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MD2783 The Mayor’s Rough Sleeping Accommodation Programme 2021-24

Key information

Decision type: Mayor

Reference code: MD2783

Date signed:

Date published:

Decision by: Sadiq Khan, Mayor of London

Executive summary

The Mayor has secured further funding from the Government’s £433m four-year national fund to deliver affordable move-on homes and associated support for former rough sleepers – the Rough Sleeping Accommodation Programme (RSAP). £194.4m nationally is being made available for 2021-24, of which £66.2m (£48.3m of capital and £17.9m revenue) has been allocated to the Mayor to deliver homes and provide up to three years’ support to the residents of this accommodation.
In 2020/21, the Mayor was allocated £93.4m of RSAP funding to deliver 900 homes and provide up to four years’ support to the residents of those homes (approved in MD2687). Allocations for 903 homes were announced in October 2020 and contracting with the successful bidders is underway.
This decision seeks approval for the GLA to receive and allocate the RSAP funding for 2021-24.

Decision

That the Mayor approves:
1. receipt of £66.2m of funding from Government to support the delivery of affordable homes for rough sleepers by 31 March 2024 and the provision of up to three years of support to people housed in this accommodation;
2. allocation of the above funding of £66.2m to support the delivery of affordable homes for rough sleepers by 31 March 2024 and the provision of up to three years of support to people housed in this accommodation; and
3. the delegation of authority to the Executive Director of Housing and Land to approve funding allocations in line with decision making processes for the Affordable Homes Programme (as set out in Mayoral Decision Making in the GLA) and the MoU with central Government for the Rough Sleeping Accommodation Programme.

Part 1: Non-confidential facts and advice

1.1. The Mayor has secured further funding from the Government’s four-year £433m national fund to deliver longer-term move-on accommodation and associated support for rough sleepers – the Rough Sleeping Accommodation Programme (RSAP). £194.4m nationally is being made available for 2021-24, of which £66.2m (£48.3m of capital and £17.9m of revenue) has been allocated to the Mayor.

1.2. In 2020/21, the Mayor was allocated £93.4m of Rough Sleeping Accommodation Programme funding to deliver 900 homes and provide up to four years’ support to the residents of those homes - £57.8m of capital funding and £8.9m a year of revenue funding for four years (approved in MD2687). Four years’ funding was also allocated to support the administration of referrals and nominations (£1,194,957), for staffing (£716,247) and for legal costs (up to £200,000). Allocations for 903 homes were announced in October 2020 and contracting with the successful bidders is underway.

1.3. This fund was launched last summer, at a momentous time for rough sleeping in London. In response to the COVID-19 pandemic, the GLA, in partnership with the London boroughs, charities and the Government, took swift action to ensure the city’s rough sleepers were protected from the virus. Since March 2020, around 8,000 homeless people have been given emergency accommodation in the capital, of which over 2,200 have been housed in accommodation procured by the GLA.

1.4. The GLA and boroughs are committed to implementing the Mayor’s In For Good principle, so that everyone accommodated receives an offer of support so that they do not need to return to rough sleeping. The operation to move people on is at least as challenging as that to move everyone in and longer-term accommodation will be needed for the vast majority of those accommodated.

1.5. The current crisis underlines the importance of this funding. But it is not only needed for those in emergency accommodation as a result of the pandemic. It is also required to provide longer-term homes for those who left the streets a while ago and are currently in hostels or other supported housing and ready to move on with their lives. There is also a pressing need for longer-term homes for those who remain or arrive on the streets, particularly given predictions of increasing homelessness arising from the economic impacts of COVID-19.

1.6. Arrangements for administering the RSAP funding in London have been combined with those for the Mayor’s £50m Move On Programme (approved through MD2052, MD2467, MD2515, MD2282). The Move On Programme funding will continue to be available for homes for victims of domestic abuse, including support for those living in the properties delivered.

1.7. The GLA and MHCLG will enter into a Memorandum of Understanding (MOU) that sets out the terms of the 2021-24 RSAP funding and the responsibilities of each of the parties.

Capital and revenue funding to deliver homes and provide support

1.8. The funding is flexible and can be used for a wide variety of schemes and approaches on a capital or revenue-only basis or with a combination of capital and revenue. The homes developed through the programme will be geographically dispersed throughout the capital. A variety of different approaches will enable the fund to maximise the number of homes delivered.

1.9. A key feature of this fund is that it includes an element of revenue funding. For every home delivered with the 2021-24 funding, up to three years’ support may be able to funded. Support can be provided by the housing provider delivering the homes, an organisation partnering with the housing provider or through the Tenancy Sustainment Teams (TSTs) commissioned and funded by the Mayor. Revenue funding can also be used for other purposes, including minor repairs.

