FAQs — Applying to the Key Worker Homes Fund
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How do I apply to the Key Worker Homes Fund?
1. Make an Expression of Interest
Start your application with a 4 minute online Expression of Interest form, here.
Local Authorities and Housing Associations are invited to make an Expression of Interest in the funding and technical expertise offered by the Key Worker Homes Fund. Expressions of Interest are open between 06 January 2021 and 10 March 2021.
It is recommended, but not compulsory, in the expression of interest form to include some further information to help the Technical team assess your Expression of Interest, such as: potentially suitable sites; likely project team; experience in delivering homes with MMC (Modern Methods of Construction).
2. Book a feasibility meeting
When we receive your expression of interest, we will check that you are eligible. You will then be invited to a series of meetings with the Technical Team, the main deliverable of which will be a Feasibility Study. Commissioners of the Key Worker Homes Fund judge these feasibility studies and allocate funding and expertise to successful projects.
3. Join the online event series
Applicants are encouraged to learn more about the Key Worker Homes Fund by joining the online event series, running between December 2020 into Spring 2021. You can register for the next event and watch the previous events here.
Am I eligible to apply?
The Secretariat will assess eligibility once the Expression of Interest form has been received from the applicant. The basic eligibility criteria are:
1) The individual making the application must be employed by, or an agent of, a Local Authority or Housing Association (collectively referred to as ‘registered providers’) which owns properties and/or land in London.
2) Only one application will be accepted from each organisation.
What are the key dates?
The online event series runs once a month from December 2020 into Spring 2021. Find the dates for the next event here.
On 06 January, Expressions of Interest in the Key Worker Homes Fund open.
On 16 April, Expressions of Interest in the Key Worker Homes Fund close.
During April and May, eligible applicants will be notified and invited to book a meeting with the Key Worker Homes Fund Technical team.
In June, Feasibility Studies will be sent to the Commissioners for judging.
In the autumn, the Commissioners will announce the successful projects.
Further details will be sent to eligible applicants.
What information do I need to make an expression of interest?
In the Expression of Interest form, you will be asked to give:
- Confirmation that you are a Local Authority or Housing Association, or their agent.
- Your full name and job title, your email address and mobile phone number.
In the Expression of Interest form, you will also have the option to add information, including:
- the address of one or more potential sites for airspace development in London.
- whether your organisation has delivered homes using Modern Methods of Construction (MMC) previously.
- which colleagues you will work with on this project.
- which of the following three categories your development ambition falls within 15–50 homes, 51–100 homes, 100 or more homes.
If you are not in a position to provide this additional information at this stage, it’s no problem. We will be in touch when we receive your Expression of Interest form to arrange an initial call and briefing. This conversation will set you up with all the information you need ahead of the feasibility meetings.
How should I choose which buildings in my (organisation’s) portfolio to nominate?
The basic criteria for a suitable building are that it:
- is in London.
- has a flat rooftop.
- is not Grade I or Grade II listed building.
- has the potential for access to the roof either via the existing internal circulation or externally from land owned as part of the building.
- is owned (and ideally managed) by the applicant.
A detailed site selection guide will be sent to you once you have made an Expression of Interest, and your eligibility has been approved.
How will the Secretariat assess the sites I nominate?
The Key Worker Homes Fund Secretariat makes use of Skyroom’s advanced geospatial mapping software. It captures several data relating to new sites. This is underpinned by data set provided by organisations such as Ordnance Survey, HM Land Registry, Valuation Office, EnviroCheck, and other third-party mapping resources.
Hundreds of different criteria and data points are consolidated into 38 key criteria which are then analysed by Skyroom’s investment, technical and operations teams.
What will the Secretariat assess in the sites I nominate?
This assessment screens for:
- Fundamental constraints that make airspace development either impossible or disproportionately expensive; and
- Major opportunities to optimise the value of the project, such as local planning policy, massing, precedents in the area, key worker need in the area, property values, etc.
What kind of sites are suitable?
Many different building typologies are suitable, including:
- Block of flats — low
- Block of flats — high
- Residential Estate
- Community-purpose
- Commercial (office or other)
- Carpark
Here’s an example of a block of flats — low.
St James’s Road, SE1
- Three-storey residential building in Southwark built of brick and concrete.
- The airspace development will add 15 new homes for key workers over four storeys.
- 1,000sqm will be added to the building.
- Structurally independent of the existing building by means of an exoskeleton.
- Read more in the Architects’ Journal, or Wallpaper*.
What are the feasibility meetings?
Feasibility meetings are workshops between the applicant and the Key Worker Homes Fund Secretariat which form part of RIBA Stage 0. The objective is to establish the project proposal and create a feasibility study that will be shared with the Board of Commissioners for judging. At least one representative from the applicant’s organisation is required to take part in the feasibility meeting. The Technical team are looking for a high level of involvement from the applicant.
The Key Worker Homes Fund Technical team will work with you to assess the potential of the site, by analysing the site against Skyroom’s methodologies for airspace development, such as for massing:
What is required of me during the feasibility meetings?
During the meetings, applicants will be asked to provide insights and issues relating to their proposed building(s). This will inform the resulting feasibility study. The applicant will be invited to share a short statement to summarise their aspiration for the project and its potential to provide homes for key workers.
A building information request form will be issued to eligible applicants. The applicant will be required to bring at least the following documents:
— Floor plan(s)
— Title deed(s)
— Surveyor report(s)
Can I receive funding without taking part in a feasibility meeting?
No. Applicants must take part in feasibility meetings to be considered for funding. The allocation of funds by commissioners and the secretariat is based on the feasibility studies resulting from the meetings.
