project and comment on any tenant engagement undertaken.
- Poor tenant engagement is likely to be a challenge to successful delivery of projects, leading to refusal of access or tenants withdrawing from the project at a later stage. GMCA expects tenant engagement to go beyond leafleting and cold calling, which GMCA does not consider to be sufficient methods of tenant engagement when implemented in isolation.
- Applicants are expected to outline how suitable support and information will be provided to tenants. Reasonable adjustments should be made to minimise negative impacts and inconvenience to tenants (especially those of a protected characteristic covered by the Equality Act 2010) where appropriate. Applicants should consider prioritising measures to properties containing tenants who are particularly vulnerable.
- Applicants should consider their responsibilities under the Public Sector Equality Duty (PSED) and conduct an equality assessment or analysis if they deem necessary. PSED applies to public sector organisations and any organisation where it is carrying out a public function. In the event funds have to be returned to GMCA due to underspend or misuse, this should not affect the tenants.
4. Other Information
VAT
- The grant funding to the Applicant falls outside of scope of VAT. This is because the provision of the grant is not a consideration of supply for VAT purposes. If the Applicant enters a third-party contractual relationship with a supplier (per the terms of GMCA issuing the grant), and incurs non-recoverable VAT on the supply provided, the Applicant should ensure this does not exceed the total grant GMCA provided. This means recoverable VAT should not be included in the grant requested in the application.
- To ensure consistent treatment in the application assessment process, all costs will be assessed excluding VAT in the Value for Money section of the application assessment for Bands 4-6 properties. When working out the VAT costs for works, Applicants should consider what is being supplied. Is there a single supply of a mixture of services which will attract a single VAT liability or are there a number of separate supplies each attracting their own individual VAT liability. If you are uncertain you may wish to confirm with your supplier the amount of VAT they will charge you before submitting a bid. GMCA expects VAT implications of works to have been considered prior to bid submission, to ensure costings are accurate. GMCA recommends that Applicants procure their own VAT advice where there is uncertainty to ensure that the current application of VAT rules applies to the works that are being completed.
Financial Viability of Applicants
- Applicants must satisfy the due diligence, financial and organisational checks that will be carried out by GMCA, prior to receiving public funds. This will assess trustworthiness, suitability, and track record of Applicants. Where required, robust due diligence will be carried out to assess financial health, available project funding, and potential fraud and error.
Conditions of Payment
- This payment process will begin once the Grant Funding Agreement (GFA) has been signed by both parties.
Payment Process
- Applicants will receive total grant funding in a single payment within 20 working days of funding decisions, on condition that the Grant Funding Agreement (GFA), Grant Offer Letter (GOL), and any associated agreements have been signed between the Applicant (Grant Recipient) and GMCA.
- GMCA will recover surplus funding or clawback where underspend or misuse is identified.
Reconciliation
- Once a month, Applicants will be required to submit a summary statement of the actual eligible expenditure that has been incurred to date.
- This summary statement should contain a high-level overview of payments that the Applicant has made in relation to delivery of SHQF, as part of any work on their own stock.
- Based on the reconciliation, the forecast for the remainder of the project will need to be updated in line with the process outlined above.
- A template for the summary statement will be provided and will require high level overview of payments as per point.
Evidence Check
- At the end of every reconciliation exercise, GMCA, and third parties working on its behalf, will conduct an evidence check.
- A sample of invoices may be requested from each Applicant, who will have 5 working days to provide the invoice evidence to be checked. GMCA, and any third parties working on its behalf, will work proactively with the Applicant during this time.
- To assist this process, alongside any checks required by the Applicant's own governance, we may require all information pertaining to costs incurred during the project are recorded and evidenced.
- GMCA reserves the right to request a full evidence check at any point during delivery and will work proactively with the Applicant to carry this out in appropriate timescales.
Grant Funding Agreement
- Payments will be only made by GMCA after the Grant Funding Agreement (GFA), Grant Offer Letter (GOL), and any associated agreements have been signed between the Applicant (Grant Recipient) and GMCA. Further details on payments and financial requirements will be provided by GMCA as part of the GFA. A draft GOL and GFA have been provided as part of the competition process for Applicants to review. Some key provisions that are included in the GFA are outlined below:
- Grant funding awarded to each Applicant must be spent by 31 March 2024.
- Upfront payment will be made within 20 working days of funding decisions, on condition that the Grant Funding Agreement (GFA), Grant Offer Letter (GOL), and any associated agreements have been signed between the Applicant (Grant Recipient) and GMCA.