Co-production and bidding process

1.10 Funding guidance for 2021-24 will be published on the GLA’s website shortly, and the GLA and MHCLG will support organisations to co-produce bids. Bids will be assessed according to the criteria set out in the guidance. GLA and MHCLG officers will assess bids and, following peer review, make recommendations for funding allocations. The Executive Director of Housing and Land will approve funding allocations for the GLA, in line with decision making processes for the Affordable Homes Programme.

1.11. The next bid round is due to launch in March 2021. Any unallocated funds may be made available through further bid rounds or continuous bidding thereafter.

2.1. The aim of the programme is to boost delivery of affordable accommodation for rough sleepers, former rough sleepers or those at risk of rough sleeping, and to provide them with the support they need to move on and rebuild their lives.

2.1 The key objectives are:
• to ensure that as few people as possible return to the streets from emergency accommodation put in place during COVID-19. As COVID-19 remains a health risk, it is also essential that people, particularly those who are at increased risk of severe illness, are kept safe;
• to continue to ensure a response to those who remain or arrive on the streets who are at risk of COVID-19;
• to ensure longer-term accommodation and support solutions for those already in a rough sleeping pathway – enabling them to move on to independent living; and
• to free up spaces in hostels so that supported accommodation is available for those that need it.

2.2 Outcomes will include:
• access to affordable accommodation;
• improved mental and physical health, well-being and resilience;
• greater financial inclusion;
• engagement with treatment, for those with substance misuse needs;
• engagement with employment, education, training, volunteering or meaningful activity; and
• move-on to fully independent living.

3.1. Under section 149 of the Equality Act 2010, as public authorities, the Mayor and GLA are subject to a public-sector equality duty and must have ‘due regard’ to the need to (i) eliminate unlawful discrimination, harassment and victimisation; (ii) advance equality of opportunity between people who share a relevant protected characteristic and those who do not; and (iii) foster good relations between people who share a relevant protected characteristic and those who do not. Protected characteristics under section 149 of the Equality Act are age, disability, gender re-assignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation, and marriage or civil partnership status (all except the last being “relevant” protected characteristics).

3.2. Of those seen rough sleeping in 2019/20:
• 52 per cent were non-UK nationals;
• six per cent were from Gypsy/Romany/Traveller communities;
• 47 per cent had a mental health need;
• 17 per cent were women;
• most of those seen rough sleeping (59 per cent) were in the 26-45 age group;
• eight per cent were under 26 years old;
• 11 per cent were over 55; and
• one person was under 18.

3.3. As those with protected characteristics of race and disability are over-represented among rough sleepers, the proposals in this paper are likely to have positive impacts on BAME Londoners and those with disabilities. As the majority of people sleeping rough are men, more men than women are likely to benefit from this provision.

Key risks and issues

4.1 Key risks are set out in the following table:

Risk description

Rating

Mitigating action

The funding could be under-subscribed, with reasons for this including:

      • uncertainty and delays to development from COVID19 limiting providers’ appetite to take up the full amount of funding available
      • poor quality bids
      • having fewer years’ support funding available than in the first round of RSAP
      • the first round of RSAP exhausting most/all of the pentup potential for this type of provision
      • a short delivery timeframe
      • unrealistic delivery targets required by the Government mean that grant rates are too low to enable delivery

Medium risk

The programme is being promoted widely among investment partners and increased engagement will take place during the forthcoming bidding round(s) with G15 members and London boroughs. Any issues that may deter bidding will be promptly addressed.

While there continues to be some uncertainty for development due to COVID-19, officers will work with providers to identify and mitigate potential risks.

GLA officers are working in partnership with MHCLG officials to promote the programme, co-produce and assess proposals.

The GLA is encouraging bidders to submit longer term bids, to build a pipeline for future years.

The Mayor is lobbying the Government for further years’ support funding.

Completions will not be achieved within the required period set out in the MOU or schemes withdrawn and not delivered due to unforeseen circumstances

Medium risk

GLA officers will work closely with successful bidders to identify delivery risks and any potential delivery delays at the earliest opportunity and to provide additional support to overcome barriers to delivery by the end of the programme.

Support providers being provided with grant funding perform poorly

Low risk

Bids for support funding will be assessed against a range of criteria, including required skills, knowledge, expertise and capacity to provide appropriate and high-quality support. Robust grant agreements, rigorous and thorough GLA monitoring and oversight, and excellent relationships between the GLA and support providers will identify risks of poor performance so they can be rectified quickly and appropriately.

Links to Mayoral strategies and priorities

4.2 Since 2016, the Mayor has coordinated efforts through his Life off the Streets taskforce to identify, implement, lobby for, and monitor the effectiveness of interventions to tackle rough sleeping. In his London Housing Strategy, the Mayor set out his aim that there should be a sustainable route off the streets for every rough sleeper in London. In June 2018, he published his Rough Sleeping Plan of Action which outlines the steps that need to be taken by City Hall, the Government, and others to achieve this.

