Decision details

To seek approval for a further amount of up to £0.8m to be added to the proposed grant payment it makes towards these 55 dwellings at this scheme, giving a proposed total Council grant payment of up to £5.7m or 40% of the total capital costs for the 55 dwellings, whichever is the lowest amount.

To approve:

(i)             the addition of up to £0.8m of unallocated Right to Buy Receipts, on top of the previously approved amount of up to £4.9m, as grant payment to EMH Housing and Regeneration Limited towards their projected total capital costs for the provision of 55 planning gain Affordable Housing dwellings within the proposed 75 unit Supported Living scheme to be built within the new Waterside residential development; subject to EMH Housing and Regeneration Ltd entering into an Affordable Rent Grant Agreement with the Council;

(ii)            the addition of a further £0.8m to the Housing capital programme for 2024/25 financed from unallocated Right To Buy Receipts.

To enable EMH Housing and Regeneration Ltd (EMH) to deliver the proposed 75 unit supported housing block at the Waterside.

EMH had recently advised that the revised projected total capital costs for the 55 planning gain dwellings is now £13.263m and therefore they are now seeking up to £5.3m in funds from LCC, an increase of up to £0.4m on the currently approved amount.  Officers think it prudent to add a further buffer/contingency, in case the actual total eligible capital costs for the 55 planning gain units exceed currently projected costs.  This report therefore seeks approval to add up to a further £0.8m to the already approved amount of LCC for this scheme.  

In addition to delivering new affordable housing, these proposed dwellings will be  let to people aged at least 18 who are in receipt of an SCE (Social Care & Education) care package. 

No other source of capital grant has been identified which can be used towards the 55 planning gain dwellings.  EMH are seeking Homes England funding towards the additional 20 dwellings but this funding cannot be used towards planning gain dwellings.

In the face of increased costs, EMH cannot deliver the proposed scheme without additional grant from LCC to make the scheme financially viable.  Without this increased funding from the council, the scheme is not likely to be delivered.