Can I arrange a feasibility meeting to explore a potential project but not apply for funding via the Key Worker Homes Fund?
Please get in touch to discuss this further.
Is the feasibility study free of charge?
Yes. The cost for the feasibility meeting s nil (£0) to the applications. The substantial costs associated with running the feasibility meeting are covered by the Key Worker Homes Fund’s Secretariat.
What does the Feasibility Study involve?
The Feasibility Study will present how your nominated site(s) could deliver key worker homes through airspace development. The Feasibility Study will include a:
- Building assessment determined by local policy
- Building assessment determined by national policy
- Site-specific evaluation of airspace development potential
- Site-specific evaluation of prospective development business model
Will a costed development appraisal be included in the feasibility study?
Yes, this will guide the allocation of Key Worker Homes Fund resources.
Will key workers be involved in the feasibility studies?
Yes. Skyroom is committed to bringing a new approach to development — one that includes existing communities and future residents in the process. Representatives of the future residents of the Key Worker Homes Fund developments will be included in the feasibility study process, contributing specific needs of this sector to the development process.
This reflects the triple bottom line company structure, to underpin a positive social, environmental and economic impact in everything we do.
How will my application be assessed?
Using the applicant’s feasibility study, the Key Worker Homes Fund Commissioners will assess the studies against a standard assessment framework. It is important to keep this in mind during the feasibility study meeting.
All key worker homes must be affordable, beautiful and sustainable. The criteria therefore are:
1. Affordability
Does the application prioritise homes to key workers?
Does the application plan for homes of different sizes, suitable for key workers at different stages of life?
Does the application plan for homes accessible to key workers on the salaries in the local area?
2. Beauty
Does the application propose improvements to the quality of the building and its surrounding space?
Does the application propose an airspace extension in fitting with the townscape and materiality?
Does the application propose generous internal dimensions and additional green amenity spaces?
3. Sustainability
Does the application propose improvements to the insulation of the building below the airspace development?
Does the application commit to using Modern Methods of Construction (MMC) to reduce the embodied carbon cost in construction?
Does the application make it possible for more key workers to live near to where they work?
Read more about Skyroom’s approach in Rise Up.
What happens after the successful project(s) is announced?
In June 2021, all participants and supporters of the Key Worker Homes Fund will be invited to celebrate the announcement of the successful project(s). The successful project(s) will start in 2021 and take several years depending on the scale of the development.
How do successful applicants partner with the Key Worker Homes Fund?The successful projects will be carried forward by the lead applicants and the Key Worker Homes Fund as a Joint Venture project for up to five years. Each project will be managed through a special purpose vehicle (SPV) subsidiary structure so as to manage and contain risk.
What costs does the funding cover?
The successful projects will be carried forward by the lead applicants and the Key Worker Homes Fund Secretariat as a Joint Venture project for up to five years. Each project will be managed through a special purpose vehicle (SPV) subsidiary structure to manage and contain risk.
The value of the funding is used in the delivery of the successful development project(s). The Key Worker Homes Fund will cover the costs of:
— Support for project management costs.
— Third-party services for design, delivery, and development procured via the Key Worker Homes Fund.
— Costs associated with airspace development.
— Costs associated with evaluating/measuring the social impact of the proposed idea.
— Any other associated costs considered reasonable or essential by the Secretariat.
The Key Worker Homes Fund will not cover the costs of:
— Costs for activities that have already taken place
— Costs for activities outside of the project management programme
— Fees for academic or vocational courses/tuition fees/examinations
— Personal expenses incurred during activity delivery
— Any other costs considered unreasonable or non-essential by the Secretariat
Cost accounting is managed by cost consultant Jackson Coles, and accountancy and audit firm Smith and Williamson.
Who owns the new homes once they are built?
Neither the Key Worker Homes Fund, nor Skyroom, take ownership of the freehold, land, airspace or new homes. The right of first refusal will always be granted to the landlord. At the start of the project, the partners will agree an approach to the exit of the project. The applicant will have a choice to buy the new homes on completion, to sell some and hold some, or whether to sell all the new homes to another Registered Provider.
What are the terms and conditions of the funding?
The Key Worker Homes Fund’s duration is expected to be 10 years, with an active investment period of 5 years. Each project is managed and de-risked through a special purpose vehicle (SPV) subsidiary structure. Each project aims to make a return on equity. These returns will, collectively, build up over the ten-year lifetime of the Key Worker Homes Fund to provide a return for the investors.
What are the objectives of the Key Worker Homes Fund?
The Key Worker Homes Fund has three primary objectives:
- Improve the lives of London’s key workers by delivering hundreds of new, affordable, sustainable, beautiful homes for key workers, near where they work (ESG metric).
- Support London’s Local Authorities and Housing Associations achieve their housing targets by using innovative business models and technologies to unlock the airspace above their existing buildings (ESG metric).
- Generate stable and growing returns for the Fund’s Limited Partners through investment in Public-Private Partnerships and Joint Ventures formed between Skyroom and London’s Local Authorities and Housing Associations (financial metric).
How will the Key Worker Homes Fund’s Secretariat support my application?
The Key Worker Homes Fund Secretariat will provide applicants with a site selection guide by email once we have received your Expression of Interest form and confirmed that your application meets the basic eligibility criteria.
Applicants can ask questions at any time by contacting the Key Worker Homes Fund at fund@skyroom.london.
The online event series is designed to share the mission of the Key Worker Homes Fund and communicate important steps about applying for the funding and technical expertise available through the £100m fund. Register for the next event here.
Find out more about: the Key Worker Homes Fund | Skyroom | our white paper, Rise Up