4.3 Since taking office, the Mayor has been expanding the pan-London rough sleeping services the GLA funds and commissions. These services collectively form his Life off the Streets programme. They are services for rough sleepers, or initiatives to tackle rough sleeping, that cannot or would not be provided at a London borough level, as they are pan-London or multi-borough in their remit.

4.4 The objectives of this proposal are in line with the Mayor’s London Housing Strategy policy 7.2C: ‘The Mayor will work with councils and others to improve the provision of accommodation for rough sleepers.’ Consultations and impact assessments

4.5 The London Housing Strategy sets the strategic framework underpinning the Rough Sleeping Accommodation Programme and was subject to public consultation and equalities impact assessments in 2017-2018.

4.6 The Rough Sleeping Plan of Action was developed with the support of the Mayor’s Life off the Streets taskforce. Conflicts of interest 4.7 The officers involved in the drafting and clearance of this form have identified no known conflicts of interest.

5.1. This decision requests approval to receive and allocate £66.2m (£48.3m of capital and £17.9m of revenue) from MHCLG to deliver homes and provide support for people in those homes.

5.2. The indicative profile of the funding from MHCLG and spend is set out here:

2021/22

2022/23

2023/24

Total

Capital (£m)

34.3

14.0

-

48.3

Revenue (£m)

4.7

6.6

6.6

17.9

Total (£m)

39.0

20.6

6.6

66.2

6.1. The foregoing sections of this report indicate that the decisions requested of the Mayor fall within the statutory powers of the Authority to promote and/or to do anything which is facilitative of or conducive or incidental to social development within Greater London and in formulating the proposals in respect of which a decision is sought officers have complied with the Authority’s related statutory duties to:
(a) pay due regard to the principle that there should be equality of opportunity for all people;
(b) consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom; and
(c) consult with appropriate bodies.

6.2. In taking the decisions requested of him, the Mayor must have due regard to the Public Sector Equality Duty; namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, and to advance equality of opportunity between persons who share a relevant protected characteristic (race, disability, gender, age, sexual orientation, religion or belief, pregnancy and maternity and gender reassignment) and persons who do not share it and foster good relations between persons who share a relevant protected characteristic and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Mayor should have particular regard to section 3 (above) of this report.

Expenditure of funding from central government

6.3. Decisions 1 and 2 of this decision form seek the approval to receive a total of £66.2m in funding from central government and the approval for expenditure of that funding. The officers are reminded to ensure that they comply with (a) any conditions imposed by central government on the use of that funding; and (b) the requirements of the Authority’s Contracts and Funding Code. Furthermore, the terms of all agreements entered into and commitments made in respect of the programme must not have the effect of fettering the discretion of any successor administration, considering in particular the London elections taking place in May 2021. To that end, all funding agreements must include, inter alia, appropriate break clauses.

6.4. Furthermore, where funding is to be granted by the GLA for the provision of low cost rental accommodation, it should be noted that sections 31 to 36 of the Housing and Regeneration Act 2008 (as amended by section 333ZE of the Greater London Authority Act 1999) will apply. This includes the requirement that the Authority impose a condition ensuring that a registered provider of social housing be the landlord at the time when the accommodation is made available for rent.

Delegation

6.5. Any function exercisable by the Mayor on behalf of the Authority may also be exercised by a member of the Authority’s staff albeit subject to any conditions, which the Mayor sees fit to impose. To this end, the Mayor may make the requested delegation to the Executive Director of Housing and Land, if he so chooses.

7.1. A bidding round is due to commence in March 2021. Bid assessment and moderation will be undertaken by GLA and MHCLG officers and recommendations made to a joint peer review group for funding allocations thereafter. The Executive Director of Housing and Land will approve funding allocations for the GLA, in line with decision making processes for the Affordable Homes Programme.

7.2. The GLA will enter into grant agreements with successful bidders and will monitor and performance manage successful projects.

7.3. The GLA and MHCLG will enter into a Memorandum of Understanding (MOU) that sets out the terms of the 2021/24 funding and the responsibilities of each of the parties.

Activity

Timeline (indicative)

Publication of funding guidance and launch of bidding round

March 2021

Co-production of bids

March-May 2021

Bid deadline

May 2021

Moderation of bids

June 2021

Funding allocations bidding round announced

June 2021

Further bidding rounds/continuous bidding, if needed

TBC

Delivery of homes – starts on site

By 31 March 2024

Delivery of support

Up to three years from the first letting

Signed decision document

MD2783 Rough Sleeping Accommodation Programme 2021-24

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