Housing Developments New Build on in Fill Sites and Extra Care Development at Trinidad Village

AGENDA ITEM 6

BOROUGH OF POOLE

CABINET

10 SEPTEMBER 2013

HOUSING DEVELOPMENTS – NEW BUILD ON IN FILL SITES AND EXTRA CARE DEVELOPMENT AT TRINIDAD VILLAGE

PART OF THE PUBLISHED FORWARD PLAN NO

STATUS (Strategic)

1. PURPOSE

1.1To update Cabinet on the in fill and extra care housing projects to be delivered by Poole Housing Partnership.

1. DECISION(S) REQUIRED

2.1Cabinet recommend to Council;

2.1.1Approval of the delivery of 8 new housing units on the Old Farm Road and King John Avenue in fill sites.

2.1.2Approval of the development of 54 new accommodation units at the Trinidad Extra Care Village site.

2.1.3Approval of a £10.6m investment in delivering the above units funded by a combination of Housing Revenue Account (HRA) capital resources, retained right to buy receipts, grant funding from the Homes and Communities Agency and Social Service grant and income from sales.

1. BACKGROUND/INFORMATION

3.1The social housing stock across Poole aims to provide good quality and affordable housing for those people who are on low incomes, and provides support to residents across a range of ages and need. This is accessed according to need and managed via the Council’s allocation policy. There is known to be unmet demand via this process as the levels of social housing stock cannot meet the levels of people who are eligible for it and there are currently over 4,700 households on the waiting list for social housing (as at June 2013) with this figure expected to grow in future years.

3.2Current demographic trends suggest that the population of Poole will increase by approximately 15,000 over the next 10 years. The largest increases are within population levelsof under 18’s and those that are over 65 with the fastest growing age group being those aged 85 and over. Within Poole it is estimated that there will be an additional 1,400 people aged over 85 by 2021, a 27% increase from 2011.

3.3These demographic trends mean that the demand for social housing and demand for housing that can provide additional support to vulnerable residents will continue to grow. This latter area is already linked to growth in referrals to the residential sector and the link between health and dependency levels becomes ever more important in delivering appropriate housing to people within this age range.

3.4Within this context Poole has set out a housing strategy that seeks to increase the availability of housing to those who qualify via the allocations policy for general need housing and to increase the level of special needs stock providing extra care. It is not expected that we will be able to meetall demand but that the delivery of new housing stock will go some way to alleviating the demand for those most at need. The extra care provision is also expected to divert demand away from the residential care sector, therefore providing a more cost effective approach as well as promoting independence, providing flexible care and offering a “home for life” as far as practically possible.

3.5Poole Housing Partnership (PHP) has been asked to consider where opportunities may lie within current land designated as being available for use for housing, otherwise known as Housing Revenue Account (HRA) land. PHP have identified up to 22 areas that are currently garage sites, partly derelict land, land that has low density or currently under-used. These areas are known as “in fill” as they will allow for additional housing to be delivered without requiring large scale redevelopments. The first two sites that form this shortlist and that are now ready for development have now been identified and have been submitted for planning permission; these are Old Farm Road and King John Avenue.

3.6Also identified is the Trinidad Village site that currently provides 107 units of sheltered accommodation to older people. The site is popular with residents, has a strong community feel to it and has good bus routes. However there is no site “centre” and the accommodation is smaller than currently recommended with no lift access to upper floors and not suitable for wheelchairs. This site appears appropriate for partial redevelopment with the focus on the front of the site which currently has 16 bungalows. These are arranged in a courtyard formation with a large grass lawn that is under used and inaccessible when wet and therefore not giving maximum value to residents.

3.7The proposal in this area will re-provide 54 housing units on the site of the current 16 bungalows. These housing units will be designed to a high standard and reflect the latest recommendations on space requirements and approach in supporting this client group. All will be open planned with generous space allowances, allow wheelchair access, be designed with supported living in mind and provide private outdoor space in the form of a balcony or a patio area. The main driver for the development will be the delivery of the communal areas which will provide a “village hub” for the whole site, therefore benefitting not just the 54 new housing units but the additional 90 that are already living on the site. These communal spaces will provide social areas to encourage residents to meet and enjoy a full and varied social life, the provision of recreation opportunities, as well as linking housing units and space for local facilities such as hairdressing or healthcare.

