Non-HRA PFI Amendments to the Payment Mechanism
Due to the difference in delivery of Non-HRA PFI projects in comparison to HRA PFI projects, the payment mechanism will not be fully transferable.
The following table highlights those clauses within the HRA PFI payment mechanism which will need amending or removal in order to comply with the requirements of a Non-HRA project.
HRA PFI PPM Item | Non HRA Amendment | Revised Drafting (if required) |
As Non HRA projects are for the provision of New Build dwellings, the payment mechanism should only include one Availability Standard. | the Availability Standard for the Dwellings as set out in Section [X] of the Output Specification | |
As there will only be one Availability Standard, the notion of initial will not be required. | Deletion of all references to initial standards | |
Certificate of Availability (Initial) | As there will only be one Availability Standard, the notion of certifying the initial standard will not be required. | Deletion of all references to initial standards |
Leaseholder | As Non-HRA projects are not owned by the Local Authority who has secured tenants nomination rights on the dwellings, there will be no reference required for services to leaseholders. | Deletion of all references to leaseholders |
As changes to the number of dwellings within the project will not require any compensation payments to the provider by the Local Authority as the dwellings are in the ownership of the provider. | ||
Dwelling Charges | Only "Full Annual Rented Dwelling Charge" will apply. | |
As the Unitary Charge paid by the Local Authority to the provider will generally relate to the capital element of the project only (i.e. the operational costs of the project are to be serviced through the rental income streams that flow directly to the provider), it may be appropriate for the charge per dwelling to be fixed to a higher degree for the duration of the project or possibly even entirely fixed, which would eliminate the need for references to indexation. | Deletion of all references for indexed element of the Unitary Charge (Clauses 2.6-2.9) where the Contractor is able to fix all of the unitary charge. | |
Leaseholder Recovered Monies is not required within the calculation of the Net Monthly Payment. | ||
Calculation of Initial Services Dwelling Charge not required | Deletion of Clause 2.4 and removal of ISDC from the formula in Clause 2.3 | |
Calculation of Full Services Dwelling Charge will apply to all Dwellings without Leaseholders | FSDC = ∑ [FARDC/Da x Dn] | |
Deletion of reference to Initial Unavailability Deduction |