eh81 housing supply/affordable housing

STIRLING COUNCIL
THIS REPORT RELATES
TO ITEM 7
ON THE AGENDA
ENVIRONMENT AND HOUSING
COMMITTEE
HOUSING AND CUSTOMER
SERVICE
6 FEBRUARY 2014
NOT EXEMPT
HOUSING SUPPLY/AFFORDABLE HOUSING
1
SUMMARY
1.1
On 1 October 2013 the Scottish Government notified the Council that a
further £598k would be added to the Council’s Resource Planning
Assumption for 2013-2015 bringing the total funding for new projects in
Stirling to £5.680m.
1.2
On 29 October 2013 the Resource Planning Assumption for 2015/16 was also
increased to £3.515m, a considerable increase on the £1.991m previously
approved.
1.3
This has resulted in further consideration and a number of changes to the
projects previously agreed for Stirling’s Strategic Housing Investment Plan.
1.4
Members of the Strategic Housing Investment Plan (SHIP) Review Group,
Housing Advisory Group and the Strategic Housing Forum have now
considered and made recommendations on the proposed changes as
follows:•
Station Square
The 53 properties at Station Road should be purchased as part of the
NHT Stirling Variant building programme. This will reduce direct cost to
the HRA by around £7m and free up the Scottish Government grant
funding totalling £1.11m to be spent to support other projects. Overall this
switch will allow an additional 42 units to be provided by December 2015.
•
Murray Court, Fallin
After negotiation, an ‘ in principle’ agreement has been reached to
purchase 12 flats and 1 house from a developer in Fallin on completion of
the properties in March 2014. This project will require £390k of funding
freed up from Station Square.
•
Unfunded properties within the approved programme
The current Stirling Council new build programme includes 9 properties
that are not currently funded by the Scottish Government. £318k of the
funding freed up from Station Square will reduce borrowing on the HRA by
a similar amount and improve the affordability of these developments to
the HRA.
•
Additional purchases of second hand properties to assist those impacted
by the under occupancy charge
The remaining £402k will be available to fund a number of second hand
purchases. As the grant usually approved for this is £20k per house, this
should assist with the funding of a further 20 houses.
•
Laurelfields, Drymen
The developer of the site at Gartness Road, Drymen has confirmed that
they are unable to develop this site to meet the timescales required under
the conditions of the Scottish Government grant.
An ‘in principle’ agreement has therefore been reached with the private
developer of an alternative site at Laurelfields, Drymen to purchase 4 flats
and 6 houses for social rent on completion by March 2015. Potentially a
further 8 flats for mid market rent to be purchased by Steadfast Homes by
December 2015 will also included in the development.
•
Steadfast Homes
Old PO Site, Callander - Following discussions with the National Park
planners and Rural Stirling HA, it is proposed that the Council will proceed
with the purchase and “back to back” disposal to Steadfast Homes of 23
flats in Callander through the NHT Stirling Variant programme.
An ‘in principle’ agreement has been reached with the private developer to
purchase the 23 flats and the developer has confirmed that they will be
completed by March, 2015 which is within the required timescale.
•
Forth HA – development of sites at Adamson Place, Cornton and
Cultenhove Road, St Ninians
As a result of the increased grant now available from the Scottish
Government, Forth HA has confirmed that it has capacity to bring their
proposed developments in Cornton and Cultenhove forward in the
Strategic Local Programme.
Under the terms of the regeneration agreements for both Cornton and
Cultenhove, it has been agreed that the Council will transfer the land to
Forth HA for a nominal or NIL value.
1.5
The Scottish Government has confirmed that these changes would be
acceptable.
1.6
The property purchased at 2 Linden Avenue is now ready for occupation and
is intended to be transferred to Steadfast Homes for Mid Market Rent.
1.7
2
The Environment and Housing Committee is invited to approve these
changes to the revised Strategic Housing Investment Plan.
RECOMMENDATIONS
The Environment and Housing Committee agrees:-
3
2.1
to note that the Resource Planning Assumption for new projects has now
been increased to £5.680m for 2013-2015 and £3.515m for 2015/16;
2.2
to approve the changes to the Strategic Housing Investment Plan identified at
Paragraph 3.4 in the report;
2.3
to approve the acquisition of the properties at Murray Court, Fallin,
Laurelfields, Drymen to provide new Council housing at a price to be agreed
by the Head of Housing and Customer Service and the Head of Assets and
Support;
2.4
to approve the acquisition and back to back disposal to Steadfast homes of
23 flats on the site at Old Post Office Callander and 8 properties on the
Laurelfields, Drymen;
2.5
to approve the transfer of land at NIL or nominal value to Forth HA for their
developments at Cornton and Cultenhove; and
2.6
to approve the transfer of 2 Linden Avenue to Steadfast Homes at a price to
be agreed by the Head of Housing and Customer Service and the Head of
Assets and Support.
