BRIDGEND COUNTY BOROUGH COUNCIL
REPORT TO CABINET
11 AUGUST 2009
REPORT OF THE CORPORATE DIRECTOR COMMUNITIES
SOCIAL HOUSING GRANT PROGRAMME 2009-2011
1.0 Purpose of Report
1.1 The purpose of this Report is to seek the approval of Cabinet for the use of Social Housing Grant (SHG) brought forward from 2010/11 into 2009/10 and the monetary payments received for affordable housing as part of Section 106 Agreements.
1.2 The Report also advises on the Strategic Capital Investment Fund (SCIF) submission.
2.0 Connection to Corporate Improvement Plan / Other Corporate Priority
2.1 A decent home is one of the elements identified as a requirement that will equip citizens and families with the means to live life to the full as part of the Corporate Priority ‘Opportunities for Our Disadvantaged Communities’.
3.0 Background
3.1 Cabinet received an information report on 3 March 2009 which outlined progress on delivery, the 2010/11 programme submission to the Assembly Government, SCIF and Elected Member involvement.
3.2 Various measures have been taken by the Assembly to stimulate the Welsh economy including bringing forward SHG funding from 2010/11 into 2008/09 and 2009/10 and the provision of additional monies from SCIF.
3.3 The Assembly Government is using the total dwelling stock in each local authority area as the basis for the distribution of SCIF and for the brought-forward SHG.
3.4 The brought-forward sum into 2009/10 for the County Borough is £660,666. The Assembly Government asked all local authorities to allocate this to schemes by 30 June 2009. This was submitted to the Assembly Government, but subject to approval by Cabinet.
3.5 The registered social landlords are required to recycle any capital receipts, known as Recycled Capital Grant (RCG).
3.6 A small amount of funding is held by the Authority for the provision of affordable housing by way of monetary payments in lieu of direct provision within Section 106 Agreements.
4.0 Current Situation / Proposal
4.1 The proposed main SHG programme for 2009-11 is shown at Appendix 1. The main programme excludes the top-sliced SHG programme for extra care housing schemes. The Appendix identifies the proposed use of the SHG brought forward from 2010/11 and the monetary payments received from S106 Agreements. Paragraphs 4.2 to 4.10 explain why the particular schemes are identified and which schemes are to be allocated the brought forward and the S106 monies.
4.2 In terms of the service and corporate priorities surrounding the management of homelessness in the County Borough, the redevelopment of the YMCA site in Bridgend to provide 17 units of direct access emergency and 12 units of temporary supported accommodation is viewed as essential.
4.3 The scheme at Nantlais, Bridgend, a former sheltered housing scheme owned by Valleys to Coast, is empty and alternative uses are being considered. One proposal is to convert for use as an additional resource for the homeless, providing 15 units. The cost relates to internal renovation and works required to meet safety standards.
4.4 The scheme in Lewistown is for 5 Intermediate for Sale dwellings, which require additional subsidy below the open market value to make them affordable. The Section 106 Agreement negotiations did not secure the necessary level of subsidy. This scheme reflects the needs of residents who are not eligible for social housing and who cannot afford to buy on the open market or pay market rents.
4.5 The Bryneithin replacement proposals are included to give certainty to resettlement plans as identified in the Learning Disability Accommodation and Resettlement Project report to Cabinet on 26 May 2009 and in the Social Housing Grant report to Cabinet on 3 March 2009. These schemes are to provide viable alternatives in the community.
4.6 The remaining schemes are for the provision of additional affordable housing to be let for social rent. Caeau Gleision, Bridgend, and Maesteg Road, Tondu, are the subject of S106 Agreements. The schemes at Coed Castell, Brackla, and Marlas Farm and Morgan Court, both in North Cornelly, are opportunities that have arisen as a consequence of the current housing market.
4.7 The development at Marlas Farm, North Cornelly, is one that can proceed quickly so it is proposed that the brought-forward SHG be allocated to this scheme.
4.8 Recycled Capital Grant is made available by Hafod HA and Linc-Cymru HA with Hafod’s to be used for the Caeau Gleision scheme and Linc-Cymru’s to be used for the Maesteg Road scheme, with each scheme developed and managed by the respective organisation.
4.9 The Authority has been allocated a total SCIF of £1,837,614 over the 3 years 2008/09 to 2010/11. The balance for use in 2009/10 and 2010/11 is £1,182,395. The SCIF is allocated to the development at Marlas Farm to help meet the full costs and the development at Morgan Court to enable land acquisition.
4.10 The proposal for the use of the monetary payments is £20,348 for the Ogmore Valley in support of the scheme in Lewistown, as outlined above, with the balance of £274,307 be used for the Caeau Gleision scheme which is to be a Code 4 sustainable pilot by the Assembly Government, with sustainable measures including rainwater harvesting, solar thermal heating, photovoltaic cells and includes four bungalows for disabled persons, one with sleep-in support.
4.11 The schemes identified in Appendix 1 are those that have the greatest chance of being completed under present market conditions and the current availability of SHG.
