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MAIDSTONE BOROUGH COUNCIL
CABINET
JULY 8th 2009
REPORT OF THE CORPORATE MANAGEMENT TEAM
Report prepared by Andrew Connors
1. Affordable Housing Capital Expenditure
1.1 Issue for Decision
1.1.1 To approve
a capital allocation of £2.7m that will deliver a range of high-quality new
affordable homes across the borough in partnership with various housing
associations, as part of the council’s capital budget strategy for 2009/10 to
2011/12.
1.1.2 To note that confirmation of the level of HCA funding is still outstanding and once known may require a revision of the recommended allocations.
1.2 Recommendation of The Corporate Management Team
1.2.1 That Cabinet agrees to the allocation of £2.7m towards the cost of proposed schemes (as outlined in the Part II appendix of this report) in order to provide a range of new, high quality affordable housing schemes across the borough, in partnership with various housing associations until 2011/12, subject to the relevant planning permission being granted (where applicable).
1.2 Reasons for Recommendation
1.2.2 The council has identified high levels of housing need both through its Housing Needs Survey 2005, which identified an annual affordable housing shortfall of 962 units, and from 3,161 applicants on the housing register as at 23rd June 2009. In order to meet this need in part the council agreed through its Housing Strategy and as a key priority, to enable the delivery of decent, good quality housing that people can afford.
1.2.3 On 21 May 2009, Cabinet reviewed proposals to determine the level and distribution of capital resources required for the delivery of the council’s contribution to the Maidstone Sustainable Communities Strategy (SCS), delivery of the council’s Strategic Plan and operational business requirements for the period 2009-10 to 2011/12.
1.2.4 Cabinet
agreed the allocation of £6.3m capital resources for housing for the period
2009-10 to 2011-12. This report provides an update on those capital resources
and proposes a number of new affordable housing schemes for investment, in
order to allocate some of the uncommitted funds. This also helps to shape the
programme for delivery during the period 2009-10 to 2011-12.
1.2.5 A total
of 8 schemes have been identified which are considered the most deliverable at
this stage. The
housing associations are seeking a contribution from the council in order to
make the proposed schemes viable. There are 5 schemes which are
forecast to start on site by the end of 2009-10, with the remaining 3 schemes
forecast to start on site early 2010-11. Further details regarding each
specific new scheme proposal are provided below.
1.2.6 The
existing committed schemes and new scheme proposals, result in a total
expenditure of £5.7m leaving £600k uncommitted within the programme. There are
other planned schemes under negotiation at present, most notably with Maidstone
Housing Trust (MHT), which might require further investment from the council.
1.2.7 There is an urgency to secure funds against schemes due to increasingly limited funds available from the Homes and Communities Agency (HCA) for 2009/10 and 2010/11. Confirmation of allocations available from the council will give the housing associations the assurance they seek to be able to progress with their schemes, and enable them to submit bids to the HCA for approval in a timely fashion.
1.3 Bowling Green, Parkwood (18 units)
1.3.1 The scheme has full planning consent for 18 bungalows (10 two-beds and 8 one-beds) on the former bowling green site at Parkwood. All of the properties will be available for social rent. MHT are proposing to start on site in September 2009, in anticipation of the completion of the land transfer with the council.
1.4 Armstrong Road & Park and Ride Site (95 units + 35 units)
1.4.1 The growth point site at Armstrong Road has full planning consent for 85 residential dwellings. MHT, in anticipation of the completion of the land transfer with the council, are proposing to submit a new planning application they have been discussing with planning for a revised scheme of 95 units, consisting of 46 two-bed flats, 30 three-bed houses and 19 two bed houses. Start on site (subject to planning consent) is forecast for January 2010.
1.4.2 The
former Park and Ride site links into the overall regeneration growth point
proposals for Armstrong Road. MHT are proposing to deliver 35 units on this
site, comprising 8 two-bed houses, 15 three-bed houses, 9 two-bed flats and 3
three-bed houses. Start on site (subject to planning consent) is forecast for
September 2010.
1.5 Land to the Rear of Maidstone Fire Station, Loose Road (49 units)
1.5.1 Full
planning consent has been granted for the residential development of 122 dwellings
on land to the rear of Maidstone Fire Station, Loose Road. The development
comprises public open space, car parking and associated works, including
minimum provision for 40% affordable housing (49 units).
