Registration open for Building Safety Fund

The registration process for the government’s £1 billion building Safety Fund has opened today (1st June).  This follows last week’s announcement.

The Building Safety Fund is intended to meet the capital costs of removing and replacing unsafe non-ACM cladding on high rise residential buildings which would otherwise be passed on to leaseholders.

 

Eligibility and scope

On 26th May, the Government published its prospectus, which outlines the scope of the Fund and the costs that will be covered.

The prospectus is available here.

Subject to eligibility, the Fund will meet the capital costs associated with the remediation of non-ACM cladding buildings that are found to be unsafe in that they do not meet an appropriate standard of safety and could pose a significant risk to health and safety.

Ongoing “revenue costs” such as the cost of interim measures (eg waking watch) are not eligible.

Included within the prospectus is a table which helpfully sets out indicative examples of costs that will be included, together with those that will not be covered.

The Fund will not cover:

  • non-residential buildings (eg hotels, hospitals and buildings where there are no residential leaseholders)
  • buildings under 18m in height (allowing for a 30m tolerance)
  • remediation work on buildings with non-ACM claddings systems in scope that had been committed to, or where work had started on site, prior to the Budget announcement on 11th March 2020.

Registration is open to building owners, freeholders or the responsible entity for buildings within scope that:

  • have (or may have) unsafe non ACM cladding systems as part of the external wall system
  • where there are leaseholders who would otherwise be obliged to pay for the cost of remediation through the service charge mechanism in their leases

Social housing units held in blocks owned in the private sector will be eligible as part of the relevant application for that building.

 

Register now

The registration process opens today.  It will remain open until 31st July.

Once buildings are registered, MHCLG will begin the process of working with building owners to complete any technical assessments that might be necessary to determine eligibility.  The registration process will identify whether building owners have explored every opportunity to fund remediation from sources other than leaseholders and Government funding.

Guidance and an application process for buildings which meet the technical criteria will be available by the end of July 2020.

It’s important to note that the Fund has a maximum value of £1 billion.  At application stage it will be managed on a first come, first served basis.  There is no limit to the number of registrations.

 

 

 

1 June 2020

Cassandra Zanelli

Widely recognised for her expertise in the industry, and listed among the 100 most influential people in residential leasehold management, Cass heads the team at PM Legal Services. Passionate about education and sharing knowledge, she's a regular speaker at conferences, events and seminars, having worked with leading organisations in the property management industry.

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