5. Information Management
Applicant Contacts
Provision of your contact details to be held in GMCA
- Applicants will be required to provide a name and contact details for at least one named person to GMCA (including their nominated single point of contact). We would suggest one or more contact(s) who is/are the project lead, communications lead, finance lead, legal lead or CEO. We will use this information to communicate scheme updates and opportunities, invitations to relevant events, and to resolve any queries or issues. Details of how this information will be held and used will be set out in the SHQF Data Sharing Agreement (DSA).
Monitoring and Evaluation
Key Performance Indicators (KPIs)
- Applicants must provide baselines and forecasts on a number of key performance indicators (KPIs). These are used to appraise project proposals and to monitor project progress upon grant award.
Scheme administration
- Grant recipients must have a system in place across their delivery teams to ensure they can fulfil the monitoring and reporting requirements as outlined in the GFA with GMCA. The DSA is an essential document grant recipients must sign and return to support the GFA. It specifies data sharing necessary to deliver and evaluate SHQF.
- Project leads must supply data to GMCA on a routine basis, following the reporting cycle outlined in the final GFA and DSA. In addition, they are expected to support requests which may be issued outside of this schedule to manage delivery as needed.
- Grant recipients must work with GMCA-appointed monitoring officers to ensure that project reporting – including milestone claims, change requests or issue escalations – are clearly communicated. GMCA will also assist with ensuring good quality of data, by providing successful projects with monitoring frameworks following grant award.
Independent evaluation and official statistics
- To effectively manage public spend, GMCA may commission research and independent evaluation of SHQF.
- Designated teams within GMCA may use SHQF Administrative Data to generate research and statistics concerning SHQF and housing stock. Results will be reported in an anonymised, aggregated format.
- In the event that an independent evaluation of SHQF is commissioned, evaluation partners will process SHQF Administrative Data shared by GMCA to invite participants and beneficiaries to take part in research, on a public task legal basis. By taking part in research, data subjects give their consent to GMCA’s evaluation partner to process their responses as SHQF Research Data (UK GDPR Article 6(1)(a)).
- Grant award recipients would be required to support research activities by:
- Facilitating on-site and in-person interviews and fieldwork with selected project leads, their delivery partners and project beneficiaries.
- Issuing GMCA SHQF Privacy Notice, and their own Privacy Notice, to their project participants and beneficiaries (i.e. tenants), informing them that they may receive a survey invitation from GMCA for feedback on their experience.
- Where applicable, sharing additional project-level data with GMCA and its research partners to supplement secondary desk research.
- Further information on data required to deliver research, statistics and evaluation are outlined in the Data Sharing Agreement.
Managing Potential Fraud
- GMCA requires Applicants to adopt a proactive, structured, and targeted approach to managing the risk of fraud. To ensure the safe administration of funding, Applicants are expected to have appropriate measures in place to mitigate against the increased risks of both fraud and payment error. The Internal Audit Service of the Applicant is expected to be engaged throughout delivery of the project.
- Applicants are reminded of their responsibility to ensure that steps are taken to mitigate risks, which may include but not limited to the following:
- A provider using the funding for purposes outside of the grant conditions.
- Work not carried out, funds diverted, ineligibility not declared.
- False application or payment of grants to any person, agency or organisation.
- Spurious claims based on fiction e.g., claims made for empty properties and funding pocketed or upgrades sold on.
- Conflicts of interest/collusion through illegitimate procurement or price inflation.
- A range of measures to prevent and detect fraud will be utilised by the scheme. GMCA will be managing fraud and conducting targeted spot checks. Further information on data required to mitigate fraud, funding duplication and non-compliance is outlined in the Data Sharing Agreement.
- GMCA has a zero tolerance to fraud, as such we reserve the right to withdraw or clawback funding if the scheme requirements/eligibility criteria are not met. GMCA reserves the right to audit/inspect any aspect of the work funded under the scheme and participants must allow us to inspect the work, at any given time during the project, to confirm that it has been undertaken in compliance with scheme rules.
- GMCA will undertake due diligence checks whilst assessing applicants, whereby the applicant may be asked to provide more information and is expected to comply with the additional checks. During the length of the project, GMCA will reserve the right to audit the installations at any time.
Publication Process
- GMCA may wish to publicise the results of the scheme, which may involve engagement with the media, including press, social media, and other channels. At the end of the application and assessment process and upon signing of the Grant Offer Letter and Grant Funding Agreement, GMCA may issue a press release or publish a notice on its website. These public documents may, for example, outline the overall results of competitions and describe some of the projects to be funded. GMCA may wish to publish the following information:
- Identity of the participant and its partners;
- Project summary information including aims and expected outcomes of the project as well as the technologies they propose to install;
- Locations of where the properties are that the project will undertake works on (designated by county or city); and,
- Total award value.
- Some organisations may want the detail of their projects to remain confidential and Applicants will be given a chance to opt out of any involvement in media relations activity and further case study coverage of projects, should they see this as being absolutely necessary. However, the public description of the project that the Applicant provides in their application will be made available in the public domain if their application is successful, and the Applicants may not opt out of the basic project description being published.