1.5.2 The s106 agreement has already been completed and Circle Anglia will be providing the affordable housing as a result of successful negotiations with the developers (Taylor-Wimpey). The minimum s106 affordable element consists of mixed tenure with 60% (30 units) for social rent comprising 16 three-bed houses and 14 two-bed flats, and the remaining 40% (19 units) for intermediate housing such as discounted market rent and/or shared ownership, comprising 10 three-bed houses, 8 two-bed flats and 1 one-bed flat.
1.6 Ashford Drive, Broomfield and Kingswood – Rural Local Needs Housing (18 units)
1.6.1 Broomfield and Kingswood parish council requested Action with Communities in Rural Kent to undertake a Register of Interest survey during January 2007, to update the findings of the previous housing needs survey carried out in June 2004.
1.6.2 The January 2007 survey identified that need has almost doubled with 41 households with a local connection in need of affordable housing. A local needs housing scheme of up to 23 properties was therefore recommended to meet the existing and future needs of people with a local connection to Broomfield and Kingswood wishing to remain in or return to the parish.
1.6.3 Orbit Housing Group has been selected as the RSL partner for this project, and after an extensive feasibility study of suitable and available land, and consultation with the parish council and planners, a suitable site has been identified which the landowner is willing to make available on Ashford Drive.
1.6.4 Plans for a
scheme of 18 units have been drawn up in accordance with the housing needs
survey consisting of 10 units for social rent (4 one-bed flats, 4 two-bed
houses, 1 three-bed house, 1 four-bed house) and 8 units for shared ownership
(2 one-bed flats, 4 two-bed houses, 2 three-bed houses). A detailed
application was submitted along with supporting documentation in December 2008.
The proposals have received approval from the parish council and
‘in-principle’ approval from planning services, subject to further information being
provided to enable the application to be determined.
1.7 South Street, Stockbury – Rural Local Needs Housing (8 units)
1.7.1 The Rural Housing Enabler (RHE) from Action with Communities in Rural Kent assisted Stockbury parish council to undertake a parish wide survey in 2006 to ascertain if there are shortfalls in affordable housing provision within the parish.
1.7.2 After analysing the survey results it was recommended that a scheme of up to 8 properties would fulfil the existing and future affordable housing needs of local people in Stockbury. English Rural has been selected by Stockbury parish council to be the RSL partner for the local needs housing project.
1.7.3 Following
an extensive feasibility study of suitable and available land, and consultation
with the parish council and planners, a suitable site has been identified which
the landowner is willing to make available on South Street.
1.7.4 The architects appointed by English Rural have prepared a preliminary scheme layout of 8 units consisting of 2 one-bed flats, 2 two-bed flats, 2 two-bed houses and 2 three-bed houses, which has received positive feedback from the parish council and planning. Much interest has also been shown from local residents following a consultation event held in the parish, where local residents had the opportunity to view proposals for the scheme and register their interest. English Rural is now ready to submit a planning application for approval, with a forecast start on site before the year end.
1.8 105 Tonbridge Road (12 units)
1.8.1 Housing have been working closely with Kent County Council (KCC) and housing support providers MCCH in looking for alternative, new-build, self-contained accommodation for mental health clients who are currently living in shared facilities accommodation, which is not fit for purpose or up to modern day standards.
1.8.2 A suitable site has been identified on Tonbridge Road, which has been acquired by the Brownfield Land Assembly Company (BLAC), a consortium established by Hyde Housing Association, RJ Barwick Construction Services and the South East England Development Agency (SEEDA) to acquire and remediate small clusters of brownfield sites for affordable housing in the South East.
1.8.3 The site has already received full planning consent on 27 February 2009 for the erection of a three storey block of self contained flats comprising 10 units and associated works, access and parking. It is also in close proximity to the existing accommodation for mental health clients which is also situated on Tonbridge Road.
1.8.4 Due
to their links with BLAC, Hyde Housing have been chosen as the lead RSL for
this project and a deal for acquiring the land has been agreed, subject to the
necessary revised planning consent and confirmation on grant funding. Pre-application
consultation on revised plans for a supported housing scheme of 11 one-bed
flats and 1 two-bed flat has taken place with MCCH, KCC and the planning case
officer, which has received approval. BLAC are now ready to submit the new
revised planning application, with (subject to planning consent) a forecast
start on site by the year end.
