Transitional Accommodation Capital Funding Programme

If you are using this scheme to provide awards of subsidy, you must inform the Subsidy Control Unit – email: scu@gov.wales.

This is an All-Wales scheme that all local authorities and registered social landlords (RSLs) are eligible to apply to.

The Transitional Accommodation Capital Funding Programme (TACP)

Section 58A of the Government of Wales Act 2006 and section 60 of the Government of Wales Act 2006, Part II of the Housing (Wales) Act 2014 and Part VI of the Housing Act 1996.

The Transitional Accommodation Capital Programme (TACP) was established in response to the Ukraine humanitarian response and the growing pressures on temporary accommodation where the numbers of people homeless are increasing due to the worsening cost of living crisis, as well as wider resettlement schemes.

TACP provides grant funding to local authorities and registered social landlords (RSLs) to bring forward good quality longer term accommodation at pace to support everyone in housing need (those in temporary accommodation and initial accommodation for resettlement).

Welsh Government

All local authorities and RSLs in Wales.

• Accommodation and food service activities
• Real estate activities

The scheme duration is 1 April 2023 to 31 March 2024.

Up to £120 million via the 2023-2024 TACP programme in the form of multiple individual grant awards for local authorities and RSLs.

All subsidy awarded under the scheme will be awarded by way of grant funding.

Local authorities and RSLs in Wales are eligible to apply for this grant funding for the purpose of developing or purchasing affordable housing at pace in order to support move on from temporary accommodation. This subsidy scheme is aimed purely at supporting the provision of affordable housing in Wales.

The subsidy scheme supports the following different types of project to help reduce housing pressures:

• Bring voids (empty properties owned by LAs and RSLs) back into use.
• Acquisition of existing dwellings (homes) to bring them into the social housing sector including the purchase of tenanted properties where this will prevent homelessness.
• Acquisition of new build properties (for example straight from a developer) to bring more homes into the social housing sector.
• Acquisition of larger houses (existing dwelling or new builds) specifically to meet the needs of large households currently in temporary accommodation including families being supported through resettlement schemes.
• Acquisition and/ or development of other properties (e.g. offices, hotels, care homes, student accommodation) to provide more longer-term accommodation.
• Demolition and rebuild of properties to deliver homes that meet local housing needs to reduce numbers in temporary accommodation and prevent homelessness.
• Use of modular accommodation on land that is being used on a meanwhile basis (i.e. earmarked for future development).
• Purchase of Housing of Multiple Occupancy (HMOs) to convert into family accommodation or self-contained flats at point of purchase or purchasing of HMOs for shared housing use which cannot be converted (either at point of purchase or in the future).
• Temporary supported accommodation to deliver better quality temporary accommodation and help reduce housing pressures.

All projects applying for funding must meet the TACP minimum standards for design and safety.

The Welsh Government currently calculates its Social Housing Grant levels using the Standard Viability Model (“SVM”). The SVM is a net present model that demonstrates the funding gap between the cost of initial purchase/development and ongoing maintenance costs and the return from low rents for social housing.

The maximum amount of any individual subsidy per project listed in section 12 above is £9,999,999.