CONSIDERATIONS
3.1
The Council submitted its Strategic Housing Investment Plan to the Scottish
Government in March 2012. This is the Council’s key statement concerning
housing development priorities. The Council was subsequently asked to
submit a Strategic Local Programme identifying the project priorities for
2012/13 to 2014/15.
3.2
On 8 May 2012 the Scottish Government issued Stirling’s Resource Planning
Assumption for 2012/13 to 2014/15, which provided £2.348m of new money
for local programmes. There have been numerous increases to this funding
resulting in the latest increase announced on 1 October 2013 that resulted in
a Resource Planning Assumption for new projects for 2012-2015 of £5.680m
and £3.515m for 2015/16.
3.3
This, together with further consideration of the Strategic Housing Investment
Plan, has resulted in a number of proposed changes to the projects.
3.4
Members of the Strategic Housing Investment Plan Review Group have now
considered and made recommendations as follows:•
The acquisition of 12 flats and 1 house at Murray Court, Fallin
The Strategic Housing Investment Plan included the development of 53
flats at Station Road. The original proposal for these properties was that
37 would receive grant assistance from the Scottish Government totalling
£1.110m and the remainder would be purchased by Steadfast Homes. All
properties are for mid market rent. However, it has now been agreed that
it would be more appropriate for the flats to be provided through the NHT
Stirling Variant programme and to be let as mid market properties by
Steadfast Homes.
The Scottish Government has confirmed that this change would be
acceptable and that the £1.110m grant can be transferred to alternative
projects.
Negotiations with the developer in Fallin has resulted in an ‘in principle’
agreement for the purchase of the 13 properties. The developer has been
willing to make changes to the layout and specification to meet specific
Council requirements. The development has already started on site and
the developer has confirmed that construction will be completed by March
2014. The development will receive £390k grant assistance from the
Scottish Government. The purchase price for these properties will be
approved by the Head of Housing and Customer Service and the Head of
Assets and Support.
It is also proposed that the funding from Station Road provides grant
assistance for 9 bungalows in the Council’s bungalow programme that do
not currently have Scottish Government funding. This will provide an
additional bungalow in the developments in Cornton, Riverside and Plean,
two in Raploch Site 4 and four in Cowie. This will require £318k of the
available funding.
The remainder of the Station Road funding totalling £402k will provide
sufficient funding to assist with the purchase of a further 20 second hand
properties.
•
The acquisition of 4 flats and 6 houses at Laurelfields, Drymen
The Strategic Housing Investment Plan included the development of 10
properties at Gartness Road, Drymen to be completed by March 2015.
However, the developer has now confirmed that they will be unable to
commence this development within the timescales required.
A charrette held in the village by Loch Lomond and Trossachs National
Park Authority identified a site at Laurelfields, Drymen as the next priority
site for housing development.
After negotiation with the developer an ‘in principle’ agreement has been
reached for the purchase of the 4 flats and 6 houses for social rent. A
further 8 flats could potentially be provided on the site for acquisition by
Steadfast Homes for mid market rent. The developer has agreed to
redesign and change the specification for the properties to meet Council
requirements and has confirmed that the social rented properties can be
completed by March 2014 and the mid market rented flats by December
2015 which both meet the required timescales. The purchase price for
these properties will be agreed by the Head of Housing and Customer
Service and the Head of Assets and Support.
•
Steadfast Homes - Old PO Site, Callander
Rural Stirling HA intended entering into a design and build contract with
the developer of the Callander site for the provision of 4 flats. The
remainder of the flats were either for private sale or purchase by the
Council under the NHT Stirling Variant programme.
Following discussions with the National Park planners and Rural Stirling
HA, it is proposed that the Council will purchase all 23 flats from the
developer. This will allow Rural Stirling HA to prioritise their development
in Doune in 2013-2015 where a further 14 properties will be provided.
In the Callander site, the developer has agreed to redesign and change
the specification for the 23 flats to meet Council requirements and has
confirmed that the flats will be completed by December 2015 which meets
the required timescale.
It is therefore proposed that the flats in Callander and the 8 flats in
Laurelfields, Drymen be purchased through the NHT Stirling Variant
programme. This is likely to involve acquisition by the Council and “back
to back” sale on to Steadfast Homes.
•
Forth HA – development of sites at Adamson Place, Cornton and
Cultenhove Road, St Ninians
As a result of the increased grant now available from the Scottish
Government, Forth HA has confirmed that it has capacity to bring their
proposed developments in Cornton and Cultenhove forward in the
Strategic Local Programme.
Under the terms of the regeneration agreements for both Cornton and
Cultenhove, it has been agreed that the Council will transfer the land to
Forth HA for a nominal or NIL value.
3.5
The house at 2 Linden Avenue was purchased in 2012 as a vacant and
heavily vandalised shell. The property has now been fully renovated and is
ready for habitation. As the property has a number of unusual features and in
order to maximise our income it is proposed that it be transferred to Steadfast
Homes in return for a receipt based on the market value. As with other
transactions the sale price will be approved by the Head of Housing and
Customer Service and the Head of Assets and Support.