1.9 KCC Library and Archive Centre, James Whatman Way (57 units)
1.9.1 A planning application has been submitted by the developers Bouygues, in partnership with KCC for the construction of a new library and archive centre at the former army barracks and depot at James Whatman Way, Maidstone. The proposed development seeks to combine a modern archive centre for the county with a new central library. A block of 60 residential units and 57 extra care units will also be provided as part of this mixed-use development.
1.9.2 There
are proposals to redevelop the existing Springfield library facility land for
residential use, which form part of a separate planning application. Pre-application
discussions have already taken place with Housing 21 who have been in
negotiation with Bouygues over the provision of the proposed extra care units,
which comprise 14 one-bed flats and 43 two-bed flats. Start on site (subject to
planning consent) is forecast for early 2010-11.
1.10 Investment Options Appraisal
1.10.1 The scheme proposals will mean that 292 affordable homes will be available, providing housing for over 900 local people who would otherwise be waiting for accommodation on the council’s Housing Register. They also reflect the aim of building better homes, in terms of design and environmental impact. The homes are being constructed sustainably and to a high standard of design and will also help to form part of a new community, in prime locations, with good access to local services and facilities.
1.10.2 It is anticipated that the relevant housing association will submit a bid to the HCA for the majority of the funding which is required for each scheme. Discussions have already taken place with the HCA regarding the funding proposals for each scheme. The bids will be submitted in accordance with the HCA’s new continuous bidding process. The bids will include the following proposed contributions from the council:
|
RSL |
Scheme |
Homes |
MBC Total Allocation (£) |
Allocation Per Unit (£) |
|
MHT |
Bowling Green |
18 |
162,000 |
9,000 |
|
MHT
|
Armstrong Road |
95 |
855,000 |
9,000 |
|
MHT
|
Park and Ride site |
35 |
315,000 |
9,000 |
|
Circle Anglia |
Maidstone Fire Station, Loose Road |
49 |
500,000 |
10,204 |
|
Orbit |
Ashford Drive, Kingswood |
18 |
180,000 |
10,000 |
|
English Rural |
South Street, Stockbury |
8 |
80,000 |
10,000 |
|
Hyde |
105 Tonbridge Road |
12 |
300,000 |
25,000 |
|
Housing 21 |
KCC Library and Archive Centre |
57 |
285,000 |
5,000 |
|
Totals |
|
|
|
|
1.10.3 A total number of 292 affordable homes are proposed to be provided in return for the council’s investment of £2.67m. This equates to an average cost per unit of just £9k, which represents excellent value for money. Orbit have already been successful in having a bid approved by the HCA for their scheme at Ashford Drive, Kingswood.
1.10.4 The proposed allocation of £25,000 per unit for the scheme at 105 Tonbridge Road is significantly higher than the rest of the proposed scheme allocations due to the fact that this is a supported housing scheme, which requires a greater level of investment than general needs housing, due to specific design and build standards which must be met. The two-bed unit in this scheme is also going to be used as a communal space for residents and as office accommodation for the support workers. This also directly impacts on the allocation required as there will be no rental stream income with this unit. However this unit is a key part of the exit strategy, as it enables a change of use for letting purposes, should this scheme need to be converted to general needs at any point in the future.
1.11. Alternative
Action and why not Recommended
1.11.1 The
council could choose not to invest in these affordable housing schemes but to
do so would significantly increase slippage in the capital programme, and could
lead to the council being criticised for not fulfilling its key
objective of enabling the delivery of quality, decent affordable housing. In
addition, it would also impact on the bid by Orbit which has already been
approved by the HCA and failure to invest in the scheme could potentially
impact on the council’s very good relationship with the HCA.
1.11.2A lack
of investment from the council would place all the schemes at severe risk in
terms of delivery and being financially viable and would also potentially limit
the funding that the RSLs can secure from the HCA in the shorter and longer
term. There is a pressing need to secure funds against these developments, due
to the limited pot of money still available within the HCA’s National
Affordable Housing Programme budgets for 2009/10 and 2010/11.
1.11.3 The
scheme proposals also offer the opportunity to develop sites that will deliver
quality affordable housing, in addition to existing s106 contributions, thereby
increasing the delivery of affordable housing, and assisting the council to
meet its internal and Local Area Agreement (LAA) affordable housing targets.
Impact
on Corporate Objectives
All the
schemes outlined within this report support the council’s key strategic theme “Homes
and Communities”, identified in the Strategic Plan 2009-2012 which seeks
to enable the regeneration of schemes to create sustainable communities and new
homes including affordable housing in the borough. At a time of increased
demand for social housing these additional units of affordable accommodation
will provide greater opportunity for local people to achieve their housing
requirements.