3.8It is proposed that PHP will take forward the delivery of the in fill schemes that will deliver 8 new general needs housing units and the extra care scheme that will deliver 54 new housing units, 48 of which will be available to local residents to rent and six for open market sale. Both of these schemes will begin during 2013/14 with expected completion by the end of 2014 for the in fill sites and March 2017 for the extra care scheme. Preparatory work for the in fill sites is well advanced with discussions completed with affected residents and planning submitted. It is anticipated that planning agreement be received by the end of September 2013 with work on site to start January 2014. For the extra care facility the preparatory work is underway at the moment following notification of a successful bid for HCA funding to support the project. Residents have been notified about the intention to enhance the site and the development phase of the project is now underway. This will include detailed plans about how the accommodation will be delivered, the facilities to be made available and all done in conjunction with local residents that will be most affected.

1. FINANCIAL IMPLICATIONS

In fill Project

4.1The total project cost of the in fill project together with the funding proposal is set out as follows:

Exhibit 1: Capital project costs for the in fill Project

4.2The £1.225m construction costs equate to £1,701 per square metre and therefore are within expected cost levels. The other costs of the project relate to employer agent costs, site costs and general management costs. The costshave been confirmed following the tendering of the project across a range of suppliers with the contract delivering professional services for the development of the site and procurement of the design and build aspect of the new homes via the Source Framework Agreement.

4.3The financial planning for this project reflects industry standards and assumes that the site is relatively free of issues. Investigations to date have not identified any complicating factors and all available actions have been undertaken to reassure contractors and PHP that the works can proceed as planned, however this can never be formally confirmed until work starts on site.

4.4The proposal is to fund 30% of this project from retained right to buy receipts which reflects the maximum contribution to additional Social Housing that can be used under current guidelines. Right to Buy receipts must be invested in additional Social Housing Units within a 3 year period or they have to be paid over to the Government along with penalty interest (as per “one for one” agreement the Council signed with Government in July 2012). If the Council had not signed this agreement the receipts would have to be paid over immediately to Government and would not be available at all for local investment.

4.5The Council continues to hold right to buy receipts from 2012/13 and from those already generated in 2013/14. These are all subject to the 3 year reinvestment requirement and work continues to ensure that these will be used to deliver additional social housing stock and supporting the HRA capital programme.

4.6The 2013/14 HRA capital budget set aside £1m in order to support these in fill projects and the requirement from the HRA is now confirmed as £1.015m.

Extra Care

4.7The total project cost of the extra care project together with the funding proposal is set out as follows:

Exhibit 2: Capital project costs for the Extra Care Project

4.8The build cost has been estimated based on industry standards and current market conditions and delivers at an expected cost of £1,337 per square metre.

4.9The final costs will be established following the agreement of the agent who will deliver the design and build of the project. This will be undertaken over the next 6 months and allow the procurement of the overall project to be delivered via framework agreements, therefore shortening timescales while ensuring value for money is in place.

4.10The project is now entering the development stage which means that these costs will start to be incurred. Any movement away from this project will result in abortive costs which will be incurred against the HRA capital programme.

4.11This project is being funded from a combination of £6.04m Housing Revenue Account (HRA) capital programme resources, a £1.74m grant from the Homes and Communities Agency, a £693k grant from Personal Social Services and £700k from income generated from the sale of 6 units of accommodation.

4.12The delivery of the extra care project will ensure that additional accommodation is available to local residents that will enable people to live locally for longer and in accommodation that is fit for purpose. This is expected to reduce the total number of referrals to residential care as people could be supported within the Trinidad Village rather than entering a residential home. The total revenue cost of the extra care to be provided is estimated at £0.342m at 2013/14 prices. The cost of providing the same service within a residential setting is estimated to be £0.572m, therefore the project is expected to save £0.24m in revenue costs per annum when it comes on line.

1. LEGAL IMPLICATIONS

5.1None identified

6.RISK MANAGEMENT IMPLICATIONS

6.1None identified

7.EQUALITIES IMPLICATIONS

7.1None identified

8.CONCLUSIONS

8.1The delivery of 8 new general housing stock homes within the in fill project is the first part ofthe ongoing project to deliver an increase in the social housing stock across Poole. The project set out in this report will provide valuable learning in order to inform the overall delivery strategy of the ongoing project as well as delivering 8 additional, much needed housing stock to local residents

8.2The extra care project will deliver an enhanced service to local residents in a well known and well liked location. It will better use the current site and provide accommodation that more closely reflects the needs of Poole residents going forward. It will be designed in conjunction with residents and is supported by the HCA via a grant of £1.7m.

Report Author

Su Spence

Poole Housing Partnership

Contact officer:

Background Papers

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