3.6
The property has single glazed timber windows in keeping with the rest of the
building and the architectural style. The property also has a large garden area
adjacent to a public lane and a driveway opening directly on to dual
carriageway. The allocation process for Mid Market rent would ensure that
applicants were accepting of the property and its various features.
3.7
These proposals have also been considered by the Housing Advisory Group
and the Strategic Housing Forum.
4
POLICY/RESOURCE IMPLICATIONS AND CONSULTATIONS
Policy Implications
Equality Impact Assessment
Strategic Environmental Assessment
Single Outcome Agreement
Diversity (age, disability, gender, race, religion, sexual orientation)
Sustainability (community, economic, environmental)
Effect on Council’s green house gas emissions
No
No
Yes
Yes
Yes
Strategic/Service Plan
Existing Policy or Strategy
Risk
Resource Implications
Financial
People
Land and Property or IT Systems
Consultations
Internal or External Consultations
Yes
Yes
No
Decrease
Yes
No
Yes
Yes
Equality Impact Assessment
4.1
Following a scoping exercise as part of an Equality Impact Assessment and
for the same reasons as the Scottish Environment Assessment (below),
Stirling Council has decided that a full Equality Impact Assessment will not be
necessary for the Strategic Local Programme.
Strategic Environmental Assessment
4.2
The Strategic Environmental Assessment process involves scoping the
potential impacts on the environment of the outcomes that may result from
future strategies and policies. The exercise is carried out in consultation with
3 designated agencies – Scottish Environment Protection Agency, Scottish
Natural Heritage and Historic Scotland.
4.3
In future, the Strategic Housing Investment Plan and the Strategic Local
Programme will form an integral part of the Local Housing Strategy. Due to a
timing mismatch for producing the new Local Housing Strategy, this year’s
Strategic Housing Investment Plan and Strategic Local Programme are again
stand alone documents. The Local Housing Strategy as a whole will be
subject to a detailed Strategic Environmental Assessment, as will the Local
Development Plan.
4.4
As required by the Environmental Assessment (Scotland) Act 2005, Stirling
Council as a “responsible authority” for the purposes of the Act, has
determined that no Scottish Environment Assessment submission is required
for this document. This determination has been taken following feedback from
the Scottish Environment Assessment Gateway and the responses from
Scottish Environment Protection Agency, Scottish Natural Heritage and
Historic Scotland in previous years, as the situation has not changed.
Single Outcome Agreement
4.5
The Strategic Local Programme will improve the supply of social & affordable
housing.
Other Policy Implications
4.6
The policy implications are as set out in this report.
Resource Implications
4.7
The resource implications are as set out in this report and can be fully
accommodated with both the HRA and Steadfast Homes business plans.
Consultations
4.6
Detailed consultation has taken place with all the relevant partners involved in
the strategic housing planning process. This has included regular meetings of
the Strategic Housing Investment Plan Review Group chaired by the Housing
Portfolio Holder and opposition spokes persons on housing and involving
Registered Social Landlord officer and board members, the Raploch Urban
Regeneration Company and representatives from Stirling Council and Loch
Lomond and Trossachs National Park Authority planning departments. This
Group has considered and commented on the Strategic Local Programme.
4.7
Stirling’s Strategic Housing Forum/Housing Market Partnership has discussed
the Strategic Local Programme priorities.
4.8
The Housing Advisory Group has also considered and agreed the contents of
this report.
4.9
Discussions with the Scottish Government have also continued throughout
the process of preparing this document.
Tick ( )
to confirm
The appropriate Convener/Vice Convener/Portfolio Holder(s)/Depute
Portfolio Holder has been consulted on this report
The Chief Executive/Depute Chief Executive/Assistant Chief
Executive(s) has been consulted on this report
5
VW,
ME,
DG,
NB
BJ
BACKGROUND PAPERS
5.1
Stirling Council Strategic Housing Investment Plan 2012/13 to 2014/15,
March 2012.
5.2
Housing Advisory Group, Minutes of Meeting held on 7 August 2012.
6
5.3
Strategic Housing Investment Plan Review Group, Minutes of Meeting held
on 17 August 2012.
5.4
Strategic Housing Forum, Minutes of Meeting held on 23 August 2012.
5.5
Stirling Council 11 October 2012 – Funding for Affordable House Building.
Developing the Council’s Strategic Local Programme.
APPENDICES
6.1
Appendix 1 – Draft Strategic Local Programme 2013/14-2017/18.
Author(s)
Name
Designation
Telephone Number/E-mail
John MacMillan
Technical Services Manager
01786 443566
Sandra McGinley
Project Officer, Strategy and
Development
01786 443956
Designation
Signature
Approved by
Name
Tony Cain
Date
28 January 2014
Head
of
Housing
Customer Service
Service
Reference
and

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