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Appendix AClassification Of AHBsTier classification is based on the following:n Level of housing stock, both current and futuren Extent of loan finance for developmentn Extent of business complexity based on regulatory judgement during the assessment processPlease be aware that the existence of any Housing Finance Agency (HFA) or private sector borrowing triggersreclassification to Tier 2.Additionally, if the Regulator’s view is that the business of the AHB is sufficiently complex, or the incomeespecially large due to increased ancillary elements, the Regulator may assess the AHB in a higher Tier than setout in the parameters below.A summary of the Tier categorisation is provided below. Each of the parameters under the individual Tiercategorisation should be read in order to determine the relevant level.Criteria Tier 3 Tier 2 Tier 11 Size More than 300 units 50-300 units Less than 50 units2 DevelopmentProgramme3 Borrowing fromHFA or privatefundersIf Development plansbrings total stock>300 unitsAny borrowing wheretotal stock is / will be> 300 unitsAny development planresulting in total stock

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