- Please note that there will be an embargo placed upon the details of successful projects until GMCA has made the formal grant award announcement. Following this, we would encourage projects to publicise their plans, achievements and lessons learned throughout the project lifecycle. Projects must include a reference to the SHQF funding in their publications, and where the GMCA logo is used, projects are required to notify the SHQF stakeholder engagement and comms team to obtain permission beforehand. All grant recipients must make clear in all publicity arrangements, marketing materials and during tenant engagement that funding for these works has been provided (in part) by GMCA through grant funding provided by UK Government/DLUHC. These materials must make reference to any GMCA provided branding, should this be proposed.
- Following completion of the funded projects, GMCA will publish on its website a summary of the funded activities and the outcomes achieved. This may include a final summary report detailing key achievements from each project. GMCA may also publish outputs from an independent evaluation. These outputs will be high-level summaries of research findings generated through surveys and interviews, covering SHQF. Any research findings published will be anonymised in line with the terms of UK-GDPR.
- GMCA however recognises the need to maintain confidentiality of commercially sensitive information. GMCA will consult Applicants regarding the nature of information to be published, to protect commercially sensitive information.
6. Project Management and controls
- Applicants must develop evidenced project plans showing their ability to complete projects by the agreed date and consider any risks to this plan. It is the Applicant’s responsibility to understand and implement the necessary Project Management techniques for the successful delivery of the project. Detail of the level of information GMCA expects to see at application stage can be found in the application form guidance.
- GMCA will use core milestones to track the delivery of all SHQF projects. These milestones will be common to all projects and will be used to track and compare projects. They are not meant to replace the more thorough, detailed and specific set of milestones that each project should have as part of its internal project planning. These milestones are specified in the Grant Funding Agreement.
7. The Application Form
Key Dates
- The following table outlines indicative dates for SHQF milestones. GMCA intends to work to the outlined timetable but reserves the right to amend the dates.
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Funding application window opens and publication of competition documents: 26 June 2023
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Market engagement event: 28 June 2023
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Competition closes: 14 July 2023
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Bid assessment ends: 4 August 2023
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Successful Applicants notified: By 11 August 2023
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Grant funding and associated agreements signed with successful Applicants: By 22 September 2023
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Deadline to complete capital works and spend funding: 31 March 2024
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Application Process
- Once Applicants are satisfied that they meet the Strategic Fit, Delivery Assurance and Value for Money aims (see Evaluation of Proposals & Assessment Criteria section below) of the SHQF competition, the Applicant can complete the SHQF competition application form. Details provided in the proposal submitted by the Applicant will be used as the basis for GMCA to work with successful Applicants to implement the schemes. Applicants should therefore be mindful that the eligibility criteria, homes to be targeted, and measures proposed will be the basis of the Grant Offer Letter/Grant Funding Agreement, upon which grant funding is issued.
- Applications must be submitted by the eligible Applicant (as defined in Section 2 above). All completed application forms and required attachments must be submitted by 11:45am on Friday 14 July 2023. Proposals received after the application deadline will not be considered.
- Applicants are requested to follow the guidance within the application form regarding formatting and number of words per section. Applicants should refer to this guidance document where necessary and ensure that they have complied with all the competition requirements. GMCA will not be accepting attachments additional to the annexes listed in Section B of the Application Form.
- All bids must be made through The Chest’s ‘ProContract Portal’. Applicants can register by visiting the portal webpage https://procontract.due-north.com/register.
- A user guide for The Chest is available at https://supplierhelp.due-north.com/. On this webpage a guide to registration is available under the ‘Registering’ section and a downloadable video tutorial guide to registration is available under the ‘Video Tutorials’ section.
Evaluation of Proposals & Assessment Criteria
- Applications for funding will be judged by GMCA officials in a consecutive three-phase process set out below.
Phase 1 Assess applications on pass/fail criteria
- All applications will be subject to an initial pass/fail test. This will assess information provided in Section A of the Application Form to confirm the eligibility and co funding criteria (as set out in Section 2 above) have been met. The criteria under consideration are:
- The applicant organisation must be a Registered Housing Provider and/or Local Authority that own and/or manage stock in Greater Manchester.
- All properties subject to the application must be existing social housing as defined by the Housing and Regeneration Act 2008 (sections 68-70) regardless of archetype and be located in Greater Manchester
- The application must meet the co funding requirement of 25% or greater.
- Applications are required to pass all the criteria to move to Phase 2. Applications that fail any of the Phase 1 criteria will not be considered for funding.
- Applications that have not fully answered any steps may be contacted through The Chest to fill in any gaps in applications.
