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Affordable Housing Supply Programme: process and procedures MHDGN 2022/02

This Guidance Note supersedes MHDGN 2020/02 and is for local authorities and Registered Social Landlords. It details the process for planning the delivery of the majority of grant-funded homes through the Affordable Housing Supply Programme.


Payment of grant

Non-TMDF authorities

The phased grant payment process for grant recipients in non-TMDF authorities will operate in the following way:

  • Each tender offer of grant letter will request that the grant recipient provides a profile showing the estimated monthly draw down of grant payments for the duration of the project.  Grant recipients should ensure that any subsequent variations to the profile provided are notified immediately to the relevant Scottish Government area team.
  • While grant claims will normally be paid on the basis of one claim at acquisition stage, and at monthly intervals thereafter, a higher frequency of claims is permissible. 
  • Claims and all relevant back up should be submitted through the HARP system. 
  • Ordinarily, claims will only be paid on the basis of verifiable costs.  These are costs that have some form of third party verification – whether it be an invoice, ‘Statement for Settlement’ in relation to an acquisition, valuation certificate etc. 
  • It is recognised however that some grant recipients may undertake construction projects themselves, either fully in-house or by project managing contractors.  In the former case, valuations provided by in-house Quantity Surveyors will be accepted.  In the latter case, valuation certificates or invoices from contractors and suppliers should be provided.
  • Where claims cannot be certified (such as an acquisition), they will be accepted for payment on a claim by claim basis provided that an appropriate official at Director level has certified the claim.  

TMDF authorities

While the majority of the above procedures will apply to TMDF authorities, TMDF authorities may wish to implement an alternative approach to the one outlined in the second bullet point above.

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