5.0 Effect upon Policy Framework & Procedure Rules
5.1 None.
6.0 Legal Implications
6.1 None.
7.0 Financial Implications
7.1 The monetary profiles surrounding each of the proposals are shown above.
7.2 There are no financial implications for the base budget of the Authority.
8.0 Recommendation
8.1 It is recommended that Cabinet:
8.1.1 Approve the use of the social housing grant brought-forward from 2010/11 and the monetary payments received by way of S106 Agreements as identified in Appendix 1 of this Report.
Louise Fradd
Corporate Director Communities
29 July 2009
Contact Officer: Peter Green, Principal Housing Officer.
Telephone: 01656-643545.
E-mail:
Postal Address: Housing & Community Regeneration,
Communities Directorate,
Bridgend County Borough Council,
Civic Offices,
Angel Street,
Bridgend
CF31 4WB.
Background Documents:
1. Welsh Assembly Government: Letter of Invitation and Guidance to “Social Housing Grant Programme for 2010/2011”, dated 17 July 2008.
2. Welsh Assembly Government: Announcement by the Minister of a boost to the Welsh economy, dated 2 December 2008.
3. Welsh Assembly Government: Letter announcing the SCIF and the brought forward Social Housing Grant, dated 19 January 2009.
4. Welsh Assembly Government: Letter announcing the Social Housing Grant Programme brought-forward monies, dated 21 May 2009.
5. Welsh Assembly Government: Letter inviting bids for the balance of SCIF within local authority allocations, dated 18 June 2009.
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BRIDGEND COUNTY BOROUGH COUNCIL : Cabinet 11 August 2009 APPENDIX 1Social Housing Grant & SCIF Schemes: Main Programme 2009-2011
Rank / Consortium / RSL / Scheme Address / Units / SHG main / SHG bf / RCG / SCIF / S106 / TOTAL / T1/2 / Detailed Planning / On / Target
£000s / £000s / £000s / £000s / £000s / £000s / Approval / Site / Finish
2009/10
1 / DEVCO / HAFOD / YMCA, BRIDGEND / 29 / 1590 / 1590 / 1 & 2 / Oct-09 / Jan-10 / Mar-11
2 / INTEGRATE / V2C / NANTLAIS, BRIDGEND / 15 / 250 / 250 / 2 / Oct-09 / Jan-10 / Mar-10
3 / INTEGRATE / V2C / CWRT YR AWEL, LEWISTOWN / 5 / 119 / 20 / 139 / N/A / May-07 / Apr-09 / Aug-09
4 / DEVCO / HAFOD / CAEAU GLEISION , BRIDGEND / 31 / 602 / 566 / 600 / 274 / 2042 / 1 & 2 / Aug-09 / Oct-09 / Nov-10
5 / SYNIAD / W & W / COED CASTELL, BRACKLA / 16 / 708 / 708 / 2 / Sep-09 / Oct-09 / Aug-10
6 / INTEGRATE / V2C / MARLAS FARM, N CORNELLY / 22 / 600 / 95 / 566 / 1011 / 1 & 2 / Mar-09 / Oct-09 / Sep-10
7 / DEVCO / HAFOD / MORGAN COURT, N CORNELLY / 24 / 0 / 616 / 616 / 1 / Jul-09 / Apr-10 / Jun-11
Year Total / 142 / 3869 / 661 / 600 / 1182 / 294 / 6356
2010/11
8 / INTEGRATE / F/Choice / PRINCESS STREET, MAESTEG / 1 / 331 / 331 / 1 & 2 / Dec-09 / Apr-10 / Nov-10
9 / INTEGRATE / F/Choice / SALISBURY ROAD, MAESTEG / 1 / 331 / 331 / 1 & 2 / Dec-09 / Apr-10 / Nov-10
10 / INTEGRATE / F/Choice / COED Y PARC, MAESTEG / 1 / 331 / 331 / 1 & 2 / Dec-09 / Apr-10 / Nov-10
11 / INTEGRATE / V2C / AEL Y BRYN, N CORNELLY / 1 / 250 / 250 / 2 / Dec-09 / Apr-10 / Nov-10
12 / DEVCO / HAFOD / CAEAU GLEISION, BRIDGEND / 868 / 868 / 1 2 / Aug-09 / Oct-09 / Nov-10
13 / SYNIAD / W & W / COED CASTELL, BRACKLA / 23 / 935 / 935 / 1 / Sep-09 / Oct-09 / Aug-10
14 / INTEGRATE / V2C / MARLAS FARM, N CORNELLY / 600 / 600 / 2 pt / Mar-09 / Oct-09 / Sep-10
15 / DEVCO / HAFOD / MORGAN COURT, N CORNELLY / 1194 / 1194 / 2 / Jul-09 / Apr-10 / Jun-11
16 / SYNIAD / LINC / MAESTEG ROAD, TONDU / 40 / 0 / 890 / 890 / 1 / May-11 / Sep-11 / Aug-12
Year Total / 67 / 4840 / 0 / 0 / 0 / 0 / 5730
Abbreviations
RSL Registered Social landlord
SHG Social Housing Grant
SHG bf Brought Forward Social Housing Grant
RCG Recycled Capital Grant
SCIF Strategic Capital Investment Fund
S106 Section 106 Agreement Monetary Payments
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