The housing
capital programme and new scheme funding proposals also make a major
contribution to the council’s role in delivering the Sustainable Communities
Strategy (SCS) for Maidstone by stimulating investment, supporting renewal,
delivering infrastructure and place shaping.
The council
has an internal target which forms part of the Local Area Agreement to enable
the delivery and completion of 450 affordable homes during the period
2008-2011. A total of 364 affordable homes (funded by the council), are
forecast to be completed by 2009/10. The proposed new schemes proposed will
provide a further 105 projected affordable completions by 2010/11, giving a
total of 469, ensuring the council meets and exceeds the Local Area Agreement
target of 450.
One of
the council’s corporate aims is to balance the housing market. This can only be
achieved by continuing to secure funding in support of increasing the supply
and availability of genuinely affordable housing through the council’s planning
powers and by working together with preferred affordable housing providers to
ensure a mixed choice of tenure in the borough.
Risk
Management
The
viability and delivery of certain schemes could be placed at risk, should funding
not be available, which could have a detrimental impact on the council’s ability
to meet affordable housing targets and identified housing need within the borough.
Six of
the proposed schemes are subject to receiving the necessary planning permission
and this report and its recommendations do not prejudice or pre-judge the
outcome of those applications. Should the schemes not receive planning
permission, HCA funding, or progress within a reasonable time period, the
decision can be taken to use the funds on other planned schemes as the council deems
appropriate.
A
previous decision of the Cabinet Member for Regeneration in January 2008 was to
give delegated authority to reallocate affordable housing grant to alternative
schemes where the original scheme cannot be delivered or has alternative
funding, so long as the funding remains within the overall budget for the
appropriate financial year(s) and is made in consultation with the Cabinet
Member for Regeneration and the Chief Finance Officer.
The
deliverability status and progress of the schemes within the housing capital
programme will be monitored on a regular basis, and will form part of the
Affordable Housing Delivery Risk Assessment process which is undertaken on a
quarterly basis. This process will include liaison between Housing,
Development Control and Finance.
The risk
assessment will also take into account whether there are any identified risks
which could result in increased or revised scheme costs. Any changes to the
expenditure profile of committed schemes will be monitored and reported as part
of the normal quarterly capital forecasts.
Other
Implications
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1. Financial
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2. Staffing
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3. Legal
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4. Equality Impact Needs Assessment
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5. Environmental/Sustainable Development
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6. Community Safety
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7. Human Rights Act
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8. Procurement
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9. Asset Management
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1.15. Financial
1.15.1 A total
of £6.3m has been allocated to the Housing capital programme for the period
2009-10 to 2011/12. The existing committed schemes and new scheme proposals
result in a total planned expenditure of £5.7m leaving £600k uncommitted.
1.15.2 The new scheme proposals assume £17.5m of HCA funding. Any reduction in the actual funding provided by the HCA may require the reprioritisation of the proposals to maximise the delivery of affordable housing.
1.16
Legal
1.16.1 The council will need to ensure that the necessary s106 and nomination agreements are in place, to set the standards and parameters for the delivery of the affordable housing units and to protect the council’s future nomination rights. Negotiations for the land transfers with MHT relating to Armstrong Road, Park and Ride and the Bowling Green are already at an advanced stage and exchange of contracts are anticipated shortly.
1.5.1 Environmental/Sustainable Development
1.5.2 All the proposed schemes will meet the Homes and Communities Agency Design and Quality Standards and Code for Sustainable Homes Level 3. This will ensure the quality of the design of the new homes is high, and they are constructed in a sustainable manner, thereby reducing the environmental impact, with lower running costs and incorporating features that enhance the quality of life of the occupiers.
1.6 Conclusion
1.6.1 The schemes proposed in this report represent excellent value for money, providing 292 high quality affordable homes, at an average cost of just over £9k per unit, housing over 900 local people. The proposals also help to shape programme delivery during the period 2009/10 to 2011/12.
1.7 Background Documents
1.7.1 Housing Strategy 2005-09
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NO REPORT WILL BE ACCEPTED WITHOUT THIS BOX BEING COMPLETED
Is this a Key Decision? Yes No
If yes, when did it appear in the Forward Plan? July 2009
ü
Reason for Urgency
The schemes proposed in this report are at risk of not being delivered or delayed without grant confirmation, which is needed to enable them to be financially viable in terms of delivery.
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