Phase 2 Score bands 1-6 on Strategic fit and Delivery assurance
- Applications for Bands 1-6 will be judged on a linear scale (0, 1, 2, 3, 4, 5) for Strategic fit, Delivery assurance, and evidence of HHSRS Category 1 or 2 damp and mould hazards. For each question applications must score the minimum threshold of 3, scoring below 3 is a fail and greater than 3 is a pass.
- This assessment looks at information provided in Section C of the Application Form and the supporting Supplementary Tables and Annexes.
- Given the serious nature of Category 1 and 2 damp and mould hazards the funding of measures for properties in Bands 1-3 will be prioritised before properties in Bands 4-6.
- Bands 1-3 applications that score 3 or greater on all requirements will be allocated funding.
- Bands 4-6 applications that score 3 or greater on all requirements will go forward to Phase 3 for assessment of Value for Money.
Phase 3 Bands 4-6 Value for Money assessment
- The process will test whether proposed measures are cost effective and aligned with the SHQF objectives to inform the allocation of any remaining funding following allocation to Bands 1-3.
- Applications for Bands 4-6 properties will be judged on a linear scale (0, 1, 2, 3, 4, 5) for Value for Money. Applications must score the minimum threshold of 3, scoring below 3 is a fail and greater than 3 is a pass.
- This assessment will look at information provided in Section C of the Application Form and the supporting Supplementary Tables and Annexes.
- Applications that meet the minimum threshold (score 3 or greater) go forward to a moderation panel.
- The process will also produce a ranking of applications against average cost per home where tenants have reported damp and mould issues and surveys have identified remedial action required for each Band 4-6.
- The moderation panel will use the Value for Money assessment and ranking in allocating funding, with the aim of addressing as wide a range of applications as possible.
- Allocation to Bands 4-6 will be sequential. Band 4 properties will receive allocation first. If funding remains then Band 5 properties will receive allocation next. Finally, if funding remains Band 6 properties will receive allocation.
- Assessment criteria:
- Strategic fit: How well the proposal fits with the aims, desired outcomes and eligibility criteria of the SHQF competition.
- Criteria weighting: 30%
- Questions in application form relating to criteria (weighting): Q1.1b (10%), Q1.1c (10%), Q1.2 (10%)
- Bands the criteria apply to: Bands 1-6
- Delivery assurance: An assessment of the feasibility and credibility of the project including detail on delivery forecasts, key milestones and the planning and scheduling process; resource capability and capacity and organisational design; risk and issues management; management of conflict of interests; commercial agreements and procurement activities including supply chain management.
- Criteria weighting: 40%
- Questions in application form relating to criteria (weighting): Q2.3 (8%), Q2.4 (8%), Q2.5 (8%), Q2.6 (8%), Q2.7 (8%)
- Bands the criteria apply to: Bands 1-6
- Value for Money: The proposed measures to be installed and their costs; a cost breakdown of the project; and justification for the cost of the project.
- Criteria weighting: 30%
- Questions in application form relating to criteria (weighting): Q3.2 (30%)
- Bands the criteria apply to: Bands 4-6
- Strategic fit: How well the proposal fits with the aims, desired outcomes and eligibility criteria of the SHQF competition.
- After assessment, there will be a moderation process and a portfolio review, including review of the suitability of applications that score well overall but poorly on one or more individual question(s). GMCA may liaise with Applicants to address any gaps in information provided as part of their application.
- GMCA will fund as many applications judged as suitable as possible within the budget available, while reserving the right to adjust our approach in light of the scale and pattern of bids received.
- GMCA reserves the right to review the distribution of funding across Greater Manchester comparative to the number of social homes per district and allocate funding in line with this. In the event that GMCA receives more funding applications than funding available, GMCA may place eligible applications on a reserve list to be contacted about any future grant funding opportunities. GMCA reserves the right to terminate the competition at any time, and may decide not to award any grants, or to award grants for less than the total funding available under SHQF. Depending upon the nature of applications received, GMCA reserves the right to vary the allocation of grant funding, taking account of the scheme criteria and the number and size of Value for Money proposals it receives.
- GMCA will not be liable for any costs incurred in the preparation or submission of applications.
[1] The housing health and safety rating system (HHSRS) is a risk-based evaluation tool to help local authorities identify and protect against potential risks and hazards to health and safety from any deficiencies identified in dwellings. It was introduced under the Housing Act 2004 and applies to residential properties in England and Wales. This assessment method focuses on the hazards that are present in housing.
[1] The housing health and safety rating system (HHSRS) is a risk-based evaluation tool to help local authorities identify and protect against potential risks and hazards to health and safety from any deficiencies identified in dwellings. It was introduced under the Housing Act 2004 and applies to residential properties in England and Wales. This assessment method focuses on the hazards that are present in housing.