Issue - items at meetings - Affordable Housing - Support to Principal Preferred Partner Registered Providers

Issue - meetings

Affordable Housing - Support to Principal Preferred Partner Registered Providers

 

 

Meeting: 05/10/2011 - Cabinet (Item 57)

57 Affordable Housing - Support to Principal Preferred Partner Registered Providers pdf icon PDF 109 KB

Minutes:

Members considered a report relating to:

 

(a)       the transfer of a small piece of land at Housman Close, Charford, which had previously been used for recreation purposes, to Bromsgrove District Housing Trust (BDHT) for the development of affordable housing for older people; and

(b)       the future application of the additional payment of £350 per annum (payable for six years) which Local Authorities will receive upon the completion of each unit of affordable housing developed   to be known as “enhancement for affordable homes” under the New Homes Bonus on newly developed affordable housing units.

 

It was noted that in 2006 the Cabinet had agreed to the disposal of the land at Housman Close at less than market value for the development of affordable housing for older people. This proposal had been delayed because of negotiations with the National Playing Fields Association (known as “Fields in Trust”) and it now appeared these were reaching a satisfactory conclusion.

 

It was reported that following discussions, BDHT had included in their recent bid for funding to the Homes and Communities Agency a scheme for the provision of six bungalows on the land for older people. This was on the basis that the land be conveyed for a nil capital receipt which would demonstrate the commitment of the Authority to a joint commissioning approach to the delivery of affordable housing.

 

Information had been received from the County Council Principal Valuation Officer that the cost of developing the bungalows would equate to the value of the land. The land would have no value if sold for the purpose of social housing to let. Members felt it was important to have a detailed audit trail in respect of any disposal of land at less than market value.     

 

It was reported that because of reductions in funding received, the amount of affordable housing units which BDHT would be able to build was likely to be severely reduced from the original bid which was to develop 200 units.

 

RESOLVED:

(a)       that the disposal of the recreation ground site at Housman Close, Charford to BDHT for a nil capital receipt be approved subject to (i) agreement being reached for the release of the covenant over the land in favour of Fields in Trust; and (ii) clarification being received in relation to the valuation of the land undertaken by the County Council Principal Valuation Officer to ensure the audit trail is complete;

 

(b)       that subject to consideration as part of the budget process and on an in principle basis, the additional payments for affordable homes under the New Homes Bonus be ring fenced for re-investment into the provision of affordable homes in the District; and

 

(c)        that (b) above be achieved by donating to each registered provider concerned, grant funding to be used for the provision of specific affordable housing schemes, the amounts received under the “enhancement for affordable homes” New Homes Bonus payment in accordance with the number of affordable homes built by each provider.